Note: This is part V of a five part series. Access the first installment HERE, part II HERE, part III HERE, and part IV HERE. What do Warren Buffet, Martin Luther King, John Wayne, Walt Disney, Harry Truman, Wayne Gretzky and Tony Hsieh all have in common? In addition to all of them reaching the pinnacle of their chosen professions, they also all started their careers performing the same job. All of these extremely successful individuals were paperboys.*
Messenger: Naval Ravikant, Co-Founder AngelList and Co-Maintainer Venture Hacks. Former Founder Epinions. Investor in Twitter, Foursquare, DISQUS, and (by Naval’s own admission) “a lot of other companies you have never heard of” Dharmesh Shah, Founder of HubSpot and of OnStartups, recently published a great post entitled, Raising Money On AngelList, which offers insights germane to my conversation with Naval. I recommend you first review Dharmesh’s article and then listen to Naval’s thoughts. You can watch my interview with Naval below or on YouTube here: http://www.youtube.com/watch?v=IkuXQAvaKgY What follows is a summary which paraphrases Naval’s responses. For his exact quotes, watch the video. Value Prop Twitter Style: AngelList is the productization of raising startup funding.
Note: This is part IV of a five part series. Access the first installment HERE, part II HERE, part III HERE, and part V HERE. “[Poker] exemplifies the worst aspects of capitalism that have made our country so great.” Walter Matthau, American Actor I have discussed in this series a number of books and games parents can share with their children which will cultivate an entrepreneurial mindset. As your child matures, games which involve; luck, strategy, probabilities and financial wagering reinforce a child’s ability to take calculated risks. Poker is one such game.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man." George Bernard Shaw, Irish Playwright, Co-founder, London School of Economics Entrepreneurs must be unreasonable in order to dismiss the status quo and create novel solutions. However, an irrational lack of reasonableness will sabotage an entrepreneur’s efforts. In the following video, I explain how emerging entrepreneurs can develop the confidence, courage and conviction necessary to know where and when it is appropriate to be unreasonable.
“It's not hard to make decisions when you know what your values are.” Roy Disney, American Entrepreneur I recently gave some advice to a software engineer who was trying to decide between two startups. My advice is was not earth shattering, but the engineer was appreciative nonetheless. He must have read my Thank You entry, as he later sent me an awesome selection of beer and wine as an expression of his gratitude. I have summarized my straightforward counsel below, in the hopes that it might help someone else who is in the advantageous position of selecting between multiple startup opportunities.
US High School students are taught that Samuel Coleridge conceived one of the most anthologized poems in Western literature, Kubla Kahn, in an epiphany. As Mr. Coleridge described in the poem’s preface, he dozed after smoking opium and reading Samuel Purchas’ The Pilgrimage. He suddenly awoke and manically began documenting the first few stanzas of Kubla Kahn, which he had “dreamed”, fully formed. Unfortunately, he was interrupted by a visitor and the poem evaporated like the dream in which it originated, never to be finished. Despite the fact that Mr. Coleridge wrote Kubla Kahn over 200-years ago, the epiphany story has endured for good reason. It is romantic and compelling. Unfortunately, it is untrue. Recent research has uncovered evidence that Mr. Coleridge labored on Kubla Kahn for well over a decade. It was years later, when the poem was first published, that Coleridge created the myth of the epiphany to add to the poem’s enchantment and to explainwhy it remained unfinished. Wantrepreneurs desperately cling to the myth of the epiphany. It is seductive to believe one can achieve great things by daydreaming, sleeping or even becoming intoxicated. Unfortunately, most accomplishments, especially in the startup world, require a sustained and concerted effort. Overnight success is usually achieved over numerous sleepless nights.
Messenger: Paige Craig, CEO BetterWorks, Angel Investor, former Marine I implore you to listen to the interview below. Paige is a gifted communicator and my summary does not do him justice. He offers a number of worthwhile tips and tricks that I was not able to capture in the textual summary, so the 14-minute audio file is well worth your time. Play it in the background while you otherwise remain productive (or listen to it while you update your FB page, your call). Click here to listen to the Audio File What follows is a summary which paraphrases Paige’s responses. For his exact quotes, listen to the interview. Value Prop Twitter Style: BetterWorks is the better way to manage employee perks
Note: This is part III of a five part series. Access the first installment HERE, part II HERE, part IV HERE and part V HERE. Along with Dr. Seuss’ Green Eggs and Ham and Marcia Brown’s Stone Soup, the seemingly innocuous board game Monopoly has played a pivotal role in the edification of several generations of entrepreneurs. When you play Monopoly with your children, you can subtly underscore an entrepreneurial mindset in their gameplay which will ultimately help them develop valuable startup skills, as described below.
Messenger: Rob Duva, Co-Founder, COO RingRevenue, prior Director of Customer Acquisition, CallWave Value Prop Twitter Style: “Ringrevenue's call performance marketing platform enables ad networks, agencies, advertisers & publishers to generate more inbound sales calls.”
Startup blogger and venture capitalist extraordinaire Fred Wilson recently published a great article on Venture Debt, which I strongly suggest you review HERE. Go ahead, I will wait… …welcome back. As Fred points out, many entrepreneurs hear the word “debt” and promptly run the other direction. In the past, venture debt was often viewed as a funding vehicle of last resort. When the current investors were tapped out and a bigger fool could not be brought into a venture, all eyes turn towards debt. However, when deployed judiciously, venture debt can mitigate investors’ and founders’ dilution. At Rincon Venture Partners, we are in the midst of negotiating a term sheet with a cash-positive startup that is growing aggressively. The nature of the company’s business model requires it to fund certain costs before it is paid by its customers. Thus, even though the company is cash flow positive, its growth is constrained by the amount of payables it can fund. Enter venture debt. By combining our equity investment with a tranche of venture debt, the company has avoided a larger equity round, which would have significantly diluted the Founders’ ownership share.