Episode 141 - Interview with Paul Terrell, The Byte Shop - Part 2

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Hello, and welcome to episode 141 of the Floppy Days Podcast, for July, 2024.  I am Randy Kindig, your host, as always, for this historical perspective on obsolete-but-still fun technology.

This month I’m bringing you a follow-on interview episode from last month.  As we discussed then, Paul Terrell is a name well-known in the annals of computer history; probably most famously for his kickstart of Apple Computer through the purchase of one of Steve Jobs’ and Steve Wozniak’s first batches of Apple I computers for his Byte Shop.  The Byte Shop was a very early computer store that was one of the few that existed in the world, at the time.

In this interview, we continue to focus primarily on The Byte Shop, how it got started, what it was like, and much more.  There will be even more content in future episodes, as Paul and I had a pretty lengthy discussion on just this topic.  If you want to know what it was like to run a computer store in those early days, this is the interview for you!  Along the way, you’ll learn even more about just what the home and hobby computer scene was like in those days.

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Interview with Paul Terrell

• (3) Apple-1 Prototype Polaroid Photographs Given to Paul Terrell of the Byte Shop in 1976 - https://www.rrauction.com/auctions/lot-detail/348985606984001-steve-jobs-3-apple-1-prototype-polaroid-photographs-given-to-paul-terrell-of-the-byte-shop-in-1976/?cat=3 

• Ray Borrill’s Data Domain blog - https://www.landsnail.com/thedatadomain/remember.htm 

Transcription of Audio-only

Paul Terrell: Now eventually we did get to the point where we needed some legal assistance and we were once again, being in the heart of Silicon Valley, you would network with people.  My salespeople knew a guy by the name of Larry Sonsini, who was a a lawyer in Palo Alto, and he happened to be the lawyer that had taken Intel public and Larry was very interested in what Byte Shop was doing because he was representing legally a lot of the electronics companies that were getting into personal computing. So Larry and I developed a friendship where we got together and I was able to convince him, since we were just a startup to be a little bit lenient with his legal fees and provide us with some legal assistance. And of course, Larry expanded his business right along with us. And he's actually the dominant legal firm in Silicon Valley. He's taken most of the companies public out there. He very much focused in the area of public markets and finance and that kind of thing.  He grew his company and now he has a huge complex of buildings, a campus and in Palo Alto, which in the old days, it used to be called Wilson, Mosier and Sonsini and I think Mosier dropped out of the program, Rosati came in and so forth, but those were good, contacts to have you know in the marketplace because once again relationships. I met Bob Noyce from Intel who was the founder, one of the founders, of Intel and through Larry's relationship and friendship. Another person that was really dominant in the success that we had at Byte Shop was Regis McKenna. And Regis was one of the people that had come out of the semiconductor business.

Paul Terrell: He was over at National. Had watched their success and as those semiconductor companies were going public and Larry was taking them public they were they were also a source for a lot of technical people, good management, technical people being able to cash out of the success that they had with the startup company they were involved with to where they created a venture capital market in Silicon Valley and San Francisco.

Paul Terrell: And prior to that happening, there was very little funding available and actually the initial seed capital that came in for Apple was from Art Rock and Art Rock was a venture capitalist from New York City. So a lot of early startup money that was available to any kind of business was really New York is the center of finance; nobody's bigger than New York and Chicago does well in the mercantile business, but you know in commodities and so forth, but New York is where the big money was and there was really nothing in San Francisco other than some federal entities that the federal reserve was there and so forth, but and there was standard banking, going on.

Paul Terrell: Wells Fargo was headquartered there and so forth, but these people weren’t seed capital people these people weren't providing funding for new business and of course there was a ton of new business going on. As a result of all of these semiconductor outfits and so forth.

Paul Terrell: So we were seeing a lot of new growth and one of the one good example of a venture capital startup was Don Valentine. And he was the first seed money into Apple along with Art Rock because Art's problem was he was located in in San in New York but he needed to have somebody out here that was looking after his money.

Paul Terrell: So a lot of these venture capital people, and actually the big financial institutes from New York would team up with these new technical venture capital people. Coming out of the semiconductor companies and Tom Perkins is a good example. Perkins Kleiner. These were semiconductor guys that got involved with venture capital and Tom was one of the guys that I talked to about when Byte Shop got to the point where we needed ad