Sunday, October 27, 2013

Obama, VC wannabe, has a desk waiting for him at KPCB.

Until recently I thought it was a slam dunk that President Obama would join the venture capital firm Kleiner, Perkins, Caufield, and Byers after he left office.

After all, his Democratic buddy Al Gore is already there. Mr Obama is obviously a VC wannabe. He's always talking about "investment." And there can be no doubt that he is adept at spending enormous sums of money to promote "technology" and "innovation."

As soon as he was elected in 2008, the website of the Office of the President-Elect published Mr Obama's "technology agenda" (apparently, a contractor other than CGI developed this website because you can actually access it). The agenda proclaims Mr Obama's grandiose vision:

    Barack Obama and Joe Biden understand the immense transformative power of technology and innovation and how they can improve the lives of Americans. They will ... employ technology to solve our nation's most pressing problems -- including improving clean energy, healthcare costs, and public safety.

But, it's not exactly clear now where KPCB will put Mr Obama.

Obviously, Al Gore is keeping a seat warm for the President on the Greentech Team, but rumor has it that other members of the team are having second thoughts about the President joining them given the spectacular failure of his bets on companies like Solyndra and A123.

The Digital Team also seemed like a good fit for the President, but the monumental catastrophe of the rollout of the healthcare.gov website has made it apparent that the President has little talent for putting together a first rate software venture.

But I jest. A while back I wrote a post that dealt with the question of what the blueprint for the ideal software company in the age of entitlements might be:

    As an entrepreneurially inclined software engineer (over the last two decades I have worked for 3 Silicon Valley enterpise software startups that have gone on to successful IPO’s), I have been asking myself lately the following question: What is the blueprint for the ideal enterprise software company in the age of entitlements? In attempting to answer that question, I have assumed that government spending on entitlement programs will only continue to expand (that is, more and more programs will make more and more transfer payments to an ever-increasing army of Julias). So, the problem becomes one of imagining a company that can best profit from the expansion of these entitlement programs.

Is it possible to imagine anyone with more experience in the area of entitlement programs or with a better grasp of how venture capitalists might create companies that can harvest the monies that flow through these programs than Mr Obama?

Yes, there is a corner office awaiting Ex-President Obama on Sand Hill Road. But, his presence at KPCB will just be one more sign that the old, rebellious, counter-culture-based Silicon Valley is dead, and has been reborn as the handmaiden of big government.

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