{"id":12730,"date":"2022-08-09T23:56:00","date_gmt":"2022-08-09T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=12730"},"modified":"2026-04-08T10:44:07","modified_gmt":"2026-04-08T02:44:07","slug":"the-power-law","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/","title":{"rendered":"&#8220;The Power Law&#8221;, best book for Silicon Valley VC histry"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_history_of_venture_capital_and_technology_in_the_United_States\" >The history of venture capital and technology in the United States<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_power_laws\" >The power laws<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Illustration_of_normal_distribution\" >Illustration of normal distribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Illustration_of_power_laws\" >Illustration of power laws<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Return_on_venture_capital\" >Return on venture capital<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_biggest_feature_of_venture_capital\" >The biggest feature of venture capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_real_numbers\" >The real numbers<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Evolution_in_capitalism\" >Evolution in capitalism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Semiconductor_plays_a_key_role\" >Semiconductor plays a key role<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Semiconductor_is_important\" >Semiconductor is important<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Important_companies_founded_by_semiconductor_inventors\" >Important companies founded by semiconductor inventors<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Shockley_Laboratory\" >Shockley Laboratory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Fairchild\" >Fairchild<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Texas_Instruments\" >Texas Instruments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Intel\" >Intel<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Arthur_Rock\" >Arthur Rock<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Venture_capital_firms_mentioned\" >Venture capital firms mentioned<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Kleiner_Perkins_Caufield_Byers\" >Kleiner Perkins Caufield &amp; Byers<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Founder_introduction\" >Founder introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#investment_cases\" >investment cases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#FAMOUS_companies_that_have_invested_in\" >FAMOUS companies that have invested in<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Sequoia_capital\" >Sequoia capital<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Founder_introduction-2\" >Founder introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#investment_cases-2\" >investment cases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#FAMOUS_companies_that_have_invested_in-2\" >FAMOUS companies that have invested in<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Accel\" >Accel<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Founder_introduction-3\" >Founder introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#FAMOUS_companies_that_have_invested_in-3\" >FAMOUS companies that have invested in<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Benchmark_Capital\" >Benchmark Capital<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Founder_introduction-4\" >Founder introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#FAMOUS_companies_that_have_invested_in-4\" >FAMOUS companies that have invested in<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Important_companies\" >Important companies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Xerox\" >Xerox<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#These_are_all_invented_by_Xerox\" >These are all invented by Xerox<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#3Com\" >3Com<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Adobe\" >Adobe<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Google\" >Google<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Startups_that_surprised_Sequoia\" >Startups that surprised Sequoia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#A_unique_case_Kleiner_Perkins_and_Sequoia_invested_at_the_same_time\" >A unique case Kleiner Perkins and Sequoia invested at the same time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Bring_in_an_external_management_team\" >Bring in an external management team<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Unique_way_to_Go_PUBLIC\" >Unique way to Go PUBLIC<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Dot-com_crash\" >Dot-com crash<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Destruct_Venture_Capital\" >Destruct Venture Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Google_saved_Venture_Capital\" >Google saved Venture Capital<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Peter_Thiel\" >Peter Thiel<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#A_not-typical_venture_capital_company\" >A not-typical venture capital company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Facebook\" >Facebook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Famouse_companies_that_have_invested_in\" >Famouse companies that have invested in<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_present_and_future_of_the_venture_capital\" >The present and future of the venture capital<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#China\" >China<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_unwritten_rules_of_venture_capital\" >The unwritten rules of venture capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_background_of_venture_capitalists\" >The background of venture capitalists<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#The_fall_of_venture_capitals\" >The fall of venture capitals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Related_articles\" >Related articles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Related_books\" >Related books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/#Related_articles-2\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_history_of_venture_capital_and_technology_in_the_United_States\"><\/span>The history of venture capital and technology in the United States<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>What I want to talk about in this post is a just-published English book &#8220;<a href=\"https:\/\/www.amazon.com\/Power-Law-Venture-Capital-Making\/dp\/052555999X\" data-type=\"URL\" data-id=\"https:\/\/www.amazon.com\/Power-Law-Venture-Capital-Making\/dp\/052555999X\" target=\"_blank\" rel=\"noreferrer noopener\">The Power Law&#8221;<\/a>. It is recommended that you should read this book if you want to have a deep understanding of the technology industry in the United States and the venture capital industry. This book can be said to be the most complete, clear, and easy-to-read book I ever read in this area.<\/p>\n\n\n\n<p>This book reminds me of another book &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8221; written by Founders Fund co-founder and multiple venture capitalist Peter Thiel. Because Thiel also mentioned in his book that the return of the venture capital industry is the concept of the power law.<\/p>\n\n\n\n<p>But I want to emphasize here that the breadth, depth and completeness of &#8220;<a href=\"https:\/\/www.amazon.com\/Power-Law-Venture-Capital-Making\/dp\/052555999X\" data-type=\"URL\" data-id=\"https:\/\/www.amazon.com\/Power-Law-Venture-Capital-Making\/dp\/052555999X\" target=\"_blank\" rel=\"noreferrer noopener\">The Power Law&#8221;<\/a> are beyond the reach of  &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;, You can even think of it as a complete history of venture capital or a very small encyclopedia, and Peter Thiel&#8217;s is mainly about his own philosophy and views, which are completely different.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_power_laws\"><\/span>The power laws<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once Bezos has made a fortune, his chances of getting richer multiply; the more citations a scientific paper is, the more famous it is and the more likely it will attract more citations. Whenever you have an outlier of success times success, you switch from the realm of the normal distribution to the realm governed by power laws.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Illustration_of_normal_distribution\"><\/span>Illustration of normal distribution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.granitefirm.com\/blog\/wp-content\/uploads\/2022\/07\/Normal-1600x1200-1.jpg\" alt=\"\u5e38\u614b\u5206\u4f48\" class=\"wp-image-23210\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Illustration_of_power_laws\"><\/span>Illustration of power laws<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.granitefirm.com\/blog\/wp-content\/uploads\/2022\/07\/Frequency-vs-Size-1600x1200-1.jpg\" alt=\"\u51aa\u6b21\u65b9\u5206\u4f48\" class=\"wp-image-23213\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_on_venture_capital\"><\/span>Return on venture capital<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_biggest_feature_of_venture_capital\"><\/span>The biggest feature of venture capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The biggest feature of the venture capital industry&#8217;s investment is that the main return of the venture capital industry only comes from a small number of investments. Venture capitalist Peter Thiel said: &#8220;The biggest secret in venture capital is that the best investment in a successful fund equals or outperforms the entire rest of the fund.&#8221; Benchmark Capital&#8217;s  Bill Gurley once said: &#8220;Venture capital is not even a home-run business, It\u2019s a grandslam business.&#8221;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_real_numbers\"><\/span>The real numbers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Horsley Bridge backed 7,000 startups between 1985 and 2014. A small subset of these deals, accounting for just 5 percent of the total capital deployed, generated fully 60 percent of all the Horsley Bridge returns during this period.<\/li>\n\n\n\n<li>Y Combinator, in 2012 that three-quarters of its gains came from just 2 of the 280 outfits it had bet on.<\/li>\n\n\n\n<li>To put that in context, in 2018 the top-performing 5 percent of subindustries in the S&amp;P 500 accounted for only 9 percent of the index\u2019s total performance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Evolution_in_capitalism\"><\/span>Evolution in capitalism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In April 1946, the Rockefellers launched a parallel effort with the Whitneys to address what was widely recognized as a lack of capital for new companies. &#8220;What we want to do is go against the old system of blocking capital until a field or an idea is proven to be completely safe,&#8221;<\/p>\n\n\n\n<p>1957, Shockley-Doriot made the bet that transformed his fortunes. He financed Digital Equipment Corporation (acquired by Compaq, ticker: HPE), a company founded by two MIT professors who had helped to develop the TX-0 computer at the military-backed Lincoln Laboratory. The TX-0\u2019s achievement was to show how transistors (ancestor of modern semiconductors) could outperform vacuum tubes in equipment built for the military. <\/p>\n\n\n\n<p>For Compaq, please refer to &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Semiconductor_plays_a_key_role\"><\/span>Semiconductor plays a key role<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Semiconductor_is_important\"><\/span>Semiconductor is important<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Semiconductors are very important to American technology. It is not an exaggeration to say that the technology industry in the United States has flourished due to the invention of semiconductors.<\/p>\n\n\n\n<p>Shockley, John Bardeen and Walter Bratton co-invented the transistor (the ancestor of the modern semiconductor) and won the 1956 Nobel Prize in Physics.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_companies_founded_by_semiconductor_inventors\"><\/span>Important companies founded by semiconductor inventors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shockley_Laboratory\"><\/span>Shockley Laboratory<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In early 1956, scientist William Shockley decided to establish &#8220;Shockley Laboratory&#8221;. In 1957, Noyce was dissatisfied with Shockley&#8217;s authoritarian management system, and resigned together with Moore and other 8 people. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fairchild\"><\/span>Fairchild <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>With the financing of venture capitalists Arthur Rock and Sherman Fairchild, Noyce founded Fairchild (acquired by ON, ticker: ON) semiconductor company, called &#8220;traitorous eight&#8221; by Shockley.<\/p>\n\n\n\n<p>It is worth mentioning that more than half of the original 70 or so Silicon Valley companies had a direct relationship with Fairchild Semiconductor. At the first Semiconductor Engineers Conference, only 24 of the 400 participants had never worked in Fairchild Semiconductor.<\/p>\n\n\n\n<p><strong>Note<\/strong>: Traitorous Eight refers to Robert Noyce, Gordon Moore, Julius Blank, Eugene Claire, Jean Hoerni,  Jay Last, Sheldon Roberts and Victor Grinich.<\/p>\n\n\n\n<p>For &#8220;Traitorous Eight&#8221;, please see my special post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/24\/traitorous-eight\/\">Traitorous Eight, the origin of the semiconductor and venture capital industries<\/a>&#8220;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Texas_Instruments\"><\/span>Texas Instruments<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When Noyce invented the integrated circuit in 1959, Jack Kilby of Texas Instruments (ticker: TXN) had already made the integrated circuit. In 1969, the court ruled that the integrated circuit invented by Noyce and Kilby had no infringement problem, and both patents were valid. Please see article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intel\"><\/span>Intel <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In August 1968, Noyce, Gordon Gordon and Andy Grove resigned together to found Intel (ticker: INTC).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Arthur_Rock\"><\/span>Arthur Rock<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Arthur Rock, one of the first and most successful venture capitalists in the United States, funded Teledyne Technologies (ticker: TDY), a startup, with a $450,000 investment. At various times, Teledyne has owned more than 150 companies in areas such as insurance, dental devices, specialty metals and avionics, but many of these companies were spun off before merging with Allegheny. The new Teledyne initially consists of 19 early Teledyne companies. By 2011, Teledyne had grown to include nearly 100 companies.<\/p>\n\n\n\n<p>Arthur Rock is an early investor in well-known technology companies such as Fairchild, SDS (Scientific Data Systems, which has been incorporated into Xerox, ticker: XRX), Teledyne, Intel, and Apple (ticker: AAPL).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Venture_capital_firms_mentioned\"><\/span>Venture capital firms mentioned<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Kleiner_Perkins_Caufield_Byers\"><\/span>Kleiner Perkins Caufield &amp; Byers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founder_introduction\"><\/span>Founder introduction<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Eugene Kleiner, one of the founders of Kleiner Perkins Caufield &amp; Byers(KPCB), was the founder of Fairchild, and Kleiner Perkins was an early executive at HP, where his director was Georges Doriot. In 1973, Perkins founded Kleiner Perkins with Kleiner, raising $1 million from Rockefeller University. Perkins agreed to Treybig to incorporate his new company, which he called Tandem Computers (later acquired by Compaq, ticker: HPE).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"investment_cases\"><\/span>investment cases<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Together with Tandem, the Genentech bonanza turned the first Kleiner<br>Perkins fund into a legend, and a dramatic illustration of the power law. Successful investments in the two gold mines of Genentech and Tandem turned Kleiner Perkins into a legend. By 1984, Kleiner Perkins First Fund&#8217;s 14 investments had a combined profit of $208 million; 95% of it came from Tandem and Genentech. Roche (ticker: RHHBY) acquired Genentech in 2009 for $46.8 billion. Including home runs, the payout multiplier is 42 times. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAMOUS_companies_that_have_invested_in\"><\/span>FAMOUS companies that have invested in<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Kleiner Perkins has invested in 500 companies, and Kleiner Perkins global investment focuses on three areas: digital technology, clean technology, and life sciences.<\/p>\n\n\n\n<p>The famous companies Kleiner Perkins has invested in include: AOL (ticker: T), Amazon (ticker: AMZN), Tandem Computers (acquired by Compaq, ticker: HPE), Lotus (ticker: IBM), Compaq Computer (ticker: HPE), Mosaic (later renamed Netscape), Electronic Arts (ticker: EA), JD.com (ticker: JD), Square (renamed to Block, ticker: XYZ), Genentech(acquired by Roche, ticker: RHHBY), Google, Netscape, Sun Computer (acquired by Oracle, ticker: ORCL), Nest (acquired by Google, ticker: GOOGL and GOOG), Palo Alto Networks (ticker: PANW), Synack, Snap (ticker: SNAP), AppDynamics, and Twitter (ticker: TWTR), Navigenics, Citrix Systems (ticker: CTX), Genomic Health, Geron Corporation, Intuit (ticker: INTU), Juniper Networks (ticker: JNPR), Nebula, Netscape (acquired by American Online), Norton (ticker: NLOK), Verisign (ticker: VRSN), WebMD and Zynga (acquired by Take Two, ticker: TTWO).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sequoia_capital\"><\/span>Sequoia capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founder_introduction-2\"><\/span>Founder introduction<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In 1972, Don Valentine founded the venture capital firm Sequoia capital. Valentine is a former Express, Raytheon employee and a network leader in industry and technology.<\/p>\n\n\n\n<p>Please click my previous post for Valentine: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/29\/don-valentine-sequoia\/\" target=\"_blank\" rel=\"noreferrer noopener\">Don Valentine, founder of Sequoia Capital, father of Silicon Valley Venture Capital<\/a>&#8220;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"investment_cases-2\"><\/span>investment cases<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Kleiner Perkins rejected Apple. Because of his marketing background, Valentine is an ideal investor in Apple. Kleiner and Perkins declined to meet with Steve Jobs because Kleiner Perkins preferred technical risks to business risks. Apple&#8217;s investment case is an important watershed, and it clearly shows the difference between Kleiner Perkins and Sequoia Capital, two of the most famous venture capital firms.<\/p>\n\n\n\n<p>\u201cTell me what I have to do to have you finance me,\u201d Jobs demanded.<br>\u201cWe have to have someone in the company who has some sense of<br>management and marketing and channels of distribution,\u201d Valentine<br>countered.<br>\u201cFine,\u201d said Jobs. \u201cSend me three people.\u201d<\/p>\n\n\n\n<p>It was against this backdrop that Mike Markkula sent to Apple through Valentine&#8217;s introduction. He is not a venture capitalist. But he was arguably Silicon Valley&#8217;s first &#8220;angel investor.&#8221;<\/p>\n\n\n\n<p>In December 1980, two months after Genentech&#8217;s IPO, Morgan Stanley (ticker: MS) helped Apple go public. Of the 237 IPOs that year, Apple was arguably the largest, raising more money than any public offering since Ford Motor (ticker: F)&#8217;s IPO 24 years ago. As of the end of December of that year, Apple&#8217;s market value was close to $1.8 billion.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAMOUS_companies_that_have_invested_in-2\"><\/span>FAMOUS companies that have invested in<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The famous companies that Sequoia Capital has invested in include: Yahoo (currently acquired by Apollo), LSI Logic (acquired by Broadcom, ticker: AVGO), Oracle (ticker: ORCL), Cisco (ticker: CSCO) , Electronic Arts, Google (ticker: GOOG and GOOGL), Sun Microsystems (acquired by Oracle), Cypress (acquired by Infineon, ticker: IFNNY), \u200b\u200bBitClout, Bolt (ticker: BOLT), FTX, Wiz, 23andMe, Instacart, Klarna, Nubank (ticker: NU), Snowflake (ticker: SNOW), Stripe, WhatsApp (acquired by Meta, ticker: META), UiPath (ticker: PATH), Meituan (ticker: MPNGF), Pinduoduo (ticker: PDD), Dropbox (ticker: DBX), Airbnb (ticker: ABNB), Palo Alto Networks, ServiceNow (ticker: SNOW), Unity (ticker: U), YouTube (acquired by Google, U.S. stock code: GOOGL and GOOG), Apple, Nvidia (ticker: NVDA), Webvan, PayPal (ticker: PYPL), ByteDance, Xoom (acquired by PayPal, ticker : PYPL), MongoDB (ticker: MDB), Atari (ticker: ATAR), LinkedIn (acquired by Microsoft, ticker: MSFT), Kayak, Meebo, AdMob (acquired by Google, tickers: GOOGL and GOOG), and Zappos (acquired by Amazon, ticker: AMZN), etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accel\"><\/span>Accel <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founder_introduction-3\"><\/span>Founder introduction<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The two founders, Arthur Patterson and Jim Swartz, were already veterans of the business, and they were planners rather than improvisers, strategists rather than evangelists. Patterson, in particular, was self-consciously cerebral.<\/p>\n\n\n\n<p>Note: The original text in the book is mainly to distinguish Accel from Kleiner Perkins&#8217; consideration of technology, and Sequoia&#8217;s focus on marketing.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAMOUS_companies_that_have_invested_in-3\"><\/span>FAMOUS companies that have invested in<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>UUNET is Accel&#8217;s most successful early investment. UUNET (acquired by Verizon, ticker: VZ) illustrates the dominance of the power law, one of several unforeseen grand slams in Accel&#8217;s first dozen years of business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benchmark_Capital\"><\/span>Benchmark Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founder_introduction-4\"><\/span>Founder introduction<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Benchmark\u2019s strength was local rather than global. Note: The original text in the book is mainly to distinguish the benchmark from Japan&#8217;s SoftBank (ticker: SFTBY), the biggest rival of the benchmark at the time, and the very difference between the two venture capital firms.<\/p>\n\n\n\n<p>Some venture firms believed that selecting the right deal was ninetenths of the job; coaching entrepreneurs was an afterthought. Benchmark partners tended toward a more fifty-fifty attitude. <\/p>\n\n\n\n<p>Some venture firms believed that selecting the right deal was ninetenths of the job; coaching entrepreneurs was an afterthought. Benchmark partners tended toward a more fifty-fifty attitude.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAMOUS_companies_that_have_invested_in-4\"><\/span>FAMOUS companies that have invested in<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>eBay\u2019s growth was truly exponential. <\/p>\n\n\n\n<p>Returning for a second visit, Benchmark partner noticed something else. Unlike other retailers, eBay did not hold inventory. It had no carrying costs, no shipping costs, no hassles with storage. As a result, its profit margins were formidable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_companies\"><\/span>Important companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Xerox\"><\/span>Xerox<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"These_are_all_invented_by_Xerox\"><\/span>These are all invented by Xerox<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The graphics user interface operating systems used by modern people, including Microsoft&#8217;s Windows and Apple&#8217;s macOS, are all derived from Xerox&#8217;s graphical desktop system. The mouse we use for our computers, and the network communication system in our office; it all comes from this company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3Com\"><\/span>3Com<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>3Com (acquired by Hewlett-Packard, ticker: HPE) is a company created by extending the network of Xerox&#8217;s offices. At Xerox Palo Alto Research Center, Robert Metcalfe invented Ethernet and subsequently co-founded 3Com in 1979. 3Com Corporation began making Ethernet cards that were used in many computer systems in the early 1980s.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Adobe\"><\/span>Adobe<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Adobe (ticker: ADBE) was founded in December 1982 by John Warnock and Charles Geschke, who left Xerox to develop and sell PostScript to form Adobe, a major software company. Apple&#8217;s Jobs offered $5 million to buy Adobe, but was rejected by Adobe&#8217;s founders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Google\"><\/span>Google<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Startups_that_surprised_Sequoia\"><\/span>Startups that surprised Sequoia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When Larry Page, one of the founders of Google, first met Sequoia partner Moritz, he said he believed Google would have an annual runrate over of $10 billion in the future. Kleiner Perkins is technically and exponentially evaluating the business, realizing that this will be a potentially huge business of the size of Microsoft.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_unique_case_Kleiner_Perkins_and_Sequoia_invested_at_the_same_time\"><\/span>A unique case Kleiner Perkins and Sequoia invested at the same time<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Moritz expected it would be dominated by brands.[30] Technical features such as search engines would exist as lowly plug-ins on popular websites that<br>commanded consumer loyalty (note: this is the original text, meaning that Google, the search engine, eventually succeed in the future, will be determined by how to market the brand. Please recall the previous paragraph, Kleiner Perkins rejected Apple&#8217;s story). <\/p>\n\n\n\n<p>Benchmark and Accel, two venture capitalists, are willing to give Google a lower valuation. The chances of these big VC firms agreeing to co-invest in a startup are essentially nil. But Google wants its Kleiner Perkins and Sequoia each to own 12.5% of Google&#8217;s shares. If they refuse, Google will not sell any equity to either of them.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bring_in_an_external_management_team\"><\/span>Bring in an external management team<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Since the two Google founders are young people and have no experience in running a business, Kleiner Perkins suggested that Google be managed by Schmidt from Novell (which has been merged into Micro Focus, ticker: MFGP). What Page and Brin wanted was Apple&#8217;s Jobs.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Unique_way_to_Go_PUBLIC\"><\/span>Unique way to Go PUBLIC<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Brin and Page insisted on maintaining control of the company even after going public, arguing that young founders would better protect the public&#8217;s best interests than outside shareholders. Democracy of shareholders actually undermines political democracy. <\/p>\n\n\n\n<p>Moreover, Brin and Page do not want investment banks to make money when they go public, so its IPO case is to sell shares through a Dutch auction, which is completely different from the general listing of companies where Wall Street investment banks determine the stock price.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dot-com_crash\"><\/span>Dot-com crash <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Destruct_Venture_Capital\"><\/span>Destruct Venture Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the first years of the twenty-first century,  As of 2003, Sequoia was struggling to prop up a venture fund that had lost around 50 percent of its value; the partners felt honor-bound to plow their fees back into the pot to eke out a return of 1.3x. The equivalent Kleiner Perkins fund performed even worse, never making it into the black. Masayoshi Son, who had briefly become the<br>richest person in the world, lost more than 90 percent of his fortune. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Google_saved_Venture_Capital\"><\/span>Google saved Venture Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At the peak in 2000, new capital commitments to VC firms had hit $104 billion. By 2002, they were down to around $9 billion. Google\u2019s public offering in the summer of 2004 marked the end of this dark period.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Peter_Thiel\"><\/span>Peter Thiel<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Peter Thiel in the venture capital world marked the beginning of another new era.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_not-typical_venture_capital_company\"><\/span>A not-typical venture capital company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike traditional venture capital firms such as Kleiner Perkins or Sequoia before, Peter Thiel is a personal angel investor. He made his money mostly after PayPal went public, then set up his own Founders Fund and started his own venture capital path.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facebook\"><\/span>Facebook<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For the first time, a mainstream Silicon Valley start-up dared to reject a mainstream venture capital firm. In June 2004, Thefacebook.com, the predecessor of Facebook (renamed to Meta, ticker: META), relocated its operating base to California. Shortly after the relocation, Thefacebook.com received its first major investment from Peter Thiel.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Famouse_companies_that_have_invested_in\"><\/span>Famouse companies that have invested in<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company&#8217;s investments include Airbnb (ticker: ABNB), DeepMind (acquired by Google, tickers: GOOGL and GOOG), Lyft (ticker: LYFT), Facebook, Flexport, Palantir (ticker: PLTR), SpaceX, Spotify (ticker: SPOT), Stripe, Wish (ticker: WISH), Nubank (ticker: NU), and Twilio (ticker: TWLO).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_present_and_future_of_the_venture_capital\"><\/span>The present and future of the venture capital <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"China\"><\/span>China<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Masayoshi Son, founder of SoftBank, invested heavily in Alibaba (ticker: BABA) because of his position on Cisco&#8217;s board of directors, knowing that sales of routers to China had begun to take off. He bet huge on Alibaba. At the time of the Alibaba IPO, the stake was worth $58 billion. It was the most successful bet in venture capital history.<\/p>\n\n\n\n<p>Sequoia Capital is very active in China, and its investments have been very successful as well; the most famous investment cases are Meituan (ticker: MPNGF) and TikTok parent company ByteDance.<\/p>\n\n\n\n<p>Of course, Kleiner Perkins is reluctant to fall behind its biggest rival, Sequoia Capital. Kleiner Perkins also has an independent Chinese team and is very active in investing in Chinese startups.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_unwritten_rules_of_venture_capital\"><\/span>The unwritten rules of venture capital <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The unwritten rule in venture capital industry is that it is almost difficult to see any two super-large and well-known venture capitalists, especially Kleiner Perkins and Sequoia, investing in a start-up company at the same time. The Google mentioned above is one of exceptions.<\/p>\n\n\n\n<p>There will also be a similar situation in China. I mentioned it in section 5-1 of my book &#8220;The Rules of Super Growth Stocks Investing&#8221;; according to McKinsey&#8217;s report, Alibaba (ticker: BABA) and Tencent (ticker: TCEHY) are the top 2 venture capital monopolizes 40% to 50% of the venture capital and startup projects in China. Tencent alone invested 35.3 billion yuan in 2019, while Alibaba invested 25.9 billion yuan. And the unwritten rule is that it is almost rare (there is, but very rare) that both Tencent and Alibaba are investing in a startup at the same time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_background_of_venture_capitalists\"><\/span>The background of venture capitalists<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Early Silicon Valley venture capitalists, as profiled in this article, without exception, have deep tech and industry backgrounds. But with the founders of the earliest Silicon Valley venture capitalists no longer managing day-to-day operations at the company, leaving the front lines. The second generation of venture capitalists, in addition to many Wall Street investment banking backgrounds, members of the background is increasingly diverse.<\/p>\n\n\n\n<p>When Moritz, the former head of Sequoia, first came to Sequoia, some of his colleagues were skeptical. Because he is an Oxford history graduate, a magazine reporter, and the author of two business books.<\/p>\n\n\n\n<p>Another famous example is Founders Fund co-founder Peter Thiel. His background is philosophy and law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_fall_of_venture_capitals\"><\/span>The fall of venture capitals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If Internet 1.0 had been about selling stuff (Amazon, eBay), Internet 2.0 was about using the web as a communications medium. \u20182.0\u2019 frenzy around social networking; Accel may have missed the boat,\u201d in early 21 century.<\/p>\n\n\n\n<p>Kleiner\u2019s fall from grace is commonly ascribed to a spectacularly bad<br>investment call. Starting in 2004, the firm pursued so-called cleantech<br>startups\u2014bets on technologies that help fight climate change, from solar<br>power to biofuels to electric vehicles. In 2008, Kleiner doubled down,<br>devoting a new $1 billion growth fund exclusively to this sector. <\/p>\n\n\n\n<p>In 2021, when Kleiner partners had all but disappeared from the Forbes Midas list, Sequoia occupied the number one and number two slots, and three of the top ten, making it by far and away the top firm in the industry. It backed unicorns from Airbnb, WhatsApp, ByteDance, Meituan, Unity, Xoom, MongoDB, and Dropbox.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"135\" height=\"200\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/08\/The-Power-Law.jpg\" alt=\"The Power Law\" class=\"wp-image-12735\"\/><figcaption class=\"wp-element-caption\">Credit: Amazon.com<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As I said at the beginning of this article, I suggest that you should read this book if you want to gain a deeper understanding of the technology industry, or the venture capital industry, in the United States. After reading patiently, you will get a lot.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/06\/the-thinking-machine\/\">A must-read for Nvidia investors\uff02The Thinking Machine\uff02<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/04\/07\/%EF%BC%82the-innovators\/\">\uff02The Innovators&#8221;<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/24\/traitorous-eight\/\">Traitorous Eight, the origin of the semiconductor and venture capital industries<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/29\/y-combinator\/\">How is Y Combinator different from other venture capital firms?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/\" target=\"_blank\" rel=\"noreferrer noopener\">Startup issues that most people care about<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/29\/don-valentine-sequoia\/\" target=\"_blank\" rel=\"noreferrer noopener\">Don Valentine, founder of Sequoia Capital, father of Silicon Valley Venture Capital<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/24\/angel\/\" target=\"_blank\" rel=\"noreferrer noopener\">Angel is an excellent venture capital  book for ordinary people<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\">The Power Law<\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/16\/venture-capital-unicorns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Venture capital and unicorns introduction<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/17\/venture-capital-and-unicorn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global Venture Capital and Unicorn Report<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Related_books\"><\/span><strong>Related books<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to know more about and Peter Thiel, his companies and startups,  you can refer to the following three other books by PayPal Mafia members that are influential in Silicon Valley and the venture capital community:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.amazon.com\/Hard-Thing-About-Things-Building\/dp\/0062273205\" target=\"_blank\" rel=\"noreferrer noopener\">The Hard Thing About Hard Things<\/a>&#8221; by A16Z co-founder Ben Horowitz.<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.amazon.com\/PayPal-Wars-Battles-Hardcover-September\/dp\/B010EWMMRW\" target=\"_blank\" rel=\"noreferrer noopener\">PayPal Wars<\/a>&#8221; by former PayPal executive Eric Jackson<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.amazon.com\/Alliance-Managing-Talent-Networked-Age\/dp\/1625275773\" target=\"_blank\" rel=\"noreferrer noopener\">The Alliance<\/a>&#8221; by former deputy general manager of PayPal and founder of LinkedIn Reid Hoffman<\/li>\n<\/ul>\n\n\n\n<p><strong>Note<\/strong>: <\/p>\n\n\n\n<p>After Reid Hoffman sold LinkedIn, which he founded, to Microsoft, he founded a well-known artificial intelligence startup, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Inflection_AI\" target=\"_blank\" rel=\"noreferrer noopener\">Inflection.ai<\/a>, and is currently focusing on running this company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles-2\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/24\/traitorous-eight\/\">Traitorous Eight, the origin of the semiconductor and venture capital industries<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/08\/secrets-of-sand-hill-road\/\">a16z&#8217;s &#8220;Secrets of sand hill road&#8221; to investors and entrepreneurs<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/11\/blitzscaling\/\">&#8220;Blitzscaling&#8221; expansion speed decide if startup success eventually<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/08\/essays-by-marc-anderson\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two famous essays by Marc Anderson on software and artificial intelligence<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\">The Power Law<\/a>&#8220;<\/li>\n\n\n\n<li> &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/16\/venture-capital-unicorns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Venture capital and unicorns introduction<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/17\/venture-capital-and-unicorn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global Venture Capital and Unicorn Report<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/14\/turnaround-stocks-is-hard\/\">Investing in turnaround stocks is hard<\/a>&#8221; <\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Power Law<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/11\/30\/tsmc-negative-corp-culture\/\" target=\"_blank\" rel=\"noreferrer noopener\">TSMC negative toxic corp culture and management style are detrimental to its future and growth<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/10\/four-chip-companies\/#google_vignette\" target=\"_blank\" rel=\"noreferrer noopener\">Four chip companies account for one-third of S&amp;P 500 gains so far this year<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/06\/artificial-intelligence-listed-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top five lucrative artificial lucrative intelligence listed companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/09\/tsmc-valuation\/\">Why is TSMC valuation much lower than US peers?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/01\/tsmc-dcf-value\/\">What&#8217;s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/10\/01\/how-many-fab-does-tsmc-have\/\" target=\"_blank\" rel=\"noreferrer noopener\">How many fabs and houses does TSMC have currently and in the future?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/13\/yield-rate-comparison\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yield rate comparison of SMIC, Rapidus, TSMC, Samsung, Intel&#8217;s advanced process<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/29\/cost-of-chip-foundry\/\">The TSMC cost, sell price, and R&amp;D cost of chip foundry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/15\/asml-who-really-caught-tsmcs-neck\/\" target=\"_blank\" rel=\"noreferrer noopener\">ASML, who dominate TSMC\u2019s fate<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/12\/28\/tsmc-process-roadmap\/\" target=\"_blank\" rel=\"noreferrer noopener\">Comparison of SMIC, Rapidus, TSMC, Intel, and Samsung\u2019s new process roadmaps for future chips<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/30\/two-long-term-threats-to-tsmc\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two long-term threats to TSMC: US and SMIC<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/30\/tsmcs-profit-margin\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is TSMC\u2019s profit margin much greater than competitors?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/13\/how-does-tsmc-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does TSMC make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/02\/zyvex\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zyvex and sub-nanometer semiconductor processes, will Zyvex threat TSMC?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/01\/28\/tsmc-serious-crises\/\">TSMC gets emerging&nbsp;and serious challenges<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/24\/nvidia-changes-gaming-rules\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does nVidia make money, Nvidia is changing the gaming rules<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/11\/nvidias-monopoly\/\" target=\"_blank\" rel=\"noreferrer noopener\">The reasons for Nvidia\u2019s monopoly and the challenges it faces<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/29\/arm-acquired-by-nvidia\/\">Why nVidia failed to acquire ARM?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/02\/revisiting-nvidia\/\">Revisiting Nvidia: The Absolute Leader in Artificial Intelligence, Data Center, and Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/25\/will-intel-go-bankrupt\/\" target=\"_blank\" rel=\"noreferrer noopener\">Will Intel go bankrupt?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/30\/how-does-intel-make-money-and-the-benefits-to-invest-in-it\/\">How does Intel make money? and the benefits to invest in it<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/05\/intels-current-difficult-dilemma\/\">Intel&#8217;s current difficult dilemma<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/22\/texas-instruments-bio\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Texas Instruments make money? Amazing long term capital reward and company net profit margin!<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/22\/amd-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How AMD makes money? A rare case of turning defeat into victory<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/02\/05\/amd-jaw-dropping\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why is AMD\u2019s performance so jaw-dropping?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/01\/qualcomm-diversifies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Qualcomm diversifies success, no nonger highly dependend on phone<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/29\/how-arm-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does the ubiquitous Arm make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/23\/significant-changes-in-broadcoms-business-approach\/\" target=\"_blank\" rel=\"noreferrer noopener\">Significant changes in Broadcom\u2019s business approach<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/04\/data-center-a-rapidly-growing-semiconductor-field\/\">Data center, a rapidly growing semiconductor field<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/18\/applied-materials\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Applied Materials, lord of semiconductor equipment, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/08\/12\/lam-research-chip-equipment\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Lam Research, top chip equipment player, make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/25\/the-lucrative-semiconductor-industry\/\" target=\"_blank\" rel=\"noreferrer noopener\">The lucrative semiconductor supply chain<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/01\/25\/global-semiconductor-chip-market-in-detail\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global semiconductor chip market in detail, big dominators and markets<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/05\/07\/semiconductor-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">6 common wrong semiconductor investment myths<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/23\/3rd-gen-semiconductor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gen 3 semiconductor<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/14\/eda-synopsys-cadence-mentor\/\">Three EDA oligopoly vendors: Synopsys, Cadence, and Siemens&#8217;s Mentor Graphics<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/01\/22\/how-cadence-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does, the EDA oligopoly, Cadence make money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/22\/how-synopsis-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Synopsis, the EDA oligopoly, make money?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Book &#8220;The Power Law&#8221; you should read this book if you want to have a deep understanding of the technology industry in the United States and the venture capital industry. This book can be said to be the most complete, clear, and easy-to-read book I ever read in this area.<\/p>\n","protected":false},"author":1,"featured_media":12735,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85,527,591,130,91,118,8,544,206,110,117,122,83,9],"tags":[2,784,328,859,371,158,862,210,861,863,530,499,97,95,62,426,354,168,416,41,357,274,872,860,721,292,760,3,394,864,169,706,339,601,871,664,308,4,869,870,545,294,826,5,99,195,232,573,546,866,865,265,38,868,196,867,353,1419],"class_list":["post-12730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-venture-capital","category-company-bio","category-company-culture","category-ecommerce","category-entrepreneur","category-internet","category-investing-books","category-investment-banks","category-management-team","category-semiconductor","category-social-network","category-software","category-startup","category-us-stocks-resources","tag-aapl","tag-abnb","tag-adbe","tag-atar","tag-avgo","tag-baba","tag-bolt","tag-csco","tag-ctx","tag-dbx","tag-ea","tag-ebay","tag-goog","tag-googl","tag-gs","tag-hpe","tag-hpq","tag-ibm","tag-ifnny","tag-intc","tag-intu","tag-jd","tag-kpcb","tag-lyft","tag-meta","tag-mpngf","tag-ms","tag-msft","tag-now","tag-nu","tag-nvda","tag-on","tag-orcl","tag-panw","tag-path","tag-pdd","tag-pltr","tag-pypl","tag-rhhby","tag-rtx","tag-sftby","tag-snap","tag-snow","tag-spot","tag-stripe","tag-t","tag-tcehy","tag-tdy","tag-tiktok","tag-ttwo","tag-twlo","tag-twtr","tag-txn","tag-vrsn","tag-vz","tag-wish","tag-xrx","tag-xyz"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/12730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=12730"}],"version-history":[{"count":105,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/12730\/revisions"}],"predecessor-version":[{"id":41642,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/12730\/revisions\/41642"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/12735"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=12730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=12730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=12730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}