Pay me to do lead generation is a signature Gua Gua Guacamole recipe of mine.
It used to be that if you owned shares of a public company, you actually felt like you owned shares of that company. The concept of actual ownership by individuals is long gone. Shareholders as owners are nothing but a concept , and echo from days gone by.
That shouldn’t be a surprise. It’s just as rare for individuals with less than 10 figures in their networth to even consider actually buying shares as a path to ownership.
Bruce Li kicks butt.
But the guy is like a small Shanghainese dude the size of a Shih Tzu. He kicks massive ass. How does he do it?
Bruce Li says stuff like "resist like water," but here is how he does it: He uses you to kick your own butt.
Your strengths?! Hurt you.
I am co-teaching a class at Harvard Business School on entrepreneurship called "Launching Technology Ventures" along with my friend and colleague, Professor Tom Eisenmann. The class kicked off this week with two cases: Dropbox and Aardvark.
As I reflect on the class discussions, one of the interesting tension points that arose is the challenge an entrepreneur faces in selecting their primary product design approach. Should they follow the Steve Blank, Customer Development Process school of product development or the Steve Jobs "vision" school? In other words, should they pursue a user-centric design paradigm -- setting priorities based on rigorous tests and listening excercises that determine what users want -- or should they pursue a more top-down approach akin to Steve Jobs, who famously said: "It is hard to design by focus groups because most of the time people don't know what they want until you show it to them. "
The AlwaysOn X Fund portfolio advanced 3.4% last week, while the NASDAQ was up 1.1%, and the S&P 500 was up 0.1%. For the year, the AO X Fund is up 9%, the NASDAQ is up 8.1%, and the S&P 500 up 4.7%.
Consider two hypothetical restaurants: type one and type two.
Restaurant type one: Imagine yourself wandering the streets of a new city. You could be on Ocean Drive in South Beach, or Piazza Navona in Rome. You're thinking about dinner, and you come across a restaurant conveniently located on a busy stretch of street. Outside, it displays its panoply of meal choices in wax replica splendor, or "freshly cooked" under Saran wrap. On the sidewalk, an aspiring tan model flanks a manager-host, who wears a loud tie to go with the even louder voice he uses to solicit passersby. "Would you like to come in and eat 'world famous x'? Or maybe try the daily cocktail special?"
Six months ago I wrote a post about how I think about competition which included a list of topics that summarizes my philosophy. I covered the first item, Be The First Mover, but then went on to other things, like thinking about competitors every single day. I’m back today with the second topic, “Resegment If You Aren’t In The Top Three.”
If you look at the Foundry Group portfolio, you’ll notice a lot of market leaders. Zynga is the obvious one, but I’ll assert that there are many others, including AdMeld (now part of Google), Cheezburger, Fitbit, Gnip, Makerbot, Oblong, SendGrid, Topspin, Trada, and Urban Airship.
Now that I've completed three posts on The Management Team over the last three MBA Mondays, it's time for four or five guest posts on this topic. The first one is from Matt Blumberg, CEO of our portfolio company Return Path. I've been on Matt's board for over a decade and I've watched him develop into one of the finest managers I've had the pleasure to work with. Here are Matt's thoughts on this topic.
This post should be sung to the tune of The World Is A Vampire by the Smashing Pumpkins
“the world is a vampire, sent to drain
secret destroyers, hold you up to the flames
and what do i get, for my pain
betrayed desires, and a piece of the game
even though i know-i suppose i’ll show
all my cool and cold-like old job
The AlwaysOn X Fund portfolio advanced 0.7% last week, while the NASDAQ was up 2.8%, and the S&P 500 was up 2%. For the year, the AO X Fund is up 5.4%, the NASDAQ is up 7%, and the S&P 500 is up 4.6%.
A quote from my book, How to Win at the Sport of Business got picked up in multiple stories. In the book I stated effectively that “Startups should never hire a PR firm”. As you would expect, the PR Industry was not over-joyed at the comment. Articles were written about how incredibly valuable a good PR person can be to a startup.
Actually, I have no doubt that a smart PR person can add value to a startup. The problem is that all things considered, it’s not enough value.
Venture capitalists are notorious for not telling companies when they won’t invest, and worse, being enthusiastic about the company and the prospects of a deal for an extended period and then simply going quiet. It is unfair on startups when VCs behave like this as it wastes time (an entrepreneur’s most precious resource) and makes it harder to know when a fundraising process is failing and the company should change tack. Giving up on a fundraising process too late can be fatal for a business if it then doesn’t have enough cash left to pursue a different strategy.
Raising money is hard. And when you’re relatively new to the process it’s easy to be confused by the process. There is all sorts of advice on the Internet about how to raise capital. Of course much of it is conflicting.
I’ve raised money as a “hot company” and I’ve raised capital when no one would return my phone calls. I’ve raised in boom markets and when everybody thought the Internet was a fraud. I’ve raised seed rounds and A-D rounds. I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies.
Every entrepreneur has met them. Big company executives with big company swagger. They ignore you. They dismiss the business problem you spent your life solving. They think they can crush you.
Then the tables turn. They push for strategic relationships. They want to give you money, frequently at irrationally high valuations. Finally they shell out enough scratch to buy you.
This is the third and final post on the subject of the management team. The final phase of company development I am going to cover is "building the business." Building the business largely means building the management team. They are one and the same.
Many founders are naturally talented at building product and building the user base. But building the company comes harder to them. I once discussed this with Roelof Botha and he made a fantastic suggestion.
The AlwaysOn X Fund portfolio advanced 3.1% last week, while the NASDAQ was up 1.4%, and the S&P 500 up 0.9%. For the year, the AO X Fund is up 4.7%, the NASDAQ is up 4.1%, and the S&P 500 up 2.5%.
Supermodels can teach NFL quarterbacks about calling audibles in the real world.
So you've built and launched your product. It is well received. You've acheived "product market fit" and it is time to get more users or customers. You've graduated from the "building product" stage and have entered the "building usage" phase. What does this mean for your team?
Well first and foremost, it means you are going to have start building your team. You will need more engineers because you will have to scale the product/service and you will need to continue to build it out, make it available on more devices, and listen to and adapt to the needs of the market.
When you talk to CS-major CEOs about whether they are launching at SXSW, you will get all sorts of lukewarm feedback. They'll say SXSW is "too expensive" or "too competitive" or, more politically, "It's not the best allocation of money for our pre-funded startup." Promoting at SXSW is not hard for just CS majors. It is also hard for VCs, angel investors, and MBAs.
But with a decent dose of street smarts, a dash of fortitude, and a sprinkle of hustle, it is very possible to launch at SXSW for well under a grand—$870 bucks, to be exact.
At the onset of 2012, many start-up executives around the world are sticking their copy of Lean Start-Up on the shelf, leaning back, and bemoaning the fact that they have a new set of challenges ahead of them. Although there is a plethora of advice now being given about how to find product-market fit for your fledging start-up, there's a dirty little secret out there: once you've achieved product-market fit, the hard work really begins. Scaling is hard.
