Tag Archives: Movie

HBO’s Silicon Valley – The Cap. Table (Episode 2)

I just saw that the 8 episodes of SV would be 1- Minimum Viable Product, 2- The Cap Table; 3- Articles of Incorporation; 4- Fiduciary Duties; 5- Signaling Risk; 6- Third Party Insourcing; 7- Proof of Concept; 8- Optimal Tip-to-Tip Efficiency. In episode 2, our hero has to give equity. A typicial start-up dilemma. Richard Hendricks is the founder. He is backed by Erlich Bachmann, « owner of the incubator ». He has three developers, Bertram Gilfoyle, Dinesh Chugtai, Nelson “Big Head” Bighetti. Jared Dunn has left Houli to help and write the business plan so that Peter Gregory, a billionaire venture capitalist (who is also paying students to drop out from school…) will invest $200k for 5% of the company. (Richard has declined a $10M offer for his algorithm…) Where we see that Friendship and Business do not often go along…

In order to negotiate his equity, here is a quote of the nerd talking to the business guy:
“While you were busy minoring in gender studies and singing a cappella at Sarah Lawrence, I was giving crude access to NSA servers, I was one click away from starting a second Iranian revolution,
– I actually went to Vassar
– I provide cross-eye scripting, I monitor for ddos attacks, emergency database rollbacks and faulty transactions. It’s not magic, it’s talent and sweat!”

(I am really not sure of the technical terms…)

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Richard Hendricks & Jared Dunn interviewing the 3 developers, Bertram Gilfoyle, Dinesh Chugtai, Nelson “Big Head” Bighetti

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Peter Gregory and his assistant

HBO meets Silicon Valley – episode 1

I already posted about Silicon Valley’s trailer. Here are a few pictures and one quote… Enjoy!

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SV2

– “That’s weird, they always travel in groups of 5, these programmers. There is always a tall skinny white guy, a short skinny asian guy, a fat guy with a ponny tail, some guy with crazy facial hair, and then an east indian guy. It’s as if they trade guys until they have the right group.
– You clearly have a great understanding of humanity.”

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The Startup Kids – a film that any wannabe founder should watch!

Movies may become a better way to communicate about start-ups & entrepreneurship than books or blogs. It’s something Neil Rimer had told me when I published my book. It is true there has been a number of new features in fiction (The Social Network, Jobs) and non-fiction (SomethingVentured) recently without a need to mention old stuff such as Triumph of the Nerds Silicon Valley Pirates and special events on television such as PBS.

Startup Kids belong to this new trend and it is an interesting (and fun) document. You may watch the trailer here and I will quote a few entrepreneurs thereafter. The document had been mentioned to me by colleagues (merci Corine ) who showed it to me, including the very good blog article of Sébastien Flury: The Startup Kids – a film that any wannabe founder should watch! (whom title I used, nice Sébastien 🙂 )

What’s entrepreneurship?

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Drew Houston, Dropbox: “It’s like jumping out of a cliff and having to build your own parachute”

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Kristian Segerstrale, Playfish: “An entrepreneur is a person who dares to have a dream that not many people have and even more important dares to chase it, put their money where their mouth is and their time and their career and dares to take the risk to going out there to realize that vision.”

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Alexandre Ljung, SoundCloud (from Sweden and based in Berlin and San Francisco): “I did not have the typical entrepreneur background, […] but in hindsight I was very focused on projects so I was very entrepreneurial but not in a business sense.”

In European Founders at Work, his co-founder Eric Wahlforss states “I think we could have easily done this in one year faster if we would have been a little bit more bold and thinking a little bit more in terms of scale early on. We started out very small, had almost no money at all, and a very small team. I think we could have been bolder. […] and running with a bigger vision from the start.” And then “Do it.” It’s the best decision I’ve ever done in my whole life. […] And I was studying engineering as well, and I had one hundred classmates. And I know that almost zero of them actually went on to start a company, which is kind of crazy because I know a lot of them have good ideas. But none of them quite felt that they were able to pull it off.

Luck is an important topic in the movie

Segerstrale
again: “Successful start-ups need a lot of things, they need a great idea, they need a great team, they need to be there at the right time, they need the right level of funding, and they need a lot of luck.”

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Tim Draper, founder and investor, DFJ: “There is a lot of luck in the success of all the companies which have succeeded. You need a lot of luck, there were 25 search engines funded before Google was funded. There was Friendster and LinkedIn and MySpace and about 50 others before facebook became the big winner in that area.” [And it was the same with computer companies in the 80s!]

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Finally do not miss Zach Klein (founder of Vimeo) in his beautiful wood cabin which reminds me of Thoreau’s Walden.

American Public Television PBS celebrates Silicon Valley

February 5th 2013 was a special day for PBS and Silicon Valley: 3 documentaries were shown one after the other. It was:

1- Silicon Valley on PBS American Experience “TV’s most watched history series”

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2- Something Ventured, one of my favorite documentary on the topic. I mentioned already here: Something Ventured: a Great Movie and I show ti to my students as often as I can!

3- Steve Jobs, One Last Thing

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If you don’t want to buy it, here is is!

You can also read the interesting 3 PBS films on Silicon Valley by the San Francisco Chronicle.

I read a lot about SV. Now we probably live times when it’s time to watch videos.

Something Ventured: a great movie

I just watched Something Ventured and I loved it. Loved it so much I plan to have it shown to as many EPFL students as possible in the spring! It is a movie about passion, enthusiasm, energy, changing the world and yes… about money. When asked about their hope about the movie, producers Molly Davis Paul Holland said: Our high hope for this film is that every student that wants to be an entrepreneur—at every level, high school, business school, on corporate campuses—sees it. We want to see more young people fall in love with entrepreneurship… And if we have a quieter, more serious goal, it’s that I want policymakers to look at this and say ‘What can we do to make it easier, not harder, for people in this country to start those kinds of businesses?’

I would have said I hope that every student — at every level — sees it. And the producers added we were trying to explain our vision for the movie and said, ‘What we are envisioning is a movie like Reds [Warren Beatty’s 1981 film about the original Bolsheviks], where you go back in time to talk about an exciting period — in that case 1917 Russia — and ask people in the present day what it was like back then. Dan said ‘Ok, so you want to make Reds but without the Communists.’ That is ultimately what came about: A really beautiful dialogue with really interesting men and the people they financed.

“A Film About Capitalism, and (Surprise) It’s a Love Story.”

This is the title of another article about the movie, where the journalist says “moviegoers can see what might be the rarest bird in the documentary world: a genuine love story about capitalism.” Somewhere else, the moviemaker, Dayna Goldfine explains: “I think what compelled us to take this one on, even though it is a positive view of business, was, one, it’s a chance to do this kind of alternative view. But also, what these guys were doing – both the entrepreneurs and the venture capitalists – was creating real products. So much of what has come down in terms of the financial tragedy of the last few years has been caused by the investment bankers –people who were really just creating financial instruments, as opposed to changing the world with technology by creating or funding an Apple Computer, or a Cisco Systems, or a Genentech”. Co-moviemaker Dan Geller adds: “I wouldn’t say that money was incidental – money was important – but the overwhelming enthusiasm was for taking these brilliant ideas and these inchoate technologies and making something earth-shattering with them. That’s the energy, I think, that comes through in these stories.”

Yes it is a movie about capitalism, about business. But it is also a movie about enthusiasm, happiness, failure also. It begins in 1957 with Fairchild and Arthur Rock. It could have begun with French expatriate Georges Doriot. A professor at Harvard who supposedly taught manufacturing (in fact it was about how many glasses to drink at a cocktail party and how to read newspapers – go to obituaries), Doriot did not create venture capital with ARD (even if he funded Digital Equipment – DEC) – Rock created the term later, but Doriot inspired most of the heroes of the movie: Tom Perkins, Bill Draper, Pitch Johnson, Dick Kramlich. And these guys funded Intel, Atari, Apple, Tandem, Genentech, Cisco. (The movie tells stories from the 60s to the 80s, but Google, Yahoo, Amazon, Facebook could have been added). Indeed with the movie, the Social Network, it’s the best movie I have seen about high-tech entrepreneurship. What I had nearly forgotten in The Social Network is the closed Boston society (Zuckerberg desperate efforts to enter high-end social clubs). Here also, the Wild West explains its success through openness and risk taking.

And the authors did not cheat. It is also about painful memories, how Powerpoint ended up in Microsoft hands, maybe because the entrepreneur had found it too tough before or how one of the rare women in this world, Sandy Lerner, the co-founder of Cisco, may have not forgiven her firing from the company she had created: “you gotta understand the game that you’re in. […] Look, there wasn’t a box for me.” So yes, it is also about failures, “living deads”, but there is a “feel good” attitude, funny moments, such as when Valentine visiting the Atari factory does not recognize the cigarette brands he smokes!! Or when Gordon Moore (the famous Moore law) remembers that Intel went public the same day as PlayBoy.

So if you do not know much (or even if you do know a lot) about Fairchild, Intel, Atari, Tandem, Genentech, Apple, Cisco, and even if you do not care about entrepreneurship, run and watch Something Ventured. Hopefully you will care!

Triumph of the Nerds

When I published Start-Up, a friend and colleague told me: “Why do you want to write something about high-tech entrepreneurship and start-ups. Nobody reads anymore. Make movies, videos!” He may have been right. Now that I heard about a new documentary about Silicon Valley and I will talk about this later in this post, it gave me the opportunity to look backwards. Triumph of the Nerds is a 3-episode (50 mns each) produced in 1996.

It is great, sometimes boring, often funny. Its author Robert X. Cringely is also the author of the related and very good book, Accidental Empires. You can watch the videos on YouTube and read the transcripts on PBS. I found Part I, the best. Part II about Microsoft and IBM is more serious, Part III about Apple is in-between.

First I found the best definition of a Nerd: “I think a nerd is a person who uses the telephone to talk to other people about telephones. And a computer nerd therefore is somebody who uses a computer in order to use a computer.”

Then about the semiconductor industry: “Intel not only invented the chip, they are responsible for the laid-back Silicon Valley working style. Everyone was on a first-name basis. There were no reserved parking places, no offices, only cubicles. It’s still true today. Here’s the chairman’s cubicle… Gordon Moore is one of the Intel founders worth $3 billion. With money like that, I’d have a door.” […] “Only Intel didn’t appreciate the brilliance of their own product, seeing it as useful mainly for powering calculators or traffic lights. Intel had all the elements necessary to invent the PC business, but they just didn’t get it.”

“What was needed was a version of some big computer language like BASIC, only modified for the PC. But it didn’t yet exist because the experts all thought that nothing would fit inside the tiny memory. Yet again the experts were wrong.” And here came … Microsoft … and Apple

Steve Jobs: “Remember that the Sixties happened in the early Seventies, right, so you have to remember that and that’s sort of when I came of age. So I saw a lot of this and to me the spark of that was that there was something beyond sort of what you see every day. It’s the same thing that causes people to want to be poets instead of bankers. And I think that’s a wonderful thing. And I think that that same spirit can be put into products, and those products can be manufactured and given to people and they can sense that spirit.”

Part III talks about how Xerox missed the high-tech revolution and Apple or Adobe used Xerox inventions. The output? “A software nerd is the richest man in the world.” We are in 1996. Gates: “You know, if you take the way the Internet is changing month by month, if somebody can predict what’s going to happen three months from now, nine months from now even today eh my hat’s off to them, I think we’ve got a phenomena here that is moving so rapidly that nobody knows exactly where it will go.”

Yes, it was an Accidental Empire.

There is another documentary Pirates of Silicon Valley but it looks very similar to Triumph of the Nerds, without the humour or Cringely. But the reason of this post, is the recent released of Something Ventured. This I will watch soon and hopefully show at EPFL to students and colleagues.

Here is the trailer: