Silicon Valley: Ground Zero for The Deal

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Duration: 6:15
Source: Stanford ECorner
Author: Ron Conway, Angel Investors LP - Mike Maples Jr., Maples Investments
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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One of the things that keeps bubbling around in my brain as your talking is this incredibly rich ecosystem that we have here. Where we’ve got the successful entrepreneurs with the great track record. We've got the angel investors. We have the VCs. Of course we've got these talented students coming out of Stanford who are feeding these companies. Is there any other place in the world that has this type of ecosystem? And can it be replicated? Ron Conway: Not even close. I'm really opinionated on this topic. Because we have, like, five investments in New York - that they're great companies but they're more work than three companies in Silicon Valley. Because the ecosystem is not there. The cost of living here is awful. It's worse in New York. We cannot find CEOs who will work for less than $300,000 a year. That's terrible! The most a CEO should make in a start-up is $100k. So the ecosystem in Silicon Valley is so powerful. No one is going to come near us as far as I can see. I mean, these relationships where you have the lawyers, the attorneys, the bankers to give venture loans, the angels, it goes on and on and on. Just the attitude, the can-do attitude of Silicon Valley. It's nowhere close anywhere else. And every time I invest even in L.A. we have all kinds of problems where I say to the entrepreneur, "If you just move to Silicon Valley, all this would be solved." Mike Maples: And that's actually born out by the facts. So I was talking not long ago to somebody who invests in VC funds. And they've invested in hundreds of them over the last 30 years. And I said, "What's the one thing you've learned?" He said, "Draw a 25 mile radius around Stanford University and 75% of all returns in the venture business have come from there." That is statistic, right? I mean that's an incredibly powerful argument about just the power of Silicon Valley, the ecosystem. And somewhere on the order of 90% plus have come from that plus 10-mile radius around Route 128 in Bos...
Language: English
Category: Business
Tags: Ron Conway, Mike Maples Jr., Angel Investors LPMaples Investments
Country: United States


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