This summer I made two new friends who completely blew my mind – Ian Bernstein and Adam Wilson. I met them through TechStars – they were founders of Orbotix, one of the 11 teams to go through this TechStars Boulder this summer. Today, Foundry Group announced that it has led an investment in Orbotix.
I’m always on the lookout for what I consider to be genius level software engineering talent. As an MIT graduate, I’ve been around plenty of it, but I also know that it shows up in unexpected places. A few weeks into TechStars, I realized that not only was I hanging out with genius level software talent but that Ian and Adam thought about hardware and the combination of hardware and software in unique ways. For example, take a look at a robotic ball controlled by a smart phone.
As part of my involvement in TechStars, I choose one or two companies from each program to mentor. We believe the magic of TechStars is the mentorship and while I tried to work with all the companies in the first two Boulder programs, given that there are now over 40 companies a year going through TechStars (10 each in Boulder, Boston, Seattle, and New York), I realized I needed to act like every other mentor and focus at most on two companies per program.
While Foundry Group has investment in two other TechStars companies (both from the TechStars Boulder 2009 program – Next Big Sound and SendGrid) this is the first company that I’ve mentored that we’ve invested in. One of my goals with my mentorship is to work with companies that are both within our themes and outside of our themes – this keeps my thinking fresh in other areas. So, I set the expectation early with the companies that I mentor that it’s unlikely we will invest. For example, the company in the TechStars Seattle program that I’m currently mentoring is absolutely killing it, but it’s far outside any of our themes. But, I’m learning a lot and they are also.
In the case of Orbotix, I knew they’d be within our human computer interaction theme, but when I started working with Adam and Ian, I didn’t realize how profound what they were doing was. Fortunately, by mid-summer I did, and began encouraging one of their other mentors, Paul Berberian, to engage more deeply with them. Paul, Adam, and Ian quickly started talking about teaming up and used the last four weeks of the program to “pretend” they were partners. By the end of the program they decided to join forces with Paul becoming CEO of Orbotix.
While this investment has resulted in endless teenage humor for my inner 14 year old, it is also another step in my personal strategy of making sure that if the robots actually do take over some time in the future, I’ve helped create some of their software.
In April I wrote a post about Rally acquiring AgileZen. I’ve been an investor in Rally from the very early days and am incredibly proud of what the team there has created. As I’ve written in the past, I encourage companies I’m an investor in to continually explore small acquisitions when entrepreneurs have created something that is on their roadmap. AgileZen was one such company and the acquisition has been a successful one for everyone.
Recently AgileZen has topped the leaderboard for TwtPick.in’s survey on tools and services for a lean startup. Ryan Martens, Rally’s founder, thought it would be a great opportunity to do some Q&A with Niki and Nate Kohari, the founders of AgileZen. As I’m spending a lot of time these days talking with first time and young entrepreneurs around the release of my book Do More Faster, I thought this would be a fun interview to add to the mix. And, if you are a software developer using Lean or Agile methodologies, take a look at Rally and AgileZen.
1. Why did you start AgileZen? We built AgileZen because we felt like there were a lot of tools on the market that served large organizations, but many of them weren’t designed to support the needs of small teams and startups. As a software developer, Nate had experience using other project management tools, but none of them seemed to work well for the small teams that he worked on. The original idea behind AgileZen started with feeling that pain. When we learned about kanban and understood how others were applying it to project management, we recognized that it would be a great way for small teams to visualize their work. After showing an early version of AgileZen to a few people, we got some very strong positive reactions, so we felt like we were on to something. We originally built AgileZen with software teams in mind, but the more we talked with people the more we realized that it could be used for any project-based work. We felt confident that there was a large enough market for the product, so we took the plunge and decided to launch AgileZen as a startup.
2. What is your mantra and secret to success? We think our secret to success is an obsessive focus on simplicity and usability, so we make every feature fight very hard to be included in the software. We also think that if the feature can’t be explained in a few minutes, it doesn’t belong in AgileZen. In software it’s often very difficult to say no to unnecessary features or complexity, but knowing when not to do something can be the difference between success and failure.
3. What is your goal with this solution? When we started working on AgileZen, our goal was to build a product that helped people work together to become more productive and that remains our focus today. We feel we’re successful as long as AgileZen makes our users more efficient, regardless of what industry they work in. To this end, we’re focusing on improving the product to make it as intuitive as possible. We’ve got some great ideas brewing and we’re excited to start sharing them.
4. Why did you join up with Rally? After meeting with the Rally team in February, we found that their ideas about company culture and vision for AgileZen matched up surprisingly well with our own, and it felt like working together was the right decision for the product and our customers. With Rally’s additional resources and guidance, we can set our sights higher and achieve our goals faster, so it’s a win for everyone.
5. What would you tell other start-ups about being acquired? AgileZen was acquired about nine months after our public launch. We never thought much about acquisition until Rally approached us about a potential partnership. Acquisition isn’t really something to chase from the beginning because it can distract you from what really matters, which is building something great that your customers will pay for. The idea of a big exit might be really appealing, but it’s more important to consider how well the organization’s values fit with your own. If you don’t agree on where the product is going then an acquisition isn’t going to benefit anyone—least of all your customers. Also, in a lot of cases, you’ll end up working with the acquiring company so you need to make sure you’re on the same page from the beginning.
Over the past two weeks I’ve heard the word “contrarian” more times than I can count. Suddenly, to become a successful investor in any segment (angel, venture capital, public markets, debt markets) you have to be contrarian. The assertion that a “contrarian strategy” always wins seems to be in the air.
When I ask people what they mean by “contrarian”, I’m amazed at how often they define it as either as “actively investing” or “sitting on the sidelines.” Specifically, “there are too many people investing at this point – I’m going to take a contrarian approach and sit on the sidelines for a while.”
To me, contrarian means doing the opposite of everyone else. If everyone is buying, you are selling. If everyone is selling, you are buying. Our friends at Webster even give us an example:
“As an investor, he’s a contrarian, preferring to buy stocks when most people are selling.”
Now, to be fair, you can make the case that “not buying” when everyone else is buying is contrarian. But I have never thought about it that way. And, as the word contrarian enters the mainstream vernacular around entrepreneur / angel / VC land, I think it’s important to ponder what it really means, especially if the majority suddenly adopt a “contrarian strategy” which, by definition, ceases to be contrarian.
Do you remember the amazingly hilarious “We’re All Individuals” segment from Monty Python’s Life of Brian?
After flying home on an extremely early flight from Tahoe, having lunch with Amy, and then taking a nap, I’ve been pondering why I thought the Tahoe Tech Talk Conference was so powerful. As you may know, I’m not generally a conference goer, usually focus on tech-oriented conferences like the ones we’ve helped create (Defrag, Glue, and Blur), and rarely can sit still for an entire day. Yesterday was an exception – other than a few short phone calls I managed to stay in the conference room at #TTT for the entire day.
I’ve concluded that it was a combination of the format, motivation of the speakers, and desire of the audience which resulted an a heart felt and intense discussion. If you know Gary Vaynerchuk you understand that “heart felt” and “intense” are his way, but it takes the all the participants to play into this. Let me explain.
The format was obviously going to be a winner, as it was one day of eight speakers giving 30 minutes talks. There was a one hour break for lunch and a three hour session at the end (from 3pm – 6pm) where all eight speakers got up on stage and answered questions. Gary moderated the day; every speaker was dynamite: Chris Sacca, Ben Kaufman, Dave Morin, Travis Kalanick, Kevin Rose, Dave McClure, Alexia Tsotsis, and Gary.
The speakers each focused on one thing and built their 30 minute talk around it. Their motivations were clear – they were trying to get a specific message across to the audience full of entrepreneurs. The messages varied, but they were all clear and crisp, nicely supported by well crafted presentations (versus tedious and dull powerpoints), and while they included reference to what each speaker was doing today, they were not commercials. During the three hour Q&A, the speakers answered anything that came their way. They didn’t all agree with each other but knew each other so there was plenty of banter – some of it more aggressive than others (based on their personalities) – and plenty of audibles were called. Gary did a good job of letting the tension build but then moving on when it became non-productive. This wasn’t just eight smart charismatic people pontificating – they dragged a few people from the audience up to address specific things that came up.
Finally, you had a motivated and engaged audience. At the dinner the night before, I arrived late to a room buzzing with discussion. I grabbed my meal from the Harrah’s World Famous Mashed Potato Bar (yeah – dinner kind of sucked for me) and hung out for a few hours. I immediately met a bunch of new people, all interesting, and each focused on connecting rather than pitching me something. I was worn out from the week but oddly energized by the evening (maybe it was the mashed potatoes.) This continued throughout the following day – the attendees weren’t trying to get attention for themselves; rather they were clearly interested in (a) learning and (b) connecting.
When I reflect on the entire experience, it definitely was both heart felt and intense. This was a result of the combination of the three things above – the format, speakers, and audience. Gary curated it brilliantly and the speakers lived up to their billing. But most importantly the audience engaged.
While at the amazing Tahoe Tech Talk, I heard Dave Morin mention a new service called Letter.ly. It’s a great example of brilliance through its simplicity.
In my never ending quest to use all the things I find interesting, I’ve started an email newsletter called Feld On Work-Life Balance. While I periodically post on Work-Life Balance, Amy and I are working on a book called The Startup Marriage. There is also a chapter on Work-Life Balance in the book David Cohen and I just wrote called Do More Faster. This is a topic that’s long been important and interesting to me, especially as I travel around explaining to my completely unbalanced friends how they are actually balanced and they just don’t realize it yet.
In the mean time, I’ll do some longer pieces on my Feld On Work-Life Balance email newsletter. It’ll also help me better understand yet another vector of media (in this case microsubscriptions) that I think is going to be increasing interesting and important in the future.
BTW – if you missed the Tahoe Tech Talk, we are about 66.7% of the way done and it has been unbelievable. The talks have been from Chris Sacca, Ben Kaufman, Dave Morin, Travis Kalanick, Kevin Rose, Dave McClure, and Alexia Tsotsis. Gary Vaynerchuk who organized it is up on stage doing his piece now talking about his goal of trying to humanize a conference. He’s also trying to say “Fuck” more times than McClure did. Great crowd – powerful stuff – well worth the 36 hours.