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Entrepreneurship is the call of the l990s. This is particularly the case in high technology, where
our society continues to place more feverish demands on American ingenuity for improvement
and innovation in the products and services that surround our lives. Everyone looks to create the
fastest chip, the lightest laptop, and the most powerful software. There is no limit to the
technological advances realized with every new product introduced, which is exactly why there
has never been a better time to consider an entrepreneurial venture.
It is hard to escape the image of entrepreneurial success in today’s media-conscious
environment. Multi-billionaire founder Bill Gates of Microsoft has appeared repeatedly on the
covers of business magazines. Entrepreneur Ross Perot reaches out to be the president of the
United States. Successful entrepreneurs are ubiquitous at a time when loyalty to Fortune 500
companies continues to diminish amid the trend of layoffs and reorganization. When you
consider that the overwhelming majority of new jobs created this decade will come from start-up
companies, a high-tech business venture seems a reasonable, if not downright admirable,
proposition.
As the president and chief executive officer of Silicon Valley Bank, I have met with thousands of
ambitious entrepreneurs from every walk of life. I am very proud to have provided guidance and
assistance to many of these individuals, many of whose companies are now quite successful.
What do these successful individuals all have in common with each other?
You will not find it surprising when I tell you that these individuals all share the same trait:
motivation. Not motivation for wealth, money, or power, though. Rather, the more successful
people are those who desperately want and seek out autonomy and challenge. They want to
use their drive, skills, and hard work to turn an idea or a dream into a company. Start-up
entrepreneurs have a special passion for life and view each new workday as a new challenge.
Of course, I know my generalities cannot assimilate life in a high-tech start-up, but I believe
Starting a High-Tech Company delivers the important information and sage advice those of
you considering a high-tech venture need in order to make informed decisions on how to
proceed.
Many entrepreneurs who want to start a venture do not know where to begin or what to expect.
In this book, classic formulas for success are laid out in no-nonsense terms. Life in a start-up is
described vividly, and real-world anecdotes detail both failures and successes. Valuable advice is
presented for creating wealth using founder’s stock and stock options, which are topics not
always familiar to technically oriented entrepreneurs. While the book specifically addresses the
high-tech entrepreneur, those considering employment at a start-up will find it helpful in
understanding the dynamics involved in working in that environment.
In the investment community, we see higher quality start-ups today than in the 1980s.
Competition for venture funding is intense and global. Successful companies plan from day one
to attract syndicates of investors who will carry the company from the concept stage through an
initial public offering or acquisition by a larger, usually public, company. Many start-ups
establish early strategic partnering relationships with customers, suppliers, and governments
worldwide. Those companies that are well planned, are created by strong teams, and offer
proprietary technology that plays into growing and targeted markets can obtain funding. With
