Steve Blank, Professor at Stanford University, SXSW Lean Startup, March 9th 2013

2. “I found it slightly disrespectful
him going through the pitch deck
and making his own judgments”

3. “I found it slightly disrespectful
him going through the pitch deck
and making his own judgments”
WTF Is Going On?

4. When Silicon Valley Went
Hollywood
And What It Means For You

5. Hollywood
The Other California Industry Cluster

6. Industry Cluster
A geographic concentration of
interconnected businesses, suppliers
and associated companies and
institutions in a single field

8. Nickelodeons
1905 - Movies Go to the Masses
Product consumed by millions

9. Movie Studios
Thomas Edison in New York
• Formed a Patent monopoly for movie cameras and film

10. Hollywood – Escape From New York
• Escape patent trolls/get great scenery
• Become “the cluster” for film making

11. Narrative and Stars
1910 – Star Envy and Stories
• Actors no longer anonymous
• Became a brand

13. Hollywood – Gossip

14. Hollywood – Hangers On
• Pr agents/publicists • Kids of the famous
• Damage control pr, lawyers • Dog walkers
to get out of jail • Assistants, assistants of
• Party planners/brokers assistants
• Lawyers • Old kid stars out of work
• Parents, boyhood friends • Guild employees
• Ex pro players/security • Journalists/bloggers
• Personal manager/handlers • Failed models who tried
• Body trainers become actors
• Rich kid's investing • "C" list actors, radio
personalities

16. So What?

17. Technology – Defense and Silicon
Of interest to other technologists

18. Silicon Valley Culture Wins
• Escape east coast culture/get great scenery
• Become “the cluster” for technology innovation

19. From Technology to
Computer Products
• Consumed by tens of millions
•Loved by a tech niche
• A tool for others

20. From Computer Products to
Consumer Product
• Consumed by hundreds of millions
• Understood by everyone

21. Narrative and Stars
Star Envy and Stories
• CEO’s no longer anonymous
• Became a brand

22. So What?
Our Time as Industry of
just Hard Workers is Over

24. Silicon Valley – Another Industry
with a “Star Ecosystem”
• Gossip press
• Gatekeepers
• Herd effect in
products
• Fad investing
• Poseurs
• Hangers-on
• Auteurs
• Hard workers

25. Valley Gossip

26. Why Do It?
• Ego
• Ego
• Ego
• Vanity Metrics
• Attract talent
• Get funding
• Drive customer demand

27. Silicon Valley – No Longer Just
“Those Who Do”
• Founders with “Ideas” • Rich kid's investing
• MBA’s who just need • Wanna-be Angels & VC’s
coders • Family of the famous
• PR agencies • Gossip bloggers
• Party planners • Conference junkies
• Lawyers • Real Estate agents
• Patent Trolls • Parents, boyhood friends

28. Don’t Get Distracted by the Noise
• Build a great product
• Find customers who grab it out your hand
• Build something really big

30. Summary
• We’ve gone from technical obscurity to Hollywood
• Ecosystem now has more unproductive people
• They think your job is easy
• Recognize and Avoid them
• Build something amazing