Note to recruiters

Note to recruiters: We are quite aware that recruiters, interviewers, VCs and other professionals generally perform a Google Search before they interview someone, take a pitch from someone, et cetera. Please keep in mind that not everything put on the Internet must align directly to one's future career and/or one's future product portfolio. Sometimes, people do put things on the Internet just because. Just because. It may be out of their personal interests, which may have nothing to do with their professional interests. Or it may be for some other reason. Recruiters seem to have this wrong-headed notion that if somebody is not signalling their interests in a certain area online, then that means that they are not interested in that area at all. It is worth pointing out that economics pretty much underlies the areas of marketing, strategy, operations and finance. And this blog is about economics. With metta, let us. by all means, be reflective about this whole business of business. Also, see our post on "The Multi-faceted Identity Problem".

Tuesday, July 31, 2012

Reversing the Decline in Big Ideas

Max Marmer in the HBR blog on why Silicon Valley has "got shallow":

Many venture capitalists are up in the arms because their returns are down, their funds are drying up, and there appear to be a declining number of entrepreneurs pursuing big ideas.

They've turned to blaming angel investors for encouraging "an entire generation of entrepreneurs [to build] dipshit companies and hoping that they sell to Google for $25 million." They say, "this 'think small' attitude is driving entrepreneurs who may otherwise build the next Google or Microsoft to create something much less interesting instead." And this has implications for the whole ecosystem because, "then everyone loses. No IPO. No 20,000 tech jobs. No new buyer out there for the startups that don't quite make it."

Unfortunately, venture capitalists have mixed up their causality. Angel Investors are not the reason more entrepreneurs are thinking small. More entrepreneurs are thinking small, because the costs to starting a company have fallen so dramatically that there is now a whole new class of entrepreneurs creating companies. The founders starting "dipshit companies" are not the same types of founders who would be starting the next billion dollar companies.

These founders don't want to change to world. They just want to make enough money to provide for their family, buy a car, or earn their freedom. These people are the information economy's mom and pop business owners, just more technologically leveraged and profitable than their brick & mortar predecessors. Instead of starting restaurants and hairdressers they build coupon apps that are used by thousands of restaurants and hairdressers.