Author: Brad Feld
I regularly get asked by other VCs about how we do our offsites.
When we started Foundry Group in 2006, we had a very deliberate quarterly process in an effort to learn all about each other and become highly effective at working together. For the first three years, we were disciplined about the timing and process, used an outside facilitator, and always spent one night away together as a group. This was intense and rocky for the first few years, as we had to work through a lot of stuff as individuals and as a team, even though we had all been working together since the early 2000s at our prior firm.
Around 2010, as we started to feel like we had hit our stride working together as a team, we shifted from a facilitator driven model but maintained our quarterly rhythm. Recently, after adding Lindel, Moody, and Jamey to the team, we’ve shifted back to a facilitator driven model in an acknowledgment of the value of really learning each other and now becoming a highly effective team of seven, instead of four.
I think a regular offsite rhythm is critical for every VC firm of any size (including solo GPs, where the offsite can include either the whole team or a few of your key LPs and advisors.) While I’m sure there are different approaches that can work, when I reflect on almost a dozen years of our offsites, I think the approach, combined with the simplicity, has served us extremely well.
So, in case it’s useful, following is our approach to offsites.
Facilitator: For stretches of time, especially early on in our working relationships, or during any rough patches, we’ve used an outside facilitator. If you want a referral to anyone, just email me.
Close to Home: We try to avoid the offsite becoming a boondoggle. We keep it close to home and relatively modest. Many of them are either at Jason’s house, my house, or a hotel in Denver. Occasionally we’ll go to a resort in Colorado Springs (a two hour drive). Once every few years we’ll combine it with a trip somewhere (New York, Chicago) just to change the atmosphere a little, but even then, other than a fancy dinner somewhere, it’s on the modest side. But we never do offsites at the office (I mean, it’s an offsite after all.)
At least a full day: We start first thing in the morning and finish with dinner. We often spend the night together (for many years Seth, Ryan, and I had assigned bedrooms in Jason’s house.) We schedule a second day – if we end early, we have time to catch up on things, including stuff that came out of our discussion.
Rotating leadership: When there were four of us, each of us led the offsite once a year. During the stretch we are in through the end of 2018, which is using a facilitator to help us wire up the next level team of the seven of us, I’ve been the leader so there is some consistency of approach. The leader is a lightweight leader, just making sure the offsite happens with an agenda, as you’ll see in a second.
Crowdsourced agenda around two topics: Like many things in our world, we develop the agenda collaboratively and continuously. A month before the offsite, the leader shares a Google Doc with logistics and a skeleton agenda. We then fill it out, rarely exceeding a page. There are two primary segments: (1) our portfolio and (2) our relationship. By using these as the driver, we can go deep on a number of different issues, including our overall strategy. We try to keep the agenda high level and have a section called “Other Things to Discuss” which allows us to put up anything tactical on anyone’s mind. The leader curates the agenda and we finalize it the week before the offsite.
Portfolio: We have lots of different approaches to this, but it’s essentially a deep dive on a portion of the portfolio. The leader chooses the approach, which is often a brand new one, so we don’t get into stale rhythms. My historical favorite is the use of index cards with company logos on them. The leader shuffles the cards (our entire active portfolio, which is now a lot of cards) and turns them over one at a time. Whoever is on the board is not allowed to speak – they have to listen as the other partners reviews the portfolio company. Once the non-board member partners have talked about what they think is going on at the company and what we need to focus on, the board member gets to weigh in. Since our model is that everyone works on everything together, this is an incredibly insightful approach at two levels: (1) the company info and (2) our level of internal communication about the company. It also reinforces the value of being vulnerable to your partners – it’s often really hard to sit quietly and listen to the details without jumping in and trying to steer the conversation or inject your point of view into the mix. A more recent approach that I loved (that Seth came up with) is to start with a portfolio value assessment by company. We put an X-Y graph up on the wall with the Y-axis being amount of work (high to low) and the X-axis being the value to the fund of our ownership in the particular company ranging from $0 to $225m (where a company returned the fund.) We each put the index card for the company we were responsible for up on the wall in the place we think it belongs. We then discussed the entire portfolio for each fund, which generates a lot of discussion and calibration (including moving a lot of index cards around, since if we did the exercise blind, we’d all have different views.)
Ourselves: We either address the question “How Are You Doing?” (which is personal and professional, internal or with regard to others in the partnership) or do a set of facilitated exercises. We often start with a Red/Yellow/Green check-in. We orient the discussion around each person and take our time, rather than rush through updates. If there are conflicts between people, they surface quickly since we are all tuned to talk about struggles we are having, rather than focus on the awesomeness of how great our universe is. Each of us approaches this with our soul wide open – the starting point is trust, vulnerability, authenticity, and other words like that. While “How Are You Doing?” is a simple question, it opens the door wide for a variety of things, and the conversations that have ensued around one person have often generated a richness of discussion that lasts hours and often involves tears and other surprising emotions.
Obvious but important meeting rules: No phone. No email. If you have to go to the bathroom, go. We always make sure there are snacks in the room. Don’t interrupt. Listen with both ears; talk with one mouth. We build 30-minute breaks into the agenda so we can catch up, and, more importantly, breathe and stretch during the day. There’s usually a chance to exercise before dinner.
Dinner is a critical part of things: On some occasions, we have a meaty topic to discuss that we save for dinner. On others, we use it to heal our relationships and remind ourselves that even though we have plenty of conflicts and struggles, we are best friends. We usually do this in a private room somewhere so we can take the conversation wherever we want to go.
We try not to rush. We are gentle with each other, reminding ourselves that a key value of Foundry Group is brutal honesty delivered kindly. And we always remember that one’s individual truth may not be “the truth” and it’s important to be willing and able to explore what happened, or is happening, in a particular situation, instead of simply what you think happened.
Finally, we are always trying new things, so if you have stuff you do in offsites that are different, or additive, to our approach, toss them up in the comments.
The hyperbolic headlines are once again accompanying the articles about Silicon Valley. A Sunday NY Times article titled Silicon Valley Is Over, Says Silicon Valley kicks off what I expect is another wave of this. It references a recent Wired article titled Everyone Hates Silicon Valley, Except Its Imitators,
Go read them all and then tune back in here. I’ll wait.
Buried deep within the NYT article is an admission. “Complaints about Silicon Valley insularity are as old as the Valley itself” followed by an anecdote about Jim Clark moving to Florida during the dotcom era. Blink twice if you don’t know who Jim Clark is; blink once if you downloaded Netscape from an FTP site somewhere when it was still called Mosiac. And, blink three times if you realize that Netscape is now owned by Oath, which is a subsidiary of Verizon, which is headquartered in New York, and is the merger of Bell Atlantic (Philadelphia), NYNEX (New York), and GTE (which, awesomely, bought BBN, created GTE Internetworking, spun it off as Genuity after the Bell Atlantic merger, which was then acquired out of bankruptcy by Level 3 (Broomfield, Colorado – adjacent to Boulder) which is now owned by CenturyLink (Louisiana)). Blink four times if you are still here and followed all of that. Kind of entertaining that Netscape led us to Monroe, Louisiana.
Now, go read Ian Hathaway’s post titled Silicon Valley is Not Over. He nails it.
Dan Primack waded in with a tweet.
The “Silicon Valley VCs moving to the Midwest” story is a bit like your friend saying after a vacation to a tropical island: “I might just quit my job and live there forever.”
It’s not happening.
— Dan Primack (@danprimack) March 5, 2018
It’s worth clicking through and reading the comment thread. It’s delightful.
Silicon Valley is not over. Over 100 years since its notional inception, it’s a fascinating and amazing ecosystem. But it’s also not the only place you can create technology companies. I’m sitting in a hotel in New York and, according to a recent article from Bloomberg, New York Will Never Be Silicon Valley. And It’s Good With That.
The real story is that you can create startups, and thriving startup communities anywhere. Imagine the NYT article was titled “In a Moment of Introspection, Silicon Valley VCs Realize That There Are Tech Startups Outside of Silicon Valley.” Nah – that wouldn’t get as many clicks.
Raising money is hard.
Entrepreneurs need to understand what’s involved – from what to consider when picking the right venture partner and how to think about the economic and control rights at stake, to what life will be like after the deal closes. This assumes that the company is ready to raise venture money in the first place – an important consideration that not enough entrepreneurs really stop to consider.
At Foundry Group, we believe in a level playing field when it comes to knowledge. We want entrepreneurs to understand all the issues and to make the most informed decisions they can. That not only benefits them, but it benefits us as their partners and investors. That was one of the motivations for Jason and I to write Venture Deals. It’s also why Jason co-teaches the venture capital course at CU Boulder.
We believe that access to information is a good thing.
So when the founders of Hotshot, a startup that provides digital learning for lawyers, asked if they could come to Boulder and interview Jason and me for a video on raising venture capital, we happily obliged.
The video they created is called “Advice on Raising Venture Capital.” Anyone can access it for free, and we encourage you to check it out. While Hotshot’s content is aimed at lawyers and law students, this course is for entrepreneurs. In it, Jason and I discuss the different things that founders should consider when raising venture money for the first time.
We don’t have a stake in Hotshot – we just like what they’re up to and wanted to share the content.
If you are a runner, then I expect Sir Roger Bannister is one of your heroic figures (as he is one of mine.) He died today at 88.
Enjoy his narration of the video of him running the first sub-four-minute mile. It’s delightful.
I love his number (41) – a prime, and somehow signaling something about the first sub-four-minute mile, along with Chataway’s 42 (the meaning of life, the universe, and everything.)
We (the tech industry) like to label everything. I attribute the source of this desire and need to Regis McKenna although he may have just been the genius that amplified it.
The labels I dealt with early in my professional career (the 1980s) included micro computers, mini-computers, artificial intelligence, expert systems, neural networks, middleware, super computers, parallel computing, and killer app. Oh – and groovy. And music by Boston, Journey, Rush, Pink Floyd, and AC/DC.
When we invested in Fitbit in 2010, the phrase we used to describe the product was human instrumentation. If you read the original post, you’ll be amused by the lack of marketing language for what, in a few years, would evolve through labels like quantified self and wearables. And yes, I still call it human instrumentation (as a subset of human computer interaction), since that’s the part that is interesting to me.
BodyHacking and BioHacking and trendy labels for this. They’ve long been a favorite troupe of the sci-fi that I enjoy and are now regularly showing up in sci-fi movies. One of the annual conferences, BDYHAX, even has a description that fits with the notion of transhumanism.
BDYHAX is 3-day celebration of human enhancement, transhumanism, and biohacking. With a special focus on DIY healthcare and other body hacks, BDYHAX brings together industry experts, curious newcomers, and everyone else in between.
Mom / Dad – do these words skeeve you out? I’m betting they do. Or, at the minimum, you feel detached from them. It is, in this way, that I think the tech industry, with their labels, are doing humanity a great injustice on this topic.
Here are some common bodyhacks that we’ve been doing for a long time.
- IUD
- Glucose monitor
- Hip replacement
- Dental implant
- Tattoo
- Pacemaker
You get the idea.
I think part of the problem might be gender. Go read the following post by Kate Preston McAndrew titled Vagina, vagina, vagina.* (the subtitle is “Redesigning the pelvic exam experience“). Kate starts the post strong.
“Gender disparity is real, and traditionally, medical equipment designers have tended to have penises. That is problematic on a general level, but specifically, it means that problems that are specific to vaginas are often ignored or overlooked.”
I hadn’t connected this issue to the labels we use until I read the post. The post is outstanding, especially in the use of language and the unfolding of the thought process around the product. While reading it, I felt like I was in an alternate universe from the typical conversation I have about products. It was awesome.
Tech (hardware and software) is being interwoven into everything we do as a human species. To make this accessible to everyone, maybe we should start working a little harder on the words. More meaning, and less either (a) tech or (b) marketing. Ponder that all your cryptowarriors out there. Or members of any particular technology company mafia. And those of you in ecosystems.
What are you really trying to say?
I woke up late this morning with a vivid dream in my head. I had shown up at my new house on the first morning of our occupancy. There were all kinds of people running around including a dozen schoolkids playing red devil on the patio. I didn’t have any clothes unpacked yet except some running shorts that I didn’t like and an old t-shirt. I went upstairs to go to the bathroom and take a shower. The bathroom floor was linoleum and the wallpaper was grandma’s English garden floral from the 1950s. I tried to figure out how to poop in the toilet but the toilet paper holder got tangled up in the seat cover and I couldn’t get the toilet open correctly, dunked the toilet paper in the water, and just gave up. I turned on the shower, which was a pink tub with yellow walls, miniature size, with a plastic shower curtain that only covered half the length of the tub. The shower nozzle was a wide-spray non-adjustable one so I ended up with water all over the bathroom, including the one towel that was hung on a metal rack in the direct line of the spray. The only soap that was available was a tiny petrified stub molded into the ridged indent in the wall. I gave up and went to brush my teeth but realized I had no toothbrush or toothpaste. I put my uncomfortable running shorts on and got in a friends car to drive up a windy hill to a potato restaurant shack like the one where I had my first job at Potatoes Etc., except it was in a wooden crab shack instead of a shiny new shopping mall. I struggled for a while to construct my order based on their extremely complex paper-based ordering system before giving up. A few more things like this happened on the way back to the house, including a short run through the woods, and then I woke up.
It’s a few hours later and the dream still lingers. The obvious analysis of it is that I’m feeling a lot of anxiety, but I’m not. We just had an awesome two-day partner offsite and we all showed up fully to the conversation. While I’m emotionally and physically tired, I realized my dream was a version of something I described – and then we talked about – for a while, which is the notion of absorbing and metabolizing stress and anxiety, especially when it is generated by other people.
Last year I wrote a post titled Do You Reduce Stress Or Increase Stress? after hearing a great quote by Mark Cuban at an event where I interviewed him. He said:
“I like to invest in people who reduce stress and avoid people who increase stress.”
This stuck with me because I view part of my role to absorb the stress in the system while working hard not to add stress to people who I work with. I’m not perfect, but I’ve come to understand the link between this activity and my depressive tendencies.
Specifically, I absorb a lot of stress and anxiety. I’ve become very good at metabolizing it (a word that I came up with in therapy to describe the activity that happens.) As a result, I can stay very calm in the face of enormous stress and anxiety of others. However, I do have to metabolize what I absorb (and expel the waste product in some way) or else it builds up. I also have to deal with my own stress and anxiety. If I reach my limit, I start reacting to the cumulative stress and anxiety in my system. If I don’t do something about that quickly (of which self-care: rest, running, meditating, eating right, spending time alone, not traveling, being with Amy, reading) and in a significant enough magnitude, a depressive episode of some duration starts to loom. In the extreme cases, I tip into depression.
I used to fight the idea of this. I foolishly thought “if I can just stop being stressed or anxious, I’ll be fine.” Rather than trying to prevent or avoid stress and anxiety, I’ve learned to embrace it, and all the signals around it.
The dream that I led this post off with is a signal that I’m metabolizing a large amount of stress and anxiety. While I can psychoanalyze the dream, I’ve had some version of this type of dream enough times in my 52 years on this planet to know what the inputs are. More importantly to me is the warning of a dream this vivid that I need to pay attention to me and to make sure I’ve got enough of a metabolism buffer. I’m good there as I’ve got four days at home in Boulder with Amy, working out of my house the next two days and then having a very quiet weekend.
For me, the metaphor of metabolizing stress and anxiety, which only emerged through my work in therapy last year, is a profound one that has been incredibly helpful to me. If it’s helpful to you, that’s great. If it’s not, I’d suggest a meta-insight, which is to search for a physical or biological metaphor for how you deal with stress and anxiety, in an effort to have a more constructive relationship with it.
Cat Hoke’s book A Second Chance: For You, For Me, And For The Rest Of Us is out.
I wrote a long post about it in October when I read a draft of it. Cat is remarkable and she lucked out by partnering with the amazing Seth Godin on this book (Seth is the publisher).
I’m sending a copy to every CEO in our portfolio. We’ve got a pretty regular Foundry Group book club thing going at this point, as I know Rajat Bhargava and Will Herman’s book The Startup Playbook is also going out to a bunch of the CEOs. And each of my partners is getting a copy of Lee McIntyre’s Post-Truth this week.
I read a lot and encourage everyone around me to join in on the good stuff. Cat’s book is definitely good stuff. She mixes her own life journey with the mission of Defy Ventures along with the impact that Defy has had on so many people – both “entrepreneurs-in-training” and the volunteers who work with the EITs.
I’ve talked about Defy Ventures a lot on this blog and Amy and I have become significant supporters through both The Anchor Point Foundation and my volunteer engagement. I’m particularly proud, however, of my partner Jason and his wife Jenn who have picked up the mantle as co-chairs of Defy Ventures Colorado and launched the Colorado program. I was in prison with them, 50 volunteers, 50 EITs, ten people from the Defy team (including Cat), and Governor Hickenlooper two weeks ago.
All of this has been inspired, and led, by Cat. I didn’t know much about the US prison system prior to meeting Cat several years ago. My own journey with this has been incredibly powerful. Being able to experience it with other entrepreneurs and investors, including Jason and Jenn, a number of the Techstars team, and many others who I know has been wonderful.
If you want a pre-book taste, the Reboot podcast that I did with Jerry Colonna and Cat is a good start.
But, do yourself a favor. Buy Cat’s book A Second Chance. Read it, let it into your life, and ponder what a second chance really means.
P.S. I have several people in my life who I need to give a second chance to. I’m not ready yet, but I hope I will be at some point. And yes, the book will help you go deep on what this means for you.
If you are a regular listener of the Reboot Podcast, you’ve heard Jerry Colonna masterfully interview many people. And – if you aren’t a regular listener, go sign up and give it a try.
In Episode 78: When Did You Start to Listen to Your Heart, I turned the tables on Jerry and interviewed him. We’ve been close friends for 22 years and I felt like it was time someone interviewed him on his podcast. I suggested it to him and his team, who either rolled their eyes or jumped for joy. Either way, it is now up.
I listened to the final version during my run yesterday. I smiled a lot, snickered a little, and grimaced a few times. If you want a taste to entice you to listen, here are a few of the quotes from the show highlights that jumped out at me.
- “What I’m trying to do right now is pull myself into the present and be really real.” – Jerry Colonna
- “I have always given a shit about people.” – Jerry Colonna
- “Things are fucked up all the time like every day, continually. You can either just react to it, or you can deal with it.” – Brad Feld
- “I think that there are two things that I would get excited about as an investor. People and product.” – Jerry Colonna
- “Better humans make better leaders.” – Jerry Colonna
- “I don’t want to spend minutes with people who I don’t feel are good humans.” – Brad Feld
- “Good people do shitty things all the time.” – Jerry Colonna
- “If you’ve got that inquiry process and you remain curious about human beings, you can, with compassion, understand and therefore protect yourself from the bad things that even good people do.” – Jerry Colonna
- “Men at 40 learn to close softly doors to rooms they will not be going back to.” – Jerry Colonna
- “This idea that people are fundamentally willing to work on themselves and that they’re there for each other especially when there’s a struggle.” – Brad Feld
- “When I’m dust and dried up, and I’m dead and whatever, please just keep paying it forward.” – Jerry Colonna
It’s all Jerry for an hour with a little bit of me nudging the discussion along. None of it is scripted. We didn’t discuss anything in advance. Just two guys, who have known each other, worked together, and have had a deep emotional intimacy together – for 22 years – talking about some things that come to mind about what they think matter.
If you are a reader instead of a podcast listener, the transcript for Reboot Podcast 78: When Did You Start to Listen to Your Heart is also available.
Amy and I have learned that I need a Q1 vacation earlier in Q1 (vs. waiting until the end of March). We were apart for ten days because of a trip she took to Africa, so we went to San Diego for a week.
I played tennis every day for 90 minutes. I took a nap almost every afternoon. I got a couple of massages. We went and saw Black Panther, which we loved.
I interrupted vacation on Wednesday for some work stuff but stayed off email completely. I played a lot of chess online but realized after losing a bunch of games that I thought I was winning that it was a bad idea to play 10 minutes games while watching the Olympics in the background.
I didn’t read much. I didn’t feel like it for some reason. While unusual for me, I just rolled with it.
We had two friends visit. Ben Casnocha came down for two days of stimulating conversation. David Cohen took a tennis vacation, which he had planned for a more exotic locale that fell apart at the last minute. The friendships were warm, mellow, and enjoyable.
The month of December continues to be a huge struggle for me. I reflected on why and Amy and I came up with a plan for trying something completely different in December 2018 that we are contemplating trying.
I’m back home alone in Boulder for a few days, while Amy spends the weekend with her sisters. I decided to have an isolated, minimal human contact weekend. Yesterday was a digital sabbath that included meditation, running, a float, dinner by myself at Kasa Sushi, Lee McIntyre’s Post-Truth, Radius, and Lo and Behold.
Today is more of the same, except online plus a massage. Maybe I’ll drop the heavy and serious tonight and start working my way through Fast and Furious.
I’ll be back at it for reals on Monday …