The document provides a summary of the history of Silicon Valley and the factors that contributed to its emergence as a major hub of innovation. It discusses several key events and individuals:
1) Frederick Terman's role as Stanford professor and provost in encouraging collaboration between academia and industry, including supporting HP's founding.
2) Stanford's focus on electronics during WWII and the Cold War, bringing defense funding and spinouts like Varian Associates.
3) William Shockley founding Shockley Semiconductor which led to the "Traitorous 8" founding Fairchild Semiconductor and initiating the chip industry.
4) The rise of venture capital firms like Draper Gaither & Anderson and later Kleiner Per
4. Internet PersonalComputers IntegratedCircuits FruitOrchards FruitOrchards FruitOrchards The Popular View of Silicon Valley History Marc Andreessen Steve Jobs Moore/Noyce Hewlett & Packard Innovation Networks 1910 1960 1970 1980 2000 1990 1930 1940 1950 1920
5. Internet PersonalComputers IntegratedCircuits Microwaves/Defense TestEquipment VacuumTubes The Real Story of Silicon Valley History Venture Capital Innovation Networks 1910 1960 1970 1980 2000 1990 1930 1940 1950 1920
11. Flew at 15 - 25 thousand feetStrategic Bombing of Germany The Combined Bomber Offensive British bombed at Night Area Bombing Lancaster's Halifax Flew at 7 - 17 thousand feet
12. Math ChallengeFor every 100 bombers on a mission 4 - 20% would not return Crews had to fly 25 mission to go home
13. Story 2: The Electronic Shield – Electronic Warfare
14. Harvard Radio Research Lab (RRL) Signals Intelligence and Electronic Warfare Reduce losses to fighters and flak Find/understand German Air Defense Electronic and Signals Intelligence Jam/confuse German Air Defense Radar Order of Battle Chaff Jammers Top Secret 800 person lab
15. Electronically Blind German RadarJam the Radars with Noise MANDREL Jammer Put Jammers on Airplanes Jam and shut down Early Warning Radars Anti-aircraft Radars Fighter Radars Ground Control Radars Built over 30,000 jammers DINA Jammer
16. Who Ran this Secret Lab and became the Father of Electronic Warfare? Harvard Radio Research Lab Ran all electronic warfare in WWII 800 people Director: Fredrick Terman - Stanford
17. Fredrick Terman“the Father of Silicon Valley” Stanford Professor of engineering 1926 encouraged his students, William Hewlett and David Packard to start a company Dean of Engineering 1946 Provost 1955
19. WWII Office of Scientific Research and Development (OSRD) $450 million spent on weapons R&D MIT $117 million Caltech $83 million Harvard and Columbia ~ $30 million Stanford ~ $50K
20. Terman’s PostwarStrategy Focus on microwaves and electronics Not going to be left out of gov’t $’s this time Recruits 11 members of war lab as faculty By 1950 Stanford was the MIT of the West Students came from all over the U.S.
22. The Cold War and Stanford The Cold War battlefield moves 500 miles east Countermeasures, ELINT become critical Stanford becomes a center of excellence for the CIA, NSA, Navy, Air Force 400-person weapons lab in engineering department
23. Lockheed Comes to Town - 1956 Polaris missile SLBM Built by Lockheed Missiles Division in Sunnyvale 20,000 employees by 1960 From 0 in 4 years HP: 3,000 employees 1960
24. Stanford Spinouts - Military Systems Sylvania Electronics Defense Laboratory (1953) GE Microwave Laboratory (1956) Granger Associates (1956) Applied Technology (1959) Electronic Systems Laboratories (ESL) (1964) Argo Systems (1969) Advent Systems (1972)
25. Terman Changes the Startup/University RulesSilicon Valley as We Know it Starts Here Graduate students encouraged to start companies Professors encouraged to consult for companies Terman and other professors take board seats Technology transfer/IP licensing easy Getting out in the real world was good for your academic career Failure was accepted as part of the culture
26. Entrepreneurs WeaponsFinance Crisis Profit Motivation Customer Development Mgmt Tools Agile Development Business ModelDesign Design Thinking Stanford and the Cold War Silicon Valley’s 1st Wave Risk Taking Culture Entrepreneurial Outward-Facing Tech Universities Free flow of People/Info Infrastructure 24/7 Utilities Predictable Economic System Stable Legal System Research Universities
27. Story 4: 1956 - The Year it Becomes Silicon Valley
28. Meanwhile, on the Other Side of Town… The Head of Radar Bombing training for Air Force starts a Company
29. Internet PersonalComputers IntegratedCircuits Microwaves/Defense TestEquipment VacuumTubes The Real Story of Silicon Valley History Venture Capital Innovation Networks 1910 1960 1970 1980 2000 1990 1930 1940 1950 1920
30. William Shockley“The Other Father of Silicon Valley” Director of Navy anti-submarine warfare Head of Radar Bombing training for Air Force Co-inventor of the transistor Nobel Prize in 1956 Founded Shockley Semiconductor 1956
31. William Shockley“Great Researcher, Awesome Talent Spotter, Horrible Manager” Unintended consequences: “The traitorous 8” leave Shockley found Fairchild Semiconductor 1st VC-backed startup Noyce & Moore leave Fairchild to start Intel 65 other chip companies in the next 20 years
34. Internet PersonalComputers IntegratedCircuits Microwaves/Defense TestEquipment VacuumTubes The Real Story of Silicon Valley History Venture Capital Innovation Networks 1910 1960 1970 1980 2000 1990 1930 1940 1950 1920
35. The Rise of Risk CapitalFamily Money 1940’s - 1960’s J.H. Whitney 1st family office 1946 Laurance Rockefeller Draper Gaither & Anderson (1st limited Partnership) 1958 Spun out as Venrock in 1969 Bessemer East Coast focus Wide variety of industries
36. The Valley Attracts Financial AttentionThe 1st West Coast IPO’s 1956 Varian 1957 Hewlett Packard 1958 Ampex
37. The Rise of Risk CapitalSBIC Act of 1958 Cold war program – Sputnik motivated Gov’tmatch of private investments 3:1 700 SBIC funds by 1965 75% of all VC funding in 1968 7% in 1988 Replaced by the Limited Partnership
46. Companies Get Educated Gov’t charted companies ~1600’s Modern corporations ~1800’s Business Schools to educate corporate execs Organize body of knowledge First Harvard MBA – 1908
47. Startups Get Educated Every company began as a startup Modern startups ~ 1950’s Venture funded startups ~1970’s Entrepreneurship Schools to educate founders Organize body of knowledge Emerging now
48. Wait a Minute…Aren’t Startups Small Versions of Large Companies? 50 Years of Experience Says NO
49. Story 7:Not All Startups Are Equal Small Business Scalable Startups Large Company Innovation
128. What Is a Business Model? Diagram of flows between company and customers Scorecard of hypotheses testing Rapid change with each iteration and pivot Founder-driven * Alex Osterwalder
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150. Product Development Concept/Bus. Plan Product Dev. Alpha/Beta Test Launch/1st Ship CustomerDevelopment Company Building CustomerDiscovery CustomerValidation Customer Creation Customer Development Pivot
151. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Continuous Discovery Done by founders
237. Entrepreneurs Angel / VentureFinance Crisis Profit Motivation Customer Development Mgmt Tools Agile Development Business ModelDesign Design Thinking Where is Chile? Risk Taking Culture Entrepreneurial Outward-Facing Tech Universities Free flow of People/Info Infrastructure 24/7 Utilities Predictable Economic System Stable Legal System Research Universities
238. Lessons Learned Culture needs to support and encourage risk Failure is integral to the startup process Technology hubs must be magnets for engineers But they cluster around industry specialties In what area will Chile build a world-class hub? E-School reduces early stage startup risk Healthy Venture Capital industry = large profits Chilean market not large enough Teach startups how to go global early