Monday, July 1, 2013

Top Business and Venture Capitalists


Top Business Planners and Venture Capitalist


 Eugene Kleiner was known as an engineer, entrepreneur, and venture capitalist that put the silicon in Silicon Valley.  Kleiner was born May 12, 1923 in Vienna, Austria. In 1938, at the age of 15, he escaped from Vienna, Austria before WWII (New York Times, 2003).   He graduated from Polytechnic University of New York with a B.S in Mechanical Engineering.  In 1948, he graduated with a M.S. in Industrial Engineering from New York University.

In 1956, he accepted an invitation form Nobel Prize winner, William Shockley to come to California to build computer transistors and help form what became known as the Shockley Semi-conductor Laboratory (NY Times, 2003).  Kleiner and seven others broke off and used 3,500 dollars of their own money produced multiple transistors on a single silicon wafer.  Later, they were able to get Fairchild to invest 1.5 million into their company and first Silicon Company was created, Fairchild electronics in 1957(USA Today, 2003).  This was not just the beginning of a new technology, but they had created a new business model where the founders kept the majority of ownership instead of the investors. After Fairchild, Kleiner invested in another venture, Intel.  This also changed the way business was conducted.  Usually, when people started companies and became successful, they would just go about their merry way spending their money on the American dream.  Not Kleiner, he invested his money in other start-up companies. In 1972, he and Tom Perkins started one of the world’s first investment company called Kleiner, Perkins, Caulfield, and Byers. To date this company has invested billions of dollars into startups like Amazon.com, Tandem Computers and Compaq Computers, just to name of few (New York Times, 2003).  Kleiner died on November 20, 2003 but not before he left his mark on the world in regards to venture investing.  His ingenuity and wisdom became known as Kleiner’s laws. Three of his laws that I liked are:

·      Make sure that the dog wants to eat the dog food. In other words, no matter how great the idea or promising the market, make sure the people want the product or service
·      Build one business at a time.  Kleiner said that most business plans are too ambitious.
·      It is easier to get a piece of an existing market than to create a new one.



The next person, Tim Berry, is the co-founder of Eugene Social, Apps37, founder and chairman of Palo Alto Software, founder of b-plans.com, author of books and software, teacher of entrepreneurship, and blogger.  He has a M.B.A. from Stanford and is an angel investor. He has a MA with honors from the University of Oregon, A BA magna cum laude from the university of Notre Dame.  Tim has been successfully delivering business plans in 13 countries since 1974. (Entrepreneur, 2013).

 According to Tim, a business plan should be lean, which means it should be efficient and effective.   He gives three suggestions on how to make your plan lean:

·      “The strategy should be to focus on the target market and the solutions.   Focus on the differences.
·      Review and revise the plan regularly.
·      Track progress and manage course corrections constantly. Use lists and tables in order to be able to clearly see what needs to be corrected.”
(Berry, 2013)



Lastly, we have Fred Wilson, a venture capitalist and managing partner of Union Square Ventures of NYC. He has a bachelors’ degree in mechanical engineering from MIT and a MBA from Wharton School of Business at the University of Pennsylvania.  Union Square Ventures manages $450,000,000 across three funds.

According to Fred, they look for three things in the entrepreneurs that they back:

·      “They look to see how the founder and the managers get along to drive the business forward
·      They look to back people who they will get along with
·      They look to back entrepreneurs that have been successful before and bring new ideas to the table (content.usv.com, 2013)”

Abrams, Rhonda. (2003, November 26). Kleiner. Retrieved from http://usatoday30.usatoday.com/money/small business/columnist/abrams/2003-11-26-Kleiner_x.htm.

Berry, T (2013, April 17). How to Build a Lean and Efficient Business Plan. Entrepreneur.com. Retrieved from http://www.entrepreneur.com/article/226417

Union Square Ventures [Web log post].  Retrieved from http//: content.usv.com/pages/fred-wilson




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