I write often about my love of start-ups. And in truth, I really enjoy all stages of a company’s development – each for a different reason, of course (the early days, working closely with the founding team on product; mid-stage when maybe you’re helping with key management hires as the business scales; and later when hopefully the business has grown quiet large, working on strategic partnerships, overall strategy or maybe the sale of the business). And each stage has its own cadence (which, of course varies from business to business). Most of the time, it takes years to validate an investment thesis as companies work methodically through product launches, and the stages of scaling a business. It’s only after time…
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Hiring between portfolio companies – playing nice in the sandbox?
I put up a post this morning over on the Foundry Group site which I thought I’d repost here with some additional comments. It concerns whether companies in a shared venture portfolio should have any special rules of engagement about hiring from other companies in the portfolio. The question of whether Foundry has a “policy” around this has come up a few times and we wanted to clarify very clearly that we absolutely don’t (nor could we – not only would such a blanket rule be to the detriment of our portfolio, it would also likely be illegal). That said, I do know that a few of the CEOs in the portfolio have a “no poaching” policy when it comes to friendly companies….
I’m getting sick of the bullshit
I love the start-up world. I love working with founders and young companies. I love the excitement of working on business ideas that are new and different. I love seeing the success that often comes from this hard work. I’ve never before in my professional life seen a time of such innovation and creativity. At Foundry we see more business plans now than we ever have. And what’s more, more of those business plans are really interesting (and fundable). It goes without saying that I love the business of venture capital. I love helping entrepreneurs work on their ideas. And I love helping companies figure out how to become as successful as possible. I love the challenge of trying to…
Let’s agree to disagree
Is there much disagreement in your company? I’m not talking about where to head for lunch – I mean real, passionate, fundamental disagreement on product, marketing, operations, etc. I hope so. Even more so the earlier you are in your business. Running it is a messy business. There are tons of decisions to be made and each decision is amplified by factors such as your short runway of cash, new competitors entering the market and new team members joining your company. So a healthy amount of disagreement and discourse is not just a good thing, it’s inevitable. In fact I’d venture to say that if there’s not disagreement at your business, you’re not encouraging enough debate and people don’t feel…
Fight for your rights! American Censorship Day (that’s today!)
Today Congress is holding hearings on what, if passed, would effectively become a censorship system for the internet. The threat comes in the form of two bills, currently making their way through the legislative process – Protect IP Act (PIPA – S.968) and Stop Online Piracy Act (SOPA – H.R.3261). Below is a video that describes the bills and their potential impact (and you can read more at http://americancensorship.org/): PROTECT IP Act Breaks The Internet from Fight for the Future on Vimeo. The effective censorship of websites (by blocking or slowing access to them) is what I find particularly disturbing. We already have a fundamental access problem on the internet. As internet access becomes increasingly important to society – truly…
Trada… bringing crowdsourced marketing to Facebook
I’ve written a few times about Trada – a business that vastly simplifies search marketing for advertisers through a platform upon which Trada’s crowd of SEM experts build and manage campaigns on behalf of advertisers. The results to far have been impressive. The company has been helping advertisers increase the effectiveness of their search marketing and lower the amount of time required to manage search campaigns. And they’ve done this for companies spending as little as a few thousand dollars a month on search to as much as $500,000 per month. The result has been a rapidly growing company that is increasingly looking to expand the reach of its platform. Today Trada announced that it has expanded its marketplace to…
Trends in M&A Deal Terms
For the past several years Shareholder Representative Services (SRS) has been publishing aggregate data on trends in M&A. These aren’t just high level observations, but rather are nitty gritty, details around the some of the most important terms contained in purchase agreements. As a self proclaimed M&A geek, I live for this stuff. And if information is power, this study dishes out plenty. And as a result helps level the playing field for companies (who transact very infrequently), their investors (who transact a bit more often) and buyers (who often have dedicated M&A practices who do nothing but execute transactions). I’ve been fortunate to be involved in a number of Foundry related transactions in the past year. Knowing market trends…
What monks, chefs, lugers, singers, graffiti artists and actors all have in common
There’s a wealth of experience and expertise around us every day. We probably don’t give most people we pass running around our respective busy cities a second look, but rushing by you are people with interesting expertise and experience. Artists and actors; olympic athletes and monks; sailors and graffiti artists. SideTour looks to unlock this community and enable them to market and generate income off of their unique expertise. These experts – “hosts” in SideTour’s terminology – use the SideTour platform to advertise their experiences. SideTour helps them market these experiences and handles bookings, billing, refunds, etc. on their behalf. SideTour events are designed to be shared in groups – often people who haven’t met each other before the experience…
I’m a VC – Behind the Music
Yesterday we released a video written, produced and directed by my partner Jason, that attempts to capture “the human struggle of four venture capitalists trying to make the world a better place.” From the response on Twitter, Facebook and elsewhere on the web it seems to have hit a chord with people; and I hope has been taken for what it was intended – a parody of lives as VCs (certainly no one can accuse the four of us of taking ourselves too seriously!). It was for me a unique experience, not just creating the video but also recording in Jason’s studio and watching the editing and finishing process. For 5:56 of video (including outtakes) we spend hours recording and…
Should the current market environment change your fundraising strategy?
With the performance of the public markets looking like an EKG read-out, I’ve been asked frequently in the past two weeks what effect this will have on the venture financing market. How tied are private company valuations to the public markets? If you’re planning on raising money in a few months would it be better to go out now or better to keep your original plans? Should companies be altering their cash burn projections to become more capital efficient in the face of potential funding challenges? Here are a few thoughts: Generally it takes some time for public market declines to make their way down to the venture market. And while I’m sure you have an opinion about the current…