Leaving Silicon Valley

Tom Paine

Houston campus when completed Source: HPE

Hewlett Packard Enterprise, one of the successor companies to the original Hewlett-Packard Co., which was the very archetype of Silicon Valley’s iconic image, is picking up its headquarters and moving east to Houston. The original company, founded in 1939 in a Palo Alto garage, began by building electronic instruments used in the World War II effort.

Stories are beginning to multiply of companies and individuals leaving the Valley for emptier fields, spurred on by the high cost of living and less need of geographic proximity because of the Covid-19 effect.

An individual case is that of Rob Hayes, one of the earliest partners of First Round Capital, dating back to 2006. Hayes built much of First Round’s west coast presence, and is credited with its investments in Uber (one of the most successful in VC history), Square and Mint. In 2018 he announced he was stepping back from his investing partner role to being a board partner, which would give him more flexibility .

Recently I picked up on Twitter that Hayes was in Philadelphia, having apparently moved his family there. I reached out to him on LinkedIn but haven’t received a response. . Rob is a west coast person as far as I can tell, getting his undergrad degree from Cal Berkeley. He came east to attend Columbia Business School, where he received an MBA and currently serves on its Board of Overseers. I don’t have a clue why he is living in Philly, and whether it has something to do with First Round. But being drawn to Philly is opposite to the usual route.

Philly EnterpriseTech PeopleNews 3/31: Uber co-founder Camp steps back from board role; Patrick Murphy to Chair Cerner Government Advisory Board

Interesting because the Saudis, major investors, weren’t crazy about the cannabis trade.. This doesn’t put goPuff in, but maybe closer than before.
Cerner has a $10 billion contract with the VA. Wave the flag.
New officers named
Has worked with First Round Capital on multiple deals.
Former Spark exec.
from Drexel
Apple guy gets big surprise

Philly EnterpriseTech Highlights 2/6/20-2/7/20: Unisys sells Fed business; Uber says it will find a way to breakeven later in year

First Round’s tally on Uber is in

Tom Paine

The Wall Street Journal published an article this week highlighting some of the biggest VC investment wins of recent time, choosing First Round Capital’s stake in Uber as a prime example.

The numbers it has for that are $500,000 invested in 2010, returning proceeds of $2.5 billion, or 5,000x its investment. I saw some slightly different figures in other publications.

Of course, these results came from the WSJ, not First Round. And I’m not sure they recognized that about 40% of First Round shares were sold last year as part of the Softbank offer, according to sources.

Planning for the capital gains on that profit must have been a bear.

philly enterprisetech highights 4/13

TechCrunch’s first story on Uber (then UberCab) way back in 2010 by @Leenarao https://t.co/a5AfMZ3bH3— Lucas Matney (@lucasmtny) April 12, 2019

+1. Highly recommend this plan. @visitphilly https://t.co/bCHSla0v92
— PhillyForce (@PhillyForce) April 13, 2019

Why is Safeguard Scientifics on a planned path to its demise:?
— Tom Paine (@phillytechnews) April 13, 2019

Analyst: Verizon Should Partner with Charter, Comcast on Wireless Infrastructure https://t.co/0gNwt71610
— Tom Paine (@phillytechnews) April 13, 2019

T-Mobile relaunches Layer3 TV service as TVision Home https://t.co/uYwZZMHgts via @Verge
— Tom Paine (@phillytechnews) April 12, 2019

Amazon boss snubs ‘expensive’, ‘sub-optimal’ relational databases. Here’s looking at you, Larry https://t.co/bv1vlPwlVl
— The Register (@TheRegister) April 12, 2019

#TBT: Muni Wi-Fi in Philly; mobile gaming grows; AOL adds VoIP … this week in 2005 https://t.co/E4GP172a9V via @rcrwirelessnews
— Tom Paine (@phillytechnews) April 12, 2019

Who Will Win? https://t.co/mLExtnztDB?
— Tom Paine (@phillytechnews) April 12, 2019