Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet • Hacker News Board

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#31

Post by impendia » Thu, May 10, 2012, 3:53 PM UTC

simplemind wrote: post #27

mindcrime wrote: post #11

Earlier quoted context omitted.

Exactly. Every time I hear somebody talk about the "overabundance of capital" in the startup world, I want to grab them by the shoulders, stare them in the eyes and scream frantically like a mad-man "Have you been to RTP (NC) ?!?!??" OK, not quite that bad, but still, you get the drift. What's happening in California is not necessarily indicative of what's going on in the rest of the world. Research Triangle Park, fo…

This isn't a political statement, it's a comment about culture as it relates to recruiting valuable and scarce talent. Startup culture tends to be highly meritocratic. It lends itself to openness toward who you are as an individual as long as you work hard, work smart and achieve. Given this, I can't imagine trying to recruit the best and the brightest to NC given recent developments when there are more accepting pla…

Regarding the "recent developments", RTP jumps out on the following map:

http://www.wral.com/news/political/page/10991843/

Durham and Orange Counties voted no by over 2-1 margins. And meanwhile, Proposition 8 passed in California a few years back; indeed, such propositions have been passed everywhere in the US where they've been put to the voters as a whole. North Carolina is not distinguished in this respect.

I personally like San Francisco over RTP, despite originally being from Durham, but there is a lot that is very good about the RTP area, and I personally know a lot of very talented people who are extremely happy (if, admittedly, a little bit less so this week...) to call it home.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#32

Post by sabat » Thu, May 10, 2012, 3:58 PM UTC

mgkimsal wrote: post #28

jnorthrop wrote: post #21

Earlier quoted context omitted.

> Are investors so emotionally tied to one geographic area that long-term investing in other areas of the US is strictly verboten? I don't think it is quite as conspiratorial as you make it out to be. I was speaking to an active angel investor last night. He said he won't do a deal that is much more than an hours drive away. He feels like he can't really participate (as an advisor) to a company that he can't easily r…

I didn't say it was a conspiracy, but emotional ties. His wanting to stay in a particular geographic area plus his desire to only invest in projects he can drive to is limiting him. That's fine. I'm not even suggesting he's complaining about a talent shortage. But others are. Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less inv…

It's not about emotion. It's about concentration of talent and drive, and geography does matter. People here in California, particularly in the Bay Area, think differently (apologies to SJ). Great startups are usually based on some sort of rule breaking, game change, or disruption. The non-conformist culture in CA especially lends it to this. That's why startups thrive here.

Edit: it's no coincidence that the startup hub in Texas is in Austin, the only place in Texas I'm aware of that has a non-conformist culture.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#33

Post by simplemind » Thu, May 10, 2012, 4:13 PM UTC

impendia wrote: post #31

simplemind wrote: post #27

Earlier quoted context omitted.

This isn't a political statement, it's a comment about culture as it relates to recruiting valuable and scarce talent. Startup culture tends to be highly meritocratic. It lends itself to openness toward who you are as an individual as long as you work hard, work smart and achieve. Given this, I can't imagine trying to recruit the best and the brightest to NC given recent developments when there are more accepting pla…

Regarding the "recent developments", RTP jumps out on the following map: http://www.wral.com/news/political/page/10991843/ Durham and Orange Counties voted no by over 2-1 margins. And meanwhile, Proposition 8 passed in California a few years back; indeed, such propositions have been passed everywhere in the US where they've been put to the voters as a whole. North Carolina is not distinguished in this respect. I pers…

Not to be nitpicky, but NC did distinguish itself from Proposition 8 in banning civil unions and domestic partnerships, too.

NC is a wonderful place, I was making the comment that now it's just a little harder to recruit great people there. Perception matters when scaling a company. Starting a 10 person team is probably fine. Scaling to a 100-200 team gets that much harder.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#34

Post by T_S_ » Thu, May 10, 2012, 4:26 PM UTC

nirvana wrote: post #19

mgkimsal wrote: post #9

“Everyone is competing for the same people, going after the same real estate, the same support services,” Hartz says. “The natural resources of the startup world are getting scarcer and scarcer, and the cost is getting higher and higher. It’s all an outgrowth of an abundance of capital.” And largely still doing this in just a few square miles in California. Are investors so emotionally tied to one geographic area tha…

I really don't understand the over fixation on Silicon Valley. I lived there for awhile. Its got high population density is full of a lot of fake people (people who are happy to "help" your startup for just a taste of the equity), fake investors, and an extraordinary amount of noise. I'm sure there are many people who love it for the same reasons that high pressure finance types love new york city. But this seems ana…

The same reason uranium ore doesn't explode. Density. I lived in several other places filled with talented people--in other industries. They just weren't interested in what I was doing. Risking all my time and money on a tech startup seemed strange and maybe crazy. Here the vibe changes as soon as you step off the plane and buy a coffee.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#35

Post by mgkimsal » Thu, May 10, 2012, 4:45 PM UTC

sabat wrote: post #32

mgkimsal wrote: post #28

Earlier quoted context omitted.

I didn't say it was a conspiracy, but emotional ties. His wanting to stay in a particular geographic area plus his desire to only invest in projects he can drive to is limiting him. That's fine. I'm not even suggesting he's complaining about a talent shortage. But others are. Might he not have a similar quality of life and have access to some other great companies to invest in within an hour's drive and have less inv…

It's not about emotion. It's about concentration of talent and drive, and geography does matter. People here in California, particularly in the Bay Area, think differently (apologies to SJ). Great startups are usually based on some sort of rule breaking, game change, or disruption. The non-conformist culture in CA especially lends it to this. That's why startups thrive here. Edit: it's no coincidence that the startup…

"He said he won't do a deal that is much more than an hours drive away. He feels like he can't really participate (as an advisor) to a company that he can't easily reach."

"He feels" is where I got emotion from.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#36

Post by spitfire » Thu, May 10, 2012, 5:00 PM UTC

mgkimsal wrote: post #16

mgkimsal wrote: post #9

“Everyone is competing for the same people, going after the same real estate, the same support services,” Hartz says. “The natural resources of the startup world are getting scarcer and scarcer, and the cost is getting higher and higher. It’s all an outgrowth of an abundance of capital.” And largely still doing this in just a few square miles in California. Are investors so emotionally tied to one geographic area tha…

Replying to my own thread here: If an investor was watching one of their companies continually chasing a limited resource and paying an ever-higher price for those resources just to keep their business going, wouldn't they counsel the company to change their business model some? Look outside the box? Look for different suppliers to keep the costs down, create a competitive advantage, etc?

I'd counsel the company to turn a profit.

But I'm not in silicon valley.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#37

Post by rogerbinns » Thu, May 10, 2012, 5:14 PM UTC

nirvana wrote: post #19

mgkimsal wrote: post #9

“Everyone is competing for the same people, going after the same real estate, the same support services,” Hartz says. “The natural resources of the startup world are getting scarcer and scarcer, and the cost is getting higher and higher. It’s all an outgrowth of an abundance of capital.” And largely still doing this in just a few square miles in California. Are investors so emotionally tied to one geographic area tha…

I really don't understand the over fixation on Silicon Valley. I lived there for awhile. Its got high population density is full of a lot of fake people (people who are happy to "help" your startup for just a taste of the equity), fake investors, and an extraordinary amount of noise. I'm sure there are many people who love it for the same reasons that high pressure finance types love new york city. But this seems ana…

One thing about California is that state law explicitly says anything developed on your own time with your own equipment is yours (obvious conflicts with your employer aside).

Every employment contract I have seen outside of California has said something to the effect that anything you develop, no matter whose time and equipment is used, or relevance to your job or employer belongs to them. Even if you worked for a software company, coming up with new cat food would belong to them. Many times there is also a non-compete but at least some states require payment during the non-compete period.

This lack of "friction" in California makes for a more vibrant scene in starting companies and getting people to join.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#38

Post by wccrawford » Thu, May 10, 2012, 5:31 PM UTC

rogerbinns wrote: post #37

nirvana wrote: post #19

Earlier quoted context omitted.

I really don't understand the over fixation on Silicon Valley. I lived there for awhile. Its got high population density is full of a lot of fake people (people who are happy to "help" your startup for just a taste of the equity), fake investors, and an extraordinary amount of noise. I'm sure there are many people who love it for the same reasons that high pressure finance types love new york city. But this seems ana…

One thing about California is that state law explicitly says anything developed on your own time with your own equipment is yours (obvious conflicts with your employer aside). Every employment contract I have seen outside of California has said something to the effect that anything you develop, no matter whose time and equipment is used, or relevance to your job or employer belongs to them. Even if you worked for a s…

It's not hard to find a contract that only gives them rights to things that are relevant to their interests. Mine lets me have anything that isn't relevant.

Of course I'd prefer to keep anything I think of on my own time, but proving that it was on my own time is nearly impossible, and I think this provides them some protection against assholes. And I have no interest in competing against my employer anyhow.

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#39

Post by cchurch » Thu, May 10, 2012, 5:45 PM UTC

impendia wrote: post #31

simplemind wrote: post #27

Earlier quoted context omitted.

This isn't a political statement, it's a comment about culture as it relates to recruiting valuable and scarce talent. Startup culture tends to be highly meritocratic. It lends itself to openness toward who you are as an individual as long as you work hard, work smart and achieve. Given this, I can't imagine trying to recruit the best and the brightest to NC given recent developments when there are more accepting pla…

Regarding the "recent developments", RTP jumps out on the following map: http://www.wral.com/news/political/page/10991843/ Durham and Orange Counties voted no by over 2-1 margins. And meanwhile, Proposition 8 passed in California a few years back; indeed, such propositions have been passed everywhere in the US where they've been put to the voters as a whole. North Carolina is not distinguished in this respect. I pers…

What on earth does this have to do with technical talent?

Projecting your political opinions a bit?

Re: Why One of Silicon Valley’s Savviest Investors Has Shut His Wallet

#40

Post by d3x » Thu, May 10, 2012, 5:53 PM UTC

I dont understand this mentality. There are tons of people that have created great products and are begging for even the smallest amount of funding. The problem is not the funding environment is the attitude of the investors ie: Catarina Fake getting a few mil for pinwheel?