35 Burst results for "Venture Capitalists"
"venture capitalists" Discussed on Masters Decoded
"Let's talk a little bit about your personal life which is family How has family in. Evan or supported you on the journey. Yeah so both. My parents were in the tech field. So when i was in first grader. So either here and the dining table talks about new companies new startups new technologies that are arising in silicon valley. And i would get very interested in them Early on so. I think that self has contributed a lot. Where entire journey. Yeah my family. My parents have been very supportive of everything. They've been Very they've been very open minded and just Poppy with what i do and they've really helped. Guide me in that sense and really kept me on track. And i'm really grateful for that. Actually yeah longer that my friends have also been very supportive. My best friends and everyone And they've been very kind and motivating as well and they were. They're both of these people. My family and friends were there at the time when i was just stay simple. Fifth grader with You know no basic but no I guess would no fund with no kouassi women no entrepreneurship club. So since then. When i had the they were still with me. And they really believed in me and i think it was their love and support as well that has really You know Helped me become why. I'm today as you embark on this journey of making your program on making your dream come true which is real fun Do you foresee your parents contributing to that mexican reading. Not monetarily but Guidance or being part of any Yes and no so definitely. I take everybody's advice and opinions into account when evaluating startups. Because believe my opinion the best or somebody else's opinion is the best. I take a variety of opinions Into account before investing in a startup. So definitely in that sense. I'll definitely ask them and not just lost my lp's my mentors and Everybody else says well before investing to get a third opinion Another perspective different views You know i think in that sense. They've It's been really like that. It's been really good. And you know. Ever since i was a kid. My parents in taking me to conferences like ticon annually. So they've really been I guess a You know a guiding star in that sense Ever since so i. I hope to continue to going to conferences. Virtually as well this year. So they've always been guiding me but if you have to make by mark in the investment world as you've spoken a lot about mentors and lot of people who've been mentoring you What has used as a sickly. Look at when you were looking at mentors Yeah no that's an interesting question. I think The main thing i would look at is aligned passion yeah are they. Do they really believe in what i'm doing and their vision as well Is it i guess. Is it similar defense bed. Do they really believe in Do they simply do they believe in everything that I it has well right whether it's You're investing in female founded startups or you know opinions on The tech gender gap etc. And do they take kids seriously. I think i've had a lot of us mentors early on and something. I've really looked into whether or not they take children seriously in the sense that they don't oh it's just another kid. Let's let it go. And i think the ones that really have have really been You know great supporters throughout the jury. What women are goes like you. Who would love to start their own dc fund What would your advice be to them. One thing i would say is gopher it if it's something you really believe in You really think you can contribute to leave. You know you should definitely breathe in your south of the first thing i would say is go to several conferences as a young person You have a lot to value. You have a lot of opinions. Your opinion really does matter. It's unique. It's something that i think. Teenagers opinion Is something that nobody else can have so You know when you really do talk about when you really attend conferences really do talk to people and You know create a story of yourself and really voice why you want to do this. Whatever it is during whether it's venture capital entrepreneurship or whatever field. You should really have a. Why a reason as to what pushes you everyday to do this. My mind is to help. More female founded startups and female founders and ben the gender gap What is your reason into joint venture capital you know. Just make sure to voice that and talk about it without being said you'll hear a lot of knows over the years but Make sure to really stay true to yourself on that note starring. This has been a wonderful conversation to have you on the show today. And thank you for talking your heart out. i could really feel that Is there any parting thoughts which you would like to share the mind this most definitely. I think the main takeaways would be to believe in yourself. you know realize the importance that venture capital have any teenagers or anybody at any age is really thinking about Venture capitalist career. Really do think about it. You know age doesn't really matter in venture capital and entrepreneurship and veggies capitals a tremendous social and economic impact. I suggest teenagers especially girls to consider it as a career option. Then i think the most important things is is very important to speak up and voice. Your story i think goes if there's something that people would remember this talk. It would probably be dr these times you taking time out I'm not gonna take much of your time because you're busy pettis. I notice thing big but it is also a time or recouping and understanding and climbing starting to fun philosophy for taking time and really appreciate your talk and setting up processes week you so much for the opportunity and again thank you so much for having and it's great that you're doing. This is a great passion project hoping it will inspire a lot of people. Really great honestly amazing mandible. Keep all those kinds of any. You have a good day. Thank you so much. Have a good day. Thank you for listening in and close yet. Another episode of decoding. If you've enjoyed the episode please you can help out by sharing it on social media. I would personally appreciate that. It's how we can reach more listeners. And the listeners. We have the more awesome guest. I can get in touch and convinced to participate in these conversations that our joy to have for me and i hope they are joy for you to listen. You can also help a lot leaving reviews on itunes or your car service of choice. Reviews are surprisingly helpful and supporting the podcast to get to more listeners. If this episode has improved you. I would request you to subscribe to the podcast. Stay up to date and get notified to the future episodes. The daf i bet you see in the next episode..
Land of the Giants: The Google Empire
"In nineteen nine hundred. Nine marissa mayer was sitting in the most important interview of her life. It was at a startup called google. That needing was at their conference table in the main conference room at one six five university which also happened to be a ping pong table. Meyer would go on to become one of the most prominent executives and silicon valley from two thousand twelve to two thousand seventeen. she was. ceo of yahoo. The back in the late nineties. She was still a student at stanford about to graduate with a master's in computer science and google's cofounders. Sergei brin was not going easy on her sergei did all the talking and quiz mutants. We allow different computer. Science topics had me draw out. Like the graphing of k means clustering and and centuries and how to find the differences in the centers. And things like that. Meyer was a star student so she answered those questions problem. But there was another interviewer in the room and she noticed something was a little off with him. Larry seemed quiet and truthfully obviously somewhat distracted. Larry page the other founder of google. The pair wrapped the interview utterly. They had something else on their minds and the the door opens like you kind of hear. What's going on her side. Then i heard the call and say okay like who's going with us for the kleiner. Pitch kleiner is kleiner perkins the legendary venture capital firm. And i heard a lot of foot traffic heading out the door and then heather horns. The office manager reappeared and said i'm sorry. Larry and sergei had an important venture capitalist pitch this afternoon and they have taken the the majority of the company with thumb. So i think you're going to have to come back tomorrow.
Asian American Business and Tech Leaders Raise Awareness
"And tech leaders are raising money and awareness for groups fighting violence against their communities. Hey, cuties, Nina Thorsen reports San Francisco Venture capitalists, Dave Lew said he wrote a letter to channel his anger and frustration after the Atlanta shootings, the targeted Asian Americans. He shared it with friends and now more than 1700. People have signed the letter, which appeared in the Wall Street Journal Wednesday morning. The effort. It's putting forth called Stand with Asian Americans intends to raise $10 million to help document hate crimes, provide legal help for victims and research, the causes and solutions of anti Asian racism. The group includes founders and executives from Zoom YouTube Door Dash, Pinterest Stitch, Fix and Pellet on. I'm Nina
Clubhouse Becomes the Latest Hot App By Doing Everything Wrong
"From one three. I'm david brown. And this is business. Worst daily on this tuesday march second. Let's say you were invited to a party. Where the guest list included oprah drake and jared lehto as well as top venture capitalist business executives journalists and all manner of influencers. Would you go well. That party is happening on a beta version. Social media app called clubhouse and in about nine months. The app has gained an estimated three million users and a billion dollar valuation clubhouses content is like a series of audio only presentations and panel discussions he s. That's right audio. We'll get to that in a minute. These talks happen in so-called rooms which are really like well conference calls there's a presenter or panel other people are listening to anyone can raise a hand and ask a question or participate in the discussion. You can meet people and have conversations and because presentations are not supposed to be recorded by users. You're either there or you missed out the thing about clubhouse though is that it appears to do everything wrong. First of all as i said earlier. It's audio based that's right. Viral video challenges or memes. Not even a cute cat photo. That means that all of those people who hate to use the phone have to logon and have an actual conversation also android users. Sorry you're out of luck. This app is for apple devices. Only at least for now finally membership is by invitation. So unless you know someone who's willing to fork over one of their coveted invites you're locked out again for now. Clubhouse founders say that eventually the format will be open to all but what is that for now. Exclusivity is what's driving growth in roughly nine months. Fomo fear of missing out has fueled the apps popularity some even say that the old school style of having conversations is the key to its success. You have to listen and be able to say something meaningful. So people are striking business deals finding content partnerships and having conversations with some truly interesting people. Some are even finding romance on the app. According to a report in forbes clubhouses his popularity is even turned the head of industry giant facebook. Which has reportedly started developing an audio product to compete with clubhouse the new york times reports facebook founder mark zuckerberg made an appearance on the app earlier this month to give a talk about augmented and virtual reality. Facebook didn't confirm the report but the times also noted that the social network has a habit of buying upper competing with apps that dabble in areas. That could pose a threat to its user base like most media platforms clubhouse. Has its issues to the app. Urges you to give it access your contact list and uses that information to identify others for you to invite according to forbes quote even if you've no interest in joining clubhouse whatsoever the service may well know your name mobile number and how many friends you have on the network. It may even be violating european privacy laws. The report suggests clubhouses apple exclusivity also has some trying to hack the app so it can be streamed on android devices tech crunch report last week. Clubhouse had its first significant data-breach when someone managed to stream audio feeds on a third party website according to bloomberg the stanford internet observatory or s. I o a stanford university internet watchdog programme race security concerns earlier this month in light of these issues clubhouse says it has taken measures to prevent any such breaches from happening again. But it's not clear. Exactly what is being done.
From wild idea to COVID vaccine meet the mRNA pioneer who could win a Nobel
"Renew and november. When the first cases started the pop up and wuhan china their description of the virus there description of how easily it was transmitted between families once. We heard that we knew that. This virus had the potential to be a bad actor at that moment in time we said. How are we going to get the sequence for this virus and we started calling our friends and china. We called our friends at the cdc trying to get the sequence of this virus the minute that was published. We started to make our vaccines back on. I think it was january twelfth. We started making the first aren a vaccine that day. It has all happened. Unfathomably fast has an at twelve months later and the pfizer and maduna vaccines have made their way through large clinical trials with good results into syringes and now already into millions of arms. But this quite a back story here. We thought that it would be useful in a pandemic. We thought it would be influenza pandemic but you back in two thousand and five. When we made the initial observation we knew that aren a had a great potential therapeutics. Who with his collaborator catala career. How is a good bit to win a nobel prize for the science driving. Mri vaccines. he's one of my guests on science fiction today. What's been lost in the fast pace race to develop covid nineteen vaccine. This past year is a hidden story of dogged. Pursuit of a nollie scientific idea over decades often in the face of skeptics and nice ideas we went through pharmaceuticals venture capitalists. All other people. it said. Hey we have a great new invention here. And they weren't interested. They said now aren as too hard to work with. We don't think it'll ever work and they just weren't interested now with a pandemic bang with suddenly counting on mri vaccines lock eyes and medina's to help save us. But before this pandemic this brand new technology of marigny vaccines had never been approved for use in humans before. It's incredible isn't it. The heddon even made it to the stage of large scale clinical trials in humans. I don't think anybody could have predicted. Just how effective these vaccines were. And i still get chills. When i remember the moment when that announcement was made a few months ago biologist onto fox is future fellow and associate professor at the university of western australia. It has proved the nice as wrong. I mean given that fifty percent effective is the baa that the world health organization would've liked to say as the minimum to be getting ninety. Five percent is just astounding really hardly any vaccines have that level of efficacy. Cullen pat and professor of pharmaceutical biology at monash pharmaceutical sciences. He's team is working on two different. Mri vaccines for covid. Nineteen in collaboration with the doughy institute in melbourne change from the point of view the future of emo toy syrupy and we haven't had a vaccine working against corona virus. Before i could understand the science. And i could see how theoretically it might work. But i just couldn't see how we could actually make enough to be the billions of doses needed for the world. And that's still looking doc- rod it's entirely contingent on just to pharmaceutical companies meeting. The world's entire supply demands including ours here in australia. Will you receive the pfizer vaccine together just before christmas. We did the vaccine driven by your discovery. Can you describe what that moment was like figuring. My family always yells at me. Because i'm not excited enough. And they're right for man who co owns the intellectual property licenses to medina and i dream osman humble kind of guy. We were incredibly excited. When we saw the results of the phase three trial that are vaccine. Worked and of a safe and had ninety. Five percent efficacy. I'm already moved on to the next thing the next back scene. The next gene therapy you. I'm incredibly excited. That this vaccine is working that it's gonna make a dent in this pandemic many think that there's a nobel prize in chemistry waiting in the wings for you and dr katie. Rico what do you make of that. So people tell the too modest. And i really don't do things for prizes or recognition or anything else.
You Are What You Subscribe To
"All right. So i wanted to share with you something that my wife. Carrie ann i did the first At the beginning of the new year. And that's We sat down and we reviewed everything that both of us were subscribed to and we sorta did a purge and a respectful and together. We said you know what kind of content do we love. What do we want to learn This year what should we stop consuming. What should we start consuming and we did this very thoughtful very proactively over the course of about an hour and the high here for me is. I think it's important to be very very careful. Whose ideas that you let into your brain you know. We only have so much brain shelf space and we only have so much. Time to consume books podcasts Whatever the case you tubes whatever we like to consume and so being very thoughtful about what we put into our brain is actually a very important thing and i think there we put some shit in our head. That can hurt us pretty badly. You know if you're a longtime listener you know Have no love for the hustle stars. And i think they've done more damage to entrepreneurs and marketers than any recent group in history For a simple example you. I've heard hustle porn star. Say hustles the most important word the english language. Well i've also heard hustle porn star. Say no one ever worked himself to death well in japan they have a word for it. It's called karoshi and it translates into death by overwork. So nonstop hustling for twenty. Five years is probably not what you want to do. In addition even worse maybe is. You can hustle all you want but there's a difference between hard work and smart work hamsters hustle in their wheels to and they don't get anywhere. So what's your hustling about matters. And if you're a regular listener you know that i believe that Legends become known for a niche. That they own. So if you're hustling to design your own category that's one thing. If you're hustling trying to compete with an entrenched category king. You're gonna be in for a world of pain and yet millions and millions of business people still consume the stupidities of these hustle porn stars every day and the marketing and entrepreneur. World is stuffed with stupid ideas. Here's another example that drives me nuts minimum viable product. Why is this a good idea. Who the fuck said we. The first thing we deliver to the world should be something called a minimum viable product. It should be called a product. You fucking think is legendary and awesome and you wanna share with the whole world nother just dumb dumb dumb. I could go on with a very long list of very dumb ideas that are marketed to marketers and entrepreneurs all the time the bottom line is be very thoughtful about what you put in your brain because what you put in your brain is what you get out of your life now. Personally i like to go back to some of. Oj's peter drucker can touch him he. He's the original management thinker. His book the effect of executive changed my life by way of example. David ogilvy david. Ogilvy david ogilvy. If you're an entrepreneur if you're a marketer you're not a student of david ogilvy get on it. I go back and look at it all the time. Another one you might love in a similar vein is george lois. He sort of the punk rock version of david. Ogilvy check him out also. Of course the geez of positioning. Our reese and jack trout the so i love to go back and look at a lot of the original masters now some of the newer things that i love checking out is Check out a master class. This is incredible way to learn how to do to be taught writing by malcolm gladwin by way of example or taught how to do a three point shot by None other than steph curry. They have legendary people in many many different domains teaching their skills. It's an incredible product. Love masterclass podcast. You might wanna check out and this is not an extensive example or an extensive list. It's just an example of a few. That i like One of the jeez of marketing podcasts. Marketing over coffee by my buddy john wall and his partner. Christopher penn legendary Venture capitalists mike. Maples junior. his podcast is called. Starting greatness insanely great. Another legendary entrepreneur. Podcast is called no bowl and it's created by my buddies paul martinez and randy comas. And it features that teaching of the legendary bill campbell. Who was none other than steve. Jobs is coach if you're in the b. two b. world couple of podcasts. I love dave gerhardt's b. to b. marketing leaders. Podcast check it out. G. is emerging og. He's awesome My buddy brian burns has the One of the top sales podcast for b. two b. people be to be revenue leadership and the brutal truth about sales and selling brian burns. Check him out. And then the other one i like on sort of the lead gen funnel management Get leads enclosed shit online in the more beat. A sea world is russell brunson and he's got a whole series of podcasts and books most of them have the word secrets in them. Checkout marketing secrets podcasts. And he's all about hooks and offers and driving traffic and all of that stuff so those are just a couple to think about but most importantly i'm encouraging you to sit down and ask yourself a couple of key questions. What the kind of content i love. What do i most want to learn in the next twelve months. What should i stop consuming. What should i start consuming and remember. Be very careful whose ideas you let into your head because your thoughts become your actions your actions become your outcomes and your outcomes become your
"venture capitalists" Discussed on Recode Decode
"Robin hood is a bunch of young people are like. I'm putting all my money in. Bitcoin and that is a different class investment. And there's good reasons for doing it and there's gonna reasons for not doing it but it does feel like bitcoin. Lane in crypto in general has this promise of endless return and so there's there some risk and i think people understand the risk. It's obviously a very volatile but overall they feel like it's not risky spent one hundred dollars in bitcoin in two thousand fifteen you'd be right like and so how do you when you've got a class of new investors who are interested in things like e c who see the big exits that you're talking about half of companies are trying to change. The world only really experienced on market particular. Recently that goes up in. Look at somebody bitcoin where it's like instant million right like it. It feels like a ticket. How do you think about investors particularly young investors managing risk in like toward failure audience. Companies are going to fail they are. Yeah and there's there's the possibility that back stage doesn't do well at all and everything that i have Guest and envisioned doesn't come true and that's why say look all venture investing we said on the campaign said every time i talk about. It is so risky. It can go to zero. Every company with folio again would could go to zero. but we have diversified our portfolios. So much that we have mitigated against that risk and my opinion and like i said it's my job every day to get up every morning and see how do i make money for our stakeholders including myself. And so we're highly incentivized to whereas we've invested in one hundred and sixty companies. We've also seen about eight thousand or so of those companies so investing about two percent of what we see so we're very very structured and disciplined when it comes to the investments that we make so i'd say to everybody not just the younger generation that's getting into say everybody look at this with a grain of salt. Take it with a grain of salt only put in a mount that you are comfortable losing outright and this is something you think about that illiquid and that you hold for a while and you just watch it. You know ebb and flow. And for me when i look back at when i'm forty now look back at fifty. What i want to look back on is an empire of of companies that have exited in a portfolio that is very impressive in and a lot of thousands of stakeholders now and i'm able to say thousands now because that's what we've open this up to but you wouldn't you wouldn't bet the farm on it you wouldn't bet everything on any one thing including bitcoin or otherwise d- then this is not just to be clear. This is not like bitcoin. Bitcoin has it also has constraints because it only has what the twenty one million behind wayne. it also is. It's probably going to be it. Has its moments where it's very scary. Can people really close to the to the edge. You know on sunday with it and ours is more like you put in. You know if you can afford it you put in two hundred dollars. And now you're part of history. Now you're part of these hundred sixty which will become two hundred which will become three hundred more investments. That are changing the world themselves when you're a public market investor. Obviously there's an sec. Regulations there's standardized reporting from companies right. You buy shared apple. You get to go to the apple shareholder call you. Get a bunch of eight ks. thank you like. There's just a bunch of paperwork that is regulated by the government that says here's how this company year invested is doing and they are required to be transparent with you. Somebody invests with you. One hundred dollars to your portfolio companies have a transparency requirement is so the portfolio companies do not so this is an investment in an umbrella. Llc that our carey and we provide dividends so we do though. So we are this oreg cf and that is highly regulated. And a lot of the. There's been some changes to to that recently with the sec. So it's the amount that we can raise higher things like. That would going through republican. Not just using them as a platform and we kind of you know said signed up on a page and said hey. Can we do here. We have partnered with them. Behind the scenes they're ceo in i and then our teams of work together and republic and kendrick from republic are listed at least twenty times and the latest. Sec updates to red sea and more. They have been to dc multiple times and helped actually with the regulations helped form what the regulations are and so they are so highly scrutinized by the sec in by by any financial governance and we we choose will be and so we'll be transparent in order to even have the the campaign up to do all sorts of auditing and everything that has made visible and then would you reporting now because it's there's also the flip side that there is when you sign in because you're putting in a hundred or you're putting thousand are if more fewer also signing paperwork that says that it's at our discretion what we share. Because it's a rag cf it's a raid crowdfunding campaign so we are just choosing to be as transparent as possible and also we're governed and are on the up and up in that way so it's like i said something that i have my mom and my my younger brother looking at and i will be more into it because i like is just the way i feel about it but at the same time i will say every single time i get a chance. It's risky. I want people to really read the paperwork. Know what you're investing. I say this to our private investors who are rich. It's not just that. Because you're not richie don't know this to everybody. Please read for yourself. Even if you have counsel read it yourself so that you know the conversation to have with your council and it ended the day if it's a lot of infusing fusing jargon and it doesn't make a lot of sense look at it like okay. What what. I what i spend on a night out. Or what would i spend on a pair of shoes. And i'll put that in and just kind of watch it. I want take a quick break. And then i to come back and talk about the actual business of being in dc. So second break. We'll come.
GameStop stock plummets as Wall Street reels
"Wall Street is recovering from yesterday's big selloff, and traders continue to watch the dizzy moves of stocks. Like Gamestop in AMC. They become targets of online retail investors that sent their share skyrocketing, pushing back against big hedge funds that bet they would fall. Venture capitalist and Reddit co founder Alexis Oh, hey, Deion told CNBC Squawk Box, the pushback shows. Finances another sector disrupted by the Internet. Seen this across media. It seems across so many different sectors, and now it is happening to finance Gamestop share values whipsawed rising and falling after more than doubling in price. On Wednesday, online trading platforms such as Robin Hood and interactive brokers moved to restrict trading, citing the extraordinary volatility. I'm Jennifer King News and analysis at town Hall. But calm. I'm Keith Peters in Washington.
Major indexes regain lost ground; GameStop, AMC swing wildly
"Chaotic action on Wall Street is drawing applause for the democratization of trading but also concerns about a bubble and the need for regulatory action one street is recovering from yesterday's big sell off and traders continue to watch the dizzying moves of stocks like gamestop in AMC they become targets of online retail investors that sent their shares skyrocketing pushing back against big hedge funds that bet they would fall venture capitalist and reddit co founder Alexis Ohanian told CNBC's squawk box the push back shows how finance is another sector disrupted by the internet students across media issues across so many different sectors and now it is happening to finance gamestop share values whipsawed rising and falling after more than doubling in price on Wednesday online trading platforms such as Robin Hood interactive brokers moved to restrict trading citing the extraordinary volatility I'm Jennifer king
Biden to nominate Rhode Island Governor Gina Raimondo to be commerce secretary
"His selection of Marty Walshes. Labor Secretary. Walsh has been Boston's mayor since 2014. He served as president of laborers local to 23. Before he was Mayor. Walsh headed up the Boston Building Trades Union organization. Biden will also reportedly pick Rhode Island governor Gina Raimondo to lead the Commerce Department. She's a former venture capitalist and previously served the state treasurer there. Raimondo will help set trade policy and promote opportunities for growth. Biden administration stance on international trade will likely market dramatic shift from President Trump's tariff heavy approach. Other news tonight,
Uber, Lyft and the sharing economy
"What used to be referred to as the sharing economy. Let's quickly remind ourselves what sharing actually means if i give you a ride in my car and don't expect anything in return that's sharing if however aguirre rod in my car and you have to pay for the privilege. Well that's cold commerce and that's why when we talk about uber and deliver ruined task. Grab it and even airbnb. These days we now refer to them as gig economy companies. Juliet shore has been researching. Why the sharing ideal ended up as a form of anti regulation capitalism. Her new book is called after the gig. How the sharing economy got hijacked and how to win it back. So the sharing economy launched in the midst of the so-called great recession of two thousand eight nine and it emerged with a series of could've wonderful promises about all the good things it was going to bring an call that the idealist discourse so it promised it was going to give people a whole new way to work without a boss if people independence and flexibility autonomy that it was going to provide income for struggling middle class people and that it was inclusive because it was so easy to join these platforms and it would reduce discrimination and help low income people. It also promised that it was going to create social ties connections. These were what we call appeared appear person to person exchanges. Somebody in their car. Someone who needs a ride someone with a room. Someone who needs a place to stay and that those exchanges would yield truly personal intimate relationships and then finally it claimed that it was going to reduce carbon footprints. Because airbnb would make it. So we didn't have to build hotels and ridesharing would make it so people didn't have to own their own cars anymore so it was a pretty hefty set of claims and sort of idealistic hopes which we heard from ordinary users. And of course from the platforms themselves as well as the many consultants who were touting the benefits of this new way to run an economy. What does it suggest that flexibility is really the only regional virtue of the sharing economy that still touted by the big gig companies today when whenever they come under attack for their methods and actions. Well flexibility is still at least in principle a key part of gig work in the sense that people can choose to go on the app and go off at any time. They can work as many as few hours as they want in practice. What we do find though. Is that for people who are trying to make a full time. Living on these apps they lose almost all the flexibility they lose a great deal of it. Because there's not enough work too many people chasing too little work so they have to pretty much stay on the apps. Whenever there's any work to be had we know that very quickly. The sharing economy co opted by silicon valley venture capitalists. But we're those original ideals. Plausible could have worked. I think some of them weren't some of them weren't so the environmental idea really warrant for much of the sharing economy. That's because the two biggest sectors which are lodging and transportation are both really carbon intensive activities travel and you know both long distance travel and local travel and these sharing platforms made these services available much more cheaply which meant that more people were gonna use them. So more people getting into private cars as a result of ride hailing because there was so much less costly than taxis. Many more people travelling as a result of the fact that airbnb offered cheaper accommodation so environmental claims weren't laws above the social. Claims are a little bit more mixed. We do find people on airbnb if they're staying with someone who's present in the home rather than renting out a whole place. They are making social ties there. Few sharing platforms like blah blah car in europe which is long distance ridesharing where connecting with someone is really relevant but as far as the claims for the labor side of things economic claims. I think they were feasible. Wall if you had a decent business model and you didn't let too many people on the platform but second the companies started out with pretty decent compensation for the workers in the early days people were pretty happy with many of these platforms but over time because the companies weren't making money kept cutting what they were giving to the workers and this was most prevalent in ride help and the bakeries and they weren't making money was they priced the service too low so uber and lift subsidizing the rise by about forty percent. It's the only way they could get such a big market so if they were less greedy. I think the answer to your question is yes. There is a way to do this. That actually takes advantage of the technology is still a reasonable deal for consumers. But isn't you know giving them crazy. Low prices and also is sort of feasible from platform point of view. Your book is called after the gig and the subtitle is how the sharing economy got hijacked. Which is what we've been talking about and how to win it back looking at the how to win it back do see the. The basic model appears structure augmented by digital technology. Do you see that as having potential to expand or to create genuine sharing economy models. I do think that there's tremendous potential here. So there other more out of the box kind of innovative ways that we can think about using this technology and changing the social relations of production basically in ways that would really benefit users and workers in particular so i studied what are called platform cooperatives and these are platforms. They use many of the same technology so they use the matching algorithms. They use the ratings and reputational data. They use the payment systems but instead of being owned by wealthy investors owned by the people who are actually doing the work so i studied an artist's platform of photographers platform that sell stock photography over the web and there are about a thousand artists who are members of this cooperative. They're much much happier when they they used to work for that quote unquote of stock photography. Which is a company named getty images and two longtime industry insiders started. This new company called stocks a united and photographers flocked to it. They're much much happier. They get a much bigger fraction of the sales and they can govern themselves so they have control over what the company does so. I think it's a fantastic model. The reason i have a lot of optimism for it is that the technology obviates a lot of what management does it takes care of the quality control. It does the matching. it does the finance. You know you really don't need much management and you can see that by the fact that many of these companies have very few employees and that means that it's just that much easier for workers actually to own those companies because there's really not so much that management is providing. Can you bring those types of platform co to scale or in trying to grow. Do they risk going down. The path of what we know has happened to some of the big companies. It's an interesting question. Because i think the question of scale is somewhat misunderstood in the gig space many of the areas where you've had rapid growth our in services that are person to person services and are primarily local ride hale and delivery errands and tasks and so forth so these are personal services and people who provide them are locals and they're providing them to local so for those you actually don't want them to get two big. There's no reason that they should all you really need is what we can think of as interoperability in the apps. So let's say. I use a ride hailing app in my city and that's most of the time that's what i'm using it for but occasionally go somewhere else. I wanna be able to open that app and get a ride held. They're all that means. is that those. Local co ops. Have to all be part of a network that platforms where scaling to a large. You know market makes more sense are the online platforms and the accommodations platform. So those make more sense to scale up. We have seen some other kinds of structures at least in nonprofits and so forth not necessarily always a co op structure. But you know something similar where we have some of these platforms that are actually operating more globally and the one i studied stocks is global platform. So yeah they can scale. I think the question is how big do you want them to scale. And i think that really varies by the service. Were talking about
After the Gig: How the Sharing Economy Got Hijacked and How to Win It Back
"Juliet shore has been researching. Why the sharing ideal ended up as a form of anti regulation capitalism. Her new book is called after the gig. How the sharing economy got hijacked and how to win it back. So the sharing economy launched in the midst of the so-called great recession of two thousand eight nine and it emerged with a series of could've wonderful promises about all the good things it was going to bring an call that the idealist discourse so it promised it was going to give people a whole new way to work without a boss if people independence and flexibility autonomy that it was going to provide income for struggling middle class people and that it was inclusive because it was so easy to join these platforms and it would reduce discrimination and help low income people. It also promised that it was going to create social ties connections. These were what we call appeared appear person to person exchanges. Somebody in their car. Someone who needs a ride someone with a room. Someone who needs a place to stay and that those exchanges would yield truly personal intimate relationships and then finally it claimed that it was going to reduce carbon footprints. Because airbnb would make it. So we didn't have to build hotels and ridesharing would make it so people didn't have to own their own cars anymore so it was a pretty hefty set of claims and sort of idealistic hopes which we heard from ordinary users. And of course from the platforms themselves as well as the many consultants who were touting the benefits of this new way to run an economy. What does it suggest that flexibility is really the only regional virtue of the sharing economy that still touted by the big gig companies today when whenever they come under attack for their methods and actions. Well flexibility is still at least in principle a key part of gig work in the sense that people can choose to go on the app and go off at any time. They can work as many as few hours as they want in practice. What we do find though. Is that for people who are trying to make a full time. Living on these apps they lose almost all the flexibility they lose a great deal of it. Because there's not enough work too many people chasing too little work so they have to pretty much stay on the apps. Whenever there's any work to be had we know that very quickly. The sharing economy co opted by silicon valley venture capitalists. But we're those original ideals. Plausible could have worked. I think some of them weren't some of them weren't so the environmental idea really warrant for much of the sharing economy. That's because the two biggest sectors which are lodging and transportation are both really carbon intensive activities travel and you know both long distance travel and local travel and these sharing platforms made these services available much more cheaply which meant that more people were gonna use them. So more people getting into private cars as a result of ride hailing because there was so much less costly than taxis. Many more people travelling as a result of the fact that airbnb offered cheaper accommodation so environmental claims weren't laws above the social. Claims are a little bit more mixed. We do find people on airbnb if they're staying with someone who's present in the home rather than renting out a whole place. They are making social ties there. Few sharing platforms like blah blah car in europe which is long distance ridesharing where connecting with someone is really relevant but as far as the claims for the labor side of things economic claims. I think they were feasible. Wall if you had a decent business model and you didn't let too many people on the platform but second the companies started out with pretty decent compensation for the workers in the early days people were pretty happy with many of these platforms but over time because the companies weren't making money kept cutting what they were giving to the workers and this was most prevalent in ride help and the bakeries and they weren't making money was they priced the service too low so uber and lift subsidizing the rise by about forty percent. It's the only way they could get such a big market so if they were less greedy. I think the answer to your question is yes. There is a way to do this. That actually takes advantage of the technology is still a reasonable deal for consumers. But isn't you know giving them crazy. Low prices and also is sort of feasible from platform point of view. Your book is called after the gig and the subtitle is how the sharing economy got hijacked. Which is what we've been talking about and how to win it back looking at the how to win it back do see the. The basic model appears structure augmented by digital technology. Do you see that as having potential to expand or to create genuine sharing economy models. I do think that there's tremendous potential here. So there other more out of the box kind of innovative ways that we can think about using this technology and changing the social relations of production basically in ways that would really benefit users and workers in particular so i studied what are called platform cooperatives and these are platforms. They use many of the same technology so they use the matching algorithms. They use the ratings and reputational data. They use the payment systems but instead of being owned by wealthy investors owned by the people who are actually doing the work so i studied an artist's platform of photographers platform that sell stock photography over the web and there are about a thousand artists who are members of this cooperative. They're much much happier when they they used to work for that quote unquote of stock photography. Which is a company named getty images and two longtime industry insiders started. This new company called stocks a united and photographers flocked to it. They're much much happier. They get a much bigger fraction of the sales and they can govern themselves so they have control over what the company does so. I think it's a fantastic model. The reason i have a lot of optimism for it is that the technology obviates a lot of what management does it takes care of the quality control. It does the matching. it does the finance. You know you really don't need much management and you can see that by the fact that many of these companies have very few employees and that means that it's just that much easier for workers actually to own those companies because there's really not so much that management is providing.
Becoming the Director of Your Life - with Fritz Brumder & Jerry Colonna
"A. Fritz. Each. You could mean, she was jerry thanks for coming on the show before we get started. Wanted you just take a minute him introduce yourself. Sure my name is I her I am the CO founder and CEO of a company called brand lives. We are based in Portland Oregon and I've recently exited the business in now I've moved my family to bend, Oregon and things are going really well right now. But. Wasn't necessarily always that way. So we'll get into kind of Janta Printer Journey of brainless. Was the. CEO. Wasn't the. Would it be helpful to talk a little bit about the was the CEO Journey? Yeah I think what's most helpful for me I. A now out of the company that I started it was. Over a seven year process, but we are really in a hard for seven years. had one co founder in the company, but he was just really on board more. Of the initial co-founder Story a little bit more but. I am in a period where I'm still kind of decompressing from that process. It ended well on a minute. Really good spot right now. Have some breathing room and have time to think and be creative and and working onto passion projects and hopefully launched my next company. But as a result of some of the like. The turmoil I experienced as a result of starting in next thing, my company. There's a little bit of fear in that process of. One in my ready to. Jump. Back on the hamster wheel knowing that the energy and effort that it takes to start a company from Ground Zero just to give you a little bit of an idea of scale, we raised around five million in capital. Peaked at about fifty employees and contractors and. Had Global operations throughout the world live video delivery tool. So basically create communication and collaboration for product companies or customers were. People like Nike Levis go crow. So it was Super Fun ride for the vast majority of it, but also pain along the way. So. Maybe before we SORTA die being. Where you are now. And some that fear, and maybe we can spend a little bit of time sort of plotting out a little bit of a path forward. I think for context it won't be helpful to talk a little bit about. The transition out and what the last few months were like. Yeah. So my first question is, why did you leave? Well it's it goes back to about a year ago. So the company. was doing really well, we navigate a number of things that mentioned have one co founder and we we were a spin out company so. You know from the early company creation process, we navigated some pretty tough decisions very very well, and then we grew in that process was insanely rewarding fantastic management team culture, the company momentum of becoming the May. Top four hundred of Inc. five hundred list of I two to three years in business that we were growing well over one hundred percent those first couple years. On, and then just as the numbers got better know even though we're adding over a million in a are. The percentage growth rate was telfer and I started to notice some issues with my own in particular. I was just we weren't seeing eye-to-eye in. Too. Many situations. And started to become a problem out as we are trying to make sense of. Why is the company not growing over one hundred percent anymore Even, though we were making solid progress, it was. Challenging to make sense of that. I had one one venture capitalist one angel investor, my co-founder, an independent on board. So I was I mentioned been to rebuild circles and I was looking back at my journal entries from a lot of those sessions. There were times where I realized. I don't think I have the right border I'm not really managing my board the right way. and. I tried a number of different things to sort of realign redirect. But, ultimately, it led to me trying to make some changes on board. And then I walked into a board meeting. Only, two board members were there. Now, that kind of meeting goes and that was February two, thousand eighteen. And so they said, now's the time to hire a new CEO identify contest job for but. We want to his company next level we feel like it should be growing over one
Is NYC on its deathbed?
"Last month executives from more than one hundred and sixty of New York City's largest employers, banks, and law firms, sports, leagues, and Real Estate Developers sent a letter to the Mayor Bill De Blasio. They warned that his poor management of the pandemic was threatening long-term damage. There is widespread anxiety the wrote over public safety cleanliness and other quality of life issues that are contributing to deteriorating conditions in commercial districts and neighborhoods across the five boroughs. The five boroughs of New York. City to see you know are the Bronx Manhattan Brooklyn Queens and Staten Island. Also just so you know Bill de Blasio is Democrat who even before the pandemic was almost comically unpopular. We don't need to get into the details, but if you want to read up on him, just do a search for de Blasio that's DB L. A. S.. and. Then arrogant or hypocrite even schmuck. Considered this campaign ad from a fellow Democrat. The less bill de Blasio is the worst mayor in the history of new. York. City and that is. Rose. Congressman. You don't sound very happy about that. Blacks Rose Macau. Grossman now you and I happen to know each other a little bit through a family connection. My son, has worked on your campaign in in your office in DC. Do you saw me swear to not let that relationship influence this interview I solemnly swear rose represents new. York's eleventh district historically the only congressional district in the city, the votes Republican it includes all of Staten Island and parts of southern Brooklyn one of the highest rates of unionization of any district in America cops firemen. Teachers. Nurses. First. Responders Sanitation Workers, folks who we just recently started calling essential workers but quite frankly, they were always essential like every member of the House of Representatives rose is up for re election in. I don't care about politics my friend. Not Right now. On employment skyrocketing the economy in disarray people fearful further. Fearful. For their future of their families the time to be thinking about how to help people making government finally work again, people are so disgusted with their government that's on the left, the middle and the right. You recently said there is no reason that every single teacher in New York City should not be tested at least every other day as far as I know that's not even close to happening. It's not happening because a failure of leadership a failure of imagination nobody has confidence in this city right now there's no plan there's no solidarity. There's no resources with a system of pool testing with a system with New York City is acting almost as if it is a venture capitalist, it comes to figuring out the most innovative ways to beat the pandemic investing in them early on with private partnerships and then dramatically scaling them. There's no reason we couldn't be testing every single teacher every other day we asked Mayor de Blasio for an interview but he declined there are at least two reasons why in political circles de Blasio is considered particularly unskilled last year he spent a lot of time outside the city for president even though he had virtually no constituency. He's also managed to annoy the one person a New York City mayor can't afford to annoy the governor of New York Andrew Cuomo. New York mayors have a history of acting like the most powerful person in one of the most important cities in the world which to be honest it's not entirely inaccurate. A lot of the city's leverage runs through Albany the state capital what we need, and what this has not done is we need someone who's willing to exist in reality. Guess what if you want the city the prosper you need the governor. If you want the city to prosper, you shouldn't be at tagging housing them. You should be working with him but as Max rose season, the Basel Administration was failing New York long before covid hit in some ways the mayor and his administration took up a new form of laissez faire economics where they said well, we don't have to invest in the future of this city because people have to stay here, people will need to stay here. People will always come here and build their businesses. We don't have to do anything. Well, that's of course, not the case this is a competitive country and it is a competitive world. During the pandemic New York City's been competing with neighbors like New Jersey and Connecticut, and New York suburbs also Florida and Arizona in Nashville Austin those at least are a few of the places that some New Yorkers have fled to. But how many? The truth is no one really knows yet. Pre pandemic the city's population was eight point three million. The New York Times analyzing cell phone data from that four hundred, twenty thousand people had left the city between March and may most of them wealthier residents with a second home. But that measurement has an obvious limitation leaving the city with your cellphone doesn't mean you won't return especially if you own your home since right now is not the easiest time to sell a New York apartment. Here's another probably better metric since March, roughly two, hundred, fifty, thousand New Yorkers have filed with the post office to change their mailing address. That's about double the number from the same period last year. So that suggests roughly one hundred and twenty-five thousand higher than normal outflows that goes with a significant decline also hard to measure in the number of people moving into new. York. Still in a city of eight point, three million, this doesn't seem to qualify as a mass exodus. To. Get a slightly finer greened look at population outflow. We called up Nancy Wu I'm an economist at St Easy where I look at the trends about real estate and then create analyses to tell stories about the data street easy is listing service used by landlords and renters, buyers, and sellers and real estate agents. It manages a pretty impressive database. I have access to all of the market data on the sales and the rentals listings in the universe of real estate listings in New York, city and what has seen since the. So Manhattan rental inventory as of July there's been thirty seven thousand listings on the market that is a sixty five percent growth from last July and how about in say Queens and Queens you should now has two point, two, million people whereas Manhattan has only one point six, million in Queens there six, thousand, six, hundred listings on the market, and that's a twenty six percent increase from last July. So inventory grew everywhere when looking at the borough level but grew way more Manhattan. So that's some rental data. What about home sales in July? There's thirty seven percent fewer Manhattan. That went into contracts than in the same month last year there's largely been a fast forwarding of the natural attrition of the City so New Yorkers were planning on moving to the suburbs within one to two years are doing. So now instead so these New Yorkers are taking advantage of the low mortgage rates to move to the suburbs. So that's another hint that the outflow may not be as apocalyptic as some people think at least not yet that may be more of a one time acceleration of constant trend. Although of course, those outflows are usually countered by inflows will keep moving into New York. There are a lot of reasons to suspect not particularly in the short term, the city is diminished and it remains relatively expensive especially housing although that too is changing at least a bit in Manhattan rents fell by three percents year over year since last July that's the biggest decline we've seen since agree recession when rents fell ten percent but Wu says, we may be seeing only the beginning of this trend we do expect Manhattan rents could fall by more than ten percent because there's a lot of factors where the pandemic has more impact on rents than the great recession did. That may be especially true for two reasons. The first is that a recovery from pandemic is likely even more uncertain than recovery from a financial crash. The second is that the pandemic isn't done doing its damage on the economy just last week, we saw tens of thousands of new layoffs and furloughs announced by firms like Disney and united and American Airlines and even when jobs aren't based in New York City, there is a trickle down effect on the financial services and banking industries here on consulting and accounting firms on commercial real estate and the hospitality sector. A recent audit by the New York State Comptroller reported that over the next year between the third and a half of New York City's restaurants and bars may close permanently.
Jennifer Neundorfer of January Ventures
"And today we're gonNA hear from Jennifer new door for she's the CO founder and managing partner of January ventures. It's an investment firm focused on tech startups founded by women and people of Color Jennifer join me to talk about how her company is approaching investment strategies during this unprecedented moment and how they differ from other firms overall. What we're doing differently is really building a venture firm that is designed around access and transparency. That's not what venture has traditionally been known for, and it's what has really under served winning and underrepresented founders, and so we make it very easy for founders to pitch us and find us in everything that we do is focused on removing friction for those founders at the early stage and what type of startups do you look for? We invest primarily in tech enabled talker businesses. So we are investing in companies that we believe can be high growth scalable companies that are going to be capitol efficient. We are investing the capital early and then are looking for outsized return. So we're looking for companies that can go on to be hundred, million, billion dollar companies, and really be those outliers that generate returns for our fund and. You you invest in the in the seed stage. In the early stages of a business we invested the precede seed stage and what are the reasons that we do. That guy is when we started January, we did some early research and there had been a lot of data talking about how how little venture dollars women receive in two thousand, nineteen female only teams received just three percent of. Venture dollars, and if a woman happened to have male co founder, she received eleven percent of venture dollars. But what we found in our data as we look just at the earliest stage is that there's not only a gender gap, but it really starts early. So for every dollar that a male found raises at the precede or seed stage, a woman raises thirty eight cents and a black. Woman just two cents, and so that is really where we are focused to January. Because as you imagine a dollar versus thirty eight cents on the dollar versus two cents on the dollar, many of those are handicapped from the start, and so our focus is on getting them the capital and resources that they need to really generate momentum for their business and get to that scalable growth curve. How large is your fund right now? Yeah, we're deploying out of the twenty million dollar fund. Were typically writing checks that range up to half a million plus because we're investing stage when founders are raising. Two hundred fifty three hundred up to a million dollars on a really at those earliest ages and often the first capital in. And who who are your investors. Are Investors Range. So many of them are the typical investors that you would expect to see family offices, high net worth individuals, and some institutions and foundations. But from the beginning my partner Marin, I wanted to be very deliberate about who are investors are limited partners were because. So much of the traditional venture model has relied on a very small set of investors or limited partners and has reinforced this flywheel around making that small group very wealthy, and so what we have done in both of our funds is proactively reduce the barriers for nontraditional investors to invest in our funds whether that is a founder who is just beginning to. Capital Wealth and may not have a lot of equity and finding ways for them to participate or pitching LP's who follows height of the the traditional circuit that most funds pitch. You know whether it's by geography ethnicity we've really tried to work hard to diversify our alkies. How do you find startups to to invest in? I mentioned that venture has been so long on really inaccessible to most founders and a lot of that is because many venture capitalists rely on their network to source deals, and that's fine. But most of the people that are in someone's network look or are similar to similar characteristics who that person we hear a lot of talk about the tests Cana found her get a warm intro to them, and if so then they're willing to consider taking meeting. We turn that on her head at January, and so from the day that we launched, we have been open to cold pitches and when we went out with that, many of our peers told us you're crazy. We weren't gonNA see great pitches. There was no way we could handle that certain volume. And we were pretty overwhelmed. When we launched in October two, thousand eighteen, we saw four hundred pitches within the first week and so very quickly we leverage technology to develop a scalable way to review those deals were very generous with the first thirty minute meeting. We want Martin I want to be the first people at our meeting these founders right we want to be the ones who are judging whether they are a fit for a thesis, and then we have a higher bar for. Who we spend time with who we due diligence on and ultimately invest in because the nature of our businesses there's a very wide top of funnel, and in any given fun were making twenty five thirty investment. So there is pretty Winnie in process but were deliberate in the organizations that we work with to make sure that we are reaching founders that really fit that underrepresented mold and telling them that are light is on and we WANNA be fund of choice for them so tummy. Tell me some of the startups in your portfolio. Yeah. This is the part that I love talking about it sort of talking about your kids on. And it's hard to pick just one but I'll you a sense for some of them. We are investing problems that we believe are big and we really care about solving were really focused on investing in companies that are addressing big broad problems that are going to shape the future, and so one of those founders that is really doing this is a founder Julia. Collins, who is the CEO of the Company Up Planet Forward Julius founder who has deep roots in both food and sustainability and great founder market. That's something that we look for a lot and Julia is building a regenerative supply chain for sustainable foods. Just Chris. Quigley you sir. Can You? Can you kind of explain just plain plain language orders a regenerative supply chain me I mean I, I notice supply chain means a note regenerative means. Yeah. That's a great question guy. It's really about the ingredients and wear brands and CPG companies are sourcing the ingredients for their foods and they would basically evaluate the sustainability and on a number of different metrics including the carbon footprint including those ingredients were were actually farmed and then be able to suggest alternate sources and it'll turn it whether it's a different farmer on a different type of ingredient that have the same impact so that I as a brand could make those adjustments and make a more sustainable. And regenerative food product right. So if you were looking for palm oil, for example, this platform could say, Hey, you know this is a better place to source your palm oil from. That's exactly right and they are really the first ones to do that on an what we've seen in the past six months is that consumers union between being at home and suddenly really caring about what food they eat, and then all of the very visible events in the last couple months around climate change and sooners are really starting to There's a there's an acceleration in consumer awareness of climate-friendly foods and being conscious of the choices that they make and wanting to be sustainable.
"venture capitalists" Discussed on Texas Titans Podcast
"How they thought through that and in some cases I've said no to Investments simply because The man who came just gets all defensive, you know, just simple stuff like they say, okay, we're going to launch in January and you know, it'd be great, you know, and I look at January's revenues pretty significant home. Okay, the module launch is significant Revenue like tell me about the cell cycle or what do you mean like, know, like timing is first interact with a customer until they actually sign up. How long do you think that is probably like two or three months? Okay. So if you're launching in Jan or your first sale is not going to be till March or April right? Where do you deaf we talked about this sales cycle in the process and help, you know. Oh, okay. Oh, yeah. So now you have all this Revenue in June February March and April hear you really won't have we're going to have to shift all the revenue forward. Now look at the cash flow. Look at the j-curve. Now that really palette says you need to raise a million that happened like, you know, those kind of men they if they start getting super defensive or just that level of sort of clarity that I see that they don't because they haven't been through it right say is the first time entrepreneur then I I'm just I'm already done. It's like they're not home enough to go off. That's a great idea. So right now we're just I'm pulling the trigger on a million dollar investment through the The Venture Capital Fund in the partner in with this entrepreneur second monitor. He literally was one of those guys. For all through High School through college making money way more impressive than I ever was. was just making a little bits of money. He had a business that he ran for eight years from high school and college right? And and now he's got this really cool place to invest in a million dollars. I would really believe never really loved him but he was so humble and so teachable Jason as we're going through the diligence, we do strategy diligence. We do Financial month and then we kind of diligence the entrepreneur the team right? He was fantastic in the process of diligence. We completely changed his strategy. Wow, you know, and I've seen her go ahead. I think you should do this instead of that this you know, and he's that's good. That's good. That's brilliant. Right? And then it comes back the next Bills call and he's completely rewired as planned and he's on board with it and go on all I like him. I like him. Amelie recognized there was a degree of expertise was among our partners Venture firm and that we had lived through very similar circumstances and always relate that back. Hey, let me tell you about a company. I was involved in order that I invested in her that I start off here are some mistakes I made here's what we did differently and I see a similar pattern here. I think that might work better for you and the good news is he wasn't pushing back he what didn't keep saying is going to be bigger than Google or Facebook, which I get a lot of that was really eager to learn and absorb and we wouldn't get out of their calls with lbs of my partners would say, oh we liked him. He he listens. So yeah, that's what I look for. Yeah. Yep. Well and that's one of the things too that you know, that whole thing that I took away to was, you know, the right questions to ask and that was one of the things that keep going back to you you talking about HBS. I told you I went to business school at SMU so, you know over a couple hundred grand in today's dollars in education and I would say wage Greatest thing that.
"venture capitalists" Discussed on Texas Titans Podcast
"I can see why I feel put us together because stories are very similar. My dad was the type that when I was growing up if I wanted something said fine, you could have this issue or you can work and you can earn what you're really wanting and and it was also at the exact same age. I was Twenty Eight whenever I escaped from the Home Depot so fortune five hundred and was like God I I grew up. My dad was an entrepreneur and I remember the same thing cut grass, you know, I would sell baseball cards. I'd trade knives at first Monday trade stay in Canton Texas, you know what and it's just it's not so much one. I thought could make more money and I could control my fate more. But also would you agree way? It's just more fun man. It's just more creative right than just kind of and and then when you get to that point where you realize the difference between off the front of a paycheck vs. Signing the back of a pay check man, it's just it's eye-opening, right? Yeah. Yeah, it really is. So the yeah, it's been fun. So the Army was sort of my first time I ever thought. A paycheck and I completely blew it. The first thing I did was as I became a commissioned officer was about to go on activity. I went on bought a Corvette like one third of my life, you know deal with this paycheck and all of a sudden everyone's willing to lend you money. If you have a paycheck as the first time I had like a steady paycheck in my life and it's just hilarious but I did the Army which was a big institution that I went to a big Corporation..
Starting Zocdoc with Oliver Kharraz
"Oliver Karaz was born and raised in Germany mostly in rural parts of the country his mother was German and his father was from Iran in came from a long line of doctors. For me, it really starts in some ways with my dad and. The timing rapidly had every reason to become a social activist and and so he came to Germany from the Middle East when he was very young around twenty with no money in his pocket no language skills. And you personally then worked on of odd jobs, but he eventually became a psychiatrist but what has really shaped me much more than being born in Berlin is. Social. Active. Isn't that I that I saw him live and that he really made our family mattress we always talked about talent responsibility and the need to use. Whatever telling behind to help those. Around us that we can make a difference. Given that your father was Iranian and your mother was was sort of. German. An Uber even though you were born in Germany, did you feel did you feel as Germany everybody else? So I didn't have a second identity. We only used spoke German at home and yet. As you say I was also a not always fully accepted. So if I give you an example, my school twelve hundred students and you could pick out to the didn't look like everyone else and I was one of them right and even an enlightened country like Germany. That is notable. So I had what I call a visual accent would people would see me on the street and they would ask me how to speak German. So well and But they also school the skipped my name when reading out scores because they weren't sure how to pronounce my last name and opportunities taken away and even at was physically threatened so i. I think that really shaping in many ways because I realized. Very early that in order to be as successful as everyone around me I would have to be dramatically better in really work much much harder than anyone else and so that used to be strong work ethic in me. For the record Oliver is somewhat down playing his work ethic. Because just out of high school, he actually started his first successful company. It was the early clunky days of the Internet, and he designed a way to help people send emails more easily and he wound up selling that business not for a ton of money, but enough to get him through medical school. But. After practicing medicine for a couple years Oliver realized he couldn't stop thinking about that first business he'd started and how he wanted to start another. So he quit his job in medicine and consulting job with Mackenzie and eventually moved to New York. That was my goal was actually to start another company that that's A. Healthcare, but I I'd also realized at the time that I sold my first company and far too cheaply in that I should learn more about business I and at McKinsey God exposure to balance sheets and panels and hit a lot of very practical experience and what it means to manage business. And I think they fondly of my time at McKinsey was one of my better decisions. McKinsey GonNa Mackenzie is a little bit like going to business school. A lot of people at McKinsey have come from business, schools. In that. Many people go to business school thinking they will find a co-founder. Did you were you actively looking around at your colleagues to think maybe I can do something with him or her you know maybe that person. Absolutely and were you just thinking about different business ideas all the time? Well, it is actually very hard to find good ideas and my definition of a good idea was that it needed to have a great mission I. wanted to make sure that we actually do something good in that. We stayed true to sort of talent breaks responsibility, but also wanted to be a large market and to have a great motor rounded and also I wanted to be based on contrarian inside. Because I thought that all of the best companies have that at its core. While she wanted mission, you wanted a company that could kind of dominate its field by building a motor around it, but was also contrary and that's that's that's those are some interesting. Criteria. And that's why I screen for several years rejected pretty much every idea that that I came across And meanwhile. While you're going through all that I guess you meet this guy Cyrus Masumi. WHO's another McKenzie consultant and and just you just. Become friends like he's like somebody like in and you guys start hanging out. While we got put on study together that required us to travel globally and you've ever done that it meant frost were sixteen eighteen hour days together for three four, five months on end and we really. Got To become great partners in that and and what we realized that we had some. Very complementary skills. Cyrus is one of the most charismatic and gregarious individuals. You'd ever meet his very passionate. He could be more forceful, which sometimes was needed to be effective with clients. And you've talked to me now for a little bit as you can probably tell. More dispassionate and logical and more measuring. German? More, German in many ways, right. also was effective with clients by by. and Cyrus is American right? He's American this but that That close listened and how we work together that really started friendship and we stayed close for the study and be caught up over lunch pretty regularly denounce different business ideas off one another and. I think we connected because we had similar interests because. On. Some levels We were equally passionate about what we're doing higher says, passion was more visible to others than mine but we. Were close enough together that we both accepted. The other as. individual that that we could learn a lot from. Was it was it clear pretty soon after you start hanging out, Sarah's that this was the guy because you were. You're on the lookout for a partner. They I think it was was absolutely an option I know reality is that. With. Both founded companies before Mckinsey and we both knew that we wanna do it again and as I. was always great about being. Very honest. Rather than just nice and and I value that a lot. Yeah. All, right. So So this guy, Cyrus Super Charismatic, really smart clearly, the two of you start to to work together. And what what kind of business ideas are are you coming up with? While we kind of fell in love with a new idea that came about a one of these launches were Cyrus. Told me about how he recently ruptured his eardrum by flying with a cold and then found it very difficult to actually find a doctor and he had asked for recommendations and called down his insurance directory listing started with the as. Doctors weren't accepting new patients some no longer accepted two centurions one provider Pasta Way and so he said, well, why does it take four days to the doctor when I'm in pain right? And why can't this much easier? And we. Both very quickly. realized the potential of this idea from. Working at project be new helps us the for actually spending millions of dollars for marketing to grow their patient base because they had wasted inventory, right they had something that I like to call hidden supply, which is these last minute cancellations no-shows reschedules. That the that go to waste, and then on the other, there are the patients who had a hard time accessing this. You thought it immediately clicked with these my God. Yes. Doctor's appointments connect patients to doctors. Yeah. Well, look if you go through the forfeiture that I had read, it's a great mission right? We're making one of the most personal needs more accessible for for patients we can help patients to get in fast we can help the doctors become more efficient. We can make the entire health care system more cost effective people out of the emergency room things like that, and it's a marketplace. So there is a strong mode and clearly anything in healthcare is a large market and I think the contrary and inside that we had. was. The fact that. Most people thought it's normal that people have to wait twenty four days to a doctor because there's a doctor shortage in read our inside was really no doctors have asthma debate ability because of these last minute cancellations, no-shows reschedules and so I felt very about this idea. So. So you member like how long between the time that the you had that first conversation To the time were both you said, let's start this business was like monster or weeks or days. was was weeks. We what we what we started doing is actually. Mocking up the side in how imagine back then in powerpoint pointing just the wire. Website. Yeah. Wire frame. Exactly. We would. We'd go into starbucks and we'll chat up strangers and say, Hey, here's a five dollar gift card. Give me your thoughts. Sorry I'm GonNa. Go back. You just go to people in starbucks Gift Card and say, can you give me your thoughts? Random Person? The absolutely that's that was sort of our market testing. They wouldn't. They would be like excuse me this is a little weird. You're my space. Might also happen from time to time but you know there's lots of people on starbucks is very in German of you. That's debris because usually he would be to report tentative about doing that. Well, you know I think there was a lot less rejection than you think people actually quite open I. Suggest you try this out but if you If you're unthreatening in Luke harmless as we probably dead and then they'll be pretty open. You went up to and starbucks and you'd say, Hey, we're thinking about a company here. Can you just look at his powerpoint give you five dollars Gift Card and what was in the powerpoint, the popcorn and was just what we thought. This website would look like and we would ask them is the set service that resonates with you would you use it and and we got an incredibly valuable feedback here and really set us in many ways on the on the right track right? So and what pointed to the two of you decide let's quit McKinsey. Let's. Let's pursue this. Probably a month or two after we initially discussed idea did anybody say you were crazy for quitting? Everyone. Everyone told us. Crazy and got a lot of negative feedback on the idea to write people would say this is Bloomberg out I would never pick my doctor on the internet or I already have a doctor or you know doctors wouldn't accept patients that that are looking on the Internet of all kinds of protections that people had when they were thinking about their own situation by. When when you talk to people and starbucks, they actually thought about it much more positively. So we were encouraged enough to say, well, this is going to work as long as we get out of our circle and don't ask McKinsey consultants doctors. The responsible be better. All right. So you are in your thirties at this point. And presumably were making pretty good cash at McKinsey because you were probably you'd know expenses you're on the road all the time so. When you quit, I'm assuming you had some money to launch the business and probably live off for a while. Yeah. So I very deliberately had never raised my living standard to the money that the paying McKinsey and I had saved every dime so that I could. No be in a position where can fund this embraced can afford not to take a salary for a couple of years. Wow. So so a couple of hundred thousand and you saved. You know. Maybe. I'm to Germany to discuss personal finances but. I had. Built this. Radio, you can tell the. Story Yeah I I had I had enough money to live off for for several years but I also Saturday night both finance the company early out of our own savings so that clearly diminish We had leftover after that. So now, you both decided to quit. and. You have some technical expertise because you had. You had done some coding but this is next level stuff. Were you able to be that technology founder and Cyrus was going to be the the sort of the business founder? Absolutely not as I add coated but at that point, I had not touched a computer for a long time We knew we need to have a technical co founder and so Sarah's knew a guy named Nick Guanzhou from the time together, trophy software, and this is another company that they would both worked at the that's the company that they're both previously worked together and Nick just brought a totally different perspective and really educated Addison me on a lot of things and and he was really the one who understood a building a seamless experience for the consumer and ends May. Zach Docs. Early Genius, did you did you have the name dock from the beginning? Not, not initially we we went to several phases on on what the right name could be for for while we wanted to have a descriptive name. So we looked at physicians, dot Com Doctors Dot Com, and we actually tracked down the owners of one of these domains and they wanted several million dollars for the domain name. And and we were finding the company ourselves. So that was out of the question. So then we just sat in a room and we brainstorm a list of fifty or one hundred names, and then started eliminating names until we arrived at Dr. What does it mean? or it doesn't mean anything which was the WTO bit we could. There were zero search results. Okay. There's no meaning behind his ACH. There's no meaning behind and and in hindsight it was precisely the right thing to do because it really was a blank slate for us to fill with with meaning and really build a brand around. Zero such as October we started. It address nate the right lake once you know that it takes more than three weeks from picking up the phone and dialing for doctors till you actually see someone you realize Oh, this really not much else that we have to wait so long for to get. And this is more important than most of these other things you already have. Fantastic access View Magin. If air travel way that healthcare workers that wouldn't be an expedia that wouldn't even be Delta Dot Com that would be individual phone numbers for every plane. Imagine. If that happened, you know a half the planes would fly empty it would be a massive pain and that was actually the state of health care before sock. Is Amazing that that the nothing like this was out there in two thousand seven. I look at I. Think. In many ways you couldn't build it a much earlier. In the early days. When we went out there, we were the ones installing Internet of the doctor's offices. We. They they were a many times just migrating from a paper books to scheduling systems. We were at the cusp of digitisation for healthcare. We were just lucky in our timing to get this right in and start offering the service when that also happened. All right. So you decide to pursue Zach dock and it's the three of you. I'm assuming really just at the beginning and were you working out of out of one of your apartments? Did you guys rent space? No, we worked out of respect for. Many. Times we came to make yet the nicest apartment and and we could bring breakfast Burrito and bake him up and you know the the reality is that we originally had a pretty ambitious launch plan right so we got together around July. We wanted to launch by December of two, thousand seven. Something interesting happened were nick send an email suggesting to look at what was then called techcrunch forty. Take is is now a household name but the draw for us back then was there was a fifty thousand dollar prize now it's called tech crunch disrupt think. So it's a major a startup competition. It's a startup competition and we were the first class of this was much less known be budgeted two hours to fill in the application in really which will send it off. He didn't think about it anymore that there was an early July and early August we've heard that we had been accepted, but there was a complication we'd have to be ready by September eighteenth or. That was three months sooner than we had originally planned to launch. So you'd have a live website by September that is right that is right with doctors with doctors, right So we actually debated for a few hours whether we should even tried to go for that but we ultimately said, yes, we can get the website working and we wanted to have enough doctors just a bars wouldn't look pathetic. Brayden. Coded Night Neither Day and nick really busted his but he did the patient facing side of the website and that was the programs. What was potentially even harder because we're tried to launch a marketplace was to actually get the initial supply on there and remember the website wasn't there yet so. Tires ended up going door to door for doctors offices. Excuse telling them a powerpoint page, and this is really a testament to cyrus sheer willing determination if you think about what it means to really start a company early on, there's nothing to show right you may be a powerpoint but there's no website there's no patience. There's no other doctors no social proof and it has to run on passion and very clear that that is Cyrus superpower. He just went to random doctors offices or he had like a list of doctors offices and he started kind of walking block by block. Well, there's a lot of walking involved a we launched in Manhattan so you can literally go down the street and you see. The signs and you walk in. And he was basically saying look, it's a way to connect you to patients. How was how many by the way? What was your objective? How many doctors do you need to sign up to have this website look okay by September Between six and ten was our goal. Okay. So just doable it is a was extremely hard really. Is telling doctors is one of the hardest things to do why were they saying? Well, first of all, it is baby very hard to even speak to a doctor they are being shielded. Their time is very valuable. Office managers are trained not to let anyone talk to them to protect the doctor from people walking in selling them stuff shirt them. Secondly, they many didn't want to give up control over their calendar which has to write. We ask them to post times that a patient could book into it and it was just a far fetched idea for many of them the patients would actually do this. So he got a lot of knows he got a lot of knows. He'd go there and he just simply not leave until he got a chance to speak to the doctor and a few times. It was even escorted out by security. I really think one in a million could have put this off. I mean was he going to particular kinds of doctors or was he generally focused on an Internet general? Practitioners Ob sobe began with dentists Okay. Because our thinking was that. People go to dentists most often, and we wanted to make sure that we have an offering that is relevant for patients as often as possible. I. Got you so so eventually unassuming, you do get what six to ten or how many did you get by September of two thousand seven Eight. In the meantime, you inequity doing the back end stuff you were doing the coding and building the website does right and as you were building it. How did it look? So. The bit that Nick Build looked awesome for the time I think. It was impressive. We were. Very. Satisfied that we had a scroll bar that we had a map that we had back then already the insurance selector and a lot of feature that. Weren't to be found really anywhere else. All right. So September two, thousand, seven, you are ready to reveal. This service at. Tech. Crunch. And Doth Review present or did did Cyrus kind of wishy the spokesperson? Cyrus. I presented Nick stayed behind in New York to make sure that the less the website was actually up and running This is in San Francisco that you went to the we flew out to San Francisco and So we lost sock talk in front of Eight, nine, hundred people. A lot of them were journalists when the judges opened up with feedback guy covers ocoee who we newnan in valued. As embezzles forever apple he came out to said he he didn't get it. He would never use this in front of everyone right and. His direct load something like honestly Oh, it just never occurred to me to go to any doctor that's really burned in in my brain and what was worse is that he seemed to be right we didn't get a single booking. We were hoping that this PR would get us out of our initial batch of users, right because your other. So many tech journalists there. So you know the publicity may be would would would lead to bookings and that was the hope but. It actually took three days before regard our first legitimate a patient, and and in the entire first month, we only got five bookings. You come back from San Francisco and. You know you had Guy Kawasaki. Say I don't I would never use this service? I'm sure he feels differently today but man maybe then Ezio said that but did did you come back feeling like like dejected like losers or or were you excited like how did you feel coming back? While you know I think we obviously hoping we would eventually get more bookings and In the beginning you probably refreshed. The Bookings Report Hundred Times a day by as we were thinking through what we realized. It was really a typical two sided marketplace challenge It's just a classic chicken and egg problem. You need the supply to get the demand and you need the demand to entice them supply and for dark was even trickier. Right when you think about it, healthcare is hyper local. Very complicated. So you have to match. Supply and demand on a Zip code specialty level, and then we have thousands of insurances take. Until we realized that our odds of actually finding a patient that wanted. An offer there. Quite low, and so the best path forward was to methodically build up supply, and so we just kept going put up a huge map of Manhattan on the wall, and then a sleep put little flags on of where the doctor's brother we're on the website in which insurance is accepted and we just we knew the perseverance. Is the name of the game. Back in just a moment how oliver and Cyrus Begin to drum up interest in stock and how they even start to raise some money at figure out how to dress differently, stay with us guy rows and you're listening to how I built this from NPR. Hey everyone. Just a quick thanks to our sponsors who helped make this podcast possible I to epic provision maker of epic bar beef was nature's idea the epic bar was. 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The deal with our personal finance tuneup series will help you feel more confident and get you on the right track listen and subscribe to NPR's Life Kit. And just a reminder, you can preorder the how I built this book right now, and if you do I'll send you a free signed book plate to go inside the book. The book is a collection of insights and wisdom from some of the most incredible and inspiring makers, inventors, builders, and dreamers on earth to preorder and to get your free signed book plate while supplies. Last, please go to Guira DOT COM or how I built this dot. com. Hey welcome back to how I built this from NPR Cairo's. So it's two, thousand, seven and Oliver. Cyrus. Nick are basically powering through with Zach dock going door to door trying to convince doctors. It's a valuable service and the thing about doctors even though they're really smart and capable and we depend on them. A lot of their offices especially back in two, thousand, seven or sort of technologically in the Stone Age. There was incredibly complicated to sink the doctors calendars with ours. Because none of the software was actually made to sink. Were even in the places where we had syncs up and running, we would frequently get. Feedback while the punishment didn't happen because the doctor wasn't available and we really couldn't figure out why this was the case because when we did screen chairs with the office to their calendar and and our calendar, it was identical right and couldn't figure out why that's happening. So I decided to sit next to the office manager I went there and got to know him and his family photos of his dog. I fixed the printer taught a better strategies to play minesweeper still couldn't figure it out. Until one day, the doctor would come out and she'd say, Hey David I'm out next Friday. And then what does David do does he go into the calendar and block out next Friday or does he take a post? It note On a doctor out next Friday and sticks this too is monitor. In the real world. These post it notes, of course happen and but once you know that Matthew Friend, you can start filtering this out and that's one example they were literally a thousand point, one percent solutions that we had to figure out to make this work. Wow. That sounds I'm getting exhausted. Just hearing about that because this is like even like Google calendars, right? Yeah. Yeah. That was that was early days and what we were extremely focused around were making show the experience was fantastic. If something went wrong, we fix it. Right. So I was our customer service I personally would call the doctor and and confirmed the appointment was all said if it wasn't I, personally contact the patient to let them know and then I would offer them. Amazon Gift Card alongside with an apology those actually one case where it didn't catch a patient in time. and. The were in the subway to the doctor, and so I raised them to the doctor's office and picked up a bouquet of flowers on the way there and met them in person to apologize. And that was really a turning point burs. The service has to work and we need to be have this patients I attitude in in terms of how it works completely ingrained in the company. All right. So you clearly need to kind of grow this Were you offering this service doctors for free at the time? Initially. We for free by we eventually started charging fifty dollars per month. But Sam doctor you come into my office and you say, Hey, if you pay me I can bring you more customers. I would be skeptical I would've said to you you who whose, who even knows about you. You'RE GONNA you're asking me to pay you money for Phantom bookings for maybe no customers I mean did some of the doctors say Many. The US summarize our sales challenge. Right? It was very hard because even if you wanted to, we couldn't easily share how many patients their competitors are down the road God like that was something that was confidential. All right. So you are you got this chicken and egg problem. Not, enough people signing up and he gets skeptical doctors but you know that the service could really benefit the doctors, but you also need them to pay for because otherwise you know but business. Meantime at a certain point I'm assuming you guys start to think we'd better go out and look for money if we're going to really make this thing work. Yeah. Yeah. That that happened in the spring of two, thousand, eight we decided we raise series. And we we make the rounds we get in front of a number of the big name, BC New York the also go to Sandhill road in impel. Toho Santo Road we leads and road initially were very successful at all we got Polite knows. and. Ray No feedback control someone took us as I told us you know what the idea seems. Good. But you're consultants I'd and the perspective of its consultants can't get anything done and what realized is that even though we had both founded companies before our Mackenzie Pedigree in our keys and button down shirts, they were really hurting us, and so we wait rank Khakis and button down shirts. It sounds crazy. Were they pleaded pants or were they at least nine pleaded please. Yeah Yeah. Yeah we after hearing that feedback We very quickly just went to the next gap and bought jeans and t-shirts and from that on the combos with VC's when but a lot better. So you went from McKinsey consultant look to this are the tech casual uniform of jeans and t-shirts that that's exactly right and we introduced ourselves not as NBA's and McKinsey Consultants but we introduce ourselves previous entrepreneurs that are starting their next company. was was anyone biting? Were there people who were like? Yeah there's a great idea I'm in. So interesting enough we had raised some money from. Friends and colleagues, and many of those they invested in US business plan unseen just based on the fact that we. Were giving up our careers at McKinsey to pursue talks. So that felt really a great. and. As we started changing how we appeared in how we introduced ourselves to venture capitalists L., we started to get offers and so in August of two thousand eight, we ended up raising five million from KHOSLA ventures expeditions mark. Wow Mark Banya Jeff bezos, and Venus is. All their. Funds are in which sounds like a lot before you WanNa do it's actually. Kinda limited because you still it seems to me in two thousand eight even though you have five million dollars a lot of money you still have this problem which is you've gotta get. Customers, and then to get customers, you need lots of doctors had lots of options but to get doctors, you need lots of customers booking through the site to you do that precisely D- These five million dollars per lily earmarked for making New, York, work, right, Miguel, I market work but. immediately after raising the money the financial crisis hit. And You may remember there was rest in peace a memo that went around about startups, right? Yes. About start ups, never being able to raise money arrested in peace good times. So we got this job is to make the money stretch in. We probably learn not during this time This was really our first go round making hard choices and what I want to be frugal and not to do things we can't afford and We learned to not let money replace critical, thinking and creativity. But now we continued to grind away at New York and at some point felt while if you want to get. To the next level we have to prove. Dr Isn't just a New York City phenomenon. Right? We had to prove that it would work in a second city But at that point, we didn't have the money to do this anymore, and by the way you're still your approach was still the same. It was door to door. That's right door to door and how how you building awareness about the about the fact Zach existed with customers with potential customers. So we it was day very difficult to get someone. To the website. Yeah but when they did. They loved it because it was such a step change from how healthcare used to work for him. Right they used to have to pick up the phone and wait on hold and then plays scheduling. tetris. With the office manager, can you do Wednesday morning about Thursday noon? Friday afternoon, and now they could do the same thing in a minute and have complete overview about the ability patients loved it and they told their friends. So we we started to get word of mouth. Going, and so we saw New York really taking up and we felt like, okay, this does this go into work in New York. At a minimum rate, but we also realized that it took us a fair bit of time. And money to get it going. In New, York and do we couldn't with the money we had left from the five million easily expanded into a new city at the same time. Raising money was going to be difficult because the next generation of investors wanted to see that it works and other cities as Walter. So we were a little bit in this catch twenty, two we ended up. Applying to. Force boost Your Business Competition Four. Forbes has his competition as sell to where they give away money right to they were promising a hundred thousand dollar prize. And at this time. We won. And Yeah what did is they gave us one of these large publishers. Clearinghouse is sex and very useful actually used to cover a hole in one in our only conference room. There was a hole in the wall and we covered it with that. At, this point you are, you are working out of an office, not not an apartment at this point we were working out of A. Shared Office space we work. Yeah. So they had given us publisher clearing house is is check but they fail to give us the small check for three months and we were getting really nervous, but it would still get it but. But ultimately, we got that one hundred thousand dollars and that's what we used to launch and our second market in DC in Washington DC and would did it require you guys to move down there or were you did you hire because I'm assuming you had to? A lot of your early capital was going into sales. Business Development hiring sales reps, is that right? Right, we had a couple of sales reps at the time. A. Very first employee ever was a sales rep is still with the company today and He was great. He figured out how to. Really charm his way. To the doctor. So there were no more security guards escorting anyone out. When did you? I'm assuming that even in two, thousand, nine, two, thousand, ten, and beyond we're not yet profitable. Far From It? Yeah. Far from it right because it's a capital intensive business. Yes. We obviously invested heavily in customer service wanted patients to have a great experience. And we had a quite sizable engineering team because that was actually a major engineering effort. So what started to happen when did you start to kind of see? A real turning point. Yeah. So we we we had launched New, York successfully with. Years. Of hardwork, we've gotten it off the ground is transported that to DC at work well, in DC, and now he said, well, why are we not in more cities and so we actually we raised serious be with fouled respond and We used to expand off the East Coast Francisco then Chicago and we just got better better at it. So we then ended up raising serious and two thousand eleven from Goldman NTSC, and we primarily use this to grow our sales team and sign up more more doctors in from two thousand eleven till two thousand, thirteen, we launched roughly thirty new cities I read that by by two thousand, fourteen would covered. Like forty percent of markets in the US, which is huge I mean that's right I mean that's a huge number of cities. And in that year evaluation. Of tzakda. Past Billion Dollars I mean that's That's pretty remarkable i. mean you were kind of on this like really rapid trajectory and you a pretty straightforward model right and you were charging doctors a flat fee every year and then. They could take all the bookings they wanted and I think that by that point like by two thousand, fourteen knew it was not cheap. It was expensive viewed really raised the price it was like three thousand dollars a year, right? Something like that. Yes recharged Dr Three thousand dollars a year and and there was a flat fee. No matter. How many bookings Actually facilitated for them and and the reality was for some doctors that got a lot of bookings that was a great deal. Yeah. But but there were also doctors that God a lot fewer bookings and for them that fixed cost was actually too expensive and some of them were starting to leave the service, and so we got into a situation that required us to invest a lot to stay where we are and then invest even more to continually grow our overall provider base, which means we had to build out a massive sales team to always sign up more doctors right and. Some point during this time L. Nick actually ran an analysis showed that it would take several years if ever fries to make our money back on on many of the doctors we signed up because you would have to sign up. X number of hundreds of thousands of doctors paying that amount every year. To make your money back to to make sort of our the cost of the sales team back. Wow and L. it. This was pure that would make us dependent on external capital for our very long time, and now it's a clearly there are many companies that have taken. Grow fast at all costs approach. And They Held onto this forty extended period of time by L., it clearly puts talking to a dependency to. Investors in their mind says, yeah. So. Meantime. You know I I from what I understand. There's disagreements I mean there there are you know the leadership team including Cyrus he he's I. Think he's he's sort of his position as the flat fee model is actually the best way to go is that a fair assessment of of his position? Yeah. I think that's right. I. Mean there were two fundamentally divergent ways held the business could go forward right. One way was to continue to work on optimizing the unit economics of our subscription model and the other way was to think about how to make it more transformative leap and then find a new more profitable. And more sustainable model and. Their. Look I can certainly understand The reluctance and taking this leap if companies rechange their underlying business model once they have a certain scale and then live to tell about it, right. We know the names of the companies that have done this net flicks, but from DVD's to streaming adobe. From box software to the cloud, but there's not a lot of companies that do that. and. Needed to make a choice which which direction I wanted to go. And and I should say over that. Became intensely personal for you because hugh and Cyrus really disagreed on on on the direction of the company should take. Steps down he he left the company and you moved into the role of CEO. Those right and what ask you about this neo. Beauty's in the flies of this show is its simplicity and we talked to one person or sometimes too. It's a single narrative, and so we don't have cyrus with us to tell us what happened but I wanna ask you about this time because. This was your co founder. This was your partner This is your friend and he was leaving the company. How did you feel at that time? I all I can say was a very hard and very emotional period for everyone involved and It was certainly a departure But how was through that given these two divergent choices you you couldn't. note, both of us could be useful to talk and. I have to imagine that for for period. China. was sort of the friendship. Look been we were very close we. Were not only friends we had worked for eight years believe together fourteen hours a day, and we probably talked more to each other than to anyone else in our lives but you know. Still touch from time to time and. I think he's joining us on from sideline. He still at prison million owner of the company Yeah, he's still. Here's the thing I mean we've we've told stories about breakups we've had we've had episodes were there were married couples who split divorced but continued the business e O products. Susan Griffin Black and an her husband Brad They continued the business stacy's pita chips continue the business after the divorce sold it for a quarter billion dollars. You guys were worth value to one point eight billion dollars at this point. was was ever party that just thought you know, God look at what we're doing on the core we're going and. I mean did you in service it down and say you know this thing is just growing and? Let's just figure this out. I think the challenge is that it's not as if there was an article way to decide what the right path forward is. As long as investors wanted to give us money growing all costs was yeah. Fine Strategy. The question was just how dependent you wanted to be on the continued goodwill of investors. It sounds like you were tired of going out raising money. You didn't want to do that anymore. Oh, not at all but I think you want to raise money from a position where you know what your turn to is and and. It wasn't clear that the business model would work in in a way that that we could just flip a switch and be profitable. Yeah. So. That was a tough year for you. Two, thousand fifteen. There was an article in business I think business insider, and it was about the sales team. It's October that year and it was. It was some allegations that you know Pete member sales team using adderall even cocaine they were under immense pressure. They were working all the time when you saw that article. And I'm not saying you even aware of any of this. You may not even aware of it but I. have to think that that article really alarmed you and and maybe even embarrassed you. Look A. There were a number of articles in two thousand fourteen fifteen. Didn't absolutely get everything, right but Budweiser I can say is that At. The time doctor had their sales team and we're. Getting very quickly and Your maybe maybe. Too focused on. L. Hitting targets and. Not. Focus enough on creating a strong culture the I hear these stories from six years ago from from time to time and from from now from candidates and and really every time. This happens like a Gut Punch. Because, this we know we're completely different company now. On on so many levels, but clearly, you saw that in new that you had to change something. While yes, I look I l there's a there's a couple of things about this. Right? We are a technology company, but we had said ourselves up too much about. Instead of writing wins and really too little about being adaptable and darning and and building the trust required to try things that now pet the risk of failure. and. So one of the first things I did is to change core values. You know to emphasize those behaviors each one of our values adaptable, not comfortable and other one is progress before perfection learners before masters right and. We only kept really one DIA CONSTANT DEL patients I. Personally that. That was more of the culture that I thought was right for Doc to succeed on many dimensions. So, you take over the company it's got high valuation, but you're still not making money and you know that you've gotta change the underlying business model you're never gonNA make money. And from what I understand this is the beginning of what you have internally described as the second founding of the company. That is right. That is right and that basically happens in in two thousand, eighteen you you launch this new business model where instead of the the dollar membership fee. Basically, you would charge doctors a lot less like two hundred or three hundred bucks, but then every booking you, you would take a cut from that booking. So like a travel agency. A little bit charge for new patient booking. So the existing patients to practice we made free but yes, there was the fundamental idea and. It sounds like such an obvious thing to do but but here's the problem with it and why why are we thought it was incredibly risky to try this. Our best customers that had been on for a long time. They got lots of pockets right and if we start charging them per bookings, their prices go up very significantly in some cases ten times more and that seemed. Competing, insane to us. In. Particular because when we talked to other companies that were at gone through similar changes and even pricing experts, they're number one advisor was make sure whatever you do never charged your best customers more and frost would be precisely. The opposite. In the thing that was counter-balancing this in our mind was well, maybe we'd be able to bring on a lot more doctors because the barrier to entry is now much lower that was there was the back and forth in the team to figure out whether that's the path we want to want to go. So, this is still a risky strategy because you're depending really on new bookings because the two hundred dollar annual fees dramatically lower and I have to imagine in year one, you actually saw drop in your revenue in the year one of of this curve. Second founding. Right. Well, it's from a risk profile worth at that. Right the warriors that you lose all your best customers in with it, all the bookings day used to be getting. and. So we needed to be ready for a very significant drop in bookings and revenue and the second Challenge was here that. The beauty of this approach modest and we got all this money upfront right and Sharon. Now to bond, we're getting paid after the booking with with a thirty day payment periods, we had a huge working capital requirement to make that happen. So did you see a drop and revenue in two thousand eighteen when you rolled this out? No we didn't because we actually didn't see the doctors leave the way that we hit on -ticipant did in fact, you know while we had very much worried that they would be upset and some of them certainly were upset. We were providing so much value to them that. You know what? What took you. So long I knew as getting a great deal all along. So that worked really well, and we had piloted in Georgia initially in April. Two thousand eighteen and then that had worked. So we we then all allowed in Colorado a few weeks later that work to, and from there we went to Washington state and again, very positive results and after these three days. Okay Great. We know this works does it out in our largest most important market? Let's go to New York and that and terribly horribly wrong. They the doctors in New York. Not only were so pissed off they actually I read. mounted a change dot org. Petition I. Don't know what to to to end this practice or something. They were really mad. They were really really mad and I guess you guys responded you said, are we won't we won't roll this out in New York for a while. Yeah look in New York. We. Facilitate Roughly, one in five new patient doctor relationship in the entire city on dock and so. The economic impact for the providers in. was much greater than for the providers in Georgia Colorado Washington. So yes, to give you one example, there's a dermatologist and so and he paid under the ultimate model ten doctor say paid thirty thousand dollars and under the new pricing model, his cost was going to go up from thirty thousand dollars to roughly three hundred, forty, thousand dollars. Wow. So what was your response to that? I? Mean it seems like a pretty reasonable. Concern. Yeah. So look after the conversation with the Dermatologists I. Actually. Put down the phone and I thought you know what? He's right. And so I pause and we regrouped and. We did a couple. Of things during this time, like the first one is we just went on a listening tour. You know we talked to provide their feedback and we just adjusted our this plan to give providers a much longer grace period to decide whether the wants to addition to the new model or not, and then. So then we read on New York six months later and and when dramatically better. So the strategy works and you see results from the strategy pretty quickly like within a year. Within a year, we had we finally at some incredible momentum was really going better than we had expected in our wildest dreams. Our existing client went down to essentially zero. I mean people still retire and and move jobs by no one really left the service and we were adding more and more providers because the barrier to entry was low and So in two thousand, nineteen we began growing profitably. It sounds like two thousand and nineteen was really the banner year. Two thousand nine hundred was a was a fantastic year and honestly we had so much momentum coming into twenty twenty and feel like, Hey, we worked really hard for three years and profitable and now the sky was the limit until. Tells Sam until March of two thousand twenty. Two Marjo twenty twenty and that's. That's really maybe the third founding DOC right? Well, I want to ask you about March twenty twenty because. Your Business is based on people booking with doctors and going to the doctor I have to imagine your revenues must have plummeted like every other industry like I mean doctors offices are still in most of the country. Slow or are trickle of patients coming in. With the lockdown started happening we saw impersonal bookings declining anywhere between fifty to ninety percent by the end of March I'm not surprised and lot of that buys I was getting was to. Lay off people and make sure that we hunker down to weather the storm but I saw an opportunity to build windmills, right so I thought well, we need to be there for our patients. We should be expanding into telehealth and I need every team member to help me do that and so we. Really went all important and supporting video visits and I'll probably June eighteen began redesigning the tire marketplace support virtual care, and so we actually released. Doctor Video Service and we made this available to. Any. Physician whether they are on soccer. for free. And by the way head, you plan to do this. How long would would I mean I'm imagining if you said in in February district I really want to focus on telehealth Would you have expected that by May would have been ready to go. Absolutely. Not I think what has been really fantastic to see is how? We really finished two years of roadmap in two months. Wow, and it's great because it's just gives us a window on what the next phase of doctor will be and really looking forward to that in my mind were the point were Amazon started from going. Books to also adding CDs. We have just gone from doing only in person to also A. Doing telehealth and I can't wait to see how this unfolds. It sounds like you. Might be reading between the lines but. You. Really, admire and respect your co-founders particularly. Cyrus and the work that he did to to build this company but I wonder if do you think that you will a I dunno, rekindle your friendship i. Is it something that is in the cards because a break is? Is Emotionally, it's hard Mesa really hard. Yeah, look I Do I think we'll work fourteen hours together again maybe not but you know I I've gotten through tougher breakups and reconciled in my past, and so I think we are we're in good shape and honestly know we are meeting were talking from time to time Yeah. We both have things to do and places to be so we're. Not, hanging out all the time. But it's now also five years ago So We are we're merch focused on making our join the baby successful. When you think about your journey and All Its happen to you how much do you think this has to do with? with luck and how much do you think it has to do with with the hard work you put in your your skills. Well I'm going look I I believe that there's really three ingredients to success. In order importance there are lock the talent, then hard work and. The only one. That's comedian. You control his how hard you work right and Now working hard to gives you more shots on goal It helps his day on the top of what you your talent allows and absolutely restarted at the right time the right place. So What what I'm proud of an all that journey has only that yet when we were wrong and when be had to revise and. When we needed the grit to actually make it work. I L we lived up to that and and that's really The all that anyone can ask themselves to. Oliver Karaz co-founder of Zach Braff by the way, remember how they originally wanted to call it physicians dot com or doctors dot. com. COULDN'T AFFORD THE MILLION DOLLAR PRICE TAG to buy the domain name. DOC DOT COM wasn't only available the price they paid for that domain name. Six Bucks. and. Thanks so much for listening to this show this week, you can subscribe wherever you get your podcasts. You could also write to us at H. I. T. at NPR DOT Org. If you want to send a tweet, it's at how I felt this or at Cairo's can also follow me on instagram that's at Guy Dot Roz. Our show was produced this week by Jet Anderson with music composed by Tina. Bluey. Thanks also to Julia Carney Candice Limb Neva grant and Jeff Rodgers I'm guy. Roz even listening to how I built this. This is NPR. Black voters play a crucial role for any Democrat who seeks to win the White House but some big devise amongst that block and some serious influence
Paypal, Banks and Real Life Infrastructure Inversion
"When the hit reactions were dramatic CEO of Wyoming based Avantis Bank and passed on the showcase on long tweeted game on USOC sees announcement that it's following Wyoming allowing national banks to custody digital assets is great news for Crypto long-overdue, and hopefully we'll help the US regain ground. It lost to other developed world countries by dilly dallying for so long winters, equal customers and crypto venture capitalists. This will spur emanate boom as us. Banks acquired digital asset custodians, and that was only the first two of her twenty four tweet storm on the topic link in the show notes for those who missed it. In other parts legal mind mark, Coyne hoarder, and passed on the show Preston Burn tweeted I've never been more bullish on crypto today crypto lending, and saving maybe how the payment of interest becomes thing. Again, thanks are desperate for yield the faster they move the more market share there will obtain lawyers and bankers are definitely excited. But why does this matter and what is it mean? Jonathan let's start with you today. Well looking at it from my perspective of someone who's tried to do startups in the for some time, the largest filter that is a had versus half not versus based on the technical or Business Acumen. Or Merit of your company is to do with getting a bank account and keeping a bank account and being able to even have customers in every state I mean the whole point about the bit license was the fact that banks were refusing to service customers of people running crypto startups. So what this does if? The executions being the statement says it is is it means that we're going to enter an age where crypto startup can actually have a bank account in America and actually be serviced and not just be a crock in or a Gemini or Aucoin base, but actually be three people you know asking for bank services. So you know the government tends to break your legs and then ask you to thank it when it gives you a crunch and it's really glad to see that at least now, they're giving entrepreneurs a crutch. Because like spin broken for a very long time hang on. I'm a bit confused here because this regulation is about freeing up the ability of banks to directly custody Crypto, and at least what you're saying seems to be more about whether banks are allowed to extend. Fiat. King Services to crypto companies why do you think the two are related one of the purposes? As to why money transmitter licences became such a big deal for crypto services is that the act of transmitting your token your value instrument is itself currency or is considered a value transfer, and so banks would onboard in dollar terms the ability for people to get crypto. But if you actually wanted to engage in crypto related services with Crypto you yourself had to. Take. That on, get a custodial and become a money services business because there weren't any financial service providers that would do that for you, and so there are a lot of projects that I know of that have lodged. That are in existence that can't even deliver the tokens to their system to people because they're waiting for money transmitter licences because the act of. Giving it to their customers would be considered money transmission, and so I think that we become so blinded to think that banking means crypto banking for crypto means the dirty Fiat side of it and not the awesome crypto side of it and a lot of the crypto related activities now can be done natively by a bank, which means that as a small startup. Become a bank. I don't have to become a crack in order to be able to do trivial thing I wanted to do with bitcoin or a colored coins. So I, just want echo that on the one side our experience on the show with trying to have a bank account. Well, we've actually been d platform because the word bitcoin is in the name right and that was for a while fairly controversial, and then on the other side of things, the work that I did with token Lee we often found ourselves without the ability to have a credit card processor because even the. Idea of touching tokens that were non speculative in nature that did not have prices that could appreciate. Well, that was still something that was on the other side of we know what we're talking about right and so you had banks that were just wildly uncomfortable with this and even the high risk tolerant ones you know the ones that specialize in dealing with really kinda sketchy applications, even those oftentimes wouldn't deal with noncontroversial uses of. Tokens and sort of anyway. So just the clarity that. So long as a company is following, the law banks can interact with them that I think is a pretty major statement and a major change from the way the banks have at least behave to this point. We'll see if they actually do anything differently with it but I think again, we're going to talk a little bit later about kind of the pay pal announcement and Sort of this shift that we've gone through where Crypto was on the one hand kind of in the very early days, people would adopted or companies would adopt it and get kind of an earned press boost, and then that went away for a while as things got boring. Now we're kind of on the entire other side of that curve, but we're going to have that conversation for just a little
Natalie Portman among A-listers bringing pro women's soccer team to Los Angeles
"Natalie Portman among those launching women's soccer team in Los Angeles to highlight heroes that are women by an m peterson of the associated, press. Actress Natalie Portman and venture capitalist. Karen, Nordmann lead a group that will bring an expansion national women's Soccer League team to the Los Angeles area in twenty, twenty two. The team tentatively named Angel. City will bring the League to eleven teams. Louisville AFC will join the nine current. NWS L. Clubs next season. Portman. Nordmann are joined by gaming. Entrepreneur Julie Erman. The consortium President in the majority female group others involved include actors, evil Longoria. America Ferrara, Jennifer Garner and Ouzo a Deuba. Tech Entrepreneur and Reddit Co founder Alexis Oh Hainian the husband of tennis star. Serena, Williams is the lead investor through his firm initialized capital. Portman Nordmann and urban all have a financial stake in the team. I think it's so important to have role models and heroes that are women for kids both boys and girls to see, and it's just such an incredible sport in that it really is a team Sport Portman, said in an interview with the Associated Press. You see one woman success, and all the others are cheering her on because one woman success is the whole team's success among the founding group are more than a dozen former players, including mia a ham, Abby Wambach and Julie Foudy. Other female business leaders. Portman said she heard Wambach. A former US national team. Forward speak at a time is up event and started thinking about how female athletes are regarded in society. Then she and Nordmann met Becca Rue, the executive director of the US Women's National Team Players Association. We started going to games, and we just got so into it, and it was just kind of a revolution to see my son and. And his friends, these little eight year, old boys at the time wanting to wear their REPEA-, no jerseys and Alex Morgan Jerseys I was like. Wow, this would be a different world. It wasn't unusual to them at all. Portman said there were hints that the group was coming together last year when Portman Gardner Longoria and other celebrities went to a national team exhibition game at L. AFC stadium before the World Cup. The women also reached out to a local supporters group that has been campaigning to bring a team to Los Angeles. The plan is to bring on additional investors as the team takes shape. We knew that there would be a strong and passionate supporters group here to support this and from there it was about. How do we do this in the right way? How do we do this differently Urman said? The group is partnering with the La Eighty Four Foundation. A nonprofit formed after the nineteen eighty four Los Angeles Olympics that promotes youth sports. Angel City also announced its formal support of the foundations play the fund aimed at helping kids in minority and underserved communities. We believe these players need to be playing on one of the best stages in the world, but we also know that we have the power and the platform and the voice to make a meaningful impact in our community. Erm, said, and so it's important for us to do that from day one in the same way that we are building to put eleven incredible players on the field from day one. The NWS cell, which began play in twenty, thirteen was the first professional team sport to return to action in the midst of the coronavirus pandemic with the challenge. Cup, tournament, in Utah, the semifinals are set for Wednesday. The official name of the Los Angeles Club and where it will play are expected to be announced later this year. The growth trajectory of the NWS L. is incredibly exciting, but we also need to be strategic and thoughtful about how fast we expand and the communities. We partner with and W ESL, commissioner. Lisa Baird said in a statement Tuesday. We've long sought the right partner in L. A. Considering the NWS L. Fan base that already exists in the region and the massive interest in women's soccer in general.
Capital Allocation with Blair Silverberg and Chris Olivares
"Blair and Chris Welcome to the show. Thank, you good to be here. We're talking about capital allocation today and I'd like you to start off by describing the problems that you see with modern capital allocation for technology companies. I'm happy happy to start there. So I think it might be helpful to give. The listeners, a little bit of our backgrounds so I was a venture capitalist at draper. Fisher Jurvetson for five years I worked very closely with Steve. Jurvetson and we were financing are very MD intensive. Technology projects that became businesses things like satellite companies companies that were making chips to challenge the GP you new applications of machine learning algorithm so on and so forth and I think the most important thing to recognize is that the vast majority of technology funding does not actually go to those kinds of companies. The venture space is a two hundred fifty billion dollars per year investment space. The vast majority of the capital goes to parts of businesses that are pretty predictable like raising money in in investing that in sales, marketing and inventory or building technologies that have a fairly low technical risk profile, so the vast majority of tech companies find themselves raising money. From a industry that was designed to finance crazy high technology risk projects at a time where that industry because technology so pervasive you know really do the great work of of many entrepreneurs over the past twenty to thirty years, technology is now mainstream, but the financing structure to finance businesses not has not really changed much in that period of time. Yeah, and then I guess I'll talk a little bit. My my background is I came from consumer education sort of background, so direct to consumer, thinking about how you use tools and make tools that ingrained into the lives of teachers, parents students I was down in the junior class dojo before starting capital with Blair. We were working on the Earth thesis He. He was telling me a lot about this. The the date out. There exists to make more data driven in data rich decisions. How do we go software to make that easy to access in self service and sort of servicing the signal from the noise, and we kicked around the idea and I thought that they were just a tremendous opportunity to bring. What Silicon Valley really pioneered which is I think making software that is easy to use in agreeing to your live into kind of old industry fund raising capital Haitian. The kinds of capital allocation that exist there's. And debt, financing and different flavors of these. Of these things say more about the different classes of fundraising in how they are typically appropriated two different kinds of businesses. So. You have the main the main groups you know. Absolutely correct, so there's. Equity means you sell part of your business forever to a group of people and as Business Rosen succeeds. They'll get a share in that. Success and ultimately income forever. Debt means you temporarily borrow money from somebody you pay them money, and then at some point in time that money's paid back and you all future income for your business, so equities permanent, not permanent. If you think about how companies are finance like. Let's take the P five hundred. About thirty percents of the capital that S&P five hundred companies use to run. Businesses comes from debt. In the venture world that's remarkably just two percent. And the thing that's crazy is this is two percent with early stage seed companies, also two percent with public venture, backed companies in places like the best cloud index, which is like a one trillion dollar index of publicly traded technology companies started their life, and in with injure backing many of them SAS companies, these companies, also just two percent finance with debt, but nonetheless within these these classes, the reason it's obviously economically much better for a business and pretty much every case to finance itself with debt because it's not. Not It's not permanent, and it can be paid back. It's much much cheaper to use debt. That's why you buy a house with a mortgage show. You know you don't sell twenty percent of your future income forever to your bank help you buy a house, but the reason that people use equity comes back to the risk profile so just like. If you lose your job and you can't pay off your mortgage. The bank owns your home. Same exact thing happens with debt in so restorick Louis, if there's very low. Certainty around the outcome in typically early stage investment you're you're doing a lot of brand new are indeed you have no idea if it's GonNa work you cope. You know over time that you'll be successful, but there's really quite a bit of uncertainty equities a great tool because you're. You'RE NOT GONNA lose a business, you know everybody can basically react to a failed. Are Indeed project. Decide what to do next had saints. Equity is kind of the continent tool for high technical risk, high uncertainty investments, and then debt is basically the tool for everything else, and it can be used as most companies do for. Ninety percent of The places that businesses are investing so if you're spending money on sales and marketing, and you know what you're doing and you've been running campaigns before. That were successful, very. Little reason you should use equity for that if you're buying inventory if you are a big business that's. Reach a level of success that on. Means you have a bunch of diversified cashless. Coming in businesses might take out dead on business kind of overall, so it's less important what specifically you're using the money for, but it's important to recognize that most companies are financed roughly fifty fifty equity versus dead, just just intra back companies that. That are kind of uniquely Equity Finance. Scaling a sequel cluster has historically been a difficult task cockroach. DB Makes Scaling your relational database much easier. COCKROACH! DVD's a distributed sequel database that makes it simple to build resilient scalable applications quickly. COCKROACH DB is post grass compatible giving the same familiar sequel interface that database developers have used for years. But unlike databases scaling with Cockroach DB's handled within the database itself, so you don't need to manage shards from your client application. And because the data is distributed, you won't lose data if a machine or data center goes down. cockroach D is resilient and adaptable to any environment. You can hosted on Prem. You can run in a hybrid cloud, and you can even deploy across multiple clouds. Some of the world's largest banks and massive online retailers and gaming platforms and developers from companies of all sizes, trust cockroach DB with their most critical data. Sign up for a free thirty day trial and get a free t shirt at cockroach labs dot com slash save daily thanks to coach labs for being a sponsor and nice work with cockroach DB. The capital that is being steered towards a recipient. It's often originating in a large source, a sovereign wealth fund or family office in it's being routed through something like capital allocators cater like a venture capital firm for example or a bank. How does this capital get allocated to these smaller sources? What is the supply chain of capital in the traditional sense? You know it's kind of funny to think about capital and things like the stock market in the form of a supply supply chain, but this is exactly how we think about it so at the end of the day. Capital originate. In somebody savings, basically society savings right you. You have a retirement account or your population like you know in in Singapore and Norway with a lot of capital, it sort of accumulated from. From the population and these sovereign wealth funds, or you're an endowment that's you know managing donations of accumulated over many many years, and ultimately you're trying to invest capital to earn a return and pay for something pay for your retirement pay for the university's operation so on so forth so that's Capitol starts, and it basically flows through the economy in theory. To all of the economic projects that are most profitable, inefficient for society, and so, if you step back, and you think about like how how is it that the American dream or the Chinese Miracle Happen? You know in in both of those cases different points of the last hundred years. Why is it that society basically stagnated? You know the world was a pretty scary. Scary place to live in up until about seventeen fifty, the industrial revolution started. Why is it that you know basically for all of human history? People fought each other for food and died at the age of thirty or forty, and over the last two hundred fifty years that it's totally changed. It's because we have an economic system that converts capital from its original owners. Diverts it to the most productive projects. which if they're successful, replace some old more expensive way of doing something with newer better way and so I think when when I described that like you know I, think most people can step back and say yeah, okay I. kind of see how capital flows through the system, it goes automatically to someone making an investment decision like a venture capital firm ultimately gets into the hands of the company company decides to invest in creating some great product that people love. Let's. Let's say like Amazon and then everybody switches from you know buying goods at some store that may or may not be out of you know may or may not being stock to the world's best selection of anything you'd never wanted. The most efficient price that's society gets wealthier basically through these these kind of steps in these transformations, but it's asking if you step back and think about it like nobody actually thinks it's processes as efficient as it could be like. We asked people all the time. People were interviewing journalists companies. We work with sewn. So how efficient do you think world's capital allocation is? I've never met a person that says it's pretty good. You know we're like ninety percent of the way there. In fact, most people think it's pretty inefficient. They think of companies like you know we work, and some of the more famous cases lately of of Silicon. Valley back businesses that that totally. underwhelmed disappointed. Their initial expectations and I think most people admit that the efficiency of capital allocation is either broken or nowhere close to achieving its potential, and so we basically we'll talk more about our technology and how we do we do. We basically think of this problem our problem to solve. There's an incredible amount of Apache inefficiency in how data that goes from a project or a company, ultimately funneling up to an investor flows, and so you know it's hard to place blame because there's so many people in the supply chain, but. But I think it super clear that if it's difficult to measure whether or not a project or a business is good at converting capital into value in wealth, and you know products that people want, it's nearly impossible for society to become really good and efficient at allocating its capital, so we're we're here basically to make the data gathering data transformation visualization communication of what's actually going on under the out of business as efficient as possible and you know from that, we thank some great things are going to happen to the economy. Goes a little bit deeper on the role that a bank typically plays in capital allocation. If you think about our bank works like let's take. Let's take a consumer bank that most people think about you gotTA checking account. Right, now you've got some money in that checking account. That account actually takes your money or dot and most people know this your dollars sitting in that account. You know just waiting around. You'd withdraw them. Your dollars are actually rolling up into the bank's treasury. There's somebody at the bank working with the regulators to say hey, how much of this money can we actually put into things like mortgages, commercial loans, all of the the uses of capital that society. Has In some some effort to. To, move the world forward and make the economy efficient, and so those deposits basically roll up into a big investment fund, and there's ratios that regulators set globally that say those dollars needed to be kept in reserve, versus how many are actually able to be invested, but with the portion that's able to be invested. It's there to fun. You know building a house to fund a business back -Tory to fund sales and marketing or inventory procurement for some other business, and so a bank was was basically the original investment fund, and a bank has unlike venture funds and other sources of. We typically think private capital. The bank has tricky. Problem were any moment all of the depositors holding the checking accounts could show up and say hey. I want my money back and so that's why banks have to deal with reserving capital predicting the amount of withdraw and classically everybody wants her money at once at the worst possible time, and so banks have to deal with quite a bit of volatility now if you take an investment fund on the other hand. Totally totally different structure, so your typical venture fund will have money available to it for a period of ten years from you know typically these larger pools of capital. We talked we talked about so very rarely. Individuals are investing retirement savings in venture funds, typically sovereign wealth funds down that's. Basically pools of that individuals capable. Win One of these funds makes a commitment to a venture fund. It'll say you've got the capital for ten years. You've gotta pay back. You know as investments exit, but other than that will check in ten years from now. We hope that we have more than we gave you the star with and there there's no liquidity problem because the fun has effectively carte blanche to keep the money invested until some set of businesses grow and succeed and go public and make distributions so one thing that's fascinating. The Tappan in the last twenty five years is private capital capital in the format of these kinds of funds. Have just grown tremendously and so today. There's a little over five trillion dollars. Of private capital being allocated in this way to think like buyout funds venture funds so on and so forth. Funds don't have the liquidity problems of banks. They can make much longer term for looking investments. This is created tremendous potential to make the economy more more efficient by taking out the time spectrum. You know this is why venture investors can do things like finance spacex or Tesla. Really. Build fundamental technologies in the way that a bank never could so this is an amazing thing it. However leads to a very long. You DAK cycle, so the incentive goes down when you take out the time line over which investment needs to pay back. To carefully monitor and understand what's going on in the business day today, so it's pretty interesting thing about the different pools of capital. There's not not to. Make it sound too confusing, but I think everybody will admit that the financial markets are incredibly diverse complicated we track basically about fifteen different kinds of capital, and they're sort of pros and cons with each one, but you know a bank is one. A private fund is wanted insurance companies balancing as another. You've got things like ETF and public vehicles that hold capital so there's quite a bit of complexity and the the structure of the financial markets. All right well. That's maybe the supply side of Capitol on. All kinds of middlemen and all kinds of different arrangements, but ultimately there is also the demand side of Capitol, at least from the point of view of companies getting started which is. Startups or computer in later stage with the maybe they're not exactly considered startup anymore, but they're mature. These companies have models for how they are predicting. They're going to grow, but oftentimes these companies are very. Lumpy in terms of how their their revenues come in how closely their predictions can track reality. So how do technology companies even model their finances? Is there a way to model their finances? That actually has some meaningful trajectory. Sure so first. Companies you know need need a base think of all the places that they're spending our money and. We're pretty. We Do I. Think a pretty good job of organizing this and making it simple so when we look at companies and we can, we can talk more about how the the cabinet machine operates, but when we look at companies, we basically think they're only a handful of places of money. Get spent you spend money on. Short term projects that you hope proficient things, sales and marketing. Houston money on paying for your sources of financing like paying interest on debt, making distributions to your investors, and then you spend money on everything else and everything else can be designing software building products on, and so forth, and so if you break the demand for capital down into just those three buckets. And look at them that way. Some pretty interesting things happen. The first is for the short term investments that you hope productive. You can track pretty granular nearly whether or not they are, and we'll come back to that. For paying back your investors, you sort of know exactly how much you're paying your investors so a pretty easy thing to track, and then for the operating costs you know most people will help us. Apax, that you're paying to keep the lights on things like Renton the your accountants, the CEO salaries on and so forth these are these are table stakes expenditures. You need to stay in business and so. Amongst each of those three things, there's different things that you wanna do to optimize and I'm happy to go into more detail sort of go through each one. If you think that'd be useful. Yeah Bliss a little bit more about about how these companies should be a modeling, their revenues are that is meaningful to model their revenue so that you can potentially think of them as targets for for capital allocation so. If we think about. Understanding what company might be a viable recipient of capital? How can you accurately predict the trajectory of that company, or or do they? Would they present a model? Would they develop a model good through a little more detail? How a company would serve justify? It's need for capital. So typically what what most companies do and this is not terribly useful or accurate, but I'll tell you what most people do I mean by the way like how central the entire economy predicts, predicts demand for capital works like this. Companies take. Their income statement on their. Balance Sheet historically. And they they basically have this excel file got a bunch of you know, rose and have different things like my revenue, my you revenue that sort of linked or my expenses that are linked revenue Mukasey could sold so on and so forth, and they grow each of those rose by some number that they hope to hit so if you want your revenue to double next year, you'll say my revenue one hundred dollars today I wanted to be two hundred. Hundred dollars twelve months from now I'm just GONNA draw a line between those two points and every month. There will be some number that's on that line, and that's why monthly revenue I want my expenses. You know everyone knows. Expenses are going to have to go up if my revenue goes up but I don't want them to go up as much as my revenue, so I'm going to draw a line. That's you know somewhere less than a doubling. and. You pull these lines together on one big excel file and there's your you know they're your corporate projections. In general, this is true for big companies small companies, but that's not actually how. Company revenue works because if you go back to the three categories, we talked about before, and you just focus on the one that talks about the short term investments. The. Way Company Revenue Actually Works is a company this month. Let's say they spend one hundred dollars on sales marketing. Well. They're hoping to get a return on that sales marketing, and so they're hoping that in the next you know six months. That's paid back. Twelve months that's paid back. You can actually track every time they spend money on sales and marketing. how quickly it gets paid back so it's that level of precision that can accurately predict revenue, and so what we do is we basically just get a list of every time? Money was spent on one of these short-term investments, so you sales and marketing for for an example, and then we get a list of all of the revenue that was ever earned. And we attribute between both of those lists causing effect. And we do that using a bunch of techniques that are pretty commonplace in your typical data, company or machine learning company. We use some math things like factor graphs. We use simple kind of correlations. We have You know a whole kind of financial framework to. Guess. What attribution should be because you learn a lot as you see different businesses and you see a bunch of different different patterns, which you can basically cluster on, but it is this linkage between spending on something like sales and marketing emceeing seeing revenue, go up or down, but makes or breaks a business, and you want to look at it and I is. Not a bundled. Entirety which is how financial projections are typically built? Okay, well! Let's talk a little bit more about what you actually do so if you're talking about early stage technology companies. Describe how you are modeling, those companies and how you are making decisions as to whether they should receive capital. When a company comes to capital they they come to our website. They sign up for this system that we built which which we've called the capital machine. And the first thing that they do is they connect their accounting system their payment processor typically, so think like a strike, and then sometimes they'll provide other things like a pitch deck or a data room, or whatever other information they have prepared. The system pulls down. All of the date in the accounting system and the the payment processor, and we look at other systems to these are the two key ones that all all dive into detail, and so, what ends up happening is from the accounting system. We get a list of all the times. Businesses spend money on these things like sales and marketing that we were talking about before. From the payment processor we get a list of all the revenue transactions in crucially we get it at. The level of each. Each customer payment, and so you know we scrub I all we really care about is having a customer ID, but once we have data at that level. We can start to do this linkage and say all right look. You know this business spent. A million dollars on sales and marketing and March of two thousand eighteen in April of twenty eighteen, and we saw revenue grow by twenty percent. That was a pretty substantial chain. You know what actually happened here. You can typically identify the subcategories of sales and marketing and start to do this link between these two, and this is really the you know the magic behind our our data science in our team pairing with our engineering team to figure out this problem and solve away that is, that's robust. Bud once we have these two data feeds, and the system goes through, and does all of these attribution. Populations were able to present that back to accompany a pretty clear picture of what's going on, and so we'll say things like hey. Your Business is pretty seasonal, and in the summer is when you're typically more more efficient at converting your sales and marketing dollars into growth so I, you want to finance growth in the summer. The second thing is only about eighty percent of your businesses financeable. There's twenty percent where you might not know it because you're not looking at this level of detail, you're busy building your business, which is exactly exactly what you should be doing, but Twenty percent of your businesses, not efficient. You're spending money on on your sales and marketing categories, product lines, and CETERA that just shouldn't exist and so if you get rid of those. If you double down on the part of Your Business, it is efficient. Then we predict your revenue will be act fifty percent higher, and we'll tell you exactly how much money you need to invest to raise money to to raise the revenue by fifty percent. We give you a bunch of charts that allow you to see how history and projections merged together and dig down. Inspect how we do that linkage to make sure you agree, but. This is what the capital machine does at its core. It Converts Company data into a fully audited completely transparent picture of. How business works where it sufficient where it's not efficient. And then that's where our technology stops, and where balanced she comes in, and so we then take this information, and we make balancing investments directly in companies, and so primarily at this point we lend money to technology companies that we see from their data are eligible for non dilutive funding. We make capital available to them directly. We basically allow them to access it through the capital machine. We use one system to communicate changes to the business. No keep both sides and form so on and so forth, but this is the kind of analytics layer that's essential to making these capital allocation decisions more efficient, and so I think you could imagine a day at least for us in the not too distant future when it's not just US using our balance sheet in this tool to make investments, but in fact, just like excel, every investor can benefit from a similar level of analytics and transparency, as can companies by getting more accurately priced faster access to capital less friction so on and so forth. Get Lab commit, is! Get labs inaugural community event. Get Lab is changing how people think about tools and engineering best practices and get lab commit in Brooklyn is a place for people to learn about the newest practices in devops, and how tools and processes come together to improve the software development life cycle. Get Lab commit is the official conference. Forget lab. It's coming to Brooklyn new. York September Seventeenth Twenty nineteen. If you can make it to Brooklyn, on September Seventeenth Mark Your calendar, forget lab, commit and go to software engineering daily dot, com slash commit. You can sign up with code commit s E. D.. That's COM MIT S. E. D.. And Save thirty percent on. Conference passes. If you're working in devops, and you can make it to New York. It's a great opportunity to take a day away from the office. Your company will probably pay for it, and you get thirty percent off if you sign up with code, commit S, e. There a great speakers from Delta. Airlines Goldman. Sachs northwestern, mutual, T, mobile and more. Check it out at software engineering daily Dot Com slash, commit and use code. Commit S. E. D.. Thank you to get lab for being sponsor. The inputs specifically if you think about a model for determining whether or not, a company should should be eligible to receive capital. I'd like to know how the the models are built. The the data science models that you're building are constructed from the point of view of the inputs. So how are you determining or how do you like company comes to you? How do you turn that company into some structured form of data that you could put into your models and determine whether it's worthy of capital. Yeah I mean it comes down to what what the data is your down so when we talk to a system like striper transaction records system, you know that that's the revenue of the company now where things get interesting when we connect to balance sheets in penalizing, it's of accompanying really onto understanding. Weighing. What exactly these numbers mean, and that sort of where we made our pipelines were built from the ground up to give us that granular. Of A company's cash family revolutions. Where's the money going where they allocating? And it's savable greenway or you once. What do you understand that data through that Lens? That let's build pretty sophisticated financial models Linda. And you know as soon as you have the picture of Company You can really do a lot of flexible analysis on the back leg distributed computation. Come stuff that you would never be able to excel and quite frankly a lot of these companies don't have the stacking internally or really the tools to understand for themselves, so you'd be surprised it you know when we surface this analysis back to the company by virtue of just being transparent on how we're making decision how it is perceived their business, the signals that were uncovering. These operators the CEO's the CFO's that are really focused on building company. Really surprising. They're really making these insights really transforming. How they think they should have capital. Should invest growing business. Are there any? Sources of Third Party data that you can gather to improve decision making. There are at a macro economic sense, and so it's actually quite useful to look at public company performance and say hey. SAS businesses in general. Most people notice, but facilities in general are seasonal in the fourth quarter. Budgets basically expire and people come in, and they buy a bunch of SAS. Software and so to take concepts like that basically shapes of curves, signals and apply them to private company. Financials is useful. Crucially though there is no private company. Data repository of any kind like it just doesn't exist, and you know notoriously even even with small businesses. It's actually quite quite difficult to get access to any sort of meaningful credit data, and so, what ends up happening is these aw. These businesses. Give you a picture of their business directly as an investor and you have to interpret it directly, and that's basically how this works totally unlike consumer credit, there's no credit bureau that people paying so most investors are analyzing the state and excel. Excel notoriously breaks when there's about a million cells worth of data, and so we've got this great visualization showing our data pipeline, and it's basically a bunch of boxes, and there's a little tiny. Tiny box in the bottom of corner that's excel, and there's a bunch of other boxes across the entire rest of the page that are nodes in our in our distributed computations, but accelerate very very limited, and so it makes it impossible to actually understand what's going on in business from the source data, and it's at the source that you see this variability in this linkage between profitable capital allocation decisions in unprofitable capital allocation decisions. Describing more detail, the workflow so a company comes to you and they're going to put their inputs into the. Would you call the capital machine? What does that workflow look like in a little bit more depth? Yes when they come to the website, they creighton count much like you would on. Twitter facebook account. When your details your email, you terrify your email, and then you on what's recalling like the capital portable on there? You have et CETERA. Tools to connect your sins record and these are typical offload. So you know people are very familiar with you. You know you say hey, let's connect by quickbooks you in your credentials and sort of be as secure way, and you click okay and the system checkmark by your quickbooks in the system start pulling that data out of regular cadence and. Depending on what system you're connecting you of the characteristics of that's not go systems of record, and how much data you have you know. The data's available anywhere from ten minutes to a couple of hours later and you know once we have Dr. System, we run that through our partake analysis pipeline in the users as a company. You get you get charged. In Tableau kind of call it, the insight Saban's these refused that we think would be helpful for you as an operator company understanding about Your Business in separately. We also get views of that data that are useful to our our internal investment team. Whoever is looking to capitalization systems? Are there certain business categories that are a better fit for modeling in better fit for the kind of. Predictable capital returns that you can, you can expect with the investments that you're making so like you ride sharing or Gig economy businesses or some businesses. What are the categories that are the best fit? Say Very few categories don't shit from the from the perspective of of linkages, but they're certainly models at their easier to think through and easier to understand, but our our system can underwrite today A. Lease on a commercial aircraft, a fleet of ships and Insurance Agency ask company the most important. Thing about our system is that the financial theory that underlies it is very general, just like p. e. rate is very general, and so that's kind of sounds crazy like. A lot of. A. Lot of people say what what businesses the best fit for your your system and you know it's kind of like asking what businesses the best for Warren Buffett like Warren. Buffett is a generalist. In any business, and he has a framework in his own head to figure out how to make ship comparable to American Express our assistant has a very similar framework. It just operates at the level of transactions instead of at the level of financial statements, but certainly within. That framework there's some examples that are just easier describes I think like you know thinking through the fishing of sales and marketing something. That's a lot more obvious than thinking through like the stability in refurbishment of commercial aircraft parts, which is a key question you know. Pricing pricing refurbished parts, which is a key question if your financing commercial aircraft and Our team, the ambassadors that use the capital machine internally which we primarily do internally do a little bit of partnering with without the groups to to use this as well. These people are all specialists in some particular area, but it's crucial to understand. They're looking at the exact same chance as all the other specialists and all the other areas, so it's like literally the the Fast Company and a commercial aircraft will have the same series of charts at investors. Are there two two draw their conclusion? Is the question for Chris. Can you describe the stack of technologies that you built in more detail? Yeah Yeah. Of course on the front, we are react type script, xjs, you know everything is on aws, and in the back, and we're. We're all python, and in really the reason for that is if you're doing any serious machine, learning or data science today can't really get away in python stack, so we're all python them back in. We have flasks. As a as our API late here and That's the that's a high level. And get a little bit more detail about how the data science layer works. Yeah, yeah, yeah, of course, so we put on the dea into basically a data lake the that goes down into Ardito pipeline in that's all air orchestrated on top of each called airflow, and we use a technology called desk for are distributed computation, and I think that this is a good choice. Choice for us at this moment you know I see us doing a lot of work on. You know using a spark in other distributed technologies in the future and his team and it turns out that when we pull this data down organizing the data was really important to us as we build a lot of attractions to make accessing that data, really easy for quantitative analysts. Important central to our whole technology is that we're able to do a lot of different financials experiment very quickly on top of this so the the implications of that really cascade down all the way into. You know what technologies where choosing how we structure our delayed. Even even how strokes are teams, so it really is brought up locations across all product. How is it when you're analyzing company that you have enough data that it warrants a spark cluster because I can imagine? The financial data around the company. How can there really be that much data to analyze how you do surprised in a lot of these transactions systems taking up the companies have been around a couple of years and their direct to consumer. These data sets can be can be pretty large. You know we're talking about in the millions and millions and millions of transactions that were pulling down and storing. Storing and that just on a per company basis. You know that's not even talking about if we wanted to. Benchmarks Cross companies, and also if we want to do scenario analysis, so you know one of the things we was part of a pipeline is take this data, and through like nine ninety nine hundred thousand simulations to understand the sensitivity of different variables on the performance of Your Business and If, you're starting out with starting that already large. Sort of a multiplying effect. On how much data the system is the old process? is you go through those different stages? And, can you tell me a little more detail? What would a typical spark job? Look like for a company that you're assessing. Yes, so first episode is ribbon. Our our financial didn't ingestion parts, so we download something on the order of you know forty fifty bytes of Tim's action data for for a company. We have to do all the work to interpret and understand what that means in reorganized that data in a way that are downstream analysis and primitives can. Make sense of and use for useful analysis so really the first step at this point job is is transformed the datum some it's useful, and then there's all the work on what are the clusters in order to machines and analysis in the computational. Resources needed to run simulations. You know not not just say local computer locally owned of fall over the only about thirty to sixty four gigabytes of Ram what league, so that's where workflow comes in creating easier faces into data, clusters and being. Should you know when you run a job? You know when it fails. You know it's done. You know when the team can't okay. This part of analysis done I had intermediate date asset to do more analysis on now get back to work is a lot of the time we spend developing internal tools to make. One other thing that'll mentioned that I think's important is. A lot of the underlying technology in our data pipeline it's no different than like what a tableau or you need. Traditional BI business would have access to, but what's fascinating when you have a vertically specific domain so financial data in our case you can make a lot of interpretations about the date of the let you do much more intelligent things, and so for example we. Don't have to make your own charts as a user of the capital machine. We make all the charts for you can of course. As a business we work with. Give us ideas for charts. You can mock up your own. We we basically have an interface for for business. The I team's to to write some code if they if they want to bought when you have clients who are thinking about financial risk, financial attribution across all of the companies that we see distilling that down into a series of indicators that are detailed, but generalize -able, and then publishing that back to all of the companies that use the capital machine to run their own capital, allocation, decisions and access, external fundraising and capital. Some pretty amazing things happen in so it's only with a vertical view. You actually having these we, we call our data scientists Kwan's, but but actually having these people who you know typically are graduate level economists, thinking for the first time about using transaction level data in their analysis, which is notoriously not not available to to normal economists that you get the kinds of insights and analysis the actionable for businesses, and then in terms of the data pipeline that then means we actually store a bunch of intermediate data that's opinionated in that way, and that makes it much faster to access much easier to benchmark much more useful across a network of companies, versus just that isolated excel model that. Explains only one business. One thing I'd like to ask you about. Capital intensity so there are kinds of businesses that are capital intensive for example where you have to pay upfront for a lot of ridesharing rides, and you know as Uber or lift. His has known in much detail. You allocate all this capital two things to subsidize rise because you try to win a market, there's all kinds of other capital intensive businesses. How does capital intensity change? What makes sense with regard to the equity financing the debt financing that you are shepherding for these companies? That is a great question and be because of where you focus in your audience. You totally get the most financiers don't so. The first point exactly like you said. Capital intensity means a business consumes a lot of capital. It doesn't mean a business has a physical factory or plant or railcars, so it is absolutely true exactly like you said that there are a lot of tech businesses that are incredibly capital intensive. If you are capital intensive business that means UNI especially if you're growing, you need to raise a lot of external capital, and so it is even more important that your capital or a big portion of your capital base is not dilutive. That's that's just essential. Table stakes because what you see with these businesses, the ride sharing companies are great. Example is by the time one of these things actually goes public the early owners in the business on a very very very miniscule. KEESA that business, still if you contrast that to company like Viva Systems which I think is one of the most capital capitol efficient businesses in venture history, I think that this race something like twelve or fifteen million dollars total before it went public in a at a multi billion dollar market cap. So capital intensity. Is a synonym for dilution your own way less. Than you think when you exit entities even more important that you figure out a way to raise capital non ludicrously upfront. Some broader questions zooming out in in getting your perspective. Do a thesis for what is going on in the economy right now where you look at. The fact that We have. Obvious pressures to. Reducing the size of the economy through the lack of tourism, the lack of social gatherings while the stock market climbs higher and higher, and it appears that the technology side of things is almost unaffected by Corona virus is there. Is there a thesis that you've arrived at or or their set of theses that through conversations with other people, you've found most compelling. Sure the most important thing to realize about the stock market is that it discounts all cash flows from all businesses in the stock market to infinity, and so the value, the stock market about eighty percent of the value. The stock market is. Pretty far into the future like more than three years from now, and so if you believe that the current economic crisis and this is why there's always a. At least in the Western, world, last two hundred fifty years after an economic crisis. If you believe the crisis will eventually revert, and there will be a recovery, then it only makes sense discount stock market assets by anywhere between ten and twenty five percent. If you believe businesses fundamentally going to go out of business because of this crisis, that's a different story, but that explains why something as terrible as Kobe nineteen and a pandemic. Only discount the stock market by by roughly thirty thirty five percent in a in March, but that's not what's actually going on today as you mentioned and so stock market prices now have completely recovered. That is something that we think is a little bit of out of sync with reality but I. I mention you know we're not. We don't spend too much time about the stock market beyond that we just look at you. Know Private Company fundamentals. We try to understand what's actually going on in individual businesses across all businesses that are network to see what you know what we can understand, and you know what kind of conclusions we can draw, and so if you take that Lens and you actually look at what's happening to businesses due to Cova nineteen, it's fascinating. Some businesses like think the food delivery space have gotten a lot more efficient, so those businesses lot like ridesharing businesses back twelve months ago, there was sort of a bloodbath between bunch of companies competing in local markets to acquire customers all all fighting Google and facebook console, and so forth you subsidies drivers, etc.. That's essentially stopped. These businesses incredibly profitable, the cost acquire customers has fallen by more than half a lot of cases. The channels were slot less competitive, and so if you're running one of those businesses. Now is a great time to be aggressively expanding. Weird things like commercial construction businesses. They're actually a handful businesses that we've seen do things like install windows and doors and commercial buildings whose businesses have accelerated because all of these buildings are closed down. Construction project timelines have gotten pulled up. All of these orders are coming. Do in they're you know sort of rapidly doing it solutions? There's obviously a bunch of other businesses have been that have been hurt by by the pandemic, but our general thesis are we've studied. Pretty detailed way the Spanish flu in nineteen eighteen, you know. These things eventually go away. There will be a vaccine. Economy will get back to normal, and as long as we can stay focused on working through this as as a society and of maintain our our fabric of of kind of economic progress then. DESAGUADERO values today will eventually make sense just sort of a question of of win for the stock market, and then if you're if you're actually running business in thinking about your own performance in isolation, really being clear about is now the time to invest and grow my business now the time to be very careful with my expenses interest, get through this for the next year or however long it takes for there to be a vaccine. So the way to think about your company, if I understand correctly if I was to to put in a nutshell, is that. I think of you as a data science middleman between large capital allocators, and and start ups deserving of capital, so the the sovereign wealth funds the banks the I guess. Funds of funds. These kinds of sources are essentially looking to you for guidance on where to direct the capital, and you're on the on the other side, absorbing data and creating opportunities from these startups to source the good directions of that capital. Just wrap up. Would you put any more color around that description or or refining anyway. Yeah I mean I. think that at the core of what capital is is where the. Core Technology Ambler of sort of. The private market if you think about public markets today, you've clearing-houses like the New York Stock Exchange, and you have companies that provide analysis on top of that like Bloomberg, you know we see a tremendous opportunity to shift the paradigm where you know the place where all the financial transactions happen. is also the place that collects the data improvise information for those making these decisions and yeah, so I think capitals really at the center of making a transparent technologically enabled financial marketplace. Guys. Thank you so much for coming on the show and discussing capital, and I guess one last question is. Do you have any predictions for how capital allocation for startups will look differently in five ten years? Sure so! The first prediction. And this is happening now. I mean the the infrastructure is. In place both within. And others. Most startups fairly early in their life. Think is equity only way to do this and. So. That's a cultural shift. That's that's already happened. People are starting to ask that question. The second prediction is. Seed and series a funding will be entirely unchanged. After series. There'll be a bifurcation between businesses that. Are Really. Capital intensive gigantic rnd projects think like SPACEX. The series, B. C. d. e. enough are really about building and launching a rocket. Those businesses will by and large not. Turn outside of equity to finance themselves, but there's very few of those businesses. Pretty much every other business businesses that you see raising a series B. Serie C. Will like any normal business in the entire rest of the economy raise maybe half of that capital nine allegedly either in the form of debt. Royalty financing factoring all of the other instruments that normal companies use to finance themselves in the void delusion that will happen roughly three years her. Now that'll that'll kind of we'll see obvious obvious signs of that from very early very early base, and then the final the final thing is. Steve Case talks a lot about this. With the rise of the rest, he's got this great venture fund that invests explicitly outside the coast, so kind of the rest of America and we've seen that there's there's a pretty dramatic distinction between being a coastal business non-coastal business from capital access perspective, but there's no distinction from an actual performance perspective, and so we'll start to see some of the regional. Differences in bias sees around where capital flows, go away. And so I would maybe put that on a five year timeline like raising capital is actually much more predictable, much less biased, and that's great back to the beginning of our conversation. That's great for the economy I mean every project or business that can convert capital, two products and services that people love should get finance. No questions asked doesn't mean it doesn't matter what the color of your skin is. What background you have whether you went to college didn't go to. College doesn't matter. You have a business with data that can prove whether people love it
"venture capitalists" Discussed on Access to Inspiration
"I'm sue stockdale and welcome to the access to inspiration podcast the show where you can gain inspiration from people who may be on a like you've we hope their stories insights in it'll you to transcend day-to-day challenges and reflect on what you are capable of achieving today I'm speaking to Alexia Silverberg on what it's like to be a silicon valley venture capitalist, welcome to the podcast Eliza. Thank you for having me very honored. When I was looking at your profile. You seem to defy stereotypes because you're really multitalented. What got listed here today? Lumpur Venture Capitalists Data, scientists, Lee qualified actually -nology investor and I'm sure many things sides. But how would you describe yourself to us? I'm someone that's thought. It was little and I've done my very best most of every opportunity, so while my resume looks like it has a lot of things I think it all made sense as I was going through this journey that I just embraced what was given to me and made the most of it, and we're very grateful, and that's taken me on a very interesting rollercoaster. I'm proud of, but mostly point guard grateful. All Lot of people supported me along this journey, so it almost like a little bit of an explorer that whenever opportunity comes along, you want to explore it to its maximum. Absolutely I do see myself as a modern day venture I think it started with my late father, who also had a very interesting, and I grew up I. Think a lot of time being told I dream. A lot of people didn't approve. That's been insatiable. Quest for knowledge and learning, and I think that means that I'm constantly awesome questions, constantly curious and constantly learning to grow in apply. See where that takes me, so it's been an adventure very much so. Now I know you were brought up in South Africa. Eliza tells about what that was like for you. You talked about your father already, so give us a sense of what child was like for you. Up until my father died childless, okay, my father, a very interesting life, and he looked all over the world he was a pharmacist by training and did extremely well spoke. Many languages owned the oldest costume store in South Africa and I grew up in their costumes thal which makes very interesting I. When he lost the way, it was very sad, we lost everything and it was extremely difficult, based brutal, because for the first time my life I realized that we may not have a roof over our heads remain like that's how bad it was, and it brought out the entrepreneur me, and I started only companies from a very young age and just making. Making the opportunities that were available to me in the sense that I started a tutoring school. When I was ten years old, a my brother was trying to help me save family business I used on money I had from a tutoring school to go to Asia and to buy stock and I was basically negotiating containers to bring them back to South Africa so that we could sell the stock when I was like eleven twelve years old, so that was quite the journey I always had a passion for education. My family was very very very obsessed with that. My grandfather was British and he was. One of those mathematicians could add ages of numbers. Head that was A. WE shared a love for mathematics, a love for learning and he was the personal I was close to growing up, so the sooner combined with entrepeneurship was something I knew from selling my dad shaw so throughout my childhood in South Africa was. These combinations of these things and I just kept bowling staff a lot of time. I never knew what I was doing in the sense that I never called myself on trump new. You know like a lot of people here in Silicon Valley. Find themselves. I was an entrepreneur, thirteen or fourteen I. Wasn't I was a survivor and I knew there was a better world out there because we'll the books I read and I wanted to be part of that will often. It was very lonely because I was rea- extremely no quite new. It's do with me at school I was. and. No one knew how to deal with that. In the sense that I wanted to study these hard core subjects. I was very isolated I was very lucky. That I played the cello piano. I was torched by the same teacher that taught Yoyo Ma and Jacqueline, the break and I was extremely lucky to be talented at these instruments since we give me opportunities to learn these. These instruments because I spent a Lotta time at music rooms dumped by myself. We I would practice which creates more disciplined, so it all creates it foundations where I was brave to go this journey around the world, and that's I started very young disciplined was a big part. Yes, certainly can get a sense of that in what you're saying and also that resourcefulness to make the. The Best of what you've got up time. As you want to begin to expand and Uber looking for something more than what you were experiencing, Kosta what to the USA originally, it was to Canada. We lived in a very dangerous pot Johannesburg. I'm sure if anyone in your community and always anything about South Africa. We kept our family home as results will, but we used. Used to have robbers almost not basis. You know to break into the house. It was like we got attack where we will help I was shocked at I've got a scar to this day. I will miss, watch my mother die. My grandmother was attacked when I was very young, there was a court case. It was awful and I had in my head I wanted to. And the one attack the one that spoke about with my mother, it was absolutely the stock. You don't come back from an our embassy. Standing screaming peace and I go to Canada these Canada. My family was there and I wanted to go and study, and it was hard because it was the first time I'd been separated from umbrella. We were a unit because that's how we survived for so long off the news and my dad and I went to Canada and opened is to what it was like to live in a country desk, so much was at your disposal. I remember going to the bank I was fifteen years old at the time and. And I was like I want to open accounts on him. I'm an entrepreneur and how to go about this. Someone is thought of business. And they took each meet with the bank manager and sat me down. They treat me so well. I was like this strange. I've never experienced anything like this. In South Africa way, there was always discomfort with people being on trump newes, especially a student Senate that journey Canada really really is and really made me think. Wow, this is incredible. You WanNa. Start a company you go to the small business administration, and there's just information available for everything. This funding available everything this core. You can talk to experts to talk. Talk to very successful business owners, and really made me think very catchy about how well companies and how I could apply to both my to what I did as is always helping other trump news. That was always an obsession, because I was so fortunate to have had the Hawaii Ed, so it was always like. How do I share this information with other people like me? And so that was the Canadian part of the journey I went back to south. Africa because I felt incredibly grateful, full opportunities that have.
Women are perceived to become liabilities the moment they become mothers. And that's just not true
"You know I grew up in the Philippines. I had really strong female role models my mother my grandmothers. We had a female President Corazon Aquino when I was growing up and I grew up as an empowered girl you know part of the Ywca of Manila's one of their team leaders. When I was thirteen and a started organizing leadership conferences for girls when I was eighteen and then so when I left the Philippines to come to school I left Venus. This empowered girl and then I went to Mongolia College. Which is the first ever and oldest college for Women in America which has a strong tradition if educating female leaders that would change the world and right out of college and I was working at Goldman Sachs. I was sparked of launching the Investment Banking Women's Network for Goldman and so all of these experiences. Really you know allowed me to appreciate the importance of having strong female role models in women leaders all around. I think there's a surprising number of similarities. I also grew up with a very strong mother. Who set a wonderful example of how to work hard and achieve your dreams but also have a clear opinion and share that I also went to an all women's college so Wellesley and it was a really powerful example for me to see all the leadership roles filled by women because that was just the assumption. Why wouldn't the leadership refilled by a woman? I think couple of differences. I grew up in a lot of other countries. As well you came from the Philippines. I I grew up in China for three years in Japan in Ecuador and France and so seeing gender equality quite differently in all of those countries and comparing that to the United States was a real surprise for me it was it was so different from country to country in China for example. There's a saying that women hold up half the sky and that struck me as clearly women would would have half of the opportunities would be just as strong and through both school but then also work and now I have three young daughters six year old and almost four year old twin girls and so I care about gender equality even more But this has been with me from his as far as I can remember. We NEED TO ACCELERATE GENDER EQUALITY. So we can have it in your daughter's life exactly that quite a bit actually at the rate we're going. The whole world stands to benefit if women participate in the economy identically. Demand according to Quinlan's research at McKinsey it would boost the world's economy annually by twenty trillion dollars. That's the size of China and US economies combined. It's all countries align their gender equality efforts with the progress made by their most impressive neighbors. The world's economy could grow by eleven percent that's twelve trillion dollars. A remedy for inequality is a daunting task and it starts at home from the United States may seem like a developed nation but the United States for the last decade has been ranking in the twenties to thirties and the global gender gap report and so there is a lot of progress that needs to be achieved and one of these areas is an economic empowerment so the gender pay gap still persists here in the United States. The gap has narrowed since nineteen eighty. But it's been stable over the last fifteen years and as of last year on average women have earned only eighty five percent of what men earned and based on this estimate. This means it would take an extra thirty nine days of work for women to earn what men did. As of last year there is also the perception that this gender pay gap is imaginary. The latest survey shows that around half of the men believed that there is no gender pay gap so this is very much like half of the men are denying climate change. You know. It's the same principle of denying Ariel that exists which makes it even more problematic to solve when we think about the intersection of race and gender gap. It gets even worse with African American women getting paid the least on average a second area around economic empowerment for women as access to capital for women. Women receive less than ten percent of venture capital funding and ever ge US women are starting more and more companies access to capital is not as easy for women as it is for men. If you're a woman of color the probability that you'll get funding from a venture capitalist is less than one percent so there is a lot of work we need to do around economic empowerment women.
"venture capitalists" Discussed on Boss Files with Poppy Harlow
"When you look at the broader Pie. So what are your thoughts on that people in this country have have enslaved us have burned. Our cities are thriving cities to the ground. And still we rise and you have people like Ridge. Danilo you have people like Oprah you know. We'll go there you have Our friend advice to equities. These are billionaires. I'm talking about. I think that there will be A multitude of black and Brown investors Black and Brown. Millionaires billionaires successful founders. And so much more so much more Over the next ten years and I I feel that same that same feeling. I felt about five years ago when I was on the cost of starting backstage and I saw so many amazing companies founders who are simply being overlooked and I was saying then that by twenty twenty I was going to invest in a hundred of them and people thought what people laugh me out of rooms. We've seen more than six thousand today. Reached one hundred companies in two thousand eighteen. There are so many amazing companies that are led by founders of color but. I think that they're still underestimating. We are still underestimated. Can you talk about the scholarship? Work that you'RE DOING THROUGH OXFORD. And also HP see us in what you're seeing results there. Sure I in the end of two thousand nineteen. I announced on scholarship program that I built my mother over several months into nineteen where we were going to launch by By giving a scholarship the first black scholarship for a black student at Oxford. Undergrad I was asked to come and speak a couple of times in the first time I was there. I was given this beautiful tour. Just a really wonderful tour and I thought wow this is something I would have loved to have gone to. And I didn't see I saw some but I didn't see enough. Diversity and I asked blatant bluntly I said where are the black people and they they exist. They're and they're they're trying. I truly believe that so knowing that I didn't go to college myself and that I was broke very recently that I had the ability through The different ways that have built my income I said I wanted to do something so that day. By the end of the forty five minute tour I said yes. I what I want to start a scholarship here at the same time I there are one hundred eight. Hpc's historically black colleges and universities in the United States and so for every Oxford I think they're absolutely needs to be a scholarship for a one of the HVAC US which is As as you know for building that foundation as well and we chose the first one we chose US dillard in New Orleans which is where. My mother graduated A few years ago and so we were able to announce that. It's it's called the ARLAN. Hamilton earlene Butler Sims scholarship. And we've got onto also back a black woman who is studying to be pilot in Greece and a black woman who is studying to be a sound engineer in New York. And we'll we'll make these scholarships The one at Oxford is built out for several years. So we'll add one each year and will continue to do what we can could for you. You talk about augmented privilege and it struck me. What does it mean to you? Well you have augmented reality and augmented privileged to me is What I've been doing the last five years I have been. You can call it siphoning you can call it observing emulating etc. I've been doing that for the privilege of other people whether it'd be men are white people or whoever is privileged in this situation. I just watch their behavior and and start thinking. What would a guide you in this situation? And once I started doing that I started getting more yeses than starting the Gauche eating better so I feel like I'm wearing you call it the iron man suit or whatever sue sort of power suit when I go into these rooms and I'm taking the representation of so many other people in with me and However however I got here I'm here and able to make certain phone calls may be able to make certain things happen and It is it feels like it's not a privilege that is innately mine but it is something that I'm definitely taking in our last few minutes I wonder if you could talk about and give advice to those listening about winning in a crisis because you said recently. I'm really here to win. And you've always that's been your mantra honey win. How does one win with their business with their ideas with their dreams in a moment like this which is so crushing on so many levels? The I'm here to win. I definitely want people to know that. I say that. I didn't come here for your crumbs. I think I have a different vibe to a lot of people though because winning to me is about Structuring a life. That is perfect for you So I feel like I win when I have when I can leave with integrity intact and when I can impact others in a positive way when I yes Come out on top when it comes to negotiating something. That's a financial because all of that really feeds into doing the thing that I want to do. Which is impact others? I put another way. I want to be a a wealthy person because I want to use that wealth for good and so Kind of repurposing. What success means is the first step of it of attaining it. What would you do? We've seen what some have done with their billions like bill and Melinda Gates and Warren Buffett in a number of others through the giving pledge what what would arlan Hamilton do with her first billion while I think a billion dollars is a ridiculous amount of money to have as one person so I would probably give like ninety percent of that would be going to other people and as many people as possible where there was impact and a great deal of that would be around entrepreneurship so that they could just turn that into more and more and more. It doesn't go into a void in a vacuum and and I'm really big too on on giving people that room to kind of have hobby and do things that they enjoy because as we as we see here right now in this time. They're only so there's only so much life. There's only a finite amount of time you have here and I want us to all enjoy every minute of it so I would. I would spend it that way you. You weren't such a different place. Arlen back in two thousand eight during the during the great recession. I was sort of just beginning my career at CNN and you are not even in the face. And I just wonder your thoughts as you look now at this What we're facing we're facing upwards of twenty percent unemployment according to the chief economist at the White House and were looking at a economic contraction possibly of forty percent in the second quarter. What how do you think this recession or what? We're looking at whatever it is whether there's a recovery or not is gonNa feel different than what we went through in two thousand eight. Yeah that those numbers take my breath away when you say them. It's it's really daunting I remember in two thousand eight. I was so far removed from anything when it came to finance financial Things that I didn't even know that I didn't really understand that there was a recession. I thought that I had lost my magazine that I had spent.
"venture capitalists" Discussed on No Limits with Rebecca Jarvis
"They, they hear the idea of Edger capital money, they think, oh, that's that might be a good idea because it's one that gets talked about so much. When is it company right for venture capital money for any idea, you can start with friends and family. I think the question is, is this a company that's going to need ten twenty fifty million a hundred million dollars to get off the ground and drive a large business. And if you want help in forming a business in strategically thinking about your business, if you want to create a really professional operation you, you probably want venture capitalist around the table particularly if you haven't done it before we, we have industry connections knowledge, but also just the basics about how do you develop a great business. And I think I think a classic example of not doing that is there knows because if you think about what happened to theranos, they had no professional VC's on that board. They had no one that was really spending time in vetting what they were doing and challenging management and keeping them honest truth lie. So this is Elizabeth Holmes. The founder of theranos dropped out of Stanford nightmare. Years old went to create the company, the company for those of you who are new to the idea of their nose. We've talked about it here on the podcast a couple of times, but theranos blood testing company. Her goal was to use a single drop of blood to run multiple blood tests. The SEC has now stepped in the department of Justice has is investigating, and the issue is that they were not at. They actually hadn't developed the technology that they were claiming to have developed. So that oversight, you believe would have caught something. Absolutely. But you have to get the venture capitalists to the table interested in order to have the oversight. And I, from my understanding, there are plenty of VC's who might have taken a look at their nose along the way and decided this isn't really for us. I think that that's true, but it isn't. It wasn't for them because she wasn't being transparent about what she was doing so that no one felt comfortable, I think at the end of the day with what she had. What did you first learn about their at house? Well. I had a funny experience. I about four or five years ago. I was doing an interview with Forbes and speaking at a conference that they had. I think that was two thousand fourteen Elizabeth Holmes was on before me, and I left my person the green room,.
"venture capitalists" Discussed on No Limits with Rebecca Jarvis
"And so and then the vision in which you saw, obviously all the way through to the iphone and an apse. It's just it was incredible. So that was a seminal moment where I realized I really wanted to be working with somebody as creative as that, and it's great to be in research, but your reporting on what somebody else's doing and it's great to be investment banking, but USA transaction, I just felt like I didn't wanna do once I'd done three app ios. I done three. I've ios, but the idea that I would be working with these entrepreneurs potentially working with these entrepreneurs in the future that grabbed hold of me so year and a half in, I just knew I had to be a venture capitalist. I wasn't the entrepreneur. I was more of the editor wanna help them be around these inspirational creative people that have a vision, but I say that is so he really was the inspiration for my career. You're lucky to have learned that so early. 'cause I think that's a lesson. A lot of us take much longer over the course of a career to fully realize. So once you knew this getting into venture capital is not easy. You know, you have to create a business like Google and then sell the business and then have enough money or have the the pedigree to actually go and and do venture capital. So what was your path? I think p because I got into the industry early, there wasn't as much of a list of what exactly your pedigree had to be, of course, having gone to Stanford. That was helpful because I knew people and it was really pure happenstance and passion around knowing I wanted to be in in this field. I Fortuitously and I think so much so much as the intersection of luck and will. And I had this conviction. I ran into a friend on the elevator who worked at any one of the major venture capital firms. Went out to drinks with him, told him that I I, this is what I had to do with my life. The very next day, the founder of oak the firm, I winded up joining on the east coast. He the individual I met with called the founder of oak and said, I am going. I've I'm going to be funding something called Victoria's secrets. And are you interested in and the founder of oaks had? No, I'm I'm not interested and. A catalog, but I am. I am looking for a research associate with the technology background, and he ended up saying, I've got the girl for you and literally three weeks later I moved to Westport, Connecticut. Wow. So he weeks that's higher by it was a quick higher the he happened to be on the west coast. The next week I the following week went to up to interview with the rest of the team and move the following week. And so I was with them for over thirty years and four years ago founded my own firm also called open oak HCFA is opposed to oaken Muslim partners. So I want to come to the decision in a few minutes about how you decided to found your own firm. But let's talk about looking at companies because I think there are so many founders out there..
"venture capitalists" Discussed on The Interchange
"Um and then others were you venture capitals don't invest in those sectors what are you doing nancy get a grip so that that was sam hard because you know you like to be these are people i've known for when i was a kind of vanilla venture capitalists some and um you like to think that you uh you know that they respect what you're doing so how did you handle that like what did you tell yourself to get past those kind of comments well we would always just go back to the first principles that were this this globe is burning up we've got to do something uh electricity and transportation are big culprits and so and the world will come around our point of view very soon did you get a chance to roll your eyes at them when our light a next tracker got acquired i was very happy i try not to dish it out at tell us who had the greatest impact on your career you mentioned a couple of the men who were early colleagues and maybe not mentors 'cause i know the term wasn't use as much fish yeah i would i would say that the boss that i referred to who who told me to go for it is name was dan case he was the the ceo of of h and q um and uh he he he had always helped me uh pursue my vision and he by telling me that that made sense for me to to go after that fun because i liked policy and i liked entrepreneurs and then he didn't just say that he convinced the the ceo of jp morgan chase that the time bill harrison that they should support you keep paying my salary while we tried to pull this off and jobs so he he matched his personal support with knowing how to using his status in the organisation to to kind of protect me he went to the sea of jp morgan chase and said financing to build this yeah this fund why i mean he he developed business reasons to do it.
"venture capitalists" Discussed on Happy Hour
"Um as whereas with carpool kariuki mean that was a cbs property that they the adopted with apple music um with the of the ap's i don't think that would that would have been made otherwise right like like they made their from scratch they they regain he was neighbor our production company she believed r company was shopping around different places and nobody picked up maybe maybe or maybe they had the idea and the than the higher the brushing company i dunno i mean it had seen lo and behold and yet the way that they kind of like phrased it was they were making it with the his son and suv madam circumspect of the time and then once they polling about with q and apple and import together then they brought zeller's hosted and stuff on board so that yes i think to make the the work you need a platform vendor on your side to to do it like you know shark tank you after investors right actually of a meaningful relevancy yeah yeah you had to have apple backing you so that your featured napster connect up with venture capitalists and stuff like that so i think they were production company looking random apple pollen rhythm to make it happen it wasn't it wasn't apples idea from the outset agents that's not how they seem to describe it right and then there's there's one that to me at the time felt like okay this might be the first miss of all these it it's the the documentary series called home that is going to be about the world's most extraordinary homes and the people that live in them the built them as well so this felt like before we had this conversation off lion i thought oh boys now is is taking a turn for you know in a in a weird space.
"venture capitalists" Discussed on The Tim Ferriss Show
"So first and foremost thank you for shepherding me even as you are quick study as much of a blunt instrument as i was into all of that but can you tell us about some of the responses from the venture capitalists these rejections like what happened can you tell us about a meeting of the name nails meetings go i don't blame him i mean i'd never made it angel investment for us from austin texas i had no network here i just show up saying hey ethic i want to be a vc and you know let's not as a result that's not as a very straightforward path and so you know i would call up sukhoi capital and say hey i'd like to interview for job core capital and that's just not how it really works it's so i have no animus towards anybody at like they probably you know they probably made the right decision at the time for will what they're parameters for see you have a characteristic it seems at least in the way you express yourself that i don't see in a lot of people and that is you sink to hold very very few grudges i don't think i've ever heard you express illwill towards anyone especially in this day and age when it's a rarity is that something that you've always had a bye bye birth or is that something you developed why is that it's a waste of time how did you learn that how did you embody this because if you.
"venture capitalists" Discussed on Under the Radar
"I probably not it's just it's hard to think about like it it's hard for people like us who don't usually do future uh bets on growth and figure and thinking like me will make money on this some day in the future like that's not something that we as india west developers usually do and that is how a large part of the industry works so heights property worth considering that as you can i mentioned the kind of said it was like analogous to a click of vc kinda model with the disclaimer that neither russia venture capitalists i think that's not a bad i did not abide metaphor you know in the vc world they know if you just have a big audience and more importantly view of growth that seems to be consistent or accelerating there will be a way for that to be valuable like you know even if it isn't immediately apparent even if you defer that value until later and sometimes in in many cases getting that growth is so important and so valuable that they intentionally defer any kind of modernisation just to leave the door is wide open as possible for people to come in and then a figuring out later down the road this can be worth something somebody whether it's direct or whether it's than being sold to someone else and then they figure out a monetize it or if it's if an never needs to be directly monetize at all in our there's lots of situations where where something has value to the people whom who make it or who fund it even if it never collects direct revenue.
"venture capitalists" Discussed on The Information's 411
"We knew of disease investigation from this summer and we need reported because we could and contextual is it and we realized that in this environment there is a very high risk of taking or a shaming people without really knowing if there is any substance to these allegations are we did on reported dan and then i managed to get dfjp on the record because of these facebook post now on on the back of of of that reporting i'm having a lot of kind of soulsearching conversations with venture capitalists many seem very surprised to see how widespread is disease shoes nanny seems care dead at any body can now who have less beef with them could take to facebook and twitter an an attack them and destroy their reputation and this is kind of ironic because the beast they fad with their own financing social media company is is there are becoming victims of their own creations then and until now he was a bit the media too if you asked that technologies the dole the old debate between median social media they always tip side of of of social media because they created that and it's a great you know returning investment in now they're becoming victims of that and where what role do we pay we report the news however we want to be very careful what was astonishing is that the if jay was not prepared to to tackle a crisis from a pr point of view and now and you know we don't know yet what i mean they haven't unclos investigation it has been ongoing for moms and we'll stay but it takes it takes i mean us or other outlets to report it to bring it for more than just see no social media post in of the company really has to respond to right i mean like i don't know the specifics of how the story went down but so if you know this person had made just a facebook post i don't think the company would have publicly posted a rebuttal to it right i mean they gave it to us because we were doing this larger story so still takes media you know involvement for this to breach a point where action needs to be taken publicly.
"venture capitalists" Discussed on The Energy Gang
"That sort of six cents to really pick up and and you need to it you know i think venture capitalists fall into two categories one thinks that the team is the most important and the chemistry of the team and integrity of the team in the other thinks that the market in the technology are more important and the ones who think the team is the most important there in my camp because it there if things don't go right they'll figure out what to do whereas if the other group of things don't go right that the whole team me blows up right so that that you know but now i think venture capitalist fallen either those two camps the but you know i i read greentech media stuff and so that's my current i could say a lot of things about venture capitalists that i they you out the i probably probably why if there's any audience as far as the team and focusing on the team in investing in a team did you feel like you always had the right team whether times like the team needed to drastically chain earlier well i mean we did end up making considerable changes in the team and um but part of the problem was when we started everybody in the company was from academia nobody had ever had a real job mommy my only real job was building boxes when i d i turned down to pull the mud off a drill bit so.
"venture capitalists" Discussed on The Interchange
"That sort of six cents to really pick up and and you need to it you know i think venture capitalists fall into two categories one thinks that the team is the most important and the chemistry of the team and integrity of the team in the other thinks that the market in the technology are more important and the ones who think the team is the most important there in my camp because it there if things don't go right they'll figure out what to do whereas if the other group of things don't go right that the whole team me blows up right so that that you know but now i think venture capitalist fallen either those two camps the but you know i i read greentech media stuff and so that's my current i could say a lot of things about venture capitalists that i they you out the i probably probably why if there's any audience as far as the team and focusing on the team in investing in a team did you feel like you always had the right team whether times like the team needed to drastically chain earlier well i mean we did end up making considerable changes in the team and um but part of the problem was when we started everybody in the company was from academia nobody had ever had a real job mommy my only real job was building boxes when i d i turned down to pull the mud off a drill bit so.
"venture capitalists" Discussed on The Information's 411
"Look this topic of uh the treatment of women in siliconvalley is broad in i think couldn't be more important and uh there's been a lot of grape reporting that come at it from so many different angles from the start up office cultures from what's going on over to the challenges of raising money of is a female entrepreneur and and what read was on to with his reporting was something that was also interesting which was i'm really this grey area between entrepreneurs and venture capitalists who their meeting with to try and get funding and uh it's not something that exists within a company so it's not covered by internal sexual harassment policies and and also there's a lot of grey area to it in terms of um what behaviors uh male vcaesar doing and and even how the women perceive those behaviors and the impact soi thought this was a great opportunity to shed some light on something that was really important but incredibly challenging to nail down because again it exists in an area where um you know different people miami interpretations of things and and more importantly where um you know these women who experienced this it's not the top of their list to talk on the record in fact umfor reasons that only became more apparent as we continue to report the story and and saw um you know how fiercely binary and called backward rejecting some of the reporting that the sort of had to be told him with the was much credibility as many facts as possible so you always a credibly excited to be going down this path and and you know it was just very challenging and a at every step of the way to really try and get as much as possible on the record and that was ultimately what from my perspective.
"venture capitalists" Discussed on The Tim Ferriss Show
"And the her tale is the origin story of most greet startups so if you're hearing a course of knows you should look for other signs that you're onto something i believe that the best ideas often appear laughable at first glance most entrepreneurs here a chorus of knows as they get started and you have to expect it in fact it's not just when you get started because in the beginning it could be a handful of prospective customers then it's venture capitalists then it is maybe in private equity folks and that investment bankers and so on and so forth potential suitors it goes on and on and on so you have to expect it have to condition yourself to deal with it read says that these knows can actually be a very good thing and particularly in the beginning you don't want everyone to say yes and here's why the first truth of entrepreneurship and investing is that the very big ideas are contrarian because the in is part of the reason why a bunch of large companies and competitors haven't already done it why bunch of other entrepreneurs have an already succeeded at it and so that leaves the space for the creation of something and degrade something big you have to have that initial space for example in the early stages of google it was searches a terrible way of making money in advertising because advertising his time on site and what a search do it shuffles you off the site is fast you can go that's not a good business model so like an air and be it's like oh someone's going to rent a couch her room from someone else who were the freaks on both sides of that transaction so all of these things have a similar quality very smart people will tell you there's no there they're so it can be a good thing to hear a lot of knows to get those rejections but sometimes your bad idea is just a bad idea so how'd you tell.