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Hiring is Obsolete
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"May 2005 (This essay is derived from a talk at the Berkeley CSUA.) The three big powers on the Internet now are Yahoo, Google, and
Microsoft. Average age of their founders: 24. So it is pretty
well established now that grad students can start successful
companies. And if grad students can do it, why not undergrads? Like everything else in technology, the cost of starting a startup
has decreased dramatically. Now it's so low that it has disappeared
into the noise. The main cost of starting a Web-based
startup is food and rent. Which means it doesn't cost much more
to start a company than to be a total slacker. You can probably
start a startup on ten thousand dollars of seed funding, if you're
prepared to live on ramen. The less it costs to start a company, the less you need the permission
of investors to do it. So a lot of people will be able to start
companies now who never could have before. The most interesting subset may be those in their early twenties.
I'm not so excited about founders who have everything investors
want except intelligence, or everything except energy. The most
promising group to be liberated by the new, lower threshold are
those who have everything investors want except experience. Market Rate I once claimed that nerds were unpopular
in secondary school mainly because they had better things to do
than work full-time at being popular. Some said I was just telling
people what they wanted to hear. Well, I'm now about to do that
in a spectacular way: I think undergraduates are undervalued. Or more precisely, I think few realize the huge
spread in the value of 20 year olds. Some, it's true, are not very
capable. But others are more capable than all but a handful of 30
year olds. [ 1 ] Till now the problem has always been that it's difficult to pick
them out. Every VC in the world, if they could go back in time,
would try to invest in Microsoft. But which would have then? How
many would have understood that this particular 19 year "
....
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