for example, one senior engineer in AT&T Labs with 20 patents, his PPV = 20X0=0; another independent consultant has 5 patents, his PPV =5X100%=5. If one day, these two people start their own tech companies and look for venture capitals (VC), their own technology capitals will be:
1st guy: 0.00
2nd guy: 5 x $400,000 (based on 2005 data of silicon valley - average $$ per ICT
patent) = $2 million
If the first option price is 10 cent per share (for most startup companies), their stock shares are:
1st guy: 0
shares
2nd guy: $ 2 million / $0.1 = 20 million shares
After 3-5 years, if their companies go public and the share price is $20/share (most cases in silicon valley), this portion of technology capital will become the following cash value:
1st guy: 0.00
2nd guy: 20 million X $20 = $400 million
That's why there are too many rich people in Silicon Valley !
What's the conclusion ? - Keep your ideas to yourself !
