Dot-Com Saviors, Tilting at the World's IllsBy KATIE HAFNER
ONTEREY, Calif.
WITH their sights set across the globe, they are heading out from Silicon
Valley with unflinching optimism, buoyant self-confidence and, now that much
of their industry has evaporated, a great deal of time on their hands.
In increasing numbers, high-tech entrepreneurs who grew wealthy during the
dot-com boom of the late 1990's - as well as many who didn't - are turning
the intense business acumen they once devoted to making money to working
for what they see as the global good. Advertisement
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With the best of intentions, and maybe a hint of hubris, these New Age saviors
are trying to build water purifiers, manual irrigation pumps, low-cost solar
collectors, hearing aids, even highly durable mosquito nets. Armed with Po
Bronson's recent best-selling book, "What Should I Do With My Life?" they
hope to save lives while also giving greater meaning to their own.
"Many people in this industry are in a Po Bronson moment," said Tom Rielly,
the founder of PlanetOut, an Internet site catering to gays and lesbians.
"A lot of dot-comers who are out of work are trying to figure out what to
do, and a lot of them are trying to make a difference." This new
mood was especially evident at last month's TED conference (for Technology
Entertainment and Design), an annual gathering in Monterey that attracts
many of the computer industry's elite. But instead of celebrating technology's
intrinsic beauty and financial potential, participants showed off gizmos
meant to improve living conditions in the third world. Instead of
jargon like personal bandwidth, killer app, and clicks and mortar, the notions
floating around this year were sustainability, the ecology of terror and
H.I.V. One of the most popular presentations came from Dean Kamen, the inventor
best known for the Segway Human Transporter, the high-tech scooter that has
yet to prove itself in the marketplace. At TED, Mr. Kamen, 51, showed a water
purifier that also generates electricity. The device, which resembles a Good
Humor ice cream cart, takes filthy water (all that is available to much of
Africa, he said) and distills it to crystalline purity. "Here you
take the box and put it directly where someone needs it," Mr. Kamen said.
His device is still not ready for mass production, yet his plans are grandiose.
He said he would leave in the next few weeks for Africa to explore distribution
for his invention. TED was not the only place where world betterment
eclipsed return on investment as a discussion point. Three weeks earlier,
at the World Economic Forum in Davos, Switzerland, the annual meeting of
world economic and political leaders, a dinner for high-tech executives focused
almost exclusively on problems of poverty and disease around the world. Bill
Gates, the Microsoft chairman, sat
on a panel whose theme was "Science for the Global Good," and discussed his
foundation's work in bringing immunization programs to developing countries.
While plenty of people in Silicon Valley are still focused on keeping their
businesses going, this change in direction among some of the technology elite
comes in the aftermath of the dot-com collapse and the Sept. 11 attacks.
Fear of terrorism and war, and general nervousness about the health of the
planet, seem to have inspired a shift in priorities. Many of the speakers
at the conference were self-appointed Cassandras, describing the dangers
of American self-absorption with a fervor once reserved for initial public
offerings. "Five years ago, people were too busy getting rich and
being dazzled by technology to think more broadly," said Chris Anderson,
whose Sapling Foundation, which finances medical, technological and educational
projects in the developing world, bought the rights to stage the TED conference
from its originator, Richard Saul Wurman, a gregarious designer and architect.
This year marked the 13th TED. Attendees pay $4,000 for three and a half
days of intellectual soul searching, mixed with some pure entertainment,
like a juggling act, and a generous dose of technological bravado.
The $1 million in profits made at this year's conference will be given to
causes devoted to clean water, ocean conservation and public health in the
developing world, Mr. Anderson said. In many ways, this newfound idealism is connected to the old entrepreneurial spirit.
"As silly as it seems now," said Kevin Jones, 52, who owned several successful
high-tech businesses before selling them, "there was an element in the dot-com
thing people believed in." That is, entrepreneurs of the 90's embraced the
virtues of a supposed New Economy with evangelistic fervor. "People
felt they were transforming something," Mr. Jones said. "And once you whet
someone's appetite like that, they're not willing to go back to business
as usual." Besides, Mr. Jones added, only partly in jest, "the premium for selling your soul has gone down."
Of course, the time happens to be ripe for a Po Bronson moment. Had the dot-com
bubble never burst, a lot of people might not have thought to turn their
attention to bettering the world. Some of the dot-com activists consider
what they are doing enlightened self-interest, perhaps even enlightened opportunism.
During the boom years, Bill Gross's Idealab, an incubator for Internet-based
startups, was churning out online enterprises that offered toys, Web searches
and wedding planning. Then the bubble burst, and many of Idealab's companies
disappeared. Mr. Gross's personal wealth, $1 billion or more before the collapse,
is now roughly $200 million. "Maybe since Sept. 11 and maybe
because I'm almost 45 and maybe because I have four wonderful happy kids,
I want to do things that are important for the world," Mr. Gross said.
He used his time onstage at TED to introduce one new Idealab venture, called
Energy Innovations, which is making inexpensive solar collectors to sell
in places needing cost-effective power. But he hasn't lost his capitalist
zeal, either. Eventually, Mr. Gross said, he hopes to turn Energy Innovations
into a money-making business. Like others at the conference,
Mr. Gross criticized the United States for consuming the bulk of the planet's
natural resources without regard for the hostility such a lifestyle can engender.
"The root causes of any hatred against the U.S. have to be dealt with, as
opposed to just closing our eyes to it," he said. Not surprisingly,
perhaps, few of the newly socially aware entrepreneurs speak of teaming up
with public agencies like the World Bank and Unicef, or even nongovernmental
aid organizations like Oxfam. Instead, they focus on groups like the Acumen
Fund, a social venture fund that encourages an entrepreneurial approach to
fixing world problems. The Acumen Fund is receiving $427,000 of the TED profits.
Jacqueline Novogratz, 41, a graduate of Stanford Business School who started
the Acumen Fund in 2001, said she emphasizes models that take an investment-oriented
approach to global betterment, treating social ventures like any other entrepreneurial
enterprise. So far the fund has raised $15 million. As an example,
Ms. Novogratz cited the Affordable Hearing Aid Project, which has received
$400,000 from the Acumen Fund and others to manufacture and sell a $42 hearing
aid in India. A comparable device would sell for $1,500, Ms. Novogratz said.
Though given as a grant, she said, the money is structured like an investment
in a startup, with milestones and benchmarks to track progress. Acumen Fund
investors do not expect a financial return. "But millions of people are getting
access to a technology they wouldn't otherwise have," Ms. Novogratz said,
"and for many, that social return is as compelling as a financial return."
The view from traditional philanthropists is surprisingly positive.
Dr. Richard Rockefeller, a physician and longtime philanthropist (he is the
son of David Rockefeller), said he admired the pluck of people like Mr. Gross,
even envied their experience. "I've often thought, `Wouldn't
it be nice just to go be an entrepreneur,' or to do that first and get a
grip," he said. Dr. Rockefeller, the chairman of the United States advisory
board of the international aid group Doctors Without Borders, said he had
encouraged his own two children "to go get a skill and do it before they
go out and change the world." And rather than view the new batch
of engaged social activists cynically, Dr. Rockefeller gives them the benefit
of the doubt. "It's very nuanced," he said. "Some people don't know what
to do with themselves. Others have gotten a vision and want to act on it.
They're getting a life." Not all the good works come from those who have abandoned the high-tech world. Some come from those who are still in it.
The latest version of the MoneyMaker, a decidedly low-tech leg-powered irrigation
pump, was created by a company called ApproTEC, a nonprofit organization
that develops and markets new technologies in Africa. It was designed in
part by volunteers at Ideo, an industrial design firm in Palo Alto known
for the sleek Palm V organizer and the Crest Neat Squeeze toothpaste tube.
Since the first MoneyMaker pump was introduced in Kenya in 1996, it has increased
the average annual income among farmers there who use it from $120 a year
to $1,400, according to Martin Fisher, a co-founder of ApproTEC.
Ideo helped design the newest pump, a deep-well version that went on the
market in Kenya last month, at no charge to ApproTEC. Some 40 Ideo employees
volunteered in the evenings and on weekends for nearly a year.
"The pump is real, and helping real people," said Ben Tarbell, the 28-year-old
Ideo project manager who oversaw the pump's design. Not everyone
is embracing high-tech solutions like Mr. Kamen's water purifier, or even
more rudimentary technology like the ApproTEC pump. John Wood, 39, quit his
high-paying management job at Microsoft around the time the Nasdaq market
peaked in March 2000, and started Room to Read, a nonprofit group that brings
books, libraries and schools to poor Asian countries. Since its
start, the group has built 33 schools and 400 school libraries, delivered
more than 200,000 books and financed 122 scholarships. "For
the price an American pays for an S.U.V. or a new Lexus, we could build six
schools in Nepal," Mr. Wood said, sounding a bit like a commercial for Save
the Children. "For the amount that a wealthy banker spends on a pair of shoes,
we could take a girl out of the orphanage, put her in a school uniform, give
her a book bag and some pens, and send her off to school." But
will the commitment last? What will happen if disillusionment sets in at
the slow pace of social change? Or if the next technology boom arrives?
One speaker at the TED conference elicited an appreciative laugh from the
audience when he told of a bumper sticker he had spotted recently in Silicon
Valley. It read, "Please God - Just One More Bubble." Mr. Wood,
for one, said he had no plans to abandon his project no matter what happens
in the high-tech business world. "I plan to sit out the next bubble," he
said. "I don't care if the Nasdaq goes to 20,000. I'll be in Nepal delivering
books to villages on the back of a yak."
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