And when I say “sign”, I mean it literally. This is what Silicon Valley looks like at the moment:

Those signs are everywhere. Mountain View. Palo Alto.

I hear that in other parts of the country, a depression is still going on. Europe is gloomy.

Not here. If you are a software developer and are not making $100K/year in salary, you should know that it’s the going rate today for junior engineers in the valley. I’m not promising you it will last forever, and you probably will be shocked by the cost of living, but you deserve to know and make your own choice.

Should you join an incubator such as Y-Combinator, the Founder Institute or TechStars? Or just go out on your own and raise money like Brian Wong (Kiip) just did at the sweet age of 19? That was the topic of the Incubator panel at the Founder Conference, with Ivan Kirigin of TipJoy (YCombinator Alumni), Lecole Cole of Skydera (Founder Institute Graduate) and Emily Olson of Foodzie (TechStars Alumni).

Beyond discussing underage drinking and how good the food is, we covered more serious topics such as: is giving away equity worth the experience, what you are really gaining in return, and more.

Enjoy the 45 minutes of open discussion.

More videos of the Founder Conference coming soon.

Then the real fun began: of the 12 startups pitching, there would only be one winner, determined jointly by the audience of 200 and the panel of VC judges, among which Jeff Clavier of SoftTech VC and George Zachari of Charles River Venture. The rules: 3 minutes to pitch, then the judges score the presentation on a 1 to 5 scale (1 being very bad, 5 meaning they’d like to invest). Then the audience votes.

In the first round, 6 startups pitched and the first finalist emerged very quickly: Snap Shop(*). They impressed the audience with a strikingly simple demo. Virtual reality on your cell phone finally had a useful (and profitable) use. Buying furniture is now geeky again. Stay tuned as they launch very soon.

After a break, the last 6 startups pitched. The quality was even higher. Breakthrough demoed a very impressive platform for online mental health counseling. Given the stigma associated with mental health issues, going online makes a lot of sense. But it’s eVenues, which lets you book meeting places online, that qualified as the second finalist.

It was now time for the showdown: both finalists answered questions from the judges, which allowed the investors to dig deeper into their business model, how they planned on making money, and details of how the product worked.

By 11pm, it was time for the 4 judges to vote. eVenues got the first two votes, which guaranteed they couldn’t lose anymore. Then Snap Shop got the next vote. And the next. It was a tie (2-2)! That wasn’t planned, so Adeo, the organizer called for a show of hands, which wasn’t conclusive either: the audience was quite divided. Eventually, the judges judged the show of hands, and eVenues was declared the winner.

What an evening! A lot of very smart entrepreneurs and top-notch investors in the same room, very high-quality presentations, and a lot of fun. [Adeo, you get a 9 (out of 10)]. I’ll be attending the next Founder Showcase for sure.

(*) Disclaimer: I hope I have a vested interest in their success through my participation in the Founder Institute.

Don’t expect to drop by and pick up a check from a wealthy investor. Relationships take a long time to build and who knows you is still a key element to success.

So what is the best approach for someone out of town to spend some quality time in the Valley?

Where To Go

These are the top events to attend. Plan your trip accordingly:

1. Startup2Startup: organized by Dace McClure, this event has great speakers that will always get you to think about how to make your startup better. I always take away several great pieces of advice. But the crowd is also the best I have seen in Silicon Valley. 80% are CEOs of startups. No one is trying to sell you services. The event does a great job of combining an informal mixer, a formal presentation, and a directed discussion with smaller groups.
   
   When: last Thursday of the month
   Cost: $80 ($40 for startup rookies)
   Speakers:
   Networking:
   
2. Churchill Club: one of the more respected gatherings in Silicon Valley, it attracts excellent speakers. Compared to Startup2Startup, the attendance is definitely more conservative. If you are trying to meet VP and directors from established companies, this would be the place. Informal networking is average: the organizers don’t make any particular efforts to help you meet people, so make sure you brush up on your cocktail skills.
   
   When: depends
   Cost: $60+
   Speakers:
   Networking:
   
3. SDForum Startup SIG: SDForum is one of the larger non-profit organizations in the region and it organizes more than 10 events each month. Of particular interest to entrepreneurs is the Startup special interest group (SIG). It gathers a smaller crowd compared to Startup2Startup and Churchill Club. Speakers vary in quality but are usually good. The crowd is a mix of service providers (trying to sell you stuff – annoying), fellow entrepreneurs and software developers. It’s quite informal, cheap, and a great way to get started with meeting people in the Valley.
   
   When: third Monday of the month
   Cost: $15
   Speakers:
   Networking:
   

Those organizations don’t hold regular meetings but whenever they do, you should definitely try to attend: Y Combinator and TheFunded.com.

Also, European associations (France, Germany and others) get together regularly and organize meetings with broad appeal.

Those events gather people who actively want to meet new faces. If you wonder where all the people who are done with their startup go, check out the Computer History Museum. It’s a small valley secret.

Professional conferences such as OSCON, JavaOne or Web 2.0 are a good place to meet people, but registration tends to be expensive — sometimes up to $3,000 per person. A trick for entrepreneurs on a budget is to register for the free exhibit instead. A lot of the parties, awards and functions are accessible to people with the free badges.

Where To Stay

I assume you are currently bootstrapping your business and every dollar counts. Staying in hotels can become expensive quickly. Instead, make a few friends online. Many people in Silicon Valley believe in karma and are glad to help fellow entrepreneurs.

By staying at a friend’s place for a few days, you also increase your chance of making valuable informal contacts. All it takes is finding someone who shares your interests. When they involve starting a business, Silicon Valley is packed with people who want to help.

True story: A friend of mine met another entrepreneur on a flight back from Paris. The entrepreneur looked like an interesting fellow and he needed a place to stay, so I invited him to use my guest room a few days later. That’s a fairly typical story for Silicon Valley.

Repeat

Try not to be a one-time visitor. You stop by, you present an interesting story, but then you disappear. Don’t make that mistake. It’s better to come for a shorter period of time, say a week at a time, but then come back every few months, than stay once for a month and then go home forever. Again, relationship building takes time. Plus, coming for a shorter amount of time is probably less disruptive for your own plans at home.

Get to know Silicon Valley and come back more and more as you feel appropriate. Maybe eventually you’ll do the big jump and decide to move here permanently. You will know when it’s the right time.