Category: Books
I woke up late today (yay – 12:06 hours of sleep) to the last 15 minutes of the elite women in the NYC Marathon. Watching them finish and then watching Mutai crush the men’s field over the last six miles was pretty inspiring. I haven’t run a marathon since October 2012 when I ran the Detroit Marathon but after a year of struggling to get into a rhythm I’m once again motivated – and interested – in doing another marathon. I’ve committed to being one of the 14 in 2014 that run the Boston Marathon – there’s a gang of well known tech entrepreneurs and investors that are doing this together as part of a big fundraiser. I’ll definitely try to get at least one marathon in before then just to be confident that I’ll get it done.
Last week I added back in something I used to do regularly, but had stopped for a year or so given my schedule and then ensuing depression. I did a full day of random day meetings on halloween. I sat at Amante Coffee all day, mostly in my cookie monster outfit, had random meetings, drank coffee, and ate cookies. I had a blast.
If you’ve never heard of random day, I’ll meet with anyone who signs up for 20 minutes. I’ve been doing this for almost a decade – it’s part of my “give before you get” philosophy that’s deeply embedded in the Boulder Startup Community psyche. I have no expectation of what I’m going to get out of these meetings, but some pretty magical things, including the creation of Techstars, have occurred as a result of them.
During the course of the day I had 12 meetings, three cups of coffee, a yogurt, a burrito, and two cookies. I met with the following people.
- Friend starting a COO / CEO search
- Attorney in town thinking of starting a seed fund
- Founder of a non-profit I recently supported
- Person looking for a new BD gig
- Founder of a natural foods company I just invested in
- BD person looking to get into the VC or Boulder scene
- Tech entrepreneur I hadn’t seen in a decade describing his new thing
- Content marketing person looking to be plugged into Boulder
- Founders of non-profit looking to expand outside of Boulder
- Partners in a non-profit looking for support for a robot competition
- New VC in town in the natural foods market
- Two entrepreneurs just starting their tech business looking for feedback
I was immediately able to help at least six of the 12. I have no idea what will come from the other meetings, but that’s part of the fun of random day.
I plan to do this again six times in 2014. So that’s about 80 random meetings – people I wouldn’t have met with – and who wouldn’t have had some time with me. If one powerful thing comes out if it, then it’s worth it. Regardless, I had a good day on Thursday and feel like I did something that contributed to the glue in the Boulder Startup Community.
As we head into the weekend (which I need very badly), I thought I’d toss up a fun video that the gang at Name.com made recently. They’ve done some funny videos as part of their promotional campaigns (they are our domain registrar – good folks) and asked if Amy and I would do one that references our book Startup Life: Surviving and Thriving in a Relationship with an Entrepreneur.
It’s short and I get a silly grin on my face every time I watch it. There are a handful of inside jokes and in the spirit of never taking oneself very seriously, we execute this spirit well. And, as every good salesperson should say, “If you like the video, you’ll love the book – grab your copy of Startup Life now.”
As many of you know, mentoring women in startups and STEM careers is important to me, so I’m very pleased to be a part of the Startup Phenomenon: Women program, a one-day event in Macky Auditorium at CU-Boulder.
The speaking line-up for the day is really outstanding. It includes author Amanda Steinberg, founder and CEO of DailyWorth; Margaret Neale, management professor at the Stanford University Graduate School of Business; and Michele Weslander Quaid, chief technology officer (federal) and innovation evangelist at Google. If you’d like to see all the speakers scheduled, you can check out the website.
We’ll be covering topics of interest to entrepreneurs like startup financing, mentoring by and for women entrepreneurs, alternative business models and resources available for women-led businesses.
The conference is open to the public, and and a line-up like this doesn’t come along every day. Tickets start at $25 for students and $100 for the general public. I’m looking forward to an informative and inspiring day, and I hope you’ll consider attending.
As I continue to talk about Startup Communities, I say over and over and over again that the leaders have to be entrepreneurs. Everyone else – who I call the “feeders” (government, university, non-profits, big companies, VCs, angel investors) – have an important role, but the leaders must be entrepreneurs. Now – members of feeder organizations can play a leadership role, but in the absence of a critical mass of entrepreneurs, the startup community won’t ever develop into anything meaningful.
I was interviewed recently in MIT Technology Review in an article titled It’s Up to You, Entrepreneurs. It’s part of a series they are doing titled The Next Silicon Valley. It was a long interview by Antonio Regalado who boiled my rambling down into a bunch of coherent answers to specific questions.
For example, when he asked, “What’s the most important step an entrepreneur can take to create a startup community?” I answered:
“Just do stuff. It’s kind of that simple. It’s literally entrepreneurs just starting to do things. If you’re in a city where there’s no clear startup community, the goal is not raise a bunch of money to fund a nonprofit, the goal is not get your government involved. The goal is start finding the other entrepreneurial leaders who are committed to being in your city over the next 20 years. Then, as a group, get very focused on knowing each other, working together, being inclusive of anyone else who wants to engage, doing things that help recruit people to that geography, and doing selfish stuff for your company that also drives your startup community.”
He got underneath some great key points about startup communities with his questions, which follow.
- People talk about technology clusters. You talk about entrepreneurial communities. What’s the difference?
- What’s the most important step an entrepreneur can take to create a startup community?
- Let’s say you are the mayor. Would you rather bring Boeing to your city or have a startup scene?
- You seem to think a top-down approach is pretty toxic.
- What’s the evidence that startup communities can happen outside of traditional technology hubs?
- In your book, you say entrepreneurs need to make a 20-year commitment to a place. Does anyone really think in those time scales?
- How would you measure the success of a startup community?
- In Kansas City you bought a house and handed it over to some programmers. What’s the idea?
If you want the answers, go read It’s Up to You, Entrepreneurs.
Richard Florida continues to write amazing stuff about Startup Communities in The Atlantic Online. Two of his latest articles talk about entrepreneurial density and venture capital.
- High-Tech Challengers to Silicon Valley
- The Connection Between Venture Capital and Diverse, Dense Communities
For a long time I’ve suggested that an interesting measure of entrepreneurial density would be ((entrepreneurs + employees of startups) / total population). I asserted in my book Startup Communities: Building an Entrepreneurial Ecosystem in Your City that I thought Boulder had the highest entrepreneurial density in the world. I qualified this by staying I had no real empirical data – it was merely an assertion based on my experience.
Richard took this notion a step further in his article High-Tech Challengers to Silicon Valley and actually did some math. In it, he looked at Venture Capital financing (total dollars and number of deals) on a per-capital basis. Boulder came in third, behind “San Jose-Sunnyvale-Santa Clara, CA” (what most of us think of as “Silicon Valley”) and “San Francisco-Oakland-Fremont, CA” (what most of us think of as San Francisco.)
The comments are fascinating and generally miss the point. One in particular, called Richard unethical, although it was from “WithheldName” (also known as Anonymous Coward).
“It’s totally unfair to make Boulder separate from Denver. Combine Boulder and Denver. It’s called the Denver-Boulder Metropolitan Statistical Area for a reason. Was Cambridge separated from Boston? Of course not. The author was from Boulder. This data was slanted to Boulder. It was totally unethical.”
This particular person doesn’t understand that Boulder and Denver are separate startup communities. In contrast, Cambridge and Boston are one startup community, consisting of six startup neighborhoods (three in Cambridge, three in Boston, all within a 15 minute drive of each other, even in traffic.)
More importantly, the author of the article wasn’t from Boulder. I’m from Boulder. I didn’t write the article – Richard did. And – he was pretty clear about all of that, so our friend needs to rethink his definition of the word “unethical.”
That said, the more interesting study is by zip code, not by city or MSA. Mixing MSAs and cities creates a comparison that isn’t precise. And Richard acknowledges this:
“I’ll continue to track the evolving geography of start-ups and venture capital in future posts. Next week, I’ll look at the economic, demographic and social characteristics of metros that are associated with venture capital and start-up activity. In future posts, I’ll delve more deeply into all of this, using detailed data by area code and zip code level to tease out the changing geography of venture capital and start-up activity and its distribution across cities and suburban areas.”
I think the real magic in the analysis around entrepreneurial density will happen at the zip code level on a per capita basis. Look for 80302, 02139, and 10003 to show up high on the list along with some starting with 94xxx.
Pre-orders for the new book Startup CEO: A Field Guide to Scaling Up Your Business by Matt Blumberg, CEO of Return Path, are available now on Amazon. Matt, who writes the awesome blog Only Once (which stands for “you can only be a first time CEO once”) has put a herculean effort into writing an amazing book while running a very large company.
This is the latest book in the Startup Revolution series of books that include Startup Communities: Building an Entrepreneurial Ecosystem in Your City, Startup Life: Surviving and Thriving in a Relationship with an Entrepreneur, and Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.
I’ve worked with Matt since 2001 when I joined Fred Wilson and Greg Sands on the board of Return Path. At the time I was an investor in a company called Veripost that was a direct competitor with Return Path. Fred was an investor in Return Path. Each company was about 20 people. The founders knew each other well and were in a brutal competition in a market that didn’t yet exist. They decided they wanted to join forces, Fred and I cut a deal over the phone in 5 minutes, and Greg Sands (at Sutter Hill at the time) led a financing round that set a price for the combined company.
Twelve years later Matt is still Return Path’s CEO. George Bilbrey, one of the Veripost founders, is the President. They are incredible partners and Matt is still a first time CEO, but now running a 400 person company that dominates its market.
The book is broken up into five parts:
- Part I: Storytelling
- Part II: Building the Company’s Human Capital
- Part III: Execution
- Part IV: Building and Leading a Board of Directors
- Part V: Managing Yourself So You Can Manage Others
Matt has the entire outline of Startup CEO up on his blog. As with all books in the Startup Revolution series, it combines practical experience with advice with stories with commentary from other experts.
I think Startup CEO is going to be a must read for any CEO. Do Matt a solid and go pre-order it today.
William Hertling is currently my favorite “near term” science fiction writer. I just read a pre-release near-final draft of his newest book, The Last Firewall. It was spectacular. Simply awesome.
You can’t read it yet, but I’ll let you know when it’s available. In the mean time, go read the first two books in the trilogy.
They are also excellent and important for context for The Last Firewall. They are inexpensive. And they are about as close to reality while still being science fiction as you can get.
I define “near term science fiction” as stuff that will happen within the next 20 years. I used to read everything by William Gibson, Bruce Sterling, and Neal Stephenson. Gibson’s Neuromancer and and Stephenson’s Snow Crash were – until recently – my two favorite books in this category. Suarez’s Daemon and Freedom (TM) replaced these at the top of my list, until Hertling showed up. Now I’d put Daemon and The Last Firewall tied for first.
Amy and I were talking about this in the car today. Gibson, Sterling, and Stephenson are amazing writers, but their books have become too high concept. There’s not enough love and excitement for the characters. And the science fiction is too abstract – still important, but not as accessible.
In contrast, Hertling and Suarez are just completely nailing it, as is Ramez Naam with his recent book Nexus. My tastes are now deeply rooted with these guys, along with Cory Doctorow and Charles Stross.
If I was writing science fiction, this would be what I was going for. And, if you want to understand the future, this is what you should be reading.
One of my favorite books of all times is Zen and the Art of Motorcycle Maintenance. I read it every few years and recommend that every entrepreneur read it early in their journey.
While a plethora of entrepreneurship books have come out recently, including the ones I’ve written in the Startup Revolution series, there hasn’t yet been the equivalent of Zen and the Art of Motorcycle Maintenance for entrepreneurship.
Matt Blumberg’s new book –Startup CEO: A Field Guide to Scaling Up Your Business – has elements of it and is awesome. It should be out next month and every entrepreneurial CEO should buy a copy of it right now as it’ll be an incredibly important book to read for any CEO at any experience level.
Riz Virk’s post on TechCrunch yesterday – The Zen of Entrepreneurship – also caught my eye. He’s got a book out called Zen Entrepreneurship: Walking the Path of the Career Warrior. He’s sending me a copy but I went ahead and grabbed it on Amazon to read this weekend.
I know Riz from the 1990’s in Boston – I was an advisor to his first company Brainstorm Technologies. It was long ago enough at this point that I don’t know if I was helpful or not, but I had warm feelings toward Riz and smiled when I saw his name pop up again after not seeing it for a while.
Jerry Colonna and I have talked on and off about really digging into this topic and trying to write a philosophical treatise on entrepreneurship and the entrepreneurial way that will stand the test of time. I’m not ready to take this on as I’ve got enough on my plate, but I know it’s out there somewhere. In the mean time, I’m psyched to see more CEOs writing real books about entrepreneurship, rather than yet another ego testament to themselves.
Matt and Riz – thanks for putting the effort into this!
Over and over again people talk about transparency. Many people assert they are transparent, or are being transparent. Few actually are.
I was thinking about this last night while watching the last few episodes of Revenge: Season 2 with Amy. Suddenly the word “transparent” started being thrown around by the Grasons, referring to their new found desire to be transparent. In this case, it was simply disingenuous – they are transparent only when it suits their purposes and usually as a setup of some other nefarious act they were about to perform (or had performed).
Whenever a word makes it into a TV show like Revenge, you know that it’s lost all meaning. And, as I’ve observed in the world of tech and startups I play in, transparency is used all the time to justify something, but rarely actually supported by behavior.
In the “everything that is old is new again” category, the master of transparency, and likely the originator of “open book management“, is Jack Stack. I remember meeting Jack and hearing him talk at the very first Birthing of Giants event created by Verne Harnish in 1991. I read Jack’s book – The Great Game of Business: Unlocking the Power and Profitability of Open-Book Management – about his experience at Springfield ReManufacturing Corp – and was blown away by his thinking. My first company – Feld Technologies – was definitely not run with an open book and Jack’s ideas were very provocative to me.
Over the years, several CEOs I’ve worked with have been incredibly open book, or – if you want to use today’s lingo – transparent. My two favorites are Matt Blumberg of Return Path and Rand Fiskin of Moz. Matt shares his entire board book after the board meeting with everyone at the company (now over 400 people). He’s been doing this since the beginning, and only redacts specific compensation information and occasional legal stuff. Rand shares – well everything – including one of the best, most detailed, and completely transparent posts about a private company financing in the history of private company financings.
When an entrepreneur says he’s transparent, I now ask “do you publish your board book to your entire company?” I view this as a benchmark for transparency. If the answer is “no”, then I ask the entrepreneur what he means by “I’m transparent.” If you can’t be open with your company about the information you report to your board, how can you actually be transparent?