A Quote by Neil Blumenthal
All companies - and not just startups - face the same eternal challenge: resource allocation.
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Companies that acquire startups for their intellectual property, teams, or product lines are acquiring startups that are searching for a business model. If they acquire later stage companies who already have users/customers and/or a predictable revenue stream, they are acquiring companies that are executing.
Before, companies and startups had to lay up all this capital for data centers and servers, and take your scarce resource, which in most companies is engineers, and have them work on the undifferentiated heavy lifting of infrastructure. What the cloud has done is completely flipped that model on its head so that you only pay for what you consume.
I have started or run several companies and spent time with dozens of entrepreneurs over the years. Virtually none of them, in my experience, made meaningful personnel or resource-allocation decisions based on incentives or policies.
Startups are companies that are still in the process of searching for a business model. Ventures that are further along and executing their business models are no longer startups; they are early-stage companies.
The resource allocation task of top management has received too much attention when compared to the task of resource leverage.
I think the rise of A.I. is bigger than the rise of mobile. Large companies are sometimes as worried about startups as startups are about large companies. Ultimately, it will be about who delivers the best service or product.
It's been invigorating being back on the West Coast, being at Alphabet, because there is so much innovation. And the big challenge is, how do you think about resource allocation and priorities when you have so many great options? But wearing jeans instead of suits and popping into driverless cars has also been a lot of fun.
Now, we are seeing many of these same companies face the truth about their financial standing. Congress is faced with the challenge of reforming our accounting industry and holding corporate executives responsible for their actions.
In the same way that slavery was a moral challenge for the 19th century and totalitarianism was a challenge for the 20th century, the challenge that women and girls face around the world is the moral challenge of our time.
The lens of contract focuses predominantly on gains from trade whereas orthodoxy is focused on resource allocation.
What looks like resistance in many cases is rational responses to incentives and ingrained resource-allocation processes.
Baidu and Google are great companies, but there are a lot of things you can do outside them. Just as electricity and the Internet transformed the world, I think the rise of modern A.I. technology will create a lot of opportunities both for new startups and for incumbent companies to transform.
Our tenants now are companies like Uber, the taxi service, Meituan.com, China's version of Groupon - and a large number of startups. These companies operate in a modern way, just like their customers: They go on the Internet, look for an offer and take it.
Like many countries, Indonesia can transform its decision-making system to be more transparent and inclusive, particularly on resource allocation and use.
In the face of uncertainty, many companies will default to asking their innovators to study and analyze, which can't actually ever provide a definitive answer. The decision-making systems here are meant to deal with the reality that decisions about innovative ideas will rely on patterns and intuitions. The best venture capital organizations deal with this challenge by staging investment, actively participating in startups they fund, tying decisions to learning as opposed to artificial dates on the calendar, and assembling a diverse team of decision-makers.
Big companies are looking closer term, and even the most technological companies spend less than 1% of sales on research. Startups have suffered the burst bubble.
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