Advice to Students on When to Start Your Company

I was listening to Dave Kellog and Thomas Otter’s most enjoyable The SaaS Product Power Breakfast podcast, this time about a VC-turned-entrepreneur (in his fourties), and it reminded me about advice that I give to my students. Heads-up: The funniest ageist comment by a student, ever.

Research has shown repeatedly that the biggest chances of success for a startup are with founders in the age range of 40-50 years. Thus, the rational thing for my students to do is to learn, in industry, well-paid, and start their companies in said age range, and for VCs to invest predominantly in companies with such founders.

Yet, there are all kinds of enticements for starting your company as early as possible. The Thiel Fellowship (of $100K) is for students who are willing to drop out of college for it, the startup school model pioneered by Y Combinator caters to young(er) people, and any self-respecting university these days has an incubator that tries to motivate students to start-up (rather than pair innovation with experienced industry people).

Why is this? I ask my students.

My own answer is that VCs are biased towards younger people, because the returns on investment have a much higher standard deviation (are much more likely to fail, but if they win, win much bigger). Of the GAFAM and BAT founders, none were significantly older than 30 years; many much younger. And many VCs like the bragging rights from having found the next Mark Zuckerberg.

There are other explanations possible, of course. The funniest answer to my question that I ever got came from one of my students:

Maybe VCs don’t like to fund fourty-year old entrepreneurs because they might die soon?

He said it with a straight face.

Open Source Software Engineering the Eclipse Way (Wayne Beaton, IEEE Computer Column)

I’m happy to report that the 15th article in the Open Source Expanded column of IEEE Computer has been published.

TitleOpen Source Software Engineering the Eclipse Way
Keywords
AuthorsWayne Beaton, The Eclipse Foundation
PublicationComputer vol. 54, no. 6 (June 2021), pp. 59-63

Abstract: This article explains how open source software development works at the Eclipse Foundation. It dives into engineering best practices, providing insights from one of the most successful open source foundations of today.

As always, the article is freely available (local copy).

Also, check out the full list of articles.

Podcast on Product Management and Commercial Open Source

Thomas Otter and Dave Kellogg of The SaaS Product Power Breakfast had me join their show and discuss product management, commercial open source, and cloud service strategies. It is out already as a podcast (local copy). Check it out and make sure to subscribe to their show!

Show notes

There were a couple of references in the show you might like to have the links to.

  1. The commercial open source course as taught at UC Santa Cruz, starting June 21st, 2021.
  2. Our Harvard business school type free teaching cases for product management.

If I missed a link, let me know, and I’ll add it.

The Future Resurgence of Copyleft

In 2009, half of open source code was licensed under the GPLv2 license, the canonical copyleft license. Every other license had less than 10% market share. Over the years, the MIT license and other permissive licenses kept climbing at the expense of the GPLv2. As of today, the MIT license is the leading license with more than 32% market share in absolute numbers, with the GPLv2 license having fallen below 20%.

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Open Source Project Licensing

In a well-working community open source project, many people contribute. In particular, software developers will submit code contributions. As a consequence, without further measures, the copyright in the project’s code will be widely shared among its contributors. 

To ensure that a project can be used without fear of violating someone’s intellectual property rights, all project artifacts, in particular the code, need to have a clear open source license, and ideally only one. 

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Open Source Explained (in German, without Jargon, in 1500 Words)

Open-Source-Software, im engeren Sinne, ist Computer-Software (Programme), die kostenfrei genutzt, modifiziert, und weitergegeben werden können. Bekannte Beispiele für Open-Source-Software sind das Linux Betriebssystem und der Firefox Web-Browser. Open Source im weiteren Sinne ist ein von Menschen getragenes Phänomen, das uns ungeahnte Möglichkeiten der weltweiten Zusammenarbeit sowie neue Geschäftsmodelle gegeben hat.

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