Sarah Lacy - Brilliant, Crazy, Cocky: How the Top 1% of Entrepreneurs Profit from Global Chaos

Contents

Acknowledgments

Chapter 1: Nothing to Lose

Chapter 2: The Death of Risk in America

Too Much Cash

End of a High-Tech Era

The Curse of Short-Term Thinking

Too Little Reward

Israel

Chapter 3: How Israel Became a Startup Powerhouse

China

Chapter 4: Deng Xiaoping, for the Win

Chapter 5: Revenge of the Copycats

India

Chapter 6: Indias Invisible Infrastructure

Connections

Education

Telecommunications

The Service Economy

Chapter 7: Indias Mighty Microeconomy

Brazil

Chapter 8: Do You Know Who You Are Talking To?

Indonesia

Chapter 9: The Emerging Worlds Big Secret

Rwanda

Chapter 10: Africas Hottest and Riskiest Startup

Epilogue: Beyond Greed and Fear

Notes

Authors Note

Index

Praise for Brilliant, Crazy, Cocky

Anyone who thinks they know entrepreneurship should read Sarah Lacys Brilliant, Crazy, Cocky . Being an entrepreneur is about thriving in chaos, and you wil find chaosand great opportunityin the emerging world right now. Yet for al the talk about the emerging world, only this Brilliant, Crazy, Cocky brings you a true-to-life account of the on-the-ground struggle to create something huge. In this engaging read, Lacy wil change the way you see the world. Anyone with a pulse should read this book.

Marc Andreessen, partner, Andreessen Horowitz Ventures; co-founder, Netscape, Opsware, Ning

Part insightful analysis of what ails Silicon Val ey and part madcap journey to far flung hubs of aspiration and innovation, Sarah Lacy takes us around the world to find the fascinating people who are creating the new wealth in a new world of start-ups and ventures that America ought to be paying a lot more attention to.

Maureen Orth, special correspondent, Vanity Fair

Sarah Lacys entertaining and informative tour of the worlds fastest growing economies undeniably proves what weve known at Endeavor for more than a decade: impressive and inspiring entrepreneurs can truly come from anywhere! In taking us on a whirlwind journey bursting with frenetic energymatched only by that of the amazing entrepreneurs she meetsLacy gives us an important glimpse into the future of the global economya place where the craziest, high-impact entrepreneursfrom anywhere and everywhereset the pace.

Linda Rottenberg, co-founder and CEO, Endeavor

Sarah Lacy has focused on a fascinating phenomenon and explains, with clarity and unimpeachable logic, why and how these global entrepreneurs are saving the planet. Everyone interested in what makes the world spin better must read this book.

William H. Draper, III, co-founder, Draper Richards LLP Author of The Startup Game: Inside the Partnership Between Venture

Capitalists and Entrepreneurs

Entrepreneurs advance human welfare by creating the economic future through the messy process of starting and growing companies. Sarah Lacy has seen this future and, in this essential and important book, chronicles the emergence of a new, global era of messy capitalism. The critical question Lacy poses to the United States and other countries is whether they wil join this entrepreneurial revolution or watch it from the sidelines.

Carl J. Schramm, president and CEO, Kauffman Foundation

Brilliant, Crazy, Cocky puts a wel -deserved spotlight on the fascinating entrepreneurs working in some of the most overlooked places on Earth. This book reminds us that when entrepreneurial opportunity is enabled and embraced local y, the economic and social benefits have the power to transform us al .

Pierre Omidyar, founder and chairman, eBay; founding partner, Omidyar Network

Copyright 2011 by Sarah Lacy. Al rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifical y disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shal be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.

For more information about Wiley products, visit our web site at www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Lacy, Sarah, 1975

Bril iant, crazy, cocky: how the top 1% of entrepreneurs profit from global chaos / Sarah Lacy.

p. cm.

ISBN 978-0-470-58009-7 (hardback); ISBN 978-1-118-00778-5 (ebk)

ISBN 978-1-118-00779-2 (ebk); ISBN 978-1-118-00780-8 (ebk)

1. Entrepreneurship. 2. Success in business. I. Title.

HB615.L23 2011

658.4'21dc22

2010034717

To all the brilliant, crazy, cocky entrepreneurs in megacities, slums, and villages around the developing world. Youve inspired me more than you will ever know. And for my husband, Geoffrey, who supported this brilliant, crazy, cocky journey.

ACKNOWLEDGMENTS

My first thanks have to go to John Wiley & Sons, Inc.the only publisher that would take a risk on this book two years ago. The second thanks go to the Kauffman Foundation, who made the reporting financial y possible without my going bankrupt. Thanks also to Michael Arrington and TechCrunch for the steady paycheck and platform to write about my journeys as I experienced them. Thanks to my agents at Levine & Greenberg, who never made me feel crazy for taking this project on. And thanks to the publishers who did make me feel crazy, because you pushed me harder.

I spent 40 weeks on the road for this book, and its impossible for me to thank everyone within each country for his or her translation, hospitality, trust, and honesty. In Israel, thanks to Roi Carthy, Michael Eisenberg, Yossi Vardi, Erel Margalit, Gilad Japhet, Orli Yakuel, Ayelet Noff, and the amazing staff of the Hotel Montefiore in Tel Aviv for being my surrogate Jewish mothers.