Startup

by S. Jerrold Kaplan

  ACTION ITEMS: Gregw—Carr wants our debug format to do a remote debugger. If it is written up and easy to send then send it to him with a letter saying they will use it for developing on their machine only. If it is hard then have someone call and say sorry.

  Joachimk/Steveb—we should be selling system software to people like this. He is fairly far along at this point. What would we sell him? Either stripped down PM or WINDOWS. WINDOWS is the best choice I think. Tell him to use extended memory. He won’t like this but it will sure help him with applications developers. Who can take a pass at this with Carr?

  Mikemap—Another applications opportunity but unless we want something that fits on this machine for the desktop I doubt it makes sense. They do want to create connections between stuff on their machine and popular desktop stuff so we want to be friends with them even if they are not an ISV. They offered to come up and present their concepts to a larger group up here. I doubt that makes sense. I will talk about this class of machine in our Saturday morning meeting.

  Glossary

  API (application programming interface). The functions that one program makes available for other programs to use. Or, more specifically, the particular way in which these functions are made available. In the case of an operating system, like Windows or Penpoint, the API comprises numerous functions that the programmer can access to perform a variety of operations within that system, such as reading or writing data, managing memory, and displaying information inside a window on the screen.

  ASCII. A standard binary code for letters, numbers, and special symbols developed by the American Standards Committee which can be recognized by all computer programs.

  ASIC (application-specific integrated circuit). A computer chip designed for a specific application. ASICs are often developed by a company for use in one or more of its own proprietary products, in conjunction with standard off-the-shelf parts.

  Assembly language. A low-level programming language whose structure closely corresponds to the logical design of the computer, often translating easily into simple binary instruction codes.

  BIOS (basic input/output system). The low-level program, particularly on IBM-compatible PCs, that manages data going into or out of the central processing unit (see CPU).

  Buildmaster. A software engineer who assembles the various components of a large software system into a version of the completed system.

  CMOS (complementary metal-oxide semiconductor). A specific type of computer chip that consumes less power than other types of chips and so is often used in devices that run on batteries.

  Common stock. In a startup, the stock usually held by employees and others who provide a service to the company.

  CPU (central processing unit). The part of a computer’s circuitry that carries out the instructions encoded in software. Program instructions and data are loaded from memory into the CPU, which then performs the indicated operations on the data.

  DOS (disk operating system). Until recently, the most widely used operating system for IBM-compatible personal computers. DOS was developed by Microsoft Corporation and licensed to IBM (see Operating system).

  EGA (extended graphics array) controller. A particular computer chip that controls the display of information on the screen of a personal computer.

  EPROM (erasable programmable read-only memory). A type of memory that retains its contents even when the computer’s power is turned off, but that can be erased with ultraviolet light and reprogrammed. EPROMs are often used in hardware prototypes that require frequent changes.

  Flip-flop. The common name for a simple digital circuit element that can be switched on and off.

  Gestures. Symbols drawn with an electronic pen that are interpreted as commands by a pen computer. For example, in Penpoint software the gesture X over a word represents a command to delete the word.

  GOLD chip (GO logic device). An ASIC chip designed by GO hardware engineers to perform specific functions required by GO’s prototype pen computers.

  IPO (initial public offering). A financing event whereby a private company, often a startup, “goes public” by selling shares of stock to the public and is subsequently listed on a stock exchange.

  ISV (independent software vendor). A software developer that writes or sells programs based on another company’s programming system. The program is usually an application that will run on an operating system.

  Limited partners. Investors in a project who provide money but do not have responsibility for managing the enterprise, and so have limited liability for the actions taken on behalf of the project.

  Market capitalization. The total value of a company, calculated by multiplying the number of outstanding shares by the value of those shares.

  Megabyte. Approximately one million (1,048,576) bytes. A convenient measure of memory size; one megabyte equals 220 bytes.

  NDA (non-disclosure agreement). A legal agreement in which a company (or individual) that discloses confidential information to another is assured that the other company (or individual) will limit its use of the information to certain stated purposes.

  Operating system. The fundamental program that operates a computer. It provides access to input/output devices, manages system resources such as memory and files, and controls the execution of applications programs. Modern operating systems, such as Windows and Penpoint, provide a consistent “look and feel” to the user by offering functional and stylistic guidelines for applications designers.

  Personal communicators. Portable computers used for one or more forms of communication, such as telephoning, faxing, and paging.

  Pixels (picture elements). The small dots out of which digital pictures are composed; also a unit of measurement used to identify a specific position on a computer screen.

  Post-money valuation. The market capitalization of a company immediately after a financing event. The post-money valuation is equal to the pre-money valuation plus any newly invested cash before it is spent.

  Preferred stock. One or more special classes of stock issued to investors in a startup, as opposed to common stock, which is issued to employees. Preferred shareholders get certain negotiated privileges (called preferences), such as the right to get their original invested money back before the common shareholders do if the company is sold or liquidated for less than the price they paid for their stock.

  Pre-money valuation. The market capitalization of a company immediately before a financing event—i.e., the value that new investors are willing to place on the company prior to making their investment.

  Propagation delay. The length of time it takes for a voltage to become stable and observable at the termination point of a circuit—i.e., the time it takes before a digital signal can reliably be read.

  Pro-rata share. The part of a financing that an existing shareholder would buy if all previous investors take part in the financing in proportion to their current holdings in the company. If all investors take their pro-rata shares, then their relative percentage ownership in the company will not change as a result of the financing.

  Regulation D. A securities regulation that allows a private company to sell stock to a limited number of individual investors without the restrictions and reporting requirements governing public corporations.

  Restricted stock. Stock that cannot be sold except under certain circumstances, such as at an initial public offering (see IPO) or after first offering to sell the stock back to the company.

  RFP. A Request for Proposal, which usually contains written specifications of a complex system that suppliers can then bid on.

  RISC (reduced instruction set computer). A kind of computer design that employs fewer and simpler basic instructions, which can be executed more quickly and efficiently.

  ROM (read-only memory). A memory chip whose contents are stored permanently when it is manufactured, and from then on can only be read, not changed. ROMs are usually less expensive than other, more flexible memory chips, and they retain their contents when po
wer is turned off. ROMs can be used to store fixed programs, such as an operating system, which must always be present in the memory of a computer.

  Software build. The result of the process by which a software engineer assembles the various components of a large software system into a version of the completed system.

  Software interrupts. A signal generated by a computer’s software to suspend temporarily the normal flow of instructions through the CPU and perform some urgent task, such as fetching data from a disk, reading the location of an electronic pen, or moving an image on the screen.

  Source code. The “symbolic” form of a program, which allows a programmer to make substantive changes in the functions of that program.

  SRAM (static random-access memory). A type of memory chip that can retain its contents with only a small amount of power. SRAM memory is useful in portable devices, because the memory can be kept alive for long periods without draining the battery.

  Vesting period. The time during which employees or other service providers must perform work for a company in order to gain clear title to their stock. In startups, the vesting period is typically four years.

  Warrant. A right to buy stock at a specified price for a given period of time, called the term. The holder of the warrant will usually exercise this right if the stock value rises above the specified price during the term. If the stock value stays below the specified price, the holder will likely let the warrant expire.

  Index

  ABC News, [>], [>]

  Active Book, [>]–[>], [>]

  ADP, [>]

  Advanced Micro Devices, [>], [>]

  Agenda (conference), [>]

  Agenda. See Lotus Agenda

  Agulnick, Todd, [>], [>], [>]–[>], [>]–[>], [>], [>], [>], [>]

  Akers, John, [>]

  Allen, Bob, [>], [>]

  Allen, Paul, [>]

  Alsop, Stewart, [>]–[>], [>], [>], [>], [>]

  Aneas (Harvard Management), [>], [>], [>], [>]

  Apple: alliance with IBM, [>], [>]–[>]; competition with, [>]–[>], [>]–[>], [>]–[>], [>]–[>], [>], [>], [>], [>]–[>], [>]–[>]; hardware engineering at, [>]; in lawsuit with Microsoft, [>]

  Apple Newton personal digital assistant (PDA): ARM chip in, [>], [>], [>]; AT&T’s interest in, [>]; IBM’s interest in, [>]–[>], [>]; John Sculley’s promotion of, [>]–[>], [>]–[>]; lackluster sales of, [>]–[>]; as Penpoint’s major competitor, [>]; prototypes of, [>], [>], [>], [>]; sales training for, [>]–[>]

  Apple Powerbook, [>]

  Application programming interfaces (APIs), [>]–[>], [>]–[>]

  Arete Ventures, [>], [>]

  ARM (Acorn RISC Machine) chips, [>], [>]–[>], [>]

  Artificial intelligence, [>]

  ASCII (plain text), [>]

  ASCII Corp. (Japan), [>]

  Ashton-Tate, [>], [>], [>], [>], [>]

  Associated Press (AP), [>]

  Atkinson, Dave: and AT&T’s investment in GO Corp., [>], [>], [>]–[>]; and EO-GO merger, [>]–[>], [>], [>]–[>], [>], [>]–[>]; and formation of EO Corp., [>]–[>]; and reorganization of EO, GO, and AT&T, [>]–[>]

  AT&T: corporate headquarters of, [>]–[>]; financing of EO Corp. by, [>], [>]–[>], [>]; financing of GO Corp. by, [>]–[>], [>]–[>], [>]; partnership with GO Corp., [>]–[>], [>]–[>], [>], [>]–[>]; promotion of Penpoint and EO440 by, [>]–[>]; as proposed buyer of GO Corp., [>], [>]–[>]; reorganization of partnership with GO and EO, [>]–[>]

  AT&T Bell Labs, [>]

  AT&T Microelectronics, [>], [>], [>]–[>]

  AT&T Personal Communications Systems, [>]

  AT&T Telepen RFP, [>], [>], [>], [>]

  Auction, to liquidate EO Corp., [>], [>]

  Autodesk, [>]

  Ballmer, Steve, [>]–[>], [>]–[>]

  Bank of America, [>]

  Baranski, Celeste, [>]–[>], [>], [>], [>], [>], [>]–[>], [>]–[>], [>], [>]–[>]

  BASIC, [>]

  Baum, Michael, [>], [>], [>]–[>], [>]

  Bechtolsheim, Andy, [>]

  Be Labs, [>]

  Belove, Ed, [>]

  Bessemer Partners, [>], [>], [>]

  Biondolillo, Debbie, [>], [>], [>], [>]

  BIOS, [>]–[>]

  Boston Computer Society, [>], [>]

  Božinović, Rasha, [>]–[>], [>]–[>]

  Broadbent, Carol, [>]–[>], [>]–[>], [>]–[>], [>]–[>], [>], [>]

  Byers, Brook, [>], [>], [>]

  Byte, [>]

  Campbell, Bill: as CEO of GO Corp., [>], [>], [>]–[>], [>], [>]; at Claris, [>], [>]; and competition for Penpoint, [>], [>], [>]–[>], [>], [>], [>]–[>]; and EO—GO merger, [>]–[>], [>]–[>], [>]–[>], [>]–[>], [>]–[>], [>]; and GO Corp.’s financial problems, [>]–[>], [>], [>]–[>]; and GO Corp.’s partnership with AT&T, [>], [>]–[>]; and GO Corp.’s partnership with IBM, [>]–[>]; at Intuit, [>]; and problems with EO Corp., [>], [>]–[>]; and reorganization of GO, EO, and AT&T, [>]–[>]; and strategy review, [>]–[>]

  Cannavino, Jim, [>]; and IBM’s deal with Apple, [>]–[>]; and negotiations over IBM partnership, [>], [>], [>]–[>], [>]–[>], [>], [>]–[>], [>]; and press announcement, [>], [>]–[>]; selling of Metaphor to IBM, [>]

  Carr, Robert: and competition from Newton, [>], [>]; demonstrations of Penpoint by, [>]–[>], [>]–[>], [>]; demonstrations of prototypes by, [>]–[>], [>], [>]–[>]; and EO—GO merger, [>], [>]–[>], [>]–[>], [>]; at first working session, [>]–[>]; and management of GO Corp., [>], [>]–[>]; and problems at EO Corp., [>]; and proposed sale of GO Corp., [>]–[>], [>]; recruitment of, [>]–[>]; and software development, [>], [>]–[>], [>], [>], [>]

  Chancellor Capital Management, [>], [>], [>]

  Charles Schwab (brokerage), [>]

  Claris, [>], [>]

  Clean room BIOS, [>]–[>]

  CNN (Cable News Network), [>]

  COMDEX, [>]–[>], [>]–[>], [>]–[>], [>]–[>], [>], [>]–[>]

  Communications Intelligence Corp., [>]

  Compaq, [>], [>], [>]–[>]

  Consumer Electronics Show, [>]

  Corporate culture, [>], [>]

  Corporate law and lawyers, [>], [>], [>], [>]–[>], [>]–[>]

  Cravath, Swain &Moore, [>]

  Critter P. Spats, [>], [>]–[>], [>]

  Croll, John, [>]–[>], [>], [>]–[>]

  Department of Justice, U.S., [>], [>], [>]

  DeRuvo, Joseph, [>]–[>]

  Doerr, John: advice about IBM partnership deal, [>], [>], [>]; at Agenda, [>]–[>]; appointment to GO Corp.’s board, [>]; at COMDEX, [>], [>]–[>]; description of, [>]; and EO—GO merger, [>]–[>], [>]–[>]; as financial backer for GO Corp., [>], [>], [>], [>]–[>], [>]–[>], [>]–[>], [>], [>], [>], [>]–[>]; and GOLD chip, [>]; and management of GO Corp., [>]; and on going financing of GO Corp., [>]–[>], [>], [>]–[>]; and problems at EO Corp., [>]; and proposed sale of GO Corp., [>], [>]; reorganization of EO Corp. following merger, [>]; and RISC architecture for Penpoint, [>], [>]–[>]

  Doren, Kevin: and demonstrations of prototype, [>]–[>], [>]; departure of, [>]–[>]; at first working session, [>]–[>]; and GO Corp.’s partnership with AT&T, [>]; and hardware development, [>], [>]–[>], [>]; at Interval Research, [>]; and licensing of key technologies, [>]; and product launch, [>], [>]; recruitment of, [>], [>]–[>]

  Doren, Melanie, [>]–[>]

  DOS, [>], [>], [>]

  Dvorak, John, [>], [>], [>]

  Dyson, Esther, [>], [>]

  Earthquakes, [>]–[>]

  Electronic ink, [>], [>], [>], [>], [>]

  Electronic pens. See Pen computers

  Electronic tablets, [>]

  Entrepreneurship, [>]–[>]

  EO Corp.: auction of materials from, [>], [>]; business plan for, [>]; closing of, [>]–[>]; competition for, [>]; financing of, [>], [>]–[>], [>]; layoffs at, [>], [>], [>]; management problems at, [>]–[>], [>]–[>]; merger with GO Corp., [>], [>]–[>], [>]–[>], [>]–[>], [>]; reorganization of, [>]–[>]; software development at, [>
], [>], [>], [>]; startup of, [>]–[>]; valuation of, [>], [>]–[>]

  EO 440, [>]–[>]

  Esber, Ed, [>], [>]

  Evans, Bob, [>]–[>]

  Exley, Charles, [>]

  Feature creep, [>]

  Federal Trade Commission (FTC), [>], [>], [>]–[>], [>], [>]–[>], [>]

  FFS2 (Flash File System 2), [>]–[>]

  Financing: from AT&T, [>]–[>], [>]–[>], [>]; changes in, [>]; following IBM deal, [>], [>]–[>], [>], [>]–[>]; from IBM, [>]–[>], [>]–[>], [>]–[>], [>], [>]–[>], [>], [>]; initial, [>], [>], [>], [>]–[>], [>]–[>]; Kapor’s assistance with, [>