Brad Feld

Month: January 2017

Sunday morning Fred Wilson put up the following blog post: A $20,000 Match Offer On ACLU Donations Today. Joanne Wilson put up a similar post titled A $20,000 Match Offer On ACLU Donations Today on her blog.

It came after a flurry of emails that started with one from me at 7:41am.

“Inspired by Chris Sacca, Amy and I are considering doing an ACLU grant with a 100% match”

Joanne, Fred, Amy, and I were all distressed by Trump’s executive order on immigration, which Fred wrote about in Make America Hate Again and I wrote in Unsettled and Disgusted. We had seen the ACLU already jump into action so we collectively decided to do something about it by supporting it.

Fred’s partner Albert Wenger and his wife Susan Danzinger had already started a match for $15,000 so we (Fred, Joanne, me, and Amy) agreed that when they maxed out they’d hand the ball to us to match for another $20,000.

Jet lag then ate my soul and I went to sleep for a few hours. When I woke up, Amy said “we did something good while you were asleep.” I had well over 100 tweets with ACLU receipts, Fred had started a spreadsheet of all the matching gifts, and we had blown through our $20,000 match. By the end of the day, we were over $90,000 of matches with more coming in so we stopped counting and, with our $20,000, were easily over $100,000 to the ACLU in one day, which started with Fred’s blog post.

By the end of the day it had picked up enough speed to become a TechCrunch article: Some tech executives are matching ACLU donations amid immigration ban protests.

We know more executive orders on immigration are expected. Bloomberg is hinting Trump’s Next Move on Immigration to Hit Closer to Home for Tech. Regardless of how this plays out, I’m hopeful that Congress will step up and do their job at this point, rather than just let executive orders slide by, create chaos, and get litigated in court. Remember – Congress makes the laws and the President is supposed to execute the instructions of Congress.

In the mean time, thanks to everyone who contributed to the ACLU match yesterday. We helped the ACLU raise $24 million since Saturday morning. For perspective, the ACLU typically raises a total of $4 million in a year. Amy and I have been long time ACLU supporters and I expect they will have an outsized and important role in our democracy in the next four years.


I arrived home from Australia yesterday. David Cohen and I spent the week there together to learn more about the various startup communities in Australia, to spend some time with the team that is leading Techstars Defence in Adelaide, and to watch an amazing Federer / Wawrinka semi-final.

I didn’t find out about Trump’s Executive Order on Refugees and Visas (the nicest thing I could come up with calling it) until arriving home Saturday mid-day and hearing about it from Amy. I was so jet-lagged that I took a shower and crawled into bed as I couldn’t process any new information. I was on a digital sabbath so I figured I’d read about it today.

When I woke up for dinner, Amy filled me in. I listened in a state of disbelief. At some intellectual level I knew this was coming, but I couldn’t believe that it was an executive order issued on Holocaust Remembrance Day. I’m glad the ACLU (which Amy and I strongly support) and the US judicial system is doing its job while the ban appears to be generating predictable chaos.

I’m always a little anxious when I travel internationally because of the rough experience I had getting back into the US from Canada four years ago. I know it’s an irrational emotional response on my part to be anxious since I’m US born, have a Global Entry card, and have plenty of resources. However, it always gives me a tiny flavor of how one might feel when entering the country, even without the recent executive order.

The executive orders the White House released on Friday disgust me. By directly targeting productive American residents, children, and the elderly in the name of national security, they are cynical, illogical, immoral, and extremely insensitive. Under the executive order dual citizens are at risk of being unable to return if they so much as take a vacation or visit their extended family. The whole thing is antithetical to the values my parents brought me up with, and what I think it means to be an American.

Friends, such as Fred Wilson (Make America Hate Again) and Albert Wenger (Misleading the World on Immigration) have already spoken out. Many tech companies are making statements and, like Lyft giving $1 million to the ACLU, are taking action. Chris Sacca leads and gives $150,000 to the ACLU. Techstars has sent a message to the Techstars Worldwide Network with an offer of help to anyone in our worldwide network who is impacted.

Whatever intentions the White House had, these new rules will not protect American security, will not make us safer, and will cost us, both morally and economically. I recognize the need for border protection but this order goes too far and does more harm than good. I stand with tech leaders, like Reed Hastings and Drew Houston, in calling these restrictions unAmerican and immoral.

It’s time for us – our American tech and startup community from places like Boulder, Boise, Chattanooga, Omaha, and Anchorage – to stand up and call for the White House to change course. This is not ok.


I’m just back from a week in Australia with David Cohen to a note that Nima, a company we invested in last year, is now shipping their Gluten Sensor in volume. If you have Celiac disease, the Nima gluten sensor is a must have. If you are sensitive to Gluten, it’s still a must have.

Give it a try and give me feedback.


On Saturday night I got on a plane and flew to the other side of the planet, where I am now. I’m in Melbourne, finishing my coffee, getting ready for one last meeting here before I fly with David Cohen to Adelaide for the day.

When I left, I had the voices and energy of 25 people in my head. Last Thursday evening was the beginning of the second Reboot VC Bootcamp at my house just outside Boulder.

Amy and I have a second house on our land, which we refer to as “the Carriage House” and the Reboot gang calls “Chez Feld.” The first floor is an event center that we use for non-profit events. The second floor was going to be a man cave, but my idea of a man cave is carrying my laptop around the house wherever Amy goes and sitting down next to her. The idea of hiding out from her a separate place has never made any sense to me so we turned the second floor into a retreat center which friends and companies in our portfolio are starting to discover and use, especially since it’s a lot less expensive (free) than renting a hotel conference room for the day – and a lot more pleasant.

About 20 VCs from around the world showed up for an intense four day experience lead by Jerry Colonna and his Reboot team. The website is understated about the experience.

“Over this long weekend with Jerry, Brad Feld and Team Reboot, we’ll work to uncover your authentic leadership style and teach practical skills for managing the array of feelings that can be triggered–all in the name of helping you become the best investor/board member/supporter you can be.”

To really understand it, read the following four posts from attendees of the second bootcamp.

I was a little sad to leave Saturday and not be part of everything, but reading each of these posts this morning made me very happy. It’s not just that “VCs are people too”, but that the 20 people who showed up in Boulder for four days opened themselves up completely as they each went down their own path of radical self-inquiry. Jerry and the Reboot team continue to amaze me (and many others) in their magical abilities around personal exploration and growth in a professional context (well – and a personal context.)

For everyone who showed up – thank you for coming and letting me be a part of it. As I sit here on the other side of the world with my soul gradually catching up with me from the jetlag, it’s powerful to ponder that we are all just bags of chemicals.


I recently joined the Defy Ventures board. If you aren’t familiar with Defy Ventures, here’s a post that I wrote after my first prison trip with them at the end of last year.

Early this morning, on my run in Melbourne as I tried to shrug off jet lag, I listened to a Reboot podcast that Jerry Colonna did with me and Cat Hoke, the CEO of Defy Ventures, a few weeks ago.

I had tears in my eyes while running, and I don’t think it was from my pace. Among other things, I’ve committed to bring Defy Ventures to Colorado in 2017. If this is something that is interesting to you either reach out to me or keep your eyes open for a broader fundraising initiative coming up (we’ve already raised 40% of the money needed to do this.)

And – enjoy the podcast. I think it’s one of the most powerful (at least to me) that I’ve participated in.


My wife Amy sent this HBR article – How to Handle the Pessimist on Your Team – to me. It’s almost a decade old but seems timeless.

I’m an optimist. With rare exceptions (usually when I’m depressed), I can carry an optimistic view point about things (business, projects, humans, life, existence on this planet, my ability to some day go to a parallel universe) around in most of my interactions.

I very much respect and value different opinions as I learn from them and from being challenged. I’m not “right” and don’t view my approach to discussions as “telling the truth”, but rather “providing data”, “telling stories”, and “helping a person / team get to a decision.”

Pessimists are useful to counter balance my optimistic view point. But endless pessimism does tire me, especially when it is only used to put up objections. When the objections are part of a discussion that leads to a more thoughtful outcome, it’s great. When it’s just negative, reactive, tone deaf to context, or relentless, I often feel like I just want to crawl under my desk and take a nap.

This article is prescriptive for the non-pessimist. But, if you have a pessimistic orientation, it’s also useful. I’d be surprised if you don’t have at least one pessimist on your team, and numerous teammates who have pessimistic tendencies. Turn them into a positive, not a negative.


A key ingredient of Techstars accelerator programs is our experienced and engaged mentor community. Mentors embrace the Techstars “Give First” philosophy by offering founders their time, advice, and connections. We treat mentorship seriously – you can read about it in our Mentor Manifesto and my blog series on the mentor manifesto. And, my book Give First, coming out at the end of 2017, will cover mentorship in depth.

Our global network now consists of over 5,000 mentors, including many successful Techstars alumni. As Techstars continues to selectively expand into new geographies and industry verticals, our mentors are important as ever.

Serving as a mentor is intrinsically rewarding on multiple levels. Guiding founders through the ups and downs of entrepreneurship creates a deep sense of contribution. It provides an outlet for mentors to engage in their local startup communities and keep a pulse on emerging technologies. It’s a chance to learn by teaching, and engage with a new generation of entrepreneurs. And it’s fun.

Beyond the intrinsic rewards, Techstars has been considering creative ways to recognize our mentors while deepening their relationships with founders. Today we’re happy to announce a new partnership with AngelList to offer Techstars mentors and alumni an exclusive opportunity to invest early in accelerator companies. Our first two pilot funds will be the 2017 city programs in Austin and Boston, launching on January 23rd. The AngelList funds will give mentors and alumni early investment access while providing companies with additional early stage capital.

At Foundry Group, we learned a lot by running our own FG Angels syndicate. AngelList syndicates helps enable seed stage investing at scale. We believe in the model and its power to further enhance the Techstars network.

If you are a Techstars mentor or alumni founder and would like to learn more about the Techstars AngelList funds, or an experienced entrepreneur or tech executive interested in becoming a Techstars mentor, please contact help@techstars.com.


Over the past few days, I’ve had a similar conversation about reporting tempo with three different people (2 CFOs and 1 CEO). In each case, we snuck up on the issue, rather than starting with it.

The fundamental question addressed what the reporting tempo to the board should be.

A number of years ago, I decided to shift to quarterly board meetings. Historically, the number of board meetings I had per company was all over the place. Some had four per year, some six, some eight, and some had twelve. This was an artifact of the last 30 years of venture capital, where VCs often would use the board meeting as the way to primarily engage with the company.

I wrote about this in my book Startup Boards: Getting the Most Out of Your Board of Directors. I’ve shifted to a cadence I call “continuous board interaction” which is gated by the desire and need of the CEO as well as the needs of the company. As such, a quarterly board meeting is plenty since I’m having continuous interaction with the CEO and board. This approach was originally stimulated by Steve Blank’s posts Why Board Meetings Suck and Reinventing the Board Meeting – Part 2 of 2 but modified to fit the more varied and flexible reality that I operate in.

This does not mean that quarterly financials work for me. When the financials are tied to the quarterly board meeting, it’s almost impossible to have continue board interaction. There’s just not enough financial context about what is going on in the business. On the other hand, with a few exceptions (hyper-growth cases or ones where you are focusing on specific metrics), daily financing reporting is not helpful either, as is it overly burdensome on the company. It also quickly turns into metric reporting, which is very distinct from financial report, and often extremely helpful, especially in a continuous board interaction approach. However, many board members can’t handle daily anything, especially if they are on ten boards, except for the companies that they need to spend daily attention on.

That’s the context for how we wandered up to the discussion in each meeting. After the second conversation, I thanked the person I was talking to (she knows who she is) for providing the content for today’s blog post. Of course, since the conversation came up again with someone else after that, it sealed the deal that this would be a blog post.

Here is how I like to do board level financial reporting for private companies I’m on the boards of. I don’t force this – if the CEO wants to do something different that’s up to her. But I encourage this, or something like this.

Quarterly board meetings: The financials are decoupled from the board meeting. There is a quarterly financial and metric review in the board meeting, but it’s not the meat of the meeting unless there is a specific set of financial issues that need to dominate, such as the 2017 budget, a big financial miss, or a significant change to the plan for some reason.

Monthly financial package: This is a full financial package distributed to the board and executive team. It includes P&L, Balance Sheet, and Cash Flow statements. It has actuals to budget for monthly, quarterly, and YTD. It also has trailing 12 months of each (P&L, BS, CF). In addition, there is a cover MD&A (hopefully written by the CFO – not a formal SEC one, but a comprehensive management discussion and analysis). I prefer this package to be distributed by the CFO and not the CEO – it then becomes part of the operating rhythm. I also like the Q&A that occurs (in email, or in a Google doc around the MD&A) to be driven by the CFO with support from the CEO.

Optional monthly financial state of the company board call: This is a call with the CEO, CFO, and the board. Ideally it is led by the CFO. It’s limited to one hour, is completely independent of the board meeting, and is optional. The CFO sends out a short (less than 10 page) presentation summarizing the key financials, key metrics, and any topics for discussion at least two days in advance of the call. While I rarely attend these, I find that the board members who don’t engage continuously can use this to keep current on the financials and in the rhythm of the company.

This rhythm works around the monthly financial close cycle. The CFO sets the schedule. An example would be (based on day of the month) that the financials are closed by day 15. The monthly financial package goes out on day 17 with the presentation for the optional monthly state of the board call. The call happens on day 20.

If you’ve got a different, or better, rhythm, I’d love to hear it.


If you are growing at a rate of less than 50% year over year, you should consider viewing 2017 as the year of flat headcount.

As budgets are settling down and getting approved for many of the companies I’m on the board of, I’m seeing a general trend of much less headcount growth in 2017 than in 2016. In some cases, companies got ahead of themselves. In others, they need to integrate all the people they’ve added. In some, they feel like they have a critical mass of people and want to march to get profitable on current headcount. And still others are profitable and have realized significant operating leverage in the past two quarters that they want to continue.

While there are different reasons, many of these companies are being a lot more targeted and selective with where they are adding people. These are generally the companies between 50 and 200 people who have growth rates that are 50% or less. But I’m also seeing it in companies with larger growth rates (100% year over year – yup – we can to that and only add 10% new people.)

I hadn’t really thought of it as a trend until I reviewed a board deck this morning and it’s called out as a feature. I agree that it’s a feature. A company with $10m+ of revenue that is growing at 50% or more can often get profitable within 12 months if it focuses on its operating costs. Headcount is almost always the largest increasing operating cost.

I see a nice second order effect in all of these companies. Given the focus on getting profitable, they are now clamping down on other discretionary costs around the system. That money you’ve been wasting on a PR agency – delete. That extra space you thought you might need, but don’t – sublet. The outsourced recruiter you’ve been paying a retainer to – gone. There’s a long list of operational efficiencies that go along with the focus on getting net income and ultimately cash flow positive.

While this isn’t a universal truth, nor should it be, it definitely feels like a trend, especially as companies start putting a lot more focus on ICDC as part of their growth strategy.