Obsession is the Fuel of Silicon Valley

Perspective, Pontification and Propoganda about Entrepreneurship and Venture Capital, brought to you by David Hornik of August Capital.

Obsession is the Fuel of Silicon Valley

An interesting debate has broken out between Glenn Kelman and Mike Arrington. Glenn is the CEO of Redfin, a Seattle-based startup that is trying to modernize the process of buying and selling homes. Glenn's a smart guy and a great entrepreneur. And he has always struck me as quite thoughtful. Which is why I was surprised to read his recent blog post entitled, "How Green Was My Valley." In that post, Glenn extolls the virtues of Seattle, while attacking Silicon Valley:

"the Valley's monomania is really just a kind of pubescence. What else could account for the Valley's self-righteousness, its congregations of frustrated dudes, its all-nighters, idealism, delusions of grandeur, mood-swings, longings, dramas, hero-worship and pranks? Anywhere else by contrast seems all grown-up."

Wow. Those are strong words. And the rest of his post is equally provocative. Glenn doesn't just praise Seattle. He berates the Bay Area.

When I first read Glenn's post, I almost took the bait. But I thought better of it. Mike Arrington, on the other hand, did not. Mike couldn't have Glenn badmouth the Bay Area as a "heartless amnesiac" without pointing out to Glenn that the Bay Area knows better than to waste its time focusing on the past. Mike couldn't let Glenn get away with praising the Seattle lifestyle without pointing out that it is just that, a lifestyle; the Bay Area has better things to do than worry about lifestyle. Mike couldn't let Glenn get away with baldly suggesting that Bay Area businesses are trendy and Seattle businesses focus on "what works" without giving a single concrete example; the Bay Area is all about specific examples, not baseless accusations. Mike couldn't let Glenn get away with any of it. That's just not something Mike can do.

I don't raise this to join in the rumble against Glenn. I am a fan of Seattle. My partners at August Capital have funded some great companies in Seattle, not the least of which is Microsoft. But I do want to take issue with one of Glenn's criticisms of the Bay Area. Glenn refers in a number of different ways to the obsessiveness of the Bay Area and suggests that the Bay Area's "monomania" is somehow a detriment to company building. I have to disagree. I love the obsessiveness of the Bay Area. It is the drug that fuels the Bay Area's startup economy. And it is the drug that fuels my every day as a tech investor. I love the fact that I can talk about entrepreneurship at AYSO. I love the fact that I can have conference calls with my CEO's at 1am. I love the fact that wildly successful entrepreneurs who could retire for life dive into their next venture within six months of leaving their last. I love the fact that Palo Alto's newest yogurt shop is a hotbed of tech recruiting. I love the fact that I funded a company after bumping into them at a local coffee shop. I love the fact that school auctions include items like "a tour of Facebook" and "10 hours with a trademark attorney" and "company logo design." Is it obsessive? You bet. Is it good for business? You bet.

To tell you the truth, I don't actually think that the obsessiveness of successful startups in the Bay Area is any different from that of successful startups in Seattle. I happen to know that Glenn himself is completely obsessed with entrepreneurship and building Redfin into the next great company. What is unique about the Bay Area is the pervasiveness of that obsession. It is everywhere you go. And I don't think that's a bug. I think it's a feature.

02/15/2008 in Entrepreneurial Success | Permalink

Comments

You can follow this conversation by subscribing to the comment feed for this post.

Life in the valley integrates work, play, learning, and inspiration. Which is the way it should be. From Re-Creating the Corporation by Russell Ackoff:

"During the Renaissance, when everything, including life itself, was subjected to analysis, life itself was disassembled into what were considered fundamental but independent activities: work, play, learning, and inspiration.

"Institutions were created in which each activity could be carried out independently. Factories were designed for work, not play, learning, or inspiration. Theaters and arenas were designed for play, not work, learning, or inspiration. Schools were designed for learning, not work, play, or inspiration. Museums and churches were designed to provide inspiration, not for work, play, or learning.

"However, the transformation to systemic thinking has brought with it a growing awareness of the fact that the effectiveness with which any of these activities can be carried out depends on the extent to which they are integrated. Therefore, it has become apparent that a transformational leader must be able to integrate the various aspects of life in order to effectively pursue development. The transformational leader is one who can create an organization that reunifies life, who integrates work, play, learning, and inspiration."

Posted by: nivi.wordpress.com | 02/16/2008 at 07:21 AM

Great post, David!

"I love the obsessiveness of the Bay Area. It is the drug that fuels the Bay Area's startup economy. And it is the drug that fuels my every day as a tech investor...I love the fact that I can have conference calls with my CEO's at 1am. I love the fact that wildly successful entrepreneurs who could retire for life dive into their next venture within six months of leaving their last. I love the fact that Palo Alto's newest yogurt shop is a hotbed of tech recruiting...Is it obsessive? You bet. Is it good for business? You bet."

The valley seems like an awesome place to live. I have dreams about living in the Bay Area. I am really look forward to experiencing this "feature" that no other city has for a week or two this summer.

Posted by: Cory | 02/16/2008 at 07:52 AM

Great read. I'm still quite far from being there, but I can't wait to smell some of the air that fills Bay Area. Thank you for the wonderful post.

Posted by: dotty.org | 02/16/2008 at 08:05 AM

[From the author of the post David discusses]

Hi David, excellent essay, but as I pointed out earlier in a follow-up post (http://blog.redfin.com/blog/2008/02/rambo_meet_silicon_valley.html} and in a comment on Michael's post, I think Michael and now you are mostly inventing an argument with me when we agree.
For example, I agree with you wholeheartedly that the Valley's monomania is a feature not a bug. And I say as much in the essay in you dispute: the paragraph immediately preceding the one you cite describes desperately *hoping* to meet another Seattleite with a single-minded focus on building startups, not raising a family or having a balanced lifestyle.

What I like best about the Valley is its refusal to grow up and be reasonable. One reason we met was because I had heard of your willingness to take 1 a.m. telephone calls when the grown-up response would be to hang up and go back to sleep. You can say it was a blunder to refer to behavior like this as "pubescent" -- because that word is usually derogatory -- but the intent clearly wasn't to be derogatory. I was trying to be colorful about what I love about the Valley, just as you were when embracing the Valley's "monomania."

In a similar vein, I was not "badmouthing" Silicon Valley when I said the Valley is a "heartless amnesiac." I love the way the Valley reinvents itself, and discussed the phenomenon at length. The immediately preceding paragraph had recorded my dismay at constantly being asked where I went to high school rather than what I was doing next.

If there was any doubt that I approved of the Valley's monomania and self-cannibalization it would be dispelled in the paragraph immediately following my discussion of these two traits, in which I say "this is not to say that Seattle is all bad for entrepreneurs, only that the ways in which it is good only show how different it is compared to Silicon Valley."

Here is perhaps where we still disagree, that Seattle also has some advantages of its own. While I have made it clear that Silicon Valley's advantages are "massive" and that "Silicon Valley is generally better for startups than anywhere else, that doesn't mean that we have to agree... that Silicon Valley is always better, or better in every way."

The two benefits of Seattle that I outline are its nurturing climate, which has helped me find my way as a first-time CEO, and its openness to combining new and old business models, which we have experienced firsthand when building Redfin.

You say I didn't cite "a single concrete example" to support my notion of Seattle's advantages, when really that example was Redfin. It is the nature of Redfin's blog to focus mostly on our personal experiences, and I concede that it is a weakness of the essay to draw board conclusions from those experiences. I was trying to describe what I have missed about Silicon Valley, but also what I have found to appreciate about Seattle.

Next time, I will write more clearly in praising or criticizing the Valley, particularly since my perspective is now resented as that of an outsider (Redfin has a large San Francisco office which I work out of twice a month), but I don't think the problem was that I wasn't "thoughtful." The essay took me weeks to write because I had such strong feelings for the Valley I left behind, and it has been such an emotional journey to appreciate Seattle for what it offers that is different and, I still hope, advantageous.

Regards, Glenn

Posted by: glenn_kelman | 02/17/2008 at 01:13 PM

Glenn --

Thanks so much for not just saying "read my post, you idiot." I clearly keyed on only the provocative words. I too hope that my post isn't misread. I think that there are a pile of like-minded folks up in Seattle who are sufficiently obsessive and optimistic to make great entrepreneurs. You and Redfin are excellent examples of that. As are the folks at Inrix, one of our portfolio companies up your way (and iLike and Zillow and Farecast...). I think that there are pockets of entrepreneurial zeal throughout the country, with greater or lesser degrees of concentration. I look forward to meeting with many more great Seattle entrepreneurs in the years to come and hope you'll come back again if you're ever raising more money.

DAVID

Posted by: davidhornik | 02/17/2008 at 01:44 PM

Great post!
I recall my first week in the bay area way back in '94 - three pre-office breakfast get togethers with startups, including one on sunday, meeting a bunch of tech junkies while playing ultimate frisbee in Berkeley, and seeing at least a half dozen 'garage companies' working on the Newton, Java, or Mozilla based technologies.
After that one week, I knew I had to be there!
Hopefully, I'll make my way back there soon!

Rahim

Posted by: https://me.yahoo.com/a/CfSV_lkAw4ZCmIL2ya6fnn.8Kw5EsBmX#e2482 | 01/27/2009 at 03:15 PM

Gucci is a famous brand in the world , and is originate from Italy and create by Guccio Gucci. He is a famous designer. His products are popular with most of people . His design are originality and natural. Gucci bags and Gucci outlet are also popular and elegant. You can search for our website : http://www.gucciusaoutlet.com.

Posted by: Gucci handbags | 08/09/2010 at 08:25 PM

thanks for this valuable information. is what I was looking
and has served me much. Greetings!I really wasn't sure how it would feel once I put it on, but I was very pleased with this product. I can't wait for the weather to cool down a bit so I take for you,link my name firstly now!

Posted by: Retro Jordan | 10/17/2010 at 09:04 PM

a haha. this is too much fun.

Posted by: ugg store | 11/05/2010 at 11:27 PM

I did not discuss that particular issue!!

Posted by: moncler jackets | 11/15/2010 at 07:09 PM

I did not discuss that particular issue!!

Posted by: moncler jackets | 11/15/2010 at 07:13 PM

Thanks That's a good idea. I like your new blog design!

Posted by: air max shoes | 12/05/2010 at 05:44 PM

very happy to read your blog.
Thanks for sharing this nice post.I will keep your article in my idea.

Posted by: Oakley Sunglasses | 01/05/2011 at 06:41 PM

DEKARONデカロン-RMT of a site.rmt ff11 The cost of a site would be how much it costs to run it. The worth of a site is determined mainly by how much revenue the site is bringing in.信長の野望Online RMT Other factors would include how much traffic the site is bringing in on a monthly basis, email subscribers if any,アラド戦記 rmt rmt ドラゴンネストメイプルストーリー RMT アラド戦記 rmt rmt アラド rmt ff11 信長の野望Online RMT 大航海時代-RMT DEKARONデカロン-RMT

Posted by: DEKARONデカロン-RMT | 01/19/2011 at 06:41 PM

All sentences are about something or anyone. The something or another person that the sentence is about is known as the topic with the sentence. Out of your blog, I see that, and review one thing I'd like. Thanks for sharing.

Posted by: Nike Air | 03/03/2011 at 10:10 PM

I also think so,Do you think the best in the webnet too? there were a good web for, you don't like, Never mind, much more:if you like, you can see

Posted by: Jeremy Scott | 05/10/2011 at 02:29 AM

Never done in the article comments, this is my first network comments, appreciate you sharing. Very good article

Posted by: Brand Bikinis | 05/12/2011 at 11:34 PM

Good ! very good!

Posted by: Christian Louboutin Outlet | 05/12/2011 at 11:37 PM

I remember a few years ago when you could get a steal on a used car. Pretty amazing how fast the market changes, thanks for the info.

Posted by: Asics Tiger | 05/18/2011 at 05:58 PM

Any pictures? Would love a house with that much land...oh and I've just noticed its quite an old post. Is it still available?

Posted by: MBT Shoes | 05/18/2011 at 06:00 PM

I don't feel up to that.

Posted by: Supra Shoes | 05/24/2011 at 12:51 AM

This information is really good and I will say will always be helpful if we try it risk free. So if you can back it up.

Posted by: Loubouin Shoes | 06/02/2011 at 12:31 AM

I think it might be safe to say that the hatch is about one body-length above the ground. From that assumption, I put the hatch at roughly two feet wide.

Posted by: Nike Free Shoes | 06/02/2011 at 12:34 AM

http://gurjeetguri.blogspot.com

Posted by: gurI | 06/29/2011 at 12:07 AM

Superb article mate but how do get your rss feed? Please sending us an e-mail with instructions?

Posted by: buy email lists | 06/29/2011 at 11:35 PM

Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

Posted by: GHD Iron | 07/06/2011 at 06:47 AM

i come here first time. You can share some of your article, I'm like you write something, really very good! I will continue to focus on

Posted by: Polo Outlet | 07/13/2011 at 08:19 PM

The nomination of the winner depends on the capability and spirit of the personality to finish the race.I like the post very much as it contain informative in knowledge.I like pics of Chelsea shares of the beauty of running in Madison, Wisconsin.I want to congratulate the winner for the nomination race.I want to know suggestion from others.

Posted by: Nike Free Shoes | 07/13/2011 at 08:24 PM

Only an injunction)0f the lessening Can avoid that problem． Defendant： 1)Our name accurately reflected the first BaFfle of the owner of the store．andwe used the word“secret”as a kind of inside ioke because we wanted to keep the new business a secret from a former boss at a competing store．

Posted by: Cheap Onitsuka Tiger | 07/13/2011 at 08:28 PM

Comfortably, the article is in reality the best on this valuable topic. I har monise with your North face and will thirstily look forward to your coming updates. Just saying thanks will not just , for the wonderful clarity in your writing. I will instantly North face outlet grab your rss feed to stay privy of any updates. Fabulous work and much success in your business dealings!

Posted by: christian louboutin sale | 07/14/2011 at 11:21 PM

bel post, ci sono molte persone alla ricerca di che ora troveranno risorse sufficienti dal postThis è veramente interessante, Sei un blogger molto abile. Mi sono iscritto il tuo feed e sono ansioso di cercare di più del tuo post meraviglioso. Inoltre, ho condiviso il vostro sito nel mio social network!

Posted by: Kamagra | 07/25/2011 at 06:57 AM

Thanks for your great post.I gonna be back definitely to check the new.
It is great that something interesting here could be found.Excellent work!

Posted by: ken griffey shoes | 08/01/2011 at 08:24 PM

Hey This is some great thing never tought of it like that

Posted by: hospital plan | 08/02/2011 at 04:15 AM

great advice and discussing,I will get this amazing for me .thank you!...

Posted by: sublingual hcg | 08/04/2011 at 02:48 AM

Your fresh take in this material has a lot of thought-provoking ideas that really took me by surprise. I share your thoughts on many points. You really made me think.

Posted by: Tommy Mens Sweaters | 08/09/2011 at 04:18 AM

"The temperature is rising and the girls here are looking extra-hot in swimsuits and bikinis: stripes, spots, florals, fringing and cut-out - you name it, they have it!"

Posted by: Herve Leger Dress | 08/09/2011 at 06:22 AM

Hey This is some great thing never tought that it could work like that, good job!

Posted by: auto movers | 08/09/2011 at 11:49 PM

Pervert! Let's get out of here. There are so many perverts here.So what? You are such a bad person Who's gonna like you? Tiffany Jewelry Don't mind him. Don't mind him. He's just playing. Forget him. He saw me steal the diamond. Tiffany Jewelry You're dreaming! In your dreams. Wake up and smell the coffee.Where'd you get it!Good idea.Think it over.You can never tell about this sort of thing.Take a closer l Wake up and smell the coffee.Where'd you get it!Good idea.Think it over.You can never tell about this sort of thing.Take a closer look.When did I say that!You have to be on time. Don't be late. ook.When did I say that!You have to be on time. Don't be late.

Posted by: Cheap True Religion Jeans | 08/11/2011 at 12:05 AM

I have been to your site before. It’s Great! IMHO you have a nice port

Posted by: Printers Carrollton TX | 08/11/2011 at 02:20 AM

Hello, my group is just establishing our first website, searching and working out what is needed. This blog stuck out right away. I'm fired up about this, and adore the design of your site. Are you able to let me know what "theme" it is?

Posted by: Naples Movers | 08/12/2011 at 12:04 AM

This is a good posting, I was wondering if I could use this write-up on my website, I will link it back to your website though. If this is a problem please let me know and I will take it down right away

Posted by: AZ medical marijuana doctor | 08/13/2011 at 09:05 AM

Posted by: Family law Lawyers San Diego | 08/15/2011 at 02:38 AM

I tried to simply turn the front wheel via the handlebars in the direction I wanted to make such a 90 degree turn, while traveling a straight path. I noticed that I soon as a turned the handlebars even slightly I f

Posted by: handbags online | 08/17/2011 at 11:38 PM

Great entrepreneurs are everywhere and great dispute also. People wants to achieve more and more and don`t care about the consequence.

Posted by: olympic london accommodations | 08/24/2011 at 04:34 AM

I have also used them as running shoes a little. Obviously this is not a running shoe, but they works OK for that as well. I rarely can recommend a product as much as these shoes. You will find more expensive ones, but I doubt you'll find better quality.

Posted by: cheapest football boots | 08/25/2011 at 12:53 AM

Very happy to see your article, I very much to like and agree with your point of view. Have a good time.

Posted by: oil expellers | 08/30/2011 at 12:00 AM

great advice and discussing,I will get this amazing for me .thank you!...

http://www.condominia.ca

Posted by: natural male enhancement | 09/02/2011 at 11:00 PM

Long but very unique and unseen. most points in this article are i never seen before.Its helps me in my field to polish different points in which I feel steel weak.

Posted by: Pellet Mill Plant | 09/05/2011 at 01:03 AM

The economy weak and the public seething, President Barack Obama is expected to propose $300 billion in tax cuts and federal spending Thursday night to get Americans working again. Republicans offered Tuesday to compromise with him on jobs — but also assailed his plans in advance of his prime-time speech.In effect, Obama will be hitting cleanup on a shortened holiday week, with Republican White House contender Mitt Romney releasing his jobs proposals on Tuesday and front-running Texas Gov. Rick Perry hoping to join his presidential rivals Wednesday evening on a nationally televised debate stage for the first time.

Posted by: rolex daytona | 09/07/2011 at 01:03 AM

A good post indeed! That’s the sunny side of your writing, you write in a lucid manner and I have no difficulty to understand what you have said, even though I am a novice. Keep the good work going by continue blogging new and entertaining posts. I have already subscribed to the RSS feed of your weblog and look forward to reading more of your blog posts in the future.

http://www.nyccosmeticdermatology.com

Posted by: car rental miami | 09/07/2011 at 10:34 PM

Just found this blog. excellent article. how long have you been writing? this is good writing. are you a journalist aswell? anyway, thanks again. subscribing to the rss :)

http://www.onlineimage.net/

Posted by: x ray technician requirements | 09/14/2011 at 10:45 AM