I first arrived in Silicon Valley in 1977 — 45 years ago. I was 24 years old and had accepted a Stanford fellowship paying $2,575 for the academic year. My on-campus apartment rent was $175 per month and a year later I’d buy my first Palo Alto house for $57,000 (sold 21 years later for $990,000). It was an exciting time to be living and working in Silicon Valley. And it still is. We’re right now in a period of economic confusion and reflection when many of the loudest voices have little to no sense of history. Well my old brain is crammed with history and I’m here to tell you that the current situation — despite the news coverage — is no […]
Paul Graham’s Legacy
Last week there was a press release you might easily have missed. A Distributed Autonomous Organization (DAO) called OrangeDAO is cooperating with a small seed venture fund called Press Start Capital to establish the OrangeDAO X Press Start Cap Fellowship Program for new Web3 entrepreneurs. Successful applicants get $25,000 each plus 10 weeks of structured mentorship plus continued access to the more than 1200-member OrangeDAO network. In exchange, OrangeDAO and Press Start get to invest in the resulting companies, if any, produced by the class.
Big deal, it’s Y Combinator Junior, right?
Wrong. It’s Y Combinator on steroids.
This second-generation YC has […]
COVID-19 will Kill a Ton of Startups (or So it Will Seem)
Yes, I’m still predicting-away, though the pandemic is having some impact on the direction in which this narrative is going. Today’s column on startups and venture capital, for example, wasn’t even on my original list of predictions. Just as the financial markets will use this catastrophe for a reset, so, too, will Sand Hill Road, which has pretty much stopped investing and is now deciding, instead, who to kill?
The psychology of venture capital doesn’t work the way most people think. That’s because it is an industry based on failure: most startups — the vast majority — fail. That means most VC investment decisions are wrong. There is simply no way of […]
Not dead yet! What Bob Cringely has been up to…
A few days ago I tweeted something and a reader reacted, saying about Cringely, “I thought he was dead!” Not dead yet, but I should probably explain my disappearance a few months ago from life in print. I’ve just been too busy working for a living. How does a 67-year-old hack with three minor children recover from going blind, losing his home and business in a horrible fire (like 2,000 others, we are still fighting with insurance companies), while appeasing an angry crowd of Kickstarter supporters armed with pitchforks and shovels? In my case, I went looking for venture money to recapitalize MineServer and I simultaneously started a satellite launch company to fund […]
Why Yahoo is worth less than nothing
A reader pointed out to me today that Yahoo, minus its Alibaba and Yahoo Japan stakes plus cash, is now worth less than nothing according to Wall Street. This says a lot about Yahoo but even more about Wall Street, since the core company is still profitable if in decline. If I were a trader (I’m not) that would argue Yahoo is a buy since there’s likely to be a future point at which the company will be free of those other riches and even Wall Street will be forced to give the carcass a positive value.
But when I heard about the negative value story the first thing […]
