Only in Boston and the Valley: About Venture Capital

From oral history with Don Valentine, VC supreme:

RW: Well, do you - do you think that that as one of the successes of Silicon Valley, the availability of venture funds?

DV: There is no question. It's very difficult. And over the years we've been visited by hundreds of people from every country in the world, almost all of the states in the country. They all want to figure out and clone what causes Silicon Valley to exist and thrive. Many or most of the visitors are interested in the underlying employment creation.

But if you look at venture capital, it only works two places in the world. It doesn't work outside the U.S., and it only works in Boston, or the greater Boston area, and in Silicon Valley. Basically, almost no other major financial center in the world has ever generated companies of consequence and providence that is so large and visibly successful. And you can blame it on the weather. You can give credit to the great universities. You can explain that the venture community here is stronger and more experienced than other parts of the world.

I once tried to explain to the Deputy Prime Minister of Singapore who was here trying to take back the magic, and I said it's a state of mind. You can't take it back. Somehow or other you'd have to move your people here and they would have to have their DNA changed so that when they went back to Singapore, there was a DNA adjustment in the way they thought, the way they were willing to take risks. I mean in a place like Japan, if you start a company and it fails you're disgraced. Some people would commit suicide - if that happened.

So weit wir es beurteilen können, sagt Herr Valentine die Wahrheit. Es ist ein Kreuz aber es ist so. Und das ist noch nicht einmal alles. Und jetzt ist California doch pleite, irgendwie.

Wie sagt General Stillwell in Steven Spielbergs Film "1941"? This is not the state of California, this is the state of insanity.