Spend 2012 on the Right Side of the Haimish Line
Occasionally on this blog I break away from industry commentary and write more broadly. The first day of 2012 seems the perfect day to do so. One of the most important articles I read during the entire year was David Brook’s op-ed article on “The Haimish Line.” In it Brooks talks about his recent trip to [...]
Should Startups Focus on Profitability or Not?
There are certain topics that even some of the best journalists can’t fully grok. One of them is profitability. I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” I mention journalists here because they perpetuate [...]
The Amazing Power of Deflationary Economics for Startups
I’m often asked by people what investment areas interest me. It’s true that I have a functional focus on three areas: Performance-based marketing, digital television and mobile computing. I try to invest in things that I know and that I believe I might have better knowledge and relationships than the masses of VCs. I have [...]
Let Me Introduce Myself
I am a big believer in VC pitches that the bio slide should come up front. Actually, I think the advice in this post applies to any sales meeting also. The short answer is that by knowing the key members of the management team the VC firm can quickly identify strengths on your time and [...]
Why I’d Rather Err on the Side of Direct Feedback Than Pleasantries
A few weeks ago I was reading a blog post by MG Siegler that really struck a chord. The title was “The Jerk,” which is a reference to both the Steve Martin film but more precisely to Robert Scoble’s interpretation of Steve Jobs having just read his biography. The gist of MG’s argument is that [...]
We Have Only Scratched the Surface of the True Value of Twitter. Here’s What You’re Missing
I have written extensively about Twitter in the past. I still find that many people don’t understand the basics. If you consider yourself a newbie, please check out a group of posts that I’ve done in the past that might make you feel more comfortable with what is unique about Twitter. In this post I [...]
Why You Should Ban Laptops & iPads at Board Meetings
I haven’t had too many board meetings lately so I want to get this timely post out now lest somebody think I’m talking about their company or board in particular. This is a post about ALL boards. Back when I ran board meetings as a CEO, the biggest annoyance was Blackberrys. You would always be [...]
Why Startups Should Pay Attention to Herman Cain’s 9-9-9
This is intended to be an apolitical post so if you want to get into a political debate in the comments you’re missing the point. Herman Cain. He’s sorta lovable. He just says whatever he thinks and we expect politicians not to do that. He’s sorta like a crazy uncle. He says out loud that [...]
The Controversial First Role to Hire After Your A Round
I’ve thought a lot about team construction of early stage companies. I was once asked on Quora what my idea startup team would be. I wrote the following: “I like to invest at the seed or A round. My ideal team is simple: Assuming 6 people 1. 5 engineers 2. 1 CEO who doubles as [...]
Lead, Follow or Get the Fuck Out of the Way
Today’s post courtesy of the Dave McClure school of vocabulary. About a month ago I was meeting with a seasoned entrepreneur. After 10 minutes I felt like we were old buddies because we had both been through the trenches of startup tech land and had had similar experiences. He was recounting one of his higher [...]
Creating the Next Generation of US Employees. My Investment in Treehouse
I’ve just completed an investment in Ryan Carson’s new company, TreeHouse. It meets everyone of my criteria so I thought I’d elaborate. 1. I’m investing heavily in Internet video. Why? Americans watch 5.3 hours of television / day – many age groups are even more. We read less than an hour / day. I know readers [...]
Understanding How Dilution Affects You at a Startup
Dilution. Or as industry insiders call it, “taking a haircut.” Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore [...]
Never Ask a Busy Person to Lunch. Here’s Why:
OK. I know with a title like that I’m going to subject myself to people thinking I’m just being a grumpy, exclusive VC. That’s not the point. It’s honest advice so please judge once you’re read the post. I’ll keep it short. Meals or coffee are a great way to build rapport with other people [...]
Why You Should Embrace Opposing Views at Your Startup
What could you learn from looking at your competitors or other tech startups in a different way? Are you cynical about their chances in the market just because they seem to be hot in the press and that bugs you? Or you think their startup is a passing fad and yours is the real deal? [...]
Netflix Redux: Is It Ever OK to Fire Your Customers?
A month ago I applauded Reed Hasting’s bold decision to split his business into two components. Today he’s announcing that they’re backing out of this decision. Netflix as a service has always prided itself on movie recommendations that are tailored specifically to you plus user ratings on the quality of films. So let me use [...]
