And this trend has just begun. If you think Facebook is the end, ask MySpace. Art, entertainment, everything you can imagine in life is moving to computers. Companies like Facebook for the first time can get total markets approaching the entire population…
…But Silicon Valley is screwed as we know it.
If I have a choice of investing in a blockbuster cancer drug that will pay me nothing for ten years, at best, whereas social media will go big in two years, what do you think I’m going to pick? If you’re a VC firm, you’re tossing out your life science division. All of that stuff is hard and the returns take forever. Look at social media. It’s not hard, because of the two forces I just described, and the returns are quick.
— Steve Blank, professor, Berkeley and Stanford, discussing the Facebook IPO with the Atlantic. The Golden Age of Silicon Valley Is Over, and We’re Dancing on its Grave