Ethernet Inventor Bob Metcalfe shares startup lessons
Bob Metcalfe, the founder of 3Com and the creator of ethernet, shares his journey from working a 9-5 job at Xerox to revolutionizing the internet.
He provides insights into what it takes to invent a world-changing product and reflects on whether the hard work and sacrifices were worth it.
Evolution into a Silicon Valley Startup
3Com began as a consulting company but evolved into a classic Silicon Valley startup after raising venture capital.
Metcalfe admits staying three years longer than necessary at the company, recognizing that during his last years there, he was causing more harm than good.
Understanding Sales vs Marketing
Metcalfe learned the hard way that sales and marketing are not the same thing.
Understanding this difference is crucial for success in business.
He believes that having a good grasp on selling could have made his life easier and potentially brought more success sooner.
Corrupting Influence of Wealth
Money and fame can drastically change how people perceive you, according to Metcalfe’s experience after becoming successful with 3Com.
He warns about the potential corrupting influence of wealth, sharing stories about how even small amounts can disrupt lives if not handled properly.
Most people think that Steve Jobs is the best CEO in the history of the world but an interesting fact about that is that he founded Apple in 1976 and he became CEO in 1996. He appreciated adult supervision. So from the very beginning, he had people involved in his company who were with him for him. – Bob Metcalfe
Breaking Through Established Markets
In order to build the internet as we know it today, Metcalfe says they had to ‘kill’ two monopolies: AT&T and IBM.
This highlights the immense challenges faced by innovators in breaking through established markets dominated by powerful entities.
Learning Selling Skills Early On
Metcalfe emphatically stresses on learning selling skills early on since it’s applicable in various aspects such as job interviews or pitching ideas.
This piece of advice is particularly useful for those starting their careers.
Aligning Employee Interests with Company Success
Reflecting on how money improved his life after 3Com went public, Metcalfe shares an anecdote where he sold shares of the company to its employees.
This not only gave him a substantial amount of cash but also ensured that every employee had all the stock they could afford, thus aligning everyone’s interests with the success of the company.
Value of Education Investment
Despite his wealth, Metcalfe’s philanthropic efforts are notable.
He has endowed three professorships at MIT and continues to be involved with the institution as a trustee.
This suggests that he values education and sees it as an important area for investment.
I didn’t make much money by inventing ethernet. I made most of it by selling ethernet which is different. – Bob Metcalfe
Versatility Across Different Fields
Post 3Com era, Metcalfe embarked on various careers including journalism, venture capitalism, and academia – each lasting about ten years.
His career trajectory shows adaptability and versatility across different fields.
