Thinking of grandpa
My grandfather died on this date two years ago. He was a great man and I’ve been thinking about him all day. (As an aside, my wife pointed out that it would probably be a more appropriate to do this on his birthday rather than on the day he died, to which I responded that, as a Jew, it just feels right this way . . . )My grandfather was truly of the ‘greatest generation’ – growing up through the depression; dropping out of high school to help support his family where he was one of 11 children; eloping with my grandmother; serving in WWII; raising children; working a variety of jobs, but always making ends meet; enjoying retirement; taking care of his wife when she fell ill and eventually died; living life to the fullest. I was lucky to spend so much time with him – summers here in Colorado growing up and, more recently after I moved out here, frequent visits and our weekly breakfasts. I learned many great things from my grandfather. Among my favorites was a Yiddish saying that he taught me about embracing the path one is on (rather than what could have been). The (loose) transliteration is: …
May 27, 2005· 2 min read
Follow up to “Thinking in groups”
Writing this reminds me that there really should be a function in TypePad that allows you to simply elevate a comment to a post . . . Abhi responded to my post on Thinking in groups with the following comment, which was right on target: tohers), and thus assume that that the correct behavior was inaction). Let me expand on this in the context of venture capital, since I didn’t get into it in my original post. I think the pressur around conformity is significantly exacerbated for a non-partner VC . In a body of equals there’s clearly some pressur to go with the flow. Where the group is not all on equal standing this pressure is intensified. Clearly a key to being an effective VC is not falling into this trap. This can be particularly hard for a junior VC and especially if s/he is the observer rather than the board member (see my post on the difference here). I’ve watched this dynamic play out in front of me – where dissenting opinion, particularly of the partner, is absolutely not allowed. I think this is stupid way for partners to run their business – after all they pay th people around them to have opinions (thankfully Brad heartily agrees and encourages full participation from everyone around the table), but it happens all the time. How easy for groups (i.e., boards) to sometimes lean towards a similar interpretations of events” Borrowing liberally from Cialdini’s ‘Influence’ book – Social Proof – In any situation we are apt to behave exactly the same as other people behave (so board members will often look at other board members to decide how to react), and this is even stronger when the other people are similar to us (i’m assuming most board members are quite similar to each other). Ex: If there’s a red light but no traffic then one person crossing will usually lead to everyone else crossing. Ex: Comedy shows have canned laughter because that automatically means people laugh ‘along with’ the fake laughter. Ex: The chance of a wounded person getting help is higher if a single person were to see him than if a bunch of people saw him (as in the latter case these people would ALL see each other for reactions, see no response (as they’re all looking to
May 27, 2005· 2 min read
Thinking in groups
In one of my first posts (The Adventure Reference) I talked about what amounts to pattern recognition – the ability to interpret information and draw conclusions based on experience with similar sets of circumstances. I was thinking about how difficult this can be the other day and, importantly, how easy for groups (i.e., boards) to sometimes lean towards a similar interpretations of events. This reminded me of a classic experiment in psychology that very clearly illustrates this point. In 1962 psychologists Schachter and Singer 1962 performed an experiment that dealt with what they called the two factor theory of emotion. Basically they were trying to show that people’s interpretation of an emotive state can be easily influenced by environmental factors (in their case another person). In their experiment they injected college students with epinephrine, which is a drug that acts like adrenaline and causes a state of emotional arousal. The students were, of course, told the injection was something else and then placed in a room with someone they thought was also in the study to ‘let the shot take effect’. In actuality their room-mate was working for the experimenters and took on one of several emotional states (anger, excitement, etc). It turns out that the subjects were highly susceptible to taking on the emotional state of the room-mate. They were interpreting their emotional arousal as anger if the room-mate was angry, excitement if the room-mate was excited and so on. …
May 26, 2005· 2 min read
Sltashdotted for VCs
I got the VC equivalent of Slashdotted today when Daniel Primack of PE Week Wire referenced my “How to become a venture capitalist” post in his daily e-mail this morning. Traffic on my blog went crazy (it was already running a little high this week from that post – particularly after Brad and Fred each referenced it at my request). I’ve even had some publications ask me if they could reprint the article. Pretty cool stuff. …
May 24, 2005· 1 min read
Welcome Will Price to Blogging
I’m always encouraged when I see other non-partner VC’s blogging. As regular readers of this blog know, I’m using it in part to explore some of the differences between being a partner and being a non-partner in the venture industry. While there are a number of great VC partner blogs, there are many fewer non-partners writing (when I started VC Adventure there were almost none). We’ve added one more to the ranks recently – my friend Will Price from Pequot Ventures. I first met Will about 10 years ago when we were both analysts for Morgan Stanley. Like me, Will didn’t take well to banking and has traveled a somewhat circuitous path to his role at Pequot. He’s a smart guy (despite not yet linking to me in his blogroll ) and worth taking a look at. So Will Price – welcome to the blogosphere and to the world of VC blogging. I hope your posts are insightful and direct.
May 23, 2005· 1 min read
How to become a venture capitalist
I get asked this question a lot and while the real answer is “I have absolutely no idea,” I thought I’d make something up here so I at least have a place to send people who ask me this question (as well as anyone else who happens to stumble upon this blog searching for ‘getting a job at a venture capital firm’). This post is for aspiring analysts, associates and principals and has little to do withgetting a job as a partner (which I hope to figure out one day too . . .) …
May 20, 2005· 5 min read
Make original mistakes
“Make original mistakes.” Someone (Brad? Wendy? I can’t remember) said this in a board meeting about a month ago. I wrote it down on a piece of paper and have been carrying it around with me ever since. The concept is right on and meaningful no matter what you do. For me it is a reminder of two important things: First, we all have mentors and peer groups. As a venture capitalist, for example, I have the partners and principals at my firm; I have partners at other venture firms with whom I have worked with closely; I have the CEO’s and executives at the companies I work with; etc.. These are great resources for me to tap when I’m faced with challenges. Whether you work for a venture backed company, a large organization or a non-profit you there are people you can turn to for advice and counsel. Second, don’t be afraid to share your challenges with others. It’s only natural to celebrate our successes and dig in and think harder about where we’re coming up short. By all means, share the good news; but also share the not-so-good news and the challenges. Share them with your board, share them with your peers, share them across your executive team. Ask for help. Find people who have faced similar challenges. …
May 19, 2005· 2 min read
Time and place
I’m annoyed at the sate of the user interface for computing these days. It’s too hard to sync or share data across applications (the ‘suite’ concept for office seems to be missing completely – little app buttons in various programs or not) and it’s both annoying and difficult to get my computer to present information to me in the way I want it. I think the root of the problem is that there is no concept of relationship in (or god forbid, between) applications. I’m constantly typing information and then retyping or cutting and pasting it somewhere else. I can’t easily clip something from one work area and put it into another. Other than folders (which are painfully annoying and take forever to sync), there’s little concept of work-group or workspace in computing today. Here’s a great example, which both shows what a bone head I am as well as how far away from ideal we are. I missed a call this week. It was a short update call with one of the companies I work with, but still I missed it and it annoyed the heck out of me (which for me means that I’m its going to be on my mind for the next week). Here’s what happened: When I travel, I put information in my calendar in the time zone of the place where I will be that day, rather than in my ‘home’ time zone. To me, this just made sense – no need to adjust for where I was when looking at my calendar. Since there’s no way in Outlook to easily change between time zones this seemed like the best plan (although I really like their feature that allows you to place a second set of times on the left side of the screen – very very helpful and even better, only six short clicks away! [sarcasm intended]). The problem, which is what messed me up today, is that when someone sends me an invite it shows up in my home time zone, so I need to remember to change the meeting in Outlook to the time zone where I’ll actually be. I forgot to do this today, looked at the meeting time, assumed that it was in the calendar in pacific time and missed the meeting.Apparently somewhere between Office v1 and Office v11, no one ever figured out that time shifting is important. There’s no ability in Outlook Calendar to set different time zones for different days (let alone w/in a single day). There’s literally dozens of time zone options to choose from, but you can only display one at a time (other than the kluge I describe above) – there’s just no concept of shifting time temporarily. I would have thought software was more well thought out than that by now . . .
May 19, 2005· 3 min read
The state of the feed world
I’ve had Feedburner on the mind recently (my last post was on the company as well). I’m on my way back from our first post investment board meeting in Chicago as I type this and I had a chance to spend yesterday afternoon playing around with their system (read: see how many hits and how many subscribers are being served to various sites that have burned their feed). Lots of interesting data there. Feedburner is preparing a post on this, so I won’t steal their thunder, but I will share three data points that struck me: First, the number of subscribers to the largest feeds is pretty amazing – the top sites have literally hundreds of thousands of subscribers. Second, the growth of podcasts is pretty amazing – there were no podcasts in the top 15 a few months ago; now there are several. Finally, there are now few porn blogs that are starting to climb the list (I guess that was to be expected, although I was hoping the feed world would stay a little more pure than that). Interestingly based on their hits vs. subscriber ratios, it appears that these sites are having their contentscraped a lot vs. actually having subscribers to their feeds. …
May 15, 2005· 2 min read
Feedburner clarified
David Jackson, who is the author of The Internet Stock Blog (as well as a series of other blogs on investing and technology), was kind enough to add me to his recommended VC blog list. As part of our exchange about this I noticed that he hadn’t ‘burned’ his feeds through Feedburner (which is a Mobius backed company). I asked him why he hadn’t done this and he replied with some really good questions about their service. I thought I would reprint them here, along with my responses with the idea that if David, as a sophisticated blogger, had these questions other people probably do as well. …
May 14, 2005· 3 min read