Silicon Valley Insights: A Journey Beyond Perspective

Being confined to one's familiar environment can significantly limit one's perspective. That's why every journey, especially to a place as dynamic as Silicon Valley, offers a wealth of new observations and profound insights. These aren't just snapshots of the Valley itself; they are the distilled wisdom from meaningful exchanges and deep reflections, evolving beyond simple travelogues into a true exploration of the future.

The original Chinese version of this article was published on October 15, 2015, and can be found here.

1. Silicon Valley: A World-Class Business Playground

Silicon Valley is undeniably a world-class platform for commercial endeavors, equipped with an optimal density of resources essential for any entrepreneurial venture.

It's fascinating to observe the entrepreneurial landscape here. While one might initially hope to invest in "pure-bred American" founders, it's often surprising and inspiring to find that many entrepreneurs hail from all corners of the globe – Spain, Mexico, Brazil, Austria, Germany, Scotland, India, China, Korea, Japan, Singapore, and beyond. I'm not referring to individuals raised in the U.S., Chinese-American citizens, or even international graduates from prestigious institutions like Stanford or UC Berkeley. I'm talking about newcomers who have just landed in Silicon Valley with their projects, teams, and sometimes even their families, having arrived just a week prior.

Upon closer engagement, it becomes clear that these freshly arrived "cowboys" are exceptionally skilled. They might be:

• Top-tier hackers
• Valedictorians from elite universities
• Pioneers of Bitcoin mining in their home countries
• Successful entrepreneurs ready to restart in the U.S. with a dream for global reach

This influx of talent mirrors the historical American Gold Rush, drawing restless individuals who dare to challenge norms. Perhaps there's an intrinsic allure to California that continuously attracts these visionary "cowboys." While Silicon Valley's origins are rooted in semiconductor innovation – famously beginning with Fairchild Semiconductor – its magic today lies firmly in software.

Software has become the foundation of all modern innovation. Even in the semiconductor industry, core competitiveness now hinges on software prowess. The very essence of smart hardware, big data, and the Internet of Things (IoT) is also software. It's often said that hardware without exceptional software is merely junk. Marc Andreessen, co-founder of the influential VC firm A16Z, famously declared: "Software is eating the world."

So, why do "cowboys" from across the globe flock to Silicon Valley? Because they share a world-class dream. Silicon Valley provides an unparalleled ecosystem:

• The most renowned venture capital
• An unmatched concentration of talent
• A mature financial system
• A robust legal framework
• Inspiring success stories
• Sensitive tech media
• Most importantly, a culture of innovation with a high tolerance for failure

If your ambition is truly global, where else is more fitting than Silicon Valley? It's not necessarily where new technologies are invented, but rather where the commercialization of the world's newest technologies has the highest success rate. This is because Silicon Valley functions as a platform that provides every element for world-class business success. If you possess a global vision and ambition, bring your dreams here. It's the ultimate testing ground for those "cowboys" audacious enough to believe they can change the world. On this platform, every action, even failure, is pursued on a world-class scale.

This insight underscores the importance of the platform.

2. Systemic Innovation is Fundamental: Talent, Technology, Market, and Capital are All Products of the System

Despite being one of the youngest nations, the United States rapidly developed into the world's most advanced and innovative country, alongside Israel. The success of the U.S. can be attributed to numerous factors, not least its Constitution, which established a nation rooted in freedom and a federation of states unified by belief and contract. The U.S. might not be the most democratic nation, but it is a well-governed democracy that also shoulders the immense responsibility of defending democracy globally.

The historical success of the U.S. suggests that its founders possessed extraordinary wisdom, vision, and virtue.

Reflecting on my 12-year departure from Huawei, I now deeply understand the original intentions behind Ren Zhengfei's promotion of the "Huawei Basic Law." I suspect Ren was inspired by the successful U.S. system. I firmly believe that any world-class company must forge its own "corporate constitution."

Silicon Valley's success is also partly due to the stock options system, pioneered by companies like Fairchild Semiconductor. This system, which allowed employees to share in the company's equity, was instrumental in fostering decades of entrepreneurial and investment growth, particularly within the Valley.

The cautionary tale of Wang Laboratories serves as a stark reminder of the dangers of concentrated stock ownership without proper succession planning. Dr. An Wang's decision to pass leadership to his son led to the departure of key talent, including John Chambers, who subsequently joined Cisco and greatly contributed to its phenomenal success.

This realization highlights the paramount importance of systems and structures in organizations.

3. The "Big Picture": When Politics Becomes Business

As a child, my concerns were far from politics; my focus was on entertainment. During college, business captivated me more than politics. Even when I started working, my interests revolved around Silicon Valley and technology. Initially, as an angel investor, politics remained off my radar; I was absorbed in entrepreneurship and the economy. Now, at 36, after five years of investing, with 3 billion invested and over 200 projects funded, and a new fund reaching 300 million RMB, I've begun to pay serious attention to politics.

Zeng Guofan, the renowned Qing Dynasty statesman, once said that those who aspire to achieve great things must first understand the "big picture." This "big picture" fundamentally comprises three essential elements:

1. Vision
2. Rules
3. Choices

Studying history and engaging with politics is an excellent way to cultivate this crucial "big picture" mindset. The discussions around agreements like the TPP (Trans-Pacific Partnership) are prime examples worth studying. Even if you start with a limited view, persistent research can significantly enhance your understanding of global dynamics and national strategies. This broadened perspective is invaluable for discerning the major directions in business and making savvy, informed decisions.

Ultimately, the big picture determines the outcome!

This insight underscores the importance of understanding the big picture.

4. The Power of Systematic Strategic Thinking and Continuous Innovation

Consider this compelling mathematical reality: if your business grows its monthly sales profit by 20%, after just 12 months, that profit could increase by 7.43 times. All true greatness is the accumulation of tiny, consistent changes that eventually lead to a monumental transformation. Every successful leader understands the profound importance of small, consistent steps in achieving a grand journey.

Innovation demands diligence. Small, daily improvements, when sustained over a year, can result in exponential growth. The concept is straightforward, yet few truly succeed. Why is that? It's not merely about persistence.

Many entrepreneurs work tirelessly and persevere, but after ten years, some have soared to incredible heights while others remain stagnant. What accounts for this stark difference? As mentioned earlier, platforms, systems, and mindsets can cause significant disparities over time. But why do some entrepreneurs expand their reach, improve their systems, and grow their platforms from the same starting line?

It's not just luck or the help of influential people.

The key lies in the fact that many entrepreneurs lack systematic thinking and deep reflection to develop robust theories that can guide their future growth. Most begin their entrepreneurial journey like "headless flies," buzzing around aimlessly. Some may stumble upon success by chance, but many others may not be so lucky.

Silicon Valley, being a premier talent hub, is replete with success stories. Experienced and successful entrepreneurs actively guide the new generation through advising, board memberships, incubators, and direct investments. This supportive environment makes it significantly easier for new entrepreneurs to receive mentorship and grow rapidly, leveraging the dense concentration of capital and talent. This synergy often leads to exponential global growth. It's no coincidence that Silicon Valley has produced young, transformative leaders like Facebook's founder. Looking back at history, those who achieved greatness often started as ordinary individuals.

Throughout life, we encounter mentors. But without systematic reflection and thoughtful processing, growth will inevitably be stunted. Consistent, reflective thought and its deliberate application can lead to joyful and continuous progress in life's marathon. Interestingly, people who genuinely think and reflect tend to attract mentors; it's not by chance but by design.

Mentors prefer to help those who are thoughtful, quick to understand, and quick to progress – in essence, the teachable ones.

This realization highlights the importance of thought.

5. Why We Live, and How to Spend Our Lives: A Quantum Perspective

During my time in Silicon Valley, I found myself pondering deep existential questions: Why do I push myself so hard? Why do I force myself to wake up at 6 am for morning reads and work grueling 16-hour days? I could easily lead a more relaxed life in Shanghai, enjoying simple pleasures and family happiness. So, why this relentless drive?

After much introspection, I've arrived at a conclusion I believe is worth sharing:

I strive to climb higher to see farther, to gain a greater sense of participation on a larger platform, and to leave a substantial, meaningful mark on the brief history of humanity that I am a part of.

So, why do we live? Most people choose to spend their lives on what they perceive as "beautiful" endeavors. However, what the creator intended for us – what's "valuable" or "beautiful," "right" or "wrong" – isn't always clear-cut.

I'm drawn to quantum mechanics for its defiance of "classical physics," which reinforces my belief that there isn't a strict script for our lives. I reject the idea that everything is predestined and wholeheartedly believe that "everything happens for the best" (an acceptance of the past). What's done cannot be changed, which I fully accept, but the future holds infinite possibilities we can actively influence and shape.

In America, there's a prevalent discourse around democracy, freedom, human rights, and individualism. If these concepts are inherently "correct," why didn't the creator establish them from the very beginning? Why have so many tragedies occurred throughout history? Perhaps, in the creator's eyes, there is no absolute good or bad, right or wrong, good or evil, much like the virtual characters we create in a computer game.

Perhaps humanity is simply an experiment by the creator, who observes silently from outside the system. Each of us is a minor variable in this vast system, seemingly insignificant, yet together, our collective actions determine the world's direction – each one of us a domino's starting point.

This world, in essence, feels empty and illusory, where each of us is a piece of code running in the creator's "computer" system. Our souls and bodies are parts of this code; when we die, the body's code decays within the system, while the soul's code is archived, never to be activated again. Hence, the potent Silicon Valley mantra: You Only Live Once (YOLO). Even as a piece of code, we only run once. So, life is about changing the world, even if that world is originally virtual. Who knows? Maybe those who've maximized their potential get "copied and pasted" by the creator into another, more advanced virtual world after death.

This insight speaks profoundly to the importance of living.

About the Author:

Leo Wang Entrepreneurship, Investment, Cultivation Founder of PreAngel Fund