BDO LLP | INTERNATIONAL TECH HUB
26
This bold thinking extends from the entrepreneurs to the venture capitalists willing to play in the tech space. The overall success rate of venture capital has been good, but that has come from a willingness to invest in portfolios knowing that while many might fail, some will flourish and provide overall portfolio returns. It’s a unique part of Silicon Valley culture perhaps not found so widespread elsewhere. THE TALENT POOL As one of several technology hubs in the US, there is a perceived issue of scarcity of human capital. Finding the right talent can always be an issue, but if there’s any place in the world where you can find tech-focused talent, it’s here. It is super competitive, but the talent pool remains a huge draw for all types of companies. Companies moving to the area must prepare for an intense talent acquisition war between businesses big and small. The existing big-name tech companies – Apple, Twitter, Facebook, Google, Oracle and Intel – fight fiercely for talent. While a challenge, this is also an opportunity, as the talent comes to the Valley to become embedded in the tech sector and will go where the best offers lie. This inspires other tech firms to remain competitive choices. Given some of the cost implications, such as the high cost of living in the area, talent that is attracted to Silicon Valley is looking for more than the nitty-gritty of manufacturing operations - they’d rather focus on being part of the next big thing.
THE SUCCESS RATE Although regulatory and geopolitical issues often make the headlines, many companies still enter the US market. Many maturing tech companies also look to transfer entirely to the Silicon Valley area or at least have a substantial presence to have a footprint in the innovation capital of the world, as the opportunity is boundless. Here, the environment is very conducive to new things; new and bold ideas. This makes for an incredibly exciting, but also risky proposition, and many companies get started, get funding, but fail to make the cut. The unique aspect of Silicon Valley culture is that failure is treated as a learning opportunity. Company founders are not ashamed or embarrassed of having failed once or twice because markets see this failure as evidence of courage to pursue bold ideas and also as an experience that will teach those individuals how not to fail in future.
Made with FlippingBook HTML5