Headline November 22, 2016/ ''' SILICON VALLEY *SUNTAN* ''


SPEAKING OF MONEY CASCADING INTO  UBER  from abroad,  an investment arm of the Saudi government pumped   *$3.5 Billion*   into the company:

The Saudis apparently could not find promising tech companies in their own industry to invest in.

Alphabet, Google's parent, controls  12%  of all money spent globally on media advertising according to Adweek.  *No company has ever controlled 12 percent of  global ad spending!

And there's no question Google  is sucking serious money out of countries. In 2015,  Google got  54%  of its  $75 billion in revenue from overseas.

In the macro picture, tech is one of the few economic sectors  growing in any meaningful way anywhere in the world.
Mary Meeker's stats shows the global growth of gross domestic product has been below average for six of the past eight years.

So if global growth is stagnant and the technology is hot, that meant most other segments are really crappy. 
Since most of the money being made in technology is by companies based in Silicon Valley-

*It seems that it is  driving a lot of the world's economic dynamism   -and most of the world is paying  Silicon Valley for it*.

On the campaign trail in the recent elections, President Trump kept saying that America is losing. But He's wrong.

*America is clearly winning in technology big time*.

The problem is that a lot of America is not Silicon Valley, which is but a short stretch from  San Francisco to San Jose. 
Even within the United States, Silicon Valley is playing Rome, and the rest of us could wind up like Judea.

Geography is Destiny! 
We have two Americas now:  *Atoms America and Bits America*. 
Atoms America is manufacturing, retail, services, restaurants,   -old school business you can see and touch.  

*And Atoms is in trouble*.

In May, job growth in the U.S. was the slowest in more than five years, according to federal data.
Some  *10,000  manufacturing jobs disappeared*. For years now, middle-class wages have stagnated.

A vast swath of people are seeing their jobs automated away by software. Trump's supporters told pollsters they feel resentful and powerless.
*Voting for Trump is fighting back*.

On the other  side of the  Divide  is  Bits America. These are the people who write code, analyze data, sell apps, invest in startups.

The top talent in Bits America entertain bidding wars for their services. There are pockets of  Bits America all over the country, and high concentration in places such as  Boston, New York, Washington, D.C. and Seattle  -each home to significant tech companies.

Still, nothing in the  Bits Universe rivals  Silicon Valley  land of peach fuzz billionaires, rocketing housing prices ad highways filled with Teslas, with *Stanford University operating like the region's power plant for talent*.

More money gets invested in more companies there. In the first quarter of this year, California companies.   

Almost all in Silicon Valley  -got $396 million in  venture funding , nearly three times more than the second-place New York [ $149 million] and  -Four times more than the  third-place Massachusetts [$90 million].

And wealth created in  Silicon Valley tends to stay home. Even when the companies go public, it's not making people rich across the country. 

Look at the top 40 owners of Facebook stock. Almost all of them live in Silicon Valley. [Thiel, No 7, owns  2.5 percent, worth more than $2 billion].

When smart people from all over the world want to build a technology company, they go to Silicon Valley. 

The Collison brothers grew up in a small village in Ireland. Clearly brilliant, Patrick Collison left Ireland to go to  MIT, and John Collison attended Harvard University.

In 2010, the brothers started  digital payments company *Stripe*  and in 2011 got $2 million in funding from three  Silicon valley venture investors: Sequoia Capital, Andreessen Horowitz and...Thiel.

Stripe is now worth more than $5 billion. It's not based in Ireland or Boston. It's in San Francisco.

Silicon Valley's momentum is not slowing. 

I talk to a lot of Bay Area Investors, states the research author. Ten or 15 years ago, they were flying to  China and India, looking for promising investments, and some set up branches around the U.S. 

Now the attitude of many is they don't need to go  beyond a  50 mile-circle around Palo Alto. 

*Most of the talent of any consequence is there already or will go there*.     

The Honour and Serving of this  Great Operational Research continues. Thank Ya all for reading and sharing forward. And see you on the following one.

With respectful dedication to all the Venture Capitalists the world over, Students, Professors and Teachers of the world. 
See Ya all on !WOW!  -the World Students Society and  Twitter-!E-WOW!  -the Ecosystem 2011:

'''Take IT All Apart'''

Good Night and God Bless

SAM Daily Times - the Voice of the Voiceless


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