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If Steve Jobs were starting out today he would struggle to get funding - he's a marketeer not an engineer

By | November 3, 2011, 1:45pm PDT

Summary: We need more people like Steve Jobs is a popular refrain but Silicon Valley VCs wouldn’t fund them — they want engineers and they disdain marketeers.

(From the PBS documentary, “Steve Jobs: One last thing.”)

I watched the PBS documentary on Steve Jobs last night,“One last thing” and it was well done, mixing a fair bit of the good, the bad, and the ugly about the life of the man.

And there was a lot of praise for the “marketing genius” of Steve Jobs.

Then it struck me: If Steve Jobs were starting out today in Silicon Valley, he would have trouble getting funding because he’s a marketeer — not an engineer. VCs generally won’t fund startups without a tech lead.

For example, Mark Suster, a popular VC blogger, writes on “Both Sides of the Table” that his ideal type of startup has mostly engineers, five out of six, and “dominance of tech personnel relative to others.”

Technology is not a product

Yet technology is not a product, as I like to remind people. Here’s Matthew Ingram, writing on GigaOM, Steve Jobs and why technology doesn’t matter:

Gates says he liked Jobs, but that the Apple CEO “never really understood much about technology.” The Microsoft billionaire no doubt saw that as a put-down, but looked at another way, it was one of Jobs’ biggest strengths.

But while Gates saying that Jobs “never really understood much about technology” was probably intended as a criticism, the truth is that in most cases the technology is the least important thing about Apple’s products, and probably wouldn’t appear anywhere on the list of the main reasons why devices like the iPod or the iPhone or the iPad are so appealing.

Someone like Gates, who spent his youth programming and was involved in much of the code behind things like Windows, would like to believe that superior technology wins — but for most users of both software and hardware, design is what wins.

Much has been said about the rarity of Steve jobs and how much Silicon Valley needs more people like him. But the fact remains, that if Steve Jobs were starting out today and were looking for funding — he’d have a very tough time because he is not an engineer.

Since when are apps startups?

A few of months ago I asked my friend, Paul Mooney, how a tech conference in New York turned out, and he said it was OK but added, “Since when are apps startups?”

This struck and stuck in my mind ever since because he was right. Since when does an app become a business? Surely a business is formed that creates and sells an app rather than the other way around?

Why should a couple or three engineers that have created an app now have to build a business? These are engineers not business builders. They know how to code apps. If they wanted to be business executives, surely they would have chosen that career?

Wouldn’t it be better to create a business formed by professionals, including an engineering component, but not make the engineers run the company? A Steve Jobs master marketeer as leader, with a couple of other experienced business professionals, and a couple or three engineers should make for a killer startup.

Not if you are in Silicon Valley. Engineers rule over all else — even reason it seems, that’s how strong the cult of the engineer is here.

Lord Sugar disdains engineers

Lord Alan Sugar is one of Europe’s leading entrepreneurs. He also stars in the UK version of The Apprentice. Earlier this year he had to choose between two apprentices, he chose to fire the one that was an engineer, saying, “I have never come across an engineer that can turn his hand to business.”

It was a cold comment, coming from a man who knows engineers very well. He was on the receiving end of a lot of criticism, and rightly so, because there are many examples of engineers founding great companies, Silicon Valley is full of them.

But that doesn’t mean that only engineers should lead companies.

Silicon Valley’s Achilles’ Heel

The cult of the engineer is a potential weakness for Silicon Valley. Why try to teach engineers about marketing, business strategies, PR, business alliances, etc, to retrain them for jobs for which there are plenty of experienced hands around?

But that’s what happens. Incubators such as the excellent Dave McClure’s 500 Startups, are essentially crash-course workshops that try to teach engineers about the business of being a startup, they are trying to turn engineers into marketeers in 60 days or less.

Why not let engineers stay engineers? They’d rather be coding than promoting on social media channels, figuring out design, and evaluating marketing strategies. Let the professionals, the Steve Jobs of this world, who are good at marketing lead the startups.

Surely that’s a better formula for success?

Silicon Valley startups have massive failure rates, less than 1 in 20 make it beyond a few years. Maybe it’s because they are invariably engineer-led.

We need more people like Steve Jobs but the irony is that even if we had them, Silicon Valley wouldn’t know what to do with them, and most VCs would ignore them.


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Topics

Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media.

Disclosure

Tom Foremski

Tom Foremski is the editor and publisher of Silicon Valley Watcher and Silicon Valley Watch. Tibco Software is an advertiser.

Biography

Tom Foremski

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.

Tom arrived in San Francisco in 1984, and has covered US technology markets for leading computer journals around the world.

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RE: If Steve Jobs were starting out today Silicon Valley VCs would reject him
DocuMentor (Doc) 8th Nov
Interesting analysis Tom, but Doc disagrees to some extent. Yes, Venture Capitalists tend to like engineer types, but lately Doc has seen several examples where marketing was considered equal to, if not more important than, engineering in young VC-backed firms. In fact, most VCs these days are thinking marketing right from the start since they???ve seen many interesting technologies die due to poor positioning and branding. Of course, there has to be solid product engineering and development to attract investment, but having a marketing edge might just be the difference that gets funding for one company over another. VCs back strong individuals, but these days they are looking for strong teams, which include those skilled in marketing, distribution, and other aspects of modern business.
http://www.zdnet.com/blog/doc
Steve Jobs had Wozniak. He did not create and grow in isolation. To look at Steve as the singular "guy" that created Apple and grew it is a mistake. Without all those amazing engineers (Wozniak being there at the start) Steve would have nothing to sell.
@Ididar: ... would not be possible.

However, Steven Jobs was engineer, he had over 330 patented inventions, many of which were engineering ones (mechanical engineering and software engineering, among others). He was also very much electronics guy since being kid -- long before meeting Wozniak.

Jobs could fix a TV by himself, and Jobs was making frequency counter, called Mr.Hewlett to get missing parts. Then he worked shortly at HP, and then at Atari as engineer -- he was qualified enough that Atari sent him alone to Europe to fix problems with the machines.

So Tom Foremski's headline about "marketeer" is a trolling. Marketeers do not reinvent hospital equipment while being on the deathbed as Jobs did.

Jobs was true inventor. Marketeer is Steven Ballmer -- as Jobs said, "saleman" -- remember his Windows 1.0 advertisement from 1985? "But there is more!!! There is calculator and clock!"
You obviously don't know how the patent system work if you think Jobs was the inventor of all those patents. He tended to take credit for what others invented and since he didn't write code or design circuit boards, his inventions were probably limited to design and user interface.
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well said
Linux Guru Advocate 3rd Nov
@DeRSSS
marketeers alone are only about hot air and buzz words....all hat no catle!
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So he did not lay out circuits on PCBs or actually write code. Do you really think that every single hardware engineer lays out circuits and every single software engineer writes code? Do you really think software engineering is simply sitting at a keyboard and hacking out code?
@Joseph B: As I wrote, among these patents were many with mechanical and software engineering, and others with some devices principles working. This is not PCB-type of work, that is more technical and does not usually requires patenting -- so Jobs was not interested in that (but, as I said, he could do electronics since childhood -- so if he had to, he would be able to do circuits).
@DeRSSS after years of staring at monochrome interfaces I found it a true delight to have a calculator and clock happy
As if Steve Jobs never tried to make the silliest things look like magic (maybe you should watch some videos on the presentation of the Apple II)
@Joseph B You should probably read up on your Apple history.
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@DeRSSS - I believe that Marketeers are simply expert manipulators. They know what to say how to say and when to say it, in order to persuade the thoughts of others. For this engineers desperately need the marketeers. But it might also be understood that engineers are manipulators too. They manipulate things in order to persuade an idea to come to life.

In the end marketeers and inventors are both experts and manipulators. I think their survival are dependent on each other's expertise.

As for Steve Jobs, he simply did a good job and had good people underneath him to support him.
While Steve Jobs was a genius marketer, you have it backwards still. Bill Gates was far more of a businessman than anyone else in the industry. He saw opportunities and knew how to deal business. That's how he secured the contract from IBM and started Microsoft. Steve Jobs was a poor businessman in comparison. To think that Engineers need need "business people" in a startup to be successful is totally false. A quick look at who the CEO's of the most successful companies in tech today will tell you that Engineers easily make very good businessmen, but not the other way around. Google, Facebook, Microsoft, etc were all founded by engineers.
Jobs had Woz do all the work for him. He wouldn't make it alone even then.
@Scrabbler Woz may have been the engineer genius, but Jobs was able to see the big picture.
@themarty
Noone argues with that. I am just saying that Apple startup *did* have a tech lead.
@themarty: Like what "big picture"? Can you tell me a single feature, an invention or a major product attribute that can be definitively and provably attributed to Steve Jobs, and to him alone? I can't.
@ff2 Steve Jobs has 313 patents to his name.
@ff2 Woz wanted to give away the plans for the Apple1 motherboard. Jobs convinced him to box it with a keyboard, make it usable, and sell it. That's the big picture.
@themarty

You would have to first invent the universe. Show me any invention that is the sole responsibility of a single mind with no outside influence. Just one.

Then re-read what you wrote and understand how odd it sounds.
@themarty the iPad shows small pictures only. I want 27" monitor... err?

grin
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No suit for you
Robert Hahn 3rd Nov
It could be worse. The VCs could want lawyers to lead the startups.
@Robert Hahn Like the Soup Nazi reference
If Steve Jobs started something today, he would be able to find the financing he needs. Maybe not a marketer, but Steve Jobs, yes.
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Jobs always had engineers...
dogbreath1 Updated - 3rd Nov
Great engineers. VCs would love him today. And Jobs was far more than a marketeer.
But that doesn't make him just a marketer.

Remember Next? How about Mac OSX?

He started with the customer experience and worked backwards to the technology, the opposite of Gates.

Who is having the last laugh?
@HollywoodDog - not me. If I leeched off of open source and charged an arm and two legs for it, after eliminating any sense of ethics, I would be laughing...
@HollywoodDog
"Who is having the last laugh?"

Bill Gates. Steve Jobs can't laugh, he is worm food.

Great article comparing the legacy of Gates vs Jobs:
http://blogs.hbr.org/cs/2011/11/idolize_bill_gates_not_steve_j.html

While I like my Apple products, there is no doubt in my mind that Gates is the better human. If having the last laugh is all about who has the biggest company when they die then Jobs gets his last laugh. If having the last laugh is all about who has contributed more to humanity, there is simply no contest, Gates wins.
@toddybottom

Bravo!, well stated
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@toddybottom

You might want to look toward Bill's wife. She deserves almost all the credit.
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Here, have some birth control
Robert Hahn 4th Nov
Yep, if it weren't for Gates funding all those eugenics programs in the Third World, we'd be up-to-here in little black and brown people. Yay Gates, I guess.
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We need marketers (ethical ones) AND engineers (regardless of age, but with a desire to learn HOW things work.)

If the system really has more to do with advancing human knowledge and ability than profit, then wages won't be an issue.
Engineer vs. business person is a false dichotomy. In technology, neither would get very far without the other.
Venture Capital doesn't require any salesmanship or marketing at all. Oh. Wait. It does. The fact is Jobs would have no problem at all getting funding because he would get Venture Capitalists totally excited about his ideas.
@baggins_z Not always. A good product can do the job.
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We think you're in over your head
Robert Hahn 4th Nov
A good product can do the jobOnly because the VCs know that once the engineer finishes the product, the VCs can roll him and replace him with someone who can sell it.
Yep, that's right, the salesman pitches the product to them.
Do you read the new book of Steven Jobs? He is an engineer at the youth. He learned MBA from many experiences people he met in his career path. He knew the thinking of the engineers and also the market of the products.
The problem for Steve Jobs would not be that he was a marketer, it would have been the VC's with their MBA's from prestigious universities would be very hesitant to invest in a college dropout with no senior role at a large company. I disagree with the premise VC's invest in engineers, the opposite is almost true, they believe it is lower risk having a CEO who already did it at a big company and only invest in engineers who already have a proven business.
Markkula famously told the Steves "you can't afford me" (he had retired rich from Intel stock), but he thought they had something worthwhile, so he worked with them anyway.
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Steve Jobs
quadnine 3rd Nov
I spotted this on the rememberingsteve page over at apple.com. ??I thought it was one of the better things I read there, because it expressed what allot of people seemed to be feeling. ??Hopefully it'll get some traction and inspire a few people besides myself.??

The heading was something like:

In Death He Created His Most Insanely Great Creation

_________________

I grew up with Steve and Apple. ??Some of my best childhood memories lie at the intersection of a best friend, Steve's creation(s), and myself. ??

Now that he's gone we worry a little about the things we may never see. ??It's painful. ??

But one of the cool things about Steve is his ability to inspire and create in everything. ??And in his passing he has created millions and millions of people who don't want to see a world without him. ??Out of those millions there are many feeling such intense emotion right now that it will deeply affect their souls for good. ??Even more, the thought of living in the absence of the incredibly different world they feel they've lost, is so painful, that it will actually drive and inspire them to make sure that the future ahead of us is not only as good as it could have been with Steve, but even more beautiful, more pure, more honest, and more inspiring.

It really hurts. ??But they want to see this world. ??Steve's loss will create thousands of these seeds in an intensely meaningful way. They'll do it because they want to live in a world even better than the one they think they've lost.??

They won't be digital clones, but they'll share his DNA. ??They'll evolve through it. ??And there are so many more of them now than there ever could have been had he been able to stay. ????

So thanks Steve! ??Thanks for this last(ing) new creation. ??It's a lovely gift. ??
Go to any business school - marketing students are a dime a dozen and very few of them will ever show a fraction of Jobs' brilliance. Now go to an engineering school and you'll find that a heck of a lot of the students can write something like Facebook in a weekend. What I'm saying is: great engineers are everywhere, and that's why VCs invest in them - they're a safe bet. Most marketers are marketers because they're too stupid to be anything else. So only the rare, great ones, like Jobs, get a look from VCs.
@pika_chu: I totally agree with this.

There's sometimes too much categorization going around in articles - written by *writers*. Obviously, you write, but would have otherwise have no time to write because you are busy running that big business you are writing about. People always want to find that magic combo to success. The fact is, beneath the success of Steve Jobs, there was also much failures. If a visionary engineer just leaves that marketeer to lead the business, you would have a much higher failure rate than the 1/20 in Silicon Valley today.
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To memory the greatest Genius
tradesteady 4th Nov
Over a million people from all over the world have shared their memories, thoughts, and feelings about Steve. One thing they all have in common ??? from personal friends to colleagues to owners of Apple products ??? is how they???ve been touched by his passion and creativity.

Now the only thing we could do is trying to remind the outstanding achievement he did, and memory him by buying a Steve Jobs Toy Figurine here, http://www.dealsteady.com/_p5535.html
or iPhone 4 case: http://www.dealmelody.com/_p5380.html
This is the thing I could do to miss him.
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...design is what wins.
TheFilipinoFlash 4th Nov
wha? so design is what wins huh? hmmm...
Engineers can make good businessmen, but that's not a given. For most engineers, keeping up with all of the changes in technology, learning new techniques, designing new algorthms, finding performance bottlenecks and looking for optimizations, let alone applying all of this to a business model. It's pretty consuming. Being good at all that and having a head for marketing a sales too? Well, that's just rare.
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(although I agree to some extent thoughts in the article, the premise is only for 'normal' people trying to start up, Jobs wasn't 'normal')

in nearly every market he focused on he conquered (even without the biggest market share he took a big chunk of the profits. Even Macs take 30% of the world's PC profits).

Jobs succeeded in computers, music players, music retailing (largest music retailer in the world), mobile, movies (Pixar, bought for 10 m sold to Disney for 7 billion), app sales, electronics retailing (apple stores, most profitable per square foot stores in the U.S) etc.

i.e he succeeded in electronics, entertainment, retailing industries..

apple computer: from garage to largest by market cap company in the world.

A VP will fund Jobs if he wanted to sell toothpicks.

(and the idea that Jobs didn't understand tech is moronic. Ever hear about an Apple engineer that got away with b.s ing Jobs? )
this is stupid, it's like trying to find the holy grail, life`s all about being at the right place at the right time. jobs was, like gates and many others who are still making good business. there`s not 1 all explaining theory. stupido.
Steve Jobs is not stupid. He would not get Vc funding without the pieces in place. Therefore, the article is assuming Jobs would enter a meeting unprepared to make a compelling business case. Jobs has always been one to find the golden keys. He embodies the very definition of "producer", and will assemble the cast, director and crew necessary to get the funding he would have needed.
Interesting analysis Tom, but Doc disagrees to some extent. Yes, Venture Capitalists tend to like engineer types, but lately Doc has seen several examples where marketing was considered equal to, if not more important than, engineering in young VC-backed firms. In fact, most VCs these days are thinking marketing right from the start since they???ve seen many interesting technologies die due to poor positioning and branding. Of course, there has to be solid product engineering and development to attract investment, but having a marketing edge might just be the difference that gets funding for one company over another. VCs back strong individuals, but these days they are looking for strong teams, which include those skilled in marketing, distribution, and other aspects of modern business.
http://www.zdnet.com/blog/doc

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