First stop for our fourth day was Applied Signal Technology. Co-founded by NC State alum Jim Collins back in 1984, AST focused early on digital signal processing in high performance products used by the government for signal collection. Their products are primarily used for ‘ISR’, or intelligence, surveillance, and reconnaissance. Jim Collins not only had great gift bags for us (with a coffee mug!) but also had a bottle of Coke from the NC State 1983 NCAA Championship year. It was great to see an alumnus still proud of the school. Jim talks in a down-to-earth manner with still a bit of North Carolina in his accent. He gave us good feedback on our questions, and was able to describe the challenges of creating a company whose main and essentially only customer is the US Government. Afterwards, he took us on a tour of his facilities.
After taking a photo in front of the iconic water tower remnant of the fruit factory that used to stand where AST is now, we piled in the vans and headed to Danger. Those who have heard of the T-Mobile Sidekick (popular among celebs) may be surprised to hear that Danger is actually the company that designs the hardware and creates the software that makes it enjoyable to use. Joe Britt, a co-founder and ’91 NC State alum, was Dr. Miller’s student a long time ago. Danger has changed offices quite a bit in the last few years (a sign of their growth) and their new office had the vibe of a Valley startup. Color accented walls, exposed ceiling, a variety of lighting as opposed to the typical fluorescent lighting of most offices. Joe described his company and passed around older versions of the Sidekick and even some development versions. He shared with us his path to starting Danger, the skepticism he got from VC firms because it wasn’t geared for corporations. Danger has no plans to go up against corporate mobile email giants like the Blackberry or Treo smartphones. One thing I wrote down that Joe said was “The Internet has now become relevant to ordinary people.” It sounds simple and obvious now when YouTube, MySpace, and Facebook are all the rage, but back when Danger and Joe were conceiving the Sidekick this insight is quite striking. Joe had a few wonderful stories about what running a startup company entails. Of how they pitched to more than 20 VC firms and were denied each time. Of how the one day the representative from Sharp could visit was the same day as his wedding, and how he and his wife changed clothes between the wedding and the reception just to make sure the meeting went through ok. Of how when they had to RF testing and didn’t have an anechoic chamber, they just built one themselves. This perked my interest, having had worked on a homemade anechoic chamber for a research project last week. We had some nice pizza delivered (not from a chain) and talked a bit more about where his company is headed. Before leaving Danger, he took us down to the lab and I got to look at it. We rushed to take a group picture then quickly loaded into the vans. We didn’t want to be late for Randy Komisar.
Our meeting with Randy Komisar was, by now, taking on some pretty serious buzz. Our whole group had been giving copies of his book, The Monk and the Riddle, which many of us read on the flight over here. Randy Komisar has had a wealth of experience in the Valley, and is widely respected and admired. He founded the Claris Corporation, GO, served as CEO of LucasArts Entertainment, helped WebTV, etc. Now, he acts like a “Virtual CEO” and teaches a class at Stanford University. Oh, and he was just made a full partner at Kleiner Perkins Caufield & Byers, one of the most successful venture capitalist firms in the world. Maybe you’ve heard of some of the companies where Kleiner Perkins was an early investor: Amazon.com, America Online, Google, Intuit, Lotus, Netscape, Sun, Macromedia, Electronic Arts. So yeah, we are all greatly anticipating this meeting. Driving down the famous Sand Hill Rd., home to probably more than a hundred VC firms, we could only imagine the hundreds of billions dollars in the air. Their building follows a sort of ranch style, with light colored wood and skylights for an airy feeling. We entered a massive yet inviting board room, saw already signed copies of the Monk and the Riddle on a table, along with a cheese tray, gourmet cookies, and beverages. Dr. Walsh quietly mentioned how he had made a pitch in this room for his company long ago. Randy soon entered and warmly addressed our group. Not only was I thrilled for the chance to get 45 minutes with him, I’m actually even more impressed about the fact that Randy knows about our Engineering Entrepreneurs Program at NC State. This is a man who works with arguably the world’s best – Stanford Technology Ventures. For him to know about us and to think positively about what our program is doing speaks volumes to the hard work and dedication of Dr. Miller and Dr. Walsh. He was the first person to actively ask us questions and hear our thoughts. Dr. Miller wanted to know his thoughts on the iPhone, considering the issue had been brought up in many of our other stops. Randy asked us what we thought and whether we used Apple products. Later, he was joined by Bill Campbell. Their friendship goes back many many years and it seems that Campbell serves in a similar role to Randy as a ‘virtual CEO’. We did not realize Bill Campbell would be joining us, so we students weren’t too familiar with him. Jason Massey, who hosted us for dinner the previous night and was there to join us, said later that Campbell was a rock star in the Valley…sitting on the Board of Directors for Apple, early advisor to Google, CEO and advisor to Intuit, etc. Back to our conversation. Randy answered questions on the ‘herd mentality’ of venture capitalists, how he and his firm try to see beyond the horizon, and what makes Silicon Valley so unique in cultivating entrepreneurship. Jared asked him something that stemmed from our meeting with Guy Kawasaki – when Randy is looking at a pitch does he approach it from the standpoint of “wouldn’t it be cool if” or does he look at the market? Randy answered straightforwardly “the market.” I enjoyed that contrast, though I can certainly see why their two answers would be different.
We all felt like we could have talked for two more hours, but our time was up. We graciously thanked Randy and Bill for their time, and it looks like they will welcome next year’s group as well. Maybe they can meet at the Konditorei then. Our final stop of the trip was Tesla Motors, a company that caught a lot of attention in recent years for developing a head-turning automobile that can burn Ferrari’s and Porsches in a 0 to 60 race. The catch is that their car is all electric. They gave us a short presentation on the motivation behind Tesla Motors and what they aim to do. One interesting fact is that their battery is actually hundreds of AA lithium ion batteries that are cleverly packaged together. Some pretty sophisticated electronics are needed to maintain a cell like that. Their electric motor is also custom designed and can produce a staggering amount of torque. Their engine has a flat torque line from 0 to 5000 rpm unlike other cars, so even at 5 rpm you’re getting a tremendous amount of torque from the engine. It has only two gears. This is a reason why it can beat fancier cars head-to-head. They didn’t have an actual car at their facility, but they showed us two demo models of them. You have to admit, they are good looking cars. They share some elements with the Lotus Elise. I’ll personally be more interested though when they bring their technology to focus more on consumer cars rather than $90,000 roadsters.
After Tesla Motors, we stopped by the hotel to freshen up then walked down to the California Avenue Caltrain station. We were going to catch a 6:15pm train into San Francisco for dinner. A few of us had some dry remarks about a suicide prevention sign placed near the railroad tracks. California can sure be a strange place. On the train ride Cameron and I bought the winz0r.com name to have a little fun with win. It’s an inside joke, but try pointing your browser to winz0r.com/face. Greg, Jessie, Cameron, and I were sitting in one of the four seat arrangements on the bottom floor of the Caltrain. Jessie’s phone rings and she asks “What is a 650 area code number?” I smiled and said that it was a Stanford area code, and that it had to be Austin calling her. She wasn’t sure if she should take it, but soon our whole group was egging her on. Sure enough it was Austin from last night at the Nut House, and Jessie had to get up to take it due to the fun Greg was making at her. Maybe Austin would be meeting her later that night after we got back from San Francisco.
An hour later, we made it into city. It was already dark, so didn’t get to see much. We walked north to the waterfront and had a nice view of the Bay Bridge lit up. The restaurant, Delancy’s, is actually staffed with recently paroled prisoners as a way of integrating them back into society. It is a nice restaurant, and most of the students took a large table by ourselves. I got some wine advice from Win, Jordan, and Greg and we ultimately ended up sharing a bottle of cabernet. Dinner was fine, if a little slow. Most people had the steak. We schemed to tell the staff that it was Dr. Walsh’s birthday, but that didn’t work out. It was so late by the end of dinner that we simply headed back to the train station to catch the 10pm train back to Stanford. A group of people got off a stop early at University Avenue, but our chaperons and the rest of us were pretty tired so we went back to the hotel. Since Jessie wasn’t with us, I presumed she joined the group going to University Avenue. Maybe she’d get a chance to see Austin again after all. Greg, Win, and I started packing once we got back and went to bed at around 12:30. We’d be waking up at 3am to get ready for the flight back home.