Silicon Valley Engineers Salary: Weeby Case

Weeby.com, led by a CEO Michael Carter … is offering … to pay its engineers an average salary well above market rate: $250,000 a year … “ If you look at a really talented engineer,said Carter, “they’ll help Facebook, Apple, or Google, but they won’t fundamentally change anything. Whereas that same engineer at a small company could be the difference between failure and a billion dollars .”

New hires get a base salary commensurate with their experience — at least $100,000, and more than they were previously paid. They join with the promise, if they perform well, of automatic $10,000 monthly bumps until they hit $250,000. Even then, the raises continue, so that after four years, it adds up to a million. Weeby doesn’t ignore equity, offering up to four times what similar-sized Valley startups do, Carter said. Employees, in fact, will own more of Weeby than even its biggest investor.

~ “Silicon Valley talent wars: Engineers, come get your $250K salary” by Daniel Terdiman, cnet.com

English actress Keira Knightley discovered the Silicon Valley

… and was invited to a private screening of her new tech-centric movie, “The Imitation Game” at a home in the area… She said she met “a very nice man” named Sergey, who she assumed was a very rich man but was definitely wearing Crocs. That would be Sergey Brin, the co-founder of Google. His net worth is about $30 billion, according to Forbes.The screening was hosted by “some rich tech person called Yuri, who was very nice.” That’s Yuri Milner, an investor worth nearly $2 billion.
Read more: http://money.cnn.com/2014/11/11/technology/keira-knightley-tech-hoodies/

actress_in_Silicon_Valley

Silicon Valley Microchip Industry

At the beginning of 1957 it was  a personal dispute  between employees of Shockley Semiconductor and the company’s namesake and founder, Nobel laureate and co-inventor of the transistor William Shockley.

As is likely true for the majority of outstanding scientists, Shockley was not known for his easygoing nature. As a result of this ordinary “production disagreement”, eight of his leading employees decided to quit to form their own firm, in direct competition with Shockley.

Shockley had only just formed his company “from scratch” a year earlier by hiring top performers from various universities, and this mutinous group of his former “students” formed Fairchild Semiconductor immediately following their departure, having received a USD 1.5 million investment from the New York company Fairchild Camera and Instrument.

After several years, Fairchild gained its footing, becoming a formidable presence in this sector. Its founders began to leave to start companies based on their own, latest ideas and were followed on this path by their own former leading employees. Thus, these generations of Silicon Valley’s latter-day pioneers are called “Fairchildren”.

Then began a sort of “nuclear fission” in personnel, where another crop of companies formed around the Fairchildren, and those leaving invited their coworkers along, who then went on to do the same…
The process gained momentum and what had once began in a Stanford’s research park became a veritable startup avalanche…

startup financing cycle diagram

One of the most well-known of startups appeared in the earliest stages of this chain reaction. Gordon Moore and Robert Noyce, two of Shockley’s “Traitorous Eight”, left Fairchild Semiconductor to form Intel.

Thus, over the course of just 20 years, a mere eight of Shockley’s former employees gave forth 65 new enterprises, which then went on to do the same. The process is still going:

https://i2.wp.com/silicon-valley-history.com/img/Shockley_generic_silval_companies.png

    The 92 public companies that can be traced back to Fairchild are now worth about $2.1 trillion, which is more than the annual GDP of Canada, India, or Spain. The First Trillion-Dollar Startup By Rhett Morris

The aforementioned “personal conflict” at Shockley Semiconductor can be found at the center of practically any study of the history of Silicon Valley. It is surprising that these histories fail to note that it was only in California that this conflict—a perfectly ordinary disagreement, easily found in any industrial park all across America—inspired this unique chain reaction and gave rise to the next generation of startups, who then went on to divide and reproduce, and so on in this sort of nuclear fission.

We again take up this question, critically important as it is in understanding the reasons that only California’s Silicon Valley hosted such a boom. Can it be that there had never been a personal flare-up of this kind, or even on a much greater scale, in all the other high tech companies, long-established in various industrial parks around the country?

Why was Stanford’s Research Park only host to Silicon Valley’s growth and development?

Conflicts between creative teams and their veteran leadership were of course common in all American industrial parks, both before and after the aforementioned disagreement at Shockley. However, the crux of the matter is that, with the exception of California, all across America there are many different agreements signed between business owners and their employees that restrict the employee’s right to quit and join competing firms or, even worse, go on to create his or her own company in direct competition with their former employer.

These non-compete agreements, which new recruits are required to sign (generally in the form of NCAs or NCA & NDAs) play the role of graphite rods in a nuclear reactor, slowing the chain reaction of creation of new startups all over America.

Thus it was that these decelerators in the process of creating companies to compete with the industry’s established figures were legally withdrawn from the nuclear reactor of innovations in what would many years later become Stanford Research Park.

As was noted earlier, it was in California (and only in California) that a particular law emerged in 1872 that defended the employee’s freedom of movement, the right to leave his or her employer at any moment, even to immediately go to work in direct competition with their former employer or to create a competing firm on their own.
~ Silicon Valley History & Future by Gregory Gromov

How it Looks When a Small Town Compete with Silicon Valley

The city is home to three colleges, including Cornell University, which has heavily invested in fostering bright, entrepreneurial minds. The university offers credits for students who want to take their startups to the next level, and introduced a new program to help students turn their technology designs into licensed products for commercial use… Greg Galvin is one of the pioneers of the Ithaca startup scene. Galvin launched three businesses over the past 20 years, which have brought in approximately $400 million in revenue and created 300 jobs in the city. He came to Ithaca in 1980 as a Ph.D. student at the university. His first company, Kionix Inc., which manufactured software sensors, was based on Cornell research so he needed to remain local. At the time, Galvin says there were about ten startups in the area. Today, it’s a very different scene … a small town with only 30,000 residents, now counts roughly 100 startups.
Read more: http://money.cnn.com/2014/10/09/smallbusiness/ithaca-startups/

See also: Marc Andreessen on the Future of Silicon Valley(s), and the Next Big Technology

A List Of Products Google Working On …

other than Search & Spoons. Yes, the List contain spoons too, but what else?

    Life-extending technologies.
    Robot assistants
    Spoon for people with diseases such as Parkinson’s
    High-speed Internet service.
    Balloons that broadcast Internet signal.
    Drones that deliver goods to homes.
    Computers you wear like glasses.
    Airborne wind turbines.
    A collection of photographs of every street in the world.
    Live-updating database of equities and financial news.
    Service that allows you to pay for things with your phone.

and lot more

What Distinguishes a Successful Executive?

A Group of MBA Students are Dining with a Retired Celebrity CEO.

    One asks him, “What distinguishes a successful executive?”
    The CEO ponders the question for 10 seconds and answers, “Two words: Good decisions.”
    The student isn’t satisfied and says, “But what does it take to make good decisions?”
    The CEO furrows his brow and 20 seconds later replies, “One word: Experience.
    The student is exasperated at this point and blurts out, “Okay, but what’s it take to get experience?”
    The CEO frowns and thinks for 30 excruciating seconds. Finally, he replies, “Two words: Bad decisions.”

… But here’s a thought: Maybe failure is really interesting to explore only after success has been achieved. Looking back on a successful life, or doing a post-mortem on an endeavor that ended well, incremental failures add texture and nuance to a winning story. But if you’re still not on top of the mountain, maybe it’s best to figure out what you’re really good at, then focus like a laser beam on creating a success you can call your own.

~ Why Learning From Mistakes Is Overrated By Stephen J. Meyer, Forbes

Top 50 Universities for VC-Backed Entrepreneurs

Many argue the value of a college education for aspiring entrepreneurs. The fact that some of history’s most successful startups – IBM, Apple, [Microsoft,] Facebook – were all founded by college dropouts is enough to spark that debate.

But a new list from PitchBook shows that a college education isn’t always a hindrance to launching a high-growth company, especially if you attend Stanford University. The California-based private college has once again topped PitchBook’s Top Universities for VC-backed Entrepreneurs. The research firm reviewed its venture-capital database of more than 13,000 founders and ranked each school by the number of graduates who went on to launch venture-backed companies over five years ending August 2014. It also calculated the total number of startups founded by a college’s alumni and total capital raised from each institution:

1409241561-vc100-top-undergrad-colleges
Read more: http://www.entrepreneur.com/article/236912

See also: Student Loan Debt: Scale of Problem and its Main Sources

soc_sciences_main_sourrce_o

Google Inc. Effective Tax Rate is Steadily Going

asymptotically to … zero:

Google_effective_tax_rate_is_zero

and Google isn’t alone. Almost all Big donors of the Democratic party follow the same rules and this is a reason why they constantly support the party of large taxes.

Every next time when Democratic party again rises taxes, the small businesses will lose, but for big corporations it does not matter. Their accounting & lowers departments will find / create the tax loopholes in any cases.

See also:

Apple “iOS” vs. Google “Android” – eCommerce Competition – Who is Winning

Sales via smartphones and tablets through the U.S. and U.K. affiliate networks of Affiliate Window accounted for 19.0% of total web sales in May 2013 and 30.6% in May 2014… Affiliate Window study of May 2014 commerce activity on its networks also finds that:

  • 25% of total revenue came from mobile shoppers.
  • Apple iPhones accounted for 75.0% of smartphone traffic and 75.1% of smartphone sales while Android smartphones accounted for 25.0% of traffic and 24.9% of sales
  • Apple iPads accounted for 72.6% of tablet traffic and 84.1% of tablet sales while Android tablets accounted for 27.4% of tablet traffic but only 15.9% of tablet sales.
  • Tablet shoppers converted at a rate of 6.0% while smartphone shoppers converted at a rate of 2.9%. The average mobile conversion rate was 4.1%.
  • 23,000 sales each day originated from a mobile device: 14,750 on tablets and 8,250 on smartphones.

~Mobile commerce sales via affiliate networks soar By Bill Siwicki. Internet Retailer Magazine.

Tips for Foreign Founders Who Want to Start a Business in the U.S

  • Ask yourself: Do I really need to be in the U.S.? There are lots of vibrant places to start a business these days–London, Berlin, Tel Aviv are all hopping.
  • Don’t cheap out. If you’re bootstrapping, the whole kit and kaboodle of getting a visa isn’t cheap … “Without [his lawyer] Peter Roberts this whole thing would have been a nightmare”…
  • Look at all your options. There are lesser known possibilities such as setting up a subsidiary of an existing foreign …
  • Have a backup plan or two or three. This is an inherently uncertain process, so plan for that uncertainty…Read more: http://www.inc.com/jessica-stillman/so-you-want-to-start-a-business-in-the-states-10-tips-for-foreign-founders.html
  • Silicon Valley is Not About Startups Anymore

    Silicon Valley is no longer the best place to start a company … It’s a wonderful place, but it’s a very challenging one also. So if you’re starting something today, DO NOT come to Silicon Valley right away. It’s less expensive, less risky, and probably easier to start somewhere else, due to less competition. Get some level of product-market fit first, get some early traction; then — if you need it — raise some money where your network is stronger (again, guess where that is) and *only then* think about getting to the next level and moving to Silicon Valley.
    ~ Silicon Valley has evolved — it’s not about startups anymore

    See also:

  • Top 10 Myths of Silicon Valley
  • Silicon Oligarchs’ Double Standard
  • Silicon Valley’s Dirty Laundry May Get Aired
  • Systemic Arrogance has Become Part of Silicon Valley’s Newer Public Narrative
  • Silicon Oligarchs’ Double Standard

    … the new generation oligarchs are very different from the traditional “propeller heads” who once populated the Valley. More media savvy and less dependent on manufacturing, the new leaders have less interest in the kind of infrastructure and business policies generally favored by more traditional businesses. They also tend to have progressive views … that align with the gospel of the Obama Democratic Party… the Silicon Valley– San Francisco corridor, has become one of the most solidly liberal regions in the country. The leading tech companies, mostly based in the area, send over four-fifths of their contributions to Democratic candidates…
    … despite its counter-cultural trappings and fashionably progressive leanings, Silicon Valley has turned out to be … greedy … wages for the region’s African-Americans and Latinos, roughly a third of the local population, have dropped, down 18% for blacks and 5% for Latinos …
    …. The poverty rate in Santa Clara County has climbed from 8% in 2001 to 14%, despite the current tech boom; today one out of four people in the San Jose area is underemployed, up from 5% a decade ago. The food stamp population in Santa Clara County has mushroomed from 25,000 a decade ago to almost 125,000. San Jose is also home to the largest homeless camp in the continental U.S., known as the Jungle
    … Google maintains a fleet of private jets at San Jose airport… Google executives touts its green agenda but have burned the equivalent upwards of tens of millions of gallons of crude oil, …
    … individuals like Bill Gates have voiced public support for higher taxes on the rich, yet Microsoft, Facebook and Apple have all saved billions by exploiting the tax code to shelter profits offshore. Twitter’s founders creatively exploited various arcane loopholes to avoid paying taxes on some of the proceeds of their IPO that they set aside for heirs…

    ~How Silicon Valley Could Destabilize The Democratic Party Bu Joel Kotkin. Forbes.

    See also:

  • Who is Who – Political Leanings – in Silicon Valley
  • San Francisco as a Capital of the “Left Coast” of America
  • The Democratic Billionaires Club’s double-standard

     

     

  • Who is Who – Political Leanings – in Silicon Valley

  • Marissa Mayer. The Yahoo CEO is as reliably Democratic as they come.
  • Sergey Brin Mayer’s onetime boss, Google co-founder … donations to the DNC and the Obama campaign make it clear which of the two parties he likes better.
  • Reid Hoffman … LinkedIn co-founder and current VC gave $1 million to Priorities USA Action, an Obama-supporting super-PAC, in 2012… he’s a down-the-line liberal.
  • Mark Zuckerberg… palled around with President Obama during the last campaign cycle, and his No. 2 at Facebook, COO Sheryl Sandberg, is a longtime Democratic donor…
  • Sean Parker …first chairman of Facebook is also a Democratic donor …
  • Peter Thiel … [PayPal co-founders] … is the libertarian godfather of Silicon Valley…
  • Jeff Bezos … Amazon’s founder … described … as a libertarian in a March 2012 profile…
  • Marc Andreessen… well-known venture capitalist shocked everyone by supporting Mitt Romney in 2012 after a lifetime of backing Democrats… he says, “I turned 40 last year and so I figured it was time to make the switch“… [“If you’re not a liberal at twenty you have no heart, if you’re not a conservative at forty, you have no brain” ― Winston Churchill]
  • Meg Whitman … HP… cut a six-figure check to a Romney-supporting super-PAC…
    ___
    Silicon Valley is still a liberal stronghold, and the employees of large tech companies tend to support Democrats by a tremendous margin. (Apple employees, for example, gave 91 percent of their campaign contributions last cycle to President Obama.) …
    ~The Political Leanings of Silicon Valley By Kevin Roose.

    See also:
    ~Google vs. Evil
    ~Silicon Oligarchs’ Double Standard
    ~San Francisco as a Capital of the “Left Coast” of America
    ~Silicon Valley hiring practices gets class action status

  • Top 10 Myths of Silicon Valley

    By Elaine Wherry

    1. Technology Makes It Possible to Start a Company Overnight… launching a product is just the beginning… finding a problem worth solving, educating users, building traction, developing a viable business strategy, training a sales team, and securing long-term funding takes time…
    2. You Only Pivot When Your Idea is Bad… The Internet reinvents itself every two years. Even if you are successful today, technology changes so quickly that you can lose success just as quickly as you gained it …
    3. Being a Founder is Glamorous… most founders spend 40% of their time hiring… founders can’t loosen the reigns until they’ve hired and trained the first 50 team members…
    4. Founders Don’t Have Bosses… Sadly, it’s just not true… entrepreneurs are also accountable to the Board of Directors who determine whether the founders are fulfilling their roles… accountable to the market and the market is the craziest, most irrational, and unfair boss of them all.
    5. The Best Product Wins. Product design can be a formidable advantage… Most companies excel at experimentation rather than product execution…
    6. VCs Throw Money at you… average American startup team reaches out to approximately 60-120 VCs and angels to raise the first $1M …
    7. An Acquisition Means You’re a Multi-Millionaire… It’s possible for an acquisition in the hundreds of millions to leave nothing for the founders depending upon how much has been raised, how much was allotted to employees, the number of founders, whether the exit included stock or cash, and the liquidation preferences…
    8. Raise as Much Money as You Can… only take the money you need (with some cushion) to prove the next stage of your business…
    9. If You Do Everything Right, You Will Be Successful. There is no magic formula. Many smart startups will fail and many foolish ones will somehow succeed. Luck plays a huge hand in a startup’s ultimate outcome… a 93% failure rate…
    10. We’ll Always Have These OpportunitiesRead more: http://www.ewherry.com/2014/08/10-silicon-valley-myths/?utm_content=bufferbc1a7&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

    Silicon Valley’s Dirty Laundry May Get Aired

    In a forceful slap at both the industry’s casual attitude toward employment laws and risk-averse lawyers who decline to push strong cases to trial, a Silicon Valley judge on Friday took the highly unusual move of rejecting the settlement in a class action accusing tech companies of agreeing not to solicit one another’s employees… [Lucy H. Koh of United States District Court in San Jose] also said … that Steve Jobs, Apple’s late chief executive, was “a, if not the, central figure in the alleged conspiracy.”
    ~ Judge Rejects Settlement in Hiring Suit Against Google, Apple and Intel, by David Streitfeld. NY Times.

    See also: Silicon Valley hiring practices gets class action status

    Start-up Experts & Services Market is Booming

    Start-up euphoria is the first Gold Rush of 21st century. As any Gold Rush in past, it creates the infrastructure, where service market is booming first:

    Elaine Pofeldt How To Create A Startup Hub. It’s fun to launch a startup … But if you’re starting a business in a town or city that isn’t known for creating the next Snapchat or Oculus VR, it can get a little lonely. So how do you actually pull off the advice in Brad Feld’s popular book on the subject, Startup Communities? Read more: http://www.forbes.com/sites/elainepofeldt/2014/07/31/how-to-create-a-startup-hub/

      The idea that a nest of complex adaptive systems can be managed by a paint by numbers manual is triumph of hope over experience.

    Any kind of the gold rushes were always based on the “triumph of hope over experience“:

      People eager to take part in 2nd “Gold Rush”. So,market responds. Who profit the most from Gold Rush of 19th century? Not miners

    See also: From the Gold Mines of El Dorado to the “Golden” Startups of Silicon Valley

    49er_and_mull

    Systemic Arrogance has Become Part of Silicon Valley’s Newer Public Narrative

    Silicon Valley’s image … suffered briefly after the 1990s bubble, which was created by an unholy collaboration among founders, venture capitalists and investment bankers, inevitably deflated and left countless retail investors, among others, holding the bag. The negative image didn’t last long as a new generation of tech giants emerged. For the last decade or more, until quite recently, the public love affair with Silicon Valley blossomed again, encouraged by the West Coast’s journalist-courtesans. That’s all changing as people consider what the tech culture has wrought on our society in less positive ways… The public isn’t thrilled, either, at being considered lab rats in Web giants’ experiments… the Internet industry’s essential business model—advertising-driven spying on us in ever-more pervasive ways. Eyes rolled as … ballot initiative for a vote on whether California should split into six states, one of which would be a Silicon Valley that would jettison its poorer neighbors like so much flotsam.
    Is Silicon Valley the New Wall Street?

    The collusion reportedly began in 2005, when Apple’s Steve Jobs approached Google’s top executive, Eric Schmidt, about working together to hold down salaries. After getting Google on board, Jobs “strong-armed” Adobe into joining the secret pact, according to court documents. The documents show that Adobe CEO Bruce Chizen was reluctant to go along until Jobs threatened to poach Adobe engineers…
    64,613 Software Engineers Join Class Action Hiring Conspiracy Lawsuit …

    See also:
    ~ Google Buses Fuel Inequality Debate as Boom Inflates Rents
    ~ San Francisco as a Capital of the “Left Coast” of America
    ~ Zuckerberg Bought 4 Pieces of His Privacy …
    ~ Silicon Valley “War on Women”
    ~ Silicon Valley as a “black hole”

    Average Company Age of 11 at the Time of IPO

    Since 2001, companies have had an average age of 11 at the time of their U.S. IPOs, compared with 5 at the peak of the dot-com bubble in 1999-2000 and 7 to 9 in the previous two decades… Venture capitalist Marc Andreessen sees all of this as a sign of trouble… In Andreessen’s opinion, overregulation is largely to blame. CEOs of startups are choosing to stay private to avoid having to comply with Regulation FD, issued by the Securities and Exchange Commission in 2000, and the Sarbanes-Oxley Act of 2002, both of which helped new disclosure requirements on public companies, he said.
    Read more: http://www.businessweek.com/articles/2014-07-24/ipos-get-bigger-but-leave-less-for-public-investors

    Investing is Very Psychological

    … As Warren Buffett has said: “Investing is simple, but not easy.” Jim Breyer is saying that what is not “easy” is investor psychology…

    “We will have many booms and busts forever in Silicon Valley.” All markets are cyclical. Venture capital is more cyclical than other markets, not less. … One can at best hope to make general forecasts about the probability of a shift in the business cycle, which can help with investing.

    “We like to think that we will make a mistake only once and learn from it. We also are humbled every day by a new mistake.” … The natural human tendency is to gloss mistakes over with psychological denial. By celebrating rather than burying mistakes, you learn faster.

    A Dozen Things I’ve Learned from Jim Breyer By Tren Griffin

    What Silicon Valley refuses to learn from Steve Jobs

    Lesson #1 — Creating great products requires patience … In an era when most follow the lean doctrine of releasing a product early, and letting the market dictate product direction, Steve spent time refining the product internally until he felt it was ready to release. That requires time that most companies don’t want, or can’t afford to invest. Steve’s approach took vision—and yes, arrogance— to think he knew better than others, plus the willingness to look beyond the horizon and envision products that customers did not know they needed yet. Lesson #2 —  Think big… For every Elon Musk who makes tackling three big, crazy ideas before breakfast seem easy, there are thousands of others who come to the valley to launch any project that an investor will put money into, worthwhile or not. Steve dared to shake things up, and thinking small was not part of his character. Lesson #3 — Focus on your strengths… Many admire how successfully Steve cut projects and saved Apple when he returned as interim CEO in 1997… Yet, we still see companies squander energy and resources in too many directions…  Lesson #4 — Think different… Steve would tell you that listening to others is the route to mediocrity. You can’t “think different” when you’re taking your lead from the same people as everyone else. Lesson #5 — Technology by itself is not enough… As Steve said at the iPad 2 launch in March of 2011, “It’s in Apple’s DNA that technology alone is not enough. It’s technology, married with liberal arts, married with the humanities, that yields us the result that makes our heart sing.”

    Rea more: http://venturebeat.com/2014/07/13/what-silicon-valley-refuses-to-learn-from-steve-jobs/

    Things Investors Say When Really What They Mean is, “No”

  • “have you considered joining an accelerator?”
  • “Who else is in your round?”
  • “Let me talk with the MP’s at our next partner meeting and get back to you.”
  • “We’re at the tail end of our current fund, which we’re using for follow-on investments, but we’ll be looking at new investments with our next fund.”
  • “I’m a fan of what you’re doing, I just don’t know anything about the space, so I couldn’t bring any value to you.”
  • “We like to follow a lead. Let me know when you’re about to close your round.”
    Read more: http://pando.com/2014/07/16/startups-anonymous-17-things-investors-say-when-really-what-they-mean-is-no/

  • Startup Founder VS. Company Creator

    Below is a quote from one of the online discussions:

      […] with all my huge respect for Meg, she did not create eBay. She has been its CEO for a long time, she bought PayPal, she developed its business – but when she joined, it was already a successful established company.

    Gregory Gromov: If you want to talk about company founders, then of course Meg is not eBay founder, otherwise I would have called her in my post “eBay’s co-founder”. Whereas I wrote – read carefully – “the lady who was creating eBay”.

    I believe there are good reasons to call Meg that.

    When she came to eBay, it employed a few dozens people, with the sales volume in a few millions. Can’t recall exactly, but I’m pretty sure they didn’t make even $10 mln at the time.

    I’ll agree that by then – late ‘90s – E-Bay was already a successful established company. True, but it was exactly under Meg’s leadership that in the next 10 years E-Bay has become world-known, with thousands employed and billions in trade volume

    It happens quite often that a team that shone at the start would suddenly hit the wall to a large-scale transition when time comes to reap the fruit of early success.

    This is an obstacle that only a few can overcome, especially since there are just not enough Megs and Erics for every startup – even in the Silicon Valley.

    But I am sure that neither Meg Whitman nor Eric Schmidt would even try to create a startup of their own, because they are fully aware that this is not their strong suit, where the art of business is concerned. I would also suggest that under no circumstances either of them would have succeeded in that.

    Yet one can argue that eBay would have reached their current world status if Meg Whitman had not come to lead it in 1998 – in the exactly right moment when, like a newborn chick, they were picking their way out of the startup’s eggshell. Ditto for Google headed by Eric Schmidt in 2001.

    Even by 2001, three years afer Google was founded, its sales volume stood at $19 mln with the expenses at $34 mln.

    Let us also bear in mind that it was taking place amid the turn-of-the-century crisis when not only freshly hatched dot-coms collapsed, but the respectable established industry leaders were starting to crumble as well.

    And in this dramatic moment, like a fairy-tale knight in shining armor, the Grandmaster of Managerial Arts and Sciences Eric Schmidt rides into Google’s field of vision.

    10 years later, Schmidt has trained young founding fathers in the ABCs of management and built up Google – and then, and not a moment earlier, the company”s co-founder Larry Page wished to take back the CEO chair…

    Browsers War

    As of 2008-2014: Google has unseated rival Microsoft as the leading browser maker in the U.S. for the first time:

    browsers_war_2008-14

    ~Google unseats Microsoft as the U.S. browser powerhouse. By Gregg Keizer, Computerworld.

    How this war began: 20 years ago …

    June, 1996: Turn-point  in the Browser’s War

    Month Netscape Navigator Microsoft Internet Explorer
    May-96 83.2% 7.0%
    Jun-96 78.2% 8.3%
    July-96 72.6% 15.8%
    Aug-96 62.7% 29.1%

    ~ Roads and Crossroads of the Internet History : Chapter #4 – Birth of Web, Browsers Wars …
     

     

    Two Key Factors that Makes Silicon Valley Such Fertile Ground for Startups

    The most important legal factor is the California State ban on Non Compete Law:

      … a very special law was enacted in California in 1872. The law in question declared null and void any contract between a business owner and employee if said contract in any way restricted the employee’s freedom to change employers, even if that meant joining the former employer’s competition.

      In other words, any previously signed agreements—for example, an employee contract signed upon hiring—that could in any way limit the employee’s right to freely choose his or her place of work were deemed unenforceable in this 1872 law. More specifically, those clauses that were in conflict with this law were deemed unenforceable.

      This law was initially ratified in 1872 as part of California’s Civil Code. It is now listed under California Code – Section 16600, also known as CAL. BPC. CODE § 16600, and reads:

        Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.

      As a result of this cascade of direct and indirect consequences from the application of this law in Silicon Valley, today a number of generally operating U.S. legal standards, including some of the most important, are practically blocked (“de facto” canceled). Read more: From the Gold Mines of El Dorado to the “Golden” Startups of Silicon Valley

      The above California law was recently tested during the Hewlett-Packard special experimental research: NDA Experiment Set up by Mark Hurd.

    The most important among Silicon Valley startups motivation factors is the “not afraid to fail” attitude:

      Perhaps one of the first practical application of this attitude was formulated about 22 centuries ago.

        “A mistake in choosing the right way of actions should be punished less than omission”
        ~ Roman army, 200 BC

       

      Two thousands years later people still continue to look for some of the alternative approaches that can bring the positive results as well:


      See also, a bit more detailed description of the same phenomenon:

        “Our results indicated that the frequency of omission increases when punishment is possible. We conclude that people choose omissions to avoid condemnation and that the omission effect is best understood not as a bias, but as a strategy”.
        ~ The Omission Strategy. Peter DeScioli, Brandeis University, Departments of Psychology and Economics

    My Startup Failed, and This is What it Feels Like…

    Startup_failed

    Over 90% of tech startups fail, but I never thought my baby, …, would be one of them… Since then I’ve survived being stabbed in the back by cofounders, investment rounds falling through, massive technology fuckups that brought sales to a halt, visa problems, lack of money, lack of traction, lack of a team, hiring the wrong people, firing people I didn’t want to fire, lack of product-market fit, and everything else in between. I learned so much, and yet I failed. I won many battles but I lost the war.
    ~ Nikki Durkin

    See also:

  • Silicon Valley “War on Women”
  • For Silicon Valley’s Leading VC “it doesn’t matter what your probability of failure is …”