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jerryking : low_value   2

The Mind of Marc Andreessen - The New Yorker
MAY 18, 2015 | New Yorker | BY TAD FRIEND.

Doug Leone, one of the leaders of Sequoia Capital, by consensus Silicon Valley’s top firm, said, “The biggest outcomes come when you break your previous mental model. The black-swan events of the past forty years—the PC, the router, the Internet, the iPhone—nobody had theses around those. So what’s useful to us is having Dumbo ears.”* A great V.C. keeps his ears pricked for a disturbing story with the elements of a fairy tale. This tale begins in another age (which happens to be the future), and features a lowborn hero who knows a secret from his hardscrabble experience. The hero encounters royalty (the V.C.s) who test him, and he harnesses magic (technology) to prevail. The tale ends in heaping treasure chests for all, borne home on the unicorn’s back....Marc Andreessen is tomorrow’s advance man, routinely laying out “what will happen in the next ten, twenty, thirty years,” as if he were glancing at his Google calendar. He views his acuity as a matter of careful observation and extrapolation, and often invokes William Gibson’s observation “The future is already here—it’s just not very evenly distributed.”....Andreessen applies a maxim from his friend and intellectual sparring partner Peter Thiel, who co-founded PayPal and was an early investor in LinkedIn and Yelp. When a reputable venture firm leads two consecutive rounds of investment in a company, Andreessen told me, Thiel believes that that is “a screaming buy signal, and the bigger the markup on the last round the more undervalued the company is.” Thiel’s point, which takes a moment to digest, is that, when a company grows extremely rapidly, even its bullish V.C.s, having recently set a relatively low value on the previous round, will be slightly stuck in the past. The faster the growth, the farther behind they’ll be....When a16z began, it didn’t have even an ersatz track record to promote. So Andreessen and Horowitz consulted on tactics with their friend Michael Ovitz, who co-founded the Hollywood talent agency Creative Artists Agency, in 1974. Ovitz told me that he’d advised them to distinguish themselves by treating the entrepreneur as a client: “Take the long view of your platform, rather than a transactional one. Call everyone a partner, offer services the others don’t, and help people who aren’t your clients. Disrupt to differentiate by becoming a dream-execution machine.”
Marc_Andreessen  Andreessen_Horowitz  Silicon_Valley  transactional_relationships  venture_capital  vc  Peter_Thiel  long-term  far-sightedness  Sequoia  mindsets  observations  partnerships  listening  insights  Doug_Leone  talent_representation  CAA  mental_models  warning_signs  signals  beforemath  unevenly_distributed  low_value  extrapolations  acuity  professional_service_firms  Michael_Ovitz  execution  William_Gibson 
may 2015 by jerryking
The China Syndrome
JULY 16, 2007 | WSJ | By JEREMY HAFT.
On average, it takes China 17 separate parties to produce a product that would take us three. Unlike Japan in the 1980s, little companies drive China's economic growth, not big ones. China's industries are composed of hundreds of thousands of tiny factories and farms -- plus traders, brokers, haulers and agents, all of whom take control of the goods and materials but add little value to the product. With every additional player in the chain, the cost, risk and time grow. Effective quality control in this environment is difficult.So is effective cost control. Despite cheap labor, making goods in China is often more expensive than in the U.S. Far from being a bottomless ATM of cheap consumer goods, China is a risky, costly and time-consuming place to do business.Yet polls show a majority of Americans believe China has mastered basic manufacturing -- and it's now barreling into our high-tech backyard. That's false. As the product recalls demonstrate, China can barely make low-value goods reliably, much less higher-value ones……To compete head-to-head with the American economy, China will have to revolutionize the very way its industries are organized. It must shake out the thousands of low-value middlemen and integrate the tiny factories into larger, more competitive companies. It must train a workforce in modern technology and business practices. And, it must instill transparency and a uniform rule of law. Such an effort could span generations…….the next century will not be led by the country that can make the cheapest copy of a spark plug. It will be led by innovators and entrepreneurs, America's unrivaled assets. Innovation -- not imitation -- will create jobs and maintain America's economic primacy in the century ahead.
China  Chinese  product_recalls  America  transparency  manufacturers  innovation  competitiveness_of_nations  low_value  middlemen  rule_of_law  entrepreneurship 
october 2011 by jerryking

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