‘The Golden Age of Silicon Valley is over’

Professor and entrepreneur Steve Blank thinks that the Golden Age of Silicon Valley is over. VCs are only interested in investing in Web companies that can be sold for billions of dollars and not in investing in companies that produce physical products:

I think it’s the beginning of the end of the valley as we know it. Silicon Valley historically would invest in science, and technology, and, you know, actual silicon. If you were a good VC you could make $100 million. Now there’s a new pattern created by two big ideas. First, for the first time ever, you have computer devices, mobile and tablet especially, in the hands of billions of people. Second is that we are moving all the social needs that we used to do face-to-face, and we’re doing them on a computer…

The golden age of Silicon valley is over and we’re dancing on its grave.

He might be onto something. The Pebble watch was turned down by VCs and then became the most popular project on Kickstarter ever with me than $10 million raised from the people.

There is nothing wrong with investing in software and Web companies, but we need people investing in other science and technology products, particularly ones that take time to mature.