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Top Ten #53DAC Highlights

Top Ten #53DAC Highlights
by Tom Dillinger on 06-13-2016 at 12:00 pm

Here is a very subjective list of the Top 10 logistical and technical highlights from DAC’53.

(10) With DAC attendance down from its peak days, the Austin Convention Center served as an excellent venue. There was good participation from companies with design centers in the “Silicon Hills”. And, I saw colleagues from Silicon Valley, SoCal, and overseas who made the trip, as well. Kudos to the DAC Committee and sponsoring companies for the free parking!

(9) SWAG is actually an acronym, short for Souvenirs, Wearables, And Gifts.

I’ve never really understood why exhibitors give away pens, stuffed animals, stress-relief squeeze balls, even drumsticks. Then again, since I’m mentioning it, I guess this form of advertising works.

(8) The $99 Design + IP Track registration fee is a great deal.

Although 15 minutes is perhaps a bit too short for many Design Track presentations, there is an opportunity to follow up with the presenter at the evening poster session. Now that the conference Proceedings are distributed electronically, it would be nice if the Design Track and IP Track slides were available for review prior to the conference, rather than posted afterwards.

(7) The committee needs to establish better guidelines and standards for presentation charts – there are still simply too many slides that are illegible from the back of the room.

(6) The keynote from Professor Ken Shepard at Columbia Univ. was fascinating. The potential to harvest (and store) electrical energy by controlling biological cell membrane ion transport to power electronics could open up new opportunities, despite the very low duty cycle of actual computation to energy charging.

(5) As you might imagine, the growth of electronics in automotive applications was a prevalent theme of the conference. And, not all the focus was on autonomous driving. Monday’s keynote from Lars Reger at NXP provided several illustrations of advanced inter-vehicle and infrastructure communications that would also provide significant benefit.


Take the NXP “RoadLINK” feature. For example, you’re likely aware that race cars draft behind a leader to save fuel – consider the fuel-saving benefits of a set of freight trucks linking into a “platoon” (or “convoy”, for you old-time CB’ers). A rather aggressive distance is maintained between the trucks, enabled by syncing up to the forward vision and braking controls of the lead truck.

And, if the infrastructure were in place, stoplight timing in a city would be adjusted to green light the oncoming platoon. (Here’s a link for more info.)

I concluded there are lots of technology options in the automotive area with significant ROI, but am also anxious about the tremendous coordination required in this country among political and industry organizations to address the corresponding costs and schedule. (Europe seems to be well ahead of the U.S. in this regard.)

Coincidentally, this month’s issue of IEEE Spectrum has an enlightening article about the emerging concerns about vehicle manufacturer and driver liability in a world with increasing automotive automation (especially, relative to the vehicle software). I was optimistic that my car insurance rates would go down in the future – now, I’m not so sure. 🙂

(4) IP security was also a major topic of discussion. Clearly, the IP providers are concerned about the potential loss of revenue due to IP theft, and the loss of traceability for edits to (configurable) IP variants.

One paper I attended presented a proposal for collaboration between IP providers and tool developers, to support the use of encrypted IP models. The presenter reminded the audience that encryption will be needed across the gamut of models. He highlighted that encryption would not only apply to functional verification and synthesis, but also the full DFT tool suite. (I’m still trying to get my head around an encrypted fault diagnosis tool.)

(3) On the EDA vendor exhibit floor, electrical analysis of SoC’s was the hot topic.

It should be no surprise to regular Semiwiki readers that I*R power distribution voltage drop and power/signal ElectroMigration (EM) are critical sign-off steps in current fab processes.

Specifically, to prevent long iterative loops between implementation and electrical analysis, the physical design platform needs to integrate “in-design” analysis engines, ideally with corrective recommendations provided to physical designers.

(2) To address the burgeoning IoT application market, it should also be no surprise that power management and power optimization techniques were front-and-center. Several designs had adopted increasingly complex clock grid/tree distribution methods, with multi-level gating circuit topologies.

Of note was that these clock networks had to be successfully managed across multiple hierarchical levels of the physical floorplan, and (ideally) with commonality across multiple instances of the same core IP.

The handling of global signal/clock buffering and routing passing through and around block designs remains an intricate data management problem.

(1) And, to me, perhaps the most exciting announcement at DAC could be found at Samsung’s exhibit, where they were demo’ing an SoC with an integrated magnetoresistive (MRAM) memory array. This very unique and attractive technology option will be available from Samsung Foundry in 2018 – look for another Semiwiki article on this announcement shortly.

DAC has certainly evolved throughout the years. It remains the most important event for our industry, to learn of the newest developments – whether that be new foundry technologies, new EDA vendor tool features, or unique and interesting design approaches. The glimpse into active research and its potential future applications is pretty cool, too.

See you at DAC’54 in Austin next June.

-chipguy


The Evolution of Emulation

The Evolution of Emulation
by Bernard Murphy on 06-13-2016 at 7:00 am

Mentor hosted a panel on emulation in their booth at DAC this year. One thing I really liked about this panel is that it didn’t include anyone from Mentor. Not that I have anything against Mentor employees, who are a fine bunch of people from those I know, but I find panels most interesting when the discussion is purely among customers. Lauro Rizzati moderated, which is a bit of a cheat, since he consults for Mentor, but moderators don’t do much of the talking, so I’ll count it as a customer panel.

Lauro opened with a quick history of emulation, starting with in-circuit-emulation (ICE) mode, later moving to more general application in simulation acceleration which then evolved to transaction-based emulation, followed by virtualization and then increasingly adding application areas like power modeling, network modeling and more. What he wanted to do was to explore how this broad range of usage is evolving among 3 of Mentor’s customers: Rick Leatherman (Director of developer tools at Imagination Technologies), Guy Hutchison (VP of hardware engineering at Cavium) and Alex Starr (Fellow at AMD) – left to right above, with Lauro rightmost.

Alex said that AMD has been using emulation for many, many years. They started in ICE mode but have evolved to transaction-based and hybrid models, both at the IP and system levels. He added that software-driven verification increasingly demands use of emulation. Guy said that Cavium uses emulation all the way through the design cycle and they use it purely in virtual mode. ICE mode is not practical since they don’t feel there is any way to generate realistic traffic from hardware. Rick said Imagination/MIPS has been using emulation for many years, starting in ICE mode, now moving to transaction-based.

Alex added that they still do a lot of simulation – both full-chip and IP. They do more emulation work at the platform level, as a part of the never ending effort to shift left. Software and firmware teams have been using emulation for a long time for this reason, and are increasingly using emulation in hybrid mode. Guy said Cavium only uses emulation for full-chip verification, which they break into 3 phases: performance verification, software bring-up and validation and post-silicon validation (back-porting silicon problems into emulation for debug). For Rick, bringing up software as fast as possible is very important. While most of us view Imagination as an IP company, increasingly they are providing more complete systems with software stacks for IoT markets, where system with software validation and power modeling become essential.

On ICE versus virtual modeling, Alex felt these complement each other and hybrid modes continue to be relevant. He cited a hard disk device as an example of a component still best modeled in ICE. But he and others agreed that virtual mode fixes a lot of problems – reliability, debug, remote access, easy sharing of resources and saving and replaying state (for debug). From Guy’s perspective, only virtual mode is practical – again they don’t feel it is possible in their application to model realistic traffic through hardware.

Lauro then asked about use of emulation in applications domains – power and DFT testing for example. Alex said they run both DFT and Design for Debug verification in emulation and have done for some time. Power analysis is becoming increasingly important, and the intersection between power and DFT – looking for peak power spikes in test mode – is a good example of of an area where emulation shines. Both Guy and Rick added that they are using emulation for power analysis.

Where does emulation not help? Everyone agreed that analog/RF modeling was out of scope today. For example, verifying memory training software with hardware models for DDR is something for which AMD has had to build internal solutions. Of course if you can extract digital models from analog blocks, some cases might be amenable to emulation, but hand-creating models for emulation just moves the problem to validating the accuracy of those models.

Overall an encouraging reality check on where emulation is at, where it’s headed and where there is still work to be done. Virtual is gaining ground fast, ICE still has its place and analog is still not a part of the solution. You can read more on Mentor’s view of the evolution of usage models in emulation HERE.

More articles by Bernard…


Six Reasons to Rethink Power Semiconductor Packaging

Six Reasons to Rethink Power Semiconductor Packaging
by Alex Lidow on 06-12-2016 at 8:00 pm

In my 40 years’ experience in power semiconductors I have visited thousands of customers, big and small, on every continent except Antarctica. When the issue invariably turns to the packaging of the power semiconductor – transistor, diode, or integrated circuit – the requests for improvement fall into six categories:
Continue reading “Six Reasons to Rethink Power Semiconductor Packaging”


3 reasons why diode-based ESD protection ruins the IoT experience

3 reasons why diode-based ESD protection ruins the IoT experience
by bkeppens on 06-12-2016 at 4:00 pm

The ‘Dual diode’ approach is one of the most used on-chip and off-chip concept for ESD protection of IO interfaces. It is simple to implement, smaller than any other IO/ESD concept, has a low parasitic capacitance and low leakage.
Continue reading “3 reasons why diode-based ESD protection ruins the IoT experience”


New NVIDIA Tesla M10 Could Drive Enterprise VDI Reassessment

New NVIDIA Tesla M10 Could Drive Enterprise VDI Reassessment
by Patrick Moorhead on 06-12-2016 at 12:00 pm

NVIDIA is well known for its leadership in graphics processors (GPUs) for gaming, but their business is quickly diversifying with significant growth in other areas like their datacenter and automotive businesses. Within the datacenter, NVIDIA has been evangelizing a vision for a number of years about the benefits of GPUs for accelerating workloads in high-performance computing and web-scale datacenters. The company has recently started to see traction for GPU acceleration in the datacenter business for applications like deep learning and artificial intelligence.


Graphics for all (Image credit: NVIDIA)

While these application areas are certainly growing, the market opportunity is still a relative niche within the overall datacenter market. In parallel to these efforts, NVIDIA looks to capitalize on a vision to target mainstream enterprise datacenters with their NVIDIA GRID solution for virtualized desktop infrastructure (VDI) through partnerships with virtualization software vendors like Citrix Systems, Microsoft, and VMware. With NVIDIA’s new Tesla M10, they are doing just that.

VDI is a virtualization technique that allows access to a virtualized desktop, which is hosted on a remote service over the Internet, by a client device. While this market has been around for a number of years, VDI could be a growth opportunity over the next few years driven by several key factors. Here are just a few of the important market drivers I see today.

First, a massive movement by enterprise IT to private clouds means a move away from a traditional client server model to a model where heavy computation and data storage happen in a central resource accessible by many users rather than just one. With this in mind, enterprise IT may consider VDI as an extension of the cloud model for certain uses cases.

Second, there is a direct relationship between acceptance of a VDI experience and the speed of the Internet. Look at what is happening with the 4G and LTE roll out. And also look at the backhaul improvements. Increased internet speeds equate to a better VDI experience, all things equal.

And last but certainly not least, there is a cultural shift in the workplace that is driving IT to do things differently. Millennials have entered the workforce in droves and have climbed the corporate ladder into key management positions. This generation expects to use any device from any location to access corporate information, which has accelerated the BYOD movement. Also, millennials have grown up in a technology centric world and will work or not work for a company based on how good their IT services and equipment are. This means that users want to access to technologies that provide the best user experience for their applications.

A few years ago, NVIDIA GRID was launched as a platform that allowed IT to bring virtualized graphics capability to more business users. When NVIDIA GRID was launched, graphics processing for business was a relative niche market for applications that required high-fidelity 3D graphics like EDA, CAD, simulation tools, and video editing workloads. But now, use of graphics acceleration is expanding to improve the experience of office productivity applications like Outlook, Office 2016, web browsers, Adobe Photoshop, and the Windows 10 operating system. And by some estimates, more than half of enterprise users access at least one graphics accelerated application. But providing client devices with dedicated GPU capability to large groups of knowledge workers does not make economic sense for enterprise IT.

One of the key drivers for the use of GPU acceleration in a VDI environment will be giving mainstream IT organizations the right economic models to provide this capability to business users. With this in mind, NVIDIA GRID uses a “good, better, best” approach that allows IT to carve up the GPU resources based on need in a way that makes economic sense, with different offerings to target different user levels (knowledge workers, power users, designers). Today’s GRID announcement enhances this approach by bringing Tesla M10 as an offering in the GRID this fall, which will let IT provide more employees with virtualized graphics (up to 128 users per server) at a lower cost per user. In addition, NVIDIA is providing a new annual subscription pricing model for GRID that includes access to software upgrades for the life of the subscription. The annual subscription has the potential to provide a lower overall cost for IT over the traditional perpetual pricing model with starting costs as low as $2 per user per month for the basic service.

I think the time is right for IT organizations to reassess their VDI strategy. And NVIDIA’s “graphics for all” strategy with the NVIDIA GRID makes sense to help IT organizations use low-risk economic models to provide GPU acceleration capability to a wider range of business users.

More from Moor Insights and Strategy


AMD Brings More Console Features To PC Gaming

AMD Brings More Console Features To PC Gaming
by Patrick Moorhead on 06-12-2016 at 7:00 am

Advanced Micro Devices made a big press splash when they won all three major game console platforms. Their presence inside the Microsoft Xbox One, Sony PS4 and Nintendo Wii U has benefited the company financially at the operating income level and has governed how they design their future GPUs. As Advanced Micro Devices has remained with the GCN architecture, present inside of all three consoles, it would seem that Advanced Micro Devices would have had a built-in an advantage into their GPUs for the PC gaming space. You see, the X86 CPU instruction is the same and platforms also share APIs and tools more than ever. This advantage has been touted by the company for quite some time now, but they have been challenged to transfer the benefits of these design wins to the PC gaming space. With AMD’s new feature called “Shader Intrinsic Functions”, a new feature pulled directly from the console space, this could change.


Image credit: AMD

Mantle was the first step
Advanced Micro Devices’s first attempt to harness this console advantage was the creation of Mantle which gave PC developers low-level access to Advanced Micro Devices hardware and enabled console-like direct hardware metal. While Mantle wasn’t perfect, it did get implanted in a few games before it was eventually integrated into an industry standard now known as Vulkan. I believe Mantle was also the timing driver for Microsoft DirectX 12. Vulkan takes many, but not all of Mantle’s features and ideas and implements them cross-platform allowing mobile GPUs and desktop GPUs to share the same APIs and improved, low-level access.

Shader Intrinsic Functions
As a result, Advanced Micro Devices is introducing many new features within their GPUOpen program to enable more low-level access to hardware in a console-like development environment. If you are unfamiliar with GPUOpen, I wrote on that here. AMD is introducing the support for what is called “Shader Intrinsic Functions” or built-in functions which allow the developer to directly access graphics hardware instructions. This access is granted to developers in situations where they would normally be abstracted by a higher level API, or not available at all. Advanced Micro Devices likens this to embedding optimized machine language code into higher-level code.

Intrinsic functions are only useful if game developers know they can rely on them to exist in future hardware and that they will be able to gain direct access through hardware-specific code paths throughout the generations. Because Advanced Micro Devices has stuck with GCN, they make it possible for developers to invest in the use of built-in functions and improve performance. By enabling developers to utilize these new capabilities, Advanced Micro Devices is once again finding ways to enable their hardware to experience performance gains without any changes to their hardware whatsoever.

In addition to improving performance on Advanced Micro Devices GPUs, the addition of intrinsic functions into GPUOpen also improves the compatibility of this feature. Because the addition of intrinsic functions is expected to run as a part of GPUOpen and exist on the PC platform, it will be supported in all the major PC APIs including Microsoft DirectX 11, DirectX 12 and even Vulkan.

By having intrinsic functions work inside of all these graphics APIs, AMD is really making it an attractive play for developers that want to squeeze out that extra performance but maybe don’t want to be limited to a single set of APIs if they want to recycle or repurpose code. As far as we can tell, NVIDIA also has support for intrinsic functions inside of their GPUs as well, but they seem to be more focused on CUDA code and not for game development.

Wrapping up
Advanced Micro Devices’s introduction of intrinsic functions into GPUOpen is the start of the company really delivering on their promise of benefiting from all of the console design wins. It is also the concretization of the GPUOpen philosophy to enable console-like access to the PC platform. Sure, Advanced Micro Devices has made a lot of operating income from building the consoles, but when you consider how many console ports end up on the PC, there is no doubt that there should be some level of translation of that to AMD‘s benefit.

There’s unfortunately no way for us to test these features since they have to be implemented by game developers first, so we will have to wait and see. We may finally start to see AMD’s benefits from the console design wins come to fruition with these new intrinsic functions and I expect that this isn’t the end of such features coming to GPUOpen and that we can expect more to come relatively soon. AMD has a video on the new feature if you want to check it out.

I like this play from AMD and hope to see more like it in the future.

More from Moor Insights and Strategy


The CyberSecurity Emperor Has No Clothes

The CyberSecurity Emperor Has No Clothes
by Bill Montgomery on 06-11-2016 at 7:00 am

In the past year, I’ve written numerous articles that have a common theme: the security world is badly broken as crypto schemas developed in the 90’s are no defense for today’s sophisticated hackers. For the most part, my blogs have been very well received, and have been picked up and posted by multiple sites and publications worldwide. However, I’ve also been harshly criticized by some readers who stated in so many words that I was “crying wolf,” or behaving like the beloved Chicken Little (The sky is falling! The sky is falling!).

Well, I’m not one to shout “I told you so” when theories or treatises that I’ve communicated are validated, but in this case, I’m doing just that. Not because I want people to know that what I and many others have been saying is correct, but that because we are correct, the connected world as we know it is about to become a highly vulnerable, dangerous place – and those with the power to make change need to do so and quickly.

I know. So far, I’m writing more of the same. But this time around, my views are backed up by researchers at the University of Toronto. In an eye-opening article published on yournewswire.com by Baxter Dmitry, he writes about:

“a breakthrough that is possibly the biggest event in computer science and financial services for 50 years.” And what does this breakthrough mean?
The articles sub-title says it all…

All current banking transactions, digital signatures, network communications, credit and debit card transactions, not to mention personal communications have been compromised.

You can read Dmitry’s insightful story here.

What do all of the above applications have in common? They all are “protected” by encryption security that relies on a known, secret prime that until now has not been discovered. Now that it has been compromised, things could get ugly in our e-world, very soon.

If true, this means that the security of anything RSA (SSH, SSL, TLS, S/MIME, OpenPGP) and ECC is being called into question and may crumble at any time.

You can learn more about prime numbers and their role in the crypto world in this brief, informative video,

What’s the solution?

A cryptographic schema that utilizes random numbers and other elements, as opposed to the factoring of prime numbers as the underpinnings of its security. (Can you say IBE 3.0?)

To learn more about IBE 3.0 and its broad applicability, please contact me on Linkedin.


ARM sets up quagmire-free ecosystem for IoT

ARM sets up quagmire-free ecosystem for IoT
by Don Dingee on 06-10-2016 at 4:00 pm

Wandering around DAC this week, I found much of the discussion focused on the EDA community being at an inflection point. How do we get more design starts from new places with new ideas without jeopardizing existing business? It’s not as simple a transition as it sounds. Continue reading “ARM sets up quagmire-free ecosystem for IoT”


Driverless Policy Making

Driverless Policy Making
by Roger C. Lanctot on 06-10-2016 at 12:00 pm

The Vision Zero movement, embraced by Sweden and select U.S. and foreign cities around the world, continues to elude the grasp of U.S. Department of Transportation leadership. I was reading an impassioned letter to the President by Marianne Karth on the issue this morning – impassioned because Karth lost two daughters to a motor vehicle accident involving a truck lacking under-ride protection.

Karth points out President Obama’s ability to wax eloquent on the issue of highway fatalities – as he did during a recent PBS forum – yet his inability to enunciate any focus on reducing highway fatalities as a policy priority. In the PBS segment he contrasts the process of reducing highway fatalities over the years with technology and science with the inability to do the same to reduce gun violence. (PBS segment: http://tinyurl.com/z6zsn9t)

The concerns of Karth and millions of others regarding steadily rising highway fatalities (an 8% increase for 2015 is anticipated) are only inflamed by the fact that most political leaders in a position to do something about highway fatalities are actually driven wherever they go. The typical politician today is probably wondering what all the fuss is about driverless cars when their daily reality revolves around driverlessness.

The average senior politician in the U.S. or anywhere else in the world is driven wherever he or she goes. Much has been made of the fact that Democratic presidential candidate Hillary Clinton hasn’t driven a car in years. The same likely holds true for Republican hopeful Donald Trump.

How can these people appreciate the magnitude and urgency of the issue if they are completely removed from its immediacy. Highway fatalities rose in 2015, a clear signal that not enough is being done.

Yet even as we struggle to come to terms with more people dying in cars that are safer on roads that are safer and at a rate that exceeds the increase in the amount of driving, we must also decide how driverless cars will fit into the transportation mix. Again, our leaders don’t drive so the perception of the problem is clouded at the very top of policy making.

Consumer advocates want to limit public testing of driverless cars. Cities and states increasingly see driverless cars as a new tool to take on traffic woes and congestion and to democratize transportation and increase social mobility. So far the U.S. Department of Transportation has spoken out in support and sponsored legislation to fund research. So far so good.

But a commitment to Vision Zero is still missing – and the two issues are bound together. Driverless car technology is a piece of the Vision Zero puzzle and policy makers need to determine how that piece fits in.

Unlike the battle over gun violence ongoing in the U.S., there is no National Rifle Association standing in the path of progress toward reducing highway fatalities. Surely the auto industry recognizes the opportunity and the responsibility to take on this scourge.

Karth binds her thoughts into a five-point appeal:
“Would you (President Obama),in fact, make Traffic Safety a national priority–placing it on the list of important issues listed on whitehouse.gov and then do something about it, e.g.,:

[LIST=1]

  • Set a National Vision Zero Goal?
  • Establish a White House Vision Zero Task Force?
  • Sign a Vision Zero Executive Order to allow Vision Zero Rulemaking?
  • Get We the People involved in the action and the solution by promoting the development of a nationwide network of Traffic Safety/Vision Zero Community Groups?
  • Appoint a Traffic Safety Ombudsman who would oversee all of this and be an Advocate for vulnerable road users (which includes us all) —untainted by political pressures?”

    Things have gotten so bad that now, according to Automotive News, new cars are being sold with airbags subject to recalls. (NYTimes – Automakers Still Selling Cars with Defective Takata Airbags – http://tinyurl.com/jf6o4wv) More than 100 people are dying every day on roads in the U.S. and, according to the World Health Organization’s latest Global Status Report on Road Safety 700 are dying every day in China.

    This is a global problem calling for global initiatives. Karth shares this link for Vision Zero goals set by others around the world: https://en.wikipedia.org/wiki/Vision_Zero Wikipedia notes 14 U.S. cities that have established varying versions of Vision Zero goals. It’s time for the U.S. to step up and lead. This is no time for the U.S. to be in the backseat.

    Roger C. Lanctot is Associate Director in the Global Automotive Practice at Strategy Analytics. More details about Strategy Analytics can be found here: https://www.strategyanalytics.com/ac…e#.VuGdXfkrKUk


  • How crowdfunding can help save Silicon Valley from its harebrained investors

    How crowdfunding can help save Silicon Valley from its harebrained investors
    by Vivek Wadhwa on 06-10-2016 at 7:00 am

    There are fears that another Ice Age is about to hit Silicon Valley because of the implosion of its unicorns — start-ups valued at more than one billion dollars. By one estimate there were 229 such companies in January of this year. Their valuations are dropping precipitously because they were overpriced and overhyped. The fear is that venture capital will dry up and hurt the innovation ecosystem.

    In previous eras, such a setback to venture capitalists would surely have had a chilling effect on the innovation ecosystem because startups were dependent on their funding. But in today’s era of exponential technologies, there will hardly be a blip.

    To start with, the cost of building new technologies has dropped so significantly that inventors no longer need venture capital. The desktop computers, server farms, racks of hard disks, and enterprise software that were needed would cost hundreds of thousands, sometimes millions, of dollars. Today, there is on-demand computing and cloud storage — which can be purchased for almost nothing from companies such as Amazon, Google, and Microsoft. And tools such as sensors and 3D printers, which are needed for building sophisticated medical devices and robots, are inexpensive. What costs the most in Silicon Valley is rent and food. But you can share an apartment and live on pizza and ramen noodles.

    And instead of begging venture capitalists, angel investors, or friends for the $50,000-100,000 that it typically costs to start a technology company, founders can go directly to the people they are building their products for. They can post a video of a heart-felt pitch and demonstrate a prototype of their ideas on sites such as Indiegogo, Kickstarter and Plum Alley. If they get funded they’ll know they have a good idea; otherwise is time to go back to the drawing board and come up with something better.

    The crowd makes better decisions than venture capitalists do. With crowdfunding, there is direct feedback from the market and a strong connection between the inventor and the funder. The community of funders feels a sense of ownership for the product and helps spread the word. And there is no filter such as a venture capitalist who has his own race and gender biases and only invests in the same trendy technologies as other VC firms.

    The failure rate of crowdfunded projects is remarkably low. Three quarters of venture capital investments fail to return investor capital. Yet only 9 percent of crowdfunded projects fail to deliver on what they promised, according to Ethan Mollick of University of Pennsylvania –who researched 47,188 Kickstarter projects.

    When entrepreneurs take money from venture capitalists, they know that this is coming from deep pockets and is just a financial investment. When dealing directly with customers it is personal; so entrepreneurs put in extraordinary effort and spend their own money to fulfill their promises. This is what leads to better outcomes.

    One of the best examples of a technology that would not have seen the light of day without crowdfunding is virtual reality. As Mollick explained, this was largely ignored by traditional funders after it failed to gain traction in the 1990s. In 2012, a 19-year old Palmer Luckey, who had built a prototype of a virtual reality headset in his parent’s garage, launched a Kickstarter campaign for a commercial product. His goal was to raise $250,000 but there was so much demand that he ended up getting $2.4 million in orders. The product he later developed, Oculus Rift, was acquired by Facebook in 2014 for $2 billion. This set off a frenzy of funding by venture capitalists and greatly accelerated the progress of a world-changing technology.

    So far, there have been limits to what start-ups could offer the crowd. They could only pre-sell their product and offer perks such as T-shirts and badges. This is about to change.

    Starting May 16, the Securities and Exchange Commission is rolling out a new program that will allow private companies to use crowdfunding to sell securities — up to $1 million over a 12-month period. This was a provision of the 2012 Jumpstart Our Business Startups Act (or JOBS Act) to assist small companies with capital formation.

    Individual investors with less than $100,000 of net worth will be allowed to invest the lesser of $2,000 or five percent of their annual income or net worth. Wealthier individuals can invest up to 10 percent. The investment must, however, be through an authorized funding portal. These portals are required to vet the companies and let investors shop among offerings and discuss them online. They can’t offer investment advice, make recommendations, or solicit purchases.

    One of the first funding portals, Crowdfunder didn’t waste time in taking advantage of the new rules. It recently announced a VC Index Fund which offers an investment in a portfolio of hundreds of venture-capital backed startups. Crowdfunder chief executive Chance Barrett said his goal was to “allow everyday people to invest online alongside the world’s leading venture capitalists, while targeting a fund 10x more diverse, in the number of investments, than a traditional VC.” In other words, the public can become “super VCs.”

    It remains to be seen if equity crowdfunding achieves the same success as product crowdfunding. The stakes are now higher and the risks of fraud are much greater. But one thing is certain: the balance of power is rapidly shifting — from venture capitalists to entrepreneurs. This is a good thing because it will lead to a greater diversity of start-ups. And with a bit of luck, there will also be fewer over-priced unicorns and less wastage of investment capital — because the venture capitalists will follow the crowd.

    For more, follow me on Twitter: @wadhwa and visit my website: www.wadhwa.com