Events | Previous Events
August 11, 1999 Event
Startup Fever: All Aboard the Entrepreneurial Bandwagon From the Valley to the Alley, startup fever is sweeping through corporate America, and this wave of the perennial epidemic may permanently alter the corporate landscape. A diverse pool of fresh talent, from recent graduates to tenured employees, are fleeing the security of plush corporate conference rooms for the risk and promise of joining a startup. But is today's entrepreneurial climate unique within the enduring startup trend? The timing surrounding today's startup fever is notable, as yesterday's startups have become today's 800 lb gorillas, losing talent to the very upstart culture and promise that once comprised their differentiating lifeblood. Equally, a new breed of entrepreneur is emerging, as two cell phones in a SOMA loft have replaced the legendary two starving students in a suburban garage. This, combined with a scarcity of talent and an overabundance of financial capital, raise the question of whether the dynamics of today's startups will endure or whether they are simply an interim ripple in a wave of startup evolution.
Key Learnings
STARTUP IS A STATE OF MIND
What is a startup? A company of five employees? Fifty? Five-hundred? Fundamentally, "startup" is simply a term for any organization with decision makers who innovate and improve upon the way something is normally done. This mindset can thrive in larger companies such as Microsoft, AOL, and Dell, as well as in the thousands of companies founded this year alone. At some point, when such organizations shift their focus from creating to simply maintaining, they cease to be startups.
NO RISK, ONLY REWARD
Startup jobs have become much more risk-free. Just a few years ago, an MBA would be lucky to make a living wage with compensation almost solely consisting of options. Now, however, on top of generous stock options, newly minted MBAs receive salaries close to the amounts they would receive from more traditional firms. In addition, given the compression of time in the Internet sector, it is now much easier to identify startup successes and failures prior to joining startups even in their initial stages.
THE NEW TRAINING GROUNDS
MBA rule #1: Your first job out of school should teach you the skills you will need to succeed in business. That rule has not changed, but the training grounds have moved from banking and consulting offices to one story prefabs. Thanks to the entrepreneurs of yesterday, startups have proven they can reshape industries and provide many investors with an excellent return on capital. Accordingly, startups now recruit talented folks by offering a better place to learn, more responsibility, hands-on work, and higher financial compensation.
THE SILICON VALLEY DIFFERENCE
Although the air isn't really different in Silicon Valley from other parts of the US, almost everything else is. The Valley is the only place where US denominated currency is not the most popular form of payment. Stock certificates get you accountants, lawyers, building space, employees, and much more. Employees here flow from company to company, and your boss this year may become your subordinate next year. The unique confluence of talent, money, ideas, and drive makes the Valley what it is.
THE ENTREPRENEUR
What makes an entrepreneur? Is it just about starting a business or more about the attitude towards doing business? Entrepreneurs do not merely start businesses, a somewhat academic process by itself, but also develop new ways of thinking up and developing solutions to problems. Often, entrepreneurs are so driven by the idea building stage that they have difficulty existing in organizations that are just maintaining.
QUOTES OF THE NIGHT
"When you arrive in Silicon Valley, you feel smarter just stepping off the plane."
"It used to be that you could go to Procter & Gamble for a few years and then get a job at any small company. Now, you get a job at a small Internet company, and P&G will beg you to come and work for them."