Dave Winer, in Scripting News: So you want to be an entrepreneur describes my own Silicon Valley experience, too,
I used to be a Silicon Valley entrepreneur.
Back in the day, you made a product, put it in a box, put the box through distribution, helped retailers sell it, got back a little money, paid your employees, and hoped there would be enough to make some more product, boxes, etc.
If you weren’t one of the BigCo’s the distributors would play games with your money. Eventually the games got so sophisticated, they had it worked out so you owed them more money than you made, so there was no way to get ahead. Unless you were one of the Big Ones. But even they hit the wall, and the software-in-a-box business went by the wayside.
A few people got rich from that. Yes, it was a bubble. What you got paid for was not your ability to make money. But, rather the ability of the VCs to sell Wall Street on whatever it is they sold them on back then. We were part of the whole system that eventually hit the wall with Credit Default Swaps and huge bailouts and unrepentant bankers. There was a trickle-down. The closer you were to someone who actually made something, the less you got paid. You read that right, the less you got paid. I’ll repeat it. If you made something you got paid less.
Please go read the rest.