Valley-Ho!

by on May 04, 2008 at 12:00 pm

If there’s one theme that I’ve thought about, talked about and written about the most over my career covering tech and finance it’s the debate of whether you need to relocate to Silicon Valley to be successful. In my case, there’s no doubt I’ve had a better career just by covering business in the Valley, so it’s hard for me to believe anyone who wants to profit from the startup ecosystem wouldn’t be more successful here. Over the years, I’ve read a lot of weak treatises that say Valley isn’t all that great, ultimately coming off either bitter or just naive, but here is a pretty nice piece arguing against Valley relocation. Although, I’m still not convinced.

The strongest point the writer makes is about the damaging affects of the temptation to bulk up on venture capital and not figure out a real business. There is a certain “Valley game” you can get sucked into that can cloud good judgment. Although, I think tying that to Web 2.0 is a bit misleading since the hottest Web 2.0 companies all bootstrapped themselves or lived on angel funding for most of their early days. And besides, really, isn’t knowing when to take money just a test of a good entrepreneur? Hell, I’ve been offered money to start a company before. It’s not access to cash that defines your worth, it’s the discipline to know if that’s the right thing for you and your business.

Per the point about it being harder to retain great people in the Valley, that argument can go both ways. Pro argument for the Valley: the Valley has more talent than anywhere else and they all know the costs and risks of being at a startup. Con: the best people always want to flock to the next hot startup. Personally, I think the latter is overstated. There are certain momentum seekers who will flock to the next pre-IPO name, but those are the people most entrepreneurs don’t want working for them, so actually that phenomenon can be a nice filter. After all smart people work at Mozilla, a company that has said it will never go public. Also, if startups are worried a hotter name will steal their coders, doesn’t that put a healthy pressure on startups to be the best they can. I just generally think competition is good for business. I guess it comes down to what you want: a nice business that might get acquired or to really build something big and lasting. If it’s the latter and you can’t make it in the Valley, are you really good enough to be a billion dollar company?

For good measure, here is a nice piece Evan Williams wrote about it earlier this year. As you’ll see he’s mixed too, but I think his story underscores the more practical point: There’s an undeniable correlation with being in the Valley and success, so if it’s easier why wouldn’t you just move? Evan also points out the social advantages of living in a place where there’s so much creativity and entrepreneurial spirit in the air. Indeed, that seems to be the part people outside the Valley miss. Because it’s one of those things you need to be around to understand. It is the norm to want to build something here– that’s incredibly powerful to entrepreneurs in other parts of the world who are used to feeling like outcasts or silly dreamers.

I’m thinking about this a lot today (while everyone else still seems to be obsessing about Micro-hoo!), as I finish up a column on Isreali entrepreneurs for BusinessWeek. I talked about this a lot over there: Whether all Israeli startups have to move their HQ to the Valley or not, so check out my column this week for more. Israel has benefitted greatly from this symbiotic relationship, but the question is whether it holds them back from being a true technology hub. One interesting note: the people who tend to argue you don’t have to move usually aren’t in the process of building a company. They have either already made their money (frequently, by relocating to the Valley) or are investors, attorneys or other members of the startup ecosystem in markets outside the Valley. In other words, there’s a logical argument that boosters of Atlanta, Austin, London or Tel Aviv can make, but when it’s actually your business and you’re the one trying to mitigate risk of failure, it’s another matter.

There’s something about it that’s like looking at a baseball team’s lineup in April. It could look like a killer team on paper, but somehow on the field they just don’t gel. A city could have every natural resource a startup needs, and somehow lack that cultural glue, support system or whatever you want to call it that is really the intangible reason people don’t leave the Valley once they are here. A lot about this in my book, and I’d love to hear thoughts from any readers once it’s out and I (hopefully!) have readers.

And with that hackneyed analogy, I am off to a Sunday baseball game! Any Israelis: send me some final thoughts before I file!

Israel Photo Collection

by on May 03, 2008 at 12:00 pm

I officially uploaded a sample of photos from my recent Israel trip. It was a hard choice to decide what to upload from a collection of more than 1,000 shots. A handful of these shots were taken on my very first trip to Israel now more than twenty years ago and I included them for giggles. Enjoy!

MIA Friday

by on May 02, 2008 at 12:00 pm

Apologies, dear readers. I have been MIA this morning. Pilates at 8 a.m. and then had to rush Mr. Vinnie to the vet for some issues you don’t want to know about….believe me. He’s going to be fine and actually got a gold star for losing another half a pound. The big fella — who is essentially Tony Soprano in cat form– is now under 20 lbs for the first time, since, um, he was a kitten, I think.

I also swung by the bank to deposit a very, very important check from Penguin. Important because it solidifies the fact that my book is indeed getting published in 15 days and important because it represents the down-payment on our new Victorian in the mission!! Yay!

So, as I get my late start to blogging, mosey over to TechCrunch and read this. Whether you care about technology because you are a rabid early adopter or a rabid stock investor, this is an important issue for you. I’ve only recently started to understand just how hard it is to move companies to the US– even from non-threatening places like the UK. (I mean what are they going to do? Charmingly mock us to death?) Between this and the H1-B Visa issue there’s just way too much of a disconnect between the Silicon Valley ecosystem that WANTS smart people with good ideas and the smart people with good ideas that support the Silicon Valley ecosystem.

Made worse by the fact that 50% of the congress doesn’t even have a passport.

Am I right?

Adam Sher’s Perspective on Art & Life

by on May 01, 2008 at 12:00 pm

Through fashion maven and start-up founder Daria Shualy, I was introduced to Israeli artist Adam Sher, who came to Israel when he was 19 from Russia after serving in the “Red Army.” He brought with him his animation style of art, where he has done an entire series of Disney characters in realistic form.

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In Russia, realism is much more popular than it is in Israel where artistic expression is much more free-form, a style he says he now prefers. He is now working on more abstract pieces. Of the pieces in his southern Tel Aviv studio, my favorite by far was this self-portrait painting he did of himself with his son.

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I was able to spend time with Adam in his studio before leaving Israel earlier this month. Here’s the result of an interesting back and forth dialogue about his life, his ‘coming’ to Israel and how he paved the way for a career as an artist.

Renee: When did you know you wanted to paint? Was it a particular incident or did you always just know?
Adam: I started to paint at a very early age; I always hold a pencil or brush in my childhood memories . I grew up in small village in the Ukraine, where there were no conditions to develop my skills, nor was there any real support from my parents, so it was a hobby until later on.

With pressure from my family, (like a good Jewish boy) I chose to study medicine and after 4 years, I went to serve in the Soviet Army as planned. During my army service (that’s a different story?), we left. After moving to Israel in 1990, I went to college for graphic design and illustration studies and since then, I’ve been an graphic designer and art director.

I have a friend who studied in New York and took me to some of her classes. Here, she showed me what canvas and colors are and the rest is history?

Renee: You speak of traditional realism in Europe, particularly in Russia which is not so much the case in Israel I understand from you and also a friend of mine in Tel Aviv who is an art curator. What are your feelings about both and the value of both?

Adam: Traditional realism wasn’t really accepted here in Israel, maybe because the country is only 60 years old,. After WW2, realism was objected by new art movements. Israeli people tried to build a new society that ignored any tradition, thus influencing the art scene here?

I feel lucky that I didn’t study art seriously in Russia since they focus mainly on technique, and less on creativity.

I think that I’m still a “stranger” here, standing a bit on the outside of the local art scene. Most Israeli artists deal with these main themes: the Middle East conflict, the Holocaust and “self observation”.

I deal more with the aesthetics of average every day things that surround us. Here is what Israeli Maayan Shelef said of my work:

“Adam Sher takes an activist approach to art, initiating artistic events, exhibitions, and community activities. In addition to personal projects he collaborates with groups of artists with a similar vision. His creative process forms a circle; he documents the daily living environment and returns to it in the exhibition stage by choosing alternative spaces that are part of the everyday experience. Galleries alongside nightlife and leisure spaces, institutions and industrial areas. These spaces are like temporary homes for the paintings, as Sher believes that his paintings are meant to be hung in a living room. There they fulfill their conceptual purpose – a connection between the indoor and the outdoor that creates the urban aesthetics. His ambition is to communicate with the viewer in a basic, universal way. His painted world is not ideal or na?ve but sober. The magic and innocence that we find in this sobriety, is what makes us connect to his paintings so deeply.”

Renee: What do you most love about the more realistic work you have done so far?

Adam: I think that my most realistic work so far is the self portrait with my 2 kids (as you saw at my studio (as also shown above) I called it “Millstone” since being a father is a very serious responsibility but it’s the most expensive and important thing you have? after a year and a half break in painting, I went back to the studio and painted Millstone in two days.

My wife doesn’t like the name, but I think it’s honest. For me, realism is not just about a painting’s technique, but its also a method to express our feelings in the most honest way.

I LOVE THAT ANSWER.

Renee: What inspired your work with Disney characters and animation?

Adam: Below Israeli art curator Nir Harmat describes my exhibition “Happy Dead End” where I presented several large paintings of cartoon characters:

“Adam Sher’s embalmed images are realistically copied from miniature Disney plastic figurines found in a dump and bought by the pound. Sher grants new strength to these images. He removes them from their natural habitat and isolates them; taking them out of proportion to a full size enlargement and having them confront the viewer at eye level. In fact, this is a conversion of the real with the signifiers of reality. That is, the images receive autonomic power and the status of functional doubles.”

Renee: What is the best thing about being an artist in Israel? the worst?

Adam: I don’t think it’s that easy to be an Israeli artist because there’s more interest around politics and less on global issues……the artists who have different styles and ideas don’t have too many options to exhibit and sell their work.

Renee: What is the best thing about living in Israel? the worst?

Adam: I’m pretty happy living here. Even though it’s a small country, I feel very connected here, and part of the western culture without an obligation to any tradition (as in Old Europe) or the limitation of being over politically correct (as in the U.S).

The big minus is the ongoing chronic war with the Palestinians that corrupts all spheres of our life here and maybe our escapisms, which is many people’s answer to the situation.

More examples of his work below:

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Nimrod’s Coffee of Love

by on Apr 30, 2008 at 12:00 pm

Rosh Pina in Tel Aviv’s Port. The below is a story of Nimrod’s Coffee house which was opened in 2007 with the purpose of immortalizing the heritage “The Good Life” that Nimrod left his sister in his death. Below is the background of the creation of Nimrod’s Coffee of Love.

Nimrod’s sister writes. I admit. I didn’t believe in love. Actually I was one of those who didn’t believe love existed until Nimrod married Iris. And then everything changed. I needed that my only brother would get married in order to believe that true love existed. “What’s the secret of happiness?” I asked him. “The Good Life,” he answered in his simple way.

We left Rosh Pina. Nimrod became a high-tech manager at Microsoft and I moved to America. In my visits, I discovered Nimrod was having a dilemma which was more preferable; to go with his beloved Iris and little Omer and Vick, to our childhood village, Rosh Pina, or take them to the harbor in Tel Aviv.

What is love? Nimrod taught me. In love, there are no boundaries, no barriers. It’s an endless flow.

I had a tour contract in Mexico and Nimrod was in the middle of preparations to the annual Microsoft convention in Israel when the Second Lebanon War started. My parents and I begged: “leave everything and come over to Mexico.”

Nimrod was drafted, as a reserved soldier with a special emergency call. Before he left home for Lebanon, he wrote his beloved Iris a poem:

At about midnight they called me.
It was the telephone announcing machine.
Her voice said: Soldier – Gathering Spots!
You yelled you weren’t ready
Even though you were –
In your sleep –
To pay the price.

I said, pretty thing. It’s routine.
Every soldier-citizen has to go.
I kissed her, I calmed her as if for real.
I hoped to be back before Fall.

When the tank entered the land of Lebanon
I put on my armour,
Praying you wouldn’t call me on the phone.

A simple high-tech man from Ramat Gan
Taking his children to school.
Fighting terrorists at night.

Tell me, will all this help
Tomorrow or the day after
When I come back
And all this business will be over –

In the end you fight to live.
In the end you fight like animals.
For the silence within.

On August 19 of the Hebrew month of Av, the Hebrew Valentines Day, the announcing officers knocked on Iris’s door.

Hagai Segev on Art, Design & Architecture

by on Apr 29, 2008 at 12:00 pm

Hagai Segev, an Israeli friend of mine recently edited and translated the book Improvisation: New Design in Israel by designer Mel Byers. Hagai was a foreign exchange student near my hometown in the early eighties and 23+ years later, we’re still in touch.

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Hagai is an international art curator in Tel Aviv, where he spends some of his time doing shows for up and coming Israeli artists and some of his time editing design and art books. He started his career as a curator at the Israeli Museum in Jerusalem where he primarily focused on archeology and architecture.

This led him to conduct historical tours of old Jerusalem, including some of the greats in art and literature like Hungarian nobel prize winner Umbrae Curtis, Umberto Eco, Paul Auster and Irish writer Iris Murdoch.

He planned a large exhibition of art history in Jerusalem for the 3000th anniversary in 1995 and for awhile, was also the Director of the Gallery at the Technion Institute of Technology in Haifa. He grew up on Kibbutz Nahal-Oz near the Gaza strip, not that far from Kibbutz Zikim, where I spent time on in the mid-eighties.

Like Zikim, It was also a kibbutz that had separate houses for children, meaning the children were separated from their parents for chunks of time and slept apart even though they lived in the same community.

Today, he is married to a woman who has three translation companies based on one of the Goddesses of Syria. I spent Shabat with them this year, an evening I won’t forget anytime soon. Sadly, I missed Anat’s exquisite chocolate cranberry cake since I had a redeye to catch.

Hagai gave me an overview of some of Tel Aviv’s history, which included a long slow walk down Rothchild Boulevard. The infamous Bauhaus Architecture from the 1930s and 40s remains, although they apparently moved some of these buildings forward and built larger more modern complexes behind the Bauhaus houses.

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Below are examples of some of the designs from the Improvisation book that were publicly displayed at trendy shop LeEla on Bait Banamal in the Port area of Tel Aviv.

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More on Ayelet Noff interview: Miriam Schwab

by on Apr 29, 2008 at 12:00 pm

Well-know Israeli blogger  Miriam Schwab was among the myriad people who have had trouble getting authenticated to post comments on my blog (sorry), so I am posting this note for her re my interview with Ayelet Noth:

“I’m sure Ayelet didn’t quite mean what it sounds like she said, but in
any case I would like to point out that women can have kids and be very
entrepreneurial. In fact, giving birth can (strangely) act as a
catalyst for making sweeping and exciting changes in one’s professional
life.

I got married really young, and had a bunch of kids by the time I was
25/26. Not only did I not quit and park myself in my kitchen, each kid
pushed me to make changes in my career. I had three kids while in
university. After the third was born I decided to get my first real
job. The next one led me to quit and start my own biz. The next led me
to discover and explore the world of blogging and social media, and
turn my business into a social media marketing service provider.

There is enough of a stigma in the workforce against women with kids,
so we women should watch our words and make sure that it is very clear
that we can have kids and careers. Actually, the fact that we have
personal lives, I think, contributes to our value at work. We don’t
mess around (too much), and are very efficient and focused.

As someone once said to me: “if you ever need something done, ask a
busy person.” Women with kids are busy, and we’ll get things done. “

Twitter: Not Mainstream, but Seeping Out of the Echo Chamber for Sure

by on Apr 28, 2008 at 12:00 pm

One major flaw in Kara’s informal survey: Equating this wedding she was at with “outside the Silicon Valley echo chamber.” I’ve been stunned how quickly people outside the Valley have started following me on Twitter. My in-laws asked my husband if it was an invasion of our privacy to “follow us” and while I was out of town my parents– who use absolutely zero social networking or social media sites and are doing good if they read anything I write — sent an email to my husband that read, “What is a Twitter? Is it just like a one-line blog?” I was floored. And, let’s not forget international. Every time I travel outside the U.S. I’m stunned by Twitter’s ubiquity. After all, mobile apps are much stronger outside the U.S. In my own informal polls, people in Europe and the Middle East rank Twitter among the most global companies in the Valley, well above Facebook even.

In short, Twitter isn’t mainstream, but it’s getting outside the echo chamber fast. The problem is it’s not necessarily in predictable ways. It’s in random spurts.

Hertzel Street

by on Apr 28, 2008 at 12:00 pm

Hertzel Street in southern Tel Aviv. I loved this building. It reminded me in some ways of the buildings in the old mill town where I grew up in upstate New York. Today, after the leather factories are no more, the delapitated buildings live on.

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Recent Works of Haya Ran

by on Apr 27, 2008 at 12:00 pm

Below are recent works of Israeli artist Haya Ran. These paintings were based on photographs of family members from the twenties and thirties when they lived on a kibbutz in the south. Her fixation with legs in these paintings was apparently due to the fact that she saw an emphasis on young girls legs in the photos and wanted to highlight them in her work to demonstrate this point.

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