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View Diary: Overnight News Digest Nov 3 (35 comments)

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  •  Maybe not internet startups in general... (6+ / 0-)

    but I could see a parallel between startups founded by people with established reputations/records of success.

    The "traitorous eight" were basically considered the best & brightest in the field before leaving Shockley, and it was that reputation (and the burgeoning space program, with its billions of contract dollars) which enabled them to get the financing to start Fairchild.

    Their success at Shockley is what then enabled Noyce and Moore to start Intel, and take it in the direction they did.

    •  Errr... (6+ / 0-)

      In the last sentence I meant their success at Fairchild... not Shockley.

      Their problem with Fairchild was that the original funding deal gave Fairchild Camera & Instrument (the parent) the right to acquire the Semiconductor division in full if it became profitable (which it quickly did). Each of the "traitorous eight" received $300,000 (approx $2 million in today' value).

      Unfortunately, Semiconductor was Fairchild's only profitable division, and the profits were used to prop up the rest of company, rather than to reinvest in new technology.

      As a result, Semiconductor started to fall behind Texas Instruments, their main competitor/biggest fish in the pond at the time.

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