34-year-old startup vet Chris Kemp is back, with Nebula — taking risks and not mincing words

Chris Kemp on a recent visit to Nebula's Seattle offices, connected via video conference with Sumit Sharma, Nebula director of product marketing; Jose Guardado, director of recruiting; and Cole Crawford, director of technology.

At 34 years old, Chris Kemp has a resume that many would call a career — Silicon Graphics systems engineer, Classmates.com chief architect, founder of online grocery technology company Netran and online travel company Escapia, CIO at NASA’s Ames Research Center and most recently the space agency’s first CTO for information technology.

“I’ve been incredibly fortunate to be given the opportunity to take risks,” he explains.

Now Kemp is back in the private sector, taking more risks and applying the lessons he’s learned along the way. And he’s still not shy about sharing his opinions, as GeekWire learned in a recent conversation with him at the Seattle offices of his new technology startup.

Kemp is the CEO and co-founder of Nebula, a company developing an IT appliance that aims to make it easier and cheaper for companies to run “private clouds” — letting them scale up or down quickly by giving commodity servers behind the firewall an infrastructure more typical of public clouds from Amazon, Google and others, at a lower price than paying those providers by the bit.

Nebula faces no shortage of competitors. Companies including Cisco, EMC and VMware have banded together to offer their own alternative, for example, but Kemp pans that approach as a “gold-plated, incredibly expensive, pathetic excuse for a cloud.”

Nebula’s appliances, he says, will “strike the appropriate balance between buying the cheapest commodity infrastructure yet providing a really incredibly reliable, scalable infrastructure service layer that sits on top of it.”

“What we’re trying to do is we’re trying to make it possible for CPUs, discs and memory — things that store bits, flip bits and move bits — to be 99 percent of the cost of your infrastructure,” he says. Nebula, he explains, is all about reducing the “commercial software and metal and crap you have to wrap around raw commodities.”

The company is an outgrowth of Kemp’s work at NASA and his role, at the agency, in the OpenStack cloud computing project.

Nebula currently has about 30 employees, and should easily grow to at least 50 over the next year, Kemp says. It’s currently conducting pilots of its appliance. It hasn’t announced pricing, but Kemp promises it will be “incredibly disruptively priced.”

The company is based in Palo Alto, with funding from some of the major players in the Silicon Valley investment community: Kleiner Perkins Caufield & Byers and Highland Capital Partners, along with Google’s first investors: Andy Bechtolsheim, David Cheriton and Ram Shriram.

Nebula also has a sizable presence in Seattle, and has recruited key employees from Amazon and Microsoft.

“I think I found the perfect recipe, which is to get a company funded down in the Valley and then put a large presence in Seattle,” Kemp said. “It’s Nebula’s secret weapon.”

Why does he prefer that approach?

“There is no comparison at all between the Seattle VC community, if you could call it that, and Silicon Valley,” Kemp says. “I’ve spent a lot of time trying to raise money here, and raised some money here. The relationships and the interactions I had with the VCs here are completely different, night and day, black and white, from the guys down in Silicon Valley.”

In what way? “It’s almost as if VCs in Seattle don’t want to take risk, at all,” he says. “They have to understand everything in a way that you’ve removed all risk from the equation before they invest.”

On the other hand, he says, “The tech community is phenomenal. There are a lot of really smart engineers here, and a lot of them came out of Boeing or had parents who came out of Boeing and did interesting things. … The University of Washington is a little like Stanford. They’ve got a fantastic CS program. I think the area attracts a lot of talent that leaves and does companies.”

The code name for Nebula was Fourth Paradigm Development, a nod to the work of Jim Gray, the Microsoft researcher who was lost at sea in 2007. Gray predicted that data-intensive science would become a fourth paradigm of scientific exploration.

Kemp explains: “I think every business over the next 10 years or so is going to reach a point where they really embrace data, and as they get to that point, they’re going to look very hard at how much they’re spending on their infrastructure. And when they get to that point, that’s when our phone rings. It’s expensive to do it the old-fashioned way.”

  • http://www.twitter.com/wesleyzhao Wesley Zhao

    It sounds like Chris is saying that the VC scene is much better down in the Valley, but Seattle is just as good (if not better in some cases) for hiring talent and growing out a company. I would have to say I generally agree with that notion.

    From my (very limited) experience, I definitely feel VC’s here in Seattle are 1) less in numbers and 2) more risk averse. It does feel like they have been less willing to jump aboard without some sort of proof that things are already going smoothly. Whereas in the Valley people seemed gung-ho about finding a great team and a great opportunity space. 

    In terms of Seattle being as great a place as the Valley to grow a company, I would also have to agree with that. I feel the talent here may be less in volume, but the lower competition between startups hiring that talent makes up for that. Also, as Zuck pointed out in his talk at Startup School, people in the Valley are very short-term minded and more likely to move from company to company. Whereas employees in the Seattle area might be more likely to staying loyal to one company. Although I have no facts to back this up.

    I think I would feel 100% comfortable following Chris in his method of raising money and starting up in the Valley then growing into Seattle (or maybe even moving entirely).

  • Doug Dorrer

    Interesting. Former NASA CTO, experience with NASA Cloud Computing, now private sector developing cloud computing technology named after the NASA Nebula Cloud Program.

  • Bill Bryant

    As one of those pathetic, lazy, risk averse Seattle VCs that apparently wouldn’t give Mr. Kemp the time of day I wish him the best of luck in his new startup.  But I do get more than a little tired of comparing the Seattle venture capital scene to the Bay Area.  Over 80% of the venture dollars are base in Silicon Valley; the Bay Area consistenly accounts for 1/3rd to 50% of all venture investments.  So no, Seattle is not as vibrant a startup community as is the Bay Area.  We also aren’t as vibrant a movie making community as LA, nor do we turn out media, fashion, finance and advertising companies like NYC.  We’re also well behind in livestock rearing as compared to Kansas City.  Yet despite the fact that we’re lazy and risk adverse, and thus miss out on the Nebulas, Box.nets and Twilios of the world, its still a far better environment for startups than its ever been, and I daresay is better than life as an entrepreneur in any city not named San Francisco, San Jose or NYC.  I hope Nebula makes a lot of employees very wealthy so Seattle can one day earn Mr Kemp’s respect.

    • http://www.rescuetime.com Anonymous

      Well said, Bill.

      When I raised money 4ish years ago, Seattle and the Valley were indeed night and day.  Nowadays, I think that gap has closed a bit.  Seed stage activity and investment up here has increased dramatically.

      If TechStars and other seed activity in Seattle does what it’s supposed to do, we should have an increasing collection of companies that are good bets for Series A investment.

      On the other side of the coin, Silicon Valley is coming to Seattle…  Both in terms of satellite offices (Zynga, Facebook, etc) and investment (plenty of Valley firms are willing to look north for overlooked opportunities and better terms).

      Getting better is a marathon, not a sprint.  We need better/more CS grads, better/more seed stage investors, better/more A/B investors, etc.  More than anything, we need more funding-worthy startups with their HQs in Seattle…  All of that seems to be happening (with the exception of the type of folks that Chris Kemp is looking for– institutional investors with deep pockets don’t seem to be growing/getting more active up here with the possible exception of Ignition).

    • Ed Lazowska

      Well said Bill! Keep striving for better, but recognize what we’ve achieved!