Higher startup valuations are often favorable for all parties. High valuations show a business's potential. New customers and talent are attracted. They earn respect.

Everyone benefits if a company's valuation rises.

Founders and investors have always been incentivized to overestimate a company's value.

Post-money valuations were inflated by 2021 market expectations and the valuation model's mechanisms.

Founders must understand both levers to handle a normalizing market.

2021, the year of miracles

2021 must've seemed miraculous to entrepreneurs, employees, and VCs. Valuations rose, and funding resumed after the first Covid-19 epidemic caution.

In 2021, VC investments increased from $335B to $643B. 518 new worldwide unicorns vs. 134 in 2020; 951 US IPOs vs. 431.

Things can change quickly, as 2020-21 showed.

Rising interest rates, geopolitical developments, and normalizing technology conditions drive down share prices and tech company market caps in 2022. Zoom, the poster-child of early lockdown success, is down 37% since 1st Jan.

Once-inflated valuations can become a problem in a normalizing market, especially for founders, employees, and early investors.

the reason why startups are always overvalued

To see why inflated valuations are a problem, consider one of its causes.

Private company values only fluctuate following a new investment round, unlike publicly-traded corporations. The startup's new value is calculated simply:

(Latest round share price) x (total number of company shares)

This is the industry standard Post-Money Valuation model.

Let’s illustrate how it works with an example. If a VC invests $10M for 1M shares (at $10/share), and the company has 10M shares after the round, its Post-Money Valuation is $100M (10/share x 10M shares).

This approach might seem like the most natural way to assess a business, but the model often unintentionally overstates the underlying value of the company even if the share price paid by the investor is fair. All shares aren't equal.

New investors in a corporation will always try to minimize their downside risk, or the amount they lose if things go wrong. New investors will try to negotiate better terms and pay a premium.

How the value of a struggling SpaceX increased

SpaceX's 2008 Series D is an example. Despite the financial crisis and unsuccessful rocket launches, the company's Post-Money Valuation was 36% higher after the investment round. Why?

Series D SpaceX shares were protected. In case of liquidation, Series D investors were guaranteed a 2x return before other shareholders.

Due to downside protection, investors were willing to pay a higher price for this new share class.

The Post-Money Valuation model overpriced SpaceX because it viewed all the shares as equal (they weren't).

Why entrepreneurs, workers, and early investors stand to lose the most

Post-Money Valuation is an effective and sufficient method for assessing a startup's valuation, despite not taking share class disparities into consideration.

In a robust market, where the firm valuation will certainly expand with the next fundraising round or exit, the inflated value is of little significance.

Fairness endures. If a corporation leaves at a greater valuation, each stakeholder will receive a proportional distribution. (i.e., 5% of a $100M corporation yields $5M).

SpaceX's inherent overvaluation was never a problem. Had it been sold for less than its Post-Money Valuation, some shareholders, including founders, staff, and early investors, would have seen their ownership drop.

The unforgiving world of 2022

In 2022, founders, employees, and investors who benefited from inflated values will face below-valuation exits and down-rounds.

For them, 2021 will be a curse, not a blessing.

Some tech giants are worried. Klarna's valuation fell from $45B (Oct 21) to $30B (Jun 22), Canvas from $40B to $27B, and GoPuffs from $17B to $8.3B.

Shazam and Blue Apron have to exit or IPO at a cheaper price. Premium share classes are protected, while others receive less. The same goes for bankrupts.

Those who continue at lower valuations will lose reputation and talent. When their value declines by half, generous employee stock options become less enticing, and their ability to return anything is questioned.

What can we infer about the present situation?

Such techniques to enhance your company's value or stop a normalizing market are fiction.

The current situation is a painful reminder for entrepreneurs and a crucial lesson for future firms.

The devastating market fall of the previous six months has taught us one thing:

1. Keep in mind that any valuation is speculative. Money Post A startup's valuation is a highly simplified approximation of its true value, particularly in the early phases when it lacks significant income or a cutting-edge product. It is merely a projection of the future and a hypothetical meter. Until it is achieved by an exit, a valuation is nothing more than a number on paper.
   

2. Assume the value of your company is lower than it was in the past. Your previous valuation might not be accurate now due to substantial changes in the startup financing markets. There is little reason to think that your company's value will remain the same given the 50%+ decline in many newly listed IT companies. Recognize how the market situation is changing and use caution.
   

3. Recognize the importance of the stake you hold. Each share class has a unique value that varies. Know the sort of share class you own and how additional contractual provisions affect the market value of your security. Frameworks have been provided by Metrick and Yasuda (Yale & UC) and Gornall and Strebulaev (Stanford) for comprehending the terms that affect investors' cash-flow rights upon withdrawal. As a result, you will be able to more accurately evaluate your firm and determine the worth of each share class.
   

4. Be wary of approving excessively protective share terms.
   The trade-offs should be considered while negotiating subsequent rounds. Accepting punitive contractual terms could first seem like a smart option in order to uphold your inflated worth, but you should proceed with caution. Such provisions ALWAYS result in misaligned shareholders, with common shareholders (such as you and your staff) at the bottom of the list.

Ali's $1,054,053.74 YouTube Adsense haul.

YouTuber, entrepreneur, and former doctor Ali Abdaal. He began filming productivity and financial videos in 2017. Ali Abdaal has 3 million YouTube subscribers and has crossed $1 million in AdSense revenue. Crazy, no?

Ali will share the revenue of his top 5 youtube videos, things he's learned that you can apply to your side hustle, and how many views it takes to make a livelihood off youtube.

First, "The Long Game."

All good things take time to bear fruit. Compounding improves everything. Long-term work yields better returns. Ali made his first dollar after nine months and 85 videos.

Second, "One piece of content can transform your life, but you never know which one."

Had he abandoned YouTube at 84 videos without making any money, he wouldn't have filmed the 85th video that altered everything.

Third Lesson: Your Industry Choice Can Multiply.

The industry or niche you target as a business owner or side hustler can have a major impact on how much money you make.

Here are the top 5 videos.

1) 9.8m views: $191,258.16 for 9 passive income ideas

Ali made 2 points.

We should consider YouTube videos digital assets. They're investments, which make us money. His investments are yielding passive income.

Investing extra time and effort in your films can pay off.

2) How to Invest for Beginners — 5.2m Views: $87,200.08.

This video did poorly in the first several weeks after it was published; it was his tenth poorest performer. Don't worry about things you can't control. This applies to life, not just YouTube videos.

He stated we constantly have anxieties, fears, and concerns about things outside our control, but if we can find that line, life is easier and more pleasurable.

3) How to Build a Website in 2022— 866.3k views: $42,132.72.

The RPM was $48.86 per thousand views, making it his highest-earning video. Squarespace, Wix, and other website builders are trying to put ads on it and competing against one other, so ad rates go up.

Because it was beyond his niche, Ali almost didn't make the video. He made the video because he wanted to help at least one person.

4) How I take notes on my iPad in medical school — 5.9m views: $24,479.80

85th video. It's the video that affected Ali's YouTube channel and his life the most. The video's success wasn't certain.

5) How I Type Fast 156 Words Per Minute — 8.2M views: $25,143.17

Ali didn't know this video would perform well; he made it because he can type fast and has been practicing for 10 years. So he made a video with his best advice.

How many views to different wealth levels?

It depends on geography, niche, and other monetization sources. To keep things simple, he would solely utilize AdSense.

How many views to generate money?

To generate money on Youtube, you need 1,000 subscribers and 4,000 hours of view time. How much work do you need to make pocket money?

Ali's first 1,000 subscribers took 52 videos and 6 months. The typical channel with 1,000 subscribers contains 152 videos, according to Tubebuddy. It's time-consuming.

After monetizing, you'll need 15,000 views/month to make $5-$10/day.

How many views to go part-time?

Say you make $35,000/year at your day job. If you work 5 days/week, you make $7,000/year each day. If you want to drop down from 5 days to 4 days/week, you need to make an extra $7,000/year from YouTube, or $600/month.

What's the quit-your-job budget?

Silicon Valley Girl is in a highly successful niche targeting tech-focused folks in the west. When her channel had 500k views/month, she made roughly $3,000/month or $47,000/year, enough to quit your work.

Marina has another 1.5m subscriber channel in Russia, which has a lower rpm because fewer corporations advertise there than in the west. 2.3 million views/month is $4,000/month or $50,000/year, enough to quit your employment.

Marina is an intriguing example because she has three YouTube channels with the same skills, but one is 16x more profitable due to the niche she chose.

In Ali's case, he made 100+ videos when his channel was producing enough money to quit his job, roughly $4,000/month.

How many views make you rich?

Depending on how you define rich. Ali felt prosperous with over $100,000/year and 3–5m views/month.

Conclusion

YouTubers and artists don't treat their work like a company, which is a mistake. Businesses have been attempting to figure this out for decades, if not centuries.

We can learn from the business world how to monetize YouTube, Instagram, and Tiktok and make them into sustainable enterprises where we can hire people and delegate tasks.

Bonus

Watch Ali's video explaining all this:

This post is a summary. Read the full article here

Are MVPs outdated and have no place in modern product culture?

Frank Robinson coined "MVP" in 2001. In the same year as the Agile Manifesto, the first Scrum experiment began. MVPs are old.

The concept was created to solve the waterfall problem at the time.

The market was still sour from the .com bubble. The tech industry needed a new approach. Product and Agile gained popularity because they weren't waterfall.

More than 20 years later, waterfall is dead as dead can be, but we are still talking about MVPs. Does that make sense?

What is an MVP?

Minimum viable product. You probably know that, so I'll be brief:

[…] The MVP fits your company and customer. It's big enough to cause adoption, satisfaction, and sales, but not bloated and risky. It's the product with the highest ROI/risk. […] — Frank Robinson, SyncDev

MVP is a complete product. It's not a prototype. It's your product's first iteration, which you'll improve. It must drive sales and be user-friendly.

At the MVP stage, you should know your product's core value, audience, and price. We are way deep into early adoption territory.

What about all the things that come before?

Modern product discovery

Eric Ries popularized the term with The Lean Startup in 2011. (Ries would work with the concept since 2008, but wide adoption came after the book was released).

Ries' definition of MVP was similar to Robinson's: "Test the market" before releasing anything. Ries never mentioned money, unlike Jobs. His MVP's goal was learning.

“Remove any feature, process, or effort that doesn't directly contribute to learning” — Eric Ries, The Lean Startup

Product has since become more about "what" to build than building it. What started as a learning tool is now a discovery discipline: fake doors, prototyping, lean inception, value proposition canvas, continuous interview, opportunity tree... These are cheap, effective learning tools.

Over time, companies realized that "maximum ROI divided by risk" started with discovery, not the MVP. MVPs are still considered discovery tools. What is the problem with that?

Time to Market vs Product Market Fit

Waterfall's Time to Market is its biggest flaw. Since projects are sliced horizontally rather than vertically, when there is nothing else to be done, it’s not because the product is ready, it’s because no one cares to buy it anymore.

MVPs were originally conceived as a way to cut corners and speed Time to Market by delivering more customer requests after they paid.

Original product development was waterfall-like.

Time to Market defines an optimal, specific window in which value should be delivered. It's impossible to predict how long or how often this window will be open.

Product Market Fit makes this window a "state." You don’t achieve Product Market Fit, you have it… and you may lose it.

Take, for example, Snapchat. They had a great time to market, but lost product-market fit later. They regained product-market fit in 2018 and have grown since.

An MVP couldn't handle this. What should Snapchat do? Launch Snapchat 2 and see what the market was expecting differently from the last time? MVPs are a snapshot in time that may be wrong in two weeks.

MVPs are mini-projects. Instead of spending a lot of time and money on waterfall, you spend less but are still unsure of the results.

MVPs aren't always wrong. When releasing your first product version, consider an MVP.

Minimum viable product became less of a thing on its own and more interchangeable with Alpha Release or V.1 release over time.

Modern discovery technics are more assertive and predictable than the MVP, but clarity comes only when you reach the market.

MVPs aren't the starting point, but they're the best way to validate your product concept.

Research on preventing disease, extending life, and caring for your body from the inside out

Grapefruit and pomegranates aren't on the list, so ignore that. Mostly, I enjoyed the visual, but those fruits are healthful, too.

15 (or 17 if you consider the photo) different foods a day sounds like a lot. If you're not used to it  — it is.

These lists don't aim for perfection. Instead, use this article and the science below to eat more of these foods. If you can eat 5 foods one day and 5 the next, you're doing well. This list should be customized to your requirements and preferences.

“Every time you eat or drink, you are either feeding disease or fighting it” -Heather Morgan.

The 15 Foods That You Should Consume Daily and Why:

1. Dark/Red Berries

(blueberries, blackberries, acai, goji, cherries, strawberries, raspberries)

The 2010 Global Burden of Disease Study is the greatest definitive analysis of death and disease risk factors in history. They found the primary cause of both death, disability, and disease inside the United States was diet.

Not eating enough fruit, and specifically berries, was one of the best predictors of disease (1).

What's special about berries? It's their color! Berries have the most antioxidants of any fruit, second only to spices. The American Cancer Society found that those who ate the most berries were less likely to die of cardiovascular disease.

2. Beans

Soybeans, black beans, kidney beans, lentils, split peas, chickpeas.

Beans are one of the most important predictors of survival in older people, according to global research (2).

For every 20 grams (2 tablespoons) of beans consumed daily, the risk of death is reduced by 8%.

Soybeans and soy foods are high in phytoestrogen, which reduces breast and prostate cancer risks. Phytoestrogen blocks the receptors' access to true estrogen, mitigating the effects of weight gain, dairy (high in estrogen), and hormonal fluctuations (3).

3. Nuts

(almonds, walnuts, pecans, pistachios, Brazil nuts, cashews, hazelnuts, macadamia nuts)

Eating a handful of nuts every day reduces the risk of chronic diseases like heart disease and diabetes. Nuts also reduce oxidation, blood sugar, and LDL (bad) cholesterol, improving arterial function (4).

Despite their high-fat content, studies have linked daily nut consumption to a slimmer waistline and a lower risk of obesity (5).

4. Flaxseed

(milled flaxseed)

2013 research found that ground flaxseed had one of the strongest anti-hypertensive effects of any food. A few tablespoons (added to a smoothie or baked goods) lowered blood pressure and stroke risk 23 times more than daily aerobic exercise (6).

Flax shouldn't replace exercise, but its nutritional punch is worth adding to your diet.

5. Other seeds

(chia seeds, hemp seeds, pumpkin seeds, sesame seeds, fennel seeds)

Seeds are high in fiber and omega-3 fats and can be added to most dishes without being noticed.

When eaten with or after a meal, chia seeds moderate blood sugar and reduce inflammatory chemicals in the blood (7). Overall, a great daily addition.

6. Dates

Dates are one of the world's highest sugar foods, with 80% sugar by weight. Pure cake frosting is 60%, maple syrup is 66%, and cotton-candy jelly beans are 70%.

Despite their high sugar content, dates have a low glycemic index, meaning they don't affect blood sugar levels dramatically. They also improve triglyceride and antioxidant stress levels (8).

Dates are a great source of energy and contain high levels of dietary fiber and polyphenols, making 3-10 dates a great way to fight disease, support gut health with prebiotics, and satisfy a sweet tooth (9).

7. Cruciferous Veggies

(broccoli, Brussel sprouts, horseradish, kale, cauliflower, cabbage, boy choy, arugula, radishes, turnip greens)

Cruciferous vegetables contain an active ingredient that makes them disease-fighting powerhouses. Sulforaphane protects our brain, eyesight, against free radicals and environmental hazards, and treats and prevents cancer (10).

Unless you eat raw cruciferous vegetables daily, you won't get enough sulforaphane (and thus, its protective nutritional benefits). Cooking destroys the enzyme needed to create this super-compound.

If you chop broccoli, cauliflower, or turnip greens and let them sit for 45 minutes before cooking them, the enzyme will have had enough time to work its sulforaphane magic, allowing the vegetables to retain the same nutritional value as if eaten raw. Crazy, right? For more on this, see What Chopping Your Vegetables Has to Do with Fighting Cancer.

8. Whole grains

(barley, brown rice, quinoa, oats, millet, popcorn, whole-wheat pasta, wild rice)

Whole-grains are one of the healthiest ways to consume your daily carbs and help maintain healthy gut flora.

This happens when fibre is broken down in the colon and starts a chain reaction, releasing beneficial substances into the bloodstream and reducing the risk of Type 2 Diabetes and inflammation (11).

9. Spices

(turmeric, cumin, cinnamon, ginger, saffron, cloves, cardamom, chili powder, nutmeg, coriander)

7% of a person's cells will have DNA damage. This damage is caused by tiny breaks in our DNA caused by factors like free-radical exposure.

Free radicals cause mutations that damage lipids, proteins, and DNA, increasing the risk of disease and cancer. Free radicals are unavoidable because they result from cellular metabolism, but they can be avoided by consuming anti-oxidant and detoxifying foods.

Including spices and herbs like rosemary or ginger in our diet may cut DNA damage by 25%. Yes, this damage can be improved through diet. Turmeric worked better at a lower dose (just a pinch, daily). For maximum free-radical fighting (and anti-inflammatory) effectiveness, use 1.5 tablespoons of similar spices (12).

10. Leafy greens

(spinach, collard greens, lettuce, other salad greens, swiss chard)

Studies show that people who eat more leafy greens perform better on cognitive tests and slow brain aging by a year or two (13).

As we age, blood flow to the brain drops due to a decrease in nitric oxide, which prevents blood vessels from dilatation. Daily consumption of nitrate-rich vegetables like spinach and swiss chard may prevent dementia and Alzheimer's.

11. Fermented foods

(sauerkraut, tempeh, kombucha, plant-based kefir)

Miso, kimchi, and sauerkraut contain probiotics that support gut microbiome.

Probiotics balance the good and bad bacteria in our bodies and offer other benefits. Fermenting fruits and vegetables increases their antioxidant and vitamin content, preventing disease in multiple ways (14).

12. Sea vegetables

(seaweed, nori, dulse flakes)

A population study found that eating one sheet of nori seaweed per day may cut breast cancer risk by more than half (15).

Seaweed and sea vegetables may help moderate estrogen levels in the metabolism, reducing cancer and disease risk.

Sea vegetables make up 30% of the world's edible plants and contain unique phytonutrients. A teaspoon of these super sea-foods on your dinner will help fight disease from the inside out.

13. Water

I'm less concerned about whether you consider water food than whether you drink enough. If this list were ranked by what single item led to the best health outcomes, water would be first.

Research shows that people who drink 5 or more glasses of water per day have a 50% lower risk of dying from heart disease than those who drink 2 or less (16).

Drinking enough water boosts energy, improves skin, mental health, and digestion, and reduces the risk of various health issues, including obesity.

14. Tea

All tea consumption is linked to a lower risk of stroke, heart disease, and early death, with green tea leading for antioxidant content and immediate health benefits.

Green tea leaves may also be able to interfere with each stage of cancer formation, from the growth of the first mutated cell to the spread and progression of cancer in the body. Green tea is a quick and easy way to support your long-term and short-term health (17).

15. Supplemental B12 vitamin

B12, or cobalamin, is a vitamin responsible for cell metabolism. Not getting enough B12 can have serious consequences.

Historically, eating vegetables from untreated soil helped humans maintain their vitamin B12 levels. Due to modern sanitization, our farming soil lacks B12.

B12 is often cited as a problem only for vegetarians and vegans (as animals we eat are given B12 supplements before slaughter), but recent studies have found that plant-based eaters have lower B12 deficiency rates than any other diet (18).

Article Sources:

1. The Global Burden of Disease Study 2010 (GBD 2010)

2. I. Darmadi-Blackberry, M. Wahlqvist, A. Kouris-Blazos, et al. Legumes: the most important dietary predictor of survival in older people of different ethnicities. Asia Pac J Clin Nutr. 2004;13(2):217–20.

3. Guha N, Kwan ML, Quesenberry CP Jr, Weltzien EK, Castillo AL, Caan BJ. Soy isoflavones and risk of cancer recurrence in a cohort of breast cancer survivors: the Life After Cancer Epidemiology study. Breast Cancer Res Treat. 2009 Nov;118(2):395–405.

4. Y. Bao, J. Han, F. B. Hu, E. L. Giovannucci, M. J. Stampfer, W. C. Willett, C. S. Fuchs. Association of nut consumption with total and cause-specific mortality. N. Engl. J. Med. 2013 369(21):2001–2011.

5. V. Vadivel, C. N. Kunyanga, H. K. Biesalski. Health benefits of nut consumption with special reference to body weight control. Nutrition 2012 28(11–12):1089–1097.

6. D Rodriguez-Leyva, W Weighell, A L Edel,R LaVallee, E Dibrov,R Pinneker, T G Maddaford, B Ramjiawan, M Aliani, R Guzman R, G N Pierce. Potent antihypertensive action of dietary flaxseed in hypertensive patients. Hypertension. 2013 Dec;62(6):1081–9. doi: 10.1161/HYPERTENSIONAHA.113.02094.

7. Vuksan V, Jenkins AL, Dias AG, Lee AS, Jovanovski E, Rogovik AL, Hanna A. Reduction in postprandial glucose excursion and prolongation of satiety: possible explanation of the long-term effects of whole grain Salba (Salvia Hispanica L.). Eur J Clin Nutr. 2010 Apr;64(4):436–8. doi: 10.1038/ejcn.2009.159. Epub 2010 Jan 20. PMID: 20087375.

8. W. Rock, M. Rosenblat, H. Borochov-Neori, N. Volkova, S. Judeinstein, M. Elias, and M. Aviram. Effects of date (Phoenix dactylifera L., Medjool or Hallawi Variety) consumption by healthy subjects on serum glucose and lipid levels and on serum oxidative status: a pilot study. J. Agric. Food. Chem., 57(17):8010{8017, 2009.

9. Eid N, Enani S, Walton G, et al. The impact of date palm fruits and their component polyphenols, on gut microbial ecology, bacterial metabolites and colon cancer cell proliferation. J Nutr Sci. 2014;3:e46.

10. Li Y, Zhang T, Korkaya H, Liu S, Lee HF, Newman B, Yu Y, Clouthier SG, Schwartz SJ, Wicha MS, Sun D. Sulforaphane, a Dietary Component of Broccoli/Broccoli Sprouts, Inhibits Breast Cancer Stem Cells. Clin Cancer Res. 2010 May 1;16(9):2580–90.

11. Lappi J, Kolehmainen M, Mykkänen H, Poutanen K. Do large intestinal events explain the protective effects of whole grain foods against type 2 diabetes? Crit Rev Food Sci Nutr. 2013;53(6):631–40.

12. S. S. Percival, J. P. V. Heuvel, C. J. Nieves, C. Montero, A. J. Migliaccio, J. Meadors. Bioavailability of Herbs and Spices in Humans as Determined by ex vivo Inflammatory Suppression and DNA Strand Breaks. J Am Coll Nutr. 2012 31(4):288–294.

13. Nurk E, Refsum H, Drevon CA, et al. Cognitive performance among the elderly in relation to the intake of plant foods. The Hordaland Health Study. Br J Nutr. 2010;104(8):1190–201.

14. Melini, F.; Melini, V.; Luziatelli, F.; Ficca, A.G.; Ruzzi, M. Health-Promoting Components in Fermented Foods: An Up-to-Date Systematic Review. Nutrients2019, 11, 1189.

15. H. Funahashi, T. Imai, T. Mase, M. Sekiya, K. Yokoi, H. Hayashi, A. Shibata, T. Hayashi, M. Nishikawa, N. Suda, Y. Hibi, Y. Mizuno, K. Tsukamura, A. Hayakawa, S. Tanuma. Seaweed prevents breast cancer? Jpn. J. Cancer Res. 2001 92(5):483–487.

16. Chan J, Knutsen SF, Blix GG, Lee JW, Fraser GE. Water, other fluids, and fatal coronary heart disease: the Adventist Health Study. Am J Epidemiol. 2002 May 1;155(9):827–33. doi: 10.1093/aje/155.9.827. PMID: 11978586.

17. Fujiki H, Imai K, Nakachi K, Shimizu M, Moriwaki H, Suganuma M. Challenging the effectiveness of green tea in primary and tertiary cancer prevention. J Cancer Res Clin Oncol. 2012 Aug;138(8):1259–70.

18. Damayanti, D., Jaceldo-Siegl, K., Beeson, W. L., Fraser, G., Oda, K., & Haddad, E. H. (2018). Foods and Supplements Associated with Vitamin B12Biomarkers among Vegetarian and Non-Vegetarian Participants of the Adventist Health Study-2 (AHS-2) Calibration Study. Nutrients, 10(6), 722. doi:10.3390/nu10060722

His story will inspire you.

“Google search went down for a few hours in 2002; Jeff Dean handled all the queries by hand and checked quality doubled.”- Jeff Dean Facts.

One of many Jeff Dean jokes, but you get the idea.

Google's top six engineers met in a war room in mid-2000. Google's crawling system, which indexed the Web, stopped working. Users could still enter queries, but results were five months old.

Google just signed a deal with Yahoo to power a ten-times-larger search engine. Tension rose. It was crucial. If they failed, the Yahoo agreement would likely fall through, risking bankruptcy for the firm. Their efforts could be lost.

A rangy, tall, energetic thirty-one-year-old man named Jeff dean was among those six brilliant engineers in the makeshift room. He had just left D. E. C. a couple of months ago and started his career in a relatively new firm Google, which was about to change the world. He rolled his chair over his colleague Sanjay and sat right next to him, cajoling his code like a movie director. The history started from there.

When you think of people who shaped the World Wide Web, you probably picture founders and CEOs like Larry Page and Sergey Brin, Marc Andreesen, Tim Berners-Lee, Bill Gates, and Mark Zuckerberg. They’re undoubtedly the brightest people on earth.

Under these giants, legions of anonymous coders work at keyboards to create the systems and products we use. These computer workers are irreplaceable.

Let's get to know him better.

It's possible you've never heard of Jeff Dean. He's American. Dean created many behind-the-scenes Google products. Jeff, co-founder and head of Google's deep learning research engineering team, is a popular technology, innovation, and AI keynote speaker.

While earning an MS and Ph.D. in computer science at the University of Washington, he was a teaching assistant, instructor, and research assistant. Dean joined the Compaq Computer Corporation Western Research Laboratory research team after graduating.

Jeff co-created ProfileMe and the Continuous Profiling Infrastructure for Digital at Compaq. He co-designed and implemented Swift, one of the fastest Java implementations. He was a senior technical staff member at mySimon Inc., retrieving and caching electronic commerce content.

Dean, a top young computer scientist, joined Google in mid-1999. He was always trying to maximize a computer's potential as a child.

An expert

His high school program for processing massive epidemiological data was 26 times faster than professionals'. Epi Info, in 13 languages, is used by the CDC. He worked on compilers as a computer science Ph.D. These apps make source code computer-readable.

Dean never wanted to work on compilers forever. He left Academia for Google, which had less than 20 employees. Dean helped found Google News and AdSense, which transformed the internet economy. He then addressed Google's biggest issue, scaling.

Growing Google faced a huge computing challenge. They developed PageRank in the late 1990s to return the most relevant search results. Google's popularity slowed machine deployment.

Dean solved problems, his specialty. He and fellow great programmer Sanjay Ghemawat created the Google File System, which distributed large data over thousands of cheap machines.

These two also created MapReduce, which let programmers handle massive data quantities on parallel machines. They could also add calculations to the search algorithm. A 2004 research article explained MapReduce, which became an industry sensation.

Several revolutionary inventions

Dean's other initiatives were also game-changers. BigTable, a petabyte-capable distributed data storage system, was based on Google File. The first global database, Spanner, stores data on millions of servers in dozens of data centers worldwide.

It underpins Gmail and AdWords. Google Translate co-founder Jeff Dean is surprising. He contributes heavily to Google News. Dean is Senior Fellow of Google Research and Health and leads Google AI.

Recognitions

The National Academy of Engineering elected Dean in 2009. He received the 2009 Association for Computing Machinery fellowship and the 2016 American Academy of Arts and Science fellowship. He received the 2007 ACM-SIGOPS Mark Weiser Award and the 2012 ACM-Infosys Foundation Award. Lists could continue.

A sneaky question may arrive in your mind: How much does this big brain earn? Well, most believe he is one of the highest-paid employees at Google. According to a survey, he is paid $3 million a year.

He makes espresso and chats with a small group of Googlers most mornings. Dean steams milk, another grinds, and another brews espresso. They discuss families and technology while making coffee. He thinks this little collaboration and idea-sharing keeps Google going.

“Some of us have been working together for more than 15 years,” Dean said. “We estimate that we’ve collectively made more than 20,000 cappuccinos together.”

We all know great developers and software engineers. It may inspire many.