Very good article. I must admit, the more I read about Thiel, the less I like him.
It's unclear to me why they think that SV is more meritocratic than anything else. Sports still seems much more meritocratic than SV. Any industry that depends so much on getting funding hardly seems like it would be especially meritocratic -- at least at first blush.
Whenever you call something "meritocratic" it's almost always a circular definition. How do you define "merit" in Silicon Valley and how do you know the "most meritorious" are the ones winning? If you don't have an independent objective measure of "merit" other than "success in Silicon Vallay" your assertion is merely tautological.
I'd agree, although refine your criticism further: it's not so much a tautology as that "success in SV" selects for "people who appeal to VCs" which may or may not have anything to do with any other forms of merit (like the intelligence or technical merit people love to claim as being the underpinnings of "meritocracy".
The ones who 'sell' the best and who have the most connections and resources get ahead in today's Silicon Valley. It's as simple as that. Nothing 'meritocratic' about that.
It's the 5th Paper Belt hub: the financial center of technology. Silicon Valley itself is dying, but Stanford is going to remain a top university, so it'll generate the MDs and VPs of this new increasingly IB-like industry, and tradition is strong, so San Francisco has at least 50 years (in my estimation) at the lead of the finance-of-technology business. It'll also house a lot of management consultants specializing in outsourcing, an industry that's not going to go away until labor arbitrages disappear (at least 30 years).
As for where technology itself will "go" next, I have no earthly idea. But you're right that in 2014, the Valley is a salesman's world. If you can raise funding, the balance of power between tech talent and fundraising has never been better for you.
The more I read words by people who have read about Thiel, the more I wonder how armchair critics without much achievement on their resume can expend so much hater energy. Since when was success only deserved by those who could do, or think, no wrong?
Admittedly, I can kinda-sorta understand becoming a libertarian if you grew up in Northern California: its local/municipal/regional governments are a special kind of stupid that you only get when combining lower-class reaction with landowner chauvinism with new money elitism.
Of course physical genetics give many athletes an advantage, but any athlete will tell you that training - both mental and physical - are the only things that will make an athlete or team win and can frequently make up for predisposed characteristics that may be disadvantageous (shorter stature, smaller frame, etc). As far as meritocratic environments go, sports is certainly among the top.
A claim from a blogger on these issues: performance enhancing drugs in athletics widen the gap between the genetically gifted and the less so. Seems reasonable, but not intuitive.
> It's unclear to me why they think that SV is more meritocratic than anything else. Sports still seems much more meritocratic than SV. Any industry that depends so much on getting funding hardly seems like it would be especially meritocratic -- at least at first blush.
Fair point. Sports may indeed be fairer and more objective than other industries - results are easily measured, and are objective. And it's clear that the tech industry is far from perfect. However, tech does have several things that make it fairer than other industries:
* You don't need a degree to get into tech. Sure, it can help - the article here is about Stanford, one of the best places to study at - but the industry also has plenty of self-taught people. To at least some extent, talent can rise despite not having e.g. parents that can pay for college.
* The tools you need to self-teach are cheap, and getting cheaper. Personal computers are common these days. For comparison, some sports require almost no tools, but some do (e.g. skiing). Music is similar (some instruments are cheap, others not so much). But most careers don't work that way. You can't be a self-taught lawyer or doctor or soldier or social worker.
* Talent has the opportunity to present itself in an abstract way. You can create an anonymous github account and prove your skills, and no one would know any demographic information about you. Something similar has happened in classical music, with people performing behind curtains so as to remove any bias due to their gender or race, and it was very helpful there. For comparison, sports doesn't work that way - you have to see people when they compete, so racial prejudice etc. might still have an impact. In tech and classical music, while things aren't perfect, there is a fairly natural way to diminish such effects, simply let people only see the abstract result of their work.
* Some fields absolutely require a strong mentor, like in academia (perhaps also in sports? I don't know). This disadvantages people that have a hard time finding such mentors, either due to prejudice on the part of potential mentors, or just a lack of connections, or weak social skills. In tech, some people benefit from mentors, but there are also lots of examples of people that have never had a mentor and do very well.
* Telecommuting is much more common in tech than other fields, even if it isn't ubiquitous there. We have the technical capability to let people work from home in tech, in most roles, and it makes things fairer in many ways.
* You make a valid point that industries that depend on getting funding are less fair than others, all things being equal. However, tech has been driving down the amount of necessary funding, through open source software, things like AWS, etc.
Again, tech is far from perfect, and has many flaws. Still, it's worth mentioning the good aspects.
There's some truth in what you're saying, and I don't entirely disagree, but here are where I see you being overly optimistic on the matter of SV's meritocracy.
> You don't need a degree to get into tech.
As soon as the market draws back, the non-BA programmers are going to be shut out (and most will have to go to school). I wish it weren't that way, but that seems to be how these things work. The more pedigreed you are, the less you fall.
That said, a bit of blue-collar street smarts can also serve you well. The people who really take a dive are the middle-class earnest types who aren't high enough on the socioeconomic spectrum to be protected, but were never low enough to learn how brutal the world can be when resources are scarce and contracting.
> Talent has the opportunity to present itself in an abstract way. You can create an anonymous github account and prove your skills, and no one would know any demographic information about you.
You can get an engineer position, but you won't become a founder that way. There are no blind auditions to raise VC.
> In tech, some people benefit from mentors, but there are also lots of examples of people that have never had a mentor and do very well.
What would you call the guy who offers the first introduction to the first investor?
I agree with your points. Regarding the last one, I meant more the case of technical people, that never had a mentor. There are a lot of people like that in SV that are doing great. But I certainly concur that for getting funding, you do need connections, difficult or impossible without them.
As I said before, I'm not saying anything is perfect, and there are plenty of flaws. I would say that more flaws exist in getting funded than in having a successful career - which is most people in tech in SV.
I'm inclined to agree but, honestly, Peter Thiel is one of the better and more thoughtful ones within that set. Closed networks like "the Paypal Mafia" are really, really bad for the world and Thiel is at least showing some interest in looking outside of it. In general, I think he's less elitist than most of them are.
One thing to remember about Silicon Valley is that it's still suburban California. It's fucking provincial. It has orders of magnitude more money (and the house prices reflect it) but it's even more like that "Agrestic" suburb in Weeds than anything in contemporary Southern California.
I still remember, in the 1990s, Northern California thought of itself as "the Good California" because it wasn't the norm for 16-year-old boys to get Ferraris and 16-year-old girls to get boob jobs as birthday presents. In 2014, any perception that Northern California is culturally better in any way is false. Silicon Valley is a lot more brash than Hollywood is. I actually like most Southern Californians that I meet.
I'm finding, as I get older, that West Coast privilege is more irksome and obnoxious to me than the East Coast variety. Most Harvard and Yale grads are down to earth and, to be honest, most Stanford graduate (except MBA, which is sociologically Undergrad++) students that I meet, I like... but this Stanford Welfare that produces Snapchats and Clinkles has got to fucking stop before it brings humiliation to the very idea of technology and sets us back 25 years. As I get older I hate the hypocritical pseudo-liberal privilege of tech more than the stuffy, blue-blooded East Coast variety. People are surprised by this, but those supposedly stodgy and "conservative" investment banks are far better places to be a woman, or minority, or just over 40, than VC-funded tech in the Valley. Silicon Valley is just a depressingly dysfunctional society and, over time, I think people are catching on to the fact and are starting to say, "I don't want anything to do with that shit". That's a real problem, because there are a lot of people doing great work (inside and outside of Silicon Valley) in technology, and I'd hate for their efforts to be hindered or set back by these stupid distractions coming from a few bad Stanford apples.
Have you been on the east coast very much. For a lot of it. It's dog eat dog. The attitude in DC is "your car is worth less than my deductable." There is a reason for the term Massholes, it's not even contested. NYC is priced out because of the finance sector, geography, and the fact that there are too many people there.
I'm not trying to take away from your critcisms of the west coast. But claiming that the Ivy league universities are more humble on the east coast is just blatantly incorrect. It's a status token. Prestige is a big deal.
Personally, I found that Chicago tends to be more blue collar. They bring in a lot of the homeliness of the Midwest. It also connects transport, infrastructure, and manufacturing.
The more I read about Peter Thiel the more I see him as incredibly smart and incredibly anti-competitive. He is open to admitting to it, but it's not a healthy business strategy to do that. (As how we've seen Redhat and others succeeded with an open business)
Yeah, there are things I dislike about the East Coast. (Oddly enough, I'm moving to Chicago in January. I'm really looking forward to it.) I'm not a fan of DC's culture. As for Boston, I like the younger crowd a lot, but there's definitely a lack of progressivism that I see in Boston companies.
New York real estate is obnoxiously expensive, but yes, the people are more down to earth and less pedigree-obsessed than their counterparts in San Francisco. I won't pretend that pre-existing social class doesn't matter in New York; it's just not as big of a deal on a practical level. It matters if you're trying to get into nightclubs or exclusive parties, or to get your wedding published in the Times, but it doesn't infect your work life nearly as much. If you flash pedigree at your job too often, you become a pariah. I know a trader who was mocked after his wedding hit NYT, and I've known other people to be fired (in finance) for having too much visibility (for non-work "society" shit) in the press. Whereas in the Valley, you have to become a celebrity to have a career.
The difference between Stanford and Berkeley is founder with 30% (after the first round) vs. engineer with 0.5%. The difference between Harvard and Cornell is a $100k hedge fund job with a $20k signing bonus and a similar job with a $15k signing bonus.
On Chicago and the Midwest in general, I'd love to see the Midwest take off in technology, and I think it can. It's an underrated part of the country. I was just, for this purpose, comparing the blue-blooded noblesse oblige East Coast mentality to the monstrosity that's grown up in Silicon Valley (it's unfair to apply its stereotypes to the rest of the West Coast).
Moving to Chicago in January. Man, just hope that we have a warm winter, unlike last year. Take it with a grain of salt. I'm a east coaster born and raised. I only moved to chicago a year and a half ago. Something I noticed about Chicago: I met all of my neighbors within a week of moving in. I had never known my neighbors let alone was able to acknowledge them beyond a nod while on the coast.
If you want to go for a beer sometime after you move in. I would be willing to do that. Also, take a look at the CJUG, we're pretty active. I've heard good things about the Erlang and ruby group. It also seems that the code and cans meetup group is taking off.
Speaking of the midwest, can anyone comment on the tech culture in Kansas City? There seems to be a few large tech oriented companies and thriving job market (Sprint, Garmin, H+R Block, ...). Plus as the first metro to get Google fiber, I've heard there's a bit of a start up scene now.
>those supposedly stodgy and "conservative" investment banks are far better places to be a woman, or minority, or just over 40, than VC-funded tech in the Valley.
It's unclear to me why they think that SV is more meritocratic than anything else. Sports still seems much more meritocratic than SV. Any industry that depends so much on getting funding hardly seems like it would be especially meritocratic -- at least at first blush.