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June 2010




           The history of
       Silicon Valley




F.C.
Silicon Valley

   Where is it?
   How It All Started
   The Park
   The Silicon
   The Internet Valley
   Where technology emerges
   Today
   The Future


                               2
Where is it?




               3
How it all started



 Stanford University
• 1891, Leland Stanford
• Hired faculty members from the East Coast
• But no jobs for graduates




                                              4
How it all started



 Stanford University
• 1891, Leland Stanford
• Hired faculty members from the East Coast
• But no jobs for graduates
 Prof. Frederick Terman
• Father of the Silicon Valley
• Encourages students to start
  companies near Stanford



                                              4
How it all started

 H&P
• 1937
• Started in a garage
• With the help of Terman
• 1939, 1st deal with Walt Disney
• 2010, $115B annual revenue (9th)




                                     5
How it all started

 Varian Associates
• 1937
• Research on radars, microwave
• Lab and some money from Stanford University
• Good investment




                                                6
The Park



 Stanford Industrial Park
• 50s, Stanford needs money
• 3240 hectares of unused land
• Leased to High Tech companies
• Varian, GE, Kodak, etc
• Defense contracts (public)
• Lockheed, IBM, NASA



                                  7
The silicon



 The silicon in Silicon Valley
• 1955, William Shockley invents the transistor
• 1958, 8 Engineers found Fairchild
• Invention of the integrated circuit
• Fairchild becomes a huge firm
• Spin-offs: Intel, Signetics (Phillips), AMD, etc




                                                     8
The silicon


 The PC revolution
• 1973, Introduction of the CPU by Intel
• Massive production of “chips”
• Homebrew Computer Club
• You can have a computer at home
• 1976, Apple Computer (Wozniak, Jobs)
• 1982, IBM PC with Microsoft DOS
• 80s, expansion of microcomputers




                                           9
The Internet Valley


 80-90s, semiconductor crisis
• International competition (Japan)
• Competition inside the USA (Texas)
• Government expenses drastically lowered

   1980, ARPANET
   1989, WWW, first browser
   Exponential growth




                                            10
The Internet Valley



  90s, Internet startups
 • cheap, high return
 Venture Capitalists

 • Offices on Sand Hill Road
 • Dot com boom, lot of money, IPOs
 2000, dot com bubble

 • Market value >> Real value
 • Bubble bursts



                                      11
Where technology emerges



                       Computer science
                       Electronics
                       Bio-technology
                       Sustainable energy
                       etc




                                     12
Today



  Web 2.0 boom
• Social Networks
Facebook, Twitter, Foursquare
• User generated content, etc
Youtube, Flickr, etc

   A new bubble?




                                13
Today




 Still “the place to be”
• Huge culture of technology
• Great entrepreneur networks
• Seed-money is easy to get
• You can fail and try a new idea




                                    14
The Future


  NYC
 • Growing community of tech entrepreneurs
 Europe

 • Higher investments in tech companies
 India

 • A lot of talented engineers who need little money

 The Silicon Valley state of mind is spreading
 worldwide



                                                  15
Bibliography


 Wikipedia
• http://en.wikipedia.org/wiki/Silicon_Valley
• All the pictures used in this presentation

 Net Valley
• http://www.netvalley.com/archives/mirrors/
  london_svhistory.htm

   Google Maps



                                                16
Interesting readings


 Founders at Work by Jessica Livingston
• Stories of startups’ early days

 Mastering the VC Game by Jeffrey Bussgang
• How to get from startup to IPO

 Making Ideas Happen by Scott Belsky
• Overcoming the obstacles between vision and reality




                                              17
Q&A


      18

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The History of Silicon Valley

  • 1. June 2010 The history of Silicon Valley F.C.
  • 2. Silicon Valley  Where is it?  How It All Started  The Park  The Silicon  The Internet Valley  Where technology emerges  Today  The Future 2
  • 4. How it all started  Stanford University • 1891, Leland Stanford • Hired faculty members from the East Coast • But no jobs for graduates 4
  • 5. How it all started  Stanford University • 1891, Leland Stanford • Hired faculty members from the East Coast • But no jobs for graduates  Prof. Frederick Terman • Father of the Silicon Valley • Encourages students to start companies near Stanford 4
  • 6. How it all started  H&P • 1937 • Started in a garage • With the help of Terman • 1939, 1st deal with Walt Disney • 2010, $115B annual revenue (9th) 5
  • 7. How it all started  Varian Associates • 1937 • Research on radars, microwave • Lab and some money from Stanford University • Good investment 6
  • 8. The Park  Stanford Industrial Park • 50s, Stanford needs money • 3240 hectares of unused land • Leased to High Tech companies • Varian, GE, Kodak, etc • Defense contracts (public) • Lockheed, IBM, NASA 7
  • 9. The silicon  The silicon in Silicon Valley • 1955, William Shockley invents the transistor • 1958, 8 Engineers found Fairchild • Invention of the integrated circuit • Fairchild becomes a huge firm • Spin-offs: Intel, Signetics (Phillips), AMD, etc 8
  • 10. The silicon  The PC revolution • 1973, Introduction of the CPU by Intel • Massive production of “chips” • Homebrew Computer Club • You can have a computer at home • 1976, Apple Computer (Wozniak, Jobs) • 1982, IBM PC with Microsoft DOS • 80s, expansion of microcomputers 9
  • 11. The Internet Valley  80-90s, semiconductor crisis • International competition (Japan) • Competition inside the USA (Texas) • Government expenses drastically lowered  1980, ARPANET  1989, WWW, first browser  Exponential growth 10
  • 12. The Internet Valley  90s, Internet startups • cheap, high return  Venture Capitalists • Offices on Sand Hill Road • Dot com boom, lot of money, IPOs  2000, dot com bubble • Market value >> Real value • Bubble bursts 11
  • 13. Where technology emerges  Computer science  Electronics  Bio-technology  Sustainable energy  etc 12
  • 14. Today  Web 2.0 boom • Social Networks Facebook, Twitter, Foursquare • User generated content, etc Youtube, Flickr, etc  A new bubble? 13
  • 15. Today  Still “the place to be” • Huge culture of technology • Great entrepreneur networks • Seed-money is easy to get • You can fail and try a new idea 14
  • 16. The Future  NYC • Growing community of tech entrepreneurs  Europe • Higher investments in tech companies  India • A lot of talented engineers who need little money  The Silicon Valley state of mind is spreading worldwide 15
  • 17. Bibliography  Wikipedia • http://en.wikipedia.org/wiki/Silicon_Valley • All the pictures used in this presentation  Net Valley • http://www.netvalley.com/archives/mirrors/ london_svhistory.htm  Google Maps 16
  • 18. Interesting readings  Founders at Work by Jessica Livingston • Stories of startups’ early days  Mastering the VC Game by Jeffrey Bussgang • How to get from startup to IPO  Making Ideas Happen by Scott Belsky • Overcoming the obstacles between vision and reality 17
  • 19. Q&A 18