11 Burst results for "Cultural Leadership Fund"
"cultural leadership fund" Discussed on Marketplace Tech with Molly Wood
"Bringing diversity into venture capital investing might mean you got to put it in the contract from American public media. This is marketplace tech I'm Ali would. This week, a group of venture capital firms announced that they're planning to make diversity a core part of their deals with startup founders. The ten firms committed to including new standard language in the contracts called term sheets that they make with startup founders. It's a diversity writer that says that the company and lead investor will make every attempt to include a member of an underrepresented group as a CO investor. It's not. Binding language but the idea is that it will create opportunity for underrepresented investors to participate in deals and also attract founders who prioritize a commitment to equity. The initiative was started by Alejandro Guerrero, a venture capitalist based in Los Angeles with the firm act one ventures I wanted funds to feel because, yes, this is important and everybody out here is talking about it and all the founders are trying to see more. That we're the ones signing up for it. We're actually going to be the ones that have the competitive advantage because founders are looking to work with individuals that are trying to do more. It doesn't have the teeth to see it is enforceable, but that wasn't the point. Right the point here is that all of us know what this is about all of us are making a commitment it's going to it's GonNa. Take some effort it's GonNa. Take a bit word particularly if you know maybe you didn't have the diverse network of potential investors to bring in but now it's reason to do that right it. It's a reason to go out and build more networks meet individuals that you know that you can invite and you'll get to know more, and then hopefully when you build that trust, you'll start seeing incredible new deal flow. I mean I guess I wonder why wouldn't affirm WANNA have diversity rider like this I can't speak to why they wouldn't want to do right. Every fund is different. The way that they're structured their make up their cash, their LP's I don't know. What will success look like I'm hopeful that yeah within. A few years year to that, we see this in the majority of venture funds, and hopefully we'll take it to further and say what you embed this in my term sheet. Yeah. Best case could you see a scenario where as this conversation becomes more prevalent? The push from founders right. The competition could incentivize firms to bring on more underrepresented partners. Yeah. Exactly. That's where I hope this is all GonNa go right like the matter what we do it's not enough right hire more people write more checks do the writer create officer programs, cohorts, all of it like not enough the gap is so wide right diversity is forever, and if we start thinking about it in that regard, then it won't become part of our. Normal behavior when we're out building networks when we're looking for companies when we're out doing deals, how we structure them, you know how advise our our founders to think about building their executive ranks their boards, all of it. Right. We'll give them off to a more equitable than just roll and that's the world that I wanna live in I'm an optimist and I'm hopeful that that's where we're going to see ourselves in and some in the coming years here. Alejandro Guerrero is the principal with the firm act. One ventures. And now for some related links as we mentioned in the interview, there are some notable absences from the diversity writer program big Silicon Valley names like sequoia Andriessen, Horowitz client of Perkins we asked all three if they had plans to join this totally non-binding voluntary inclusion of language and their term sheets with the goal of starting a conversation about diversity at all stages of the investing life cycle. Andriessen Horwitz pointed us to its cultural leadership fund and eighteen million dollars. So Fund made up of one hundred percent black limited partners whose primary investor is also black with one goal being to quote enable more. Young African. Americans to enter the technology industry. I should note that the LP's who've put money into the Cultural Leadership Fund are pretty much all celebrities, corporate executives and some athletes. So not the scrappy would be investors who guerrero says he's hoping we'll get a foot in the door with something like the diversity writer. And teepee insights piece from last month notes that the Cultural Leadership Fund has invested in sixty five companies and of those just three have at least one black founder and eleven have at least one female founder. To saying maybe more conversations wouldn't hurt. Cleaner and sequoia didn't get back to us in time for air. And here's what else we're watching in tech on Tiktok watch apparently, maybe you Walmart and Microsoft might team up to buy it and then Walmart would pivot Tiktok towards a more full on ECOMMERCE shopping experience. So creators and influencers could just. Sell you things which listen again privacy and data collecting are real concerns with Tiktok may be no more so than with facebook instagram. Google or Amazon, but considering the awesome and fun and diverse breadth of content on talk and the true love that people have for it. You ve kind of couldn't even engineer sadder fate. tiktok CEO Kevin Meyer who just took over a few months ago saw that Pale horse coming and promptly quit the announced the move Thursday Stephanie who produces marketplace? Tech. Alvarado our assistant producer Michael Lipkin our senior editor Becca Wineman, and Robin Edgar our engineers I'm Ali. Would that's marketplace tech..
"cultural leadership fund" Discussed on Masters in Business
"Yes and I goes well. That's really dumb he's been. You're not even listening to me. I had Sony Urban Music. I had Michael Jackson. White people. Don't like Michael Tax. It's not black music. It's music and I was like. Oh my God that's what we're doing in Silicon Valley we call diversity but it's really urban talent it's this this like we've categorized it into something that it doesn't need to be categorized in because we haven't trained ourselves to see that kind of talent so just give you an example of what I mean by that so at my firm and we started We were like we were like every other firm. I had Frank Chan and he was running research and everybody in research was Asian. And I had Margaret. She was running marketing. Everybody in marketing was a woman. And I had Dinos US cooper everybody. He hired was an investment banker. And like I just went on like that people hire people who look like them sound like them have their back. I know what I'm good at. I value highly early and I can test for it in an interview so by default. That's what I'm hiring. And so I go to Margaret and I go market what is in your criteria where no men can get the job in marketing. Like what is it and what she said to me helpfulness really and I was like Oh snap. I don't know any helpful men and but then but like here's a real real dump thing about what I was doing. Is We're a venture capital firm services. Business you don't think helpfulness is important in the services business like to be able to anticipate somebody needs to get to it before they know you do. You don't think that's a differentiation. Sure we'd have that in our criteria for anybody's profile other other than hers when we added it. That's all we did. We don't have anywhere. Like a attended diversity a diversity program. Nothing one hundred and eighty people were fifty two percent women. All we had to do is actually able to see the talent. We're talent blind and so the right thing to measure is blind. Yeah the right thing to measure on diversity. Inclusion is what is it like like from attrition standpoint employee satisfaction standpoint for your diverse groups. Because the only way you get that to be where it should be if you can see the talent and if you can see the talent and guess what you're not GonNa have a pipeline problem. You're not gonNA have any of those other problems that people run into because you can see it and the talent is out there and so when you get to the Cultural Leadership Fund Fund people think. That's actually a diversity idea it's not it's actually a bet on black exceptionalism and what I mean by that got is this is US recognizing that in the last hundred years every new musical art form from Jazz Chas de Blues to hit rock and roll hip hop was invented by the same group African-americans African-americans. Almost all new fashion ideas were created created by African Americans lately almost all the important new visual artist African American. What does that mean? It's means like you have a group that's genius at moving moving consumer behavior like we can see that so we partnered with the best leaders. People like Quincy Jones Sean Combs so forth were they would invest in our cultural leadership fund. We could then connect them to our entrepreneurs get an advantage vantage on moving consumer behavior and then we just take the money and put it back into getting more African Americans into tech so for us. It's a bet on talent that we can see that the other venture I can't necessarily see and we're benefiting greatly from that and we you know we win deals all the time on that So you know. It's just the right way to think about diversity inclusion which is like how do you gain advantage and you can gain advantage if you're running around blind and then changing your criteria to race and gender. That's not going to get you anything. Cassatt setup urban hr so you mentioned hip hop amongst the list of Musical inventions from African American. I personally so. We're only about five years apart in age but my hip hop fandom kind of stopped. OPT with Paul's Boutique in DC boys. Right I mean. Paul's Boutique is a spectacular album. I think most people will admit the the scratching and mixing and sampling in Ruben. Yeah just just an unbelievable. In fact that was before the Copyright Wall came down so so they were doing stuff that you later. Sampling changed a lot of insurance. They started charging. But I don't know what what the basis for my lack of 'cause I still listen to new music but most of it tends to be jazz and pop news stuff stuff that comes out. How have you managed to stay current in hip hop and what he listening to these days? Oh well you know like I said that's an interesting thing to describe. The art form really evolved than Since Paul's Boutique Kim was just just an amazing breakthrough lyrically And then Dr Dre musically and then you had the great I blue Tang. I'll go I'll somewhat it. Yeah that era I mean Wu. Tang nozzles Jay Z.. Torius PG was an amazing kind of era So that there is still like very good things is happening. I mean so young thugs. New Album is quite good like I would recommend it highly So much fun as the name of the album I think that You Know Dub A. B. is Like everybody loves baby And he's got a new album out. That's pretty good That I like so. There's there's there's new stuff happening like drake as amazing. I think he doesn't. He's almost so big. That like real hip hop heads. Don't give them the credit he deserves. But this guy is is an absolute genius and Putting out continues to put out phenomenal music. I I just got a new car not too long ago and all all the new cars have the The music hard-drive you so between the phone and the ipod I got a bazillion things. Yeah but every now and then I just bring out a stack of disks and transfer it to the dry and the pass amazing. I mean that's what we are the previous car you could use the the St drives this car. You can't take you can take your phone on Bluetooth of course but you know the phone only has five hundred twelve gigs of music and I put some of my favorites but the reason I'm bringing that up is I brought. I brought out seven James Brown discs risks and I transferred the James Brown party people. And then the showtime three Ford this set and Nazem listening to all this stuff for the hundredth time. It's amazing how much hip hop pulled vocal samples beats baselines baselines rhythms. Just I don't i. I have a lot of young guys in my office. Round was originally like most sampled guy. I don't think people realize is how influential he still is to this day. Amazing driving music. It's just fascinating so I've got a tip of your James Brown Fan. So there's there's a show called tales from the tour bus Mike Judge. There's two James Brown episodes you have to. They're the most Netflix. Or it's on. I think thinks cinemax. It's a it's an amazing show. Generally season to James Brown amazing so first of all like just how genius he was the band he put together and how incredible they were and how absolutely nuts out of his mind was he. He never really like he barely drunk and he never did any drugs tell he was fifty five and then he started on Angel Dust Right like that was the first rocket anything. Anything part way pedal to the metal and so you know when people see him at the end they wonder like what the hell happened is Angel Dust Thought the whole thing is like a AH crazy tale of of him so much better than any of the James Brown movies so last question before I get to my favorite question John. What what else are you watching? I mentioned silicon Silicon Valley. What what are you streaming? What are you watching these Well the new season Mister robot last season final amazing season was very stressful. Yeah Yeah Yeah that was like challenging to work your way through. Yeah Yeah Yeah that was. It was very intense. Met A Continues to be intense. Yeah you know. I watched Succession although you will like that it's you know it's very very well done. Show a little bit of Touches the Murdoch's so bad no one. I'm friends with them and I feel like it's not fair. If you look at it through that Lens but glad I still like a super well done show so if if you saw that. Did you see loudest voice in the room. I haven't seen that yet. I've had things about this showtime I want to say it's a six or yeah with Russia. Whose amazing in it? And it's based on the Gabriel Sherman Book. Really it's shocking to look at Russell Crowe and say how it's this one guy plays Roger ailes and some of the gladiator and What was the A Beautiful Mind like it's incredible. How rain can mazing really really well? And then the really unusual thing about him is he not only has the range but he also also has the intangible. He's a movie star. He's a Humphrey Bogart. He's like Denzel Washington like that. But those guys you know the most movie stars. They're amazing amazing because they're movie stars but they don't have rain Robert Deniro but they don't have that kind of acting range as well so he is. He's really unique. What I'll give me one more thing that you watch you Let's see what else I watched I WanNa give you good one by the way. I'm going to have to add this as a regular question because this is a really interesting question. Yeah I'm trying to think what. Oh you know what I liked is The righteous gemstones really started out a little slow but You know it's the guys. She did. Vice Principals and eastbound and down which are both like outstanding? So now I know exactly as gemstones maybe the best of the set. Yeah so I only have you for a few minutes. Let's get to my favorite questions and I'm GONNA do. I'm GonNa do an abbreviated version of this. What's the most important thing we we? Don't know about Ben Horowitz. I feel like people know so much now. Really I think you're kind of an enigma. Your partner is more public than you are generally speed and yet now he definitely is. Well I am I mean. Maybe people don't know this about me but I am the best barbecuer an olive silicon valley. Yeah that's a really low bar you know. It's a low bar but like still I wear the crown per out there you go Who are some of your early mentors? You mentioned Bill Campbell. Both has to be on the Grove. I say any grove really high on that list. What an amazing amazing guy actually? The highlight of my professional career was when he asked me me to write the new forward high output management and. I still think that's the best thing I ever wrote in my life is That foreign because it just meant so much to me. What amazing amazing amazing human? That's an amazing mentors What venture capitalists influence the way you think about venture investing or? You're maybe I should knowing knowing your firm I should ask who really influenced your approach. The Venture Kaplan's you mention Mike Ovitz before who who elsa influenced I think. Structurally in the approach. You know Michael Ovitz in terms of how we run. The firm was by far the most influential. I think that you know in being VC's You know we. We knew a lot of the great. So get Jim. BRIER VINOD KHOSLA.
"cultural leadership fund" Discussed on Masters in Business
"Cya Been Chasing you down for a good couple of years. Have you cut me. I eventually had to work my way through the rest of all the employees at injuries. Injuries and Horowitz. And now I have you in my in my lair I have to ask about the origin of a sixteen Z. I we know that there are sixteen letters between the a injuries in an Z.. and Horowitz how did that come about and full disclosure when I was in your office. You you guys gave us some swag. I have that hat which I wear all the time. I really enjoy it. Where did a sixteen Z.? Come from well well. So we named the the reason we named the firm. First of all Andriessen Horowitz was The big question we've got when we're raising money from the LP's was they. Were like okay. You guys are like already kind of successful entrepreneurs where he really gonna stay doing this venture capital thing. We think you're just GonNa like raise the money. Okay and then quit and really yeah. Yeah that was a big objection and So I actually got the Dow is like mark like if we name it after address them. They'll be stuck to amend they'll know where stuck was serious. Yeah this allows andriessen Horowitz and then but then we had an immediate problem which is nobody could spell that if they were going to send us email or something who eats too as an Andriessen not an easy name to spell not at all and so I came up with idea so when I was an engineer like way back in the Stone Age and such a Geek thing to do. Yeah we used to have to internationalize code To make it work you know make it go from like whatever single the double by Strings and all this kind of thing and so we call that internationalization and we abbreviated it. I eighteen eighteen and I eighteen letters and I was like. Oh this'll be great. While caught a sixteen Z and all the angels and the domain was easily available. Not Andreessen. Horowitz probably wasn't available those available twos as the nightmare to right so when I had Your so our COO. Scott who got cooper yeah so he was in his book He's telling the story. That essentially post ops wear. We're loud cloud you and mark were effectively. I think he called you checkbook feces you funding companies literally out of in writing a check to people and he didn't say this I put these words in his mouth but he's like a very he's a lawyer he's very rigorous. He's very structured shirt yes. I pictured him like what are you guys doing. Wait you just writing checks out of your purse like I pictured him losing his mind and saying no no no. We have to set up a legal structure to get organized. There's a lot of you know. Little urban legend about the origin stories of how. How accurate accurate is you guys? Were just kind of like yeah. Let's give these guys money and give those guys who are we. I mean we were like we started out as an angel fund before even like form the kind of structure of the firm and so forth which now we have many entities as God is very happy with that. I can't even count all the entities. We have But you know like we would would meet entrepreneurs and we were writing checks for one hundred grand two hundred thousand dollars. I'm an that does sound like a lot of money but it's small right. It's seed or angel rounds and Yeah So. We loved an entrepreneur. We would you know his fifty grand. Yeah absolutely And you know a lot of those turned out Really you know quite well so What were some of those I checkbook firms Funding what companies did you. You find out. Yeah Yeah so there is a few that were probably the best checks. Were like things like Lincoln twitter I think thank. We're probably the two of the best but You know one that I really Mental out to me was Company called APP Nexus. I don't know if you know here in New New York but they salt. At and T.. For well over a billion dollars and You know they those guys you know it was just a bet on Brian the CEO and man like he was tough he just went through everything and changes of the business. Like you know people giving giving up on him and all these kinds of things and he just kept going and built quite the company says so so a couple of my favorite quotes from the book. And I'm not again I apologize. Well Jason which book this is from. I think this is from the hard thing book no matter who you are you need to kinds of friends in your life. That's explain that. Yeah so that. was you know it was just kind of trying to come up with a way to describe my friend. Bill L. Campbell. The late Bill Campbell WAS Chairman of intuit chairman of Seo and then chairman of into it you know Kinda legend around Silicon Valley Ali. He mentored Steve Jobs. and Larry Page and a bunch of other guys but someone called him the That's the name of the book the trillion dollar trillion dollars coach right exactly But you know the way I saw him was You know there there. There's two kinds of friends. You need one. Is You know if something good happens in your life. Who Do you want to call? Because they're we're going to be as excited about it as you would be yourself like and they have very few friends like that. You know like your faith and that's always a great line between like fake friends and real friends. 'CAUSE is your friends. You know like they hear it and they pretend they're happy but they're not really happy and ahead of me again and then you know the second it kind of like if you're really in trouble like you know like you're in jail and you have one phone call to make sure you're GonNa Cau- and both those guys for me. Were Bill Campbell. That that's quite Quite fascinating Another quote from that book. What's the worst thing that could happen? What would I do if we went bankrupt? And you describe that that is a very freeing question. Yeah yeah so that was so you know. I didn't know what cold sweats were. telly became a CEO. It'd be it'd be it three o'clock in the morning. I'd be wet and awake and got scooby boiling and it'd be like Oh this is what they meant. And so you know we were in a lot of the trouble The company was definitely headed for bankruptcy. And I ask myself the question I was like okay like yes what. What's the worst thing that can happen? I said like what is the worst first thing could happen to the company and I was like okay. The worst thing that can happen is world go bankrupt delay everybody off all of our customers who trust US fail like all the investors who trusted me would lose sir money and like I have no friends and I was thinking well. That's pretty bad. And so then I then my next thought was like well. Is there a way to kind of Oh. And then the last part of it was really essential which will maybe after all that I could buy the intellectual property out of the bankrupt thing and make it into a new company and then I thought Whoa Weiwei for bankruptcy and maybe I could do that before we went bankrupt and so that that's how loud cloud became up. Swear exactly and that worked out pretty well. Yeah no thankfully it did it. Did I would probably not be here today. Had that worked out you know. Speaking the failure failure would have my life would have been very different. I think we had failed at. Why did loud cloud network? Was it just too early in the evolution of of bandwidth server technology etc for like. That was Amazon web services. Yeah a good couple of years before well and I would say say all those are true and then maybe the most fatal thing was it was built pre of virtualization which there's a technology called virtualization which kind of transformed Your ability to do cloud computing cost effectively. which is you could take a single a computer and make it luck? Many computers and breakthrough technology from a company called. VM Ware. Many years ago And that really kind of changed the nature of it the AH EMC Botham who. I'm trying to see about them right right and That was another giant Pre Amazon Cloud Data Storage Company back from late nineties. Yeah Yeah Yeah. No absolutely one of the biggest There was one other question I wanted to pull out one of your quotes that I thought was so interesting. Oh this one. I love this quote. A healthy company encourages the people to share bad news. Accompany that discusses its problems freely and openly can quickly solve them. Accompany that covers up. It's problem frustrates straights. Everyone involved does describe that. Well like You know there's this old saying that like NBA's come with a lot of the time which is is you. Don't bring me a problem unless you have the solution and that's kind of good except for what happens when they don't have the solution and then what you're really saying is don't bring me problems in that can become like pervasive in the culture culture. Where you know I always Elected to the Wicked witch in the whizz. where she sung? That's I ain't nobody bring me no bad news. You know like you don't want the whiz wicked witch running the company. Because you need you need to know what's wrong because the faster you know it The better it is And the slower. You know it becomes a Kimchi problem. The deeper you bury it the hunter gets and so but it's a very much a cultural thing because people don't want to be associated with problems TMZ serve you know getting them to bring them to you. You're there there has to be some kind of like reward in the culture for doing that. And one of the things we didn't get to during the earlier. segments I wanted to ask about I I work in the financial services. Industry diversity is a big problem. They our It tends to be male dominated a tends to be not a lot of people of Color I know a lot of firms are working on that. But it's progress has has been slow you guys have have created specifically a cultural leadership fund to try and change that. Tell us about the Lack of diversity in venture capital and what interest in Horowitz's doing about that. Yes so let me this. This is a chapter in the new book called Genghis Khan Master of inclusion which kind of goes through this theory. And it's a very a very important topic and and it's something that you know generally silicon valley's getting exactly wrong and think Wall Street probably the same and it's not intention so like the first misinterpretation people think echo everybody is racist and sexist and finance and in venture capital and that's not actually the thing And in fact starting from that point actually makes you Effectively systemically racist and sexist. And I'll tell you how because then you go. Oh I need you. Women Minorities in my company and then you hire them and then everybody in your firm knows they came in the side door right women and minority door as opposed to the front door I'm the real problem is you can't see the talent so I'll give you a metaphor on this. So my friend. Steve Stout Who Ran Sony? Urban Music calls me up one day and he talks in these kinds of ways. He Goes Ben Iran Sony Urban Music. And I was I guess I know that Steve But I also knew he was gonNa tell me a longer story and he goes but it wasn't Sony Urban Music of Sony Black Music But we couldn't call it. Urban Music is black music as I would have been racist so we have to call it urban music. I was like well. That's kind of silly. And he goes no. That was one of those silly says because we called it urban music icon market in rural areas like no black people live in rural areas..
"cultural leadership fund" Discussed on Boss Files with Poppy Harlow
"Like who knows should mark Zuckerberg that this should facebook make that decision or should that decision to be made by voters and I think like he's got like I don't really think like a company deciding what's true or not intellect. CNN has political viewpoint. That facebook doesn't as-as Fox News as does. MSN doesn't have a political viewpoint. I mean we're I'm serious about seeing your view but I mean our that's our job it's to be down the middle and depressed the Democrats and the Republicans. It's what I do every morning yet but I I think that Okay well like I. I think thinking news organization that has a specific audience. That makes money on. There's also like I think that's a legitimate question and I don't you know like I. I think his answer is probably the correct one It's a very difficult kind of I. It's just like a Very difficult because either way he'd go like if he was making that decision and he eliminated any ad that either party ran like there'd the massive protests on that. Do you think we'll move on after this. I'm disinterested in your take was born you brought her up. She says facebook has too much political. Power our is she right. Well I think look here. Here's what I would say It is I don't know if it's facebook or the facebook community. I think like the facebook community is very powerful but in as a giant community But like the history of media or media technology has been that it it is had a lot of political power for example. The Radio Got Hitler elected. No question right like without the radio. His rise to power doesn't happen. The television got Kennedy elected facebook. Got Obama elected. Did facebook get everybody. I look look I think president trump went on facebook. No question And that's what that's what actually triggered the outrage. But it's something that's been going on for years and then and the question is okay. Now that we know that now that things have changed and you have this new media that drives elections just like television. Did just like radio did What's the right governance for it? How should it work and so forth and I think you don't know that until it actually happens? Does Mark Zuckerberg with fifty eight percent of facebook given that he has a little Over seventy five percent of Class B shares. Too much power there is he right is he the best leader in this moment to have the chairman and CEO role. Look I think he's an excellent leader. Are you know. He's a very earnest person. sure you've interacted with them and so forth And his intentions are the right ones. Now I think it's a very complicated needed. It's complicated. I would just facebook. It's a very complicated system. Can talk on diversity because I know this is very important to you. You and it's something that we don't have enough of in the valley for for sure Let's talk about your experience with it because you guys have in the last year just added four women. I believe general partners out of out of seventeen seventeen now right even toured the number birth. Something like that but talk about about that because you know some of the criticism of you guys has been you. Were slow to the game in terms of adding more women. What do you think yeah? It's not true because like if you look at any other top tier venture capital firm. They were all around like fifty years before they had their first woman. And like we're less than ten years old so or just ten years old so I think that that's not an accurate statement Look if you look at the firm just generally Where fifty two percent women? Then where I think it's twenty. Twenty two per cent African American Hispanic where it will like I think seventeen percent Asian so so it's like a pretty diverse firm But like the you know specifically the reason women general partners took a little longer was basically the original rules that we set up which is original brand promise of the firm and I changed that for other reasons But you know in like and we ended up with more DEF- diverse General Partner Base. But I think like the way you do inclusion is important because what's important is actually the number is like if we had seventy percent where men are eighty percent Chinese people. I would be fine with that what I care about is what does it mean to work there. And what are like what are the relative employee satisfaction rates promotion rates attrition rates across Gender and race because that says can you see the talent of everybody coming in. Do you really understand their capabilities and what they can do or are they dismissed because like your talent blind blind and if you can see the talent then eventually like at least my views a talent is out there. You don't have to Or like you're going going to track the right kind of people if you can see the talent and and you'll be able to see them coming in and you hire them because you said I thought it was interesting just building on your point what you said I think it's the the La Times in two thousand fifteen. You said this. I know that my firm would get a thousand times more credit if we had at least one woman general partner rather than fifty three percent of the firm being women. But that's the least impactful thing I can do. That struck me because I think most CEOS would be scared to make a statement like that although the Gold Star that says you know I I love this group. I love that group. Like that's what they're going for. But I think the more important thing is like. Can you see the talent and devalue it because because like that's the actual cultural sustainable thing you look at these companies that go for the Gold Star and the people who work that they attract Lee very quickly and don't like working there and don't get promoted in their numbers never changed for that reason on this point you said to the Wall Street Journal at Their Tech Conference. I think just last week or so that that at some companies still see diverse talent African Americans women as second-class citizens inside their own companies. Go in the side door. It's like okay. We need more women. We need more Hispanics. We need more African Americans. So we're GONNA have special diversity group and you're not going to go through the regular interview kind of this criteria you're going to go through the interview criteria okay. Well that's fine for getting people in but once they get there then they have to live with that decision that you made because everybody else Elson. Company can't unsee what they just saw and so you've created an environment where like it's just a bad place to work if you're coming from diverse US group the real thing like if you're doing at the railway then you will like understand what people bring to the table that aren't and like you say look. Here's the dynamic in in hiring is and you can look at any organization. Oh there's a man running that group there's a lot of men on working there. There is a Chinese person. There's a lot of Chinese people. There's a woman. There's a lot of women working there and that's because people get left to their own devices just hire themselves. It's like I know what I'm I'm good at. I can test for it in an interview and highly great okay. You have to break through that. If you're actually care you actually have a real inclusion strategy Jay you have to get beyond those criteria you have to get to things that you don't have and give you an example of this So we had a group who are when we started the firm. Everything was like that can also ask you about the Cultural Leadership Fund. What you guys are actually doing in this front? Yes yeah yeah well. Oh that's part of it but like it started with our own firm and you know we had like you know Franken was running research. We had all agents working for him. You Know Margaret was running marketing at all women working for all that kind of thing. And so I asked Margaret went down. I was like well. What's your criteria where no man can get the job and she said helpfulness and I you know took me back? I was blown away because I was like well. I don't know a lot of helpful men but more importantly how well you know more than I do. But here's the biggest thing on it. I didn't have that as a criteria where venture capital firm services organization. How can anticipating? Somebody's needs enacting on them. I'm before they ask not be powerful for a firm to distinguish it in the marketplace. Nobody had that criteria. We were blind to to that skill by taking by widening the net lowering the bar by widening. The bar like we can now somebody he comes in who's helpful. We can value that we value is on the way in and make us more likely to hire them and we can value them once they get there and learn from them and make that a real thing as opposed to trying to value somebody for like what color they are which is just like takes you right back to like the stupid kind of racist assist ideas that got us here in the first place and so you really have to. In order to make conclusion work. You have to be able to see the talent you have to be able to recognize talent that you don't have and that's and that's not the answer. No no no. It's a IT'S A. It's a process for understanding talent. Not that you don't have because it's not just on the way and it's once they get there like that's a more important thing because you know bring in people and making them miserable in your company any like that. You're not helping anybody with that. They asked US almost every executive. I sit down with you or your father. You have three kids right So what do you want. Your kids is to say about you one day. Well that's a that's an you know they're adults now. My kids are adults. They're still your kids. I mean when you you say when they look back at you and all you've accomplished and written and done and how you've parented what are you. What is your hope? In the end of the day I would say you know I hope they say that. I tried to contribute more than I take out but you know they're their own people now at at this point. So they're all they're they're probably You Know I. I'm very proud of my kids so I would just say that like that's probably the thing that I hope they take away is that you know. They came out outright. And so maybe I didn't mess it up there you go. I think that's the best. Any of US parents can help. Ben Horowitz appreciate the dialogue and congratulations on the book. Thank you very much thanks..
"cultural leadership fund" Discussed on a16z
"Guess what the answer was exactly proportional to their commute or workout time so if the commute was fifteen minutes about was a perfect length of there was forty five. That was great. Is there like the time that you aim for no. We don't time it seems like the sweet spot is somewhere between twenty and thirty minutes by philosophy about time and length and this is so strong both for written and unspoken content is I think discussions about length are so arbitrary religious debate. It should be as long as it needs to be. So gratuitously long cut it if it needs. That'd be longer because we're going in depth than it's so interesting why would we cut that arbitrarily. But this is the caveat to that the payoff and the insight permanent has to be proportional to the length so so if the person's listening for a long time there's enough payoff. That's a complete waste of their time. They're never going to trust you. You destroy that trust you lose them as a fan. So that's the first thing the second thing to your question about the idea elaine. I do believe that short-form podcasting is a really important form. That's one of the trends in the space and I had a moment kind of an insight was. I had this realization. That gosh these other people are doing news. Shows like the New York Times daily inbox today explained and again. It's the reported model third party experts which is Great. But why aren't we. We doing a first person where people know. This industry are commenting on it directly and do that way so I was like I want to show and news. podcasting is actually a growing trend. And then why don't we combine it with short-form so then I thought let's do it for sixteen minutes because Andrews and Horwitz Sixteen Sixteen. Why not so head? Sixteen minutes now. I think this must be much harder to edit though. Oh well I I have not gotten it sixteen minutes sometimes. It's like seventeen sometimes at nineteen. I try to only have it below twenty a couple of times so for the first I applaud. I tried doing it reverend. Just one full take a few times and then what I have found. This is actually true for you in particular you said different things on each take and I was like. Oh my God what was she said. There was so good and what she said. The other was also really good. So I use the editing. Too Dense seem together the best parts of what you said and if you think about insights it's per minute and the fact that you have only this many minutes how do you add value for the listener. You want the highest insight per minute and the editing. So yes it's now a more highly edited show and I'm kicking Aqui. Myself for it because it takes a lot of time a lot of work and it's frigging aiming to be weekly. How do you think about frequency of programming? Does it have to come out at the same time every week. funnily that's another area where people have a lot of theories and when I first joined someone from the outside to me it should be exactly every Friday at three. PM There's all kinds of theories around this and that's all wonderful. Here's the three things I learned. The best content will always win time of day. All the other stuff aside as you know I. Am Master of timing things. As how I made my section successful and writing their specific timing for Zeitgeist morality but for pus there is no such thing so someone asks on twitter about the tools is for creators and distributors of Podcast for people seeking to start their own podcast because not everyone is a big brand like this is actually sub stack which people think of as a newsletter only tool. It's really about connecting writers and people with their audiences so people are seeking a place to both host and distribute what better place than within the email ecosystem. Because you really own own your audience when you own that. Here's the thing people may talk about a podcast on social like you'll see a ton of people talking about the a certain episode but the reality that they're actually listening to it is very a little and so I think that the evolution of social podcasting which I know you're interested in as well. It's still too early so technically podcast have what I call quote slow-burn in Baraladei. They don't just go viral overnight. It takes about a week like the first wave a listens. Isn't that first week. And then you kind of see it grow from there kind of like how I watch. TV Now oh Oh my God. That's such a good point. Well you and I did a podcast on a podcast about podcasting. People should listen Episode if they want to hear our thoughts on the trends because we did talk about binge watching and other things back on the timing thing. I do believe aditorial especially for written content and this thing that I dubbed the mcklusky curve after Mark mccloskey. My former colleague got wired. He's now at sports illustrated. I believe but anyway anyway he always talks about how you add value. I say it's when you're offering something new or differentiated or leading early in the cycle. Or you do it in the end of a news and discussion cycle where it's after. It's very noisy. And you have a very fresher differentiated take and kind of being in the middle of all the noise of the worst position to be in in terms of value for the timing of it. So that's like literally my philosophy ossified one thing. I didn't mention in the cycle. Someone asked about the cycle from ideas to publishing that a big focus for us is around more promotion. And you know. Oh that's sort of the whole cycle of things and so one of the experiments by had wanted us to do was to start doing audio grams and people promote podcast through video you know the whole definition of what is the podcast blurring Tom Webster. Edison research sharing how for many young people especially those that are streaming whether on video or audio and spotify. They don't know the difference between whether it's on video or not so when people say subscribing your favorite APP it could be youtube what about sound effects music. Yeah so on the sound effects and music. We tried right so Hannah did a great episode for Halloween. If years ago where she had sound effects for the person who was talking about the why behind the weird I would like us to have music on our show was as long as at corporate overproduce Lick. That's not our aesthetic at all. However I do think we need that and it adds more dimensionality? Just sets the tone in the beginning. So for Ben's new show. It's Ben an poets and Chaka Singapore they host a show called hustling tech which is guides technology for hustlers. But what it really means. It's really helping people use technology to help themselves. which is an amazing mazing concept? Basically for that show. I did add music and it was interesting because I didn't want like stock music and so I asked Chris Lions you know who runs our cultural leadership fund. But I didn't even know he'd put his own sample in there. He sent me like six tracks including all these stock things that had a more hip hop sound to it and it turns turns out one. We all liked happen to be his personal so I was so excited but it sets the tone for the show and I do want that the reason we won't be able to do it those because licensing for songs is very complex complex is not just copyright it's like layers and layers of roughly one of the things that you're experimenting with. I get almost sounds like you're treating startup or like a product totally had a moment of emotional title where I got a little teary eyed. Because I was so low for a long time I it was me and Michael. That was so low for a long time then I hired hand that it was me and her and then about almost a year a year ago hired Amelia to be managing editor. And she's growing the team so that we can scale this and I had proposed that we hire an editor for every vertical verticals. We can really just go deep and kind of channelize incites there and truly self select the audience so anyway to that point I kind of got emotional when I saw that all these deaths that had been empty around me had people sitting in them like I got kind of like Oh my God is so start up. CEO feels this. Isn't I'm in go because I've never done that. Okay what are some new experiments. You're thinking about so we'll in general in podcasting. I'm fascinated by audio fiction. That's like a really interesting and important trend however I cannot for the life of me think about what our version of audio fiction would be. Maybe I'll just maybe do think personally so who knows at some point. I can still waiting. I know so am I.. experiments in our podcast. Okay so there's a blending of as you talk about you wrote about this in your knowable post that you get this found time with audio one of the things that I'm interested in. Is that if the blinds definitions of podcasting is blurring. And you really talk about this more than anyone. Connie so I feel like I'm preaching to the choir here but the idea that audiobooks and podcasts and educational content all kind of blurs together for that same reason reason. Why wouldn't people listen to blog posts in podcast form or email newsletters and podcasts for him? So I asked them the other partners to read out loud their blog posts on air. I'm probably read a couple and I do want to experiment more with us doing more content in the audio form in that way. There's already tools like autumn out there in media outlets but just more or like a voiced way and not so manual. There's like a new set of tools coming about in that what are some experiments. That didn't work early. Oh that's a good question so very early on Michael. Michael Coppola recorded a conversation with four kids from a youth and Tech Conference and he told me about the footage and how complicated it was and I was like. Why don't you make it into like a narrative where you narrate it and he did a beautiful job turning it into sort of an audio narrative stories? I'd like to do that and it's not that it didn't work. It's just that we haven't invested in it because we were so building one style so like to do more of that. Experiment didn't work so back to the question. You asked me about the ideal length so I thought well. What if I experimented with interstitial 's where we could segment in episode sewed and our specials like music intermission almost like a pause point that the listener would know? Hey if you wanNA take a break. This is a good spot. My thesis at the time was that people on campus kids on campus at Stanford told me they were listening to it like well walking a class and they don't WanNa listen to a long episode because a commitment was so big so I was like well. What if it's a long episode segment for them like the way you have chapter turns? That didn't really work because then I realized very fast from other people like a DA. I don't need that my upholds my spot right so it doesn't really matter so it's kind of orchestrated and contrived so that didn't really work although that might come back..
"cultural leadership fund" Discussed on The Tim Ferriss Show
"Episode is Ben Horowitz you can find him on twitter at B. Horowitz H. O. R. O. W. I T. Z. Ben is a CO founder and general partner at the venture capital firm increase in Horowitz he is the author of the New York Times bestseller the hard thing about hard things and the brand new harper business book what you do is who you are he also created the a sixteen Z Cultural Leadership Fund few are wondering what a Sixteen Z. Stands for just count the number of letters between the beginning and the end of injuries and Horwitz so he created the A16 Z. Cultural Leadership Fund connect cultural leaders to the best new technology companies and enable more young African Americans to enter the technology industry prior to Sixteen Z. That's interesting Horowitz Ben Co founder and CEO of ops where formerly known as cloud cloud which was acquired by Hewlett Packard for one point six billion dollars in two thousand seven previously Ben ran several product divisions at netscape communications including the widely acclaimed directory and security product line he has an MSNBC in computer science from Ucla and Columbia University respectively. so without further ado please enjoy this wide-ranging conversation with the one and only Ben Horowitz bend welcome to the show thanks tim very excited to be here and I have so many questions I have pages and pages of questions we'll try to get to as many as possible I thought I would start with a name that I know you're familiar with in that is Andy Grove that may not be a name that all people know but could you please describe who Andy is why he's interesting to you yeah so andy was kind of one of the founders of the Intel which is kind of the foundational company of Silicon Valley and foundation not only technologically but also culturally I think importantly and just an amazing guy probably the best ceo we ever had out here but you know he started his life he was a refugee from Hungary from World War Two and you know he had escaped the Nazis and the Communists ah and kind of came over on a boat and with I forgot to give them like twenty seven dollars when he got to New York and he taught himself English Russian he kind of went to school at c. n. y. and became a physicist and then you know eventually met up with Bob Noisy actually told me a very funny story towards the end of his life where Gordon Moore who is the famous Moore's law and the founder also co-founder of Intel when they brought Andy in to Fairchild Semiconductor the way they picked him about an anti told me his very light he said he finished his PhD at Berkeley and two and a half years and they endured more had found that people have finished edge deep quickly correlate with high performers so that's how he got the job well that's perfect jumping off point off for about a half a dozen things that has meaning to get you anyway but let's I'll try to ratchet back my mic my caffeine enthusiasm and and focus on Andy for a bit longer high output management you wrote the foreword to reprint of that book which when I lived in Silicon Valley I was able to observe the rebirth of resurgence of this book and its popularity and I know some incredible founders who have stacks of this book in their officers to give away why did you agree or offer right the Ford and what are some of the takeaways that people might find in that book or that you found particular value yeah well you you know is my favorite management book by far in fact I think it might have been the only management book I ever read that I liked so it was quite a thing for me when Andy called may ban you know I was watching you give this talk at Stanford and in the talk talking about my book my first book about heart things and somebody asks me why road and I said well you know when I was a kid I read this book high output management and like it was amazing because it was the CEO of Intel which is it's important company and technology and he wrote this book and it wasn't until I you know say how great he was early GonNa like all these books that these guys right who you know run big companies and how they here's what I learned the value of a dollar and then this is when I be built a great big company and all this kind of thing they said but it was a book that teach young people like myself how to manage so it's just a complete contribution back to the environment with really you know in a way nothing in it for him and when I reading that I said well if I ever make it if I ever kinda become anybody that anybody wants to listen to I'm gonNA write the sequel to output management and that was I tried to do with the hard thing about hard things when he called me you know there was no question I was like one hundred percent I'll write the forward the reason it was such a great book is it was kind of the original hard thing about hard things in that most management books are like here's all the obvious easy steph here is like a light frantom steps to do the most easiest thing in the world that anybody could figure out like who wasn't like an idiot but anti grow it was like he went all the way like right to the worst hardest most messed up things that you'd have to do so like one of the things I remember from the book is he goes well hey like you're writing performance review and the rule of thumb is you never put anything in a performance review that you haven't already told the employees right like that's the role that's what we do and he's like okay so now you're out the performance review and there's something that the employee needs to improve that you haven't told them what you do and it's like okay that's it that's the real thing and he's like you put it in the review or do you not put it in the review and his thing is the review and like it's bad that you didn't tell them but it's worse than not tell them now and and those kinds of difficult decisions like how you really do that or like you know it's like okay you know people are late to meetings you know they're wasting everybody's time so stealing money from the company like but like it's very where to deal with them and so how do you deal with my mad and that kind of thing which is really what you need to know to put any of these management techniques into effect as like how do you do when there's real conflict and that's why it's such just just an amazing book you mentioned the coming to meetings late in one of your blog posts you have some if some fantastic blog posts and excellent writing of course on the web in this case and then in the books but the you share an anecdote that begins with for example we talk about sort of wartime versus peacetime see the basic principle most management books that you should never embarrassed employees in a public setting but Andy Grove in the situation that you just mentioned once to an employee who entered a meeting late quote all I have in this world is time and you're wasting my time and my favorite and all you have to realize that like he was like God so it was like God God on so it's like God telling you that you're wasting so I suppose the the first question that I'd like to ask and we may end up getting into the wartime for peacetime CEO differentiation but what occurs to me is that he has he has a scientific background in engineering and physics background you also have a computer science background how do you think about management what is it and I know this is a very broad question but to do do you think about management differently than many people it would seem to be the answer is yes also just based on the observation you had about most management books which I would agree with how how has your experience your life experience maybe including computer science informed how you approach her think about management while I think it's a you know it's an interesting combination because there's a part of an engineering background that's extremely helpful which is can you think about systems and can you think about like how like broadscale systems interactions occur and like what the implications are in a different part which is a very kind of I would say hi E. Q. Component which is in order to make that system work you have to be able to see the company through the eyes of the people who are doing the work which are usually the people are not in the room when you're making the decision when you have to understand how it's gonNA affect them how it's going to change their behavior and so forth I'm just so far as an example of that like you know it's easy like if somebody comes to you and they say you know ban I really deserve a raise and you could go okay well I like you and I want you to like me so I'll give you that raise but you have to think about if you're bad at all you go okay well like how will it look to the people who are not here is that fair have they gotten a chance at it this person just getting the raise because he came into my office or a like you know does he really deserve to drive a systematic process to evaluate talent and allocate the money that we have or do I rent it like that because I'm not really thinking about it from everybody else's perspective and so you kind ended up needing both to be good at it and I think you know kind of going back to indy screaming at that employees that that's kind of a little bit in the balance right because you know that employs definitely gonna be like ashamed and horrified and maybe deep motivated by him publicly embarrassing him but in that instance what he was doing something different which was he was setting the culture and saying look culturally fundamentally like I'm going to teach everybody in this company lesson by saying something that's so powerful and so colorful that it's going to spread like wildfire through my company and everybody's going to know that stockade waste people's time by being late for meeting and that's more important than this case than the individual so it gets you know it's kind of a Confucian approach the to the individual must be sacrificed for the hall and you have to do that as CEO from time to time you don't want to do it gratuitously because that is definitely GonNa hurt somebody I don't think so you know and and maybe that's a great employees or whatever but you do you know particularly if the culture is in place and they're kind of willfully ignoring the culture which I you know I believe is the case in this case then you have to kind of value the system and value ah above that person's feelings these are kind of the trade offs that you make in management and that's why it is complicated to get it right and why not you know it's always like broken down and management books are often it's like you're talking to one person at a time and that's never the case you're always talked to everybody if is a useful distinction I'd love for you to define the a two terms for us for the differences between two terms that is management and leader yep how do you how do you distinguish between those two I know it seems like a stupid question maybe but if I'd love for you to if you're able to just comment on that for a second or if it's a bad question we can move on I mean I think a lot of leadership is or the way I think about it and then kind of you know we're you know my own dictionary of it is leadership th there's kind of a is a lot of getting is the art with kind of getting people to follow you and as Colin Powell said you know if only out of curiosity and I think so that involves kind of having a vision being able to articulate it being inspiring making creating a feeling among people that you that you care about them in a way and you care about a their goals objectives and and you know what they want out of life Dan People WanNa follow people who have you know some number of those attributes management gets more into okay you have this great Asian you've articulated everybody likes but like how do you operationalize how do you kind of break it down into its steps how do you make sure that people who need to communicate are communicating in these kinds of things so it's kind of a lot of leadership is knowing what to do getting people to follow you and then you know management involves getting people to do what you know and that's a kind of on the on the on the former in the case of leadership getting people to follow you if only out of curiosity and in this May may not be a fit but in the course of doing research for this conversation I came across mention of a paper called good product manager bad product manager when I was a little kid yeah and it seems like at least the way it was phrased in this fortune piece it'd be it quote became a Bible for the startups in this case referring to netscape for startups unpolished young executives could you describe but that paper and what impact it had on you and or the people around you and it came out yeah so you know it's funny as it was a piece I wrote out of pure frustration who turns out like product manager is our job in silicon valley and that in every single company it means something different and.
"cultural leadership fund" Discussed on FinTech Insider
"Only invest in your spare change likely you're not spending enough money to make enough spare change to create an actual and then the fees that you pay the account will probably we kind of eat and what you may have an interest of the investments you make it still requires a level of injection every week of cash deposit to actually go anywhere so why i have a sensible point in a silly point. Which one would you like. I said i'm does this mean. We can get jennifer lopez. I was about the same same things yeah i mean. I think this gives us permission right. I mean like i as one of the things i think on this is it's it's easy to get off about jennifer lopez and like but i i think it's a very obvious trend of certain people in the states particularly invested down will jada spurs put money into step and bolt. Now's went into step google chris lions he runs the cultural leadership funding in andreessen horowitz got the smiths sean combs chance the rapper quincy jones snoops and kleiner. Jay z is making noises with mossy ventures and i. I just think that it's a wider thing that's going on the states which ah going on generally but there's a there's a big impact young people empowerment of underserved communities in the states and a lot of people talk mm-hmm and one of those stretches financial empowerment and one of the ways people are doing this is getting investing into these spaces and i think that's i think that's where transfer boys went really really right with how they landed within the state on the thing and how think ones i should absolutely go not after hipsters in brooklyn they should go after two people who <hes> they should use that cheaper cost base the proven model and go after these communities and like i really david notice but i have like a i would really liked the brand to get across the state and change ranger of did or i'd ultimately had like a music video with a ranger someone wearing burberry and a pink card. I think that would be really cool. Oh from apache arctic perspective but if it does the right thing which has actually helped people who are underserved so i think a lot of these investments. It's like there's a water point. It's real easy just go. Ajoy lows invested in this is kind of funny and i think that's like a coup. Point might disappoint you on that one 'cause. He said he wants to do the growth in the u._s. Exactly the same way as he did in the which is one of mouth no mark our guys get into different communities like david knows. I'm going to different community within in los angeles within new york. Go after communities really want this an mobile first and that's the thing i think the difference between the u._s. and the u._k. It is we are a smear oversize in a state so say community and community in st on states. He's gonna be fascinating to see how they sort of get into it. I think from honesty like i'll definitely get jail on the mass to and i think the point around almost like coming back to the cycle that whistle seeing that we talked about earlier own from investment specif- i mean people like jay z and and snoop dogg investing in kana like it just shows fintech actually a really good place to put money right now in terms of you know the reason. We're talking about fintech over tech in the u._k. In terms of the the valuations in the progress is not. I mean it's flourishing globally. I also see this is actually actually like the world's that i love colliding like wait snoop dogg and like well. I am as a getting involved in fintech lake lake. Somebody can tell me. Chinese food is good for you. Then like my whole world is better. I guess the outside of this as well as i mean on on the acorn side of things they're looking at so about sixty sixty percent of the coen users are under thirty five and about a third of the accounts that are actually being open to been so at seven hundred thousand dollars accounts that they've had a now retirement accounts..
"cultural leadership fund" Discussed on a16z
"Tire about back so so i mean look there there will be there at the terms x rental retail so like experiences like look i mean if it's like a good should be taken as a whole experience to go there and apple store it's a you know it's got something where it's like there's like real magnetic appeal to the experience on fair enough right and there's there's too much companies were involved in there doing things like that but like you know the idea of were gonna buy a bunch of stuff that other people may ten were gonna put it in a big box women were gonna make everybody driving the big box like the problems that are kind of twofold number one is consumers don't want what you want is you want the star trek replicator right like what you want is like you press the button and like there's my stuff right like it worked great on star trek we don't have that yet like we don't quite have that we don't actually have the materialize there yet but we do have the ability press the button and stuff just drop off so i know the logistics infrastructure is for delivery is getting built up right very very rapidly now and so i think the the consumer behavior is cutting over quite quickly in any other problems just kind of traditional it's eight thirty retail where you're not selling her own product you're selling somebody else's products is you just can't you basically you're you're lebron has a retailer right you you basically living on the basis of credit from the suppliers and the problem with that so you're kind of like an overlap burbank and a lot of ways and so the problem with that is you look there's basically no retailer of other people's products where they could lose thirty percent of the revenue and then they stay in business which is why you see these retailers just going bankrupt like all the time right it's like toys r us was the most recent big when like it detonated and then it detonated so hard ashley winning the full liquidation nation right which everybody thought it obviously toys r us like people toys like gift one like obviously somebody who's gonna buy toys r us some big there's just no way to make the math work and so i just i just think it's over liber business and it's it's part of who i know what it's gonna do is they're interacting it's gonna open up space space right and so there's a whole revitalization of physical environments what's gonna happen right including you see that happening already in cities but i think it's gonna happen all over the place because a lot of his face is gonna open up her what's more interesting uses so instead of going shopping i'm gonna do something with my wearables and what will that be what's the potential in wearable i think it's a really big on right now is i think audio audio is on the rise just just generally in particular apple you know what they air pods is just i think an absolute home run it's one of the most susceptible thinks it's just like this little products and like how important could it be and i think it's it's like tremendously important 'cause it's basically just like a voice in your ear anytime you want and so you have the well i just give you one example there now these to these new kind of new kinds of youtube celebrities and everybody's kind of wondering like what you know where people getting all this time till like watch all these youtube videos and listen all these two people you know in the tens and tens of millions and the answer is like they're at work right away because they've got like a bluetooth bluetooth thinking they're gonna write about ten hours on the forklift right ten hours of joe rogan right and so like that's a big deal it's a voice you all the time and then of course speeches as you wise on his is rapidly on the rise and so i think audio is gonna be you know technically important i would say second nominee for wearables is just generally the concept of sensors on the body right and so here they apple watches is clearly out in the league with what they're doing with the heartbeat center sir but i think we'll have a full complement of medical grade sensors on on her body in a way that we have chosen to over the next five or ten years and i think we will get to the point where we're gonna be able to do things like heart attacks and strokes before they happen but i think flaming talking about like you talked about a killer apps like i'm gonna have beep i'm gonna have a heart attack and four hours maybe i should drive at the hospital survival rates of heart attack in the hospital it's like ninety nine percent survival rate for her tech the conflict fifty percent like there's an opportunity for like a massive increase of of of quality of life but the sensor platforms people are gonna have and then i think i think optics are coming right and it's gonna be a long road but i think aaron vr both gonna work and i think they were gonna have heads up display they're gonna remove the need to you know what we have now which is kind of this little pane of glass were expected the kind of experience the whole world through right the whole world in open up around us what what are we gonna do with augmented reality in virtual reality so i'm in believers in both i think air has tons of potential applications working at home we could spend a lotta time on that i think we are gonna be like a thousand times bigger in the valley right now this is a very contrarian view because all the the general theme here in the valley is gonna be they're gonna vr and it seems like obviously air should be better the vr because obviously if you could do things overlaid on the real world that should be sort of inherently more interesting than having a construct sort of a synthetic world i just think that's only true for people both who lives in a very interesting place in the real world which we all do but you only you know something between my point one percent one percent of people on earth living a place where it's like they wake up every morning they're like wow there's so many interesting things to say right like most people don't move in a place like that right and so for everybody who doesn't already lives on a college campus in silicon valley in a major city the new environments are gonna be great vr gonna be inherently much more interesting writes in the physical environments then there's gonna be a lot more of them to choose from and so it's it's gonna be amazing then there's a tweet i've been dying to ask you about there's two types of people in this world fresh prince of bel air people end martin people i'm martin person for what it's worth who's martin that's funny i think late roseanne and i i replied so there were two kind of major african american television shows out in the early nineties the fresh prince of bel air which is based on a rapper known as the fresh prince and his dj dj jazzy jeff so the fresh prince is actually bill smith him i know but the martin is what puzzled me martin is martin lawrence who is a comedian genius comedian who is also incredibly crazy so crazy that his special it's called you so crazy it's just like a very very crazy guy but fresh prince of bel air is kind of like the beverly hillbillies it's kind of like you know you get the black people from the inner city and you put him in beverly hills and it's kind of funny and it's safer you know everybody there's nothing to educate you keep it kinda easy and whereas martin was like just fall out like martin was like actually the hoods and he was nuts and like the whole thing is great and thoughts of us myself now that makes sense could you recommend a rapper for people who think they do not like rap music will smith real friends the dollar and does mark like will smith scott market if we think about television as presenting conceptual material to us and every now and then you you'll watch tv shows a what's a tv show you've been watching lately has a lesson about venture sure capital and what's that lesson named three oh i watch a lot of tv hot and catch fire which she recently ended after four seasons i'll catch fire when it came out came out right after madman and it came out is kind of people were like well it's kind of like madman but it's like much more of like a pop boiler it's like super pretty dramatic and they're like it's just all emotionality of it like you know it's about this creation of the basics about the creation of a compact the the pc company nearly eight it's just a silly bailed kind of starts out kind of without the person the pc british were like oh it's too dramatic and like watching like you know that's it's about right like literally going back in time and she likes exactly right and it really is like that dramatic on that stressful i'm not crazy yeah and so especially the first season of that show i think it's it's the most accurate portrayal of tech startup especially like that's ever been here so that's one another one that i really like a profound just watch and i always think i'm crazy but i really really believe there's a there's a there's a great show and usa years ago called burn notice a a a very fun show is about a spy had gotten burned a cia fbi had gotten burned and had a whole at miami to clear his name and he took on all these odd jobs so frozen will set up the conceit of the show was though he had every conceivable skill you could possibly have right and so he knew how to make like explosives out of bleach like he knew how to like you know i don't know like disarm somebody with a mock handle like whatever circumstance he was in he had their voice over he would explain having hired him yet we would we would love the higher but basically i look at him and it's like that's kind of that's that's a good founder like a a good founder has to basically have every conceivable skill like you basically have to be good product development at marketing sales at financing legal anted h r m management you know on and on and on and on and there really is no substitute for ashley being good at all these things and so i like that one and then the third one is succession which i just finished is one of the darker 'em and funniest things i've ever seen in let's just say it say it's a it's a spider founders 'cause i think pretty accurately shows the dysfunction at a certain kinds of larger companies it's a show about succession battling a major media company and i can't recommend it highly enough if you've got the stomach for better words so ben the company is starting something called the cultural leadership fund whether the strengths and weaknesses of applying the venture capital model the culture and entertainment i think were trying apply culture to the venture capital model so it's a little bitty opposite look you know back to you earlier question you know we really pride ourselves on being able.
"cultural leadership fund" Discussed on Inc. Uncensored
"Right. Which is if you remember, the origin story, the founders, basically were quite frankly out of money. They were living in San Francisco, and they were trying to find a way to quite frankly, supplement their income, and it turned out there was a convention coming into town and hotels will were sold out. And so they they. Conceded idea of renting out literally, their couch, which in some respects sounds crazy that somebody would actually sleep on someone else's couch to this day in freaks me out that people give up the keys to their own apartments. I is that right? Okay. Oh, even even the full, the full Airbnb experience. Okay. Yeah. Yeah. It's, it's, it's tough for everybody. That's for sure. But, you know, it's interesting, something like that, which is, you know, in retrospect sound, so simple and so obvious. But the idea that, you know, the bigger idea was okay? We have these underused assets that we call homes or apartments turns out, it's the same way that you think about cars in the lift experience. Right. We have these massive under assets at sit there ninety percent of the time in a parking garage or somewhere else. And could we find ways to actually enable those to be utilized in a way that benefits the owner of the of the asset as well as kind of the user, so, so earn secret is kind of one big thing that we talked about, and then the other thing and I talked about in the book, a lot is this concept of storytelling, this is a little bit of dangerous word these days because obviously some connotations of storytelling are not positive, right? Which is, you know, my selling you down the river by telling you a story, right? We'll theranos is an obvious exam. Of a story that everybody wanted to believe there was a great story. It's just not true. Yeah. I think that's right. And look, there's a difference in and I'm not condoning that kind of storytelling. But the storytelling we are talking about, is, how are you going to basically, get people to follow you? Right. So why am I going to quit my job and go tell my spouse that I decided to quit very nice paying job to follow you and get paid nothing for the hope that five seven ten years down the line. This turns into something you did exactly right for from our exactly. You know, luckily, luckily, it worked out, but, you know, it was at the time, it was almost a it was partly a crazy decision, but it's can you paint a compelling vision that causes people to follow you that causes customers to take a risk on. You then allows you to go raise money at subsequent rounds of financing downstream. And it's that kind of, you know, it's that intangible of, you know, are you inherently a leader and will people affectively be willing to do things, you know, even in the absence of proof yet, that you are capable of doing those things that concept is a big part? Also of how we think about the team because it turns out, I would have thought when we started this business that a lot of these companies would fail because the. Wouldn't work and there are some right. There are some where, you know, the market just doesn't take you thought it was or the product is an interesting. We had a company early on. That was building a new mobile web, browser and great team has called rock melt was the name of the company got sold to Yahoo. Actually, many years later. They did a great job. They built a great product. It was really interesting. It just turned out that not many people felt like you know, kind of it was ten x better than the Google Chrome browser. They had on their phone. But it turns out most of the time these things fail because the team's actually don't develop in the way they need to develop. Right. So the managers don't hire at the right times, they can't kind of coalesce the team in a way to execute. It turns out that kind of the people aspects of the business do often determine success or failure. Well on that note. I mean you talk about the ability to pivot as being another thing for absolutely then you also also caution people against pivoting too early easily. Yeah. Yeah. We use this phrase, which is we'd like people who have kind of strong views, but kind of weekly held and, you know, it's a little bit of discussion. We had earlier about our. To about how we think about investment theses, which is we have ideas about stuff. But we need to be responsive to the market, and yes, pivot. Again, is, is another one of these great euphemistic words in the venture business, which means again, you kind of had an idea turned out, it didn't work. And now we gotta start all over which sometimes can be great. And that happens, you and look, you know, we're Butterfill I was, I was going to say, right where we're sitting here, right kind of on the eve of the IPO of slack. And this was kind of the pivot of all pivots. Right. So, you know, people know the origin story of, of Stewart Butterfield companies slack. It was not slack. It was a company called tiny speck, which is a gaming company. And the funny actually backstory of that was his first company, also started his gaming company, the company that became flicker, which was the photo sharing application that he sold yahu. So this was kind of his second attempt to try to actually build a gaming business that you know, he built a great game. It just turned out again, there wasn't a big enough market to make sense. And you know, kind of on a whim, he said, hey, we've got this really interesting collaboration tool that we're using internally one, and I give it a go and see if it works in. Yeah. Those when those things work out of Asli in the proportion of slack. Those are wonderful. They don't. Always work, but, but that is part of the business. And so that's also why will when you asked about the evaluation piece the products important, but it's really more of the what we call the idea Mays. Which is how did you think about the product Howard? How did you incorporate market feedback because we know one thing for certain is once you get into market, the feedbacks going to kind of drive you in a certain direction, and if you're too intransigent and you can't incorporate that feedback, and you're so stuck in your mindset, you're, you're, you're, you're stuck basically. And it's hard to recover from that on the IPO question as you point out, whereas seen some of these big companies finally going public. I read an interview did recently where you said you can argue about whether it's a good thing or bad thing that companies are staying private for longer given all the money out there. Is it a good thing or a bad thing opinion? I think it's bad thing, actually. So just for some quick history. Right. So it used to be the case that kind of companies would go public about six six and a half years from founding IPO in the venture backspace today, that number's probably ten or twelve years. So it's demonstrably changed the reason I think it's a bad idea is essentially what's happened is as a result of that we have a massive wealth shift that I think. Happening from the public markets to the private markets. And I use this example in the book and its admittedly kind of I picked it for a reason, which is, the Microsoft example rights, Microsoft goes public at three hundred and fifty million dollar market cap today. Microsoft, I think is worth more than a trillion dollars. Right. So rough math, right? Call it three thousand times of appreciation. That's happened in the public markets. If you do the mental exercise whether if Facebook could actually appreciate over, you know, call it a twenty thirty year period three thousand times it would be worth more than the entire global GDP. Now we all might love that as Facebook shareholders. But my guess is, that's probably not going to happen. And so what essentially is happening? You've got a whole segment of the population who invest in four one ks. And you know, kind of brought her retail aspects of the market, that all that appreciation now is going to quite frankly, people like ourselves to our investors and you know, selfishly that's a fine thing for the venture industry. But I think it's a bad thing for a policy perspective, because I think it goes to the kind of health of our public markets. And if growth isn't a big part of the public markets. I think over time it just. Loses its luster affect the rates of entrepreneurship or do you fear that it's going to affect the rates of entrepreneurship going forward, if people are not cashing out, as quickly or gaining the wealth from startups where they're working, it might have a long-term impact the short term impact people are, are mitigating by doing things like oftentimes, employee's. We'll have what we call a tender offer. We'll have an opportunity to sell some shares in that at least, you know, takes the pressure off a little bit. But I think this is partly why the reason by the way, why why we see companies going public now, which is as you get to ten twelve years, the types of employees. You're attracting are the kinds of employees who are also probably interviewing with Facebook, and Google apple and other public companies. And the fact that those companies have a liquid currency that they can offer in the form of compensation, you know, either stock options or we'll call our issues restricted stock units. It does make it very difficult for those private companies to hire. So I'm I don't think we're going from ten or twelve years to fifteen or twenty years or perpetually, private companies that feels like we might be kind of at a local maximum. My hope would be, though, that we could kind of move that. A little bit too left here. And maybe it's not six years, but maybe it's seven or eight or something that at least enables that kind of fly will keep happening. I wondered if I could ask just a bit about who you invest in, and the mix of people that you invest in, you know, it's no secret that venture capital has had a lot of diversity problems that women the amount. The percentage of venture capital that goes to women investors has actually fallen. It's a two percent for women of color. It's even less, and I'm curious, especially when you're looking for people who are it might be their first job, or you're looking at the potential. Why has that been the case and why why isn't an improving? There's no question in and the numbers bear it out, which is this industry has not done a great job on diversity. And it's true of women. It's also true of people of color, red generally, I think the latest stat, I think I saw to be precise like two point two percent of financing last year went to female that companies. I think the fundamental problem is, it's a it's is what we would call kind of a network connectivity problem and what I mean by that is often the way we see deals, and the way we get deals is they. Come through a network of relationships, and I'll use myself as an example, just to be clear. So I grew up in Houston. I was lucky enough to go to Stanford. Whether I liked to admit it or not, there's implicit bias in my network, which is my network is informed by obviously, those places. I came from, and so, you know, if I'm gonna go hire a job, I'm probably more likely to just try to tap that network. And again, that's gonna reflect quite frankly, pretty poor diversity based on the institutions that I've been at. So I think what we need to do as an industry is. We've got to do a better job of reaching out to those networks, and helping them connect into the industry in a way that, you know, kind of overcomes hopefully that problem. So I'll give you an example of something. We're doing is we've fund that we call the cultural leadership fund, which we raise last year. It's a fund that basically invests side by side, along with our deals, the investors limited partners of that fund, our African American leaders in business and sports and other areas and.
"cultural leadership fund" Discussed on a16z
"And so was my show. What makes sense could you recommend a wrapper for people who think they do not like rap music Will Smith Will Smith, I prince of Bel-Air and does Mark like we'll Smith. Spotify tonight. Markelle if we think about television as presenting conceptual material to us and every now and then you'll watch TV shows. What's the TV show? You've been watching lately that has a lesson about venture capital. And what's that lesson? Name three. Yes. I watch a lotta TV halt and catch fire which actually recently ended after four seasons halt and catch fire when it came out it came out right after madman. And it came out as kind of like, well, it's kinda like madman. But it's like much more of like a potboiler it's like Super League dramatic, and they're like, it's just all the emotionality of it. Like, you know, it's about this creation of visits. The creation of a compact the the company in the early eighties. Thinly-veiled kind of starts out with that the birth of the PC. It's all the critics were like, oh, this is like dramatic, and like an then I watch it. And we're like, no that's about right? Exactly. It was like literally going back in time. It was like exactly right. And it really is like that dramatic and that stressful and that crazy and so especially the first season of that show. I think it's the most accurate portrayal of on a text on. It was actually like that's ever been aired. So that's one another one that I really like for founders to watch. And they always think I'm crazy. But I really really believe this a a great show on USA years ago called burn notice. A very fun show is about a spy had gotten burnt sea ice by gotten burned and had a whole of Miami to try to clear his name, and he took on all these odd jobs. So favorable set up the conceit of the show was though he had every conceivable skill you could possibly have. Right. And so he knew how to make like explosives out of bleach. Like, he knew how to like, you know, I don't know like disarm somebody with them off handle like whatever circumstance he was in. He had the and then there was a voiceover Hewitt explained. You haven't hired him yet. We would we would love to hiring. But basically I look at him. And it's like that's kind of. That's a good founder like a good founder has to basically have every conceivable skill like, you basically have to be good at product development and marketing, and it sales and financing antedates our management and on and on and on and on. And there really is no substitute for actually being good at all these things. And so I like that one. And then the third one is succession, which I just finished. Is one of the darker and funniest things I've ever seen in. Let's just say it's a it's it's inspiring for founders 'cause I think pretty accurately shows that its function. Let's say certain kinds of larger companies it's a show about succession battle at a major media company. And I can't recommend it highly enough. If you've got the stomach for bad words, so Ben the company is starting something called cultural leadership fund. What are the strengths and weaknesses of applying the venture capital model to culture and entertainment. I think we're trying to apply culture to the venture capital model. So it's a little bit the opposite. Look back to your earlier question..
"cultural leadership fund" Discussed on Product Hunt Radio
"Those trends and really understand those shifts deeply have personal pain point or a personal passion and can leverage some kind of opportunity in arbitrage in their business and create the future. I think it was yesterday the day before in recent horse announced the project that Chris line has been working on do, you know, Chris line so few? No, so Susan I've known him for a while. And he's leaving. The charge on the cultural leadership fund is that what it's called. Yeah. And it's focused a lot on black founders. And also those that are building products for that type of demographic. This is the fun with Smith. Yeah. He's one of the Ps of no mistaken along with Susan. You're a better memory. I do. Yeah. Yeah. The announced his fund recently just this week. And the piece of this fund are Will Smith shonda rhimes, rich Dennis. So they've collected influential African American leaders and the capital that has been put together for this fund. What's really incredible about it? It's investing alongside Andriessen main fund. But what they've done is that the fees that entries would normally take from the fund to run it as well as the carry that they would take and they're vested interest. The are actually going to put that money to work one hundred percent towards increasing diversity and technology. Like, a nonprofit venture fund is not a nonprofit venture fund because they're investing in the business. That and choose to to chooses to invest in. But no one's taking a carrier. Just the Al aren't his Andriessen so Andriessen portion. Oh, wow. And specifically Chris is leading the fund. Okay. So he's part of Andriessen. Yeah. And he actually spearheaded the effort to go out and raise the funds. So there I investment believe out of this fund is an entrepreneur that are fun costs culture back to Chris Bennett from wonder school. We've been on that journey for three years, and what they do is a in home network of preschools and day cares. Call. I've heard of that sounds really interesting. It's what I love about it. I wish I was investing at the time because I I like the model because I'm a big fan of tools are companies that.