How Silicon Valley Was Created and How To Play In It

This is the first post of my study notes from the Insider’s Guide to Silicon Valley Investing program with Stanford University and 500 Startups. This part was taught by Mike Lyons, Michael Lepech, and Pedram Mokrian.

What is Entrepreneurship?

“The Pursuit of Opportunity Without Regard to Resources Controlled” - Howard Stevenson, Harvard Business School

Entrepreneurship in High-Tech: The Silicon Valley Effect

Silicon Valley has its status for many reasons. It is the epicenter of high-tech investing. It accounts for about 40% of all U.S. venture capital. It is home to some of the largest and most innovative technology companies, and their founders, which results in a powerful eco-system. In Silicon Valley, you can find tons of Angel / Super-Angel investors and groups, as well as legal, financial, and technical experts. But what created all this?

Origins of the “Valley”

Aggressive R&D spending by the U.S. government fueled technology development at Stanford, Berkeley, LLNL, Lockheed and many other companies, resulting in the key fundamental research (mainly semiconductors). Frederick Terman at Stanford was pretty much the first person to exploit the research. He…