Relativity was one of the most profiled companies in prominent American and international publications a few years ago but people who have followed the company's rise were surprised at the changes at the top level and legal battles at the company. What happened?
I built one of the most successful companies in the enterprise software industry. In fact, Relativity received worldwide recognition and in 2001, a top business magazine named it one of the world's 25 'coolest' companies. Like all other tech players, the dot-com crash hit us hard.
To make ends meet, we had to lay off good employees and raise more money. We believed so much in our company that my management team and I personally invested the first $1 million in a $5 million round of financing. After we succeeded in getting back to solid growth and profits, I decided to take a much-needed vacation.
It must have been the lack of Internet access on my Caribbean cruise that led to a massive heart attack. I woke up in the hospital glad to be alive. While still in the Critical Care Unit, I received a phone call saying that my investors felt the need to renegotiate the terms of the current financing. Two days later and still bandaged, I left the hospital and walked, uninvited, into a closed-door meeting, where investors were trying to convince my executive team to accept more money for a revised agreement that would give them majority ownership. I flatly refused, and ended the meeting.
My friends sent me lots of 'get well' flowers. My investors sent me a letter demanding that I step aside and allow the younger brother of a partner in one of their firms to take over the company I had founded, built with most of my life savings, and paid for with a cardiac arrest. For the next few months, I spent what little energy I had fighting people I formerly held in high regard.
Fortunately, that chapter of my life story had a happy ending. I won critical battles, kept control of Relativity, and eventually recruited a new chief executive officer to take over from me. I also took my doctors' advice to do something less stressful than fight venture capitalists for a living, and regained my health.
I kept my role as chairman of the board, but decided that my chief priority was to make up for lost time with my family and to give back to the community and work in a field where I could use all the knowledge I had gained in a productive way. Academia has proven to be a wonderful experience. I still believe ethics and integrity abound in this world, and fresh ideas are welcomed, and one can make a real impact.
How did you start at Duke? And did the issues of globalization come up in your classes there?
After I stepped down at Relativity and was looking for new avenues to give back to the community at large, I accepted the offer at Duke University to advise students on their career choices, lecture in classes, conduct research, and work with the faculty to better prepare our students for the real world.
Based on my experiences as a technology CEO, there were two surprises in store for me in my discussions with students: The first was that some students were worried about having their jobs outsourced. They asked a question that I couldn't answer: What courses would lead to the best job prospects and what jobs were outsourcing proof?
The second was that 30 to 40 percent of Duke's master's of engineering management students were accepting jobs outside of the engineering profession. They chose to become investment bankers or management consultants rather than engineers. This was a surprise as I had always believed that there was a shortage of engineers. I had expected that students from top engineering schools such as Duke's Pratt School of Engineering would take their pick of the best engineering jobs. After further discussions with students, I learned that some saw more opportunity and expected better salaries in non-engineering fields. They were headed towards the greenest pastures. I decided to research this topic.
Image: The Duke University's East Campus. Wadhwa says even students at the elite engineering school, where he teaches, are worried about outsourcing. Photograph: Sara D Davis/Getty Images
Also read: Five decisions that changed India
Advertisement
