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In his IPO letter Mark Zuckerberg wrote: “I started off by writing the first version of Facebook myself because it was something I wanted to exist. At Facebook, allegiance to the hacker way permeates every aspect of the business, from product innovation to organizational structure to management and training.
I talked recently with David Galenson , an economist at the University of Chicago who began studying prices at art auctions — an exploration that drove him to understand the nature of creativity over the course of one's career. Are you a conceptual innovator or an experimentalist? How has that shaped your career?
Innovation is widely regarded as important to long-term business performance. However, CEOs often don’t have the career background and education that would equip them to personally lead the process of new product development. For the rest, we found that other factors besides innovation drove strong shareholder returns.
As Dick Morley — an MIT manufacturing innovator with deep experience in the auto industry — put it to us, "the trouble with big companies is that they take nice high-risk, high-return opportunities, then manage the risk out of them to the point that there's no return left." Certainly, that's a fair accusation.
As I pointed out in my earlier post , the only funds that Apple ever raised on the public stock market was $97 million (about $274 million in today’s dollars) at its IPO in 1980. Yet these careers and the returns that they can generate are not guaranteed. Social innovation. Employee incentives. Social investment.
Booming public equities and a recovered IPO market generated record portfolio company exits and distributions from VC funds. Investors have perpetuated a compensation structure where VCs can generate significant personal income over their career, even when they make no money for their LPs. The VC industry has failed to innovate.
Like Silicon Valley, Singapore has strong research institutions and limited enforcement of noncompete clauses, a condition that academics now suggest can be a major driver of innovation. Like Israel, Singapore is small, with limited natural resources, which means economic growth requires innovative macroeconomic approaches.
Subsequent investment and growth would lead to an IPO in 1999. The When I Grow Up spot tapped into growing societal angst over the cubicle careers on offer in mainstream professional life and was the only commercial named to Time Magazine’s Best of TV list for that year. At Uncubed, we’re certainly seeing the shift in our clients.
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