HBO’s Silicon Valley is quickly becoming a cult classic among technology enthusiasts. Since the cloud will dictate the way we utilize technology going forward, it is important to watch this show not only for its comedic value but for its expert insight into how to bring a product to market using venture capital.
When millions or billions of dollars are at stake, you can expect fierce competition vying for the top spot. More often than not, those who bring their product to market first will get the most significant share of press and venture capital. Silicon Valley articulates this point when the main character brings his product to two venture capitalist firms. One venture capitalist offers 5% for $250,000 while another venture capitalist offers $10 million for 100%.
Wanting to build a brand name, the main character takes the 5% for $250,000 and as the show progresses, the venture capitalist who offered $10 million for the entire project quickly begins building a product to rival the main character in the show. The rival product goes to market first with tech blogs such as Recode.net and TechCrunch quickly picking up on the rival product. Although the rival product was inferior, it was brought into the market first thus allowing consumers to equate the rival’s brand name with the process that the entrepreneur was trying to build out himself.
What can cloud entrepreneurs learn from this series? Build simply and build quickly. If you have a “Unique” cloud idea, chances are someone else has the same idea and you are simply in a race to bring the idea to the market first. If you haven’t seen the show Silicon Valley, we apologize for the spoilers. The executive producer is Mike Judge who you may know from Beavis and Butthead and the movie Office Space. Silicon Valley is currently in its first season and the 4th episode debuts on HBO at 10PM EST on Sunday, April 27th 2014.