Brad Feld

Month: August 2005

Bernard Moon – a VP at GoingOn (a new company recently launched by AlwaysOn / Tony Perkins and friends) – has written a good post on building a team from an entrepreneur’s perspective in a startup.  While VCs can blather on – well – almost anything – I think the “really good stuff” comes from entrepreneurs who are living their current experience and are self aware enough to write (or talk about) it.  Ironically, I’m chewing down Wayne McVicker’s (co-founder of Neoforma) Starting Something: An Entrepreneur’s Tale of Control, Confrontation & Corporate Culture (I read half of it tonight – it’s a great in the trenches story), so my mind was particularly prepared for Bernard’s post.  Buried in both is the age old adage that gets re-learned every day – “trust is essential.”


The 37th Parallel

Aug 17, 2005
Category Investments

Quova has started a blog on “the impact of real-world geography on the way business is conducted on the Internet” called The 37th Parallel that is hosted on AlwaysOn.  I posted an article titled IP Geolocation – Investing in Insight that talks briefly about my first encounter with the notion of “IP Geolocation”, the origin of my investment in Quova, and the evolution of IP Geolocation from a clever, gimmicky idea in 1999 to a technology that is now at the core of a wide variety of Internet-based applications. 


I’m participating in a half day event on 9/28/05 from 9am – 1pm put on by IBD Network and hosted at the Fenwick & West office in Mountain View, CA called The Dealmaker Forum.  The quick overview is:

If your company’s strategy involves a merger, acquisition, or strategic partnership, The Dealmaker Forum is where you need to be. The Dealmaker Forum brings together expert dealmakers – CEOs, corporate development executives, VCs, and M&A experts – for an exchange of strategy, ideas, and best practices. Through an interactive, roundtable format, participants can delve into topics of critical interest for the growth of their businesses.

In addition to me, the group of “experts” currently includes:

  • Lara Druyan, General Partner, Allegis Capital
  • Steven Mitzenmacher, Director, Corporate Development, Business Objects
  • Ken Sims, Strategic Advisor, Oracle
  • Cheryl Traverse, Ex-President, CEO & Chairman, Immunix
  • Paul Weinstein, VP, Business Development, Check Point Software Technologies
  • Ann Winblad, General Partner, Hummer Winblad Venture Partners
  • Oren Zeev, Partner, Apax Partners

Space is limited to 100 people and is invite only – if you are interested send an email to greta@ibdnetwork.com with your name, title, company, company URL, and phone number.


Blog Analytics

Aug 16, 2005
Category Writing

I’ve always loved numbers (especially primes and multiples of 3) – that partially explains my interest in web analytics and my fascination with looking at data trends.  Over the past year, I’ve created my own little data laboratory – my blog.  When I started blogging on 5/4/04, I obviously had 0 subscribers via RSS (by 5/8/04 I had 4, by 5/31/04 I had 60, today I have 3500 according to FeedBurner).  Thanks for contributing to my laboratory (hopefully you are getting some benefits from it also!)

Since the beginning of this year, I’ve been paying a lot more attention to and experimenting with the various things you can measure on a blog.  While the absolute numbers are occasionally useful, the trends are really what I’m after, so the law of large numbers works in my favor over time to improve the validity of the trends.  I’m also trying to understand what impacts the trends – the deeper post specific data really helps with this.

I stepped back from it all yesterday and did an inventory of the various data I’m measuring on a daily basis.  Following is the list of the services I’m using:

  • FeedBurner: Core RSS feed and page view metrics
  • AWStats: Core page view metrics
  • Google AdSense: Page views by channel, ad click throughs
  • Amazon: Online purchase metrics
  • Bloglet: Email subscribers
  • MyBlogLog: Outbound link tracking
  • MeasureMap: Inbound / outbound link tracking (in alpha)
  • Technorati: More link tracking
  • Feedster: Even more link tracking

I’m also using a number of these services to enhance my blog, all which collect (or generate) other stats.

  • Amazon: Reading Now, Read Recently, Toy of the Month
  • Jinzora: Listening Now
  • Word of Blog: Promoting Now
  • MyBlogLog: Outbound link tooltip
  • FeedBurner: FeedCount (subscriber count), BuzzBoost (republish Mobius PR feed)
  • NewsGator: Subscribe button
  • Bloglet: Email subscribers
  • Google: Search on blog
  • Page Two: My random page where I play with stuff until I put it in production

While FeedBurner and AWStats form the core of my analysis, I’ve been spending more time in the other tools recently looking at the data.  It dawned on me that I’m missing a classic “CIO dashboard” view across all my data.  Much of this data is “open” and freely available via APIs and web services although some isn’t easy to get.  Now that I’ve got a suitably large set of data, it’s time to step back and see if there’s a better way to consolidate / represent it.


As I’ve said in the past, I’m a long term fan of Warren Buffett.  Many of you are also as I’ve received over 500 requests for the Annual Letters of Buffett Partnership, Limited, 1957 – 1970 over the past few months. As the Q205 filings roll in, I happened to notice the disclosure for the stock holdings of Berkshire Hathaway, which are as follows.

Company                 Class        Value               Shares
Coca Cola                Com          $8,350,000,000      200,000,000
American Express Co.     Com          $8,070,237,000      151,610,700
Gillette Co.             Com          $5,112,617,000      100,980,000
Wells Fargo & Co.        Com          $3,476,090,000       56,448,380
Moody's Corp.            Com          $2,158,080,000       48,000,000
Wesco Financial Corp.    Com          $2,053,111,000        5,703,087
Washington Post Co.      Cl B         $1,442,736,000        1,727,765
M&T Bank Corp.           Com            $705,493,000        6,708,760
Shaw Communications Inc. Cl B           $456,940,000       22,000,000
American Standard Cos.   Com            $440,072,000       10,497,900
First Data Corp.         Com            $346,208,000        8,625,000
Gap Inc.                 Com            $304,826,000       15,434,243
Comcast Corp.            CLA SPL        $299,500,000       10,000,000
USG Corp.                Com            $276,250,000        6,500,000
Gannett Inc.             Com            $245,228,000        3,447,600
Costco Wholesale Corp.   Com            $235,011,000        5,254,000
Sun Trusts Banks Inc.    Com            $231,500,000        3,204,600
Nike Inc.                Com            $214,300,000        2,474,600
Iron Mountain Inc.       Com            $155,100,000        5,000,000
Tyco International Ltd.  Com            $146,000,000        5,000,000
Pier 1 Imports Inc.      Com            $113,520,000        8,000,000
Outback Steakhouse Inc.  Com             $82,283,000        1,818,800
Servicemaster Co.        Com             $75,195,000        5,611,600
Lexmark International    Cl A            $64,830,000        1,000,000
Sealed Air Corp.         Com             $55,431,000        1,113,300
Petrochina Co Ltd.       ADR             $48,404,000          659,000
Home Depot Inc.          Com             $36,760,000          945,000
Proctor & Gamble Co.     Com             $33,232,000          630,000
Mueller Industries       Com             $23,084,000          851,800
Comdisco Holding Co.     Com             $22,784,000        1,518,978
Lowe's Cos.              Com             $22,706,000          390,000
Dean Foods Co.           Com             $13,233,000          375,500
Total Value                          $35,310,761,000

While the old mainstays are predictable (and make up the majority of the value), the holdings in the $100m to $1b range are fascinating.


Homer Earthquake

Aug 15, 2005
Category Places

We just had the biggest earthquake of the summer – a 4.7 at 12:57pm our time – about 38 miles from Homer.  Following is the map (hint: look for the big red box.)

We have lots of little earthquakes nearby all the time – this time it was big enough to notice.  At first I thought Amy had snuck up on me and was shaking the back of my chair to get my attention.  I said something like “hey babe” but the shaking continued.  I turned around and Amy wasn’t there.  I then noticed that my computer monitors were bouncing around at which point “EARTHQUAKE!” entered my brain.  I rolled with the last five seconds (it was about 10 seconds long) and then went up stairs to announce the event.  Amy thought I was slamming doors down stairs, so she didn’t make the connection until I told her.


As long as I can remember, a phrase that I have heard regularly is “what is the next killer app?”  Entrepreneurs and VCs are always looking for the next killer app upon which to build a huge business.  Last month, Richard Nolan and Robert Austin wrote a short article in Sloan Management Review that concluded that “even gifted visionaries [will not be able] to imagine the next killer app.”  They asserted that – as a result of research they’ve been doing with their HBS Internet2 Business Group – there are two critical practices to overcoming impediments to identifying the next multi-billion markets for communication technologies.  They are:

  1. Simply try things out: We are seeing this every day with all the web 2.0 stuff that’s being created.  The new approach – being used by many of our favorite web services – is build, release, test, iterate.  Google has popularized the notion of “beta services” – when everything is “beta”, you’ve got a new paradigm with a short (days / weeks / one month) release cycle that can be quickly iterated on rather than a monolithic 12 – 18 months (or more) release cycle. 
  2. Focus on the information context: This is a little harder to see in practice, but it’s all about “enabling the feedback loop between users and manufacturers.”  Eric von Hippel has been talking about this since the late 1970’s – he’s now calling it “Democratizing Innovation” – if you get both sides deeply involved in the innovation context, better things get created.  Tom Evslin’s been on a Typepad customization rampage – this is a great small example – and I hope our friends at Six Apart are watching.

Nolan and Austin conclude by suggesting “Extrapolation of the present will follow lines less straight and more recombinant than can be deciphered.  In that case, we will need processes and technologies that will allow us to intelligently stumble upon the future.”  Adam Bosworth talked recently about “keeping it simple and sloppy” – this is a big part of intelligently stumbling forward.  Who needs a “killer app” when you can play until something special emerges?


Dan Bricklin has a thoughtful post on software patents as a follow up to a bunch of stuff that’s gone around the web the past few weeks since the NY Times article on Microsoft’s quest for patents.  Buried in Dan’s post is the ultimate wisdom:

“I’m not against patents in general (they are good for some industries, I guess), but I do have real problems with how they are affecting the software industry which has other means of protection and incentive that have proven successful to society. Of course, as I’ve written, they are the current law of the land and I still apply for them at times.”

In one of Fred Wilson’s VC Cliche of the Week posts, he stated that “patents are just like nuclear bombs, you just got to have some.”  Mutually assured destruction is supposedly a deterrent, isn’t it?  Some day, the elusive “someone” (whenever any of us said “someone” in my house growing up, we always really meant “mom”) might get around to fixing our patent system with regard to software patents.  Until then, as Dan says, “… they are the current law of the land and I still apply for them at times.”


Chris asked Ross this morning if he could switch us all to Linux so we could be supervillians.  Even Amy laughed when she saw it.