Silicon Valley Doesn’t Need More Money – It Needs Ideas!

27.09.2017 • Switzerland

Henry Bonner – Strategy and Council Letter (Switzerland) –

Canteen … Bicycle … Recreation … Taste …

Everyone starts as an infant … and faces more or less the obstacles of the life of child, then of adolescent, then of adult …

The division of people into categories and groups … into scientists, journalists, entrepreneurs, financiers, or unemployed … takes place little by little … day after day.

At the age of 10, children have little difference in terms of living standards … only the conditions of their parents play.

Differences in personality appear shortly after birth … between calms, observers, men of action, creative, funny, lazy, and stubborn …

Over time, differences in behavior can be found in the ways of life … of caring … and in differences of purpose. Facts and situations intertwine with the dispositions of people … generating sales people, mathematicians, musicians, entrepreneurs, or bankers …

Differences in wealth are widening at a slower pace – most 18-year-olds have a 0-euro balance in their bank accounts. Over time, however, differences are beginning to emerge. increasing in size with time …

After 10 or 20 years … one is pleased to have gained 10,000 euros to the prud’hommes … or enraged to have to pay 20 euros fee to his bank. On the other hand, Jeff Bezos, founder of Amazon, can see his fortune climb – or fall – by 10 billion euros over one year.

“The little streams make the great rivers,” as the proverb says.

Lessons, attitudes, or experiences … making little difference to the circumstances of the 10 year old … may, 20 or 30 years later, have a significant impact on his life …

Most “MBAs,” enarchs, or polytechnicians do not understand …

Schools, universities, and training courses promise to “teach” people how to do a trade or another. Film schools learn how to make films. The law and medicine faculties come from lawyers and doctors. Teachers need certificates and diplomas.

The Silicon Valley or Wall Street communities are full of the cult of intelligence and “competence …” They give little importance to attitudes and experiences … They give importance to diplomas, titles, and CVs.

They start behind projects and ideas … They look at the diplomas and “qualifications” of the team … They think they can reduce innovation and the creation of wealth to a science …

They just have to bet on people with the skills, diplomas, and titles to run a project … They expect to get a reward without discovering anything again.

They do not have to obey the laws of the economy …

They just have to know “sell” their idea to investors and financiers …

They are looking for valuations, not revenues and profits …

Indeed, even a fool can manage to run a business …

On the contrary, someone of intelligence can earn millions, or billions, by having a vision and a will … and the charism to convince others to join his project …

Profits and incomes make the happiness of common people …

… but the visionaries have nothing to do with it …

Their genius comes from their ability to predict the success of an idea … even before its execution …!

MBA, medical or law degrees, doctorates and certificates are not used to learn …

They serve to give themselves the illusion of knowledge … They promise to teach students to “run a business,” cure a disease, or rule on the law.

They promise the student to have answers to all situations … to all the questions …

The process of discovery, exploration, and innovation enabling businesses to grow can be reduced to a list of rules to follow.

After graduating, they can get to work to “improve” and “rectify” the panoply of mistakes and problems in the world – the facts of the lack of knowledge among the low-people.

A powder magazine about to jump …

Ideas and vision have value …

They open doors to innovations, launch projects … and they can give people an objective, a sense of the importance of their work …

They can provide the motivation to overcome an obstacle, or to go through an ordeal …

On the other hand, visionaries may also be wrong … They may be wrong.

Now, the ideas have consequences … Thinking about the invincibility of the ship Titanic has made the dead.

Similarly, setting up a box and launching a project costs resources … time, money, talent …

Someone pays … In the end, the idea has to face reality … If the idea does not make money … if the project requires too many resources and does not generate enough … then somebody one must lose money.

Wall Street and Silicon Valley financiers are not worried about the demand for money …

For them, money flows freely. They have the opportunity to find money for a variety of projects and ideas … They just have to post their diplomas and certifications …

Ultimately, attention to incomes and profits disappears … The evaluations do not depend on it. Ideas, not dollars, make the law in the San Francisco or Manhattan areas.

Sooner or later, the inevitable will happen. The game will explode in the figure.

What to do…?

The Silicon Valley earnings surge joins the efforts of the Fed and the ECB to “stimulate” the economy …

Wall Street, La Défense, and the City of London have access to unlimited fund-raising …

To ward off billions of euros, they just have to find a destination there.

Most businesses generate profits and income … and they do not want Wall Street money.

Even a 4% or 5% debt represents money to be repaid.

Silicon Valley pioneers, on the other hand, produce “start-ups” in need of funds 7 days a week.

The wedding between the visionaries of San Francisco, and Wall Street financiers, benefits everyone … for now.

To be continued…

Truly,

Henri Bonner

-Read more at www.lettre-strategie-conseil.com (French)-

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