Building Hardware Companies and Choosing Co-Founders with Michael Hochberg
Feb 16, 2024
auto_awesome
Physicist and founder of four successful startup companies, Michael Hochberg, discusses the importance of hiring the best people, the rise of silicon photonics in data centers and telecom systems, and the need for thorough diligence when choosing co-founders.
Hiring the best people is crucial for building a successful company.
Thoroughly reference checking co-founders and ensuring they deliver tangible results is important before starting a company together.
Deep dives
Michael Hawkeberg's Career Journey
Michael Hawkeberg, a physicist and founder of successful startup companies in semiconductors and telecommunications, shares an overview of his career journey. He discusses growing up in Palo Alto, attending Caltech, discovering his talents were better suited for semiconductor work, and his experiences working in Axel Schur's lab. He also highlights his involvement in building Luxterra, a company that used silicon photonics to make optical devices and transceivers for data centers, and its subsequent acquisition by Cisco.
The Rise of Silicon Photonics
Silicon photonics is a high-growth market that has become a pivotal technology in various applications. It allows for the integration of optics and electronics on a silicon chip, enabling precise control over optical devices. The evolution of silicon photonics has been driven by the maturation of semiconductor fabs and the demand for high complexity optical chips in data centers and telecom systems. The technology has expanded beyond data centers, finding applications in biosensors, quantum communication, LIDAR, RF photonics, and chemical sensing.
Choosing the Right Co-founder and Managing Differences
Selecting the right co-founder is crucial for startup success. Due diligence is vital, including working together before official partnership, talking to references, and evaluating their compatibility with the team and vision of the company. Founders should openly discuss their motivations and expectations, such as financial goals and the definition of success. Managing differences among co-founders requires open communication, aligning objectives, and structuring agreements that allow for departures if necessary. Ensuring everyone is bought into the mission, motivated, and continually learning is critical for a successful team.
The Importance of Investors and Board Members
Investors and board members play a significant role in a startup's success. Selecting investors who are aligned with the founders' mission, smart, well-connected, and experienced is crucial. Their input and guidance during board meetings and day-to-day operations can be invaluable. Having a board that the founders can turn to for advice and guidance in challenging situations is essential. The board should serve as a support system and provide expertise when founders need help or face difficult decisions.
Michael Hochberg (https://www.linkedin.com/in/hochberg/) is a physicist and a founder of four successful startup companies in semiconductors and telecommunications, including Luxtera, acquired by Cisco in 2019, and Elenion, acquired by Nokia in 2020. He won the highest awards for young scientists in Singapore (NRF Fellowship) and the United States (PECASE), is an author on over 60 patents, and has been involved in the creation of over 30 companies in biotech and applications of silicon photonics.
Highlights:
- In college Michael would tie together clusters of Dell machines to replicate the performance of supercomputers.
- The core of building a successful company in Michael’s view is hiring the best people. The best can solve really hard problems but hiring mediocre people results in even trivial problems being unsolvable.
- Silicon photonics chips are replacing things that could previously only be done in silicon. Data centres and telecom systems are now dominated by silicon photonics.
- There’s a fundamental difference between co-founders and early employees but that line can often be blurred, often at the peril of the founding team.
- Michael says that founders don’t do enough diligence on their co-founders. Companies often last longer than most marriages so it’s important to throughly reference check your co-founders, ask specific and tactical open-ended questions of them, and see them deliver tangible results before you start a company together.
- It’s important to be aligned on what success means to you and your co-founders. Two people may have very different definitions of what “a lot of money” means — that could be enough money to buy a house for one person and $100M for another.
Thanks for listening — if you like what you hear, please review us on your favorite podcast platform. Check us out on the web at villageglobal.vc or get in touch with us on Twitter @villageglobal.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode