I spoke at one of the sessions at the WEF today, and shared a reciepe for how to get rich in the valley I heard when I got to the Silicon Valley...
There is a classic three stage plan for success in our neck of the woods.
(1) come up with a great idea for a startup, write it down on a business plan (make it short and concise, practice on a napkin), go to Sandhill road (where all the Venture Capitalists reside), shake a tree (any tree), shake it well, shake it until a Venture Capitalists drops, show him the plan and take $5M in funding
(2) take the money, find a great team, build your product, see the company grow, take the company public, sell your shares
(3) Go climb a tree on Sandhill road
Now the problem with the middle-east is that whenever you dig in the ground to plant a row of trees you are bound to find oil, so there are no trees to climb and no one to climb on them. Yet every great industry is bound to come to an end not because you run out of its product, but because a great disruption occured. As they say the stone age didn't end because we ran out of stones...
So what are the enterprenures in the middle-east to do? I proposed to the assmebled leaders from the region it might be a great time to start shaking an oil rig. With the money that is coming into the region it is time to find the energy experts who have climbed the rig and show them some great alternative energy ideas to get funded. This is the best time to use oil money to extend the definition of the oil industry into a true energy industry that goes forever, with projects that are sustainable leveraging project financing and balancing the risk of a portfolio that is too heavily fossil based.
I got an increadibly positive reaction from all assembled about my comments.
shai
The problem is lack of motivation.
If one sits on a treasure box, there will be no drive to spend that treasure in order to find another.
Only a clear forecast, deeply understood, that a real upcoming energy crisis, due to depletion of fossil resources, will be able shakes that rig.
ezry
Posted by: Ezry Keydar | May 19, 2007 at 06:48 AM
Shai,
An excellent article. I linked to your article from my blog. Thanx for sharing your insight and experience. I want to be like you when I grow up. I read the WSJ article last week. Unlike other people who spewed the usual commentary, I referenced the article on my blog, with the spotlight on you. I am at your service, should your future plans require another successful Intrapreneur on your team.
Cheers!!
Sir Reid
Posted by: C. E. Reid, Savvy Inrapreneur | May 19, 2007 at 09:21 AM
Very interesting concept, Shai. Whether an entrepreneur would be the recipient of "feel-good money" intended to assuage real or imagined discontent over the petro cartel, or the object of a legitimate venture investment funded by oil profits and focused on diversification would, I assume, make little difference to the startup - it's what you do with the investment that matters. I think if a few of them hit the ball out of the park, it may change thinking toward the latter.
It goes without saying that you'll have no problem getting funding - the chess game element, I suppose, is to find an investor that brings a lot more to the table than a bag of gold.
Onwards and upwards!
- Rick
Posted by: Rick Bullotta | May 20, 2007 at 02:46 AM
I'm just starting to read Empires of Light, and an early theme of the book seems to be JP Morgans influence on the introduction of electric light into the mainstream. His contribution to the industry wasn't just his billions of dollars, but his personality and influence on the people he interacted with, ie. world leaders. Clean energy will permeate the world (no doubt), but finding the killer application, and the right 'influencer' will be essential to gaining a large share of the trillions of dollars to come.
The killer application of electric light was instantaneous light in Morgan's own home (which was constantly gutted and re-gutted with new wires). He was able to show it off by inviting his uptight friends to enjoy his new light toys.
Figure out the killer app for clean energy, and get the most influential people of the world to use it at its greatest "need-point." Eg, free gasoline.
Take into consideration, it might not be an individual, rather a corporation or nation utilizing clean energy.
http://reviews.cnet.com/i/ss/tesla/Tesla_roadster8_440.jpg
http://video.google.com/videoplay?docid=7352118104883452737
Which gave me an idea. Could NASCAR be the killer app for the electric car?
Posted by: Benjamin Bakhshi | May 20, 2007 at 11:07 AM
Hello,
just a small post from France. First thanks a lot to Shai who give us the opportunity to share ideas. As you all, I'm fascinated by this new World coming soon and from which we see already some premises. Electric cars for everybody that you charge at home with your own electricity production. So many loosers in the conventional industries and so many winners in the new ones that will generate !
Petrol companies, conventional car manufacturers, energy producers and distributors, even the states (in Europe mainly), all have only money to loose.
Innovation can only come from new players sustained by the motivation of the consumers, refusing conventional offer (thermic cars). We need you, Shai, to face this challenge.
Posted by: Jean Louis | May 22, 2007 at 02:47 PM
Jean Louis,
You hit the nail on its head.
“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm (indifferent, uninterested) defenders in those who may do well under the new. " (Nicolo Mchiavelli, “The Prince”).
Posted by: Oded Roth | May 22, 2007 at 10:22 PM
Shai,
The analogy of the tree is definetly one to remember, and I hope you don't mind I use it sometime if I get the chance.
There are fairly new ideas with a similar concept as your oil rig one, which I would really encourage as I am quite young (23) and need funding for my ideas. However, in reality in Spain (for example) - ideas aren't invested on, but business with minamal risks with a very traditional setting. This is rather frustrating as writing a good business plan or even trying to assemble a team isn't the problem, but the funding be it from the country or (even worse) a foreign country. My request to your 'oil rig' would be to be as open as possible and believe in the younger generation for new ideas.
Nonetheless your blogs do serve as an inspiration for at least a mouldable mind like mine (or at least for the moment being) and always 'ignite' a spark of hope to keep pluggin' in.
Kind Regards
Posted by: Vivek | May 23, 2007 at 08:31 AM
Good to see that there is an evolving grass roots movement starting in collaboration mode online. Folks are using YouTube and blogging and discussion forums to seed the hope of how to survive in A World Without Oil. Having such a conference as you are participating in smack in the geographic epicenter makes much sense.
Posted by: Marilyn Pratt | May 23, 2007 at 09:10 PM
Some interesting action here: http://worldwithoutoil.org/manifesto.aspx
Posted by: Marilyn Pratt | May 23, 2007 at 09:13 PM
Shai, see this post and comments: http://www.ynet.co.il/articles/0,7340,L-3403278,00.html
Posted by: Ori Matalon | May 24, 2007 at 02:53 AM
I have a picture of your father and your mom at my bar-mitsvah in august 1968. This was in my aunt's LISA AZAGURY 's house in quiriat Haim.
There was a little children in the arms of REUVEN.
I am wondering if it was you???
Posted by: philippe.edery | May 29, 2007 at 04:57 AM
Interesting articel. I am asking, how we can make more advertising for alternative Energy. We need also bring this topic into the book of schools and make this popular. When I visit my home country Iran, I am wondering why the people on the street knows less about this kind of energy.
Regards
Ramin
Posted by: Ramin | May 31, 2007 at 09:08 AM
With the number of VCs growing, do you actually think “VCs are only interested in coming to the rescue of victory”? Sramana Mitra, Silicon Valley entrepreneur and strategy consultant writes a series of articles on VCs. Read: http://sramanamitra.com/articles/investment-thesis-interviews-with-vcs-angels/ and http://sramanamitra.com/articles/serial-entrepreneur-interviews
Posted by: Mehnaz | July 06, 2007 at 12:12 AM
Hi
Very interesting information! Thanks!
Bye
Posted by: tredinertok | July 10, 2007 at 12:31 PM
I read this morning about the new electric car venture lead by Shai Agassi.
I would like to suggest the following:
1. A pool of 2 seats electric cars owned by the city hall will be made available to citizen
2. The car will be operated by inserting a combined driving licence and credit card.
3. People will use the electric cars and pay small ammounts per milleage. They will leave the car at their destination for the use of others.
4. City Hall employees will charge the cars during the night and redestribute them to residential areas for the next morning.
5. Barriers around the city center will enable only small electric cars to enter the city center in the rush hours.
Posted by: Eliezer Zohar | August 27, 2007 at 02:38 AM