Being an IT person for ever, I know and admire this place, the people, the business, the spirit. This has brought so much progress into our lifes, and is still going on and on.
Have been in Austin for some time when the VC scene was going crazy there as well, around 2000, and know that NYC is doing a lot to catch up, but nobody so far has beaten the original. Congratulations, guys. I am really impressed.
However, nothing lasts for ever and sometimes you have to destroy your business yourself before somebody else does it, right? Creative destruction or so.
The success of the valley comes with some side effects that haven’t been so visible for long but are popping up now and won’t just go away:
(1) There is heavy competition between companies for talents. And it’s hurting as past silent agreements between the big guns have shown.
(2) Some talented people from all over the world may not want to end up under the IRS regime for the rest of their life.
(3) And, as the Valley is a wealth-creating beast, the number of millionaires, of rich and well-paid employees is going up steadily. Which is good. But this means, of course, that demand goes up and prices go up. And after some time this makes many people outside the industry unhappy, even creates social unrest, unfortunately. It already does.
I think it is the time to let the Valley grow another leg, in a place where overall conditions are even better.
When the U.S. had given the Panama Canal into the hands of Panama, this has been a jumpstart for this country. And now imagine what will happen when part of the spirit of the Valley is being transferred to Panama too.
In my next posts I will describe in detail, why this makes a lot of sense, will be a win for everybody involved.
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