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The second reality is the growing threat from Iran. This is both geopolitical and religious, given that Iran is the pre-eminent Shia power. The growth of the power of Iran and its clients in the Middle East is a potentially mortal threat to the House of Saud because the population of the part of Saudi Arabia that has the great bulk of the oil reserves has a predominantly Shia population. Faced with this threat it makes sense to bury the hatchet with Israel, on the classic foreign policy realist basis of ‘the enemy of my enemy is my friend’. In addition the Saudis have to think about the challenge posed by Erdogan’s clear aim of restoring Turkey to its position as the paramount Sunni power. Given that Israel and Turkey have become much less aligned than before that’s another reason. I’ve only been in one start-up that shut down instead of getting acquired and I can tell you it wasn’t for lack of trying.

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We raised a ton of angel and went to get our first VC round in fall of 08, or as the VC’s were calling that time period, nuclear winter. Our cash on hand plus some new sales revenue allowed us to last a couple more quarters, but we laid off most of the company in March and there was a skeleton crew (myself included) trying to sell the company for a few months after that. This was a horrible, soul crushing experience. The few that remained had all kinds of great ideas about how to get enough support for a more limited but semi-profitable venture, but that’s not really what the investors had signed up for. What the investors were absolutely ready for was waiting for the company to finish dying before they could try and resuscitate it with newer, more favorable terms. I declined to be part of this, along with the other principles, and it never happened.

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