As digital technology reduces the need for labor in many industries, the proportion of the rewards returned to those who own the intelligent machines is growing. A venture capitalist in today’s economy can fund a company like Instagram, which was eventually sold for a billion dollars, while employing only thirteen people. When else in history could such a small amount of labor be involved in such a large amount of value?
American computer scientist, academic lecturer and writer
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Step 1: Decide What Capital Market You’re In For the sake of clarity, I will introduce some new terminology. When you are acquiring career capital in a field, you can imagine that you are acquiring this capital in a specific type of career capital market. There are two types of these markets: winner-take-all and auction. In a winner-take-all market, there is only one type of career capital available, and lots of different people competing for it.
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Jim Clark was interviewed at an event held at Stanford University. At some point in the interview, the topic turned to social media. Clark’s reaction was unexpected given his high-tech background: “I just don’t appreciate social networking.” As he then clarifies, this distaste is captured by a particular experience he had sitting on a panel with a social media executive: [The executive was] just raving about these people spending twelve hours a day on Facebook . . . so I asked a question to the guy who was raving: “The guy who’s spending twelve hours a day on Facebook, do you think he’ll be able to do what you’ve done?