Monday, March 28, 2005

The Light is Not Fading in Silicon Valley The doomsdayers have pronounced silicon valley brain dead and they say the plug has already been pulled, we just haven't noticed the equipment powering off, presumably because we are well, brain dead (http://archive.scripting.com/2005/03/28#theFadingLightOfSiliconValley). Not true. Very far from the truth in fact. As someone who has lived and worked in silicon valley for nearly 20 years I can say there is just as many intelligent passionate people with the drive to do something as there ever was. I could find 100 or so such people immediately from my own social circle. As I have been trying to form a start up in the past months I have been plugged into the VC world in some very very small way. There are great gobs of very intelligent people trying get new ventures started. One friend finally got seed funding after two years of unpaid effort. For every one of him there are hundreds of fantastic people trying. The problem is, it is not easy. I am not saying it should be easy, but keep in mind that it is very difficult to find an idea worth funding. A rule of thumb I have started using is if you had a million dollars would you give a group of people with a particular idea your own money? That sphincters you up a little when you start bitching about funding. Almost every idea turns to lunacy under scrutiny. It takes a lot of vision and passion to pull the trigger on an idea, a plan, and a group of people. In my talks with various startup hopefuls there is a hunger for adventure in creating new ventures. Venture is "An undertaking that is dangerous, daring, or of uncertain outcome." That's what people want. You might think it is about the money, and it is, but it's not only about the money, it's not mainly about the money even. People want to do something. The globe has been explored and until space flight takes off there's not a lot challenging for people of ambition to do. There's a reason the ship in Star Trek is called the Enterprise. I would like to see some venture funds willing to take greater risks though. It seems to get funded you need to hit a certain sweet spot. Software is hard to get funded without the software already being developed. That makes it difficult for people with an idea to get a moderately complex idea off the ground because such an idea requires people working full time. For non-software ideas you don't want an ASIC in your design because that takes too long, is too risky, and is too expensive. This encourages only certain types of projects. I am not saying this is irrational. As I said, if it was your own money you would probably behave in the same way. But that means there is room for speculative startups and their doesn't seem to be a lot of support for that kind of work. Because it is hard doesn't mean there aren't a lot of good people trying. You just don't see it. But all those wonderful people are here and that's why silicon valley is still alive and well. She lives in the energy, passion, and creativity of the people who call the valley home. Don't pull the plug just yet. comment[] 8:41:00 AM

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