He shares his candid thoughts on why he thinks the venture capital model is broken and delivers a bullish pitch for a $500 Million VC Fund.
On the VC Model and Startups
“I think the venture capital model is fundamentally broken, but for different reasons. It’s not the lack of exits. A series of forces: including open source, the recession – so there’s lots of people available for very low prices and cheaper commercial real estate…You can start a company for a lot less today than ever. Life is good in that sense. ..You really don’t need $2 million to build a prototype…I’m talking about a certain type of company…a web 2.0 content, social network something… I’m not talking about finding a cure for cancer.”
.
I caught up with Twitter officianado, Adam Jacksonat SDForum’s Teens Plugged in Conference last year. Since then, he’s founded TweetForMyBiz, a social media consultancy, based in San Francisco.
Moderator at this year’s conference, Mike Cassidy wrote an excellent column in the San Jose Mercury News about how teens embrace fearlessness in Silicon Valley. He writes:
“Tech CEOs have done plenty of hand-wringing about our schools’ declining ability to turn out the thinkers we need to keep innovation robust…The young entrepreneurs at the SDForum conference don’t make those worries go away, but they are a reason to hold onto hope. They are a generation that embraces the optimism, fearlessness and drive that have built Silicon Valley.”
Adam Jackson, who uprooted from Florida to San Francisco to pursue his entrepreneurial dreams as a young teen, is a great example of this fearlessness.
In this interview from the Fresh Dialogues archives, Adam talks about how to become a green influencer.
“If you have an idea to be more green, help the earth, then go for it, and try it out. See what happens and talk about it. That’s how you become an influencer, that’s how you become an expert. It’s not by re-quoting other people’s things. Or by trying to figure it out, maybe dabbling in it. You just have to jump head first.”
SDForum attendees got a glimpse of the future last Friday. Microsoft hosted the 4th Annual SDForum Teens Conference – an assembly of some of the most dynamic and creative young minds in Silicon Valley.
I had the pleasure of moderating a panel of high energy high school students who are using technology to pursue their dreams of, well, simply: changing the world. Why not indeed?
Katherine Nasol, a junior at Notre Dame High School, who aims to eradicate child trafficking in the Philippines through her Pagkabata Project, put it best:
“In a time where youth have a bad reputation of going on Facebook all day and spending most of our time playing video games, this conference challenges that notion. Youth have the power to do anything, whether it be building a global network or changing the world views to care for the environment.”
Her colleagues were equally impressive, from Emily Gran, who wants the world to take action in response to climate change (and has created a high school syllabus to trigger that change); to Daniel Brusilovsky who founded Teens in Tech Networksto help launch young entrepreneurs in business (and wants to replace Steve Jobs at Apple when he grows up – there will be no stopping this guy !); to Veronica Hume and Diana Chen who have created the GirlsForTech site to connect techie girls around the world; to Emily Munoz and Natalie Hon,Freestyle Academy students, who made a documentary about the importance of arts education in schools.
Panelists include, from the left: Diana Chen (Mountain View) , Veronica Hume (St. Francis), Katherine Nasol (Notre Dame), Emily Gran (Menlo Atherton) and Daniel Brusilovski (Aragon) and not photographed: Emily Munoz (Mountain View) and Nathalie Hon (Los Altos). Moderator: Alison van Diggelen
For more Fresh Dialogues interviews with teens, click here and check out our full archiveof interviews with Paul Krugman, Tom Friedman, Martin Sheen et al.
On the Eve of Earth Day, it’s telling to look at the green motivations of one of Silicon Valley’s leaders in solar technology: CEO of Akeena Solar, Barry Cinnamon. He’s been a solar advocate since the 1970’s when he studied the science at Massachusetts Institute of Technology (MIT); however, he’s emphatic in his belief: economics trumps environmental arguments for going solar. So much so, that Cinnamon chose to avoid the color green in his company logo and vehicles.
What motivated Cinnamon to explore solar energy in the 1970’s?
“In the 1970’s we had the energy crisis and …(President) Jimmy Carter said ‘the energy crisis is the moral equivalent of war.’ …there was no environmental consciousness about fossil fuels being bad; nobody had ever heard of Green House Gases…We were all worried about nuclear winter.”
.
On becoming a green entrepreneur
“It was a really FEEL GOOD THING….We knew we were doing the right thing for the environment…”
.
On the economics of going solar
“Customers want to do it for the environment or for our country’s energy independence….but if the numbers don’t pencil out, they almost never do it…you’ve got to make a decent economic case.”
. How does “belief” in Global Warming alter the sales pitch?
“Some people don’t ‘believe’ it, and it’s a religious thing…’green’ works well in the Bay Area….but (elsewhere) customers would avoid a company who’s main pitch is green…but if you hit them with the economic argument or the energy independence argument – we don’t need to buy any energy from the Persian Gulf – it works just fine.”
.
Could there be a repeat of the 1970’s boom then bust in alternative energy?
“In the 70’s/early 80’s, the crisis went away, tax credits went away…if energy prices suddenly plummeted again….it’ll happen again. We don’t have the political will to artificially support oil or gas prices….(but) because the world demand for oil and gas is so high and the supply is generally limited…economics is going to reduce the chances that it will happen again…but it’s not impossible.”
There are countless Silicon Valley wannabes all over the world, from Silicon Wadi in Israel to Silicon Glen in Scotland, but none rival Silicon Valley’s track record. Why is Silicon Valley the premier center of innovation? What is the secret of Silicon Valley’s success?
I joined Morton Grosser, a Silicon Valley venture investor, consultant and inventor in his Menlo Park workshop to discuss the history of Silicon Valley and the key ingredients that allow innovation to flourish here. As a former director of eight high-tech companies and strategy advisor to such stalwarts as Hewlett-Packard, Apple, Kleiner Perkins and many Fortune 100 companies, Grosser (or Mort, as he prefers) provides a unique perspective on what makes Silicon Valley successful.
Why did Silicon Valley grow here?
“Silicon Valley has an extraordinary meritocracy culture…it’s an accident of time and place.”
What is the Vital Ingredient?
“We’ve had a unique surplus of the four things that are necessary for an entrepreneurial culture…a great university or universities, smart young entrepreneurs, a source of capital, but most leave out the most important part:
What you really need is a culture of meritocracy. You need horizontality.”
The Father of Silicon Valley, Fred Terman‘s epiphany
“He noticed that science and engineering seminars were taught by 23-year-old graduate students, because those are the people making the progress…this was anomalous for the industrial world… Terman noticed this 70 years ago and he wrote about it in “Steeples of Excellence.” He said, if you could move this principle out of academia into industry you would have an enormous advantage over many other companies.”
How to build innovation – the Silicon Valley Way
“It’s not just the capital…it’s the intellectual environment, the ambiance, the acceptance, it isn’t merely mentoring it’s accepting…To build a culture that is unique; in which industrial companies would have the same structure, where young people have a voice, where new and creative ideas … flourish.”
On Creativity
“You don’t have to teach children creativity, you just have to get out of their way.”
Want to learn more?
The book “Regional Advantage” by Berkeley’s Dean of the School of Information, AnnaLee Saxenian, compares Route 128 (the Boston innovation hub) with Route 280 (Silicon Valley) and explores the reasons, as Mort puts it, “Why Silicon Valley succeeded and Route 128 did not… It comes down to the difference between horizontality and verticality.” In summary: Boston developed a system dominated by independent, self-sufficient corporations, whereas Silicon Valley developed a decentralized but cooperative industrial system.
1. Is Governor Schwarzenegger doing enough to stimulate the green economy?
“Nobody’s done enough.”
2. Advice to Governor Schwarzenegger on Gubernatorial candidates, Meg Whitman’s and Steve Poizner’s stance on AB 32 … that it’s killing jobs and should be repealed.
“Governor Schwarzenegger should pick up the phone to Meg Whitman and Steve Poizner and tell them to back off their inane commentary on AB 32. That it’s killing jobs….that’s just prima facie false.”
“Message to Governor Schwarzenegger: fantastic job that he’s done on behalf of solar …but as a leader of the Republican Party, I’d encourage him to work out a little bit on the Republican candidates… explain to them that our state and Silicon Valley has become a leader in clean tech because of the State’s strong support for (alternative) energy. It would be disastrous if it was suspended in any way.”
3. Will the Whitman/ Poizner stance on AB 32 backfire?
“That policy (proposal) is going to galvanize every person and every company involved in clean tech to vote for (Gubernatorial candidate) Jerry Brown.”
