The Right Way To Do A Software ROI Analysis
On Monday we had a Foundry Group portfolio company sales summit. We are fortunate in that we’ve got a bunch of amazing sales execs in our portfolio, including several CEOs
On Monday we had a Foundry Group portfolio company sales summit. We are fortunate in that we’ve got a bunch of amazing sales execs in our portfolio, including several CEOs
This spring Jason Mendelson and I taught a class called Venture Deals with the Kauffman Fellows Academy. It was a blast so we’ve decided to do it again. KFA uses NovoEd as their platform. Jason and I spent two days recording videos around our Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist explaining each section and going deeper with Q&A. The course is a MOOC that includes significant Q&A that I participated in throughout the course, along with a weekly Google Hangout covering different topics.
Lately, I’ve been struggling to figure out the best way to have expanding email groups. I’ve tried all the obvious stuff and nothing is satisfying to me. Historically, I’ve just used Google Groups. That’s great for things like the Foundry Group CEO list, where we control the list, but then we have to host it at a @foundrygroup.com domain. For the Colorado CEO Jobs list, we were using Yahoo Groups for a while. Even with the new upgrade last year I find the UX to be terrible so I recently moved it over the Google+. Now I’m hearing complaints about not getting the emails which usually results from notifications being turned off, but you wouldn’t know that unless you were paying attention. And, if you don’t have a Google+ account, you can’t be on the list.
I just landed in Downtown Las Vegas for my first trip for business in over a year. I’m here for the UP Global Summit and then our UP Global board meeting on Sunday. I’m most definitely NOT in Las Vegas (which I don’t like very much) – instead I’m in Downtown Las Vegas which is a magnificent experiment in revitalizing a downtown city that was more or less left for dead a while ago.
A few years ago, David Cohen and I started a Colorado CEO Jobs list in response to the regular stream of inbound email we got from folks looking to move to Colorado and interested in tech-related jobs. We seeded this list with CEOs from companies Foundry Group and Techstars had invested in. As other CEOs requested access to the list, we added them. The list was managed in Yahoo Groups and had about 100 CEOs on it. It was simple – emails from people looking for jobs came to me or David and we forwarded them to the list. The hit rate was very high – I regularly get feedback from people that they’ve ended up with multiple interviews and a job from the introduction.
I’m an investor in a bunch of VC funds. Some of them recycle their management fees; others don’t. I’ve never really understood why funds don’t recycle their management fees. Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm. Here’s how it works. Let’s assume a $100 million VC fund that charges a 2% management fee and a 20% carry. In the typical case, a fund will get an annual management fee of 2% of “committed capital” (the $100 million) for the “investment period” (usually the first five years, or until a new fund is raised) and then an annual management fee of 2% of “invested capital” (whatever the fund has invested in companies that are still active) over the remaining life of the fund, which is usually 10 years.
A couple of weeks ago, I wrote about an event a bunch of us in the Boulder startup community are putting together called #BoulderWin, a celebration for the sale of Gnip to Twitter. Instead of having a secretive closing dinner for a small number of folks, we are going to have a big party to welcome Twitter to town. #BoulderWin is happening on June 4th from 7pm – 10pm at the Boulder Theater.
A few weeks ago Hunter Walk and Satya Patel of Homebrew, a one year old seed-stage VC firm that my partners and I are investors in, came and spent the day in Boulder. This wasn’t the typical “hey – I want to come see you for a meal when I’m in town” kind of meeting that happens with a lot of VCs. In this case, the firm (Homebrew) came by, committed a full 24 hours to being in Boulder, and went deep with me and my partners.
Wow. I needed a vacation. Amy reminds me that I say that on day three of each of our quarterly weeks off the grid. It doesn’t seem to matter how I try to pace myself or how recent my previous week off the grid was. On day three, when I’m not looking at email, anything on the web, or checking my phone, I just breathe deeply and say “wow I needed this vacation.”
As Boulder Startup Week 2014 comes to an end, I have been reflecting on the power of startup communities today. When I wrote Startup Communities: Building an Entrepreneurial Ecosystem in Your City, I made some assertions about how to build startup communities and what the impact of them would be on society. As I sit here at the end of a week pondering everything that is going on in the world around startup communities, I believe I have vastly underestimated their potential impact. And this makes me feel very happy.