Global Locate
2005 – Global Locate was a very cool startup making Global Positioning System (GPS) integrated circuits. I was hired to be Vice President of Quality and Reliability, but I was soon promoted to VP Operations. I have already
detailed what VP Operations in a startup does (everything except Finance, Marketing and Sales, IC design, system design and software development). Actually I quickly got involved in IC design as it impacted packaging technology for which I did own the
responsibility. Global Locate was quite successful in the GPS market, capturing designs at several well-known GPS personal navigation and Smart Phone companies. GPS technology is very cool. For a fairly easy to understand overview,
visit: http://en.wikipedia.org/wiki/Global_Positioning_System.
While my time at GL was somewhat brief – we got bought – I did travel quite a bit to both Asia
and Europe to set up and deal with our manufacturing partners. One interesting trip was to a German company that we contracted with to manufacture our GPS semiconductor chips. On this trip we were also trying to convince a big potential customer
that because of our large company manufacturing partner they could rely on us to supply their volume needs for our product. In order to present as impressive face as possible I flew to Munich intending to rent an E class Mercedes to drive the customers
around. When I got to the rental counter they were out of E class cars so they gave me the biggest blackest S class made. Everywhere I went I was taken to be a high level business or German Government official. I could park wherever I wanted,
drive as fast as I wanted, etc. (Actually on the autobahn that is possible for everyone, this car was just faster than most). We did get the business we were after, and this really helped GL to be viable.
The problem at
GL was that we were basically a one product company. We had several GPS chips, but they all did one thing, GPS positioning. It is really hard to build a sustainable company with one product, and developing new products was and is extremely expensive.
The engineering costs, the mask costs, the wafer foundry costs, the assembly costs, the test development, all add to tens of millions of dollars then, and are now are above $50 million for a moderately complex chip. The solution came knocking at the
door. Broadcom wanted to get into the GPS business.
Broadcom
2007 – Many high tech successful companies acquire new needed technology by buying smaller companies that have the desired products / technology / people. So
Broadcom bought Global Locate and its products / technology / people. OK, not exactly the people, but they did make the key GL people offers that they couldn’t refuse. I was not initially in the key people category, but after a few weeks
at Broadcom they saw what I had done, and could do for them and they also offered me such a deal. I was with Broadcom for seven years running most of the product engineering group in Santa Clara. I am not going to write very much about my time
there because it is too recent, almost all of the people I worked with are still there, and the products, customer programs and problems are mostly still there. Too much company private information to discuss. I will say that I really enjoyed my
time there, and my boss, Gary Eves was the best boss I ever had. Considering the number of bosses I had, that is saying something. And we still remain friends. After seven years, I retired. I think Broadcom was sorry to see me leave.
They held three going away parties, and Gary paid for a round of golf at Pebble Beach as my going away present. Beats a gold watch.
Summary
I worked for five startup companies, always hoping to hit it big. That never happened.
The Venture Capitalists say that at best one in ten companies they fund are even somewhat successful. I did not make any serious money with any of the ones I was with, including Synergy, which I co-founded. When Synergy was purchased by Micrel
I made enough money to buy a low end Mercedes for my wife. I made a little money when GL was bought by Broadcom, but again, not nearly enough to change my life. Also, in general small VC funded startup companies do not pay as well as do larger
public companies. The pitch is that you are working for equity which will be very valuable when the company goes public. Nice argument, didn’t happen.
Larger public companies, in my case Fairchild, AMD and Broadcom pay better and have
better benefit packages to augment the salary. Most common now is for the company to offer a good 401k package (maximize your individual contributions and the company probably contributes to it also), Employee Stock Purchase Programs which typically
allow you to put 15% of your salary into the stock purchase, and at the end of the period, typically 6 months they buy company stock for you at the lower of the two prices at the beginning or the end of the period. (Sell the stock then and you have a
guaranteed 15% return on your money in 6 months, or hold on to it if you are optimistic about the price potential.) And third, companies usually now have Restricted Stock Units that are granted to the better performing employees. This is stock
that vests over a four year period and is given to you at no cost to you when it vests. The amount of the RSU stock granted is a function of the employee’s job level and performance. Note that I didn’t mention a pension plan.
Silicon Valley high tech companies don’t have them. For your retirement you are on your own. Start saving early in your career and take advantage of all of the company offered program that are available.
So that is my personal
history in Silicon Valley, at least as it relates to working in high technology companies. I have enjoyed writing about it, and I hope my readership has enjoyed reading and maybe learning something from my writings about Silicon Valley and from the earlier
sections about how to be successful in business. I am not out of writing ideas yet, so as they say, don’t touch that dial.
Marshall Wilder
September 25, 2014