"Compounding the situation, large tech companies like Google Inc. and Facebook Inc. are tossing big salaries at the engineering talent pool."
The Dow Jones newsletter wrote " big salaries" but this in not very clear. And I don't understand why this "compounding the situation". Moreover, the word "tossing" is not a good choice to describe a working relationship.
"Now, it seems, VCs are moving up the food chain and are hiring would-be founders themselves"
Why are VC's hiring themselves rather than just fund the ideas ? I feel this trend will scareaway startups from approaching VC's because these VC's can always copy the ideas and implement it themselves.
I agree. Why would VCs hire engineers themselves. What assurance do they have that the ones they hire will come up with a winning idea? Unless they are hiring ones that are looking for capital themselves so rather than investing they are seeking ownership, this doesn't make sense. Even if they are seeking ownership, how many companies can they themselves own and monitor.
This is a confusing model and would for sure hinder other start ups.
Once arrived financial crisis, VCs have started to pay more and more attention to investments done especially in the sense of return of. At "bubble" time, VCs focus was quite limited to financial indicators just to monitor how things were going on, but right now to assure investment's success, they have changed strategy, really going through internal processes which rules the company at the stage of seeds or start-up. As consequence, imo, it came the need to extend the hiring footprint, moving from economic area to engineering area.
Adding technically talented peoples with VC is always good. Most of the startup companies are approaching VC with some sort of project details and feasible study reports. Before funding, VC’s has to make sure about such industrial growth and scope of such industries from different angle. Most of the VC’s has outsourced such case studies to technical consultancy, which is an added cost for them. IF VC’s are recruiting techies to their team, these techies can conduct such technical evaluation study, which are more reliable and trusted way.
In Europe I have not seen many VC firms buying up engineering talent. I can imagine the VC might look on this as a means of maximizing their chance of success by applying their own trusted resource to the acquisition's toughest problems (like a consultancy role). It could also mean that VCs simply want to use their cash to go it alone when no decent acquisition targets are available (like moving up the food chain). It seems like a reasonable plan provided the VC is flushed with cash.
This is an interesting article that shed light on a subject I wasn't aware of. It seems very odd that VC's are hiring engineers, but it makes some sense since they have money riding on the final outcome. I wonder how well their hiring is going. I know of some major companies around us, like Dow Chemical, Dow Corning and General Motors to name a few who are having trouble finding and hiring qualified engineers. Are these VC's seeking out engineers based on their qualifications and trying to steal them away? Or are they getting engineers right out of the job pool?
It would make sense if VCs are hiring engineers to help them sort through technical data and ensure they are making sound investment decisions. With that being said, they would need to hire seasoned engineers who's opinions they can trust and count on.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.