Former Facebook President: Silicon Valley has limited investment and entrepreneurial capacity

"The Silicon Valley has a big problem: too many angel investors are putting too much money into aspiring entrepreneurs," said Parker, a former Facebook president and the late-night news of Beijing Time, Sina Science and technology.　　But these entrepreneurs have no real entrepreneurial skills at all.　　Parker was interviewed this week at the World Economic Cooperation and Development forum (techonomy 2011) in Arizona, State, USA, and the following is a summary of the interview: Q: What is the problem with the current rapid investment in "factory line" mode? A: This investment model is suitable for the dotcom bubble, that is, massive investment at a very fast rate, and even outsourcing due diligence.　　Obviously, in the era of Internet boom, the bubble environment is relatively effective.　　Q: How is the current situation formed?　　A: 6 or 8 years ago, there was not enough early investment capital (that is, to invest in start-up companies), in order to make up for the gap, some venture capital funds have entered the market.　　Now this phenomenon is in the field of Angel investment, many angel investors at the fastest pace to invest in Google and Facebook, want to be part of the board has a place.　　This phenomenon has led to a lot of money being invested in companies that are not really competitive, such as poor teamwork, no market competitiveness, and no compelling revenue model.　　Q: You've talked a lot about the importance of management teams. A: Many specific areas of talent are not suitable for the creation of a company, some outstanding engineers are not suitable for the product, not suitable for the founder, and vice versa.　　When you have a lot of money and everyone advises you to start a business, you have to understand your own place and value throughout the ecosystem.　　For executives who serve Silicon Valley's big businesses, they have a respectable status and generous treatment in their companies, and some think their next step is to create a company that is completely wrong and is likely to result in loss of one's own or another's property.　　Q: Does it sound like investment doesn't necessarily pay off?　　A: At present, for any outstanding engineer, if the family is able to, can bring out 250,000 dollars or 500,000 dollars to create a company, although they may not have the ability to run the company. They argue that this is not the case as long as the company works.　　They need to build a team that may not be entirely composed of experienced veterans, but must have the capabilities needed to run a company.　　Q: But sometimes good companies come from these small startups, but they rarely become "Facebook" or "Google". A: Sometimes it does, but it's more like gambling than investing. The result is a loss of capital, and the most adverse effect is the loss of talent. Good companies are not just competing with Facebook, Google, Dropbox or Groupon,They compete with tens of thousands of startups, most of which will never succeed.　　Q: What is the question? A: When some big competitors are listed, some companies that are not ready for listing will be tempted to do so. Once the time is right, these companies will be hastily listed. Then these enterprises will have problems, resulting in a lot of losses.　　This loss accumulates to a certain extent, the market-oriented window for technology companies is closed.　　Q: Listing is not the only option, and Google bought 27 companies last quarter.　　A: Google bought 27 companies last quarter, many of them to get talent, sometimes even 1 million dollars to attract an engineer, but this will not last forever.　　Q: The bursting of the bubble helps ease the shortage of talent.　　A: The only way to offset this is for Google, Facebook, Dropbox and Groupon to stop using high salaries to attract talent.　　Q: Yes, there must be a limit.　　A: Then you'll see many of these companies fail.　　Q: How long does it take? A: Not sure, maybe a year, two years, or even longer. But in the end, the number of startups forced to close is certainly more than the number of startups that Google and Facebook have to buy. (Li Ming)