Earlier quoted context omitted.
UChicago is an excellent school, right up there with Stanford and the Ivys, and you're forgetting Northwestern, UIUC, Wisconsin - Madison, Michigan - Ann Arbor, Purdue, and plenty others.
There's a good reason I've never met anyone from the University of Chicago in Silicon Valley. It doesn't have an engineering school. I have met two people from Moscow State University (quite a bit further, no?) in Silicon Valley. It does have an engineering school.
Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
121–130 of 131 posts
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#122Earlier quoted context omitted.
University of Chicago isn't a bad school. I am, however, straining to think of another Chicago research university. But then compare it to Stanford+Cal+UCSF and it just isn't a fair fight. An underrated advantage in SV is its top tier legal and capital talent. WSGR, Cooley, Fenwick, ... are outstanding. For VCs you can start with Sequoia at the top and work your way all the way down to angels. L+S did a demo in Andy…
Chicago is one of the legal and finance centers of the entire country. Unlike SFBA, it's a trading center (it was the heart of the HFT phenomenon). Some of the largest law firms in the world are headquartered here. What you're really trying to say is that there's no venture capital market here. That's true. (And, as a result, there's no real venture law here). Venture capital is a rounding error in the global financi…
http://static.crunchbase.com/reports/annual_2016_yf42a/crunc...
But this isn't the 70s+80s anymore when frankly you had to be in SV. Nowadays there are tremendous advantages to being here but you can be successful elsewhere. Instead, today SV competes for the market rather than owns its.
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#123Earlier quoted context omitted.
Having lived in Chicago, I think it's probably because the city government is corrupt, the Cook county government is corrupt, the suburban county governments are corrupt, all their municipalities are corrupt, and the whole region is going bankrupt from it. People look at Detroit, and think Chicago may be next. They don't want to put their eggs in the same basket as a time bomb, or an egg-sucking weasel. The only thin…
Public finance problems in Chicago are a product of unrealistic pension guarantees. You can call that "corruption", but by that definition many other major metros in the USA are equally "corrupt". The Chicago and Illinois Democratic party machines are almost certainly corrupt (or just rife with corruption), like most single-party states. But it's not clear to me how this impacts ordinary life for citizens. Indianapol…
It impacts ordinary citizens by raising their taxes and making the siting of production facilities in that locale even less attractive to companies, which tends to compound the problem. Real jobs leave. Fake jobs spring up. Companies that offer real jobs get squeezed harder to pay for the fake jobs. When they finally reach a breaking point, they leave and take the jobs with them. Spiral further down and repeat.
This gets thrown around on HN a lot, but the root cause of the problem is the implicit and seemingly unassailable assumption that everyone has to work in order to eat. People actually get angry at the idea that someone might get the minimum portion of life's necessities without sweating on them first.
Until that is addressed, no city in the US is totally safe for a business founded to do productive work, and the safest cities are those where enough new businesses are founded to employ all the people who would otherwise be forced to do make-work jobs to survive. And I think that's why people want to found companies in places that are already considered to be friendly to startups. The tightness of the labor market is not a bug; it's a feature. It means that more of your taxes go to infrastructure and vital services, and less to stealth welfare.
The best place to start a business is one that doesn't need for you to start it there.
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#124Earlier quoted context omitted.
Chicago is one of the legal and finance centers of the entire country. Unlike SFBA, it's a trading center (it was the heart of the HFT phenomenon). Some of the largest law firms in the world are headquartered here. What you're really trying to say is that there's no venture capital market here. That's true. (And, as a result, there's no real venture law here). Venture capital is a rounding error in the global financi…
No, I'm not saying there's no VC in Chicago. But SV had about 2000 'funding rounds' in 2016. Chicago had about 200. SV just dominates VC and you need VC not just C to start companies. http://static.crunchbase.com/reports/annual_2016_yf42a/crunc... But this isn't the 70s+80s anymore when frankly you had to be in SV. Nowadays there are tremendous advantages to being here but you can be successful elsewhere. Instead, to…
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#125Earlier quoted context omitted.
No, I'm not saying there's no VC in Chicago. But SV had about 2000 'funding rounds' in 2016. Chicago had about 200. SV just dominates VC and you need VC not just C to start companies. http://static.crunchbase.com/reports/annual_2016_yf42a/crunc... But this isn't the 70s+80s anymore when frankly you had to be in SV. Nowadays there are tremendous advantages to being here but you can be successful elsewhere. Instead, to…
We're actually saying the same thing: there is no serious community of VC funding in Chicago. I'm just saying that's not because Chicago isn't a capital/finance center.
As for the topic, I think Thiel is a pompous twit. What I will say is that places like Chicago can be quite competitive by being less competitive and more organic. Here, it's I'm doing Snapchat meets Uber. Not quite Dot Com but awfully close. A YC side effect.
If you've got a real idea, it doesn't become real by being here despite here having huge advantages. Was Zuckerberg wrong for picking up his toys and moving to a rental in Palo Alto? Not really. But Xero isn't here. Hell, Xero isn't even American.
So it's kind've like Hollywood. For a few decades, they had tremendous advantages. Now Hollywood competes and other cities do production and location work. But Hollywood is still central to the industry and will be for the foreseeable future.
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#126Earlier quoted context omitted.
It has a CS program, but it's not a great CS program. Aspiring engineers in Chicago tend to go to Champaign or Madison. UIC has a competent, serious research-university engineering program that is adequate to the region but not a standout on the national scale. (Northwestern, the other top-tier Chicago school, does have an engineering program). We should probably dispense with the notion that regions "need" engineeri…
My brother got his PhD in physics at Champaign. And of course, Chris Lattner did LLVM at Champaign (and then came to SV). Good school.
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#127Earlier quoted context omitted.
There's a good reason I've never met anyone from the University of Chicago in Silicon Valley. It doesn't have an engineering school. I have met two people from Moscow State University (quite a bit further, no?) in Silicon Valley. It does have an engineering school.
It has a CS program, but it's not a great CS program. Aspiring engineers in Chicago tend to go to Champaign or Madison. UIC has a competent, serious research-university engineering program that is adequate to the region but not a standout on the national scale. (Northwestern, the other top-tier Chicago school, does have an engineering program). We should probably dispense with the notion that regions "need" engineeri…
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#128Earlier quoted context omitted.
It's a shame that this happened, but you can see how it did. Those chips were built on the fervor of people imagining what we could someday do with them. They could create a connected world, solve and create so many problems on a global scale...it's not super surprising that their successors went on to do those things. What is surprising, and shameful, is how investors reacted, buying into the mania hook line and sin…
> There cannot be a Bell Labs ... [today] Google's R+D arms are arguably in the same broad category as Bell Labs was when it started out. We just need to wait 50 years to see if we will view them the same way in hindsight.
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#129Earlier quoted context omitted.
He did say SV, which is probably true. Europe may or may not have the culture you are suggesting, China might have that hunger but no business started there is safe from gov control, Russia has that control without the economic growth, a lot of places are too small. But...there's probably a dozen cities in the US where you could get everything you can in SV (ok, maybe not the monoculture, the crazy VCs, the crazy cos…
I wonder why Chicago isn't more of a major destination for tech companies. The city is highly walkable, has excellent transportation infrastructure, and low cost nice housing is plentiful within an hour commute by train or car. You can get a nice house for less than 200k, apartment rent is around 600 - 1000 a month. In the city, there are a lot of old 3-4 story houses that have been converted to each floor being a re…
In contrast, the entirety of Canada has about 500-600 homicides per year.
https://en.wikipedia.org/wiki/Crime_in_Chicago#Murder_and_sh...
Re: Peter Thiel: Silicon Valley’s monopoly on big growth tech companies is over
#130No idea if Mr. Thiel is right in this decade, but long term silicon valley has lost its main advantage: silicon. The physical business of building computer parts, especially chips, involves a lot of hard science and deep magic and requires a kind of priesthood steeped in that magic. SV's original success was built on this -- it got rich because it is where the silicon priests lived. But now things have evolved so the…
Two elements of 'Silicon' remain vibrant in Silicon Valley, even if the Fabs are all gone: First, the Design software and the design itself is still largely in place here. Companies like Cadence, Synopsis, Intel, nVidia, AMD, and many other chip firms still draw on Silicon Valley's work force to design the most complex chips. Second, the equipment that is capable of fabricating the most complex chips is almost exclus…
That's not like how SV used to be: before automated layout, design and fabrication were forced to be vertically integrated—you needed a real fab to iterate your design against. So the designers needed to stay where the fabs were, and the fabs would get built where the designers were.
Uncoupling the two means that the fabs can go where it's cheap, and IC design is now just another kind of whiteboard-driven engineering, rather than a kind of monastic ritual performed within a warehouse-sized machine.