Regional Oral History Office University of California the Bancroft Library Berkeley, California

Regional Oral History Office University of California The Bancroft Library Berkeley, California GIBSON S. MYERS EARLY BAY AREA VENTURE CAPITALISTS: SHAPING THE ECONOMIC AND BUSINESS LANDSCAPE Interviews conducted by Sally Smith Hughes, PhD in 2008 Copyright © 2009 by The Regents of the University of California ii Since 1954 the Regional Oral History Office has been interviewing leading participants in or well-placed witnesses to major events in the development of Northern California, the West, and the nation. Oral History is a method of collecting historical information through tape-recorded interviews between a narrator with firsthand knowledge of historically significant events and a well-informed interviewer, with the goal of preserving substantive additions to the historical record. The tape recording is transcribed, lightly edited for continuity and clarity, and reviewed by the interviewee. The corrected manuscript is bound with photographs and illustrative materials and placed in The Bancroft Library at the University of California, Berkeley, and in other research collections for scholarly use. Because it is primary material, oral history is not intended to present the final, verified, or complete narrative of events. It is a spoken account, offered by the interviewee in response to questioning, and as such it is reflective, partisan, deeply involved, and irreplaceable. ********************************* All uses of this manuscript are covered by a legal agreement between The Regents of the University of California and Gibson Myers, dated March 1, 2009. The manuscript is thereby made available for research purposes. All literary rights in the manuscript, including the right to publish, are reserved to The Bancroft Library of the University of California, Berkeley. No part of the manuscript may be quoted for publication without the written permission of the Director of The Bancroft Library of the University of California, Berkeley. Requests for permission to quote for publication should be addressed to the Regional Oral History Office, The Bancroft Library, Mail Code 6000, University of California, Berkeley, 94720-6000, and should include identification of the specific passages to be quoted, anticipated use of the passages, and identification of the user. It is recommended that this oral history be cited as follows: Gibson S. Myers, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” an oral history conducted by Sally Smith Hughes in 2008, Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 2009. iii Gibson S. Myers, 2009 iv v Gibson S. Myers Gib is emeritus partner of Mayfield Fund, a private venture capital partnership located in Menlo Park, CA, and has been a Mayfield general partner since 1970. Prior to joining Mayfield, Gib worked for Hewlett-Packard for four years as manager of computer systems and later as manager of inter divisional sales. Gib is the Chairman of the American Prairie Foundation, a non-profit that whose mission is to develop an enormous prairie based wildlife reserve in Eastern Montana, an American Serengeti. He is also the founder of the Entrepreneurs Foundations (EF), an organization with the mission of channeling the energy, wealth, and innovation of the entrepreneurial sector to continuously enhance the quality of the community. In the Bay Area, over 200 companies have joined EF and are actively working with local non-profits. Gib is co-founder of the Center for Social Innovation at the Stanford Graduate School of Business and was a member of the Stanford Graduate School of Business Advisory Board. Gib holds an AB degree in Engineering Science from Dartmouth College and a Masters of Business Administration from Stanford Graduate School of Business. vi vii Discursive Table of Contents—Gibson S. Myers Interview #1: September 9, 2008 [Audio File 1] 1 Birth in 1942 in St. Louis, decision to leave St. Louis and study engineering, starting Dartmouth in 1960—last minute application to Stanford Business School, move to CA—graduation in 1966, interviewing at 30 companies, choosing Hewlett-Packard—impression of William Hewlett and David Packard—draft notice, serendipitous contact with Mr. Mortimer and admission to reserves at the Presidio—four month reserve service in Texas and Arizona: “It wasn’t too bad”— back to HP just as they began to get into the computer business—interest in computers—the Fairchild Semiconductor tree—elaborate testing of machines— thoughts on Tom Perkins as a division manager—1970 decision to leave, conversations with Bill Lowe, phone call from Wally Davis—meeting Wally Davis and Tommy Davis—starting job with Mayfield, learning the venture capital business, vetting companies—history of Davis and Davis partnership—pursuit of Stanford’s endowment for investments—Dean Fred Terman, endowment investment in bonds, venture capital considered too much risk—investing in Stanford—1972 or 1973 raising Mayfield II Fund, Phil Horsley and Kevin Koeph of University of Rochester begin investing endowment funds in venture capital— venture capital climate in the mid 1970s: $7.5 million was a large fund—the changing role of intuition at Mayfield—Mayfield culture and reputation as a firm entrepreneurs liked to work with—1970s monthly lunches at the Fairmont, “in contrast to the nineties where it’s so highly competitive”—influx of money has increased competition—early stage investment—sharing deals, bringing in partners—decision to leave Mayfield in 1998. [Audio File 2] 22 The process of building companies, hiring people to fill niches, working with Bill Unger—evolution of angel investors—the importance of familiarity with a company’s technology—Mayfield process of discussing possible investments— Myers’ role as a managing partner at Mayfield—unusually friendly relations among Mayfield partners—mid 1990s beginning of competition in Mayfield— thoughts on the Mayfield motto: “We view ourselves as the entrepreneur’s partners.”—the difficult process of management change—some thoughts on the Entrepreneurs Foundation program. viii Interview #2: September 22, 2008 [Audio File 3] 31 Evolution of requirements for aspiring entrepreneurs from 1970s to 1990s, impact of growing competition—in-house support for entrepreneurs in the early days— the importance of personal contacts: “It’s all about the people, so unless you get that personal connection started, you don’t get started.”—Mayfield Fellows Program, presence at UCB and Stanford—the Stanford and UCB venture capital connection, working with A. Richard Newton—venture capital’s relationship to innovation: screening potential and fostering growth—changed in venture capital industry over Myers’ career: greater expectations for new hires, faster pace— trend toward increasing specialization within firms—changes in ownership, attaining partner status—more on Mayfield partners’ congenial relations, eventual competitiveness reflecting industry changes—decision to leave Mayfield—the process of taking Mayfield public—thoughts on the dot-com boom and the IPO frenzy of the late 1990s—Mayfield investment in Genentech, 1977-1978, relationship with Bob Swanson—the evolution of the relationship between venture capital investment and academia—greatest strength: managing and building a cohesive team—reflections on the origin of venture capital: the confluences of Stanford, Terman, West Coast culture: “Sure we can do it.”— venture capital in other parts of the world. [Audio File 4] 51 Simplex Systems, CAD technology, Richard Newton, Cadnetix—early Mayfield policy of staying in-state, later expanding to East Coast, etc—SpectraLink with Bruce Holland—MIPS—Latitude Communications—working to manage and salvage failing investments and personnel crises—changing benefits of IPO vs acquisition as an exit strategy—acceleration of time to market cycles-the biotech exception: clinical trials and FDA approval take time—investing in the community: Entrepreneurs Foundation in 1998—working to change the venture capital culture to include philanthropy—effects of 2000 stock market collapse on Entrepreneurs Foundation’s holdings, focus shift from grant-making to building companies—founding of Entrepreneurs Foundation branches across the US and Israel—the struggle to sell the idea to boards—Mayfield Foundation—Mayfield partners personal joint philanthropy—George Pavlov’s support of Stanford’s hospital—involvement with Stanford’s Venture Investment Group. 1 Interview #1: September 9, 2008 Begin Audio File Myers 1 09-09-2008.mp3 01-00:00:00 Hughes: Mr. Myers—it is September 9, 2008 and this is our first session of maybe two. Would you start with what it was like to grow up in you family, and then go into your education? 01-00:00:24 Myers: Born in 1942, grew up and raised in St. Louis, went to high school there and then left in 1960 to go to Dartmouth and studied engineering at Dartmouth. 01-00:00:44 Hughes: Why engineering? 01-00:00:46 Myers: I’ve always loved engineering and so that’s kind of always been on the agenda. My choices were Dartmouth and Princeton. I kind of liked the liberal arts orientation of Dartmouth and so I went there. And I must say from the time I left St. Louis, I knew I’d never go back. It was a great place to grow up and it was kind of one of these Old South things where for Labor Day and Memorial [Day] weekend, three generations would get together, a crowd of fifty or sixty, which was magnificent. But it was also St. Louis, and it was hot in the summers and cold in the winter, and I just knew that wasn’t for me. 01-00:01:26 Hughes: What did your parents do? 01-00:01:28 Myers: My dad was [in] the insurance business and my mom raised us. 01-00:01:35 Hughes: How many of you? 01-00:01:36 Myers: Two. I have a brother who is five years younger. 01-00:01:41 Hughes: And what happened at Dartmouth? Anything that set a career direction? 01-00:01:47 Myers: Well, yes. I liked Dartmouth, studied engineering, as I said. Dartmouth engineering was a five-year program.

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