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?

Don Valentine, VenturistDV: 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.

But the mystique of why it works is still very hard to narrow down to six or seven simple declarative sentences. And it - it is a local bit of magic that - works at this particular point and time. The duration of the venture industry is probably only from something like 1960 through the present, so you talk about not even half a century. It - it's still a new and - and sort of closet-like form of financial engineering. We don't think of it as investing at all. We think of it as building companies, often times building industries. And it's an entirely different mentality and attitude than in the traditional idea of buying and selling things. And this is not a place where you buy things; this is a place where you build things. And you participate in the founding team that creates an entirely new company and sometimes a new industry. And now there are far more practitioners.

But if you go around the world, the Research Triangle in North Carolina was going to be another magic spot. Well, you can't name a great company, it’s never been started there. You can look at other centers. Seattle - well, there is a great company there. Maybe there are two great companies there - they include Nike. And - has anything happened in the last twenty-five years in that community other than Microsoft and Nike? And the answer is not a lot. Lot's of companies have started. Lots of things going on, but not a lot of monumental success. I mean it's unbelievable the number of companies that have gained prominence, have revenues of a billion dollars in this tiny, little valley. So it is a bit of enigma what all the ingredients are that everybody would like to clone and take away.

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.

The Pilot is searching for the Japs.
Only fellow Americans can be found.

The Lieutenant is searching for l'amour. 
She is Donna Stratton, an absolute godess

The General is searching for a moment of feeling and relaxation.
On the screen is Dumbo.

last updated: 22.10.21, 01:16

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Should be
pretty easy to guess from the context and image who HaFi and InTu are. Besides, thx for the hint to the open bold-tag.
by MaryW (22.10.21, 01:16)
Low hanging fruit
1 comment, lower geht es mathematisch schon aber psychosomatisch nicht.
by MaryW (15.10.21, 19:51)
da ist wohl ein <b> offen geblieben… und wer oder was sind HF und IT?
by tobi (25.09.21, 10:50)
manche nennen das
low hanging fruits, no?¿
by motzes (25.08.21, 20:33)
Freiwillige Feuerwehr
Wie ist das mit den freiwilligen und den professionellen Feuerwehren? Wenn 4 Häuser brennen und nur 2 Löschzüge da sind, dann gibt es doch eine....
by MaryW (22.07.21, 07:06)
That is a good argument and not to be underestimated. I was convinced a malevolent or rigid social environment (the others) posed the largest obstacle....
by MaryW (18.07.21, 08:54)
Und noch etwas
Die Schutzkleidung ist ein großes Problem. Sie verhindert allzu oft, dass mann mit anderen Säugetieren gut umgehen kann.
by StefanL (26.05.19, 07:09)
U get 1 big smile from me 4 that comment! And yes, i do not like embedded except it is good like this. It's like....
by StefanL (19.05.19, 16:30)
Just saying. #esc #strachevideo— Helene Voglreiter (@HeeLene) May 19, 2019 (Sorry, falls embedded unsocial media unerwünscht ist…)
by tobi (19.05.19, 10:57)
That's an adequate comment! Und das erste Zitat ein ganz besonders tolles Beispiel für den "Umschlag von Quantität in Qualität".
by MaryW (15.05.19, 19:57)
In the future everyone will be famous for fifteen people. – Momus You’ll always be a planet to me, Mr Bacchus. – Charon Fußnote! Find ick knorke.....
by tobi (15.05.19, 14:07)
I think I maybe know what you meant. It is the present we know best and the future we invent. And history is mostly used....
by StefanL (13.05.19, 00:55)
by StefanL (05.05.19, 21:15)
what about hindsight is 20/20?
by tobi (05.05.19, 14:00)
Ja echt.
Vielleicht schaffen wir es aber ja wieder einmal auf ein Konzert zusammen.
by StefanL (01.05.19, 05:55)
oh schade, verpasst…
by tobi (30.04.19, 09:07)
Als ethnische Gruppe bezeichnete Max Weber eine "Menschengruppe, welche auf Grund von Ähnlichkeiten des äußeren Habitus oder der Sitten oder beider ... einen subjektiven Glauben....
by StefanL (28.04.19, 07:28)
vielleicht aber
hat er auch während des Moderierens seinen Text sozusagen live in die Wikipedia kopiert? (leider wird diese theorie durch überprüfung der datenlage nicht unbedingt erhärtet.)
by chris (30.03.19, 09:08)
by misc (28.03.19, 09:28)
Na, heute wird er nicht weinen, sondern die Korken knallen lassen. Aber bald wird er wieder weinen, nämlich wenn er mit Verspätung merkt, dass der....
by ArchibaldL (27.03.19, 06:15)

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