Arthur Rock

Arthur Rock
Arthur Rock
Born	August 19, 1926 (age 100); Rochester, New York, U.S.
Occupation(s)	Entrepreneur, investor
Years active	1951–present
Known for	Early investment in Intel, Apple, Scientific Data Systems, Teledyne; co-founder of Davis & Rock venture capital firm

Arthur Rock (born August 19, 1926) is a prominent American entrepreneur and investor operating out of Silicon Valley, California. He played a pivotal role as an early backer of influential companies such as Intel, Apple, Scientific Data Systems, and Teledyne.

Early life

Rock was born in Rochester, New York into a Jewish family and grew up as an only child. His father owned a modest candy shop where Rock spent time working during his childhood. Although he enlisted in the U.S. Army during World War II, he did not see active deployment before the conflict ended. Utilizing benefits from the G.I. Bill, he completed a bachelor's degree in business administration at Syracuse University in 1948, followed by an MBA from Harvard Business School in 1951.

Career

Starting his professional journey in 1951, Rock worked as a securities analyst in New York City before moving to the corporate finance division at Hayden, Stone & Company. There, he focused on securing capital for emerging high-technology enterprises. In 1957, when the group known as the "traitorous eight" departed from Shockley Semiconductor Laboratory, Rock played a crucial role by convincing Sherman Fairchild to back the formation of Fairchild Semiconductor.

In 1961, Rock moved to California and co-established the venture capital firm Davis & Rock in San Francisco alongside Thomas J. Davis Jr..

By 1968, innovators Robert Noyce, Gordon Moore, and Andy Grove were prepared to found a new enterprise, Intel. Noyce reached out to Rock, who promptly secured $2.5 million through convertible debentures from private investors prior to finalizing formal agreements. Intel was officially incorporated on July 18, 1968, with shares allocated among Noyce, Moore, and Rock. Rock assumed the position of Intel's inaugural chairman.

In 1978, through an introduction by Mike Markkula, Rock met Steve Jobs and Steve Wozniak. He acquired 640,000 shares of Apple Computer and maintained a long-standing role as a board member.

Rock’s financial backing and strategic insight were instrumental in founding and guiding companies such as Intel, Apple, Scientific Data Systems, Teledyne, Xerox, Argonaut Insurance, AirTouch, the Nasdaq Stock Market, and Echelon Corporation.

Venture capital

In the 1950s, structuring venture capital investments often involved collaboration among several entities amid rapid industry growth. Arthur Rock, recognized as a Silicon Valley pioneer for his involvement with Fairchild Semiconductor, is credited with popularizing the term "venture capitalist," which has since become standard terminology in business finance.

Rock's law

Named after Arthur Rock and Gordon Moore, Rock's law observes that the expense of constructing a semiconductor chip fabrication facility approximately doubles every four years. By 2023, this cost has escalated to nearly US$20 billion.

This principle complements Moore's law, which notes that transistor counts on integrated circuits double roughly every two years. The rising capital demands emphasized by Rock's law underscore the semiconductor sector’s expansion, fueled by innovative products whose profits support increasingly sophisticated large-scale integration technologies.

Philanthropy

In 2003, Rock contributed $25 million to Harvard Business School, leading to the creation of the Arthur Rock Center for Entrepreneurship. Alongside his wife Toni, he established the Arthur & Toni Rembe Rock Center for Corporate Governance at Stanford University. Rock co-founded The Basic Fund, where he also held the position of president; this organization offers scholarships enabling children from inner-city areas to attend private K-8 schools. Additionally, he holds board memberships with Teach For America and Children's Scholarship Fund and is a committed supporter of KIPP.

Rock has been a significant financial backer of education-focused political initiatives, having supported more than 30 school board campaigns across the country. In 2021, he provided over $500,000 toward the 2022 San Francisco Board of Education recall elections.

Awards

2007 – American Academy of Arts & Sciences Achievement in Business, Corporate, and Philanthropic Leadership
2002 – Harvard Business School Association of Northern California’s Business Leader of the Year
2001 – Visionary Award from Software Development Forum
1999 – Inducted into Private Equity Hall of Fame
1999 – University of California Lifetime Achievement in Entrepreneurship & Innovation
1997 – Arents Award, Syracuse University
1995 – California Business Hall of Fame inductee
1989 – American Academy of Achievement Golden Plate Award
1987 – EY Entrepreneur of The Year Award, Northern California Region
Medal of Achievement from American Electronics Association
Junior Achievement Hall of Fame member
Bay Area Business Council Hall of Fame inductee

Personal life

Rock is married to attorney Toni Rembe. Together, they have been benefactors of Teach For America, which honors them by naming its annual Social Innovation Award after the couple.

In the 2013 biographical film Jobs, actor J. K. Simmons portrayed Arthur Rock.

External links

Gordon Moore and Arthur Rock Oral History Panel interview, July 2014, California