4 ms·
Both of the companies cited as examples early on the the article, Microsoft and Apple were basically started by a couple of guys in a garage (or dorm room). VC
by UncleOxidant 4y ago
Both of the companies cited as examples early on the the article, Microsoft and Apple were basically started by a couple of guys in a garage (or dorm room). VC wasn't involved until later stages. Probably most of their early funding came from parents. There are plenty of things that don't need VC funding to get going - they can either be self-funded or with loans from relatives in the early stages. At some point the decision can be made as to whether VC is needed to expand or if it's just fine to stay small.
In the 90s my wife worked at a software company that makes scientific imaging software. They have a nice niche and continue to sell their software into academic and research labs. They never had more than about 7 employees - now about 5. It's a decent business that never needed VC funding and has gone for about 30 years now.
- dopeboy 4y ago> Probably most of their early funding came from parents. Perhaps VC is an equalizer here. It makes it possible for founders (like me) to start the next Microsoft without having to rely on privilege. I understand allocation of VC resources has its own privilege issues but I'll take that slightly more accessible world over a world where your family determines the outcome.
- UncleOxidant 4y agoRich parents helped in the Microsoft case, but I don't think that was the case for Apple where the parents of both Jobs and Wozniak were middle class.
- Centigonal 4y agoApple had Mark Markkula and Don Valentine, now-legendary VCs, investing at or near the company's incorporation (this is 8 months after Jobs and Woz started working together and after they had released the Apple I, funded by Jobs and Woz's personal funds).
- ioblomov 4y agoExactly. But then most of the Valley was founded this way. The historical precedent was set in 1957 by Fairchild Semiconductor, the engineer founders of which went on to found other companies (Intel) or VC firms (Kleiner Perkins). https://en.wikipedia.org/wiki/Fairchild_Semiconductor https://en.wikipedia.org/wiki/Fairchild_Semiconductor Edit: HP started earlier in 1939, but was bootstrapped and didn’t do silicon till much later.
- intrasight 4y agoIn the 90s my wife also worked at a software company that makes scientific imaging software - with about that many people. Weird.
- prettyStandard 4y agoThere's an opportunity for a joke here I just can't find it. Something something double lives. /s I give up.
- prettyStandard 4y agoI deserve these downvotes.
- pineaux 4y agoSomething something dark side
- intrasight 4y agoI had to go look it up. It was OriginLab in Northampton, MA.
- ido 4y agoI used your wife's software in the early 2000s!
- scarface74 4y agoJust to add on, Microsoft never actually needed VC money if I remember correctly. Gates got VC funding more for the connections than needing the money.
- nicbou 4y agoI guess you never learn about most of those companies because they chug along quietly, allowing a few people a decent but not lavish life.