When we first read over superstar tech capitalist Tim Draper's "Six Californias" plan to make Silicon Valley its own state, we were a little skeptical. Was dividing California into six new states a sound idea? Maybe—let's wait and see. A new government study shows there might be some snags, like forming an arbitrary zone of extreme American poverty.
Old guard investor Tim Draper made a name for himself with mammoth VC returns on mainstream companies like Hotmail and Skype, then surprised many by retreating from his own firm firm. Now we know why: he's pushing to divide California into six new states, with Silicon Valley as the new separatist jewel of the union.
What if the perfect liquidity event for Silicon Valley was not a blockbuster IPO, or an acquisition that paid out at some insane multiple, but a literal exit from the United States of America? No more lumbering bureaucracies, no lobbying incumbents, no "petty" laws, no obstructionist unions. That's what a Stanford lecturer and genetics startup cofounder Balaji Srinivasan proposed at Y Combinator's annual startup school this weekend.