Sequoia Confirms Existence of “Stealth” Scout Program. Who’s Next?

robber-303444On May 4 of 2012 Pando reports:

The structure isn’t exactly like a standard limited partner arrangement, because the bulk of the returns go to the scout, not the firm. Exactly what benefit Sequoia gets out of it remains unclear. I asked all three scouts if their deals would have likely pitched Sequoia eventually anyway, and most of them said yes. Sequoia doesn’t get any warrants or right of first refusal or equity in the company.

It’s been over 3 years since this was report. I’m amazed most entrepreneurs don’t know this.


All your IP are belong to us.

Sometimes it takes a bad meme to explain the obvious, and sometimes that meme is correct.1

In 2013, I was working in a robotics factory in Santa Clara California – right in the heart of Silicon Valley. I had the good fortune to talk to several of the Tesla engineers about overseas manufacturing. There message was simple and blunt. “If you are in China do not even mention IP (Intellectual Property), or the next day you’ll see it on the streets being sold.”

Yesterday, while looking through I ran across an interesting article, entitled Reverse-Engineering a Superior Chinese Product. To say the least, I was intrigued because most Chinese Products are cheap copies or clones. But just like the Japanese have learned to increase quailty to increase sales, I expect the Chinese to do the same. In the article, American engineers reverse engineer a $12 Chinese phone (sold only in China).

Here is a blurb from that hackaday article (Jan 1, 2105):

[Bunnie] has dubbed the phenomenon “Gongkai”, a type of institutionalized, collaborative, infringementesque knowledge-exchange that occupies an IP equivalent of bartering. Not quite open source, not quite proprietary. Legally, this sharing is only grey-market on paper, but widespread and quasi-accepted in practice — even among the rights holders.

That article links to a blog post from bunnie. Here is a short blurb — to encourage you to read it.

Gongkai is more a reference to the fact that copyrighted documents, sometimes labeled “confidential” and “proprietary”, are made known to the public and shared overtly, but not necessarily according to the letter of the law. However, this copying isn’t a one-way flow of value, as it would be in the case of copied movies or music. Rather, these documents are the knowledge base needed to build a phone using the copyright owner’s chips, and as such, this sharing of documents helps to promote the sales of their chips. There is ultimately, if you will, a quid-pro-quo between the copyright holders and the copiers.

NOTE: After the eighth paragraph Bunnie breaks in to some technical discussion. It is intended for person reading Hackaday, not entreprenuers. However, beyond that some of the article is interesting, such as the prediction he cites by a former MIT professor.

Other parts are comical, such as the section entilted Reversing the Boot Structure

Other parts have real implications, such as the second paragraph of Booting an OS

The video is also extremely interesting. I recommend watching the first 15 minutes and the last 15 minutes.



1. All your base are belong to us

Where have I been?

The "Prickly Pear" is a favorite of my Mother. It is fruit for this part of the world

The “Prickly Pear” is a favorite of my Mother. It is fruit for this part of the world

Today is the first day in months I had a chance to write. My last real post was about two months ago. Around that time my mother had receive her bankruptcy settlement.

To give you some detail, late in 2008 – during the housing implosion – one of the rental properties my parents own was going in the “higher percentage rate”; previously known as “balloon payments”. The consequence was a court fight between the parties that own the property. That in turn lead to bankruptcy. To say the least, it was stupid – real stupid. At this point, my mother has lost her house of 30+ years, two crappy rentals remain – that the bank refused to take in bankruptcy, but still wants it’s money. And we are living in El Paso, Texas.


Click on the image to find out more about the factories that border both countries.

In the meantime, I have come to find out that El Paso (and it’s twin city across the border – Ciudad Juárez) is the 22nd largest metropolitan area in the United States; and it is the third fastest-growing metropolitan area. It has an International Airport and three (3) Border crossing. The factories across the border, known as Maquiladoras, provide one of the largest economic bases in the area, second only to “West Texas Crude“. In short, El Paso, despite it’s relatively average income, is very profitable area of the US. In addition, it is one of the earliest North American possession for Spain. – Top 100 Crowdfunded things

Lately, crowdfunding platforms like kickstarter, indiegogo, & others have been taking up headlines in the tech industry. They have become a source of democratization of our economy. However, someday people will contend the illuminati are behind it all. In either case, the links below work as pointers to its previous success.

How The Top 100 Crowdfunded Companies Raised Major Money

Top 100 Crowdfunded Companies

published November 2013

4 Famous Crowdfunding Fails

posted October 24, 2013

  1. New York City Opera – Kickstarter – $1M/$303K
  2. Ubuntu Edge Phone – Indiegogo – $32M/12.8M
  3. Melissa Joan Hart’s Romantic Comedy – Kickstarter – $2M/$51K
  4. Zosia Mamet’s Music Video – Kickstarter – $32K/$2.7K

Topic: Top 100 Crowdfunded Companies