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The First $20 Million Is
A Silicon Valley Exclusive
By Po Bronson
TINY CURTIS REESE wasn't too shabby with networks. Salman Fard would try not to bungle the hardware. Darrell Lincoln would write applications small enough to download quicky over the network. Andy Caspar, the team leader on the VWPC Project, would try not to ride them too hard. He called his team together at the Peninsula Creamery. The Peninsula Creamery was not one of those chichi diners where all the waitresses were young artists and the specialty of the menu was a $22 flaming cabbage, though there was an oyster bar across the street that catered to that crowd--a crowd that at lunch was composed mostly of software salesmen schmoozing purchasing agents. Through the Creamery's big plate-glass window, the guys could see them at their sidewalk tables, wearing prescription sunglasses and tossing back shots of French water, sans gas. The Creamery was the ironmen's type of place. Practical. Beside every booth was a chrome coat rack. All the forks were the same size and had the same number of tines, four. Nobody came around scraping crumbs off the tabletop while you were eating. They didn't play music in the bathrooms, and nobody had ever paid attention to the lighting, except to make sure there was some.
Andy Caspar laid down only two rules for his team to live by. First, the VWPC had to be built so it could sell in stores for $300. There was nothing magical about that figure, $300, no technological reason for sticking to that price. But conventional wisdom suggested that for a consumer item to reach a critical mass of homes (as the team hoped for their box), it couldn't cost more than other home appliances--TVs, microwaves, refrigerators, stereos. Several video game consoles had been introduced the previous year, and the two consoles priced around $400 were poor sellers, despite offering superior technology. Darrell Lincoln was a huge video game fan, and when anyone questioned Andy's $300 Rule, Darrell quickly piped in with an anecdote about the graveyard of discontinued devices.
Andy's second rule was that the hardware for the VWPC had to be chosen from parts already available for sale--there was not enough money in the project's budget to manufacture and test original chips.
"This is hopeless," Salman said, rubbing his temples. "There's no way this can be done."
"Stop thinking about the big picture!" Andy said. "Just work on one part at a time."
"If I tell myself to stop thinking about the big picture, then that's still a way of thinking about it."
"Resist it."
"I can't help it."
So Andy broke it down farther. "All right, Salman. Fuck the weekly plan. You've got until nine o'clock tonight to figure out what our options are for central processors."
Salman said, "Or else what?"
"What do you mean, 'or else what?' You've got to get it done by tonight, that's it."
"That's not how you do it. You have to threaten the stick. You know, the carrot and the stick. What's the stick?"
"You wanta be the team leader?" Andy asked.
"Jeez, I'm just telling you how it's done," Salman said.
"I never figured I was going to have to hold your fucking hand on a daily basis."
"You don't have to hold my hand. Just give me the carrot and the stick, that's all."
Andy was getting irritated. "If you don't get it done by nine, then you have to spend the night here until you do get it done, how's that?"
Salman shook his head. "Not enough. I'm already figuring on spending two nights a week here, minimum."
Andy went into the john to think about it for a minute, and then he came back with a plan. He made Salman go over to the pay phone and call his girlfriend and tell her to meet him for dinner at MacArthur Park at 8:30. Andy stood by Salman's side while he made the call. It was very uncomfortable for Salman because Andy overheard how his voice softened when he talked to his sweetie-pie.
"Boy, she's gonna be pissed if I'm late," Salman said when he got off the phone.
"That's what I'm counting on," Andy said.
A Q&A with the $20 million man, plus web links.
HANK MENZINGER HAD A BROAD back and a thick gut, a symbol his ironmen interpreted as greatness of character rather than weakness for sweets. He had broad flat lips and long wiry hair that had once been red and a grin that made other men in its presence feel less alive. Hank Menzinger had taken over many a cocktail party with his sheer magnanimity. Students flocked to work for him. Reporters loved him. Companies gave him money. Hank Menzinger had once been an engineer, a good one, and had worked at Fairchild Semiconductor in the '60s, when that meant something. But at some point along the road Hank realized that his greatest gift had not been the power of his brain but the power of his personality. And that was nothing to be ashamed of, particularly if he applied his energy to the same goal he'd been applying his mind to--jolting society out of its infinite loop!
Lloyd Acheson was the president of La Honda's Board of Regents, partly because he was also the CEO of Omega Logic, which was one of La Honda's biggest sponsors. Lloyd had carefully coiffed long blondish hair--the kind of color pinewood is when they call it blond, which isn't much color at all. The gray hair expected from a man of his age wasn't peppered in; instead, it had taken over its own separate but equal patch above one temple, coming down in a swoop. He wore a gray suit but Rockport shoes, made for walking. He had tiny little crimp marks around the eyes, rather than deep creases. He didn't carry any extra weight. All this casualness and vibrancy was betrayed by a slightly pained expression on his face, as if someone had just described to him a gruesome medical procedure involving long needles.
Lloyd Acheson didn't pay many surprise visits to La Honda. When he poked his head into Hank's office, Hank said, "Surprise visits scare me."
"What is it with you engineers?" Lloyd said playfully. "The most impatient breed of people I ever met ...You're all like children of alcoholics, terrible fear of the unknown. You hate not knowing what's going to be said."
Hank had long ago gotten used to Lloyd's capacity to outmaneuver him in an argument, and Hank had learned not to feel inferior about it. He just wished Lloyd didn't have to do it every goddamn time they met.
Hank wanted to get to the point. So he said, "Well, I've got a meeting downstairs. So if that's all ..."
"All right. Sit back down there, cowboy. I'll get to the point. I got your budget memo." The board had to review and approve a final budget before July 1. "I saw a line item, 'VWPC.' Unsponsored. Went looking for the description, found it in some old project lists."
"And?"
"Hank, are you outta your mind? A $300 computer!"
"Not sure it can be done, myself, but what the hell do I know?"
"Are we on the same page, Hank? It goes against everything we're about. It's an exercise in economics, not a science project."
"What, do you think I'm looking forward to having to find a sponsor for it? But ... it's the way this place works, huh? It's their project."
"Hank."
"What?"
"Let's say they design this thing, and people hear about it. What's that going to do to the reputation of La Honda, huh? It's a piece of plastic, Hank. When people think La Honda, they think big iron, not plastic. La Honda designs the computers that keep the margins high in our business. I have to say, Hank, from the point of view of one sponsor--I'm wearing my Omega cap now, not my La Honda cap--from my point of view, I don't like it when I hear you're going to build a product that would undercut my business. I don't like it at all."
A third voice interrupted them. "Ahhh, the dreaded Omega cap."
Francis Benoit was standing in the doorway, which had been left open. It was unclear how much he'd heard. Francis Benoit was La Honda's chief engineer and a strict advocate of keeping sponsors at a distance. He was never comfortable with the fact that Lloyd Acheson was both a sponsor and president of the board. "Lloyd, you give us money to design your chips. You're happy so long as you get your chip. Sponsors don't give a fuck about what else we're up to."
"Don't be naive, Francis."
"What's the big deal?"
"We've got that reporter snooping around here." The reporter was from the San Jose Mercury News, and she'd been invited to chronicle Francis Benoit's design of the 686 chip for Omega Logic. "Pretty soon she's going to include the project in her column. Now how do you think that's going to make me look? I'll be sitting in some congressman's office in Washington with the heads of LSI and Motorola, and we'll be arguing how we need Asian import tariffs relaxed, when in will walk some staffer with this article that suggests that of all people, Lloyd Acheson is the person trying to turn this industry over to the Japanese mass producers. And the guy from Motorola and the guy from LSI will look at me with a face like 'What the hell are you thinking? You're gonna kill the golden goose.' "
Francis countered, "Have you been smoking dope?"
"What? Huh? What do you mean?"
"You heard me. Have you been smoking dope?"
"No--why? What--?"
"Because you're paranoid, man. All that stuff about sponsors drying up, it's not going to happen just because a few engineers have a go at some garage tinkering. You can't just yank the team off the VWPC. Christ, the rest of the ironmen will revolt when they hear about it."
"Well, that's our problem, when you get right down to it."
Francis added, "This isn't some programming division at Omega. You can't just march in here and order people around."
This got Lloyd mad. "I'm not ordering anybody around! Who said I was ordering anybody around? I came in here today to talk about a solution. Talk it over with Hank here."
The two men were quiet for a moment, staring at each other. Hank took the chance to jump in. "I'm going to go talk to them."
ANDY CASPAR DID NOT STAY at the La Honda Research Center that afternoon. He had never left the center during daylight before, but there was some beer in his refrigerator at home. Beer would not remedy his disappointment, but beer might help him swallow it.
He drove home on 280. If you ever designed a freeway to be a serene place to think, 280 is what you'd come up with. The 280 freeway doesn't have eight lanes squeezed into room for five, it doesn't have billboards, it isn't lined with hotels, and it doesn't have a gas station at every exit. People don't shoot each other while driving along it. It didn't flood during rainstorms or crack during earthquakes and fall onto the streets below. There are no streets below. The only businesses off the side of the road are golf courses.
Andy lived half a mile from the Stanford campus, in an upstairs bedroom above an old lady who got mad and threatened to kick him out if he made too much noise. The house was ancient and it creaked; sometimes just walking around was considered too much noise.
There were two upstairs bedrooms, each with their own separate entrance behind the house, but they had no kitchen. Andy had rigged a kitchenette out of a closet, with a half-height refrigerator and a chrome toaster oven and a single-coil hot plate. There were fig and crabapple trees outside his window. He shared a bathroom and a short hallway with a woman who lived in the other bedroom, Alisa, a graduate student in industrial design. On her desk--which he could see through the window as he went up and down the stairs--she always had some contraption made from popsicle sticks or styrofoam. As he came up the stairs on this afternoon, he saw her face through the crack in the shade. Her hands were busy. She smiled. She was wearing a paisley-print orange handkerchief over her hair to keep it from dangling in her hazel eyes. He put his hand up to wave hello. He wanted to say something to her, to knock on her door and tell her his problems, but she had some music going lightly and seemed occupied with her project.
Andy sat in his room, drinking a big 22-ounce beer and gnawing on a rope of pepperoni. He heard Alisa in the bathroom filling up her rice cooker with water. If he went right now to get a glass of water, he would bump into her. If he just did it, right now, now.
She was bent over the sink, trying to wash her rice by pouring off the water and refilling the pot several times.
"If you want to get in here for a moment," she offered.
"Your bandanna's coming undone," he said, pointing to her head.
She said that she could feel that it was.
Andy went behind her and reknotted the handkerchief. As he looked into her rice cooker, he could see that it wasn't rice she had in there--it was spaghetti noodles, broken in half. "You're making spaghetti in a rice cooker?"
"It's an experiment."
He asked her why she was washing the noodles.
"I'm washing the noodles to get them to fit in the pot, so I can get the lid on. I don't know why I didn't just buy rotini or macaroni. I was at the store and had this inspiration, make spaghetti in the rice cooker!"
Andy laughed. There was a pause. Andy looked down at their feet. He said, "Uh oh, two people in the bathroom at the same time. We're probably giving old Mrs. Ferguson downstairs a fit. Not sure these old floorboards have been tested this way in years. She's probably recording this into her complaint log right now. Gettin' out the red pencil. May 28th, 5:45pm: Loud creak, followed by thudding."
Alisa started to laugh, then her brow furrowed with concern. "Does she really have a log?"
"No, I'm kidding."
"Thank god."
Andy said, "So, how have you been lately?"
"Working on my final project," she said.
He asked what her project was.
"It's an overnight travel bag for the modern businessman," she said with some zip, as if it were a slogan she had practiced.
Andy nodded with admiration. "Compartment for your running shoes, toiletry case that snaps in place, reinforced plastic sleeve for your ties, that sort of thing?"
"I just wanted to make something out of polyurethane, actually. Don't really know why I picked a travel bag ... but, hey--compartment ... toiletry case ... that's brilliant. You mind if I use those? What was that again about ties that you said?"
"No, please, by all means ... a sleeve, for the ties."
"I'm going to go write that down before I forget." She carried her pot of spaghetti into her room, leaving the door slightly ajar.
Andy turned and strolled back toward his room. Her voice cut him off. "So, I've never seen you home so early. What's going on?"
"Ahh ... it's a long story. The VWPC project, it's in trouble. La Honda's executive director came to me today and said he's having a hell of a time getting a sponsor. We're just about out of our preliminary budget. We might have to abandon the project in a month."
"Is that all right with you?"
"I've come to believe in this project. I don't get many chances in life to believe in something, and I'm not going to throw this away, not for Lloyd, not for La Honda, not for Hank, not for anybody."
Alisa leaned her back against the doorjam to her room. "Why don't you go get a sponsor? Who can pitch what you're doing better than you?"
Andy nodded. "It's just not what we do. We're engineers. It's kind of against our code to be out selling ourselves."
Alisa put one foot up on her door. It was hard not to look at her leg.
"You'll think of something," she said. "You always do."
EVERY SELF-RESPECTING young man in Silicon Valley had considered the fantasy at one time or another. You could be pulling down six-figure salaries at Apple or Oracle. You could have two patents registered under your own name. You could have a division of programmers under your command, and it didn't count for anything unless you had taken a crack at the big spin. You had to know: "Could I do it?" It was easy for an older guy like Francis Benoit to ridicule the romance of a startup, but if you were 30, like Tiny, or 29, like Salman, you suspected that you'd never really lived if you hadn't done it at least once. They were always looking for the chance. And what constituted a chance? A decent idea and a team big enough to do the work fast but small enough to survive on credit cards. How many chances would they get like this? Darrell, meanwhile, had tried and failed once before, and he was just gaining enough distance on the experience to see the mistakes he had made. And so he was wondering: What if I don't repeat those mistakes?
Nobody talked about it openly, but the idea was never very far from their minds: What if? What if they just collectively resigned from La Honda? Where would they go when they woke up in the morning?
About that time, Salman was riding with his father down El Camino Real one Saturday night, on the way to dinner at a poolside smorgasbord buffet that was their favorite, when his father suddenly turned into a parking lot in Mountain View. He left the engine running and got out of the car, and went over to a patch of grass in front of a two-story, ugly, gray rectangular building. A "For Lease" sign had blown off the side of the building and landed in the grass. Salman's father owned a few gas stations and laundromats, and apparently he owned this building, too. The first floor was leased by the School for Contemporary Business, which was really a training school for secretaries. The second floor had been vacant for a year, Salman's father explained when he got back in the car. He'd been trying to sell the building, and he thought he might have a better chance of selling it if no tenants held long-term leases that prevented rent increases. So he hadn't rented it--hadn't even returned the phone calls of potential renters. Salman asked why he bothered with the "For Lease" sign. In order to write down the lost income on his taxes, his father had to pretend it was available.
"So ... nobody's up there?" Salman asked.
"Mm-mm," his father agreed.
"And it has commercial electrical wiring?"
His father said that it did.
"Like ... how many amps can it deliver?"
"Dunno. It's got separate fuse boxes for each suite. Five hundred maybe? Does that sound right?"
The next day, Salman came into the trailer with a big grin on his face. Secretary school!
"What are you so giddy about?" Darrell said, when he caught Salman daydreaming.
"It's nothing. Never mind."
"All right, that does it. Out with it. Come on."
"Naw, you wouldn't appreciate it fully. You have to be in a certain wistful frame of mind."
"Wistful? I'm wistful right now. I'm wistful that you'll avoid getting socked in the teeth and let me in on your secret."
"Aww, your expectations are already too high. I can't tell you now."
"Tell Tiny, then, and he can tell me."
So Salman went to Tiny and told him how in Mountain View there is this secretary school. Not only that, but above the secretary school is a vacant office space, 2,400 square feet. Then Tiny went to Darrell and repeated it back to him, word for word, without any expression.
"So what!?" Darrell screamed at Salman. "That's it? A vacant office. You got me all lathered up and all you have to report is a vacant office! You know I can't work when I get all excited. You know that. ... I've got a little news for you, pal. There's probably a thousand vacant offices between here and San Francisco."
Salman leaned back in his seat and shook his head. "Not owned by my father."
"It's owned by your father? Really?"
"Mmmm. There's more."
"What more? Give me more."
"Are you sure?"
"Yes, I'm sure."
Salman clucked his tongue skeptically. "If I tell you, you won't be able to work all day."
"That's OK."
"Maybe I should tell you at the end of the day."
"No! Tell me now."
"OK. It's free."
"What's free? The office? The office is free? Free for us to use? We can use the office for free?"
"Mmmm ..."
"What kind of wiring does it have?" Darrell's heartbeat was racing. He could tell he wasn't going to get any work done all day. Secretary school! It was too delicious to not spend a few moments fantasizing, and then the fantasy took a grip on their brains, so that every time they tried to stare at their last line of code it was like one of those secretaries-to-be was right at their ear, cooing, "Help me, help me, my printer's jammed."
After about two days, Andy picked up on the fact that almost no code had been written. "What's the matter with you guys? Don't you realize our budget is spent in three more weeks? We've got to. If we don't have some results by then, I don't know what. This is no time to procrastinate."
"There's no time to procrastinate like the present," Darrell said.
"What's that supposed to mean?" Andy shot back.
"That was a joke."
@lways the Hardest
Illustrations by Rick Geary
From a New Novel