Why is Silicon Valley still the place

I heard so many times that Silicon Valley is not any more the place where to be or where to go, that when I read again the emails I had recently with a student, I asked to let me publish some of his words.

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April 2 – Dear Hervé,
I just wanted to update you on my achievements so far in the Silicon Valley. First of all, this place is amazing! It is the first time in my life where I feel so accepted. The events and style of those events is just incredible. This is so much fun!
I met so many inspiring people there. I spent the weekend getting to know the people I am living with. I guess I did not tell you exactly that I live in an entrepreneurs’ house. It’s like a long term hostel for entrepreneurs and by entrepreneurs. I am so inspired by all of the stories!
I also visited a European institution on Thursday. And talking just between you and me I was really disappointed. People were very nice on the surface, but did not help me very much. Just the night before we were talking with some entrepreneurs that a lot of entrepreneurial problems arise in Europe because of lack of cooperation and common goals between the governments.

April 8 – Hervé,
I definitely want to return to Silicon Valley later. Another update of nearly a week’s progress: I visited another amazing conference! Feel so inspired. I also visited one Meetup on the topic of big data. It was really good. I also had an opportunity to participate in an event organized by the Scottish government – it was a very high level event. This is what I love about the Silicon Valley – I would have to try very hard to get into something like that in Europe.
Best,

April 18
I really love this place! 🙂 […] I can also give a short summary of what I did during my 3rd week here. I am so proud of the fact that I have visited Google twice! It’s an amazing place! I have also driven past some famous Silicon Valley giants like Cisco, Intel, IBM, Oracle (I loved the Oracle style!). I also went to the place of Shockley Semiconductors and Fairchild Semiconductors.
I went to some events at Plug and Play – very nice place. People have good connections there. Visited an event at Rocketspace accelerator. Completely different atmosphere. Attended another event by IESE (European business school) at Runway accelerator. Saw some Germans, liked the style. Had another event at SRI. Such a protected space, looks like the military future is in there. The event was about robotics – I felt stupid there because I know nothing about robots, but learnt a lot of stuff.
Lastly, as I have mentioned earlier – had the chance to meet […]. I love his speeches. However, it was a bit disappointing because the material was not really new. He just spoke about the same stuff which is on youtube. In general, I just love my time here. I have almost no time to respond to emails (as you can see), but I meet so many people and visit so many places!

May 6
Regarding the last two weeks of my stay – boy were they crazy. I have visited a lot of events. I have met some Europeans who live in San Francisco area. Actually it was a bit disappointing because they were not really entrepreneurial, more like benefiting from the local atmosphere.
I have been to another pitching session in San Francisco – totally secured my opinion that everyone has a chance to pitch and so many people use the opportunity even though the technologies are not really exceptional. I have spent the Easter at Stanford. There was the demo day and final pitches from participants of E-Bootcamp. Stanford left a very good impression – the quality of pitches and organization is different from the rest of Silicon Valley. The next week I went to Entrepreneurial thought leaders event at Stanford – an interview with Morris Chang. Very nice idea to have such events.
To shortly summarize my trip to the Valley it was truly a revolutionizing experience! I have learnt and saw so much. I feel like I have done another semester at EPFL! I think that entrepreneurship around the globe is very different. It is always possible to make something different than Silicon Valley and tailor it to the local atmosphere but in many cases some traits of the culture need to be changed. And that is probably the hardest thing to change. It requires much more than money injections. I am very happy about my choice to go to SV and I think this has made a huge impact to me as a future entrepreneur.

A few years ago, I had participated to a roundtable in Grenoble. I was trying to explain my views about the differences between here, Europe, and there, SV. It was criticized a lot for that “biased, one-sided view” of things when a young entrepreneur reacted. She had just come back from a trip to SV and it was a first time there. “I met more people and learnt more things in 10 days than I would have in in 6 months in Grenoble.” This was in 2011. I believe it is still true in 2014. I still believe SV is the place where to be or at least to go if you want to accelerate your learning about innovation and high-tech entrepreneurship.

HBO’s Silicon Valley – Episode 6: of Humans and Machines

You will discover about the genius of people
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and machines
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and then might have to decide if you prefer the autism of machines
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or the craziness of people
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Clearly the authors of HBO’s Silicon Valley do not have a great fascination for any of them, as you may discover through the TechCrunch interview they participated in…

Ray Kurzweil has mostly wrong predictions

As often, Marc Voinchet had a remarkable broadcast this morning on France Culture. First a great guest, Cécile Lafontaine for her book The body market, the commodification of human life in the era of bioeconomy (in French only – my translation of the title) which goes beyond the adressed topic by asking questions about the tensions between the individual and society. It provides excellent answers to the debates opened by Thiel. But here I stop and let you discover the interview if the subject interests you.

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In addtion Xavier de la Porte wrote an excellent chronicle that I copied directly from the website of France Culture on the French part of my blog (in order to be able to translate it here): The brain is not one million lines of code.

When we look at what the digital world has to say about the body and life, there is a high likeliness to find quickly intimidating predictions: “Soon we will all be cyborgs” and “In 2045, we will have completely merged with the machines.” A specialist in this kind of statements is a guy named Ray Kurzweil – which I mentioned here already. Pretty awesome inventor, wise businessman, Kurweil became in the last twenty years the promoter of a movement called transhumanism – which considers that humankind will soon merge with machines, thus giving rise to post-humanity – ideas that Kurzweil sold worldwide with books and conferences, ideas that he also sells to super-powerful companies: Google has hired him to run a program on teaching language to machines. The problem with Kurzweil – and many transhumanists – it is their strength of conviction that passes through a scientific-techno-philosophical discourse which we feel is not right, but without knowing exactly where. But recently , I came across evidence that Kurzweil says non-sense. I enjoyed my discovery and I want to share this joy with you.

It has to do with an important aspect of transhumanism: the belief always repeated that very soon we can duplicate our brains into computers. Kurzweil believes that this will be possible in 2020, and moreover, he has stored the brain of his deceased father in that perspective. And in order to support his thesis, here is the type of speech that Kurzweil gives: “The code of the brain is in the genome. The human genome is 3 billion base pairs, six billion bits, which is about 800 million bits after compression. After eliminating redundancies […] this information can be compressed into approximately 50 million bits. But the brain is about half of that, about 25 million bits, or one million lines of code.” And here, in a ruthless and intimidating demonstration, Kurzweil shows us a million lines of code suffice to duplicate the function of the human. (I say “sufficient” because it is just one million lines of code; for comparison, Microsoft Office 2013 is 45 million lines of code).

Except that for once, someone came forward to explain that Kurzweil told non-sense. This person is called Paul Zachary Myers. He is a recognized biologist at the University of Minnesota, specializing in developmental genetics and writes a blog called Pharyngula. And it is on his blog that Myers explains very calmly why what Kurzweil says is wrong. Here is his demonstration. The premise of the reasoning of Kurzweil is “The code of the brain is in the genome.” Totally wrong, says the researcher. The code of the brain is not encoded in the genome. What is in the genome is a collection of molecular tools which is the regulating portion of the genome, which makes cells sensitive to interactions with a complex environment. During its development, the brain unfolds through interactions between cells, interactions which we understand today a small part only. The final result is a brain that is much more complex than the sum of nucleotides that encode a few thousand proteins. One can not deduce a brain from the protein sequences of its genome. How will these sequences express is dependent on the environment and the history of hundreds of billions of cells, interdependent on each other. We have no way to calculate in principle all possible interactions and functions of a single protein with tens of thousands of others who are in the cell, which is the essential first step in the execution of the unlikely algorithm of Kurzweil. In support of his argument, the researcher takes a few examples of some proteins and shows how the interactions are numerous, complex and mostly still unknown.

What is very interesting is that Myers states that he is not hostile to the idea that the brain is a kind of computer, and we will be able to artificially reproduce one day its functions. But he says that he does not need to say stupide nonsense, as does Kurzweil and build hisreasoning on false premises. And here is for you, Kurzweil. If only more researchers could take more time to bring their expertise to question the transhumanist speech, it may save us to hear many absurdities and attend another commodification of human life, which is about seeling biotechnology dream.

The Hard Thing About Hard Things – Ben Horowitz

“Every time I read a management or self-help book, I find myself saying, “That’s fine, but that wasn’t really the hard thing about the situation.” The hard thing isn’t setting a big, hairy, audacious goal. The hard thing is laying people off when you miss the big goal. The hard thing isn’t hiring great people. The hard thing is when those “great people” develop a sense of entitlement and start demanding unreasonable things. The hard thing isn’t setting up an organizational chart. The hard thing is getting people to communicate within the organization that you just designed. The hard thing isn’t dreaming big. The hard thing is waking up in the middle of the night in a cold sweat when the dream turns into a nightmare.

The problem with these books is that they attempt to provide a recipe for challenges that have no recipes. There’s no recipe for really complicated, dynamic situations. There’s no recipe for building a high-tech company; there’s no recipe for making a series of hit songs; there’s no recipe for playing NFL quarterback; there’s no recipe for running for president; and there’s no recipe for motivating teams when your business has gone to crap. That’s the hard thing about hard things— there is no formula for dealing with them.”

This is how begins The Hard Thing About Hard Things by Ben Horowitz [see page ix]. After a first chapter about his experience in start-ups (Netscape, LoudCloud), Horowitz gives advice to entrepreneurs. And it is not business school-like advice indeed.

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Marc: “Do you know the best thing about startups?
Ben: “What?
Marc: “You only ever experience two emotions: euphoria, and terror. And I find that lack of sleep enhances them both.

[Page 21]

Marc is Andreessen, the founder of Netscape, with whom he co-founded VC firm Andreessen Horowitz (a16z.com) in 2009.

“People often ask me how we’ve managed to work efficiently across three companies over eighteen years. Most business relationships either become too tense to tolerate or not tense enough to be productive after a while. Either people challenge each other to the point where they don’t like each other or they become complacent about each other’s feedback and not longer benefit from the relationship. With Marc and me, even after eighteen years, he upsets me almost every day by finding something wrong with my thinking, and I do the same for hi. It works.” [Page 14]

I plan to come back with comments about this book when I am finished, but let just me finish for now with my usual start-up cap. tables. here Netscape and LoudCloud.

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HBO’s Silicon Valley – Episode 5: after Banksy, Chuy

I could not imagine I would make a link between my posts on Street Art and the ones about Silicon Valley. But here is the missing link: in episode 5, you will know more about Chuy
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and how our heroes decide to use a street artist for their logo. The result I cannot really show full size but here are extracts of the first attempts.
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Here is the final logo.
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And you can enlarge by clicking for the x-rated attempts. Not difficult to find who might pay $500k for the work. Not their best friends….
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click here or on picture to enlarge – xrated

All this comes from the fact that when pp was thought of as a logo for PiedPiper, Erlich explodes:
“Lower case. Are you serious?
Twitter, lower case t
Google, lower case g
Facebook, lower case f
every f… company in the Valley has lower case.
Why? because it’s safe.
We are not going to do that…”

Now of course, there are also serious people in the series, talking about burn rate…
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and process…
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HBO’s Silicon Valley – Episode 4

I think SV is funnier and funnier and I disagree with people who wrote that the best jokes were in episode 1. Well, I am probably not the same age as they are… 🙁 Whatever, you see s… people dropping names like here:
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click to enlarge

Do you recognize the signatures? And then you see our founder struggling with his vision…
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… to beautiful Monica. He is really a great actor. I think! 🙁
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I knew in my previous life about consultants who go on the beach. Here are developers who go on the roof, the “Unassigned.”
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But everything seems to be the best in the best of possible worlds.
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HBO’s Silicon Valley – Articles of Incorporation (Episode 3)

When a name can be an issue… Is PiedPiper a good name for a company? Well. Not if there is another company with the same name.

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Whatever, PiedPiper has its garage too!

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So when you need a name, either you brainstorm in different ways…
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… or you learn about negotiation
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Apparently HBO likes Silicon Valley enough: they already agreed to produce season 2!

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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– “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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A Look Back at the Swiss February 9 Votation

Here is my regular column in Entreprise Romade. This time, the impact of the vote on February 9…

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So much has has been said and written about the impact of the vote on Feb. 9 on academic research and education, that I have hesitated before writing this column. Freezing of the exchange of students through the Erasmus + program and the access to ERC grants for top researchers; degradation to the rank of third country in the Horizon 2020 research programs. All this was well explained and should be known to those who are or feel concerned. Foretold disaster or major constraint to which Switzerland will adapt through its own genius, the future only will tell. Finally, the people are sovereign and the concerns expressed trhough the vote are fairly shared, in Europe and even in the USA. Europe suffers probably more than Switzerland and our neighbors have shown their misunderstanding rather than frustration.

So I will just try to illustrate here the reasons for my sadness. A simple anecdote to start: I arrived at EPFL in 2004. The first file on which I worked was the project of a young Spanish student, Pedro Bados. He had just finished his master’s thesis as part of an exchange program and his work had produced some nice results. These results were patented, and the student turned into an entrepreneur when he founded NEXThink which today has about one hundred employees. The start-up, which is headquartered on the EPFL campus, is supported in part by foreign capital due to the weakness of the Swiss venture capital scene.

Mr. Blocher had told Radio Suisse Romande he did not believe in big European projects that do not work. It is true that innovation can not be planned and very clever is the one who can predict the future. But Pedro’s innovation is real however and simply would not have existed without Erasmus. NEXThink is not the only Swiss company founded by a migrant. Biocartis has raised over CHF 250 million and its founder Rudi Pauwels, is Belgian. He is a “serial entrepreneur” who had come to seek inspiration at EPFL after a first success. More than three quarters of the spin-off EPFL have foreign founders, and half are European.

Another anecdote: Switzerland is a model for its neighbors in academic matters and for its innovation performance. Many universities and representatives from European regions visit the EPFL campus. For six months, I have been working on a project with three other European technological universities on high-tech entrepreneurship. Without accepting the intiative on mass immigration, we would have been the project leader of an exchange program for entrepreneurs. We will not be better than a third country and I can not work with my Swiss colleagues from the private sector who have a good knowledge in the internationalization of entrepreneurship. We will adapt…

The problem is not so much economic as Switzerland contributed largely to the funding of these programs. It is human. In a recent debate in Neuchatel, Peter Brabeck, chairman of Nestlé, said: “75% of people working in Switzerland in our research and development teams are foreigners; this vote is creating a lot of uncertainty for them. But I can assure you of one thing: Nestlé will not lose a single one of its scientists. But Switzerland perhaps. Because if I do not have the right to employ them in Switzerland, so I will have them work elsewhere on their projects” [1]. Novartis had already made long ago the choice to open a research center in Boston. On a smaller scale, HouseTrip, a recent success story from the Lausanne Hospitality School, moved to London, because of the lack of local talents.

Last anecdote: I arrived in Switzerland in 1998 and the process of obtaining my work permit took more than six months…; it was not an easy arrival. The entry into force of the bilateral agreements, in 2002, certainly simplified the decision of Pedro Bados to create his start-up in Switzerland; no doubt. I have no idea how future young foreign entrepreneurs will experience our new situation. Switzerland will probably adapt here too! But I do not see who wins anything at complicating the arrival of talents whereas they leave very easily.

I finish on a more symbolic dimension by quoting a participant in another debate on the subject [2]: “And to return to the question of research, EPFL has not only research capacity, it has a serious mission in training. I’m an engineer and I am amazed to see that the very notion of engineer is disappearing when the EPFL is now staking everything on biotechnology. I’d like to see EPFL still train people how to build bridges.” If the academic world has been so little audible despite its attempts, it is perhaps because it is not as well liked as you might think. Switzerland does not like elitism. One prefers established SMEs to start-ups, which do not make people dream as in Silicon Valley and pension funds do not support the venture capital. When I attended a selection committee of promising young people, I heard the jury member smile while indicating that only 2-3% of Swiss students benefited from Erasmus and if it was for them to live what describes the movie “L’Auberge Espagnole” (The Spanish Inn), this may not be so bad. Yet high-tech entrepreneurship also concerns only 2-3% of our students. Scarcity and elitism, I think, are more important than you think.

EPFL did not stop training specialists of concrete or mechanical structures. Academic research has even improved the quality and cost of bridges. But the world is changing too. Bioengineering, computer science are promising and future innovations in these disciplines will be much larger than those that improve our bridges and tunnels. One does not need to be a genius to understand this. Except if we have lost faith in science and technology? I can tell you that Asia and America have not lost that confidence. Would Switzerland be like Europe?

I understand that the initiators of the referendum are sticking to their positions and consider that the country’s problems were more important than the consequences thereof. Expressing a frustration in front of a Europe in crisis or a concern for the future is one thing. Minimizing the impact this will have on Switzerland seems to be a risky bet. I respect the decision, but I regret it… badly.

[1] http://www.arcinfo.ch/fr/regions/canton-de-neuchatel/a-neuchatel-le-president-de-nestle-peter-brabeck-s-inquiete-des-consequences-du-vote-du-9-fevrier-556-1271025

[2] Florence Despot on the RTS: http://www.rts.ch/info/dossiers/2014/les-consequences-du-vote-anti-immigration/5619927-playlist-immigration-suites.html?id=5598709