The opposite of Goldman Sachs is … Silicon Valley? | VentureBeat

With Greg Smith’s scathing goodbye to Goldman Sachs at the top of world headlines, the world’s trust in Wall Street continues to crumble. But if there is something very amiss in the culture of the world’s most powerful financial institutions, what can leaders rely on to build a brighter future for the world economy?

Victor’s recent op-ed in VentureBeat explores many of these questions…and poses a few answers.

In the wake of Greg Smith’s now-legendary resignation in The New York Times, worldwide scrutiny has naturally focused on Goldman Sachs. How will his assault on the bank’s culture impact its clients and its leadership? Is his description of the firm fair? However, these are merely superficial questions. The true implications are far broader and affect the prospects for economic growth across America and the world.

Smith’s accusation — that “the interests of the client continue to be sidelined in the way the firm operates and thinks about making money” — is not novel to Wall Street. It has already been 25 years since Gordon Gekko uttered the iconic phrase “greed … is good.”

via The opposite of Goldman Sachs is … Silicon Valley? | VentureBeat.

One Comment on “The opposite of Goldman Sachs is … Silicon Valley? | VentureBeat”

  1. Goldman and Wall Street is not as evil nor Silicon Valley as good, altruistic and benign as you portray. Such narratives are popular and get good coverage now, but are only the tip of the truth, which requires a more nuanced analysis.

    Innovation is driven in part by the innovators need to change the world, in part by the creative impulse of the innovators and in part by their greed. Each is motivated by a different mix and at times by a changing mix of those drivers.

    Most of the funding for innovation (enabling it to be more than a laboratory curiosity) is driven by greed. There are few philanthropic investors in for-profit start ups. It is that greed driven funding that enables the commercialization of innovation.

    One of the more insightful observers of the Valley has pointed out that only the top quartile of VC firms deliver adequate returns for investors and only that quartile are safe to deal with; the bottom three quarters resort to various dubious and predatory practices in the desire to get into the top quartile and raise their next fund. Sounds allot like Wall Street doesn’t it?

    Disclosure: I worked at top tier investment banks in private finance for 15 years (including time at Goldman Sachs), seven years at an emerging markets private equity firm with major funding from developmental finance institutions (including the World Bank) and over the past ten years have been part of invested in, advised or been part of the executive team for 25 start ups.

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