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- <!DOCTYPE html><html><head><title>Brandon Smietana Answers - Quora</title><script>_w2replay=(function(){var b=[],a=[],d,g=/^a$/i;function c(j,i,h){var k;if(j.addEventListener){j.addEventListener(i,k=function(l){if(h.call(this,l)===false){l.preventDefault()}},false)}else{if(j.attachEvent){j.attachEvent("on"+i,k=function(){return h.call(this,window.event)})}else{return}}b.push([j,i,k])}function f(j,i,h){if(j.removeEventListener){j.removeEventListener(i,h,false)}else{if(j.detachEvent){j.detachEvent("on"+i,h)}}}function e(h){c(document,h,function(j){var i=j.target||j.srcElement;a.push({type:h,elem:i,cursor:i.style.cursor});i.style.cursor="wait";if(g.test(i.nodeName)&&i.getAttribute("href")==="#"){return false}})}e("mousedown");e("mouseup");e("click");return function(k){if(d){return}d=true;while(b.length){f.apply(null,b.pop())}for(var h=0,j,l;j=a[h];++h){if((l=j.elem).style.cursor=="wait"){l.style.cursor=j.cursor}if(k.inDom(l)){k(l).trigger(j.type)}}}})();</script><meta http-equiv="X-UA-Compatible" content="IE=EmulateIE7" /><link rel="search" type="application/opensearchdescription+xml" href="/opensearch/description.xml" title="Quora" /><!--[if IE]><link rel="stylesheet" type="text/css" href="/static/ie.css" /><![endif]--><meta property="og:site_name" content="Quora" /><meta property="og:description" content="&quot;There is no such thing as perfect. There is only growth.&quot;" /><meta property="og:title" content="Brandon Smietana on Quora" /><meta property="og:url" content="http://www.quora.com/Brandon-Smietana" /><meta property="og:image" content="http://d2o7bfz2il9cb7.cloudfront.net/main-thumb-6673-50-iQY07uHy4EIxliIOKB2oVtdnn7FsdmZc.jpeg" /><meta property="og:type" content="article" /><meta name="robots" content="noarchive"/><link href="http://d1vgw4v7ja2ido.cloudfront.net/-c78da7565ff11063.css" rel="stylesheet" type="text/css" /><link href="http://d1vgw4v7ja2ido.cloudfront.net/-87e50edafc9e726e.css" rel="stylesheet" type="text/css" /></head><body><div><div id="ld_RGxTHo_430"><div style="display:none;" id="live_mutation_pending"></div><div class="header wrapper" id="layout_header"><div class="contents"><div class="logo"><a class="w1" href="/" id="__w2_yUZcPQ3_logo">Quora</a></div><ul class="nav_list"><li class="about"><a href="/about" id="__w2_fNUhdTh_link">About</a></li><li class="login sub"><a href="#" id="__w2_PWl88SH_login_link">Login</a></li><li class="signup"><a href="/signup/index" id="__w2_zHNhTXl_link">Sign Up</a></li></ul><div class="search w3_5"><div class="search_contents navigator"><form class="search_form" action="#" onsubmit="return false;" method="get" name="search_form"><div class="search_input"><div class="input_wrapper"><span class="context" id="__w2_kpOpESw_context"></span><input class="question_box" group="__w2_IbFBdkT_interaction" autocomplete="off" type="text" placeholder="Find Questions, Topics and People" value="" maxlength="150" w2cid="IbFBdkT" id="__w2_IbFBdkT_input" /><a class="clear_navigator hidden" href="#" id="__w2_IbFBdkT_clear">&nbsp;</a></div></div></form><div id="__w2_IbFBdkT_results_shell"><div class="results_frame" id="__w2_O54NIjk_results_frame"><ul id="__w2_O54NIjk_results_list"><li class="instruction" id="__w2_O54NIjk_list_item_0">Find Questions, Topics and People</li></ul></div></div></div></div><div class="add_question e_col w1"><span class="add_new_question"><a href="#" id="__w2_IbFBdkT_add_new_question">Add Question</a><span class="hidden"><a href="#" id="__w2_sf92wPj_link">Add Question</a></span></span></div></div></div><div id="ld_RGxTHo_431"></div></div><div class="pmsg_container main wrapper hidden" id="__w2_O0zqfXf_pmsg_container"></div><div class="main wrapper"><div class="user_profile contents content main_content"><div id="ld_RGxTHo_432"></div><div class="page_header row main_col"><div class="e_col w2_5 side_col"><span id="ld_RGxTHo_433"></span><span id="ld_RGxTHo_434"></span></div><div class="w5_5 e_col"><div id="ld_RGxTHo_435"><h1><div class="profile_icons"><a class="sn_icon" href="http://twitter.com/RKHilbertSpace" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-f2e98b581d7a2736.ico" /></a></div><span class="name_span">Brandon Smietana</span></h1></div><div class="w4_5"><div id="ld_RGxTHo_436"><div class="user_topic_sig">Founder of Symbolic Analytics</div></div></div></div><div id="ld_RGxTHo_437"><div class="tabs w8" style="margin-left:-10px;"><a class="link" href="/Brandon-Smietana">Profile</a><a class="link" href="/Brandon-Smietana/about">About <span class="light normal">(</span>6<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/questions">Questions <span class="light normal">(</span>984<span class="light normal">)</span></a><a class="link selected" href="/Brandon-Smietana/answers">Answers <span class="light normal">(</span>446<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/log">Edits <span class="light normal">(</span>7588<span class="light normal">)</span></a></div></div></div><div class="col w4_5 main_col"><div id="ld_RGxTHo_438"><div id="ld_RGxTHo_445"><div class="pagedlist_item" id="ld_RGxTHo_461"><div class="feed_item stream_feed_item p1" id="__w2_SVafeCS_item"><div class="e_col w4_5"><div id="ld_RGxTHo_482"><div class="feed_item_question"><h2><span id="ld_RGxTHo_522"><span id="ld_RGxTHo_682"></span><a class="question_link" href="/What-are-the-implications-of-a-global-banking-system-that-is-completely-anonymous" id="__w2_fVwNCHs_link"><span id="ld_RGxTHo_683"></span>What are the implications of a global banking system that is completely anonymous?</a></span></h2></div></div><div id="ld_RGxTHo_483"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_U6SDl9A_answer_voting"><div id="ld_RGxTHo_542"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_yXOaQuG_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_yXOaQuG_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_U6SDl9A_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_FKTQJIL_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_FKTQJIL_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_FKTQJIL_menu_contents"> </div></div></span><div id="__w2_U6SDl9A_answer_voters"><div id="ld_RGxTHo_543"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Russell-Stadler">Russell Stadler</a> and <a class="user" href="/Seb-Paquet">Seb Paquet</a></span></div></div></div>Nothing.<br /><br />There is already 800 in billion laundered money in banks.  Completely anonymous money is unlikely to change criminal transactions very much.<br /><br />Terrorists and others are using money transfer network such as the hawala or funneling money through non-profits.  The only thing that would change is the government&#039;s ability to monitor the transactions.  Anonymous payment methods may not even affect the government&#039;s ability to effectively monitor these transactions as the government is primarily using network analysis techniques anyways.  The identity of the people do not matter so much as their network of relationships.<br /><br />Government control and can tax the point of sale.  A Walmart could reduce its taxes to the government by not reporting sales and taking money out of the cashdrawer and righting off the sold inventory, but that does not work at scale.  Only small cash businesses such as pizzerias and laundromats are able to do this without suffering fines and retribution by federal government.<br /><br />Bribery would be as easy with anonymous digital currency as it is with cash.  However we would only see kickbacks transition from being informal to formal relationships.  The government&#039;s ability to regulate &#039;political economy&#039; would be decreased.  You could argue whether this is good or bad for the economy.  You could argue that our current system privileges those with political connection<wbr />s and backrub relationships and excludes the masses from participating in the political economy.  Legalized or deniable bribery may increase scrutiny on public offices and subject them to greater monitoring and oversight, which may be a net improvement over the current system of implicit bribes and no transparency or oversight.<br /><br />We are actually better at enforcing payroll tax compliance at large cash businesses like Walmart (where many consumer do not have credit cards and bank accounts) than we are about using oversight to detect and regulate unlawful &#039;political economy&#039; transactions such as bribery.<br /><br />The government also has systems in place for collecting payroll taxes.  These systems are effective, despite the incentive of the employer and employee to lower reported wages (circumventing payroll taxes) and pay the employee directly (&#039;under the table&#039;), circumventing government imposed transaction fees (taxes).  This type of circumvention only happens in small cash businesses, but not at places such as Walmart.<br /><br />As the government controls the point of sale and is able to collect payroll taxes and sales taxes, its likely the the government&#039;s revenue would not be impacted by anonymous currency to a greater extent than it is by the usage of cash.  In fact, the anonymous digital cash transactions may be easier to monitor for the government.  It can mandate businesses use reporting devices and that businesses receive revenue and pay employees from government controlled or approved accounts.  The switch to digital currency and elimination of cash would improve government revenue for these activities, compared to transactions where cash is used.<br /><br />Where the government would lose tax revenue to evasion, is in the provision of online services, digital goods and investment instruments.  Online service providers (PHP programmers from India/China, iPhone application developers, web-designers) can receive revenue anonymously and c<wbr />ircumvent IRS reporting requirements, with the person controlling the account in a position to deny control of the account and avoid recognition of the revenue.  This is however no different than having an online businesses today owned by a bearer bond IBC which has puppet directors in another foreign country and which provides full deniability for the controller of the back accounts of the corporation.  Anonymous banking would only make these transactions easier, although it is harder to imagine that it could possibly be easier to do than it already is, when you consider the existing system.<br /><br />If you are very rich, there are better ways of creating intergenerational wealth and avoiding taxation, which are extremely effective.  For instance, most equity in Israel and many European countries is controlled by a small number of families.  They do not own the companies directly, but have controlling interests in companies which control these companies.   Less than 20 family control about over 30% of the equity in Israel&#039;s public traded companies, through controlling interests.<br /><br />What use is 30 billion dollars if you cannot spend it?  It is much better to have a dual class share structure, where one class of shares has 20 votes to the common share.  A class of shareholders controlling 5% of market-cap controls the company.  Also, no capital gains are paid until shares are sold off.  When they are sold, the seller pays 15% capital gains tax (compared to +45% capital gains tax from wage income).<br /><br />It therefore seems unlikely to me that the very wealthy would find much advantage in an anonymous currency system for the purpose of avoiding taxation (as they are already able to do that very effectively).  For instance, why would you want to realize $1 in revenue untaxed?  You would want that revenue going to your publicly traded company trading at a 20x P/E multiple.  The 1 dollar in revenue creates $20 in market cap, if you owned 10% of the company, then $1 in revenue to the company is $2 to your share-value at a 20x P/E multiple.  If you own 50%, that $1 is $10 in market cap.<br /><br />You take that $10 in market-cap increase and take a loan against your shares and invest them in 8% corporate bonds...  The advantages to the financial and corporate elite of the existing system, far out weigh the advantages of anonymity (as long as the government and system are stable).<br /><br />Smaller business owners who do not have access to the public market would however find a tax advantage resulting from the unique capacities of digital currency systems.<br /><br />Effectively anonymous monetary systems are developing in Africa (cell phone mediated payment networks).  I think there are reasons that such systems would develop and that we are about 20 years away from some cryptography based monetary systems (there is a strong financial incentiv<wbr />e for smaller countries to provide these services).<br /><br />They really will not change anything however.  Drugs will still come in from Mexico into America.  However, instead of drugs coming from Mexico to America and cash going from America back to Mexico, drugs will go from Mexico to America and cell phone text messages will go from America to Mexico.<br /><br />However, with these monetary systems, even if anonymous; a balance of payments will need to be maintained between entities.  If goods and services are provided in America (drugs) and payment is made to Mexico, the Mexicans will need to be able to purchase goods and services with their payment (presumably to be delivered or consumed in Mexico).  Currently, A provides goods to B and B provides cash to A.  The only difference under unregulated digital currency is that A provides goods/services to B and and B transfers currency to C to be held for A and A transfer currency to D in payment to E for services consumed by A.  Its basically exactly the same as the current cash transactions.<br /><br />In fact, there are few limitations that drug cartels face when using the existing banking system.  Mexican drug cartels have front companies with revenue from drug sales and have been known to purchase capital assets, (such as boats) which are used in the drug business.  For instance, the same boat will end up on a California shore (empty/abandoned, but was full of marijuana or crack-cocaine) and then end up on auctioned by the state, purchased by the same companies and end up back on the shore again.  This can happen 5-8 times for a single boat; it will be seized, determined to have been used for drug transport and then repurchased and seized again several times.<br /><br />The governments have this information and record these transactions, but they do not use the information effectively.  Not much would fundamentally change if governments and law enforcement did not have access to information.  In fact, stronger enforcement or usage of the information which is available would only have the effect of greater concealment by criminal organizations (which has exactly the same effect as adoption of anonymous systems for settling balance of payments from a law enforcement perspective!).  The fundamental issue is border control and the inability of nation states to police their borders against the import of drugs, weapons, immigrants and sex slaves.  If a nation state cannot prevent kidnapping or crime within its borders, it is easy to say &quot;digital currency will make this problem worse&quot;, but the problem is with the nation state losing its monopoly on the use of force within its borders, or the nation state losing the ability to enforce its regulations upon its population or to secure its borders against the import of drugs or weapons.<br /><br />Also, it is likely that the advantages of anonymous digital currency would not be sufficient enough for criminal organizations to abandon the convenience of the existing financial, corporate and legal structures.  For instance, criminals will say &quot;I can get a bank against the income of my front company to finance the purchase of capital assets; but how do I get a bank loan against my anonymous digital currency income?&quot;<br /><br />Without a fully developed modern financial systems around the anonymous digital, it is of limited utility for anything but evading taxes.  It would be almost useless for the purpose of capital flight, unless it was possible to buy bonds or securities while skirting reporting requirements.  You would need a broker dealer willing to do this (hence the system is only feasible if state sponsored by at least one sovereign nation).<br /><br />It is not clear to me that you can security assets or enforce property rights without enforcement by a sovereign nation state.  So maybe you could buy equity in an online digital goods business which receives all payments through anonymous digital currency.  However, how would you audit the books of that business?  Who would enforce the voting rights that your equity ownership entails?<br /><br />You need a system of digital contracts and some advances in secure multi-party computing and<wbr /> cryptographic protocols before you can start developing a shadow finance system on top of the digital currency, which would be independent of right enforced by nation states.  That is still a long ways off.<br /><br />The ownership and transaction structures which would emerge would have to reflect what is enforceable through pr<wbr />otocols and would likely end up being much different than the investment instruments we have in our current system.  Therefore we will likely be seeing a hybrid system, for at-least the next 80 years.<br /><br />For an example of a &#039;hybrid system&#039; that governments are trying to regulate out of existence, look up &quot;hawala&quot;.  The hawala networks rely more on trust and social relationships than cryptography.<div class="action_bar" id="__w2_U6SDl9A_answer_actions"><span id="ld_RGxTHo_544"><a class="view_comments supp " href="#" id="__w2_eK3yC5F_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_545"><a class="answer_permalink" href="/What-are-the-implications-of-a-global-banking-system-that-is-completely-anonymous/answer/Brandon-Smietana"><span class="datetime" id="__w2_h4CvQL8_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_642"></span></span></div><div id="ld_RGxTHo_546"><div class="comments answer_comments hidden" id="__w2_TOt1FhY_answer_comments"><div id="ld_RGxTHo_643"><div id="ld_RGxTHo_722"><a name="comment_98946"></a><div class="comment p0_5" id="__w2_L6llDZo_comment"><p class="comment_text">Brandon, oh let me count the ways :-), if the drug cartels don&#039;t have any problems useing the current financial system why do they still fly and ship by smugglers highspeed boats bails and bails of 100 dollar bills.<br /><br />The Isreali government understood that about organized crime in there country and in the 1980&#039;s I think date may be wrong but not what I describe. They redesigned there cash and made exchanging old cash for new cash a higly regulated process and did not pre announce what would happen. Thus it was estimated in the press that they were able to confiscate a very large percentage of organized crimes assets. Your system if controlled by a government might make a move like that easier but I think it would do just the opposite. If the US government would simply do that every ten years organized crime would not be anywhere near as profitable.<br /><br />Now as to your proposed system not effecting tax collection you do understand that sales tax and payroll tax are not the only or even majority forms of taxes collected in the US. Income Tax, Property Tax, Corporate Income Tax collect the lion share of taxes paid in the US. Income tax paid by small buisness is a huge percentage of that tax revenue and is precisely were your system would most assuredly make tax avoidance easier. The idea you seem to have that only elites are active in capital markets is also not as black and white as your presentation makes it sound.<br /><br />I stand by my answer that an anonymous e-currency system would; Money laundering, blackmail, extortion, human trafficking, drug sales, tax evasion, fraud, and the complete disruption of markets that depend on transparency, would all be made much easier by a truly anonymous banking system.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gTGMnOG_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_723"><a name="comment_99016"></a><div class="comment p0_5" id="__w2_oC5dZj5_comment"><p class="comment_text">&quot;The idea you seem to have that only elites are active in capital markets is also not as black and white as your presentation makes it sound.&quot;<br /><br />70% of Americans live paycheck to pay check.  Bill Gates has more assets than the bottle 50% of the rabble.  I do not see Wallmart workers starting public companies or earning hundreds of thousands a year arbitraging complex <wbr />financial products.<br /><br />If you have a jet an a publicly traded company or use advanced financial produc<wbr />ts to achieve leverage, then you would probably be considered an &quot;elite&quot; or an &quot;insider&quot; by most reasonable definitions.<br /><br />&quot;if the drug cartels don&#039;t have any problems useing the current financial system why do they still fly and ship by smugglers highspeed boats bails and bails of 100 dollar bills.&quot;<br /><br />They are using the banks loans against their drug profits to buy the boats and planes.  All the enforcement efforts only increase the cost of capital for criminal organizations by ~30%.  Its just the cost of doing business for these organizations.<br /><br />Over half of the problems you suggest  anonymous digital currency will cause are &quot;border control problems&quot; that have nothing to do with currency exchange.  These criminal organisations al<wbr />ready have anonymous currency systems.  They are bulk shipping &quot;stored valued cards&quot; across the boarder and selling them at a 5% discount on markets, to settle balance of payments.  The system is already effectively anonymous for them.<br /><br />Large criminal organizations already have systems in place that accomplish this objective.  The only thing that is change is that the public is gaining access to anonymous banking and it is no longer reserved for governments and organized crime.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_X6lxf6F_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_462"><div class="feed_item stream_feed_item p1" id="__w2_RCn7goH_item"><div class="e_col w4_5"><div id="ld_RGxTHo_484"><div class="feed_item_question"><h2><span id="ld_RGxTHo_523"><span id="ld_RGxTHo_684"></span><a class="question_link" href="/How-focused-should-a-start-up-be-on-being-acquired" id="__w2_tvpPRWT_link"><span id="ld_RGxTHo_685"></span>How focused should a start-up be on being acquired?</a></span></h2></div></div><div id="ld_RGxTHo_485"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_jcZdXje_answer_voting"><div id="ld_RGxTHo_547"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_gCL2yiO_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_gCL2yiO_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_jcZdXje_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_ox5fWTd_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_ox5fWTd_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_ox5fWTd_menu_contents"> </div></div></span><div id="__w2_jcZdXje_answer_voters"><div id="ld_RGxTHo_548"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">16</strong> votes</span> by <span id="__w2_ameMMUA_view_all"><a class="user" href="/Anthony-Foster">Anthony Foster</a>, <a class="user" href="/George-Godula">George Godula</a>, <a class="user" href="/Ian-Mercer">Ian Mercer</a>, </span> <a class="more_link" href="#" id="__w2_ameMMUA_view_all_link">(more)</a><span class="hidden" id="__w2_ameMMUA_all_phrases"><a class="user" href="/Anthony-Foster">Anthony Foster</a>, <a class="user" href="/George-Godula">George Godula</a>, <a class="user" href="/Ian-Mercer">Ian Mercer</a>, <a class="user" href="/John-Marsland">John Marsland</a>, <a class="user" href="/Ralph-Barbagallo">Ralph Barbagallo</a>, <a class="user" href="/Rishi-Natarajan">Rishi Natarajan</a>, <a class="user" href="/Gerard-Mills">Gerard Mills</a>, <a class="user" href="/Amund-Tveit">Amund Tveit</a>, <a class="user" href="/Joseph-N.-Liss">Joseph N. Liss</a>, <a class="user" href="/Cyril-Ebersweiler">Cyril Ebersweiler</a>, <a class="user" href="/Aaron-Weyenberg">Aaron Weyenberg</a>, <a class="user" href="/Lucas-Dailey">Lucas Dailey</a>, <a class="user" href="/Warrick-Taylor">Warrick Taylor</a>, <a class="user" href="/Douglas-Drouillard">Douglas Drouillard</a>, <a class="user" href="/Abhishek-Amit">Abhishek Amit</a> and <a class="user" href="/Keith-Pinson">Keith Pinson</a></span></span></div></div></div>You need an exit plan from day one.  Read this book;<br /><br />Early Exits: Exit Strategies for Entrepreneurs and Angel Investors (But Maybe Not Venture Capitalists) <a href="http://amzn.to/bLyS75" rel="nofollow" target="_blank" class="external_link">http://amzn.<wbr />to/bLyS75</a><br /><br />When you start your first eight companies, you will do it wrong.  There will be dozen of things you wish you knew that you were unaware of.  Planning for exits is one of them.<br /><br />Your objectives for your company and its exit are going to affect many of the decisions you are making and you should make these choices earlier rather than later.  Why do I say that?<br /><br />Here is a graph of time of VC financing to exit<br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-1d4fe0f3434be165c4975bfb1d4d35ef" /> <br />If you take VC, your company is a 12 year commitment before an exit.  You should sit down with your founding team and make sure that everyone is aligned.  Are you building a company that you will be working at in 20 years or are you trying to build a company and flip it for a couple million in 4 years?<br /><br />You will find that different members of your company have different time horizons and objectives.<br /><br />You may also find that by taking the VC route, you increase your exit time and risk, but do not increase your rate of return.  A small 30 million dollar exit in 4 years is often better than a 12 year exit at 120 million with 3 rounds of VC and dilution.<br /><br />You also have to ask &quot;Can I exit at 1-2x after taking VC&quot; and that should influence your choice to take VC.  If you take VC, the VC has 3 separate ways of blocking an M&amp;A event.  You might like the exit at that valuation and may want to do the M&amp;A and move on, but you cannot; your investors will not approve the deal below 3x return.<br /><br />You may also find yourself with an M&amp;A offer and it seems like the last chance before you run out of money and its a good deal for you, but the VC vetos it and then puts a down-round in the company and wipes out your equity.<br /><br />So you have to ask &quot;What happens to my shares if there is a recession or unforeseen event and the company takes a down-round?  What is the probability of that happening in my market?&quot;  If your market is software and 100% margin, you can probably cut back to profitability.  However if you are a manufacturing company with inventory and debt to finance machinery/invento<wbr />ry purchases and your margins are 8%, then a recession could impact your sales enough to put you in a cash crunch.<br /><br />The reality is that your choices about the financing of your company affect your strategic options.  Selling for 10-30 million is easy, there are hundreds of buyers.  Selling for 120 million is more difficult, there will be fewer potential acquires and the company will need to get board approval for the process.  Between 30 million and 300 million valuation is a no-man&#039;s land.  You are too large for an easy M&amp;A but too small to go public.<br /><br />It is even worse to be a technology company with a 300 million valuation (lots of users) and no revenues (Slide, Digg, Ning, link shorteners, etc...).  You cannot IPO because you have no revenues, but your valuation is too high for anyone except Microsoft, Yahoo or Google to buy you.  You only option is taking on more and more VC and hoping that someone big decides to buy you someday.  For these companies, a 30 million dollar &quot;Flickr&quot; type exit early on may be better for the founders and empoyees than growing extremely large without any path to revenue (Foursquare).<br /><br />You want to make the decision whether you will &quot;Go for the Gold&quot; and build the company to IPO or to flip the company early.  You need to make this decision when you start the company, because you will find that different members of the management team will have completely different ideas about the timespan and objectives of company.<br /><br />&quot;<b>the decision to accept VC investment increases the time to exit by approximately 12 years, not the median time of 7 years.&quot;</b><br /><b><br />&quot;</b>When VC investment was added, the <b>time to exit increased to somewhere around sixteen years after the entrepreneurs started and twelve years after the angels invested.&quot;</b><br /><b><br /></b>You need to look at the data and determine what the objectives for your company are and need to make decisions in light of those objectives.  This requires having an early idea of your exit strategy.<br /><br />There are several things you can do to structure your company so that it is more desirable as a target for M&amp;A and those are things you need to do from day one.  They are covered pretty well in that book.<br /><br />One thing to keep in mind is that if you are small company, companies that are interested in acquiring you are not going to magically find you (there are actual companies outside of Silicon Valley that may be interested in your IP, but do not know you exist).  You will have to do some work to get acquired and to find the companies with complementary products.  Getting acquired is not necessary a passive process and there are actions you can take to increase the desirability of your company as an M&amp;A target and to advertise your company to a wider range of potential buyers.<br /><br />Soliciting M&amp;A offers is also necessary to setting up a competitive M&amp;A process. You will also learn that (like fund raising) M&amp;A deals are a full time job.  If you let the CEO manage the M&amp;A process, the company may suffer.  You should have someone who is able to handle the M&amp;A process full-time without affecting the performance of the company during the process.<div class="action_bar" id="__w2_jcZdXje_answer_actions"><span id="ld_RGxTHo_549"><a class="view_comments supp " href="#" id="__w2_cuV9RMq_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_550"><a class="answer_permalink" href="/How-focused-should-a-start-up-be-on-being-acquired/answer/Brandon-Smietana"><span class="datetime" id="__w2_Dw5lqyJ_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_644"></span></span></div><div id="ld_RGxTHo_551"><div class="comments answer_comments hidden" id="__w2_KPLUyXB_answer_comments"><div id="ld_RGxTHo_645"><div id="ld_RGxTHo_724"><a name="comment_98830"></a><div class="comment p0_5" id="__w2_k29xPDf_comment"><p class="comment_text">Wow. that is an awesome response. Suprised the book doesn&#039;t have more reviews on amazon though. What you say makes a bucketful of sense.</p><p class="action_bar"><a class="user" href="/Paul-Sweeney">Paul Sweeney</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_oQ6iHWC_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_463"><div class="feed_item stream_feed_item p1" id="__w2_cV8EoDx_item"><div class="e_col w4_5"><div id="ld_RGxTHo_486"><div class="feed_item_question"><h2><span id="ld_RGxTHo_524"><span id="ld_RGxTHo_686"></span><a class="question_link" href="/Is-taxation-by-definition-a-form-of-theft-Why-or-why-not" id="__w2_dlvMg4Y_link"><span id="ld_RGxTHo_687"></span>Is taxation by definition a form of theft? Why or why not?</a></span></h2></div></div><div id="ld_RGxTHo_487"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_itGMPKT_answer_voting"><div id="ld_RGxTHo_552"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_bsRacO7_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_bsRacO7_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_itGMPKT_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_LZXyIhk_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_LZXyIhk_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_LZXyIhk_menu_contents"> </div></div></span><div id="__w2_itGMPKT_answer_voters"><div id="ld_RGxTHo_553"></div></div></div>Taxation is not voluntary and is enforced directly through the government&#039;s monopoly on force.<br /><br />If wealth if property and the government is depriving you of your property through the threat of force, that might be called theft.<br /><br />Theft has several connotations attached to it however, such as illegitimacy.<div class="action_bar" id="__w2_itGMPKT_answer_actions"><span id="ld_RGxTHo_554"><a class="view_comments supp " href="#" id="__w2_BoCk6is_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_555"><a class="answer_permalink" href="/Is-taxation-by-definition-a-form-of-theft-Why-or-why-not/answer/Brandon-Smietana"><span class="datetime" id="__w2_qNZ5Hzl_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_646"></span></span></div><div id="ld_RGxTHo_556"><div class="comments answer_comments hidden" id="__w2_rK4xYPG_answer_comments"><div id="ld_RGxTHo_647"><div id="ld_RGxTHo_725"><a name="comment_97444"></a><div class="comment p0_5" id="__w2_V4cFbiP_comment"><p class="comment_text">Of course taxation is voluntary is there a guard at the border stoping you from leaving?</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_wC7kyWF_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_464"><div class="feed_item stream_feed_item p1" id="__w2_epwvnVG_item"><div class="e_col w4_5"><div id="ld_RGxTHo_488"><div class="feed_item_question"><h2><span id="ld_RGxTHo_525"><span id="ld_RGxTHo_688"></span><a class="question_link" href="/For-web-startups-seeking-to-acquire-users-should-they-focus-initial-advertising-on-one-city-market-or-disperse-advertising-among-several-major-cities" id="__w2_t0MSO8j_link"><span id="ld_RGxTHo_689"></span>For web startups seeking to acquire users, should they focus initial advertising on one city/market, or disperse advertising among several major cities?</a></span></h2></div></div><div id="ld_RGxTHo_489"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_jBKkqtq_answer_voting"><div id="ld_RGxTHo_557"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_qZzSedh_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_qZzSedh_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_jBKkqtq_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_rkaNzLs_link"><span class="rep" id="__w2_rkaNzLs_sig">I write machine learning based s...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_rkaNzLs_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_rkaNzLs_menu_contents"> </div></div></span><div id="__w2_jBKkqtq_answer_voters"><div id="ld_RGxTHo_558"></div></div></div>How are you acquiring users?<br /><br />Is your startup geographically focused?  Like Foursquare?<br /><br />Is your user acquisition advertis<wbr />ing driven?<br /><br />Is it driven by SEO?<br /><br />There are too many factors.  There is not a best answer. If you are doing a Facebook or FourSquare, then geography matters.  If you are doing Q&amp;A than SEO and content matters more than geography.<br /><br />Communication services and user communities need a critical mass of users.  Whether geography matters is completely dependent on the nature of your service.  Some services has geography components and others do not.  Some are completely geography focused and others not at all.<div class="action_bar" id="__w2_jBKkqtq_answer_actions"><span id="ld_RGxTHo_559"><a class="view_comments supp " href="#" id="__w2_fR8qWRS_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_560"><a class="answer_permalink" href="/For-web-startups-seeking-to-acquire-users-should-they-focus-initial-advertising-on-one-city-market-or-disperse-advertising-among-several-major-cities/answer/Brandon-Smietana"><span class="datetime" id="__w2_Bu0QKJJ_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_648"></span></span></div><div id="ld_RGxTHo_561"><div class="comments answer_comments hidden" id="__w2_wdhiDzh_answer_comments"><div id="ld_RGxTHo_649"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_465"><div class="feed_item stream_feed_item p1" id="__w2_zOVEppK_item"><div class="e_col w4_5"><div id="ld_RGxTHo_490"><div class="feed_item_question"><h2><span id="ld_RGxTHo_526"><span id="ld_RGxTHo_690"></span><a class="question_link" href="/What-is-a-reasonable-range-for-a-CEO-to-pay-him-herself-at-a-pre-launch-startup-that-raises-5m-in-Series-A-funding" id="__w2_tFe9p6z_link"><span id="ld_RGxTHo_691"></span>What is a reasonable range for a CEO to pay him/herself at a pre launch startup that raises $5m in Series A funding?</a></span></h2></div></div><div id="ld_RGxTHo_491"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_dMfDZPt_answer_voting"><div id="ld_RGxTHo_562"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_jDiAOn9_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_jDiAOn9_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_dMfDZPt_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_gvYrb2K_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_gvYrb2K_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_gvYrb2K_menu_contents"> </div></div></span><div id="__w2_dMfDZPt_answer_voters"><div id="ld_RGxTHo_563"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Matthew-Simon-Cavalletto">Matthew Simon Cavalletto</a> and <a class="user" href="/Michael-Wolfe">Michael Wolfe</a></span></div></div></div>$225,000 a year is base salary for the CEO of a post-series A company.  Founder CEOs typically receive 25k less a year than non-founder CEOs.<br /><br />25th percentile salary for technology startup CEOs is $200k/year<br />50th percentile salary is $225k a year<br />75th percentile is $250k a year<br /><br />Startup CEO salary is constrained to a very narrow range.<br /><br />25th percentile salary for CEOs at the first financing round is 155k a year.<br />75th percentile salary for CEOs at the first finance round is 275k a year<br /><br />For more information see,<br /><a href="http://www.scribd.com/doc/7494620/2008-CompStudy-Report-in-Technology" rel="nofollow" target="_blank" class="external_link">http://www.scribd.com/doc<wbr />/749462...</a><br /><br />For people who would say &quot;OMFG! 250k a year, that is ridiculous!  OMFG11&quot;, you should keep in mine that a 2,500 sq-ft shack in Menlo Park costs 2 million dollars.  If CEOs paid no taxes and saved 100% of their $250k a year income, it would still taken them 8 years to save enough money to buy a 2 million dollar shack.<br /><br />After taxes and expenses, it would take 32 years for a CEO to afford a shack if they lived very frugally (no Ferrari).<br /><br />In real terms, 250k a year is nothing.<div class="action_bar" id="__w2_dMfDZPt_answer_actions"><span id="ld_RGxTHo_564"><a class="view_comments supp " href="#" id="__w2_svFn3Vz_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_565"><a class="answer_permalink" href="/What-is-a-reasonable-range-for-a-CEO-to-pay-him-herself-at-a-pre-launch-startup-that-raises-5m-in-Series-A-funding/answer/Brandon-Smietana"><span class="datetime" id="__w2_MuOyE7B_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_650"></span></span></div><div id="ld_RGxTHo_566"><div class="comments answer_comments hidden" id="__w2_rQaadOa_answer_comments"><div id="ld_RGxTHo_651"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_466"><div class="feed_item stream_feed_item p1" id="__w2_fWBUe1r_item"><div class="e_col w4_5"><div id="ld_RGxTHo_492"><div class="feed_item_question"><h2><span id="ld_RGxTHo_527"><span id="ld_RGxTHo_692"></span><a class="question_link" href="/Why-is-Silicon-Valley-so-equity-focused-Are-there-a-lot-of-cashflow-businesses-we-just-dont-know-about" id="__w2_unHomxb_link"><span id="ld_RGxTHo_693"></span>Why is Silicon Valley so equity focused? Are there a lot of cashflow businesses we just don&#039;t know about?</a></span></h2></div></div><div id="ld_RGxTHo_493"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_HMDuNGl_answer_voting"><div id="ld_RGxTHo_567"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_uoVdn5V_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_uoVdn5V_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_HMDuNGl_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_wr1f2kA_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_wr1f2kA_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_wr1f2kA_menu_contents"> </div></div></span><div id="__w2_HMDuNGl_answer_voters"><div id="ld_RGxTHo_568"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Craig-Montuori">Craig Montuori</a>, <a class="user" href="/Ramit-Sethi">Ramit Sethi</a> and <a class="user" href="/Varun-Arora">Varun Arora</a></span></div></div></div>There are a ton of cash cows.  However the news channels and rumor mills in Silicon Valley are focused on &quot;valuations&quot; and VC financing events.<br /><br />If you have a profitable bootstrapped business and twenty times the market-share of your VC backed competitor, the VC backed competitor gets all the press coverage in TechCrunch.  They also get all the gossip about boardroom backstabbing and valuations.<br /><br />It is not difficult to make money on the internet, but being a profitable business or a cash cow is not news worthy.  The cashflow businesses tend to be closely held if they would otherwise sell for an earnings multiple less than 20, because the owner would have to find other assets to invest the proceeds of the sale in (such as equities or corporate bonds).  Ad networks and affiliate marketing companies tend to fall into this space.<br /><br />The cashflow businesses are distributed all over the US instead of just being concentrated in one place (like the private equity financed companies).  Cashflow businesses tend to take less VC or no VC.  Online poker or gaming startups and others fall into this category.<br /><br />The reality is that the vast majority of companies receive no private equity investment and companies are generally profitable or bankrupt within 2-3 years.  Only half of companies that IPO have taken early stage private equity investment (as compared to growth equity).<br /><br />You just do not hear about profitable companies, because they have much less drama than &quot;Dude, wheres my revenue model&quot; VC backed companies like Digg, Reddit and Twitter.<br /><br />VCs complain about ad-supported or subscription based companies not being profitable enough, but there is a selection bias, with VCs only ending up with the companies which could not become profitable on 100k daily user and $3/eCPM.  If you are a 3 person company, can build a website and get 500k a year in revenue; you probably do not need private equity investment and you wont be in TechCrunch.<br /><br />News and information flow in Silicon Valley has no relationship with revenue.  That is probably the greatest reason we do not hear about these companies.<br /><br />However, if you are profitable and you go blabbing about, like the creator of Mafia Wars did; people start thinking &quot;This is a good market&quot; and Zynga or someone else comes along and copies your product and buries you.  So if you are making 10k a day in revenues but started your company for the &#039;ePeen&#039; instead of the money, you will go around blabbing about your revenues and end up with 30 &quot;me-too&quot; competitors.  There are selection effects at work.<div class="action_bar" id="__w2_HMDuNGl_answer_actions"><span id="ld_RGxTHo_569"><a class="view_comments supp " href="#" id="__w2_A9s5TM0_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_570"><a class="answer_permalink" href="/Why-is-Silicon-Valley-so-equity-focused-Are-there-a-lot-of-cashflow-businesses-we-just-dont-know-about/answer/Brandon-Smietana"><span class="datetime" id="__w2_aIfprDj_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_652"></span></span></div><div id="ld_RGxTHo_571"><div class="comments answer_comments hidden" id="__w2_hRvymAp_answer_comments"><div id="ld_RGxTHo_653"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_467"><div class="feed_item stream_feed_item p1" id="__w2_QJYhpZp_item"><div class="e_col w4_5"><div id="ld_RGxTHo_494"><div class="feed_item_question"><h2><span id="ld_RGxTHo_528"><span id="ld_RGxTHo_694"></span><a class="question_link" href="/What-is-the-best-and-safest-way-from-Detroit-airport-to-Auburn-Hills-Michigan" id="__w2_j9z2Imu_link"><span id="ld_RGxTHo_695"></span>What is the best and safest way from Detroit airport to Auburn Hills, Michigan?</a></span></h2></div></div><div id="ld_RGxTHo_495"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_FuIBj6f_answer_voting"><div id="ld_RGxTHo_572"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_VoQsvj3_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_VoQsvj3_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_FuIBj6f_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_JZ8s2Z9_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_JZ8s2Z9_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_JZ8s2Z9_menu_contents"> </div></div></span><div id="__w2_FuIBj6f_answer_voters"><div id="ld_RGxTHo_573"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Rishi-Natarajan">Rishi Natarajan</a> and <a class="user" href="/Anthony-Foster">Anthony Foster</a></span></div></div></div>Armored stretch hummer limo with the rims that keep spinning every time you stop.<div class="action_bar" id="__w2_FuIBj6f_answer_actions"><span id="ld_RGxTHo_574"><a class="view_comments supp " href="#" id="__w2_lfD9OA5_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_575"><a class="answer_permalink" href="/What-is-the-best-and-safest-way-from-Detroit-airport-to-Auburn-Hills-Michigan/answer/Brandon-Smietana"><span class="datetime" id="__w2_hiXKOth_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_654"></span></span></div><div id="ld_RGxTHo_576"><div class="comments answer_comments hidden" id="__w2_OpE3i6Y_answer_comments"><div id="ld_RGxTHo_655"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_468"><div class="feed_item stream_feed_item p1" id="__w2_ylhtwr4_item"><div class="e_col w4_5"><div id="ld_RGxTHo_496"><div class="feed_item_question"><h2><span id="ld_RGxTHo_529"><span id="ld_RGxTHo_696"></span><a class="question_link" href="/Brandon-Smietana/What-television-shows-do-you-currently-watch" id="__w2_EqRiaWG_link"><span id="ld_RGxTHo_697"></span>What television shows do you currently watch?</a></span></h2></div></div><div id="ld_RGxTHo_497"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_y28IOlg_answer_voting"><div id="ld_RGxTHo_577"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_bBepJOk_answer_vote_up_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_y28IOlg_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_l7YkUve_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_l7YkUve_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_l7YkUve_menu_contents"> </div></div></span><div id="__w2_y28IOlg_answer_voters"><div id="ld_RGxTHo_578"></div></div></div>I wont watch television; it is too proletarian.<br /><br />I prefer reading Foucault.<div class="action_bar" id="__w2_y28IOlg_answer_actions"><span id="ld_RGxTHo_579"><a class="view_comments supp " href="#" id="__w2_mAugbUh_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_580"><a class="answer_permalink" href="/Brandon-Smietana/What-television-shows-do-you-currently-watch/answer/Brandon-Smietana"><span class="datetime" id="__w2_jKPeTci_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_656"></span></span></div><div id="ld_RGxTHo_581"><div class="comments answer_comments hidden" id="__w2_GiZ2Lq7_answer_comments"><div id="ld_RGxTHo_657"><div id="ld_RGxTHo_726"><a name="comment_96084"></a><div class="comment p0_5" id="__w2_F40bbIb_comment"><p class="comment_text">I don&#039;t think this question or answer makes Quora a useful general resource!  It should be deleted!!!</p><p class="action_bar"><a class="user" href="/Ryan-Lackey">Ryan Lackey</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_fCViRwo_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_469"><div class="feed_item stream_feed_item p1" id="__w2_pveXzPn_item"><div class="e_col w4_5"><div id="ld_RGxTHo_498"><div class="feed_item_question"><h2><span id="ld_RGxTHo_530"><span id="ld_RGxTHo_698"></span><a class="question_link" href="/Brandon-Smietana/What-would-you-do-with-an-extra-40M" id="__w2_d1kyrFp_link"><span id="ld_RGxTHo_699"></span>What would you do with an extra $40M?</a></span></h2></div></div><div id="ld_RGxTHo_499"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_Koa6T7W_answer_voting"><div id="ld_RGxTHo_582"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_U17514b_answer_vote_up_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Koa6T7W_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_IrWsGm0_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_IrWsGm0_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_IrWsGm0_menu_contents"> </div></div></span><div id="__w2_Koa6T7W_answer_voters"><div id="ld_RGxTHo_583"></div></div></div>After I am finished with my current company I want to focus more on computational chemistry.  I feel that I went for the low hanging fruit in my past companies.  I did what was likely to succeed instead of pursing the greatest opportunity in front of me.<br /><br />After I am more financially secure, I want to take on more technical risk.  I want to hire more machine learning graduate students and spin out a full-time High Frequency Trading group.  Buy and hold is so 90s; I want to get in on the flash crash action.<br /><br /><blockquote>&quot;WSJ is reporting that bonuses on Wall Street this year are expected to be around $144 billion. How big is that relative to the overall economy? </blockquote><blockquote><br /></blockquote><blockquote>ZeroHedge cranked out the numbers and it is 8% of the total money supply (as measured by M1). Got that? Investment bankers will control 8% of the entire money supply once bonuses are paid.&quot;<br /></blockquote><br />I am very tempted to start a HFT outfit and live out my dream of becoming a banker overlord.<br /><br />Another 40 million would not be nearly enough for me to throw in the towel and retire to a decadent life of models, Farmville and alcohol.<br /><br />As a CEO, my career goal is &quot;Gulfstream IV or die trying&quot;.  I dont need a Boeing 767 party jet to be happy.  A Gulfstream IV is well good enough for me.<br /><br />After a Gulfstream, I am sure that I will realize that &quot;there are more important things in life than money&quot; and burn a couple hundred million running for governor in California (this is sarcasm).<div class="action_bar" id="__w2_Koa6T7W_answer_actions"><span id="ld_RGxTHo_584"><a class="view_comments supp " href="#" id="__w2_K7cjqD1_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_585"><a class="answer_permalink" href="/Brandon-Smietana/What-would-you-do-with-an-extra-40M/answer/Brandon-Smietana"><span class="datetime" id="__w2_bJaXIqZ_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_658"></span></span></div><div id="ld_RGxTHo_586"><div class="comments answer_comments hidden" id="__w2_NX66lIV_answer_comments"><div id="ld_RGxTHo_659"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_470"><div class="feed_item stream_feed_item p1" id="__w2_cLhomIq_item"><div class="e_col w4_5"><div id="ld_RGxTHo_500"><div class="feed_item_question"><h2><span id="ld_RGxTHo_531"><span id="ld_RGxTHo_700"></span><a class="question_link" href="/Zynga/What-problems-was-Zynga-trying-to-solve-for-its-customers-when-it-launched-its-first-games" id="__w2_Rdq2Osb_link"><span id="ld_RGxTHo_701"></span>What &quot;problems&quot; was Zynga trying to solve for its customers when it launched its first games?</a></span></h2></div></div><div id="ld_RGxTHo_501"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_AL9P776_answer_voting"><div id="ld_RGxTHo_587"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_Uq2EsTV_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_Uq2EsTV_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_AL9P776_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_AdcuKav_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_AdcuKav_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_AdcuKav_menu_contents"> </div></div></span><div id="__w2_AL9P776_answer_voters"><div id="ld_RGxTHo_588"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <span class="name_span">Anon User</span></span></div></div></div>People need poker, just like they &quot;need&quot; alcohol and sex.<br /><br />Zynga was bringing poker to the Facebook platform.  By integrating poker with Facebook&#039;s social network, Zynga made it easier for people to indulge in their sinful gambling impulses by showing them that &quot;all my friends are doing it&quot; with a never-ending stream of notifications spamming yo<wbr />u every time you log in to Facebook.<br /><br />Zynga poker and Farmville notifications are to Facebook what &quot;Herbal Viagra&quot; spam was to email in the early internet.  Zynga was a pioneer of &quot;viral marketing&quot; on the Facebook platform.<br /><br />Zynga was also one of the first companies to successfully package and monetize &quot;ePeen&quot;.  You suck at poker and your friends look down upon you because you only have 150k chips left.  But if you pay Zynga $20 they will sell you 1,000,000 poker chips worth of &quot;I am better than my friends&quot;.<br /><br />Zynga poker and Farmville make people feel like they are accomplishing somethi<wbr />ng with their lives.  That is why they have been successful.<div class="action_bar" id="__w2_AL9P776_answer_actions"><span id="ld_RGxTHo_589"><a class="view_comments supp " href="#" id="__w2_iP8jjj0_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_590"><a class="answer_permalink" href="/Zynga/What-problems-was-Zynga-trying-to-solve-for-its-customers-when-it-launched-its-first-games/answer/Brandon-Smietana"><span class="datetime" id="__w2_h5uxA9z_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_660"></span></span></div><div id="ld_RGxTHo_591"><div class="comments answer_comments hidden" id="__w2_akpLtd8_answer_comments"><div id="ld_RGxTHo_661"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_471"><div class="feed_item stream_feed_item p1" id="__w2_T4nMWZB_item"><div class="e_col w4_5"><div id="ld_RGxTHo_502"><div class="feed_item_question"><h2><span id="ld_RGxTHo_532"><span id="ld_RGxTHo_702"></span><a class="question_link" href="/Why-are-many-people-who-are-very-smart-not-also-rich" id="__w2_zWprTG6_link"><span id="ld_RGxTHo_703"></span>Why are many people who are very smart not also rich?</a></span></h2></div></div><div id="ld_RGxTHo_503"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_FNYSSgK_answer_voting"><div id="ld_RGxTHo_592"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_aMltRR1_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_aMltRR1_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_FNYSSgK_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_ZE7R9vG_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_ZE7R9vG_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_ZE7R9vG_menu_contents"> </div></div></span><div id="__w2_FNYSSgK_answer_voters"><div id="ld_RGxTHo_593"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">12</strong> votes</span> by <span id="__w2_qB4jZBe_view_all"><a class="user" href="/Jeffrey-Morris-Jr">Jeffrey Morris Jr.</a>, <a class="user" href="/Yishan-Wong">Yishan Wong</a>, <a class="user" href="/Ming-Yeow-Ng">Ming Yeow Ng</a>, </span> <a class="more_link" href="#" id="__w2_qB4jZBe_view_all_link">(more)</a><span class="hidden" id="__w2_qB4jZBe_all_phrases"><a class="user" href="/Jeffrey-Morris-Jr">Jeffrey Morris Jr.</a>, <a class="user" href="/Yishan-Wong">Yishan Wong</a>, <a class="user" href="/Ming-Yeow-Ng">Ming Yeow Ng</a>, <a class="user" href="/Sheldon-Chang">Sheldon Chang
2
- </a>, <a class="user" href="/David-Ouyang">David Ouyang</a>, <a class="user" href="/Bogdan-Bocse">Bogdan Bocse</a>, <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Sudarshan-Gaikaiwari">Sudarshan Gaikaiwari</a>, <a class="user" href="/Antone-Johnson">Antone Johnson</a>, <a class="user" href="/Prakash-Swaminathan">Prakash Swaminathan</a>, <a class="user" href="/Alex-Kosorukoff">Alex Kosorukoff</a> and <a class="user" href="/Timothy-Wee">Timothy Wee</a></span></span></div></div></div>&quot;Why are many people who are very smart not also rich?&quot;<br /><br />The simplest reason is that they are bad at creating wealth.  Even if they create value, they may not be able to capture any of it.<br /><b><br /></b>I have met many intelligent people who have a slave mentality.  They do what they are told.  They want out of life what people tell them they should want.  They believe that money cannot make them happy but also believe women or family can make them happy, or other absurdities you find in popular culture.  They believe socially transmitted notions that are not validated by data and they try to live their lives by them.<br /><br />Most people are also risk adverse.  They would prefer a 80k a year job shuffling paper clips to the chance of success.  I know at least a dozen people who have said &quot;I am going to get a job and then start a company eventually&quot;.  When you ask them &quot;When are you going to start a company?&quot;, they have no definite plans.<br /><br />When you ask them &quot;Why don&#039;t you start a company today?&quot;, they give you the exact reasons why they will not be starting a company in the future.<br /><br />When people do start companies, they usually fail because they give up and decide that it would be easier to go back to their cubical.  This is the number one cause of startup failure.<br /><br />It is much easier for people to do what they are told instead of setting goals for themselves.  Most people have not been in a P&amp;L position where they have to make decisions.  School prepares people for employee positions where the goals are set for you and you just have to do what you are told.<br /><br />Most people are simply unwilling to make sacrifices to become financially succes<wbr />sful or aggressively play politics to  achieve and maintain power within organizations.  The vast majority of people have no plans or meaningful goals in life and those that do are doing nothing to execute on them.<br /><br />You do not generate wealth by accident and people who do not commit to actions that are effective at wealth generation, do not succeed at wealth generation (with the exception of some very lucky early Google and Facebook employees).<br /><br />If you have a slave mentality, you do have little use for assets.  You will come home and watch television, sleep and then go back to work.  Another 40 million is not going to change the television shows you watch.<br /><br />In many ways, a desire for wealth is a desire for freedom.  The reason intelligent people are not wealthy is because they have other desires such as &quot;ePeen&quot;, social status, women or the &quot;desire to belong&quot; and be affirmed by a group.  Each person has a different set of driving motivations and some of these motivations conflict with wealth creation goals.<div class="action_bar" id="__w2_FNYSSgK_answer_actions"><span id="ld_RGxTHo_594"><a class="view_comments supp " href="#" id="__w2_OILAbdT_view_comment_link">11 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_595"><a class="answer_permalink" href="/Why-are-many-people-who-are-very-smart-not-also-rich/answer/Brandon-Smietana"><span class="datetime" id="__w2_AHV7dCT_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_662"></span></span></div><div id="ld_RGxTHo_596"><div class="comments answer_comments hidden" id="__w2_FxteHQW_answer_comments"><div id="ld_RGxTHo_663"><div id="ld_RGxTHo_727"><a name="comment_95939"></a><div class="comment p0_5" id="__w2_QUWfZe5_comment"><p class="comment_text">Yes, but it may change the screen size and resolution with which you watch them. However, much as with happiness, this effect is most pronounced up to $100k/year, and then it levels off.</p><p class="action_bar"><a class="user" href="/Yishan-Wong">Yishan Wong</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_M6p7Mnc_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_728"><a name="comment_95969"></a><div class="comment p0_5" id="__w2_S0rRIx0_comment"><p class="comment_text">I have enough competition as it is! Leave intelligent people who have a slave mentality alone, please.</p><p class="action_bar"><a class="user" href="/Gene-Linetsky">Gene Linetsky</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_TlZiLfP_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_729"><a name="comment_96046"></a><div class="comment p0_5" id="__w2_CBARxEI_comment"><p class="comment_text">&quot;Yes, but it may change the screen size and resolution with which you watch them. &quot;<br /><br />Best comment ever.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_J8qXfk8_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_730"><div class="comment comment_dotdotdot p0_5"><a class="supp" href="#" onclick="$(&#039;.hidden_comments_124063&#039;).toggleClass(&#039;hidden&#039;);
1
+ <!DOCTYPE html><html><head><title>Brandon Smietana Answers - Quora</title><script>document.domain=document.domain;_w2replay=(function(){var b=[],a=[],d,g=/^a$/i;function c(j,i,h){var k;if(j.addEventListener){j.addEventListener(i,k=function(l){if(h.call(this,l)===false){l.preventDefault()}},false)}else{if(j.attachEvent){j.attachEvent("on"+i,k=function(){return h.call(this,window.event)})}else{return}}b.push([j,i,k])}function f(j,i,h){if(j.removeEventListener){j.removeEventListener(i,h,false)}else{if(j.detachEvent){j.detachEvent("on"+i,h)}}}function e(h){c(document,h,function(j){var i=j.target||j.srcElement;a.push({type:h,elem:i,cursor:i.style.cursor});i.style.cursor="wait";if(g.test(i.nodeName)&&i.getAttribute("href")==="#"){return false}})}e("mousedown");e("mouseup");e("click");return function(k){if(d){return}d=true;while(b.length){f.apply(null,b.pop())}for(var h=0,j,l;j=a[h];++h){if((l=j.elem).style.cursor=="wait"){l.style.cursor=j.cursor}if(k.inDom(l)){k(l).trigger(j.type)}}}})();</script><meta http-equiv="X-UA-Compatible" content="IE=EmulateIE7" /><link rel="search" type="application/opensearchdescription+xml" href="/opensearch/description.xml" title="Quora" /><!--[if IE]><link rel="stylesheet" type="text/css" href="/static/ie.css" /><![endif]--><meta property="og:site_name" content="Quora" /><meta property="og:description" content="&quot;There is no such thing as perfect. 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class="add_new_question"><a href="#" id="__w2_HkvfoSr_add_new_question">Add Question</a><span class="hidden"><a href="#" id="__w2_eAmDN0X_link">Add Question</a></span></span></div></div></div><div id="ld_6yUZYa_4196"></div></div><div class="pmsg_container main wrapper hidden" id="__w2_P4gpYvj_pmsg_container"></div><div class="main wrapper"><div class="user_profile contents content main_content"><div id="ld_6yUZYa_4197"></div><div class="page_header row main_col"><div class="e_col w2_5 side_col"><span id="ld_6yUZYa_4198"><a class="follow_button" href="#" id="__w2_zeRoDll_follow_user">Follow <span class="name_span">Brandon</span></a></span><span id="ld_6yUZYa_4199"></span></div><div class="w5_5 e_col"><div id="ld_6yUZYa_4200"><h1><div class="profile_icons"><a class="sn_icon" href="http://twitter.com/RKHilbertSpace" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-f2e98b581d7a2736.ico" /></a></div><span class="name_span">Brandon Smietana</span></h1></div><div class="w4_5"><div id="ld_6yUZYa_4201"><div class="user_topic_sig">Founder of Symbolic Analytics</div></div></div></div><div id="ld_6yUZYa_4202"><div class="tabs w8" style="margin-left:-10px;"><a class="link" href="/Brandon-Smietana">Profile</a><a class="link" href="/Brandon-Smietana/about">About <span class="light normal">(</span>6<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/questions">Questions <span class="light normal">(</span>1038<span class="light normal">)</span></a><a class="link selected" href="/Brandon-Smietana/answers">Answers <span class="light normal">(</span>462<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/log">Edits <span class="light normal">(</span>7929<span class="light normal">)</span></a></div></div></div><div class="col w4_5 main_col"><div id="ld_6yUZYa_4203"><div id="ld_6yUZYa_4210"><div class="pagedlist_item" id="ld_6yUZYa_4226"><div class="feed_item stream_feed_item p1" id="__w2_s1K6Ag2_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4247"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4287"><span id="ld_6yUZYa_4447"></span><a class="question_link" href="/What-is-the-most-important-barrier-to-entry-in-any-market-and-why" id="__w2_X5CXEoT_link"><span id="ld_6yUZYa_4448"></span>What is the most important barrier to entry in any market and why?</a></span></h2></div></div><div id="ld_6yUZYa_4248"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_GSxK8lH_answer_voting"><div id="ld_6yUZYa_4307"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_sY6BDIK_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_sY6BDIK_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_GSxK8lH_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_c1WVBL6_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_c1WVBL6_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_c1WVBL6_menu_contents"> </div></div></span><div id="__w2_GSxK8lH_answer_voters"><div id="ld_6yUZYa_4308"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Antone-Johnson">Antone Johnson</a></span></div></div></div>There is no single barrier that is present in every market.<br /><br />However, in mature markets the greatest barrier is generally government regulation and the status quo.<div class="action_bar" id="__w2_GSxK8lH_answer_actions"><span id="ld_6yUZYa_4309"><a class="view_comments supp " href="#" id="__w2_EE22sWp_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4310"><a class="answer_permalink" href="/What-is-the-most-important-barrier-to-entry-in-any-market-and-why/answer/Brandon-Smietana"><span class="datetime" id="__w2_Wfinz3y_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4407"></span></span></div><div id="ld_6yUZYa_4311"><div class="comments answer_comments hidden" id="__w2_yq710Vt_answer_comments"><div id="ld_6yUZYa_4408"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4227"><div class="feed_item stream_feed_item p1" id="__w2_Cyt3yrJ_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4249"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4288"><span id="ld_6yUZYa_4449"></span><a class="question_link" href="/What-would-happen-to-the-taxicab-industry-if-cars-could-legally-drive-themselves" id="__w2_yG5rM6J_link"><span id="ld_6yUZYa_4450"></span>What would happen to the taxicab industry if cars could legally drive themselves?</a></span></h2></div></div><div id="ld_6yUZYa_4250"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_R3306gt_answer_voting"><div id="ld_6yUZYa_4312"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_YvTXs1x_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_YvTXs1x_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_R3306gt_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_ZbAsppi_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_ZbAsppi_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_ZbAsppi_menu_contents"> </div></div></span><div id="__w2_R3306gt_answer_voters"><div id="ld_6yUZYa_4313"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Andrew-de-Andrade">Andrew de Andrade</a></span></div></div></div>Hell would break loose.  Fire and brimstone.  Government regulation.  Political economy.  Rent seeking!<br /><br />The libertarians would be rioting in the street.<div class="action_bar" id="__w2_R3306gt_answer_actions"><span id="ld_6yUZYa_4314"><a class="view_comments supp " href="#" id="__w2_UmbIdT5_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4315"><a class="answer_permalink" href="/What-would-happen-to-the-taxicab-industry-if-cars-could-legally-drive-themselves/answer/Brandon-Smietana"><span class="datetime" id="__w2_I0vgA0O_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4409"></span></span></div><div id="ld_6yUZYa_4316"><div class="comments answer_comments hidden" id="__w2_JDINq9z_answer_comments"><div id="ld_6yUZYa_4410"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4228"><div class="feed_item stream_feed_item p1" id="__w2_VwgqPtR_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4251"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4289"><span id="ld_6yUZYa_4451"></span><a class="question_link" href="/What-are-the-best-books-on-quality-control" id="__w2_gMi6Onv_link"><span id="ld_6yUZYa_4452"></span>What are the best books on quality control?</a></span></h2></div></div><div id="ld_6yUZYa_4252"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_G9v79oP_answer_voting"><div id="ld_6yUZYa_4317"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_ce6uxvf_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ce6uxvf_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_G9v79oP_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_I15XCk7_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_I15XCk7_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_I15XCk7_menu_contents"> </div></div></span><div id="__w2_G9v79oP_answer_voters"><div id="ld_6yUZYa_4318"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Xianhang-Zhang">Xianhang Zhang</a></span></div></div></div>The Goal: A Process of Ongoing Improvement <a href="http://amzn.to/ajcemq" rel="nofollow" target="_blank" class="external_link">http://amzn.t<wbr />o/ajcemq</a><br /><br />This is actually a novel, but its a classic in process improvement, manufacturing and quality control.<div class="action_bar" id="__w2_G9v79oP_answer_actions"><span id="ld_6yUZYa_4319"><a class="view_comments supp " href="#" id="__w2_pJmJqz5_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4320"><a class="answer_permalink" href="/What-are-the-best-books-on-quality-control/answer/Brandon-Smietana"><span class="datetime" id="__w2_ngiEooO_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4411"></span></span></div><div id="ld_6yUZYa_4321"><div class="comments answer_comments hidden" id="__w2_tpbWXHy_answer_comments"><div id="ld_6yUZYa_4412"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4229"><div class="feed_item stream_feed_item p1" id="__w2_ujFy56O_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4253"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4290"><span id="ld_6yUZYa_4453"></span><a class="question_link" href="/Would-retail-investors-be-as-willing-to-buy-stocks-if-they-knew-what-percentage-of-trades-in-a-stock-were-computer-driven" id="__w2_wa5NhGt_link"><span id="ld_6yUZYa_4454"></span>Would retail investors be as willing to buy stocks if they knew what percentage of trades in a stock were computer driven?</a></span></h2></div></div><div id="ld_6yUZYa_4254"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_bPmdfW3_answer_voting"><div id="ld_6yUZYa_4322"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_UaQ9BIj_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_UaQ9BIj_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_bPmdfW3_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_JwYYkgl_link"><span class="rep">They call me &quot;Flash Crash&quot;</span></span><div class="hover_menu hidden" style="display: none" id="__w2_JwYYkgl_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_JwYYkgl_menu_contents"> </div></div></span><div id="__w2_bPmdfW3_answer_voters"><div id="ld_6yUZYa_4323"></div></div></div>Computer driven trade hurts you more when your position changes are +50 million dollars.  It hurts the institutional investo<wbr />rs putting in large limit orders.<br /><br />It reduces spreads and increases liquidity and that benefits the smaller investors.  It also reduces transaction costs.<br /><br />There is no such thing as computer driven trades.  All trades today are computer driven.  In order to achieve good execution, even human directed trades are executed by algorithms.<br /><br />More useful, would be information about the distribution of position lengths across market participants.  I think there are better metrics that could help investors than percentage of computer driven trades.<br /><br />I would like to know for instance, what percentage of trades are long term positions being closed out and which are short term positions being opened and closed every five minutes.<div class="action_bar" id="__w2_bPmdfW3_answer_actions"><span id="ld_6yUZYa_4324"><a class="view_comments supp " href="#" id="__w2_A4ThfzA_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4325"><a class="answer_permalink" href="/Would-retail-investors-be-as-willing-to-buy-stocks-if-they-knew-what-percentage-of-trades-in-a-stock-were-computer-driven/answer/Brandon-Smietana"><span class="datetime" id="__w2_FmdANwn_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4413"></span></span></div><div id="ld_6yUZYa_4326"><div class="comments answer_comments hidden" id="__w2_lJtKxIM_answer_comments"><div id="ld_6yUZYa_4414"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4230"><div class="feed_item stream_feed_item p1" id="__w2_ayrhieE_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4255"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4291"><span id="ld_6yUZYa_4455"></span><a class="question_link" href="/In-what-ways-could-the-Combating-Online-Infringement-and-Counterfeits-Act-COICA-affect-the-way-people-use-the-Internet" id="__w2_E3OTvVp_link"><span id="ld_6yUZYa_4456"></span>In what ways could the Combating Online Infringement and Counterfeits Act (COICA) affect the way people use the Internet?</a></span></h2></div></div><div id="ld_6yUZYa_4256"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_JItMj8z_answer_voting"><div id="ld_6yUZYa_4327"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_KU75mIR_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_KU75mIR_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_JItMj8z_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_ejGQ0aR_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_ejGQ0aR_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_ejGQ0aR_menu_contents"> </div></div></span><div id="__w2_JItMj8z_answer_voters"><div id="ld_6yUZYa_4328"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Mike-Mimbo">Mike Mimbo</a> and <a class="user" href="/Andrew-Ballinger">Andrew Ballinger</a></span></div></div></div>Youtube would have been blacklisted in the first month if this law was in effect 10 years ago.<br /><br />Basicly, you can expect that new and controversial service<wbr />s will be blacklisted along with several very popular existing services.  It will certainly have a chilling effect.<br /><br /><b>This law hands over control to what you can access on the internet to the government and corporate interests.</b>  No one argues that its not a tool of censorship, they are only debating whether the censorship is desirable or undesirable.<br /><br />However, I think this bill could be the best thing that happens to the internet.  The backlash would be immense.  Will will rely less on government controlled services such as DNS.  In Japan, measures similar to COICA sparked the development of extremely sophisticated c<wbr />ryptographic file exchange systems.  A major erosion of internet freedom such as COICA could create demand in the United States for most robust internet infrastructure.<br /><br />Ironically, the FBI and NSA have been the strongest opponents of these blacklist bills in the past, because they were afraid it would drive people to use cryptographic product<wbr />s and communication protocols t<wbr />hat were difficult to intercept and monitor.  However, the COICA provisions are being pushed through with a tacit agreement that they would be accompanied by the outlawing of encryption services where end-users have control of their private keys.  If encryption without government backdoors is made illegal and enforced (throwing people in jail for using encrypted file sharing services), then COICA may be enforceable.<br /><br />The COICA bill is only politically feasible with government mandated back-doors in all encryption products and services.<br /><br /><blockquote>The New York Times reported today that the FBI is preparing to propose legislation to the Obama Administration that would require Internet service providers (including software makers like Skype) to build in &quot;backdoors&quot; so that any communication between people can be monitored by the government.</blockquote><br />COICA eliminates the possibility of operating innovative new services which skirt the line on copyrights.  New services will not occur in the open and the existing services will be pushed to adapt technical measures to circumvent these regulations.<br /><br />COICA will have the most impact on new internet services and emerging business models (like Youtube) but will have very little impact on curtailing existing copyright abuses, which will simply move to adapt more advanced technical measures, as has already happened in Japan.<div class="action_bar" id="__w2_JItMj8z_answer_actions"><span id="ld_6yUZYa_4329"><a class="view_comments supp " href="#" id="__w2_vNlnu9g_view_comment_link">5 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4330"><a class="answer_permalink" href="/In-what-ways-could-the-Combating-Online-Infringement-and-Counterfeits-Act-COICA-affect-the-way-people-use-the-Internet/answer/Brandon-Smietana"><span class="datetime" id="__w2_k3xMscf_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4415"></span></span></div><div id="ld_6yUZYa_4331"><div class="comments answer_comments hidden" id="__w2_hI5hssU_answer_comments"><div id="ld_6yUZYa_4416"><div id="ld_6yUZYa_4487"><a name="comment103881"></a><div class="comment p0_5" id="__w2_fVKdeEv_comment"><p class="comment_text">I certainly agree.  The censorship portion is a slippery slope, and one can only ask &quot;who gets to regulate the regulators?&quot;</p><p class="action_bar"><a class="user" href="/Mike-Mimbo">Mike Mimbo</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_wDaSzvS_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4488"><a name="comment103889"></a><div class="comment p0_5" id="__w2_C7kcv4y_comment"><p class="comment_text">Wow, a lot of interesting stuff in that extended response.  Hadn&#039;t realize you were going to go that way, other wise I wouldnt have suggested the bolding.  Feel free to remove if you&#039;d like.</p><p class="action_bar"><a class="user" href="/Mike-Mimbo">Mike Mimbo</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_bLQELu1_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4489"><a name="comment103890"></a><div class="comment p0_5" id="__w2_k5WF1Sl_comment"><p class="comment_text">Its a good statement to bold.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_VlADrC1_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4490"><a name="comment103891"></a><div class="comment p0_5" id="__w2_YNgqc5g_comment"><p class="comment_text">Heh I dont disagree.</p><p class="action_bar"><a class="user" href="/Mike-Mimbo">Mike Mimbo</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_zAcHuVG_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4491"><a name="comment103976"></a><div class="comment p0_5" id="__w2_wH3jo6l_comment"><p class="comment_text">Protect the constitutional right to encrypted communications! Free information!</p><p class="action_bar"><a class="user" href="/Andrew-Ballinger">Andrew Ballinger</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_C0t9DzW_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4231"><div class="feed_item stream_feed_item p1" id="__w2_KlJO8NB_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4257"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4292"><span id="ld_6yUZYa_4457"></span><a class="question_link" href="/Will-Google-ever-enter-the-high-frequency-trading-business" id="__w2_DPpElPJ_link"><span id="ld_6yUZYa_4458"></span>Will Google ever enter the high frequency trading business?</a></span></h2></div></div><div id="ld_6yUZYa_4258"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_AjRawNz_answer_voting"><div id="ld_6yUZYa_4332"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_B6eshJk_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_B6eshJk_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_AjRawNz_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_eWgHhNF_link"><span class="rep">They call me &quot;Flash Crash&quot;</span></span><div class="hover_menu hidden" style="display: none" id="__w2_eWgHhNF_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_eWgHhNF_menu_contents"> </div></div></span><div id="__w2_AjRawNz_answer_voters"><div id="ld_6yUZYa_4333"></div></div></div>Eric Schmidt has said that Sergey Brin wanted to start a hedge fund within Google, but that he talked him out of it because of potential legal issues.<br /><br />Google does however have a bond trading desk.  This is however because Google has a very large cash hoard and does not pay dividends, not because of any technological advanta<wbr />ge.<br /><br />Also, for HFT live search data is probably not as useful as the volume of click traffic on Google news for certain stories.  Google has a strong latent semantic analysis and machine learning groups and has a unique dataset to data-mine.<br /><br />Google also has a number of acquired technologies for data mining the &quot;deep-web&quot;, which would give it an advantage comparable to Renaissance Technology in some areas of finance.  However, it is not clear that Google has the technical expertise to leverage that dataset in the finance domain.<br /><br />Even if Google matched the performance of Renaissance Technology, its returns on this operation would only be a few billion a year.<br /><br />Google would be more successful leveraging its deep-web crawling technology as a financial information services company, than they would operating as a hedge fund or HFT outfit.<div class="action_bar" id="__w2_AjRawNz_answer_actions"><span id="ld_6yUZYa_4334"><a class="view_comments supp " href="#" id="__w2_Ai0grIY_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4335"><a class="answer_permalink" href="/Will-Google-ever-enter-the-high-frequency-trading-business/answer/Brandon-Smietana"><span class="datetime" id="__w2_Ocwu3Om_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4417"></span></span></div><div id="ld_6yUZYa_4336"><div class="comments answer_comments hidden" id="__w2_jUcmM6u_answer_comments"><div id="ld_6yUZYa_4418"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4232"><div class="feed_item stream_feed_item p1" id="__w2_g7p7hG3_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4259"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4293"><span id="ld_6yUZYa_4459"></span><a class="question_link" href="/Who-should-I-talk-to-if-I-want-to-license-my-patent" id="__w2_dE2eumd_link"><span id="ld_6yUZYa_4460"></span>Who should I talk to if I want to license my patent?</a></span></h2></div></div><div id="ld_6yUZYa_4260"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_m9cUjqg_answer_voting"><div id="ld_6yUZYa_4337"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_Klm5zAx_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_Klm5zAx_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_m9cUjqg_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_YvP92vc_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_YvP92vc_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_YvP92vc_menu_contents"> </div></div></span><div id="__w2_m9cUjqg_answer_voters"><div id="ld_6yUZYa_4338"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Anthony-Foster">Anthony Foster</a>, <span class="name_span">Anon User</span> and <a class="user" href="/Mike-Mimbo">Mike Mimbo</a></span></div></div></div>1&gt; Find companies that are doing things related to your patent<br />2&gt; Find a law firm<br />3&gt; Initiative a lawsuit on a contingency basis.  Initiative discovery<br />4&gt; Obtain a license as part of the settlement.<br /><br />The discovery process puts a huge financial burden on the defendant.  They would rather pay a couple hundred thousand to make the lawsuit go away than pay massive legal costs for discovery.  They only have a few weeks do this if you file your lawsuit in the Texas patent lawsuit &quot;rocket docket&quot;.<br /><br />DO NOT contact the company ahead of time.  Do not give them advanced warning.  It only gives them time to prepare.<br /><br />Also, you should not be too worried about whether the company specifically violates your patent before filing a lawsuit.  You will find out if they are violating your patent in the discovery process.<br /><br />Also, you may find that it is better to go after the customers of the company who is possibly violating your patent, rather than the company itself.  As the company has an incentive to fight the lawsuit and try to invalidate the patent.  A $20,000 &quot;license&quot; from the customers of the company is always cheaper than the customers fighting the patent lawsuit.<br /><br />Good targets for litigation are venture backed companies that have filed for IPO and are in the quite period and companies that are in M&amp;A negotiations.  They want to settle badly.  One European VC mentioned that 70% of his portfolio companies had pending IP litigation in the 12 months before their exit.<br /><br />Also, dont be too eager to litigate too early.  You want to wait until there is a vibrant and growing market around your patent.  You have up to 6 years after the patent to pursue past violations.  Once you start litigating, companies will start building around your patent.<div class="action_bar" id="__w2_m9cUjqg_answer_actions"><span id="ld_6yUZYa_4339"><a class="view_comments supp " href="#" id="__w2_fbQp8fm_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4340"><a class="answer_permalink" href="/Who-should-I-talk-to-if-I-want-to-license-my-patent/answer/Brandon-Smietana"><span class="datetime" id="__w2_Ryo4HQM_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4419"></span></span></div><div id="ld_6yUZYa_4341"><div class="comments answer_comments hidden" id="__w2_zDXGdDA_answer_comments"><div id="ld_6yUZYa_4420"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4233"><div class="feed_item stream_feed_item p1" id="__w2_bvXqbkl_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4261"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4294"><span id="ld_6yUZYa_4461"></span><a class="question_link" href="/How-does-one-politely-decline-to-write-a-letter-of-recommendation-for-an-unsatisfactory-former-employee" id="__w2_M2Ezek1_link"><span id="ld_6yUZYa_4462"></span>How does one politely decline to write a letter of recommendation for an unsatisfactory former employee?</a></span></h2></div></div><div id="ld_6yUZYa_4262"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_GTEEpNE_answer_voting"><div id="ld_6yUZYa_4342"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_mYmpqau_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_mYmpqau_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_GTEEpNE_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_EEMkvQE_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_EEMkvQE_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_EEMkvQE_menu_contents"> </div></div></span><div id="__w2_GTEEpNE_answer_voters"><div id="ld_6yUZYa_4343"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Peter-Vessenes">Peter Vessenes</a></span></div></div></div>You should always strive try to help those around you succeed and you should expect them to reciprocate.<br /><br />You do not have to lie about the persons performance, but you can probably find something nice to say.  Even if the person was mediocre, they represent your organization after they leave your company for other employers.<br /><br />They may for instance, be useful for identifying talented employees within their new organization (which you may want in the future).  They may also be useful in acquiring new customers within their current or future organizations or for recruiting.  You therefore should try to maintain a good relationship with ex-employees.  In general, you should avoid upsetting people who may be useful in the future as much as is possible.<br /><br />If you need to decline writing letters, make up some human resource policy bullshit.  It is also very easy to write a letter that says very little.<br /><br />If the persons performance was unsatisfactory and telling them this would be a surprise to them, this is probably a sign of bad management. It signifies that the employee did not receive feedback on their performance and the standards they were being measured against.<br /><br />This question is however very vague and the best response is dependent on the situation.<div class="action_bar" id="__w2_GTEEpNE_answer_actions"><span id="ld_6yUZYa_4344"><a class="view_comments supp " href="#" id="__w2_HV8o0MX_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4345"><a class="answer_permalink" href="/How-does-one-politely-decline-to-write-a-letter-of-recommendation-for-an-unsatisfactory-former-employee/answer/Brandon-Smietana"><span class="datetime" id="__w2_l17iaqW_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4421"></span></span></div><div id="ld_6yUZYa_4346"><div class="comments answer_comments hidden" id="__w2_VmuWbcI_answer_comments"><div id="ld_6yUZYa_4422"><div id="ld_6yUZYa_4492"><a name="comment103243"></a><div class="comment p0_5" id="__w2_q788Cxq_comment"><p class="comment_text">Interesting story -- I was asked for a reference about an ex-employee at one point. I had been unhappy, so I said that we only confirmed employment dates and titles.<br /><br />The other reference was my business partner, who gave a reference. Whoops.<br /><br />I now believe it is most ethical to draw out and focus on the positive points for any ex employee, and that&#039;s my MO. Everyone (really, almost everyone) deserves a chance at a job they really want.</p><p class="action_bar"><a class="user" href="/Peter-Vessenes">Peter Vessenes</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CM4eVM5_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4493"><a name="comment103258"></a><div class="comment p0_5" id="__w2_PSKoeMx_comment"><p class="comment_text">If I put someone in a position and they do not perform, I am at fault for selecting the wrong person for the position; not the employee.<br /><br />The most important job of management and executives is the selection of people that can carry out the organizational&#039;s goals.<br /><br />I think it is wrong to blame the employee or become angry at them for their performance, although it is often difficult to remain so neutral.<br /><br />There is a lack of soft skill, such as &quot;initiative&quot; in todays work force and there are a variety of people that will perform differently under different conditions.  Some people have low initiative and need others to tell them what to do, while others are effective in achieving organizational goals without much oversight.  A person with high initiative placed in a position where work flow and orders are passed down to them, might not be adding the most value to your organization.  They may find what they are doing unrewarding and under perform.<br /><br />Selecting people who are competent, have initiative and will persevere in the face of setbacks is important, but it is also important that a job take advantage of a persons strengths.<br /><br />Even very competent people may be under-performers in certain environments or roles.  They may be very ineffective in one situation, but effective in other situations.<br /><br />Often a person does not know why they are successful or competent in a role.  They do one thing and it works and when they are promoted, they keep the behaviors that made them successful in their previous roles, but those behaviors are not what is required in their new role.  For instance an engineering going from implementation to management/product design.<br /><br />I think its more often the case that poor performance is the result of a haphazard approach to talent development, rather than a deficiency with the person.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_QieQkQG_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4234"><div class="feed_item stream_feed_item p1" id="__w2_IXNjUah_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4263"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4295"><span id="ld_6yUZYa_4463"></span><a class="question_link" href="/How-does-Formspring-make-money" id="__w2_MXCB9ww_link"><span id="ld_6yUZYa_4464"></span>How does Formspring make money?</a></span></h2></div></div><div id="ld_6yUZYa_4264"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_fhViVkV_answer_voting"><div id="ld_6yUZYa_4347"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_zXvMD8K_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_zXvMD8K_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_fhViVkV_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_Vq64VjK_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_Vq64VjK_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_Vq64VjK_menu_contents"> </div></div></span><div id="__w2_fhViVkV_answer_voters"><div id="ld_6yUZYa_4348"></div></div></div>I cannot understand the misunderstanding that would provoke such a question.<br /><br />eyeballs  = money<br /><br />Its called &quot;the dot com equation&quot;<div class="action_bar" id="__w2_fhViVkV_answer_actions"><span id="ld_6yUZYa_4349"><a class="view_comments supp " href="#" id="__w2_Apju95i_view_comment_link">3 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4350"><a class="answer_permalink" href="/How-does-Formspring-make-money/answer/Brandon-Smietana"><span class="datetime" id="__w2_W82sd1C_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4423"></span></span></div><div id="ld_6yUZYa_4351"><div class="comments answer_comments hidden" id="__w2_YyezBPr_answer_comments"><div id="ld_6yUZYa_4424"><div id="ld_6yUZYa_4494"><a name="comment102702"></a><div class="comment p0_5" id="__w2_rgDN7dr_comment"><p class="comment_text">I think it&#039;s a better course to assume questions are asked in good faith :-)</p><p class="action_bar"><a class="user" href="/Benjamin-Rahn">Benjamin Rahn</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_lLpxXRd_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4495"><a name="comment102704"></a><div class="comment p0_5" id="__w2_MJifCNu_comment"><p class="comment_text">The problem is that Formspring does not make money, until it does.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_uLBmoVh_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4496"><a name="comment102789"></a><div class="comment p0_5" id="__w2_GvfNLrJ_comment"><p class="comment_text">Then perhaps one could simply say &quot;formspring does not currently have any revenue sources. Presumably they plan to monetize the eyeballs in traditional way (eg advertising) at a later stage.&quot;</p><p class="action_bar"><a class="user" href="/Benjamin-Rahn">Benjamin Rahn</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_DUGPHBr_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4235"><div class="feed_item stream_feed_item p1" id="__w2_FsTaHth_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4265"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4296"><span id="ld_6yUZYa_4465"></span><a class="question_link" href="/Stock-Market/Can-Twitter-sentiment-analysis-guide-stock-market-investment" id="__w2_Wn7hKFh_link"><span id="ld_6yUZYa_4466"></span>Can Twitter sentiment analysis guide stock market investment?</a></span></h2></div></div><div id="ld_6yUZYa_4266"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_urJT5kK_answer_voting"><div id="ld_6yUZYa_4352"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_uaUFKJW_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_uaUFKJW_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_urJT5kK_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_OGVp7w0_link"><span class="rep" id="__w2_OGVp7w0_sig">I write machine learning based s...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_OGVp7w0_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_OGVp7w0_menu_contents"> </div></div></span><div id="__w2_urJT5kK_answer_voters"><div id="ld_6yUZYa_4353"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Azeem-Azhar">Azeem Azhar</a></span></div></div></div>I know two graduate students that did a summer project on this.<br /><br />Its the same as using any other data source.<div class="action_bar" id="__w2_urJT5kK_answer_actions"><span id="ld_6yUZYa_4354"><a class="view_comments supp " href="#" id="__w2_iwV5p6e_view_comment_link">4 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4355"><a class="answer_permalink" href="/Stock-Market/Can-Twitter-sentiment-analysis-guide-stock-market-investment/answer/Brandon-Smietana"><span class="datetime" id="__w2_lRlGCCH_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4425"></span></span></div><div id="ld_6yUZYa_4356"><div class="comments answer_comments hidden" id="__w2_PjKT33g_answer_comments"><div id="ld_6yUZYa_4426"><div id="ld_6yUZYa_4497"><a name="comment102676"></a><div class="comment p0_5" id="__w2_oh4Mfqa_comment"><p class="comment_text">Did it work?</p><p class="action_bar"><a class="user" href="/Seb-Paquet">Seb Paquet</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CGQeytp_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4498"><a name="comment102677"></a><div class="comment p0_5" id="__w2_Hcibwh9_comment"><p class="comment_text">Everything works to some degree.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_b70DfKs_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4499"><a name="comment102678"></a><div class="comment p0_5" id="__w2_KUgLcT1_comment"><p class="comment_text">You are a bit late to the game if you are just thinking about this now, but yes it works.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_Y9OQt7V_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4500"><a name="comment102709"></a><div class="comment p0_5" id="__w2_UyY6MOh_comment"><p class="comment_text">Tweets and spam emails about large cap stocks signal increase in volume, but not price movements.<br /><br />However for smaller cap stocks, you can use these algorithms as a basis for predicting price movements.<br /><br />What is most profitable however, is volatility arbitrage and statistical arbitrage on volilities; so as predicting increased v<wbr />olatility and doing a butterfly spread.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_EfLAP1m_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4236"><div class="feed_item stream_feed_item p1" id="__w2_Ya6zB1t_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4267"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4297"><span id="ld_6yUZYa_4467"></span><a class="question_link" href="/In-the-very-long-run-will-manufacturing-in-developed-economies-end-up-like-agriculture-in-developed-economies-today-i-e-only-being-a-few-percent-of-GDP" id="__w2_pCA1uQY_link"><span id="ld_6yUZYa_4468"></span>In the very long run, will manufacturing in developed economies end up like agriculture in developed economies today, i.e. only being a few percent of GDP?</a></span></h2></div></div><div id="ld_6yUZYa_4268"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_w9LBqUv_answer_voting"><div id="ld_6yUZYa_4357"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_pAvLCJp_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_pAvLCJp_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_w9LBqUv_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_vbEUgzg_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_vbEUgzg_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_vbEUgzg_menu_contents"> </div></div></span><div id="__w2_w9LBqUv_answer_voters"><div id="ld_6yUZYa_4358"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Anthony-Foster">Anthony Foster</a></span></div></div></div>Yes.<br /><br />When you look at the data for manufacturing, productivi<wbr />ty growth outstrips demand growth every year.  Higher output, lower number of humans.<br /><br />Almost 80% of GDP is spend on labor costs.  In the short term, automation increases profits by decreasing labor costs.  In the long run, perfect competition erodes margins as manufacturing capacity exceed global demand.<br /><br />We already see this in automobiles today; global manufacturing capacity is 3x demand for cards.  The only way to increase margins is to decease manufacturing cos<wbr />ts.<div class="action_bar" id="__w2_w9LBqUv_answer_actions"><span id="ld_6yUZYa_4359"><a class="view_comments supp " href="#" id="__w2_nVPGB41_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4360"><a class="answer_permalink" href="/In-the-very-long-run-will-manufacturing-in-developed-economies-end-up-like-agriculture-in-developed-economies-today-i-e-only-being-a-few-percent-of-GDP/answer/Brandon-Smietana"><span class="datetime" id="__w2_kh9rjqB_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4427"></span></span></div><div id="ld_6yUZYa_4361"><div class="comments answer_comments hidden" id="__w2_CiR75dY_answer_comments"><div id="ld_6yUZYa_4428"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4237"><div class="feed_item stream_feed_item p1" id="__w2_yZhEKgY_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4269"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4298"><span id="ld_6yUZYa_4469"></span><a class="question_link" href="/Higher-Education/What-are-the-reasons-for-teaching-by-the-case-study-method" id="__w2_i42lYak_link"><span id="ld_6yUZYa_4470"></span>What are the reasons for teaching by the case study method?</a></span></h2></div></div><div id="ld_6yUZYa_4270"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_rpvxzCX_answer_voting"><div id="ld_6yUZYa_4362"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_H6Bemf2_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_H6Bemf2_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_rpvxzCX_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_TZCJQ20_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_TZCJQ20_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_TZCJQ20_menu_contents"> </div></div></span><div id="__w2_rpvxzCX_answer_voters"><div id="ld_6yUZYa_4363"></div></div></div>Case base reasoning is much easier for humans than reasoning from a declarative framework.  This is a nuance of the human cognitive architecture an<wbr />d how people acquire expertise; through &#039;chunking&#039; objects together in memory structures.<br /><br />Case based reasoning is therefore more natural and effective than the alternative for several reasons.  Case based reasoning also supports the acquisition of declar<wbr />ative theories.<br /><br />In general, any instructional technique that trades computation/inference for memory will allow a person to acquire expertise more quickly and retain that expertise for longer.<div class="action_bar" id="__w2_rpvxzCX_answer_actions"><span id="ld_6yUZYa_4364"><a class="view_comments supp " href="#" id="__w2_dhTdySf_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4365"><a class="answer_permalink" href="/Higher-Education/What-are-the-reasons-for-teaching-by-the-case-study-method/answer/Brandon-Smietana"><span class="datetime" id="__w2_GREBY34_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4429"></span></span></div><div id="ld_6yUZYa_4366"><div class="comments answer_comments hidden" id="__w2_PGL6qGb_answer_comments"><div id="ld_6yUZYa_4430"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4238"><div class="feed_item stream_feed_item p1" id="__w2_QS2JJ1m_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4271"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4299"><span id="ld_6yUZYa_4471"></span><a class="question_link" href="/Is-it-okay-to-embed-a-link-with-affiliate-ID-if-its-relevant" id="__w2_IWHqOFA_link"><span id="ld_6yUZYa_4472"></span>Is it okay to embed a link with affiliate ID if it&#039;s relevant?</a></span></h2></div></div><div id="ld_6yUZYa_4272"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_wR0To6B_answer_voting"><div id="ld_6yUZYa_4367"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_DK3T5lV_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_DK3T5lV_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_wR0To6B_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_MH9wAgN_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_MH9wAgN_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_MH9wAgN_menu_contents"> </div></div></span><div id="__w2_wR0To6B_answer_voters"><div id="ld_6yUZYa_4368"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <span class="name_span">Anon User</span> and <a class="user" href="/Rod-Begbie">Rod Begbie</a></span></div></div></div>The users of Quora should not benefit financially from the site.  The only people who should be making money are the Quora founders and possibly the employees.<br /><br />By posting affiliate links, you hurt Amazon&#039;s sales margins.  You should be ashamed of yourself. <i>[1]</i><br /><i><br />[1] Internet Ethics, D. Langford 2003 <a href="http://amzn.to/aWA2rh" rel="nofollow" target="_blank" class="external_link">http://amzn.to/aWA2r<wbr />h</a></i><div class="action_bar" id="__w2_wR0To6B_answer_actions"><span id="ld_6yUZYa_4369"><a class="view_comments supp " href="#" id="__w2_Cis40Rs_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4370"><a class="answer_permalink" href="/Is-it-okay-to-embed-a-link-with-affiliate-ID-if-its-relevant/answer/Brandon-Smietana"><span class="datetime" id="__w2_nJKlkGR_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4431"></span></span></div><div id="ld_6yUZYa_4371"><div class="comments answer_comments hidden" id="__w2_pc3Ub9g_answer_comments"><div id="ld_6yUZYa_4432"><div id="ld_6yUZYa_4501"><a name="comment101682"></a><div class="comment p0_5" id="__w2_L4PXX4c_comment"><p class="comment_text">That book page is so abandoned..no one cares about internet ethics</p><p class="action_bar"><span class="name_span">Anon User</span><span class="bullet"> &bull; </span><span class="datetime" id="__w2_rhECEdZ_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4239"><div class="feed_item stream_feed_item p1" id="__w2_o1j3mrk_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4273"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4300"><span id="ld_6yUZYa_4473"></span><a class="question_link" href="/Is-it-possible-for-a-1-or-2-person-team-to-make-a-successful-indie-game" id="__w2_bAc516C_link"><span id="ld_6yUZYa_4474"></span>Is it possible for a 1 or 2 person team to make a successful indie game?</a></span></h2></div></div><div id="ld_6yUZYa_4274"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_huRabyX_answer_voting"><div id="ld_6yUZYa_4372"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_WFYZzQf_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_WFYZzQf_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_huRabyX_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_IRh3jzG_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_IRh3jzG_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_IRh3jzG_menu_contents"> </div></div></span><div id="__w2_huRabyX_answer_voters"><div id="ld_6yUZYa_4373"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Alex-Wiltshire">Alex Wiltshire</a></span></div></div></div>Its possible but rare.<br /><br />Designing or building a great game is not the difficult part.<br /><br />There are 15 developers who are awesome for each developer that understands internet marketing.  The marketing and business aspects are usually the failing points for most developers.<div class="action_bar" id="__w2_huRabyX_answer_actions"><span id="ld_6yUZYa_4374"><a class="view_comments supp " href="#" id="__w2_v616bqz_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4375"><a class="answer_permalink" href="/Is-it-possible-for-a-1-or-2-person-team-to-make-a-successful-indie-game/answer/Brandon-Smietana"><span class="datetime" id="__w2_ok9DFsw_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4433"></span></span></div><div id="ld_6yUZYa_4376"><div class="comments answer_comments hidden" id="__w2_kAYs0PV_answer_comments"><div id="ld_6yUZYa_4434"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4240"><div class="feed_item stream_feed_item p1" id="__w2_QG66YhP_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4275"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4301"><span id="ld_6yUZYa_4475"></span><a class="question_link" href="/What-is-the-best-etiquette-for-ending-a-conversation-that-isnt-going-anywhere-at-a-networking-event" id="__w2_sHoy8B1_link"><span id="ld_6yUZYa_4476"><span class="best_source_icon" id="__w2_R9IeRzY_icon"></span></span>What is the best etiquette for ending a conversation that isn&#039;t going anywhere at a networking event?</a></span></h2></div></div><div id="ld_6yUZYa_4276"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_gopXCfV_answer_voting"><div id="ld_6yUZYa_4377"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_fibUXg7_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_fibUXg7_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_gopXCfV_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_kkXBIBR_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_kkXBIBR_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_kkXBIBR_menu_contents"> </div></div></span><div id="__w2_gopXCfV_answer_voters"><div id="ld_6yUZYa_4378"></div></div></div>I just walk away.<div class="action_bar" id="__w2_gopXCfV_answer_actions"><span id="ld_6yUZYa_4379"><a class="view_comments supp " href="#" id="__w2_Lz6S6yz_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4380"><a class="answer_permalink" href="/What-is-the-best-etiquette-for-ending-a-conversation-that-isnt-going-anywhere-at-a-networking-event/answer/Brandon-Smietana"><span class="datetime" id="__w2_FzQhcgH_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4435"></span></span></div><div id="ld_6yUZYa_4381"><div class="comments answer_comments hidden" id="__w2_C35Lpd3_answer_comments"><div id="ld_6yUZYa_4436"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4241"><div class="feed_item stream_feed_item p1" id="__w2_psppsND_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4277"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4302"><span id="ld_6yUZYa_4477"></span><a class="question_link" href="/What-are-the-implications-of-a-global-banking-system-that-is-completely-anonymous" id="__w2_TtaZb9E_link"><span id="ld_6yUZYa_4478"></span>What are the implications of a global banking system that is completely anonymous?</a></span></h2></div></div><div id="ld_6yUZYa_4278"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_ZLByqB5_answer_voting"><div id="ld_6yUZYa_4382"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_UPFKtXm_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_UPFKtXm_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_ZLByqB5_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_Z6wDt6x_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_Z6wDt6x_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_Z6wDt6x_menu_contents"> </div></div></span><div id="__w2_ZLByqB5_answer_voters"><div id="ld_6yUZYa_4383"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Russell-Stadler">Russell Stadler</a>, <a class="user" href="/Seb-Paquet">Seb Paquet</a> and <a class="user" href="/Bernd-Nurnberger">Bernd Nurnberger</a></span></div></div></div>Nothing.<br /><br />There is already 800 in billion laundered money in banks.  Completely anonymous money is unlikely to change criminal transactions very much.<br /><br />Terrorists and others are using money transfer network such as the hawala or funneling money through non-profits.  The only thing that would change is the government&#039;s ability to monitor the transactions.  Anonymous payment methods may not even affect the government&#039;s ability to effectively monitor these transactions as the government is primarily using network analysis techniques anyways.  The identity of the people do not matter so much as their network of relationships.<br /><br />Government control and can tax the point of sale.  A Walmart could reduce its taxes to the government by not reporting sales and taking money out of the cashdrawer and righting off the sold inventory, but that does not work at scale.  Only small cash businesses such as pizzerias and laundromats are able to do this without suffering fines and retribution by federal government.<br /><br />Bribery would be as easy with anonymous digital currency as it is with cash.  However we would only see kickbacks transition from being informal to formal relationships.  The government&#039;s ability to regulate &#039;political economy&#039; would be decreased.  You could argue whether this is good or bad for the economy.  You could argue that our current system privileges those with political connection<wbr />s and backrub relationships and excludes the masses from participating in the political economy.  Legalized or deniable bribery may increase scrutiny on public offices and subject them to greater monitoring and oversight, which may be a net improvement over the current system of implicit bribes and no transparency or oversight.<br /><br />We are actually better at enforcing payroll tax compliance at large cash businesses like Walmart (where many consumer do not have credit cards and bank accounts) than we are about using oversight to detect and regulate unlawful &#039;political economy&#039; transactions such as bribery.<br /><br />The government also has systems in place for collecting payroll taxes.  These systems are effective, despite the incentive of the employer and employee to lower reported wages (circumventing payroll taxes) and pay the employee directly (&#039;under the table&#039;), circumventing government imposed transaction fees (taxes).  This type of circumvention only happens in small cash businesses, but not at places such as Walmart.<br /><br />As the government controls the point of sale and is able to collect payroll taxes and sales taxes, its likely the the government&#039;s revenue would not be impacted by anonymous currency to a greater extent than it is by the usage of cash.  In fact, the anonymous digital cash transactions may be easier to monitor for the government.  It can mandate businesses use reporting devices and that businesses receive revenue and pay employees from government controlled or approved accounts.  The switch to digital currency and elimination of cash would improve government revenue for these activities, compared to transactions where cash is used.<br /><br />Where the government would lose tax revenue to evasion, is in the provision of online services, digital goods and investment instruments.  Online service providers (PHP programmers from India/China, iPhone application developers, web-designers) can receive revenue anonymously and c<wbr />ircumvent IRS reporting requirements, with the person controlling the account in a position to deny control of the account and avoid recognition of the revenue.  This is however no different than having an online businesses today owned by a bearer bond IBC which has puppet directors in another foreign country and which provides full deniability for the controller of the back accounts of the corporation.  Anonymous banking would only make these transactions easier, although it is harder to imagine that it could possibly be easier to do than it already is, when you consider the existing system.<br /><br />If you are very rich, there are better ways of creating intergenerational wealth and avoiding taxation, which are extremely effective.  For instance, most equity in Israel and many European countries is controlled by a small number of families.  They do not own the companies directly, but have controlling interests in companies which control these companies.   Less than 20 family control about over 30% of the equity in Israel&#039;s public traded companies, through controlling interests.<br /><br />What use is 30 billion dollars if you cannot spend it?  It is much better to have a dual class share structure, where one class of shares has 20 votes to the common share.  A class of shareholders controlling 5% of market-cap controls the company.  Also, no capital gains are paid until shares are sold off.  When they are sold, the seller pays 15% capital gains tax (compared to +45% capital gains tax from wage income).<br /><br />It therefore seems unlikely to me that the very wealthy would find much advantage in an anonymous currency system for the purpose of avoiding taxation (as they are already able to do that very effectively).  For instance, why would you want to realize $1 in revenue untaxed?  You would want that revenue going to your publicly traded company trading at a 20x P/E multiple.  The 1 dollar in revenue creates $20 in market cap, if you owned 10% of the company, then $1 in revenue to the company is $2 to your share-value at a 20x P/E multiple.  If you own 50%, that $1 is $10 in market cap.<br /><br />You take that $10 in market-cap increase and take a loan against your shares and invest them in 8% corporate bonds...  The advantages to the financial and corporate elite of the existing system, far out weigh the advantages of anonymity (as long as the government and system are stable).<br /><br />Smaller business owners who do not have access to the public market would however find a tax advantage resulting from the unique capacities of digital currency systems.<br /><br />Effectively anonymous monetary systems are developing in Africa (cell phone mediated payment networks).  I think there are reasons that such systems would develop and that we are about 20 years away from some cryptography based monetary systems (there is a strong financial incentiv<wbr />e for smaller countries to provide these services).<br /><br />They really will not change anything however.  Drugs will still come in from Mexico into America.  However, instead of drugs coming from Mexico to America and cash going from America back to Mexico, drugs will go from Mexico to America and cell phone text messages will go from America to Mexico.<br /><br />However, with these monetary systems, even if anonymous; a balance of payments will need to be maintained between entities.  If goods and services are provided in America (drugs) and payment is made to Mexico, the Mexicans will need to be able to purchase goods and services with their payment (presumably to be delivered or consumed in Mexico).  Currently, A provides goods to B and B provides cash to A.  The only difference under unregulated digital currency is that A provides goods/services to B and and B transfers currency to C to be held for A and A transfer currency to D in payment to E for services consumed by A.  Its basically exactly the same as the current cash transactions.<br /><br />In fact, there are few limitations that drug cartels face when using the existing banking system.  Mexican drug cartels have front companies with revenue from drug sales and have been known to purchase capital assets, (such as boats) which are used in the drug business.  For instance, the same boat will end up on a California shore (empty/abandoned, but was full of marijuana or crack-cocaine) and then end up on auctioned by the state, purchased by the same companies and end up back on the shore again.  This can happen 5-8 times for a single boat; it will be seized, determined to have been used for drug transport and then repurchased and seized again several times.<br /><br />The governments have this information and record these transactions, but they do not use the information effectively.  Not much would fundamentally change if governments and law enforcement did not have access to information.  In fact, stronger enforcement or usage of the information which is available would only have the effect of greater concealment by criminal organizations (which has exactly the same effect as adoption of anonymous systems for settling balance of payments from a law enforcement perspective!).  The fundamental issue is border control and the inability of nation states to police their borders against the import of drugs, weapons, immigrants and sex slaves.  If a nation state cannot prevent kidnapping or crime within its borders, it is easy to say &quot;digital currency will make this problem worse&quot;, but the problem is with the nation state losing its monopoly on the use of force within its borders, or the nation state losing the ability to enforce its regulations upon its population or to secure its borders against the import of drugs or weapons.<br /><br />Also, it is likely that the advantages of anonymous digital currency would not be sufficient enough for criminal organizations to abandon the convenience of the existing financial, corporate and legal structures.  For instance, criminals will say &quot;I can get a bank against the income of my front company to finance the purchase of capital assets; but how do I get a bank loan against my anonymous digital currency income?&quot;<br /><br />Without a fully developed modern financial systems around the anonymous digital, it is of limited utility for anything but evading taxes.  It would be almost useless for the purpose of capital flight, unless it was possible to buy bonds or securities while skirting reporting requirements.  You would need a broker dealer willing to do this (hence the system is only feasible if state sponsored by at least one sovereign nation).<br /><br />It is not clear to me that you can security assets or enforce property rights without enforcement by a sovereign nation state.  So maybe you could buy equity in an online digital goods business which receives all payments through anonymous digital currency.  However, how would you audit the books of that business?  Who would enforce the voting rights that your equity ownership entails?<br /><br />You need a system of digital contracts and some advances in secure multi-party computing and<wbr /> cryptographic protocols before you can start developing a shadow finance system on top of the digital currency, which would be independent of right enforced by nation states.  That is still a long ways off.<br /><br />The ownership and transaction structures which would emerge would have to reflect what is enforceable through pr<wbr />otocols and would likely end up being much different than the investment instruments we have in our current system.  Therefore we will likely be seeing a hybrid system, for at-least the next 80 years.<br /><br />For an example of a &#039;hybrid system&#039; that governments are trying to regulate out of existence, look up &quot;hawala&quot;.  The hawala networks rely more on trust and social relationships than cryptography.<div class="action_bar" id="__w2_ZLByqB5_answer_actions"><span id="ld_6yUZYa_4384"><a class="view_comments supp " href="#" id="__w2_wknN39m_view_comment_link">29 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4385"><a class="answer_permalink" href="/What-are-the-implications-of-a-global-banking-system-that-is-completely-anonymous/answer/Brandon-Smietana"><span class="datetime" id="__w2_Bz1gWdq_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4437"></span></span></div><div id="ld_6yUZYa_4386"><div class="comments answer_comments hidden" id="__w2_KhW24Lz_answer_comments"><div id="ld_6yUZYa_4438"><div id="ld_6yUZYa_4502"><a name="comment98946"></a><div class="comment p0_5" id="__w2_Fzfds1U_comment"><p class="comment_text">Brandon, oh let me count the ways :-), if the drug cartels don&#039;t have any problems useing the current financial system why do they still fly and ship by smugglers highspeed boats bails and bails of 100 dollar bills.<br /><br />The Isreali government understood that about organized crime in there country and in the 1980&#039;s I think date may be wrong but not what I describe. They redesigned there cash and made exchanging old cash for new cash a higly regulated process and did not pre announce what would happen. Thus it was estimated in the press that they were able to confiscate a very large percentage of organized crimes assets. Your system if controlled by a government might make a move like that easier but I think it would do just the opposite. If the US government would simply do that every ten years organized crime would not be anywhere near as profitable.<br /><br />Now as to your proposed system not effecting tax collection you do understand that sales tax and payroll tax are not the only or even majority forms of taxes collected in the US. Income Tax, Property Tax, Corporate Income Tax collect the lion share of taxes paid in the US. Income tax paid by small buisness is a huge percentage of that tax revenue and is precisely were your system would most assuredly make tax avoidance easier. The idea you seem to have that only elites are active in capital markets is also not as black and white as your presentation makes it sound.<br /><br />I stand by my answer that an anonymous e-currency system would; Money laundering, blackmail, extortion, human trafficking, drug sales, tax evasion, fraud, and the complete disruption of markets that depend on transparency, would all be made much easier by a truly anonymous banking system.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_OCOViqO_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4503"><a name="comment99016"></a><div class="comment p0_5" id="__w2_YnW8WBW_comment"><p class="comment_text">&quot;The idea you seem to have that only elites are active in capital markets is also not as black and white as your presentation makes it sound.&quot;<br /><br />70% of Americans live paycheck to pay check.  Bill Gates has more assets than the bottle 50% of the rabble.  I do not see Wallmart workers starting public companies or earning hundreds of thousands a year arbitraging complex <wbr />financial products.<br /><br />If you have a jet an a publicly traded company or use advanced financial produc<wbr />ts to achieve leverage, then you would probably be considered an &quot;elite&quot; or an &quot;insider&quot; by most reasonable definitions.<br /><br />&quot;if the drug cartels don&#039;t have any problems useing the current financial system why do they still fly and ship by smugglers highspeed boats bails and bails of 100 dollar bills.&quot;<br /><br />They are using the banks loans against their drug profits to buy the boats and planes.  All the enforcement efforts only increase the cost of capital for criminal organizations by ~30%.  Its just the cost of doing business for these organizations.<br /><br />Over half of the problems you suggest  anonymous digital currency will cause are &quot;border control problems&quot; that have nothing to do with currency exchange.  These criminal organisations al<wbr />ready have anonymous currency systems.  They are bulk shipping &quot;stored valued cards&quot; across the boarder and selling them at a 5% discount on markets, to settle balance of payments.  The system is already effectively anonymous for them.<br /><br />Large criminal organizations already have systems in place that accomplish this objective.  The only thing that is change is that the public is gaining access to anonymous banking and it is no longer reserved for governments and organized crime.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_IJcdOCz_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4504"><a name="comment99252"></a><div class="comment p0_5" id="__w2_orulsrM_comment"><p class="comment_text">Thank you, those are some interesting points. <br /><br />However the $800 billion of laundered money in the banking system that you mention is a very small amount compared to the amount of anonymous money there would be if the global banking system is &#039;completely&#039; anonymous. <br /><br />To give some indication of the amounts, the foreign exchange market alone transacts between 2 to 4 trillion dollars every day for 5 &amp; 1/2 days of the week.<br /><br />Complete anonymity would make the entire financial system open to money that currently needs to be laundered or channelled through closed networks. IMO this would have some significant influence on the dynamics of criminal transactions.</p><p class="action_bar"><a class="user" href="/John-Ringland">John Ringland</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_fmQxw2F_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4505"><div class="comment comment_dotdotdot p0_5"><a class="supp" href="#" onclick="$(&#039;.hidden_comments_127217&#039;).toggleClass(&#039;hidden&#039;);
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- return false;">...show <span><span id="ld_RGxTHo_739">6</span></span> hidden comments...</a></div><div class="hidden_comments_124063 hidden"><div id="ld_RGxTHo_740"><div id="ld_RGxTHo_741"><a name="comment_96061"></a><div class="comment p0_5" id="__w2_HbtwbBO_comment"><p class="comment_text">&quot;The vast majority of people have no plans or meaningful goals in life and those that do are doing nothing to execute on them.&quot; - I have to disagree with this. A lot of people have goals that may not require wealth (though I would say sometimes, some people do fail to see that wealth can help make whatever they want to do a lot faster and easier).</p><p class="action_bar"><a class="user" href="/Edwin-Khoo">Edwin Khoo</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_PVGPyoG_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_742"><a name="comment_96094"></a><div class="comment p0_5" id="__w2_G8gVQ2c_comment"><p class="comment_text">&quot;The vast majority of people have no plans or meaningful goals in life and those that do are doing nothing to execute on them.&quot;<br /><br />I am going by the data, which shows that few people have goals.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gHSpCq7_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_743"><a name="comment_96096"></a><div class="comment p0_5" id="__w2_YSQOIpF_comment"><p class="comment_text">Could you please quote the sources? Thanks.</p><p class="action_bar"><a class="user" href="/Edwin-Khoo">Edwin Khoo</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_wJYhDXY_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_744"><a name="comment_96098"></a><div class="comment p0_5" id="__w2_iM7mUXx_comment"><p class="comment_text">It was some study by the Ford foundation.  I have to dig it up.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_hG2R4Iw_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_745"><a name="comment_96627"></a><div class="comment p0_5" id="__w2_CjpqeXU_comment"><p class="comment_text">&quot;have a slave mentality.  They do what they are told.  They want out of life what people tell them they should want.  They believe that money cannot make them happy but also believe women or family can make them happy, or other absurdities you find in popular culture.  They believe socially transmitted notions that are not validated by data and they try to live their lives by them.&quot;<br /><br /><br />How do you still call them intelligent?</p><p class="action_bar"><a class="user" href="/Sai-Kumar">Sai Kumar</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_lomJZ5B_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_746"><a name="comment_96959"></a><div class="comment p0_5" id="__w2_JlaGvCz_comment"><p class="comment_text">&quot;How do you still call them intelligent?&quot;<br /><br />They can solve partial differential equations, or write ten thousand line python programs or design a high performance key-value store.  They are not stupid.<br /><br />They have just spent their whole life being shuffled from institution to institution, with their work assignments being handed to them.  They are happy within the institutional framewo<wbr />rk.<br /><br />However, you will capture very little of the wealth you create within that framework (outside of finance).  For instance, Kerry Mullis invented the PCR process and his company patented it.  His company generated hundreds of millions of dollars a year from the patent, but Kerry Mullis only received a $10,000 bonus for the invention.<br /><br />Value produced and value captured diverge sharply in the modern corporation.<br /><br />By &quot;slave mentality&quot; I mean, that people are socialized for certain roles within institutions and for occupying certain places within a network of workflows.  They tend to acquire a workflow orientation rather an outcome or performance orientation.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_km6inXb_datespan">Insert a dynamic date here</span></p></div></div></div></div></div><div id="ld_RGxTHo_731"><a name="comment_97083"></a><div class="comment p0_5" id="__w2_inY6MEP_comment"><p class="comment_text">Brandon, we all grow up in a framework where someone is &quot;in charge.&quot;  First it is our parents, then it is our teachers, then it is our boss.  We are socialized for the first 25+ years of our life to have someone to please, someone who has power over us, and someone we can defer to.<br /><br />I think the hardest mindset for people who start companies to get out of is that &quot;no one&quot; is in charge now!  *They* are in charge!  There is no one else.  To many it is thilling and liberating.  To others it is scary, isolating, and disorienting.<br /><br />I think that some of the phenomenon that I&#039;ve heard you describe on Quora, where entrepreneurs find VCs, turn over control to them, and act like they &quot;work for&quot; them, is to a large degree an effort to get back to a place of comfort where they don&#039;t ultimately have control, nor complete responsibility.<br /><br />That is also why questions like &quot;what do investors want to see?&quot; and &quot;what will look good on my resume to a future employer&quot; absolutely drive me bonkers.    They are all an effort to return to a comfortable place in the hierarchy where asking what the higher-ups want to see and doing that is way more comfortable than just hanging out there doing what you think is right.</p><p class="action_bar"><a class="user" href="/Michael-Wolfe">Michael Wolfe</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CPcTbX1_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_732"><a name="comment_97112"></a><div class="comment p0_5" id="__w2_j2RZDrh_comment"><p class="comment_text">Michael, that is a very interesting observation.<br /><br />&gt;&quot;what do investors want to see?&quot;, &quot;what will look good on my resume to a future employer&quot; absolutely drive me bonkers.<br /><br />Me too; I get a headache when I see questions like that.  People are more concerned about the perceptions than they are about the reality.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_ysFKcPz_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_472"><div class="feed_item stream_feed_item p1" id="__w2_n34Cfss_item"><div class="e_col w4_5"><div id="ld_RGxTHo_504"><div class="feed_item_question"><h2><span id="ld_RGxTHo_533"><span id="ld_RGxTHo_704"></span><a class="question_link" href="/What-are-the-main-arguments-that-super-angels-have-against-VCs" id="__w2_z6vsFAT_link"><span id="ld_RGxTHo_705"></span>What are the main arguments that super angels have against VCs?</a></span></h2></div></div><div id="ld_RGxTHo_505"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_jm92Dnu_answer_voting"><div id="ld_RGxTHo_597"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_VenC2RV_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_VenC2RV_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_jm92Dnu_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_GTQfwxh_link"><span class="rep" id="__w2_GTQfwxh_sig">I write machine learning based s...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_GTQfwxh_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_GTQfwxh_menu_contents"> </div></div></span><div id="__w2_jm92Dnu_answer_voters"><div id="ld_RGxTHo_598"></div></div></div>Many angels do not like their portfolio companies to take VC, because companies taking VC have longer exit times and lower rates of return for angels than companies that can do an M&amp;A for 10-30 million without taking VC.<br /><br />I think the mean time to exit for a VC portfolio company is almost ~12-16 years today.  Compare that with your average angel portfolio company.<br /><br />I think it comes down to the fact that angels have higher returns than VCs, shorter exits and have a lower cost of capital for the entrepreneur compared to VC (when you factor in the board control you are giving up and other factors).<br /><br />Ultimately, most of the attacks against traditional VC come down to the fact that VC as an asset class has been performing horribly.<div class="action_bar" id="__w2_jm92Dnu_answer_actions"><span id="ld_RGxTHo_599"><a class="view_comments supp " href="#" id="__w2_MLRk2k3_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_600"><a class="answer_permalink" href="/What-are-the-main-arguments-that-super-angels-have-against-VCs/answer/Brandon-Smietana"><span class="datetime" id="__w2_a9q2zUR_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_664"></span></span></div><div id="ld_RGxTHo_601"><div class="comments answer_comments hidden" id="__w2_HRDKEGo_answer_comments"><div id="ld_RGxTHo_665"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_473"><div class="feed_item stream_feed_item p1" id="__w2_JCzoJCm_item"><div class="e_col w4_5"><div id="ld_RGxTHo_506"><div class="feed_item_question"><h2><span id="ld_RGxTHo_534"><span id="ld_RGxTHo_706"></span><a class="question_link" href="/Are-Peter-Thiel-and-Vinod-Khosla-right-that-its-the-end-of-Web-2-0-and-the-beginning-of-the-golden-age-of-greentech-and-biotech" id="__w2_IRYCRHa_link"><span id="ld_RGxTHo_707"><span class="best_source_icon" id="__w2_wFTRJrm_icon"></span></span>Are Peter Thiel and Vinod Khosla right that it&#039;s the end of &quot;Web 2.0&quot; and the beginning of the golden age of greentech and biotech?</a></span></h2></div></div><div id="ld_RGxTHo_507"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_EYR6R6C_answer_voting"><div id="ld_RGxTHo_602"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_X8AUfbQ_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_X8AUfbQ_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_EYR6R6C_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_OMfcDSJ_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_OMfcDSJ_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_OMfcDSJ_menu_contents"> </div></div></span><div id="__w2_EYR6R6C_answer_voters"><div id="ld_RGxTHo_603"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Anthony-Foster">Anthony Foster</a> and <a class="user" href="/Fahd-Butt">Fahd Butt</a></span></div></div></div>Mobile<br />Social <br />Social Games<br />Semantic Web<br />Databases<br />Enterprise<br />&quot;Clean Tech&quot;<br />UAVs<br />Call center automation / Agent systems<br />NLP<br /><br />Its not either/or.  The reality is that everything is exploding and there are several areas that are experiencing massive growth or will be very important in the future.<br /><br />If you were a VC, you are going to see better returns in at least moderately capital intensive industries than in Web 2.0.  The capital costs for these companies are too low and most of the money is being made from 10-30 million M&amp;A events.  We are seeing hundreds of social networks, but they only have 2-10 millions of users each.<br /><br />There will be fewer Amazons and Facebooks and more market segmentation and lower barriers to entry.<br /><br />When you look at the trend-lines, there are a large number of areas which are becoming increasingly important, but as an investor these areas vary significantly in their returns.  We mights see 400 solar startups and 2-3 of them will survive after industry consolidation an<wbr />d price competition.  They might have massive sales, but low margins because of price competition.  There is a similar situation with algae biofuels.<br /><br />It will be difficult to achieve high margins in competition with state subsidized companie<wbr />s in China and a global market.  Especially in solar and biofuel production.<br /><br />This is good for the economy, but bad for the investor.  On the other hand, healthcare technologies have software like margins and high capital costs and could produce substantial retur<wbr />ns; but face regulatory challenges.<br /><br />Many of these technologies are just displacing existing technologies; cheaper solar power cannibalizing coal and natural gas power plants; algae biofuels substituting for corn ethanol and oil.  They are merely substitutes for existing commodities.<br /><br />Other areas are completely new markets, such as social gaming.  Roughly I would ask &quot;Is this technology substituting or creating a new market or is a complement of something existing?&quot;.  For instance, algae biofuel substitutes for gasoline (a commodity) where as call center automation technology substitutes hu<wbr />man labor for capital costs.<br /><br />Overall, its a golden age for everything.  Its not just clean-tech or Web 2.0; one does not start where the other ends.  The question about where to put your money to achieve a high rate of return, is more difficult question.  In general, lumping companies by market is not a good way to look at return data.  When someone says &quot;enterprise software is hot&quot;, what they mean is that there are 400 VC backed enterprise software companies and 10 of them are going to produce a great return and 300 of them will go no where.<br /><br />The individual company and where it fits in its market&#039;s value chain is probably more important.<br /><br />It is however interesting that VCs in SV are looking at biotech and clean tech companies.  It would be interesting if SV branched out beyond software and started developing expertise in the physical sciences again (such as occurred when IC production was a hot area).<div class="action_bar" id="__w2_EYR6R6C_answer_actions"><span id="ld_RGxTHo_604"><a class="view_comments supp " href="#" id="__w2_aTN9yAr_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_605"><a class="answer_permalink" href="/Are-Peter-Thiel-and-Vinod-Khosla-right-that-its-the-end-of-Web-2-0-and-the-beginning-of-the-golden-age-of-greentech-and-biotech/answer/Brandon-Smietana"><span class="datetime" id="__w2_JTAAOfw_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_666"></span></span></div><div id="ld_RGxTHo_606"><div class="comments answer_comments hidden" id="__w2_ksgDTcF_answer_comments"><div id="ld_RGxTHo_667"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_474"><div class="feed_item stream_feed_item p1" id="__w2_gSLabUx_item"><div class="e_col w4_5"><div id="ld_RGxTHo_508"><div class="feed_item_question"><h2><span id="ld_RGxTHo_535"><span id="ld_RGxTHo_708"></span><a class="question_link" href="/The-Social-Network-movie/What-is-the-truth-of-the-Facebook-story" id="__w2_y6BcJYJ_link"><span id="ld_RGxTHo_709"></span>What is the truth of the Facebook story?</a></span></h2></div></div><div id="ld_RGxTHo_509"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_XMV9oci_answer_voting"><div id="ld_RGxTHo_607"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_BKLZR6y_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_BKLZR6y_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_XMV9oci_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_tTWd6ym_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_tTWd6ym_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_tTWd6ym_menu_contents"> </div></div></span><div id="__w2_XMV9oci_answer_voters"><div id="ld_RGxTHo_608"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">4</strong> votes</span> by <a class="user" href="/Giorgi-Lekveishvili">Giorgi Lekveishvili</a>, <a class="user" href="/Amrish-Kapoor">Amrish Kapoor</a>, <a class="user" href="/David-Haddad">David Haddad</a> and <a class="user" href="/Gene-Linetsky">Gene Linetsky</a></span></div></div></div>The winner writes history.<br /><br />The literature on the founding of Facebook is mostly whitewashed, because of Facebook&#039;s market position it does no one any good to say negative things about the company.<br /><br />You would not even receive access to the executives unless they were assured the coverage would be positive and that dissenting opinions were censored.  Companies restrict access to media outlets which do not provide positive press coverage.  In the case of Apple, companies may even be retaliated against if they do not fire journalists and bloggers that are critical of the company.<br /><br />Companies like Zynga will not even grant interviews with executives unless they are assured in advance that the article will be noting but praise, in advance of the interview.<br /><br />On the other side, are the people that were manipulated, had their &quot;idea stolen&quot; or were kicked out of the company.<br /><br />The truth is somewhere in-between.<div class="action_bar" id="__w2_XMV9oci_answer_actions"><span id="ld_RGxTHo_609"><a class="view_comments supp " href="#" id="__w2_N8N5Soh_view_comment_link">3 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_610"><a class="answer_permalink" href="/The-Social-Network-movie/What-is-the-truth-of-the-Facebook-story/answer/Brandon-Smietana"><span class="datetime" id="__w2_nr5IVPm_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_668"></span></span></div><div id="ld_RGxTHo_611"><div class="comments answer_comments hidden" id="__w2_SlkoTbX_answer_comments"><div id="ld_RGxTHo_669"><div id="ld_RGxTHo_733"><a name="comment_95042"></a><div class="comment p0_5" id="__w2_nNeI1yn_comment"><p class="comment_text">Yes. Your non sequitur is value-less, thanks for playing.</p><p class="action_bar"><a class="user" href="/Andrew-Badera">Andrew Badera</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_J0Vfhag_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_734"><a name="comment_95050"></a><div class="comment p0_5" id="__w2_kiZdQnz_comment"><p class="comment_text">I am censoring you.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gSbj6mT_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_RGxTHo_735"><a name="comment_95059"></a><div class="comment p0_5" id="__w2_XEl8thT_comment"><p class="comment_text">Oops, I censored you again.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_MQdVIJY_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_475"><div class="feed_item stream_feed_item p1" id="__w2_Fm3SRKW_item"><div class="e_col w4_5"><div id="ld_RGxTHo_510"><div class="feed_item_question"><h2><span id="ld_RGxTHo_536"><span id="ld_RGxTHo_710"></span><a class="question_link" href="/What-are-the-arguments-against-index-investing" id="__w2_IOzqMQF_link"><span id="ld_RGxTHo_711"></span>What are the arguments against index investing?</a></span></h2></div></div><div id="ld_RGxTHo_511"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_eujLZAC_answer_voting"><div id="ld_RGxTHo_612"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_ZvL7nSq_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ZvL7nSq_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_eujLZAC_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_t2e12LP_link"><span class="rep" id="__w2_t2e12LP_sig">I write machine learning based s...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_t2e12LP_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_t2e12LP_menu_contents"> </div></div></span><div id="__w2_eujLZAC_answer_voters"><div id="ld_RGxTHo_613"></div></div></div>The index is observable but the market portfolio is unobservable.<br /><br />Beta can only be estimated from historical data, its not observable.<br /><br />The index also changes based upon the time horizon of your investment, if you are using a mean-variance portfolio theory; which are implicitly single period investment theories.<br /><br />In a mean-variance portfolio theory with factor weightings, the index depends on the factors.  The CAPM assumes the index weightings can be inferred from market-cap, however this breaks down when you have factors as the market portfolio from the data and from the market-cap data are two different things.<br /><br />The market does not actually obey the CAPM and the market-portfolio and the index-portfolio are actually different portfolios.<br /><br />There are other questions which are interesting, such as &quot;Are you computing beta against the index portfolio or against the unobservable market portfolio&quot;.<br /><br />I think that in general, you can construct a portfolio that has better risk/return characteristi<wbr />cs than the index through mean-variance portfolio construction methodologies.  I am however biased towards the use of mathematics in portfolio construction.<div class="action_bar" id="__w2_eujLZAC_answer_actions"><span id="ld_RGxTHo_614"><a class="view_comments supp " href="#" id="__w2_Oe8mLjg_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_615"><a class="answer_permalink" href="/What-are-the-arguments-against-index-investing/answer/Brandon-Smietana"><span class="datetime" id="__w2_cDmHf2V_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_670"></span></span></div><div id="ld_RGxTHo_616"><div class="comments answer_comments hidden" id="__w2_JNQExcB_answer_comments"><div id="ld_RGxTHo_671"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_476"><div class="feed_item stream_feed_item p1" id="__w2_TJu6JNK_item"><div class="e_col w4_5"><div id="ld_RGxTHo_512"><div class="feed_item_question"><h2><span id="ld_RGxTHo_537"><span id="ld_RGxTHo_712"></span><a class="question_link" href="/What-were-the-4-or-5-key-decisions-that-Mark-Zuckerberg-made-in-the-early-days-of-Facebook" id="__w2_Bnx9U4B_link"><span id="ld_RGxTHo_713"></span>What were the 4 or 5 key decisions that Mark Zuckerberg made in the early days of Facebook?</a></span></h2></div></div><div id="ld_RGxTHo_513"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_Ml5u7aQ_answer_voting"><div id="ld_RGxTHo_617"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_maflrPb_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_maflrPb_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Ml5u7aQ_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_wPz24eJ_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_wPz24eJ_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_wPz24eJ_menu_contents"> </div></div></span><div id="__w2_Ml5u7aQ_answer_voters"><div id="ld_RGxTHo_618"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">4</strong> votes</span> by <a class="user" href="/Catalin-Braescu">Catalin Braescu</a>, <a class="user" href="/Ruchit-Shah">Ruchit Shah</a>, <a class="user" href="/Carlos-Leiva-Burotto">Carlos Leiva Burotto</a> and <a class="user" href="/David-Haddad">David Haddad</a></span></div></div></div>1.  He got lucky<br />2.  He met Sean Parker<br />3.  He decided to build the thing<br />4.  He met Web 2.0 people and leveraged his relations to get advice and people.<br />5.  He made the choice to retain control of his company<br /><br />I think there is nothing spectacular about Zuckerburg.  He tried to make some very stupid decisions, however the people around him were experienced and talked him out of it.<br /><br />For instance, Zuckerberg tried going back to college instead of working on Facebook full time (Seak Parker talked him out of it).  Zuckerburg almost gave up board control to investors (Sean Parker talked him out of it; Parker was kicked out of three previous companies by his investors and learned this lesson the hard way).<br /><br />Zuckerberg&#039;s success has as much to do with the people around him as it does with any grand choice Zuckerberg made.<br /><br />The one key decision that I think was extremely important and attributed to Zuckerberg alone, is that he chose not to sell to Yahoo for just under a billion dollars.  That decision led Facebook to where it is today.<br /><br />Facebook&#039;s strategy of going from college to college and its brilliant use of network externalities seemed to have been the result of a very small number of intelligent people (ex. Sean Parker, Peter Thiel and Marc Anderson) around Zuckenburg.  Many of facebook&#039;s core strategies (social graph) leverage network externalities (classic Shapiro and Varian) and its not clear to me that Zuckenburg would have even been aware of these strategies, except for the very interesting group of people around him.<br /><br />I think that its very difficult to explain Facebook&#039;s success in terms of a &quot;Great Man&quot; theory, where one person was the critical factor in the critical success of the company.<div class="action_bar" id="__w2_Ml5u7aQ_answer_actions"><span id="ld_RGxTHo_619"><a class="view_comments supp " href="#" id="__w2_otsb9B7_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_620"><a class="answer_permalink" href="/What-were-the-4-or-5-key-decisions-that-Mark-Zuckerberg-made-in-the-early-days-of-Facebook/answer/Brandon-Smietana"><span class="datetime" id="__w2_SJ9Ywa5_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_672"></span></span></div><div id="ld_RGxTHo_621"><div class="comments answer_comments hidden" id="__w2_nsA90cq_answer_comments"><div id="ld_RGxTHo_673"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_477"><div class="feed_item stream_feed_item p1" id="__w2_aSbr94N_item"><div class="e_col w4_5"><div id="ld_RGxTHo_514"><div class="feed_item_question"><h2><span id="ld_RGxTHo_538"><span id="ld_RGxTHo_714"></span><a class="question_link" href="/Is-Zynga-a-sociopathic-company" id="__w2_RJBN2BM_link"><span id="ld_RGxTHo_715"></span>Is Zynga a sociopathic company?</a></span></h2></div></div><div id="ld_RGxTHo_515"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_fGGlrPP_answer_voting"><div id="ld_RGxTHo_622"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_TjUDS0Q_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_TjUDS0Q_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_fGGlrPP_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_e3cuUN8_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_e3cuUN8_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_e3cuUN8_menu_contents"> </div></div></span><div id="__w2_fGGlrPP_answer_voters"><div id="ld_RGxTHo_623"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Anthony-Foster">Anthony Foster</a> and <a class="user" href="/Adam-Rifkin">Adam Rifkin</a></span></div></div></div>Zynga executives have a fiduciary obligation to be sociopathic.<div class="action_bar" id="__w2_fGGlrPP_answer_actions"><span id="ld_RGxTHo_624"><a class="view_comments supp " href="#" id="__w2_lV0F0pS_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_625"><a class="answer_permalink" href="/Is-Zynga-a-sociopathic-company/answer/Brandon-Smietana"><span class="datetime" id="__w2_wlmsYeb_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_674"></span></span></div><div id="ld_RGxTHo_626"><div class="comments answer_comments hidden" id="__w2_YqLgIs2_answer_comments"><div id="ld_RGxTHo_675"><div id="ld_RGxTHo_736"><a name="comment_93324"></a><div class="comment p0_5" id="__w2_lfmXnZ8_comment"><p class="comment_text">This may be the best comment on Quora.</p><p class="action_bar"><a class="user" href="/TJ-Murphy">TJ Murphy</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_a8riD13_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_478"><div class="feed_item stream_feed_item p1" id="__w2_gCMr21y_item"><div class="e_col w4_5"><div id="ld_RGxTHo_516"><div class="feed_item_question"><h2><span id="ld_RGxTHo_539"><span id="ld_RGxTHo_716"></span><a class="question_link" href="/Startup-Advice-Strategy/As-a-first-time-entrepreneur-what-part-of-the-process-were-you-completely-blind-to" id="__w2_g5B3nbC_link"><span id="ld_RGxTHo_717"></span>As a first time entrepreneur, what part of the process were you completely blind to?</a></span></h2></div></div><div id="ld_RGxTHo_517"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_pvBZ4AM_answer_voting"><div id="ld_RGxTHo_627"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_oZXt4Dg_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_oZXt4Dg_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_pvBZ4AM_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_iw1BnE0_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_iw1BnE0_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_iw1BnE0_menu_contents"> </div></div></span><div id="__w2_pvBZ4AM_answer_voters"><div id="ld_RGxTHo_628"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">6</strong> votes</span> by <span id="__w2_qsVwzU6_view_all"><a class="user" href="/Max-Ischenko">Max Ischenko</a>, <a class="user" href="/Daniel-Shi">Daniel Shi</a>, <a class="user" href="/Antone-Johnson">Antone Johnson</a>, </span> <a class="more_link" href="#" id="__w2_qsVwzU6_view_all_link">(more)</a><span class="hidden" id="__w2_qsVwzU6_all_phrases"><a class="user" href="/Max-Ischenko">Max Ischenko</a>, <a class="user" href="/Daniel-Shi">Daniel Shi</a>, <a class="user" href="/Antone-Johnson">Antone Johnson</a>, <a class="user" href="/Charles-Krohn">Charles Krohn</a>, <a class="user" href="/Anthony-Foster">Anthony Foster</a> and <a class="user" href="/Shanky-Surana">Shanky Surana</a></span></span></div></div></div>Innovation is extremely expensive and is often a moonshot.<br /><br />Copying, improving on and burying competitors in a small market is easy and fun.<div class="action_bar" id="__w2_pvBZ4AM_answer_actions"><span id="ld_RGxTHo_629"><a class="view_comments supp " href="#" id="__w2_w4NzDNP_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_630"><a class="answer_permalink" href="/Startup-Advice-Strategy/As-a-first-time-entrepreneur-what-part-of-the-process-were-you-completely-blind-to/answer/Brandon-Smietana"><span class="datetime" id="__w2_dSq3uJG_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_676"></span></span></div><div id="ld_RGxTHo_631"><div class="comments answer_comments hidden" id="__w2_wIBoRbK_answer_comments"><div id="ld_RGxTHo_677"><div id="ld_RGxTHo_737"><a name="comment_93075"></a><div class="comment p0_5" id="__w2_G0zSmlF_comment"><p class="comment_text">If this was posted as anon i would have assumed its Marc Pincus for sure</p><p class="action_bar"><a class="user" href="/Aditya-Raman-D">Aditya Raman D</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_JClmvz5_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_479"><div class="feed_item stream_feed_item p1" id="__w2_JddsrLR_item"><div class="e_col w4_5"><div id="ld_RGxTHo_518"><div class="feed_item_question"><h2><span id="ld_RGxTHo_540"><span id="ld_RGxTHo_718"></span><a class="question_link" href="/Would-a-Chinese-government-sponsored-cyber-attack-against-the-US-be-enough-to-trigger-a-war-between-the-two-countries" id="__w2_KxwI6rC_link"><span id="ld_RGxTHo_719"></span>Would a Chinese government sponsored cyber attack against the US be enough to trigger a war between the two countries?</a></span></h2></div></div><div id="ld_RGxTHo_519"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_LkGc1mj_answer_voting"><div id="ld_RGxTHo_632"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_khwg7oM_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_khwg7oM_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_LkGc1mj_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_jlNXHUD_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_jlNXHUD_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_jlNXHUD_menu_contents"> </div></div></span><div id="__w2_LkGc1mj_answer_voters"><div id="ld_RGxTHo_633"></div></div></div>It would be very difficult to determine if a cyber attack was in-fact state sponsored.  It would be very difficult to determine its source.<br /><br />Also, it would be unlikely to target infrastructure in a destructive manner and more likely involve collection of intelligence data or corporate espionage.  For example, consider operation Aurora.<br /><br />It is very unlikely that China would be immediately identified as the aggressor.  In fact, a cyber attack may not even be identified until years after it has already been in effect.  Consider operation Aurora.<div class="action_bar" id="__w2_LkGc1mj_answer_actions"><span id="ld_RGxTHo_634"><a class="view_comments supp " href="#" id="__w2_w7vWbbP_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_635"><a class="answer_permalink" href="/Would-a-Chinese-government-sponsored-cyber-attack-against-the-US-be-enough-to-trigger-a-war-between-the-two-countries/answer/Brandon-Smietana"><span class="datetime" id="__w2_jpHIcw5_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_678"></span></span></div><div id="ld_RGxTHo_636"><div class="comments answer_comments hidden" id="__w2_sAPNML8_answer_comments"><div id="ld_RGxTHo_679"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_RGxTHo_480"><div class="feed_item stream_feed_item p1" id="__w2_x5czoYZ_item"><div class="e_col w4_5"><div id="ld_RGxTHo_520"><div class="feed_item_question"><h2><span id="ld_RGxTHo_541"><span id="ld_RGxTHo_720"></span><a class="question_link" href="/Larry-Ellison/Why-does-Larry-Ellison-have-no-eyebrows" id="__w2_AKICmpC_link"><span id="ld_RGxTHo_721"></span>Why does Larry Ellison have no eyebrows?</a></span></h2></div></div><div id="ld_RGxTHo_521"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_wuMyALo_answer_voting"><div id="ld_RGxTHo_637"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_MKK31nv_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_MKK31nv_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_wuMyALo_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_cs9p2Zp_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_cs9p2Zp_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_cs9p2Zp_menu_contents"> </div></div></span><div id="__w2_wuMyALo_answer_voters"><div id="ld_RGxTHo_638"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">6</strong> votes</span> by <span id="__w2_osiOtAx_view_all"><span class="name_span">Anon User</span>, <a class="user" href="/David-Haddad">David Haddad</a>, <a class="user" href="/John-Marsland">John Marsland</a>, </span> <a class="more_link" href="#" id="__w2_osiOtAx_view_all_link">(more)</a><span class="hidden" id="__w2_osiOtAx_all_phrases"><span class="name_span">Anon User</span>, <a class="user" href="/David-Haddad">David Haddad</a>, <a class="user" href="/John-Marsland">John Marsland</a>, <a class="user" href="/Catalin-Braescu">Catalin Braescu</a>, <a class="user" href="/Gene-Linetsky">Gene Linetsky</a> and <a class="user" href="/Erbil-Karaman">Erbil Karaman</a></span></span></div></div></div>Larry Ellison lost his eyebrows in the nuclear accident that gave him his superpowers.<div class="action_bar" id="__w2_wuMyALo_answer_actions"><span id="ld_RGxTHo_639"><a class="view_comments supp " href="#" id="__w2_vZUP8bk_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_RGxTHo_640"><a class="answer_permalink" href="/Larry-Ellison/Why-does-Larry-Ellison-have-no-eyebrows/answer/Brandon-Smietana"><span class="datetime" id="__w2_p8ibHCd_datespan">Insert a dynamic date here</span></a><span id="ld_RGxTHo_680"></span></span></div><div id="ld_RGxTHo_641"><div class="comments answer_comments hidden" id="__w2_mNbqXlY_answer_comments"><div id="ld_RGxTHo_681"><div id="ld_RGxTHo_738"><a name="comment_90049"></a><div class="comment p0_5" id="__w2_nWZ1J2D_comment"><p class="comment_text">I thought he lost them in a divorce settlement.</p><p class="action_bar"><a class="user" href="/Ryan-Lackey">Ryan Lackey</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_w8ZOKVu_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div id="ld_RGxTHo_481"><div class="hidden" id="__w2_SoET9yM_loading"><span class="__wn2_loading"><span class="__wn2_loading_spinner"></span><span class="__wn2_loading_text">Loading...</span></span></div><div class="pager_next action_button" id="__w2_SoET9yM_more">More</div></div></div></div></div><div class="e_col w2_5 side_col"><div class="row"><div class="e_col w1 p1"><div id="ld_RGxTHo_441"><div class="profile_photo"><div id="ld_RGxTHo_444"><a href="/Brandon-Smietana"><img class="profile_photo_img" src="http://d2o7bfz2il9cb7.cloudfront.net/main-thumb-6673-100-iQY07uHy4EIxliIOKB2oVtdnn7FsdmZc.jpeg" width="100" alt="Brandon Smietana" height="100" /></a></div></div></div></div><div class="e_col w1_5 side_col p1"><div class="light page_opts row"><div id="ld_RGxTHo_442"><ul class="action_list"></ul></div></div></div><div id="ld_RGxTHo_443"><div class="row p1"><div class="col mini_count first"><a href="/Brandon-Smietana/followers"><strong>370</strong><br />Followers</a></div><div class="col mini_count "><a href="/Brandon-Smietana/following"><strong>226</strong><br />Following</a></div><div class="col mini_count "><a href="/Brandon-Smietana/mentions"><strong>17</strong><br />@Mentions</a></div></div></div></div><div id="ld_RGxTHo_439"><div class="row section p1" id="answers"><strong>Recent Top Answers</strong><div id="ld_RGxTHo_446"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">17</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/How-focused-should-a-start-up-be-on-being-acquired/answer/Brandon-Smietana">How focused should a start-up be on being acquired?</a></h2></div><div class="inline" id="__w2_XZvLMbC_truncated"><div id="ld_RGxTHo_451"><div class="truncated_thumbnail_holder"><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-1d4fe0f3434be165c4975bfb1d4d35ef" /></div>You need an exit plan from day one.  Read this book; <a class="more_link" href="#" id="__w2_W3pauv6_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_XZvLMbC_expanded"><div id="ld_RGxTHo_452">You need an exit plan from day one.  Read this book;<br /><br />Early Exits: Exit Strategies for Entrepreneurs and Angel Investors (But Maybe Not Venture Capitalists) <a href="http://amzn.to/bLyS75" rel="nofollow" target="_blank" class="external_link">http://amzn.<wbr />to/bLyS75</a><br /><br />When you start your first eight companies, you will do it wrong.  There will be dozen of things you wish you knew that you were unaware of.  Planning for exits is one of them.<br /><br />Your objectives for your company and its exit are going to affect many of the decisions you are making and you should make these choices earlier rather than later.  Why do I say that?<br /><br />Here is a graph of time of VC financing to exit<br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-1d4fe0f3434be165c4975bfb1d4d35ef" /> <br />If you take VC, your company is a 12 year commitment before an exit.  You should sit down with your founding team and make sure that everyone is aligned.  Are you building a company that you will be working at in 20 years or are you trying to build a company and flip it for a couple million in 4 years?<br /><br />You will find that different members of your company have different time horizons and objectives.<br /><br />You may also find that by taking the VC route, you increase your exit time and risk, but do not increase your rate of return.  A small 30 million dollar exit in 4 years is often better than a 12 year exit at 120 million with 3 rounds of VC and dilution.<br /><br />You also have to ask &quot;Can I exit at 1-2x after taking VC&quot; and that should influence your choice to take VC.  If you take VC, the VC has 3 separate ways of blocking an M&amp;A event.  You might like the exit at that valuation and may want to do the M&amp;A and move on, but you cannot; your investors will not approve the deal below 3x return.<br /><br />You may also find yourself with an M&amp;A offer and it seems like the last chance before you run out of money and its a good deal for you, but the VC vetos it and then puts a down-round in the company and wipes out your equity.<br /><br />So you have to ask &quot;What happens to my shares if there is a recession or unforeseen event and the company takes a down-round?  What is the probability of that happening in my market?&quot;  If your market is software and 100% margin, you can probably cut back to profitability.  However if you are a manufacturing company with inventory and debt to finance machinery/invento<wbr />ry purchases and your margins are 8%, then a recession could impact your sales enough to put you in a cash crunch.<br /><br />The reality is that your choices about the financing of your company affect your strategic options.  Selling for 10-30 million is easy, there are hundreds of buyers.  Selling for 120 million is more difficult, there will be fewer potential acquires and the company will need to get board approval for the process.  Between 30 million and 300 million valuation is a no-man&#039;s land.  You are too large for an easy M&amp;A but too small to go public.<br /><br />It is even worse to be a technology company with a 300 million valuation (lots of users) and no revenues (Slide, Digg, Ning, link shorteners, etc...).  You cannot IPO because you have no revenues, but your valuation is too high for anyone except Microsoft, Yahoo or Google to buy you.  You only option is taking on more and more VC and hoping that someone big decides to buy you someday.  For these companies, a 30 million dollar &quot;Flickr&quot; type exit early on may be better for the founders and empoyees than growing extremely large without any path to revenue (Foursquare).<br /><br />You want to make the decision whether you will &quot;Go for the Gold&quot; and build the company to IPO or to flip the company early.  You need to make this decision when you start the company, because you will find that different members of the management team will have completely different ideas about the timespan and objectives of company.<br /><br />&quot;<b>the decision to accept VC investment increases the time to exit by approximately 12 years, not the median time of 7 years.&quot;</b><br /><b><br />&quot;</b>When VC investment was added, the <b>time to exit increased to somewhere around sixteen years after the entrepreneurs started and twelve years after the angels invested.&quot;</b><br /><b><br /></b>You need to look at the data and determine what the objectives for your company are and need to make decisions in light of those objectives.  This requires having an early idea of your exit strategy.<br /><br />There are several things you can do to structure your company so that it is more desirable as a target for M&amp;A and those are things you need to do from day one.  They are covered pretty well in that book.<br /><br />One thing to keep in mind is that if you are small company, companies that are interested in acquiring you are not going to magically find you (there are actual companies outside of Silicon Valley that may be interested in your IP, but do not know you exist).  You will have to do some work to get acquired and to find the companies with complementary products.  Getting acquired is not necessary a passive process and there are actions you can take to increase the desirability of your company as an M&amp;A target and to advertise your company to a wider range of potential buyers.<br /><br />Soliciting M&amp;A offers is also necessary to setting up a competitive M&amp;A process. You will also learn that (like fund raising) M&amp;A deals are a full time job.  If you let the CEO manage the M&amp;A process, the company may suffer.  You should have someone who is able to handle the M&amp;A process full-time without affecting the performance of the company during the process.</div></div></div></div></div><div id="ld_RGxTHo_447"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">11</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Why-are-many-people-who-are-very-smart-not-also-rich/answer/Brandon-Smietana">Why are many people who are very smart not also rich?</a></h2></div><div class="inline" id="__w2_TcRh5fW_truncated"><div id="ld_RGxTHo_453"><div class="truncated_thumbnail_holder"></div>&quot;Why are many people who are very smart not also rich?&quot; <a class="more_link" href="#" id="__w2_dz5ipVn_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_TcRh5fW_expanded"><div id="ld_RGxTHo_454">&quot;Why are many people who are very smart not also rich?&quot;<br /><br />The simplest reason is that they are bad at creating wealth.  Even if they create value, they may not be able to capture any of it.<br /><b><br /></b>I have met many intelligent people who have a slave mentality.  They do what they are told.  They want out of life what people tell them they should want.  They believe that money cannot make them happy but also believe women or family can make them happy, or other absurdities you find in popular culture.  They believe socially transmitted notions that are not validated by data and they try to live their lives by them.<br /><br />Most people are also risk adverse.  They would prefer a 80k a year job shuffling paper clips to the chance of success.  I know at least a dozen people who have said &quot;I am going to get a job and then start a company eventually&quot;.  When you ask them &quot;When are you going to start a company?&quot;, they have no definite plans.<br /><br />When you ask them &quot;Why don&#039;t you start a company today?&quot;, they give you the exact reasons why they will not be starting a company in the future.<br /><br />When people do start companies, they usually fail because they give up and decide that it would be easier to go back to their cubical.  This is the number one cause of startup failure.<br /><br />It is much easier for people to do what they are told instead of setting goals for themselves.  Most people have not been in a P&amp;L position where they have to make decisions.  School prepares people for employee positions where the goals are set for you and you just have to do what you are told.<br /><br />Most people are simply unwilling to make sacrifices to become financially succes<wbr />sful or aggressively play politics to  achieve and maintain power within organizations.  The vast majority of people have no plans or meaningful goals in life and those that do are doing nothing to execute on them.<br /><br />You do not generate wealth by accident and people who do not commit to actions that are effective at wealth generation, do not succeed at wealth generation (with the exception of some very lucky early Google and Facebook employees).<br /><br />If you have a slave mentality, you do have little use for assets.  You will come home and watch television, sleep and then go back to work.  Another 40 million is not going to change the television shows you watch.<br /><br />In many ways, a desire for wealth is a desire for freedom.  The reason intelligent people are not wealthy is because they have other desires such as &quot;ePeen&quot;, social status, women or the &quot;desire to belong&quot; and be affirmed by a group.  Each person has a different set of driving motivations and some of these motivations conflict with wealth creation goals.</div></div></div></div></div><div id="ld_RGxTHo_448"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">4</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Why-is-Silicon-Valley-so-equity-focused-Are-there-a-lot-of-cashflow-businesses-we-just-dont-know-about/answer/Brandon-Smietana">Why is Silicon Valley so equity focused? Are there a lot of cashflow businesses we just don&#039;t know about?</a></h2></div><div class="inline" id="__w2_cEIHQiA_truncated"><div id="ld_RGxTHo_455"><div class="truncated_thumbnail_holder"></div>There are a ton of cash cows.  However the news channels and rumor mills in Silicon Valley are focused on &quot;valuations&quot; and VC financing events. <a class="more_link" href="#" id="__w2_fDCU1PT_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_cEIHQiA_expanded"><div id="ld_RGxTHo_456">There are a ton of cash cows.  However the news channels and rumor mills in Silicon Valley are focused on &quot;valuations&quot; and VC financing events.<br /><br />If you have a profitable bootstrapped business and twenty times the market-share of your VC backed competitor, the VC backed competitor gets all the press coverage in TechCrunch.  They also get all the gossip about boardroom backstabbing and valuations.<br /><br />It is not difficult to make money on the internet, but being a profitable business or a cash cow is not news worthy.  The cashflow businesses tend to be closely held if they would otherwise sell for an earnings multiple less than 20, because the owner would have to find other assets to invest the proceeds of the sale in (such as equities or corporate bonds).  Ad networks and affiliate marketing companies tend to fall into this space.<br /><br />The cashflow businesses are distributed all over the US instead of just being concentrated in one place (like the private equity financed companies).  Cashflow businesses tend to take less VC or no VC.  Online poker or gaming startups and others fall into this category.<br /><br />The reality is that the vast majority of companies receive no private equity investment and companies are generally profitable or bankrupt within 2-3 years.  Only half of companies that IPO have taken early stage private equity investment (as compared to growth equity).<br /><br />You just do not hear about profitable companies, because they have much less drama than &quot;Dude, wheres my revenue model&quot; VC backed companies like Digg, Reddit and Twitter.<br /><br />VCs complain about ad-supported or subscription based companies not being profitable enough, but there is a selection bias, with VCs only ending up with the companies which could not become profitable on 100k daily user and $3/eCPM.  If you are a 3 person company, can build a website and get 500k a year in revenue; you probably do not need private equity investment and you wont be in TechCrunch.<br /><br />News and information flow in Silicon Valley has no relationship with revenue.  That is probably the greatest reason we do not hear about these companies.<br /><br />However, if you are profitable and you go blabbing about, like the creator of Mafia Wars did; people start thinking &quot;This is a good market&quot; and Zynga or someone else comes along and copies your product and buries you.  So if you are making 10k a day in revenues but started your company for the &#039;ePeen&#039; instead of the money, you will go around blabbing about your revenues and end up with 30 &quot;me-too&quot; competitors.  There are selection effects at work.</div></div></div></div></div><div id="ld_RGxTHo_449"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">3</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Are-Peter-Thiel-and-Vinod-Khosla-right-that-its-the-end-of-Web-2-0-and-the-beginning-of-the-golden-age-of-greentech-and-biotech/answer/Brandon-Smietana">Are Peter Thiel and Vinod Khosla right that it&#039;s the end of &quot;Web 2.0&quot; and the beginning of the golden age of greentech and biotech?</a></h2></div><div class="inline" id="__w2_mEZTXBh_truncated"><div id="ld_RGxTHo_457"><div class="truncated_thumbnail_holder"></div>Mobile <a class="more_link" href="#" id="__w2_ZQaS6a7_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_mEZTXBh_expanded"><div id="ld_RGxTHo_458">Mobile<br />Social <br />Social Games<br />Semantic Web<br />Databases<br />Enterprise<br />&quot;Clean Tech&quot;<br />UAVs<br />Call center automation / Agent systems<br />NLP<br /><br />Its not either/or.  The reality is that everything is exploding and there are several areas that are experiencing massive growth or will be very important in the future.<br /><br />If you were a VC, you are going to see better returns in at least moderately capital intensive industries than in Web 2.0.  The capital costs for these companies are too low and most of the money is being made from 10-30 million M&amp;A events.  We are seeing hundreds of social networks, but they only have 2-10 millions of users each.<br /><br />There will be fewer Amazons and Facebooks and more market segmentation and lower barriers to entry.<br /><br />When you look at the trend-lines, there are a large number of areas which are becoming increasingly important, but as an investor these areas vary significantly in their returns.  We mights see 400 solar startups and 2-3 of them will survive after industry consolidation an<wbr />d price competition.  They might have massive sales, but low margins because of price competition.  There is a similar situation with algae biofuels.<br /><br />It will be difficult to achieve high margins in competition with state subsidized companie<wbr />s in China and a global market.  Especially in solar and biofuel production.<br /><br />This is good for the economy, but bad for the investor.  On the other hand, healthcare technologies have software like margins and high capital costs and could produce substantial retur<wbr />ns; but face regulatory challenges.<br /><br />Many of these technologies are just displacing existing technologies; cheaper solar power cannibalizing coal and natural gas power plants; algae biofuels substituting for corn ethanol and oil.  They are merely substitutes for existing commodities.<br /><br />Other areas are completely new markets, such as social gaming.  Roughly I would ask &quot;Is this technology substituting or creating a new market or is a complement of something existing?&quot;.  For instance, algae biofuel substitutes for gasoline (a commodity) where as call center automation technology substitutes hu<wbr />man labor for capital costs.<br /><br />Overall, its a golden age for everything.  Its not just clean-tech or Web 2.0; one does not start where the other ends.  The question about where to put your money to achieve a high rate of return, is more difficult question.  In general, lumping companies by market is not a good way to look at return data.  When someone says &quot;enterprise software is hot&quot;, what they mean is that there are 400 VC backed enterprise software companies and 10 of them are going to produce a great return and 300 of them will go no where.<br /><br />The individual company and where it fits in its market&#039;s value chain is probably more important.<br /><br />It is however interesting that VCs in SV are looking at biotech and clean tech companies.  It would be interesting if SV branched out beyond software and started developing expertise in the physical sciences again (such as occurred when IC production was a hot area).</div></div></div></div></div><div id="ld_RGxTHo_450"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">2</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/What-are-the-implications-of-a-global-banking-system-that-is-completely-anonymous/answer/Brandon-Smietana">What are the implications of a global banking system that is completely anonymous?</a></h2></div><div class="inline" id="__w2_jSTdBZW_truncated"><div id="ld_RGxTHo_459"><div class="truncated_thumbnail_holder"></div>Nothing. <a class="more_link" href="#" id="__w2_DZTFS0h_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_jSTdBZW_expanded"><div id="ld_RGxTHo_460">Nothing.<br /><br />There is already 800 in billion laundered money in banks.  Completely anonymous money is unlikely to change criminal transactions very much.<br /><br />Terrorists and others are using money transfer network such as the hawala or funneling money through non-profits.  The only thing that would change is the government&#039;s ability to monitor the transactions.  Anonymous payment methods may not even affect the government&#039;s ability to effectively monitor these transactions as the government is primarily using network analysis techniques anyways.  The identity of the people do not matter so much as their network of relationships.<br /><br />Government control and can tax the point of sale.  A Walmart could reduce its taxes to the government by not reporting sales and taking money out of the cashdrawer and righting off the sold inventory, but that does not work at scale.  Only small cash businesses such as pizzerias and laundromats are able to do this without suffering fines and retribution by federal government.<br /><br />Bribery would be as easy with anonymous digital currency as it is with cash.  However we would only see kickbacks transition from being informal to formal relationships.  The government&#039;s ability to regulate &#039;political economy&#039; would be decreased.  You could argue whether this is good or bad for the economy.  You could argue that our current system privileges those with political connection<wbr />s and backrub relationships and excludes the masses from participating in the political economy.  Legalized or deniable bribery may increase scrutiny on public offices and subject them to greater monitoring and oversight, which may be a net improvement over the current system of implicit bribes and no transparency or oversight.<br /><br />We are actually better at enforcing payroll tax compliance at large cash businesses like Walmart (where many consumer do not have credit cards and bank accounts) than we are about using oversight to detect and regulate unlawful &#039;political economy&#039; transactions such as bribery.<br /><br />The government also has systems in place for collecting payroll taxes.  These systems are effective, despite the incentive of the employer and employee to lower reported wages (circumventing payroll taxes) and pay the employee directly (&#039;under the table&#039;), circumventing government imposed transaction fees (taxes).  This type of circumvention only happens in small cash businesses, but not at places such as Walmart.<br /><br />As the government controls the point of sale and is able to collect payroll taxes and sales taxes, its likely the the government&#039;s revenue would not be impacted by anonymous currency to a greater extent than it is by the usage of cash.  In fact, the anonymous digital cash transactions may be easier to monitor for the government.  It can mandate businesses use reporting devices and that businesses receive revenue and pay employees from government controlled or approved accounts.  The switch to digital currency and elimination of cash would improve government revenue for these activities, compared to transactions where cash is used.<br /><br />Where the government would lose tax revenue to evasion, is in the provision of online services, digital goods and investment instruments.  Online service providers (PHP programmers from India/China, iPhone application developers, web-designers) can receive revenue anonymously and c<wbr />ircumvent IRS reporting requirements, with the person controlling the account in a position to deny control of the account and avoid recognition of the revenue.  This is however no different than having an online businesses today owned by a bearer bond IBC which has puppet directors in another foreign country and which provides full deniability for the controller of the back accounts of the corporation.  Anonymous banking would only make these transactions easier, although it is harder to imagine that it could possibly be easier to do than it already is, when you consider the existing system.<br /><br />If you are very rich, there are better ways of creating intergenerational wealth and avoiding taxation, which are extremely effective.  For instance, most equity in Israel and many European countries is controlled by a small number of families.  They do not own the companies directly, but have controlling interests in companies which control these companies.   Less than 20 family control about over 30% of the equity in Israel&#039;s public traded companies, through controlling interests.<br /><br />What use is 30 billion dollars if you cannot spend it?  It is much better to have a dual class share structure, where one class of shares has 20 votes to the common share.  A class of shareholders controlling 5% of market-cap controls the company.  Also, no capital gains are paid until shares are sold off.  When they are sold, the seller pays 15% capital gains tax (compared to +45% capital gains tax from wage income).<br /><br />It therefore seems unlikely to me that the very wealthy would find much advantage in an anonymous currency system for the purpose of avoiding taxation (as they are already able to do that very effectively).  For instance, why would you want to realize $1 in revenue untaxed?  You would want that revenue going to your publicly traded company trading at a 20x P/E multiple.  The 1 dollar in revenue creates $20 in market cap, if you owned 10% of the company, then $1 in revenue to the company is $2 to your share-value at a 20x P/E multiple.  If you own 50%, that $1 is $10 in market cap.<br /><br />You take that $10 in market-cap increase and take a loan against your shares and invest them in 8% corporate bonds...  The advantages to the financial and corporate elite of the existing system, far out weigh the advantages of anonymity (as long as the government and system are stable).<br /><br />Smaller business owners who do not have access to the public market would however find a tax advantage resulting from the unique capacities of digital currency systems.<br /><br />Effectively anonymous monetary systems are developing in Africa (cell phone mediated payment networks).  I think there are reasons that such systems would develop and that we are about 20 years away from some cryptography based monetary systems (there is a strong financial incentiv<wbr />e for smaller countries to provide these services).<br /><br />They really will not change anything however.  Drugs will still come in from Mexico into America.  However, instead of drugs coming from Mexico to America and cash going from America back to Mexico, drugs will go from Mexico to America and cell phone text messages will go from America to Mexico.<br /><br />However, with these monetary systems, even if anonymous; a balance of payments will need to be maintained between entities.  If goods and services are provided in America (drugs) and payment is made to Mexico, the Mexicans will need to be able to purchase goods and services with their payment (presumably to be delivered or consumed in Mexico).  Currently, A provides goods to B and B provides cash to A.  The only difference under unregulated digital currency is that A provides goods/services to B and and B transfers currency to C to be held for A and A transfer currency to D in payment to E for services consumed by A.  Its basically exactly the same as the current cash transactions.<br /><br />In fact, there are few limitations that drug cartels face when using the existing banking system.  Mexican drug cartels have front companies with revenue from drug sales and have been known to purchase capital assets, (such as boats) which are used in the drug business.  For instance, the same boat will end up on a California shore (empty/abandoned, but was full of marijuana or crack-cocaine) and then end up on auctioned by the state, purchased by the same companies and end up back on the shore again.  This can happen 5-8 times for a single boat; it will be seized, determined to have been used for drug transport and then repurchased and seized again several times.<br /><br />The governments have this information and record these transactions, but they do not use the information effectively.  Not much would fundamentally change if governments and law enforcement did not have access to information.  In fact, stronger enforcement or usage of the information which is available would only have the effect of greater concealment by criminal organizations (which has exactly the same effect as adoption of anonymous systems for settling balance of payments from a law enforcement perspective!).  The fundamental issue is border control and the inability of nation states to police their borders against the import of drugs, weapons, immigrants and sex slaves.  If a nation state cannot prevent kidnapping or crime within its borders, it is easy to say &quot;digital currency will make this problem worse&quot;, but the problem is with the nation state losing its monopoly on the use of force within its borders, or the nation state losing the ability to enforce its regulations upon its population or to secure its borders against the import of drugs or weapons.<br /><br />Also, it is likely that the advantages of anonymous digital currency would not be sufficient enough for criminal organizations to abandon the convenience of the existing financial, corporate and legal structures.  For instance, criminals will say &quot;I can get a bank against the income of my front company to finance the purchase of capital assets; but how do I get a bank loan against my anonymous digital currency income?&quot;<br /><br />Without a fully developed modern financial systems around the anonymous digital, it is of limited utility for anything but evading taxes.  It would be almost useless for the purpose of capital flight, unless it was possible to buy bonds or securities while skirting reporting requirements.  You would need a broker dealer willing to do this (hence the system is only feasible if state sponsored by at least one sovereign nation).<br /><br />It is not clear to me that you can security assets or enforce property rights without enforcement by a sovereign nation state.  So maybe you could buy equity in an online digital goods business which receives all payments through anonymous digital currency.  However, how would you audit the books of that business?  Who would enforce the voting rights that your equity ownership entails?<br /><br />You need a system of digital contracts and some advances in secure multi-party computing and<wbr /> cryptographic protocols before you can start developing a shadow finance system on top of the digital currency, which would be independent of right enforced by nation states.  That is still a long ways off.<br /><br />The ownership and transaction structures which would emerge would have to reflect what is enforceable through pr<wbr />otocols and would likely end up being much different than the investment instruments we have in our current system.  Therefore we will likely be seeing a hybrid system, for at-least the next 80 years.<br /><br />For an example of a &#039;hybrid system&#039; that governments are trying to regulate out of existence, look up &quot;hawala&quot;.  The hawala networks rely more on trust and social relationships than cryptography.</div></div></div></div></div></div></div></div></div></div><div class="footer wrapper"><div class="contents"><div class="footer_nav row"><div class="e_col footer_links w8"><div id="ld_RGxTHo_440"><ul class="nav_list"><li class="about"><a href="/about">About</a></li><li class="jobs"><a href="/jobs">Jobs</a></li><li 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+ return false;">...show <span><span id="ld_6yUZYa_4511">24</span></span> hidden comments...</a></div><div class="hidden_comments_127217 hidden"><div id="ld_6yUZYa_4512"><div id="ld_6yUZYa_4513"><a name="comment99292"></a><div class="comment p0_5" id="__w2_P5Wy6Py_comment"><p class="comment_text">Brandon you do not need to be a billionaire, or millionaire to have access to the financial markets and to benifit from there advantages. Prior to the current recession there was somewhere areound 4 Trillion Dollars in those champions of the small investor the mutual funds. There are no miniumum trade amounts to purchase most securities, groups can also be formed to pool assets to take advantage of those securities that do have minimum value trade requirements. Yes of course 1% of the population controls about 35% og the nation wealth that does not mean they are the only player in the financial markets.<br /><br />Your concept that money laundering is a border control issue is absurd on it&#039;s face. As much money is laundered for criminal enterprises in the US as is handled for say Columbia. Your banking system would make that impossible to track thereby increasing the profitability of criminal operations at an exponential rate.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_g2C3dLT_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4514"><a name="comment99414"></a><div class="comment p0_5" id="__w2_O8UTEXk_comment"><p class="comment_text">&quot;the $800 billion of laundered money in the banking system that you mention is a very small amount compared to the amount of anonymous money there would be if the global banking system is &#039;completely&#039; anonymous.&quot;<br /><br />Really?<br /><br />&quot;WSJ is reporting that bonuses on Wall Street this year are expected to be around $144 billion. How big is that relative to the overall economy? <br /><br />&quot;ZeroHedge cranked out the numbers and it is 8% of the total money supply (as measured by M1). Got that? Investment bankers will control 8% of the entire money supply once bonuses are paid.&quot;&quot;<br /><br />$144 billion is 8% of the money supply in circulation and law enforcement estimated laundered money to be around $800 billion.  Figure that out.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_JfKOnwo_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4515"><a name="comment99420"></a><div class="comment p0_5" id="__w2_vgPcnRI_comment"><p class="comment_text">&quot;Your concept that money laundering is a border control issue is absurd on it&#039;s face. &quot;<br /><br />The money launders is not the problem.  The problem is the traffic in guns, drugs and sex slaves.<br /><br />In order of effectiveness<br />&gt;Demand Reduction<br />&gt;Supply Reduction<br />&gt;Monetary measures<br /><br />Obviously, importing drugs into the United States from Mexico would not be so profitable for organized crime, if the United States did not have such an extremely large demand for illegal drugs.<br /><br />Drugs, arms trade, illegal immigration and human trafficking are border control issues.  If you cannot control your borders, who cares whether the gangs are trading in dollars or gold bullion or cell phone text messaging balance of payments?  Does it really matter?<br /><br />The gangs cannot buy aircraft and boats in cash.  They are using the mainstream financial syst<wbr />em extensively, for laundering funds and for buying capital equipment.<br /><br />Anonymous digital currency has the same laundering problems as cash and is in many ways less anonymous than cash because it is cell phone mediated.<br /><br />Anonymous digital currency does not change the economics of crime at all.  It barely impacts the margins on crime at all and it has several disadvantages over cash.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_ytLc0Lo_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4516"><a name="comment99426"></a><div class="comment p0_5" id="__w2_AODuv4a_comment"><p class="comment_text">It is too early to fear-monger the evils of digital currency, when we do not even have a single data-point.  We have had lots of fear mongering about declining tax revenue, but no data.<br /><br />Europe has been more open and supportive of digital currency adoption and has not experienced an increase in drug trade, arms trade, kidnapping or human trafficking.  Nor have they seen an increase in tax evasion.<br /><br />The Swedish police are arguing for the elimination of paper money in favor of digital money, TO REDUCE CRIME, such as muggings and theft.<br /><br />All the arguments that digital currency will increase criminal activity are theoretical and are not supported by the data that we have.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_yoRMKqD_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4517"><a name="comment99433"></a><div class="comment p0_5" id="__w2_FHD1ILN_comment"><p class="comment_text">I agree that in the context of that money flow you describe $800 billion is quite large (about 44% of the entire flow). However I don´t think the figures you are quoting are global. For instance, the entire money flow you mention is only 1.8 trillion. However that is less than the average daily turnover of the FX market. The 2-4 trillion passing through the FX market is just the money that is in the process of being exchanged from one currency to another, which is just a small part of the total money in circulation.</p><p class="action_bar"><a class="user" href="/John-Ringland">John Ringland</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_wRTVNqf_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4518"><a name="comment99435"></a><div class="comment p0_5" id="__w2_fq6VyZf_comment"><p class="comment_text">There is M1, M2. M3.  A lot of money is created by fractional reserve banking upon the base money supply.  Depending on their leverage ratios, banks can create ~8 dollars for every dollar in base money.<br /><br />There is also some central bank shenanigans going on.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_xnptSSU_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4519"><a name="comment99552"></a><div class="comment p0_5" id="__w2_zg1OGO2_comment"><p class="comment_text">It&#039;s not digital currency per sa that I am arguing against. It is the idea of a completely anonymous banking system which can be implemented with paper or digital currency. The ability to open a bank account be simply arriving at a bank with currency and agreeing on an acess code with no exchange of proof of identity is the problem not the type of currency used.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_HPKFrKe_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4520"><a name="comment99767"></a><div class="comment p0_5" id="__w2_EEtX3NL_comment"><p class="comment_text">You can already do that and criminals do already do that.  They just use cash businesses and stored value cards.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_VMVwaYG_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4521"><a name="comment99817"></a><div class="comment p0_5" id="__w2_rN29gZk_comment"><p class="comment_text">Can you give more detail?</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_U6ZuSRS_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4522"><a name="comment99884"></a><div class="comment p0_5" id="__w2_libhZqk_comment"><p class="comment_text">They buy stored valued cards (like <a href="http://Amazon.com" rel="nofollow" target="_blank" class="external_link">Amazon.com</a> cards) in cash and then move them over the boarder.  You can retail them on websites for 98 cents on the dollars, on gift card exchange sites.<br /><br />They are anonymous (paid in cash) and transferable.  There are people that makes the rounds everyday to a set of stores and buy gift cards with cash from drug proceeds.  The cards are moved over the boarder.<br /><br />It is very difficult for customs to figure out how much value is on the cards and there is a fluid market for them.<br /><br />So you sell a $100 amazon gift card for $98 and email a person the number of the card.  They put it in their account and it credits their amazon account and they can buy things.  The sale proceeds can be through paypal or through a gift card exchange with a reputation management system, to reduce fraud.<br /><br />The transaction fees on laundering money though these systems are only a few percentage points, compared to 20-30% fees for laundering cash.<br /><br />Also valued can be transferred between the cards electronically.   This is especially true for prepaid visa type cards.  There have been some regulations in place to reduce the anonymity of these cards or eliminate the ability to electronically transfer value between the cards; but they have been very ineffective.<br /><br />You could for instance, wash money by selling drugs in LA that were imported from Mexico, buying gift cards with the cash, selling the gift card numbers on an exchange for 3% transaction fee and then spending the money to buy digital goods from a front company (Farmville type games, software, online poker, porn, etc...) .  Similar things are possible with prepaid stored value cards.<br /><br />It is extremely difficult, if not impossible to regulate.  Once the drugs are over the border and are exchanged for money, getting the money into the financial system is trivial.<br /><br />Also note that gift cards are not taxed at the point of sale.<br /><br />Cell phones are going to replace the stored valued cards soon, also.  First in Africa (although EU digital currencies are also likely).  EU has a strong regulatory framework for digital currencies.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_UqYolUl_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4523"><a name="comment99890"></a><div class="comment p0_5" id="__w2_xl2THCR_comment"><p class="comment_text">There must be records of the payment transactions when the gift cards are purchased the second time wouldn&#039;t the credit card and debit card systems be able to data mined to find that volume of transactions?</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_rEeelg1_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4524"><a name="comment100024"></a><div class="comment p0_5" id="__w2_KamGGMr_comment"><p class="comment_text">&quot;There must be records of the payment transactions when the gift cards are purchased&quot;<br /><br />The cards are purchased with cash, from the drug sales.  Then the card numbers are transmitted by cell phone or computer, to another party for sale.<br /><br />The stored value credit cards are less anonymous than gift cards bought in cash.<br /><br />Notice that there is no link between the person buying the gift card in cash and the person receiving the funds from the sale of the gift card.  You would have to monitor all transactions (without a warrant) to even detect the bank accounts into which massive amounts of money from sale of gift cards is going.<br /><br />These accounts may be located in foreign countries and even if these country cooperate with US authorities you need some suspicion to begin investigation; which is very difficult, because there is no direct link or chain of evidence going from the drug sale to receipt of proceeds from the sale of the gift cards.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_aQzSnxe_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4525"><a name="comment100029"></a><div class="comment p0_5" id="__w2_klLTRVK_comment"><p class="comment_text">The company doing the transactions (creating the market for the gift cards) is a just a merchant account.  People post cards, pay for cards (perhaps by selling other cards on the site or exchanging them).  Notice that payments can be settled between the card seller and card buyer through paypal or other means.  (this happens on ebay).<br /><br />The market does not keep records of the card numbers or identifiers for them.  If you have a market, you have an effectively anonymous pay<wbr />ment methods.<br /><br />Even if you can identify large sellers of gift cards, how do you tie that back to criminal activity?  You could show that a large number of gift cards bought in various areas of the US and stores end up on the site and are sold by particular parties.  However that only is true if the market is required to record the card-numbers on the stored valued cards.<br /><br />A person may buy a stored value card with drug money (or pay for the drugs in stored valued cards) and the cards are then smuggled into mexico, where they are sold online, by whoever.  They act as a commodity in the same way that gold or &quot;paper money&quot; is used.<br /><br />Their only difference from gold, is that they can be transmitted over cell phone text messaging (they are just numbers), but are also physically embodied in a card (the physical card being more liquid than the card account numbers (except for services like Amazon, where they are one and the same)).<br /><br />Similarly, a gang can settle balance of payment in cards for months of gameplay in games like WoW, send the numbers to mexico or else where (via SMS or email) and then sell the numbers on a website.<br /><br />The website can change its merchant account at will and change the bank accounts funds are deposited into....<br /><br />These systems operate similar to hawala but they are commodity backed.  I  think its essentially impossible to police.  Border control would be more effective.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_zDpN5pU_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4526"><a name="comment100293"></a><div class="comment p0_5" id="__w2_Io34hxf_comment"><p class="comment_text">Oh now that last ones a real stretch the a month of the drug economy is way larger then the a years worth of WoW it&#039;s larger then the entire online gaming industry combined. <br /><br />The point I&#039;m making about the data mining is this; the G20 has treaties that allow a great deal of access to bank records without the need of search warrants, in the end the proceeds from the payment cards or gift cards has to consolidated into one account or a small number of accounts those accounts can be identified with out search warrants, that intelligence gives a capable uncorrupted justice system the ability to start building a case against the players involved. <br /><br />To control a border you have to militarize it that is not going to happen on the 6,000 miles of Us, Mexican, and Canadian borders and that leaves out the Pacific and Atlantic seaboards witch would also have to be militarized to truly control the borders.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_TxeRhdR_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4527"><a name="comment100393"></a><div class="comment p0_5" id="__w2_VL94YkW_comment"><p class="comment_text">If you cannot prevent the drugs from entering the country or control supply, you can keep throwing people in prison.<br /><br />US has 25% of world prison population and 5% of world population.  Highest per capital incarceration rat<wbr />e of any society.<br /><br />Prison labor is very profitable and is making the US competitive with 3rd world countries for manufacturing costs.  Thats what we want, right?<br /><br />Until some company figure out how to make money on border control and starts lobbying congress, we will see more prisons and little done to reduce demand or reduce supply.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_sNoxs0z_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4528"><a name="comment100405"></a><div class="comment p0_5" id="__w2_mvmfLJf_comment"><p class="comment_text">Or we get enough of the public to figure out that the war on drugs was lost a decade ago just like the war on booze was lost and we decriminalize drugs. It is a proven fact that the war on drugs is 25 times more expensive then is treatment for the addicted so we could see a 25 fold increase in drug addiction and spend no more then we do know if drugs are decriminalized and that does not even take int account the income that could be made if the drugs were sold by the gov and the proceeds used to pay for treatment.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_m5136Ep_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4529"><a name="comment100488"></a><div class="comment p0_5" id="__w2_mXtNzBm_comment"><p class="comment_text">We need to increase the prison population somehow.  Private prisons are very profitable.<br /><br />Heres a link from my Twitter feed;<br /><br />The prison industry in the United States: big business or a new form of slavery? <a href="http://bit.ly/qgWfy" rel="nofollow" target="_blank" class="external_link">http://bit.ly/qg<wbr />Wfy</a> this is an amazing article!</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_T1ncdJb_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4530"><a name="comment100531"></a><div class="comment p0_5" id="__w2_whJYea3_comment"><p class="comment_text">This from your link &quot;According to the Left Business Observer, the federal prison industry produces 100% of all military helmets, ammunition belts, bullet-proof vests, ID tags, shirts, pants, tents, bags, and canteens. Along with war supplies, prison workers supply 98% of the entire market for equipment assembly services; 93% of paints and paintbrushes; 92% of stove assembly; 46% of body armor; 36% of home appliances; 30% of headphones/microphones/sp<wbr />eakers; and 21% of office furniture. Airplane parts, medical supplies, and much more: prisoners are even raising seeing-eye dogs for blind people.&quot;<br /><br />Is false in everything it says as far as a few minutes of research on Google and personal memory of Science Channel and Military Channel programs vie personally seen that showed the Armies Helmets being made at a non prison labor company, and the same for bullet proof vests. If that much is wrong I doubt the fact checking on the rest of the piece. <br /><br />I know for a fact that not all states allow prison industries. Washington State were I live has debated the rules around prison labor for many years. As of the lad time I remember reading about in the press prison labor is restricted to making license plates and work related to training programs and the private companies involved have to pay the same pay rate the pay at there non-prison locations the state then takes that money and applies it to the room and board costs of the prisoner. This was done because the public did not want low wage prison workers taking jobs from the local economies. So while I agree that the numbers the article has on the size of our prison population is correct I think the article highly exaggerates the amount of exploitation by private enterprise. I&#039;m not saying it does not happen just that it&#039;s not as huge a problem as the article implies.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_NtIfxPT_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4531"><a name="comment100536"></a><div class="comment p0_5" id="__w2_RXxD8Yu_comment"><p class="comment_text">The article is correct that most seeing eye dogs and other dogs like drug sniffing and bomb dogs are trained by inmates.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_qC4kKM2_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4532"><a name="comment100663"></a><div class="comment p0_5" id="__w2_FqvCafc_comment"><p class="comment_text">I would have to see some industry reports.  They are citing an LBO article, which is not available online.<br /><br />I do not watch TV, but if they were using prison labor, it is not something that would be on television.  Its a very sensitive subject.<br /><br />Wikipedia says that prison labor was abolished in America in 1927.  <br /><br /><a href="http://en.wikipedia.org/wiki/Penal_labour#United_States" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Pen...</a></p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_JTZZBg5_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4533"><a name="comment100666"></a><div class="comment p0_5" id="__w2_u0AD3J6_comment"><p class="comment_text">&quot;<i>The combat helmets made by Hebron-based ArmorSource and recalled by the Army earlier this month were made by a Texas subcontractor that uses federal inmates to do its work.<br /><br />The Army and ArmorSource confirmed to The Advocate that UNICOR, also called Federal Prison Industries, manufactured all of the 102,000 helmets for the ArmorSource contract with the Army.&quot;</i></p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_yGEFbeP_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4534"><a name="comment100668"></a><div class="comment p0_5" id="__w2_GjbmaNX_comment"><p class="comment_text">The 100% figure on helmets is correct.<br /><br />&quot;Koss is second only to <b>Sony</b> in retail stereo headphones, with a market share of 28 percent, according to the research firm NPD Intelect, and had overall sales of $34.8 million last year. It entered the prison market by chance when it was asked to bid on a contract for &quot;ear bud&quot; personal listening devices at one prison. Now, according to Mr. Koss, its line of inmate headphones represents more than $1 million in sales annually.&quot;<br /><br />Most of the companies using prison labor are not reporting it.  The figures are difficult to come by.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_NwQUoA4_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4535"><a name="comment100680"></a><div class="comment p0_5" id="__w2_VibuYHK_comment"><p class="comment_text">AmorSource supplied 4% of the ACH helmets supplied to the military. <a href="http://www.armedforces-int.com/news/us_army_advanced_combat_helmet_recall.html" rel="nofollow" target="_blank" class="external_link">http://www.armedforces-in<wbr />t.com/n...</a></p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_LFBWsGJ_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4536"><a name="comment100682"></a><div class="comment p0_5" id="__w2_PCJ0qkP_comment"><p class="comment_text">it was a 100k helment batch.  Meaning that the army ordered 2.5 million helmets?</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_IfRK1Lc_datespan">Insert a dynamic date here</span></p></div></div></div></div></div><div id="ld_6yUZYa_4506"><a name="comment100685"></a><div class="comment p0_5" id="__w2_x7Tzie3_comment"><p class="comment_text">&quot;prison workers supply 98% of the entire market for equipment assembly services; 93% of paints and paintbrushes; 92% of stove assembly;&quot; come on that absurd on it&#039;s face no small group of prison industry company could ever capture over 90% of markets of those size it&#039;s absurd on it&#039;s face.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_MiT78m9_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4507"><a name="comment100692"></a><div class="comment p0_5" id="__w2_NkVp6JZ_comment"><p class="comment_text">No it was 44,000 that were rejected here is the text:<br /><br /><br />The US Army is set to recall thousands of helmets worn by US troops based on reports of them failing to meet the grade. Potentially, 44,000 Advanced Combat Helmets (ACHs) of the type used by soldiers deployed in many parts of the world today will be called back in.<br /><br />Made by US defence firm ArmorSource, the helmets have not been connected to any incidents in which the safety of troops wearing them has been comprised.<br />However – according to one official – unauthorised manufacturing processes were involved in their construction, along with substandard materials and quality assessments, and it’s because of these factors that US troops could be endangered.<br />Advanced Combat Helmet/ ACH<br />The 44,000 Advanced Combat Helmets make up approximately four per cent of the total number of ACHs supplies to troops, according to the US Defense Department.<br /><br />“This isn&#039;t a matter of percentages, this is about survival”, Center for Strategic and International Studies spokesperson Tony Cordesman commented. “It&#039;s your ability if you&#039;re wounded to maintain your personality, you ability to function in ordinary life.”<br /><br />‘These helmets do not meet Army specifications’, the US DoD stated in a release issued on 14 May. It added: ‘Sufficient helmets produced by other manufacturers that meet Army requirements are currently available in the Army’s inventory. The Army will immediately issue these helmets to soldiers worldwide serving in those units identified to have recalled helmets.&quot;<br /><br />Notice were it explicitly states there are sufficient supplies from other manufactures.</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_v55ZqPn_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4242"><div class="feed_item stream_feed_item p1" id="__w2_OGx7v4L_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4279"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4303"><span id="ld_6yUZYa_4479"></span><a class="question_link" href="/Startup-Exits/How-focused-should-a-start-up-be-on-being-acquired" id="__w2_EHthjfR_link"><span id="ld_6yUZYa_4480"></span>How focused should a start-up be on being acquired?</a></span></h2></div></div><div id="ld_6yUZYa_4280"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_JzThuPg_answer_voting"><div id="ld_6yUZYa_4387"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_FIMzPAU_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_FIMzPAU_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_JzThuPg_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_AnYZQTV_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_AnYZQTV_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_AnYZQTV_menu_contents"> </div></div></span><div id="__w2_JzThuPg_answer_voters"><div id="ld_6yUZYa_4388"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">34</strong> votes</span> by <span id="__w2_pYfNgvY_view_all"><a class="user" href="/Anthony-Foster">Anthony Foster</a>, <a class="user" href="/George-Godula">George Godula</a>, <a class="user" href="/Ian-Mercer">Ian Mercer</a>, </span> <a class="more_link" href="#" id="__w2_pYfNgvY_view_all_link">(more)</a><span class="hidden" id="__w2_pYfNgvY_all_phrases"><a class="user" href="/Anthony-Foster">Anthony Foster</a>, <a class="user" href="/George-Godula">George Godula</a>, <a class="user" href="/Ian-Mercer">Ian Mercer</a>, <a class="user" href="/John-Marsland">John Marsland</a>, <a class="user" href="/Ralph-Barbagallo">Ralph Barbagallo</a>, <a class="user" href="/Rishi-Natarajan">Rishi Natarajan</a>, <a class="user" href="/Gerard-Mills">Gerard Mills</a>, <span class="name_span">Anon User</span>, <a class="user" href="/Joseph-N.-Liss">Joseph N. Liss</a>, <a class="user" href="/Cyril-Ebersweiler">Cyril Ebersweiler</a>, <a class="user" href="/Aaron-Weyenberg">Aaron Weyenberg</a>, <a class="user" href="/Lucas-Dailey">Lucas Dailey</a>, <a class="user" href="/Warrick-Taylor">Warrick Taylor</a>, <a class="user" href="/Douglas-Drouillard">Douglas Drouillard</a>, <a class="user" href="/Abhishek-Amit">Abhishek Amit</a>, <a class="user" href="/Keith-Pinson">Keith Pinson</a>, <a class="user" href="/Jukka-Pekka-Salmenkaita">Jukka-Pekka Salmenkaita</a>, <a class="user" href="/Mick-Hagen">Mick Hagen</a>, <a class="user" href="/Brian-MacKay">Brian MacKay</a>, <a class="user" href="/Yunghui-Lim">Yunghui Lim</a>, <a class="user" href="/John-Fan">John Fan</a>, <a class="user" href="/Ramit-Sethi">Ramit Sethi</a>, <a class="user" href="/Juraj-Chrappa">Juraj Chrappa</a>, <a class="user" href="/Ran-Avnimelech">Ran Avnimelech</a>, <a class="user" href="/Matt-Wyndowe">Matt Wyndowe</a>, <a class="user" href="/Mike-Chan">Mike Chan</a>, <a class="user" href="/Alec-Johnson">Alec Johnson</a>, <a class="user" href="/Kevin-Chen-1">Kevin Chen</a>, <a class="user" href="/Oliver-Cameron">Oliver Cameron</a>, <a class="user" href="/Matthew-Bromberg">Matthew Bromberg</a>, <a class="user" href="/Courtland-Allen">Courtland Allen</a>, <a class="user" href="/Ruchit-Shah">Ruchit Shah</a>, <a class="user" href="/Odera-Ume-Ezeoke">Odera Ume-Ezeoke</a> and <a class="user" href="/David-E.-Weekly">David E. Weekly</a></span></span></div></div></div>You need an exit plan from day one.  Read this book;<br /><br />Early Exits: Exit Strategies for Entrepreneurs and Angel Investors (But Maybe Not Venture Capitalists) <a href="http://amzn.to/bLyS75" rel="nofollow" target="_blank" class="external_link">http://amzn.<wbr />to/bLyS75</a><br /><br />When you start your first eight companies, you will do it wrong.  There will be dozen of things you wish you knew that you were unaware of.  Planning for exits is one of them.<br /><br />Your objectives for your company and its exit are going to affect many of the decisions you are making and you should make these choices earlier rather than later.  Why do I say that?<br /><br />Here is a graph of time of VC financing to exit<br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-1d4fe0f3434be165c4975bfb1d4d35ef" /> <br />If you take VC, your company is a 12 year commitment before an exit.  You should sit down with your founding team and make sure that everyone is aligned.  Are you building a company that you will be working at in 20 years or are you trying to build a company and flip it for a couple million in 4 years?<br /><br />You will find that different members of your company have different time horizons and objectives.<br /><br />You may also find that by taking the VC route, you increase your exit time and risk, but do not increase your rate of return.  A small 30 million dollar exit in 4 years is often better than a 12 year exit at 120 million with 3 rounds of VC and dilution.<br /><br />You also have to ask &quot;Can I exit at 1-2x after taking VC&quot; and that should influence your choice to take VC.  If you take VC, the VC has 3 separate ways of blocking an M&amp;A event.  You might like the exit at that valuation and may want to do the M&amp;A and move on, but you cannot; your investors will not approve the deal below 3x return.<br /><br />You may also find yourself with an M&amp;A offer and it seems like the last chance before you run out of money and its a good deal for you, but the VC vetos it and then puts a down-round in the company and wipes out your equity.<br /><br />So you have to ask &quot;What happens to my shares if there is a recession or unforeseen event and the company takes a down-round?  What is the probability of that happening in my market?&quot;  If your market is software and 100% margin, you can probably cut back to profitability.  However if you are a manufacturing company with inventory and debt to finance machinery/invento<wbr />ry purchases and your margins are 8%, then a recession could impact your sales enough to put you in a cash crunch.<br /><br />The reality is that your choices about the financing of your company affect your strategic options.  Selling for 10-30 million is easy, there are hundreds of buyers.  Selling for 120 million is more difficult, there will be fewer potential acquires and the acquiring company will need to get board approval for the acquisition.  Between 30 million and 300 million valuation is a no-man&#039;s land.  You are too large for an easy M&amp;A but too small to go public.<br /><br />It is even worse to be a technology company with a 300 million valuation (lots of users) and no revenues (Slide, Digg, Ning, link shorteners, etc...).  You cannot IPO because you have no revenues, but your valuation is too high for anyone except Microsoft, Yahoo or Google to buy you.  You only option is taking on more and more VC and hoping that someone big decides to buy you someday.  For these companies, a 30 million dollar &quot;Flickr&quot; type exit early on may be better for the founders and empoyees than growing extremely large without any path to revenue (Foursquare).<br /><br />You want to make the decision whether you will &quot;Go for the Gold&quot; and build the company to IPO or to flip the company early.  You need to make this decision when you start the company, because you will find that different members of the management team will have completely different ideas about the timespan and objectives of company.<br /><br />&quot;<b>the decision to accept VC investment increases the time to exit by approximately 12 years, not the median time of 7 years.&quot;</b><br /><b><br />&quot;</b>When VC investment was added, the <b>time to exit increased to somewhere around sixteen years after the entrepreneurs started and twelve years after the angels invested.&quot;</b><br /><b><br /></b>You need to look at the data and determine what the objectives for your company are and need to make decisions in light of those objectives.  This requires having an early idea of your exit strategy.<br /><br />There are several things you can do to structure your company so that it is more desirable as a target for M&amp;A and those are things you need to do from day one.  They are covered pretty well in that book <a href="http://amzn.to/bLyS75" rel="nofollow" target="_blank" class="external_link">http://amzn.to/bLyS7<wbr />5</a><br /><br />One thing to keep in mind is that if you are small company, companies that are interested in acquiring you are not going to magically find you (there are actual companies outside of Silicon Valley that may be interested in your IP, but do not know you exist).  You will have to do some work to get acquired and to find the companies with complementary products.  Getting acquired is not necessary a passive process and there are actions you can take to increase the desirability of your company as an M&amp;A target and to advertise your company to a wider range of potential buyers.<br /><br />Soliciting M&amp;A offers is also necessary to setting up a competitive M&amp;A process. You will also learn that (like fund raising) M&amp;A deals are a full time job.  If you let the CEO manage the M&amp;A process, the company may suffer.  You should have someone who is able to handle the M&amp;A process full-time without affecting the performance of the company during the process.<div class="action_bar" id="__w2_JzThuPg_answer_actions"><span id="ld_6yUZYa_4389"><a class="view_comments supp " href="#" id="__w2_cCbGZZg_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4390"><a class="answer_permalink" href="/Startup-Exits/How-focused-should-a-start-up-be-on-being-acquired/answer/Brandon-Smietana"><span class="datetime" id="__w2_DMPflho_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4439"></span></span></div><div id="ld_6yUZYa_4391"><div class="comments answer_comments hidden" id="__w2_mDQkETq_answer_comments"><div id="ld_6yUZYa_4440"><div id="ld_6yUZYa_4508"><a name="comment98830"></a><div class="comment p0_5" id="__w2_yz1HXZy_comment"><p class="comment_text">Wow. that is an awesome response. Suprised the book doesn&#039;t have more reviews on amazon though. What you say makes a bucketful of sense.</p><p class="action_bar"><a class="user" href="/Paul-Sweeney">Paul Sweeney</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_dsTzFf4_datespan">Insert a dynamic date here</span></p></div></div><div id="ld_6yUZYa_4509"><a name="comment100359"></a><div class="comment p0_5" id="__w2_nI11B5l_comment"><p class="comment_text">Very nice synthesis of the harsh reality of taking outside money.  Capital enables great things, but it is important to understand the practical reality of taking Other People&#039;s Money.  You have to focus on doing everything to build a great product/service, but if that means taking OPM, be aware of the potential consequences.</p><p class="action_bar"><a class="user" href="/Chris-Hobbs">Chris Hobbs</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_yVcnZQQ_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4243"><div class="feed_item stream_feed_item p1" id="__w2_oU8Ot0X_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4281"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4304"><span id="ld_6yUZYa_4481"></span><a class="question_link" href="/Is-taxation-by-definition-a-form-of-theft-Why-or-why-not" id="__w2_RE3mYpg_link"><span id="ld_6yUZYa_4482"></span>Is taxation by definition a form of theft? Why or why not?</a></span></h2></div></div><div id="ld_6yUZYa_4282"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_bXuCNlV_answer_voting"><div id="ld_6yUZYa_4392"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_sLuaJz0_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_sLuaJz0_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_bXuCNlV_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_xMQB8Pa_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_xMQB8Pa_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_xMQB8Pa_menu_contents"> </div></div></span><div id="__w2_bXuCNlV_answer_voters"><div id="ld_6yUZYa_4393"></div></div></div>Taxation is not voluntary and is enforced directly through the government&#039;s monopoly on force.<br /><br />If wealth if property and the government is depriving you of your property through the threat of force, that might be called theft.<br /><br />Theft has several connotations attached to it however, such as illegitimacy.<div class="action_bar" id="__w2_bXuCNlV_answer_actions"><span id="ld_6yUZYa_4394"><a class="view_comments supp " href="#" id="__w2_w1I5pTE_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4395"><a class="answer_permalink" href="/Is-taxation-by-definition-a-form-of-theft-Why-or-why-not/answer/Brandon-Smietana"><span class="datetime" id="__w2_ZnRWwIP_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4441"></span></span></div><div id="ld_6yUZYa_4396"><div class="comments answer_comments hidden" id="__w2_HrojYKi_answer_comments"><div id="ld_6yUZYa_4442"><div id="ld_6yUZYa_4510"><a name="comment97444"></a><div class="comment p0_5" id="__w2_IllTw1C_comment"><p class="comment_text">Of course taxation is voluntary is there a guard at the border stoping you from leaving?</p><p class="action_bar"><a class="user" href="/Gary-Stein">Gary Stein</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_KXbJ2ae_datespan">Insert a dynamic date here</span></p></div></div></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4244"><div class="feed_item stream_feed_item p1" id="__w2_UYzpnm4_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4283"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4305"><span id="ld_6yUZYa_4483"></span><a class="question_link" href="/For-web-startups-seeking-to-acquire-users-should-they-focus-initial-advertising-on-one-city-market-or-disperse-advertising-among-several-major-cities" id="__w2_p7C7NIc_link"><span id="ld_6yUZYa_4484"></span>For web startups seeking to acquire users, should they focus initial advertising on one city/market, or disperse advertising among several major cities?</a></span></h2></div></div><div id="ld_6yUZYa_4284"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_Arzyd1w_answer_voting"><div id="ld_6yUZYa_4397"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_gVyRozT_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_gVyRozT_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Arzyd1w_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_S4MVqFt_link"><span class="rep" id="__w2_S4MVqFt_sig">I write machine learning based s...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_S4MVqFt_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_S4MVqFt_menu_contents"> </div></div></span><div id="__w2_Arzyd1w_answer_voters"><div id="ld_6yUZYa_4398"></div></div></div>How are you acquiring users?<br /><br />Is your startup geographically focused?  Like Foursquare?<br /><br />Is your user acquisition advertis<wbr />ing driven?<br /><br />Is it driven by SEO?<br /><br />There are too many factors.  There is not a best answer. If you are doing a Facebook or FourSquare, then geography matters.  If you are doing Q&amp;A than SEO and content matters more than geography.<br /><br />Communication services and user communities need a critical mass of users.  Whether geography matters is completely dependent on the nature of your service.  Some services has geography components and others do not.  Some are completely geography focused and others not at all.<div class="action_bar" id="__w2_Arzyd1w_answer_actions"><span id="ld_6yUZYa_4399"><a class="view_comments supp " href="#" id="__w2_W98NSDJ_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4400"><a class="answer_permalink" href="/For-web-startups-seeking-to-acquire-users-should-they-focus-initial-advertising-on-one-city-market-or-disperse-advertising-among-several-major-cities/answer/Brandon-Smietana"><span class="datetime" id="__w2_p4E5GX0_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4443"></span></span></div><div id="ld_6yUZYa_4401"><div class="comments answer_comments hidden" id="__w2_T3GLzGA_answer_comments"><div id="ld_6yUZYa_4444"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_6yUZYa_4245"><div class="feed_item stream_feed_item p1" id="__w2_zLtjzcd_item"><div class="e_col w4_5"><div id="ld_6yUZYa_4285"><div class="feed_item_question"><h2><span id="ld_6yUZYa_4306"><span id="ld_6yUZYa_4485"></span><a class="question_link" href="/What-is-a-reasonable-range-for-a-CEO-to-pay-him-herself-at-a-pre-launch-startup-that-raises-5m-in-Series-A-funding" id="__w2_TRBzFQP_link"><span id="ld_6yUZYa_4486"></span>What is a reasonable range for a CEO to pay him/herself at a pre launch startup that raises $5m in Series A funding?</a></span></h2></div></div><div id="ld_6yUZYa_4286"><div class="feed_item_answer answer_text"><div class="rating_buttons"><div id="__w2_esKiL9z_answer_voting"><div id="ld_6yUZYa_4402"><div class="rating_buttons "><div class="rating_options"><a class="lil_button rate_up" href="#" id="__w2_r1lmk6L_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_r1lmk6L_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_esKiL9z_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_mC1KWuM_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_mC1KWuM_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_mC1KWuM_menu_contents"> </div></div></span><div id="__w2_esKiL9z_answer_voters"><div id="ld_6yUZYa_4403"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_QFpcsJu_view_all"><a class="user" href="/Matthew-Simon-Cavalletto">Matthew Simon Cavalletto</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Chris-Muscarella">Chris Muscarella</a>, </span> <a class="more_link" href="#" id="__w2_QFpcsJu_view_all_link">(more)</a><span class="hidden" id="__w2_QFpcsJu_all_phrases"><a class="user" href="/Matthew-Simon-Cavalletto">Matthew Simon Cavalletto</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Chris-Muscarella">Chris Muscarella</a>, <a class="user" href="/Jussi-Laakkonen">Jussi Laakkonen</a> and <a class="user" href="/Vikram-Singh">Vikram Singh</a></span></span></div></div></div>$225,000 a year is base salary for the CEO of a post-series A company.  Founder CEOs typically receive 25k less a year than non-founder CEOs.<br /><br />25th percentile salary for technology startup CEOs is $200k/year<br />50th percentile salary is $225k a year<br />75th percentile is $250k a year<br /><br />Startup CEO salary is constrained to a very narrow range.<br /><br />25th percentile salary for CEOs at the first financing round is 155k a year.<br />75th percentile salary for CEOs at the first finance round is 275k a year<br /><br />For more information see,<br /><a href="http://www.scribd.com/doc/7494620/2008-CompStudy-Report-in-Technology" rel="nofollow" target="_blank" class="external_link">http://www.scribd.com/doc<wbr />/749462...</a><br /><br />For people who would say &quot;OMFG! 250k a year, that is ridiculous!  OMFG11&quot;, you should keep in mine that a 2,500 sq-ft shack in Menlo Park costs 2 million dollars.  If CEOs paid no taxes and saved 100% of their $250k a year income, it would still taken them 8 years to save enough money to buy a 2 million dollar shack.<br /><br />After taxes and expenses, it would take 32 years for a CEO to afford a shack if they lived very frugally (no Ferrari).<br /><br />In real terms, 250k a year is nothing.<div class="action_bar" id="__w2_esKiL9z_answer_actions"><span id="ld_6yUZYa_4404"><a class="view_comments supp " href="#" id="__w2_zRtVl3b_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_6yUZYa_4405"><a class="answer_permalink" href="/What-is-a-reasonable-range-for-a-CEO-to-pay-him-herself-at-a-pre-launch-startup-that-raises-5m-in-Series-A-funding/answer/Brandon-Smietana"><span class="datetime" id="__w2_gRJACck_datespan">Insert a dynamic date here</span></a><span id="ld_6yUZYa_4445"></span></span></div><div id="ld_6yUZYa_4406"><div class="comments answer_comments hidden" id="__w2_pyyA0bJ_answer_comments"><div id="ld_6yUZYa_4446"></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div id="ld_6yUZYa_4246"><div class="hidden" id="__w2_cSv71A4_loading"><span class="__wn2_loading"><span class="__wn2_loading_spinner"></span><span 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href="/Brandon-Smietana/mentions"><strong>18</strong><br />@Mentions</a></div></div></div></div><div id="ld_6yUZYa_4204"><div class="row section p1" id="answers"><strong>Recent Top Answers</strong><div id="ld_6yUZYa_4211"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">4</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Who-should-I-talk-to-if-I-want-to-license-my-patent/answer/Brandon-Smietana">Who should I talk to if I want to license my patent?</a></h2></div><div class="inline" id="__w2_tqpzq3y_truncated"><div id="ld_6yUZYa_4216"><div class="truncated_thumbnail_holder"></div>1&gt; Find companies that are doing things related to your patent <a class="more_link" href="#" id="__w2_tvx9WYP_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_tqpzq3y_expanded"><div id="ld_6yUZYa_4217">1&gt; Find companies that are doing things related to your patent<br />2&gt; Find a law firm<br />3&gt; Initiative a lawsuit on a contingency basis.  Initiative discovery<br />4&gt; Obtain a license as part of the settlement.<br /><br />The discovery process puts a huge financial burden on the defendant.  They would rather pay a couple hundred thousand to make the lawsuit go away than pay massive legal costs for discovery.  They only have a few weeks do this if you file your lawsuit in the Texas patent lawsuit &quot;rocket docket&quot;.<br /><br />DO NOT contact the company ahead of time.  Do not give them advanced warning.  It only gives them time to prepare.<br /><br />Also, you should not be too worried about whether the company specifically violates your patent before filing a lawsuit.  You will find out if they are violating your patent in the discovery process.<br /><br />Also, you may find that it is better to go after the customers of the company who is possibly violating your patent, rather than the company itself.  As the company has an incentive to fight the lawsuit and try to invalidate the patent.  A $20,000 &quot;license&quot; from the customers of the company is always cheaper than the customers fighting the patent lawsuit.<br /><br />Good targets for litigation are venture backed companies that have filed for IPO and are in the quite period and companies that are in M&amp;A negotiations.  They want to settle badly.  One European VC mentioned that 70% of his portfolio companies had pending IP litigation in the 12 months before their exit.<br /><br />Also, dont be too eager to litigate too early.  You want to wait until there is a vibrant and growing market around your patent.  You have up to 6 years after the patent to pursue past violations.  Once you start litigating, companies will start building around your patent.</div></div></div></div></div><div id="ld_6yUZYa_4212"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">3</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/In-what-ways-could-the-Combating-Online-Infringement-and-Counterfeits-Act-COICA-affect-the-way-people-use-the-Internet/answer/Brandon-Smietana">In what ways could the Combating Online Infringement and Counterfeits Act (COICA) affect the way people use the Internet?</a></h2></div><div class="inline" id="__w2_P2OUFOX_truncated"><div id="ld_6yUZYa_4218"><div class="truncated_thumbnail_holder"></div>Youtube would have been blacklisted in the first month if this law was in effect 10 years ago. <a class="more_link" href="#" id="__w2_rVRwSOZ_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_P2OUFOX_expanded"><div id="ld_6yUZYa_4219">Youtube would have been blacklisted in the first month if this law was in effect 10 years ago.<br /><br />Basicly, you can expect that new and controversial service<wbr />s will be blacklisted along with several very popular existing services.  It will certainly have a chilling effect.<br /><br /><b>This law hands over control to what you can access on the internet to the government and corporate interests.</b>  No one argues that its not a tool of censorship, they are only debating whether the censorship is desirable or undesirable.<br /><br />However, I think this bill could be the best thing that happens to the internet.  The backlash would be immense.  Will will rely less on government controlled services such as DNS.  In Japan, measures similar to COICA sparked the development of extremely sophisticated c<wbr />ryptographic file exchange systems.  A major erosion of internet freedom such as COICA could create demand in the United States for most robust internet infrastructure.<br /><br />Ironically, the FBI and NSA have been the strongest opponents of these blacklist bills in the past, because they were afraid it would drive people to use cryptographic product<wbr />s and communication protocols t<wbr />hat were difficult to intercept and monitor.  However, the COICA provisions are being pushed through with a tacit agreement that they would be accompanied by the outlawing of encryption services where end-users have control of their private keys.  If encryption without government backdoors is made illegal and enforced (throwing people in jail for using encrypted file sharing services), then COICA may be enforceable.<br /><br />The COICA bill is only politically feasible with government mandated back-doors in all encryption products and services.<br /><br /><blockquote>The New York Times reported today that the FBI is preparing to propose legislation to the Obama Administration that would require Internet service providers (including software makers like Skype) to build in &quot;backdoors&quot; so that any communication between people can be monitored by the government.</blockquote><br />COICA eliminates the possibility of operating innovative new services which skirt the line on copyrights.  New services will not occur in the open and the existing services will be pushed to adapt technical measures to circumvent these regulations.<br /><br />COICA will have the most impact on new internet services and emerging business models (like Youtube) but will have very little impact on curtailing existing copyright abuses, which will simply move to adapt more advanced technical measures, as has already happened in Japan.</div></div></div></div></div><div id="ld_6yUZYa_4213"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">3</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Is-it-okay-to-embed-a-link-with-affiliate-ID-if-its-relevant/answer/Brandon-Smietana">Is it okay to embed a link with affiliate ID if it&#039;s relevant?</a></h2></div><div class="inline" id="__w2_dqC06R2_truncated"><div id="ld_6yUZYa_4220"><div class="truncated_thumbnail_holder"></div>The users of Quora should not benefit financially from the site.  The only people who should be making money are the Quora founders and possibly th... <a class="more_link" href="#" id="__w2_rDXST7R_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_dqC06R2_expanded"><div id="ld_6yUZYa_4221">The users of Quora should not benefit financially from the site.  The only people who should be making money are the Quora founders and possibly the employees.<br /><br />By posting affiliate links, you hurt Amazon&#039;s sales margins.  You should be ashamed of yourself. <i>[1]</i><br /><i><br />[1] Internet Ethics, D. Langford 2003 <a href="http://amzn.to/aWA2rh" rel="nofollow" target="_blank" class="external_link">http://amzn.to/aWA2r<wbr />h</a></i></div></div></div></div></div><div id="ld_6yUZYa_4214"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">2</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/What-is-the-most-important-barrier-to-entry-in-any-market-and-why/answer/Brandon-Smietana">What is the most important barrier to entry in any market and why?</a></h2></div><div class="inline" id="__w2_d8Usdh5_truncated"><div id="ld_6yUZYa_4222"><div class="truncated_thumbnail_holder"></div>There is no single barrier that is present in every market. <a class="more_link" href="#" id="__w2_sgqDR51_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_d8Usdh5_expanded"><div id="ld_6yUZYa_4223">There is no single barrier that is present in every market.<br /><br />However, in mature markets the greatest barrier is generally government regulation and the status quo.</div></div></div></div></div><div id="ld_6yUZYa_4215"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">2</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/What-would-happen-to-the-taxicab-industry-if-cars-could-legally-drive-themselves/answer/Brandon-Smietana">What would happen to the taxicab industry if cars could legally drive themselves?</a></h2></div><div class="inline" id="__w2_PMHr3ws_truncated"><div id="ld_6yUZYa_4224"><div class="truncated_thumbnail_holder"></div>Hell would break loose.  Fire and brimstone.  Government regulation.  Political economy.  Rent seeking! <a class="more_link" href="#" id="__w2_bUaxqAy_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_PMHr3ws_expanded"><div id="ld_6yUZYa_4225">Hell would break loose.  Fire and brimstone.  Government regulation.  Political economy.  Rent seeking!<br /><br />The libertarians would be rioting in the street.</div></div></div></div></div></div></div></div></div></div><div class="footer wrapper"><div class="contents"><div class="footer_nav row"><div class="e_col footer_links w8"><div id="ld_6yUZYa_4205"><ul class="nav_list"><li class="about"><a href="/about">About</a></li><li class="jobs"><a href="/jobs">Jobs</a></li><li class="privacy"><a href="/about/privacy">Privacy</a></li><li class="tos"><a href="/about/tos">Terms</a></li><li class="press"><a href="/press">Press</a></li><li><span class="bullet"> &bull; </span></li><li class="signup"><a href="/login/index">Login</a></li><li class="signup"><a href="/signup/index">Sign Up</a></li><li class="mobile nav_sub_item"><a href="#" id="__w2_Utf5ONl_mobile_site">Mobile Site</a></li></ul></div></div></div></div></div></div><div class="above_page_banner hidden" id="__w2_Hq9iYpz_banner">There are some updates to this page that haven&#039;t been applied yet because you&#039;ve entered some data into a form. 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