And this is what made Bear so special. It was one of the few places a PSD kid could get a break on Wall Street. So the biggest loss in the Bear Stearns collapse is not the equity of the company. That's just been transferred to others, including JP Morgan shareholders and firms that will absorb some of Bear's most talented employees. No, the biggest loss is the end of an era for one of the most entrepreneurial firms on Wall Street. This was a place that truly believed in building a meritocracy based on achievements and performance. A place that gave some very hard-working and smart people a shot at making a difference.
Sound familiar? It should, if you run an early-stage technology company. This is exactly the sort of attitude that prevails at successful startups. A large amount of the success I've had as a venture capitalist is the direct result of backing PSD founders, and encouraging those founders to hire PSD staff. Young companies need PSDs to fill their ranks. It may mean taking risks on hires and look beyond pedigree, but it breeds fierce loyalty, a hard work ethic, and empowers employees with the drive to do everything in their powers to help the startup succeed.
Related news, commentary, and predictions:
- Mark V. Cannice, Ph.D.: The impact of Bear Stearns' collapse on entrepreneurs
- Opinion: 10 'Net services that will succeed (and 10 that will probably fail)
Note: Anonymous comments on The Industry Standard are disabled. To leave a comment and participate in the Standard's prediction market, please register first.
Comments
Thanks for the memory. I'm a former PSD, too. Was there "just a few years" before you :) I don't think that I worked with many who went to college. We just worked hard.
There is another thing that seems to have gotten lost in Bear Stearns over the past year or so. It's that if you even "thought" that you were loosing money on something; you had to come clean the moment you knew, and then do something about it -- cut your losses, don't dwell on it and move on.
I'm currently working for an Australasian merchant bank, chaired by a former Bear Stearns VP, and am please to say the PSD spirit is still alive and well here. In fact, my fellow Analysts and I were all given a 'PSD talk' not too long into our inductions!
I came into the firm through an unusual route (BSc graduate with no financial background), but was hired on condition that I applied myself to learning finance on the job. Without this opportunity it would have been a lot harder for me to break into the commercial world. It's only a shame the Bear isn't around today. From what I've heard, I'd have liked to work there.
Post new comment