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How to Motivate Yourself to Build (Notes from Jan. 27 to Feb. 2, 2020) July 22, 2020

Posted by Anthony in cannabis, DFS, Digital, Draftkings, education, experience, FanDuel, global, Leadership, medicine, NFL, social, sports, Strategy, Time, training, WomenInWork.
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Nope, I’m asking. Not telling. It’s constantly a challenge.

Let’s see. A will to win. Certain things provide you a much clearer picture of an end goal. In life or careers, there is often always a next step for those that are driven. I know many people that have said it’s not a linear path, and therefore you see steps/ladders that may be uneven. It’s hard to take that into consideration to pursue action, then, especially if you’re back at square one. It must be some secondary motivator that keeps us looking forward.

I have an idea page of things I want to pursue. Talking about potential pursuits may be a first step. Talking with others, another. Writing them down allows a concrete step toward accountability. Then, what’s next? Talk to potential customers, people in the space, people that could be of interest. Design something, wireframe or code out a rough sketch. Maybe it’s something to see how much of a concrete idea it is. Ideas sometimes just need another opinion to spur passion – whatever can provide the spark to go further.

With a next step in a career, an idea written out for the next step can be a good thing. Approaching mentors or potential mentors or bosses (strategically) may be that step of accountability. The more people involved, the more likely that path could be disrupted as incentives to provide clear steps wane. The earlier you find that out, the better. It’s unfortunate but situations and circumstances can change on a whim for anyone, so it compounds with involvement of others. I’ve seen that time and time again with friends.

Now, I hope I didn’t discourage with that last paragraph. That wasn’t my intention. So, here’s some good news – work has become increasingly global with the progression of the internet / web, more so this year. There are more people online sharing, collaborating, open to discussion with minimal work except seeking the communities out. Tools are better organized and more broadly applied to help, and more people are generally sharing their experience for us to pattern match or adjust. Action is the step. Or asking what the action may be. Take it together.

  • Coach Paul Alexander, Josh Hermsmeyer (Wharton Moneyball 1/22/20)
    • If you pit OL vs DL – OL is more reliable, similar to pitcher vs batter and pitcher wins
    • Beane in Moneyball – didn’t have money to spend so he wanted to get shots at college players since they were less random
      • PFF using survival curves (as time) for measuring lines (from PFF data scientist Timo Riske)
    • 16 of 17 INTs for Mahomes has been < 5 rushers
    • Coach – more hand-oriented now in passing game than leg-driving or shoulders for the evolution of run blocking
    • Josh – turned his attention to music and predicting the first song for halftime show
      • Prop from last year – how long will the national anthem last?
        • Over time, singer spent on song increased (ARIMA model) and he looked at male and female but female was longer at end
        • Gladys ended up going over
      • Billboard is predicting JLo’s most popular song – 20% as Let’s Get Loud or On The Floor (books, too)
        • Acts don’t often start with the most popular song, they end it
        • Setlist.fm as going through common starts
      • Game plan to push as many in the box with the numbers advantage, force Jimmy G to beat them
    • Some quantitative coaching models at PFF and other places
      • Mostert as the 2nd fastest athlete in NFL at the line, behind only Lamar Jackson, by mph
    • Helpful to sit behind someone as QB? (Jimmy, Rodgers, Mahomes) but counters as Peyton (thrown in), Steve Young
      • Qb as living embodiment of the system, not necessarily ‘system qb’
      • When do we get a handle on a QB?
    • Owners as billionaires that earned money in a different industry and hope to be able to transition to teams
      • Experience may or may not come – putting right people in there, getting lucky with all of the processes
      • Little edges, enough chances and them adding up together to finally have success while living through the ups and downs
  • Ian Levy, Michael Hill (Wharton Moneyball 1/29/20)
    • Super Bowl week, Kobe Bryant death – Shaq statement and Kendrick Perkins clamoring for hatchet to be buried with Kdurant
    • MJ’s 3 and 2 years off and then another 3 – only had Scottie as the overlap of players
      • Kobe – 2 rings but 3 straight finals with Pau, sans Shaq, Lebron – taking some poor players and winning rings
      • Teams and styles that have changed to give credit to the great ones
    • Sac down 17 points with 2min 49 sec – broke a streak of 8,378 straight games of losses
  • Dr. Shaili Jain, Prof of Psychiatry & Behavioral Sciences, PTSD Treatment, author of “Unspeakable Mind” (Wharton XM, Future of Everything)
    • Father was a war vet & born in India, Shaili grew up in England and what she ever knew
    • Muted emotions, insidious infiltration of how people work, play and create beyond mind and brain
      • Infiltrates organs, independent risk factors for heart disease, cancer
    • Too many factors, 1/3 genetic (not on marker-level, though) to determine PTSD levels or exposure
      • Dose matters – more deployments = more likely, and cumulative effects
    • Average clinicians outside of VA have a tough time to diagnose & treat whereas vets and exposed know where they can see it
      • Adherence is much lower in people with PTSD and this is massively under-recognized
    • Last thing people want to do is talk to therapists – avoided trauma or be cut off, isolated
      • Health problems often make them lose control
    • Hippocampus is smaller in those with PTSD (not sure if it’s cause or effect), amygdala (part of brain that controls danger)
      • Lot of work done in epigenetics, learned behaviors and environment (followed moms that were pregnant during 9/11, escaped)
        • Work done by Rachel at Mt Sinai to follow their children based on biomarkers – PTSD in them/child
    • Her take – future is in prevention on three levels – primary, secondary and tertiary
      • Primary: prevent the traumas and crimes
        • Lots of people were starting programs that FELT like it worked w/o evidence or metrics for them
          • How do you train women to defend themselves effectively? If you have it, you can scale and replicate. Still need $
      • Secondary: before and after trauma – “Golden Hours” – can you intervene to prevent onset of PTSD?
        • Showing up in ER, instead of waiting for weeks/months/years when they show up to a therapist
        • Group out of Atlanta’s Emory University in the ER that did RCTs to show those that got prolonged exposure medicine improved
          • Cortisol recipients had less PTSD compared to those that didn’t – brain can heal quickly, comparatively
      • Tertiary: integrated care – 10 years prior, she ditched her other-campus psychiatry office to primary care
        • People show up in primary care, not often in specialty offices, attack head on
    • Treatment – first line, standard therapy would be talk therapy (prolonged exposure, EMDR – eye movement desensitization & reprocessing)
      • Focus on dismantling trauma, discussing the event
      • Biggest body of evidence for this being successful as first-line treatment, discussion capability without emotional/physical stress
        • Exposure exercises – measurable body response
      • Meds as second-line treatment (prozac and friends)

Failures as Public (Notes from December 30, 2019 to Jan 5, 2020) June 9, 2020

Posted by Anthony in Automation, Data Science, Digital, education, experience, finance, global, marketing, medicine, questions, RPA, Strategy, Time, training, Uncategorized, WomenInWork.
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In the book “The Rise and Fall of Nations”, Ruchir Sharma goes through the emerging and developing countries that have shown patterns in growth or stagnation. How do we see that they failed? How did they succeed? Was it spending as a percentage of GDP? Is it the change in political party? Infrastructure? Social services? So many factors are at play for a nation. And any that have risen have also seen falls. It’s the natural business cycle that we see happen in macro all the way to micro. Why do I bring this up?

Because it happens to the smallest business units like startups, as well as individuals. We can’t help it. Some of us hide the falls, others wear it on our sleeves, open. I think there’s a combination of good for both. I will say that more reviews such as Top 10 Startup Failures of 2019 can be interesting case studies.

Maybe it’s not the companies themselves doing the reflection, but instead outsiders. This is a review exercise that can be useful for any individual to provide thoughtful reasoning. Granted, there were likely other, unseen circumstances that created a downfall but the exercise still works to recognize a large event like that. If more people see that through a lens, we would expect some growth overall. That content creation drives more people to start their own things. And that can only be good.

On to the notes!

  • Seth Juarez (@sethjuarez), Microsoft cloud advocate (Data Skeptic 12/15/19)
    microsoft_empower_business_web4

    • ML: don’t want to write an algorithm because it’s too messy but use data to extract knowledge, use ML
    • “I don’t know how to do ML, so call an API” vs “I know how to do TF, PyTorch, Deep Learning-custom stuff”
      • Build in control things
    • Unstructured data into folder, word doc, picture, extract knowledge into an intelligent way (any set of files)
      • Making more intelligent Indexing with Skills
      • When a doc is indexed, an Indexer cracks open doc (text, images, metadata)
        • Skillset aggregates series of skills in step order to go through them (ex: sentiment of text, added to tree)
      • Very similar to an ETL but customized
    • Predictions inside PowerBI, for instance – ML on rows of data to show this
      • Azure ML ModelInsights – vary features and see how it affects the predictions
      • Hoping bad ML models don’t affect or bias other models
    • Video Indexer – upload video, take text out, show when different people start talking (pictures in a row, for instance)
      • Sequence of audio and pictures – can get sentiment with text
      • When you create an indexer, you marry it together with data storage (where files are) and the SkillSet
    • Skill-builders as Excel-jockeys – his interview with a Rotterdam woman Faelina and getting innovation there
    • His question: Ethics in AI – models building and make sure there is fairness in their generation
    • Azure Cognitive Search links
  • Greg Zuckerman (@gzuckerman), WSJ writer, author of The Man Who Solved the Market (Resolve’s Gestalt University 12/23/19)
    51xscjmkinl._sl500_

    • How asset management has changed after Renaissance book, how relationships have evolved since releasing
    • Was fascinated by buy-side investors, bewildered by trade ideas but over time, become cynical
      • 2 and 20 aren’t providing unique, much value
    • When you don’t have outside LP’s, you can do other things that you can’t otherwise
    • Trend following in clusters of stocks, not necessarily a single stock – baskets against each other
      • Unique methodology into one equities model
    • When you talk to Simons and others in the firm early, you’d think they’d be quants but not the case
      • Still human – family office still will look at the office anyhow
    • 30 pages of NDA, had issues when he was starting the book
    • Everything they have is pattern investing and trading, so this is a problem eventually changing
      • Sophisticated or others that have money in market, but happening gradually
  • Dr. Rhonda Patrick (@foundmyfitness), scientist (Kevin Rose Show, 1/1/20)
    fmf-og-image

    • Discussing Omega3, metformin, sulforaphane research
    • Published paper on phospholipid form of omega3 supplementation, DHA – found in marine sources
      • Interest in getting it to the brain – DHA that is bound to albumane
        • DHA-free fatty acid transported blood-brain by passive transfusion
        • Blood-brain barrier erodes as you age
    • Brain glucose levels as important for Alzheimer’s disease
    • Fish contain 1 – 1.5% of DHA in phospholipid form, whereas fish roe contain 70-75% (including flying fish)
    • More from a gram of fish oil (she takes 3g) and eating fish/salmon roe – Nordic Pure3 for Rhonda Patrick
      • High dose EPA can have issues with blood thin
    • Epithelia cancers vs blood cancers (in mice)
      • Much of metformin studies are based on Type 2 diabetics – lived longer after metformin with age controls
      • Physical exercise and metformin were not synergistic
    • Activation of pulsing metformin – half-life
      • Exercise activates and lasts 48 hours, metformin does 36 hours after last dose
    • During fasting, NAD levels increase
    • 36 hour monk fast
  • Roy Bahat (@roybahat), Head of Bloomberg Beta (20min VC 10/18/19)
    7efb1b0061d0a6d64bc0710262fa52b0

      • NYC / Valley with portfolio companies in Kobalt, Textio, Rigetti Computing, Flexport
      • Former co-founder at Ouya, new kind of games console raising over $33mn
    • “Messy career” where he ran a nonprofit in government in nyc, fortune 500 media company, started the company and now investor

    • This day – October 18 – started a third fund, same build as the prior 2 – $75mn, same thing and sticking to strategy
      • Fund size is fund strategy
        • In terms of valuations – company valuation as marker of VCs rating company, but that’s a mistake
        • Want to own as much of the few winners
        • Competitive lanes issue – every time you write a check, you lose out on other companies in the space in a category
    • Egg toss of trust – model to be careful, customer calls at the end
      • VCs that ask to talk to customers immediately – slow them down, could be out of order
      • When he met Ryan Peterson at Flexport, he was still a board member at his hardware company and could try it out
        • Flexport reached out easily and offered to help him with his freight of hardware and team member made connection to CEO
    • As companies become successful and grow quickly, expectations keep raising
    • Fear from 6 years ago was if the VC was founder-friendly – not going to screw you
      • Greylock led a Series A for a friend’s company because Reid Hoffman had said Greylock wouldn’t screw you
      • Most people now are behaving to nudge the company’s upward – at Bloomberg Beta, company is the customer
    • Investment decision making – speed of investment decision
      • They try to avoid asking about other VC’s in the process (but want to know if there are timing issues)
      • Their offers are encouraged to be shopped – lots of funds moving down to write checks
      • Concerned about Seqoia, NEA, other funds? Frustrated because they’ve lost a few but have won a few.
        • Had a founder called them after 2 years prior – shouldn’t have taken that money to convince you – nothing
        • Founder mentioned he could do the raise and turn to others and they’d know who it was
    • Dependent variable – valuation (not the independent variable as most think)
      • Fund has strategy, do you want to invest? Check size – determined by fund size.
      • Strategy is to know the ownership target. 10-25% (Valuation as a function of fund size and check sizes with the ownership target)
    • Ownership to build over time – bigger check – they own what they want to own the day they invest
      • He wants to be on the team the day they want to be on the team
      • Generally, if new investors are there, pro rata and investment is hot
      • First check – anyone can say yes – good accountability, avoid groupthink
      • Following checks – unanimous to follow on
    • Greater fool dynamic – if actions reveal that you prey on greater fools at later times
      • Viable strategy in the current market, but maybe not going forward
    • Boards at the earliest stages – pretty useless but has sit in Series B’s
    • Favorite book: Waters Shut Down, Darwin’s Dangerous Idea by Daniel Dennit, Ain’t No Making It – how to develop empathy
    • Founder secondaries – fan of this, most personal and important underdiscussed aspects of a company
      • Will drive the decisions of a company because the founder is distracted – many valuable reasons
    • Thinks the heroes that are set up in the technology industry now have too much power – mainly as a result of money success
    • Mistakenly believed that starting a company and investing in a company are similar
      • Completely different roles – wanted to focus on one of these
    • Scout programs – Bloomberg Beta has Open Angels – giving money to individual investors is awesome
      • Angels, dollar for dollar, are more valuable in the ecosystem – issues can be lack of transparency (money comes from X)
    • Most recent investment – founder named Max Sinkhov – business help close businesses on home purchases
      • Title insurance States Title – validation that the owner in fact owns the home – super big before a website
  • Arvid Kahl (@arvidkahl), founders of Feedback Panda (The Indie Hackers Podcast, #140 12/16/19)
    announcementpanda-400x400-1

    • Him and girlfriend are founders of Feedback Panda, 2 years to $55k MRR and sold it
    • Commuted from Hamburg and Berlin 3 times a week – 2.5 hours each way, 15+ a week
      • Connection was poor so he read and listened to podcasts – automating and taking yourself out of the business
      • Built to Sell book and podcasts – SaaS as online teacher feedback
    • An agency keeps you as a freelancer, essentially – so try to make it so that it doesn’t have to be you
    • All advice being anecdotal – truth can be applicable to every business, just a matter of you selecting it
    • Started with the docparser and mailparser founder podcast with Indie Hackers (sold to Fortress Capital, also)
      • Found it interesting that there would be people to acquire the type of company
      • Received an email from them
    • Documentation of prcoesses, business processes and building – make it easy to transition into them
      • Connection from beginning and met Kevin recently
    • He started a blog after vacation, thebootstrappedfounder.com
      • Started out Feedback Panda – he was a software developer part-time, she was an opera singer & teaching English to Chinese
        • Feedback writing process took forever – 20 students ~5 min for next lesson and what was taught
        • Built her own system and templates to reduce the extra 2+ hours automatically
      • Knew what the market was because it was her exact same issue. If they could fix the problem, it’d be all over.
    • $10/mo would save hours and made one Facebook post as advertising, then word-of-mouth
      • Allowed them to communicate and have discussions – teaching online blog posts
      • VIPanda – interesting person from user base and interview them
      • Engaging enough, relatable content for their strategy – she’d already been in her groups before she got to the part
    • Teachers as very underpaid and overworked – good spot for business opportunity but not great for employment
    • How to run – he said he probably should have hired for customer service – always did it from the beginning
      • Live chat and messages, would build up an article if others saw the issue again
      • Time when volume happens will be interrupting because there’s new stuff going on while features were coding
      • Forced him to do as much automation as he could build from the software stack
        • Deployment, failure errors, alerting and restarting system
        • Elixir Phoenix, Docker containers and on Kubernetes with ViewJS and other API / browser extension
      • If something broke, it’d come back up – errors automatically reported, etc
    • He didn’t know how to hire, so he didn’t do it
      • Did an 11 hour video series for his next developer so he could send the link and felt great for it
    • Adding a yearly plan near the start was productive – $110 where people would commit to something for a year
      • After a year, noticed they added a lot of features – had a cloud template sharing system
      • Machine learning for pronoun translation, snippets with text extender and manipulation
      • Product was much better – charge more – grandfathered all existing customers to $10 before $15/mo
    • Hooked by Nir Eyal – instrumental – trigger, action, reward, investment – putting own template to share
  • Keith Devlin (@profkeithdevlin), “Math Guy” at NPR Weekend Edition, Stanford Mathematician (School’s In on Wharton XM, 9/1/18)
    • Math throughout the week and your life day-to-day
    • Using Tupperware dish – missing the size repeatedly, for instance
    • In Alaska, teaching algebra to students – remembers having to teach the quadratic equation repeatedly and lengthily
      • Math as a discipline, potentially
    • Math Guy license plate – content of math has changed throughout history, but not necessarily how we’ve done it
      • Save for 2 exceptions that are the printing press and then computing
      • Changes throughout history as connection with ancient Greeks, geometry, and in response to how society grows
        • 18-19th century – chemistry and physics drives, 20th and 21st century – biology and math through commerce, society
    • Cell phones as answering 95% of undergraduate exam questions in fractions of a second, execution of procedure that can be coded
      • Faster, better, quicker for as many variables as you want, just from your phone
      • Shouldn’t test these things anymore but how to do them and when to use them
    • People should have a general sense of numbers sense – different people have levels of it
      • Tips, for instance – example of doubling tax and then taxi cabs or restaurants starting at 20/25/30% since min ppl will enter own
      • Don’t need to learn to execute – won’t get the right degree of understanding without doing it
        • Teach not for execution, but for understanding now – bunch of high school students reverse engineering UPS/FedEx algorithms
        • Had to understand little things to figure out what would go on – Nueva school
    • If you start with technology to interest them, they’re already engaged – good teacher can ask interesting questions given the motivation
      • We shouldn’t have to ask Why’s and How’s and What’s
    • Research in 1990s watching adults after buying things and seeing things
      • If they have to do it mathematically, can get to near 98% quickly
        • if you take it out of the context but the same types of problems, it goes to 37%
        • Children doing licorice (to count 10s) won’t work once you remove it from the context
      • Embodiment of math in video games (Kevin’s been working on it) – reward in it to achieve the reward which pulls away from content
        • Small number that do it right – find a way to represent it that’s natural (in process, for instance – thinking process is math)
        • Slides he shows audiences with the same problem and same situation – one side is math symbols, other is game designed
    • He got a grant for games where the problem adjusts for the game and shows the manipulation of the symbolic representations
      • Intuitive quantitative symbols – working on online course for teachers/parents
      • Introduce problems (from movies, for instance) where you have to begin with writing a paper

When Innovating Away Staleness (Notes from Nov 18 – Nov 24, 2019) February 25, 2020

Posted by Anthony in Blockchain, Digital, finance, Founders, global, medicine, Politics, Strategy, training, Uncategorized.
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Entrenched. The longtime incumbents. When industry becomes too single-minded, others may start to notice. Each of these individuals from the podcast episodes are in very different industries – media/news, investing/venture, monetary policy system, and regulatory updating of provider-side healthcare. All very large, important systems that beget those that have lived the longest.

Each of the guests, however, saw opportunities in how stale an industry had/has become and attempted to take advantage. Whether that’s building something on their own directly (Jon Steinberg with Cheddar News Network) or indirectly (Gil Penchina with Flights.vc), they have a penchant for seeing innovation through. I loved hearing a few of them mention that it’s nuts to have the incumbents stagnate over some of the most advanced couple of decades we’ve ever seen.

I hope you enjoy the notes for how they structured the framework for the innovation, what opportunities they tried or came to realize, and which crazy people do you back.

  • Jon Steinberg (@jonsteinberg), COO of Cheddar News Network (Launch Pad, Wharton XM)
    cheddar-logo-16x9-1

    • Large appetite for live news and sports, very few people had done any in 20-30 years
    • Younger, faster, better as a business network
      • Younger, diverse anchors & audience in their 20s, 30s, 40s vs 60s and older
    • First round raised was $3mln, no big iron of typical broadcaster – different look and feel, same structural format for guest formats
    • Former president of Buzzfeed (2010-2014), DailyMail after – CNBC and live production as the best production
    • Lightspeed Capital friend who wanted to give him a first check – being part of a startup management team that’s successful to go from there
      • His first success was with Buzzfeed – played a role with many others, but combined his luck and effort to get the check
      • Gave up 20% for the $3mil
    • Showed up at the WeWork with Peter Gornstein, first partner and Chief Content Officer – looked at each other and “What now?”
      • Bought computers, then what now? Looked for vendors for equipment and build set.
      • Shot a 3min sizzle reel – shot sample video packages.
      • Next, go live from 9-10am one hour a day, basically – then how to ramp it up to 3 hours and more
    • Facebook Live launched, then they enabled the API so they could connect professional network equipment to it
    • Carriage fees – ESPN gets several dollars for every cable subscriber
      • Cheddar does advertisers and partnerships for their money and business
    • Purchasing Ratemyprofessor, MTVU – college market and network
    • Competitors are part of the network and counterparties still
    • Runs all news and advertising for Altice (after being bought by Viacom)
  • Gil Penchina (@gilpenchina), Founder at Flight.vc (20min VC 2/7/16)
    658877-89ccd88502db9d964a651ecba6f86d9d-medium_jpg

    • Note that this was the first day Harry had been to SF (meeting Jason Lemkin)
    • Network of AngelList syndicates that covers a wide range of sectors, SaaS, security, geographies
      • Biggest raise for syndicates to date – PayPal, LinkedIn, AngelList, Indiegogo – nominated for Angel of Year at Crunchys
    • One of early engineers at eBay (100 employees to 15000, 8 years)
      • Ran a spin-off of Wikipedia called Wikia – consumer content site, went to Fastly and angel investing
      • Wanted to work with entrepreneurs to fund small checks to other entrepreneurs as a community of helping
        • Didn’t want to do the full-time thing and thought he didn’t want to focus on terms all the time
    • At Flight, at time, they have 25 syndicate managers, 100+ volunteers to join the list – 2 groups – 1 analysis/learning companies, other sales/scouts
      • 3000 backers and they ask them to help their companies, small tasks (AngelMob) to improve or give introductions and recruiting
    • 5 years time – become a place for consumers to invest and save
      • Expansion fund and new projects – Eric working on traditional venture fund for follow-on in angel investments
    • 15 years ago, cost $10-15mln to get a website now and now it’s $10 or free for URLs (Reed’s blitz-scaling)
    • Next sector to be disrupted – education (investment seed and B into Allschool)
    • Start a syndicate – come up with thesis, going out and finding the deals (1 click to start), getting traction is hard
    • Investment ethos – people that are actually crazy
    • User of Nuzzel – best content for all of his friends
    • Similarity of Happn to “Chance Encounters” from newspaper – hoping someone sees it and reacts
  • Patrick Harker, President of Philadelphia Fed (Behind the Markets, Wharton XM)
    frbplogo1line

    • About 1/5 of jobs are at risk of being automated out – minorities and women in his district
      • Creating and destroying jobs with automation – not necessarily ridding them, but training will be important
      • Philadelphia Works – job training model for America, partnering with Comcast
        • Typically, it’s been “train and pray” – training and upskill, Comcast will reimburse out of the HR budget if successful
    • Biggest surprise – outside the lens of monetary policy – breadth of what they do is stunning
      • Largest collection of economic talent for all sorts of issues that aren’t celebrated
  • Pharma Drones, Veteran Health (16min on the News #14, 11/15/19)
    • Venkat Mocherla – market dev on bio team, GP Julie Yoo, Joel de la Garza security operating partner a16z
    • Pharmacy-patient relationship is highest volume/frequency interactions with healthcare system, owning node is good
      • Lots of startups on logistics on pharm, last mile and full-stack delivery/pharm, nontraditional care centers
      • Medicines/therapeutics work for patients, compliance is one of the biggest pains
    • MediPlus, Whatsapp your prescription and you can get delivery within 24 hours
      • Fastest regulatory arbitrage – where are opportunities – Zipline in Rwanda, for instance
      • Antiquated for brick-and-mortar to innovate, but instead mobile-first and digital distribution
      • Pills, small molecule drugs that are cheaper, chronic that can be easier
    • Last mile delivery solution is cost – one-off deliveries to patients to homes has cost issues – more expensive
      • All come to hub because of delivery efficiency
    • Apple opened up health records service to vets with iPhones – give them access to their medical information regardless of provider
      • VA is mired in healthcare challenges (came up with EHR)
      • Knock on digital health industry – great for pilots but unable to scale so far, VA and NHS populations are one-go scale
        • Not bastions of innovation but more captive population (1mil to 10-20mil)
      • Last decade, provider-side heads down for data that’s digitized but not interoperability
        • Get at the data is not a given, Apple unleashing data to consumers is great but is there utility in it? (no imaging data, limited)
      • Match data to patient, or doctors, scheduling appointments – technology for technology’s sake isn’t usually great
    • Voice commands as being sent by light – specific microphone design that’s vulnerable to the attack
      • Area of research to use frequencies of energy to affect systems – light to mimic sound, for instance
      • Advent of radio has been different research – cathode ray tubes, radio surveillance
    • Enabling hardware manufacturers to guard against this – microfilms or filtering fraud and security

Back from Vacation (Notes from Nov 11 to 17, 2019) February 11, 2020

Posted by Anthony in Automation, Blockchain, cannabis, Digital, education, experience, finance, Founders, global, gym, Leadership, marketing, NFL, NLP, questions, social, Strategy, training, Uncategorized, WomenInWork.
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It had been a long while – 9? months since taking more than 1 day off extra and closer to 20 months since I’d had a week off in a row. I visited the Big Island in Hawaii and stayed primarily on the west side of the island. Gorgeous weather and awesome beaches will bring me back, hopefully shortly.

I want to write a bit further about the escape, but I also want to get these notes out, so I’ll write further in later this week – Thursday.

Enjoy these notes on some of the fascinating people of Eniac Ventures, other investors, founder of EasyPoint, ReSolve quant, research professors, former professional football player and a Nascar driver.

  • Hadley Harris (@Hadley), Founding GP at Eniac Ventures (20min VC 2/3/16)
    1-jvo_shxbd9d_mifojv7_w

    • First mobile venture, Soundcloud, Airbnb, Vungel
    • 2x entrepreneur in mobile – Vlingo (acq by Nuance for $225mln) and Thumb (acq by Wipulse)
      • Was one of first employees and execs running marketing and bd while working with product
    • Worked at Samsung and Charles Rivers Ventures
    • Studied engi & math as undergrad @ Penn, joined MSFT & Samsung
      • His 2 really good friends at Penn and him came together for Eniac in 2009
      • Mobile – next place for computing – cleantech was hot at that time, as well
    • SF was 50%, NY as 25% and the rest was elsewhere – won’t lead but will do a pro rata and be key in fundraising for next
    • Living & breathing the co – coming to right valuation, inevitable for down or flat rounds
    • 18-24 months from seed to series A or pre-seed to seed – funds becoming more institutionalized
      • Leading rounds for Eniac at $1.2 – $2mln
    • Favorite book: Freakanomics, read it in one sitting
    • Tools: gmail, relayedIQ for deal tracking, as todo list, also
    • Don Valentine – godfather of VC, great investors but great entrepreneurs and fund raisers
    • Favorite blog: Nuzzel – curation of reposts
    • Underhyped: mobile enterprise; Overhyped industry: big fan and he does work in social, but lot to weed through
    • Most recent investment: Phhhoto – knew the founders, they’d known each other for a while, great design and numbers – self-funded
  • Zach Resnick (@trumpetisawesom), founding EasyPoint (IndieHackers #130, 10/28/19)
    easypoint2

    • Iterating your way to founder-product fit, currently at 10 people, 5 full-time, $600k ytd with 15% yoy organic growth
    • Traveled, worked and lived abroad in Jerusalem before school, infected with wanderlust
      • CC churning and manufactured spending while he was learning at school in Ohio – VISA gift cards to $1k
    • Banking often makes more money on the chance that you’ll become a customer for other areas of business (mortgage, checking account, brokerage, etc)
    • Started when he was 19 – would give advice to parents/family/friends on the year before getting an hourly rate for paying customer as consultant
      • Enjoyed his help, he liked helping others – he was getting $1k/mo from hourly before going up
      • Consulting clients – he was helping optimize for business or vacation trip for the points
    • Started Land Happier to solve a problem of having everything in one place
      • Cultural norms, transportation, 6 other things for information in a fun and compelling app product (MVP on app store)
      • Wasn’t solving a problem that nobody has, but nobody would pay for – product/founder fit wasn’t there, either
    • What he wants – enjoys negotiating, strategic thinking, interesting conversations and sales moreso than product focused than customer focused
    • While working on Land, he productized his consulting – generally was helping family friends that were parents’ age
      • Amount of effort he was putting in compared to the value wasn’t the same – not high enough
      • Started to focus on small business or medium enterprise owners to put spending on the right cards and get 6 figures on spend return
      • Focused on people he knew through referrals, points optimization plans for small owners – acquisition and spending for more value
    • Early stage owners – hey, this isn’t free
    • Playing poker for relatively high stakes – teaching important principles, statistics, risk management and psychology
    • Consulting to productized consulting service – had a family friend with small business who would see a $50k in increased return on spend
      • He could do a quick analysis and understand business more, try to get a customized points optimization plan for points
      • Small business owners are leaving 1.5%, maybe 2.5% on the table – using points better for things you already want to do
    • Providing value but people didn’t know what it is or weren’t hurting – show them math for 5 figures within a year saving
      • Guarantee: if you sign up points optimization plan, if he doesn’t get you double what his fee is within first year, he gives money back and $10k
      • Making people aware of the problem was going to be a lot of work – never really got off the ground for outbound
        • Was just a way to make money, not necessarily grow it really fast – customers’ needs
    • Concierge service now (v3 EasyPoint) focusing on business and first-class international long-haul service
      • Over whatsapp and telegram groups – makes a flight request and they get back to them 24/7
      • They use miles and points that they buy from clients and then use those to book for others
      • Brokers buying all kinds of points and miles – so the arbitrage there contained issues with ToS and such
        • They’re buying transferable points like Chase / AMEX directly to frequent flier accounts
    • Working for someone else – interned with The Points Guy and when he was looking at doing it, he posted on the Facebook group
      • Cameron, now their COO, was very good – would he want to have his hires over for dinner?
      • Team of 10 now: Cameron manages concierge, growth marketing (5 on team, looking for Asia now)
        • Part-time business development consultants, full-time that have been searching
      • Revenues and loans for growth/cash flow, venture debt and possibly equity raise
    • Concierge service with product-market fit and being focused – enterprise value of $100mln probably but not billions
      • Not much needs to be tweaked for core product – fund raise would be for a different product
        • Help consumers decide on if they want to use their points or cash when booking – trying to automate this for concierge/back-end
        • Chrome extension and booking engine to use or not – this may be billion dollar opportunity
  • Andrew Butler, ReSolve’s Head of Quant Research (Gestalt University, 10/2/19)
    podcasts-thumbnail-300x300-1

    • Machine learning in markets: Silver bullet or Pandora’s box
      • Unsupervised, supervised and reinforcement learning differences in application or finance
    • Student of mathematics, physics in undergrad, keen on not memorizing a lot of stuff – enjoyed the applied side
      • Oil reservoir simulators that modeled tidal flow in Bay of Fundy, wind turbines in giant field for optimization
      • Next step was working on a sub problem of simulators – complex, computationally expensive and trying to optimize NPV in 60d oil field
        • Navigating the nonlinear, nonconvex solutions – how to make a reasonable model approximation by sampling sparse reps of simulator
    • How would simulator/emulator apply to financial world in momentum and moving averages
      • Sample distribution would fit well to out-of-sample distributions in physical world but finance wouldn’t – nonstationary
      • Caused him to use simpler models, momentum models (and transformations) and ensembles of simple factor models
        • Mean-variance optimization, error maximizing, in-sample won’t perform well out of sample
    • Wanted formal training in financial engineering, so went and got a MFE
    • Practitioner compared to theorist – after a conference talk, his construct was mean-variance was same as regression
      • Subspace reduction and regularization as identical terms for mean-variance
    • Machine Learning as 3 subspaces
      • Unsupervised learning -> clustering and dimensionality reduction
        • Targeted marketing, customer segmentation and in finance: signal processing, optimization or portfolio construction
        • Trying to uncover relationships/groupings/clusters contained within a dataset
      • If total error is dominated by bias, it’s likely overly simplistic – X as model complexity and Y as Total Error (Bias / Variance)
        • Increase complexity, bias term can decrease, increasing the variance (instability/overfitting)
  • Kelly Peeler (@kellypeeler), founder / CEO NextGenVest (20min VC FF#034, 2/5/16)
    nextgenvest_ai_serieslogo_blue

    • College Money mentor, empowering students to live full lives, history of financial crisis for motivation to start
      • Went over to Iraq, started and enabled some companies to build there in 2012
    • Went to JPMC after graduating to make some money before starting NGV for students
    • Financial organization to financial efficiency – going from Mint (organizing money for a user’s financial lives)
      • Now people need efficiency – time priority, optimizing time through automation and personalization
        • Leverage trust to improve time in the background (automation and not wanting to have to look)
    • High school trust and students have nobody they can trust for guidance – 8% trust banks and financial institutions
      • If you can build a product/service, on your way to building trust
        • Save users time, money, customized experience
    • Serving their customers with SMS and Snapchat – smarter push notifications for the right service in the right way
      • Couldn’t customize communication inside an app, so they did channels that they chose
    • NGV clubs at high schools across country – new high schools brought in, engagement and grassroots
    • First product that they brought on was for the financial literacy test that 17 states need
    • Favorite book: The Thank You Economy – best people outhustle to get more customers
    • As visual person, can focus on 1-3 things at a time – preps in the evening, large index cards
    • Adam Nash at Wealthfront – build trust with dynamics of product and the culture of company
    • Spent too much time at focusing her weaknesses but has tried to get better on that side
  • Sam Yagan (@samyagan), Starting OkCupid, Sparknotes (Wharton XM, Marketing Matters)
    • Turning down consulting job for OkCupid start – told he was crazy but wanted to take the chance
      • Free model and how do you value customers but competitors were Match and eHarmony
      • Had to get enough people on all sides of the market and then could use the data to help
    • Internet wasn’t designed to take an expert’s ideas and just use those – bigger than that
      • “You know what you want.” We’ll pull it out and figure it out.
      • Google comparison – index all the pages and figure those out to place on first page
      • Creating a platform to ask all the questions and focus on them
    • Sold Sparknotes in 11 months, took OKCupid 8 years (sold to Match, was there for a year)
      • Got the job running the company for another 3.5 years as Match CEO and created Tinder
  • Rob Gronkowski (@robgronkowski), All-Pro tight end (The Corp, 10/1/19)
    • A-Rod investing into Rob’s brother’s, Chris, company Ice Shaker
      • Were able to put money in, along with Mark Cuban, when they were on Shark Tank (all brothers)
      • Rob, upon retiring, bought Arod out of his shares in the business with Chris
    • Fitplan – Arod gave Rob a discount on the shares in Ice Shaker and he just wanted Rob to look through his company
      • Rob invested with Arod – parents were in business (gym equipment for retail/commercial for 28+ years)
    • Kraft being an owner for the team and being around the game – interested in everything
      • Rare to see owners in the locker room and talking with players – many players say they’ve never seen others
      • Brady, Kraft and Belichick as being the greatest people and diagnosing problems/plays and adjusting
    • Rob wants to travel – done a lot in the US
      • Traveling a week from that day to Israel with CEO Barry of CBDMedic there
    • Being reckless as single Gronk in the NFL (loves Camille now, though)
  • Horst Simon (@hdsimon), Chief Research Officer at LBNL (Curious Investor 9/3/19)
    4vfj55gu

    • Difference between ML and programming – validity of an email, for instance
      • Computer looks for “@” and domain name, iterative of if-then’s, marking valid or invalid
      • ML – give details of valid and invalid email addresses and have the computer figure it out with a statistical model for rules
        • Relationship between information
      • ML more as being able to see if something is a cat in a picture – hard to program that
    • Helped establish the Berkeley supercomputing center – big role all across the world now to complement theory by simulations
    • More data than ever before, 90% of digital data created in last 2 years – more in 2018 than all of human history
      • Finance can’t generate more data like autonomous cars, for instance (100 cars means 100 more data points)
      • Markets/economics are dynamic – return predictions of signal:noise approaches zero
        • Driven by economic features of markets – competitive, profit-seeking traders that act on it
      • HFT as real barriers to entry so they’re less efficient and more predictable, potentially
      • Quantitative traders don’t use raw data – they use transformations such as log of equity, cross-sectional rank of book to market ratio
        • Neural network tries to find what the best transformations are (X -> Y and explore all the connections)
    • Bonds example: predict if issuer will default or not with firm information using random forest
  • Rajiv Shah (@rajcs4), Data Scientist @ Data Robot, Adjunct Prof UChicago (DataSkeptic, 10/22/19)
    1024x528

    • Started engineering, studied philosophy and law, PhD in Comms before doing research as academic
      • Worked at State Farm and Caterpillar before going to Data Robot
    • Deep learning applications in motion data like NBA player data, motion tracking arms and legs (PoseNET, for instance)
      • Nature paper published that used deep learning to study after-shock patterns for earthquakes
    • Going through paper – simple starting point or baseline model was skipped – how much value is really added, then?
      • Looking at the 6-layer problem – approach wasn’t unexpected when using keras to add layers
      • Results generated: AUC of 0.85 compared to naïve benchmark of simple, physical model – AUC of 0.58
      • When he reproduced it, test set results were higher than training set – yellow or red flag for model
    • Group partitioning – 130 earthquakes happening right after each other, near each other and related
      • Make sure the information for an earthquake/customer doesn’t get split between training / test sites to avoid leakage
      • Basic grounding of fundamentals for setting up initial training data, partition based on time to avoid that, as well
    • As community, ensure that there are best practices and guidelines – reproducibility as a large problem lately
      • How to police boundaries for the general field – influence of institutions in publishing (for this, Harvard/Google/Nature mag researchers)
      • Good from them: the data and model for the code was freely available and he could do it on his laptop / notebooks
      • Academics from the earthquake field reached out to him with some qualms and he’s partnered with them for a blog on efforts
    • Interpretability focus trade-off with accuracy – that he’ll speak on at Open DS Conf
      • Lots of tools for explaining models with transparency now, though
  • Julia Landauer (@julialandauer), NASCAR driver (Stanford Pathfinders, Wharton XM)
    • Being on Survivor (suggested by a friend while Soph in college), racecar driver
      • Picking Stanford because of so many people that were awesome / ambitious
      • Mentioning Andrew Luck saying that this was why he chose it – people wouldn’t particularly care
    • Driving at such a young age and in Manhattan – not getting a license there until 18 on campus
    • Having to pitch and learn how to pitch at a young age for sponsorships, running a team and the cost, even at minors – $500k+
    • Some 12 female drivers and being competitive

What’s Important for the Business (Notes from Sep. 16 – 22, 2019) November 5, 2019

Posted by Anthony in Automation, Digital, education, experience, finance, Founders, global, Hiring, Leadership, marketing, questions, social, training, Uncategorized.
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Ah, the art of learning. What can you absorb in the time that you allotted? Hopefully it was the good stuff, the one you can apply and remember. We’re not going to retain it all – far from it. Different surveys and studies will say between 10-30%, depending if you’re reading, listening, seeing things. Repetition, talking about details or applying what you’re picking up can improve those numbers – and it’s why there is still a ton of money being raised/made on improving it (Blinkist, Anki, Quizlet, rise of audio books and podcasts). This is all without bringing in the idea that the internet has allowed such a flood of ideas that opposing ones can exist simultaneously, persisting through its strong supporters. So, if you’re not doing research and coming to your own conclusion, it’s likely to be lead to whichever way you resonate with someone/something most (or first).

In reading through Constellation Software President’s letters to shareholders, you see a valiant attempt at conveying how he, executives and board members looked at the business health for the year – and refreshingly so, not explicitly through rose-tinted glasses. He critiques and suggests an option that reversion to the mean is possible based on a lower adjusted net income and cash flow from operating activities per share. Then he went through the shareholders returns on invested capital, average invested capital, and questioned the organic net revenue growth’s performance (as he notes that this is a primary core to the main metric for their performance: ROIC+OGr). Once he goes through the metric and it’s cash flow, he mentions that they’re looking to increase acquisitions, but the environment isn’t conducive to great values, so FCF may not be fully invested at attractive levels for the future. Then, he suggests a metric to cover this with a reasonable pattern, one less subject to shareholder alterations. Open to suggestions while he develops the reasoning for what another member has suggested for a good metric, he settles on FCF increase per share compared to average net income per share.

I loved his breakdown for the shareholders – mentioning half the shares trade for the year. He breaks it down simply as short-term, indexers, enterprising investors (including institutional, but also generally long-term, long-haul holders). He openly asks them to help find directors and members of the board and the difficulty that they saw initially after their IPO. The next paragraph was a big one, so I’ll include it:

Qualified and competent Directors are very rare, and not surprisingly, the track record of most boards is awful. According to the 2017 Hendrik Bessembinder study of approximately 26,000 stocks in the CRSP database, only 4% of the stocks generated all of the stock market’s return in excess of one-month T-Bills during the last 90 years. The other 96% of the stocks generated, in aggregate, the T-bill rate over that period. This means that 4% of boards oversaw all the long-term wealth creation by markets during that period. Even more disturbing, the boards for over 50% of public companies saw their businesses generate negative returns during their entire existence as public companies.

Wow. A) The recognition of wanting to be the best and provide a great board of directors for a long-time and B) genuine concern for the long-term view and suspicion of complacency arising. Both, I’d imagine, lead him to mention that vision / strategy are not necessarily courses of action – instead, perpetual objectives as the guiding point. Whether that’s seeking them out or maintaining what they had, he made sure it was top of mind. He sees that profitable VMS businesses may no longer come to be acquirable, and that he’s on the lookout for other opportunities – without them being attractive, though, he’d responsibly return FCF to investors.

Interestingly, he looked for Constellation to be devoid of “sycophants, mercenaries and spin-doctors” and wanted it to be a place where meritocratic results bring in “entrepreneurs and corporate refugees to invest their lives and and their capital and thrive”. Quite the statement for a business of such magnitude, when, especially from the outside, many succumb to the former (hell, take a look at Tech Twitter these days and a complaint I’ve had is that people seem to be comfortable bouncing between 2-3 companies a year for 5, 8. 10+ years). I’d love to build something that sustained a drive through many levels of employees.

“I find there is no magic to managing and leading. If you are smart, work harder… treat people fairly, do not ask them to do anything would not or have not done, share the credit, keep learning and keep teaching, then pretty soon you have followers. If you make sure that the team members are energetic, intelligent, and ethical people….”

Yup. That’s the way to build a company. Find that and hold on. And then he finalizes with the board requirements (which I’ll include at the bottom).

Hope you enjoy the notes this week.

  • Mike Strasser (@mstrasser), Motiv ring founder (Wharton XM)
    • Talking about the ring and how he knew the wearable would work
  • Lee Thompson (@flashpacklee), Flashpack founder, Marketing on a Budget (Wharton XM)
    flash_pack_logo_block-1

    • Photo journalist for 15 years
    • Talking about creating a brand through pictures, story-boarding, ethos of brand
    • If you can’t tell what your hook / pitch is, probably won’t sell
    • Went on first date with his now-wife from Match, wouldn’t tell him a great business idea
      • Post-wine glasses, she had a business idea for 30+ year olds wanting to travel – friends having too much of a family/kids
      • Adventure travel company for solo travelers in 30s and 40s, not tours via bus and such
      • Next few dates were researching travel industry, setting up a business
    • Book trip as solo traveler, then have others that you are meeting everyone else
      • Boutique hotels, price points established and like-minded – typically well off in careers, cash-rich
    • Launched with $15k each, savings and jumped in
      • Nobody would spend $1k+ on trips for a company that had no reviews
      • Generated a lot of PR, did a lot of viral videos by responding to twitter hashtags
      • Spent on Google ads and lost lots of money – built the website
    • Took a trip to Egypt on a budget, “come to Jesus moment”
      • If I can get on top of that and take a picture (Christ the Redeemer picture of a workman doing damage repair)
      • Wanted to take a picture on top and took a selfie
  • Mehrdad Baghai, Alchemy Growth cofounder & CEO (Mastering Innovation)
    the-alchemy-of-growth-full-1-638

    • Boutique strategy advisory firm advising large companies on innovation strategies
    • Designing organization architecture for growth, 5-10 years
    • Active investor in tech and p/e spaces with Macquarie Group
    • Former partner at McKinsey leading Growth Practice and then 3 years as Exec Dir at CSIR, Australia’s national science agency
      • Dozens of new tech companies
    • Also launched High Resolves with his wife, Roya, in 2005
  • Fred Destin (@fdestin), GP at Accel (20min VC 1/18/16)
    logos_master_accel

    • Former partner at Atlas Venture working with Zoopla (public), Secret Escapes, Integral Ad Science, Dailymotion (acq by Orange), PriceMinister (acq by Rakuten)
    • Studied life as derivatives at Goldman Sachs, first team on credit derivatives
      • Securitization of movie rights, derivatives in Pacific region for about 7 years
      • Opted out when it went from risk hedging to arbitrages
    • Moved to Speed Ventures for investing at really early seed
    • Spending a lot of time hiring the best 1-10 executives because you can’t spend time getting this wrong
      • Take a model that worked in 1 city (like Deliveroo), scaling it to 30+ and got there in under 3 years old
        • Fit consumer model and offering for the ones – brought new kinds of service to non-delivery food
      • Seed companies failing because you hire something you don’t understand – wrong team kills the team
        • Second mistake – overestimating the things you can do in the time – reality doesn’t match
    • Setting arbitrary goals for not being worthy of being funded – most companies run out of money or come close, being patient and empathetic with founders
    • Investors need mental plasticity for adjusting expectations on what to best deliver
    • Founders feeling screwed over because it was never possible for them to communicate the right decisions being made
      • Mix of market difficulty or overambitious of timing – how to improve intimacy and mutual trust
    • He likes to spend 3-6 months knowing founders – wants to do strategic sessions, whiteboard issues how you would solve it – discovery and disagree
      • Can work through disagreements, see how people work collaboratively
      • Engineer a situation of tension – hiring / decision made, create it to see pushback
      • Could we do an 8 hour wine test / road test – can we banter and have a pleasant time being together (Boston to Montreal, London to South of France)
    • Needs to ensure performance and milestones, sounding board, interest of company / employees / customers and investor with fiduciary standards
      • Had to tell guys at Real3D and say that they couldn’t invest – told them early, though
      • Mentioned Boston VC that said he’s said “No” so often that he just fizzles out – Fred said he tries to give constructive feedback but not always
        • He used to send very detailed No emails but would receive replies about not understanding opportunity and pushback – called stupid or not getting it
        • Now he responds with “Busy with other opportunities”, but sometimes he has things fall through the cracks
    • Favorite book: Mastering Margarita, missing and saying No to successful opportunities – doesn’t rue or look back like that because portfolio co’s do well enough
      • Success measure – how long it takes for knowing (16 years for him), took 10-12 for success as investor
    • Wasn’t super excited about returning to London but was pleasantly surprised about how vibrant it was – still US is more tolerant about money and quicker pace
      • Competitors share, acquisitions are faster – Accel moves fast so it’s advantageous but not overall
      • Boston wants to import the well of technical talent and ML – hubs working together in Europe will improve it
  • Thirteen Minutes to the Moon
    • Episode 7: Michael Collins: Third Man
      • Command module pilot for the mission
      • Test pilot before being selected as an astronaut – 90% luck he landed in that role
      • Someone wrote to Eisenhower that the best option for selection for astronauts would be experimental test pilots because apt to new scenarios and flight
        • Compared to deep sea divers or others
      • Collins had been turned down the first time to supplement that first 7 – after a year of more experience, selected in class of 1963 with Aldrin
        • First flight was 1966 on Gemini X, rendezvous and docking maneuvers
        • Once LEO Gemini flights were successful, Apollo XI was announced in January 1969
        • July 16, 1969 – launch sequence day – was responsible for launching lunar module to turn it around from Saturn V rocket
      • Was an English major and just did guidance verbs/nouns memorization to control it
      • As they neared moon, they were on far side and lost contact with Houston
        • Takes back everything bad he ever said about MIT – accuracy of system was ridiculous, 3000 ft/s and only had 0.1 ft/s in any one direction error
        • If something went wrong for landing lunar module, Michael couldn’t change his speed but it’d be up to him to figure out what to do
        • Mathematicians were responsible for coming up with a list of 18 variations for problems and what to do – some they hadn’t trained for
      • He felt alone, awareness of being on the other side of the moon, solo after Aldrin and Armstrong picked up speed on their way down

 

CSI Board Role Search Criteria
THE ROLE
Thought Partner – Thought partner for senior leadership.
Long-term Orientation – Unfazed by short term pressure. Focused on CSI’s long-term issues.
Timeframe – Able to serve on the board for 20+ years.
Investment in CSI – Willing to make a significant equity investment in CSI, above and beyond board comp.
THE CANDIDATE
High Quality Business – Understands what constitutes a high quality business.
Autonomy -Appreciates the motivational power of autonomy, decentralisation.
Cultural Fit – Respects and gets along with the current senior CSI management as well as the board.
Ownership – Believes in the motivational power of equity ownership.
High Impact / Low Ego – Will intervene when necessary, contribute meaningfully, but not dominate discourse.
Out of Kitchen – Can resist the urge to get into the kitchen when there’s a chef already in there.
EXPERIENCE
Builder – Helped build or maintain (as a director, manager or major shareholder) a large
organisation (>1000 employees) over an extended period, while providing a superior
return to owners (ideally including employee owners).
Decentralized – Experience with a decentralised company (nice, not necessary).
Capital Allocation – Experience in a capital allocation role (nice, not necessary).
LIKELY BACKGROUND
Family owned business operator or director.
CEO / #2 for exceptional business.
Entrepreneur
SEARCH PATHS
Multi-generational family owned businesses with high ROIC within reach of our
network and ideally local to CSI (increases involvement, eases reference checks, more
likely to know CSI, decreases absenteeism).
High quality businesses with strong shareholder alignment.
Great capital allocators in the corporate world.
CEOs with great shareholder letters and high quality businesses.

Fostering a Community (Notes from Aug 26 – Sep 1, 2019) September 23, 2019

Posted by Anthony in Blockchain, Digital, experience, finance, Founders, global, Hiring, Leadership, questions, social, Strategy, training, Uncategorized, WomenInWork.
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What a crazy couple of weeks! And it’s not likely to slow – I’ll give some more information behind that very shortly. Exciting new things on the horizon, though – and ones I’ll be proud to announce when I can. August provided a lot of clarity in direction – good because it wasn’t exactly restful.

I mentioned it in last week’s post, as well, but I’ve been hyper-aware of the people around me interacting, enjoying and laughing over commonalities. It’s at every level, though I peruse coffee shops far more often than other places. Interesting stories are almost expected. If you refer to my reading list, you’ll notice a new one, Dignity. As part of a book club, I was hesitant and unsure when it took the lead because of the topic – primarily drugs/poverty/downtrodden/unlucky collection as reported, but halfway through I’ve been pleasantly surprised at how much perspective Chris provides. I can’t help but draw that fixture of everyone has their own experiences that provide the lens through which we draw conclusions on everything else. Endless and it’s very tough to remove ourselves or step back – especially with things we’re unfamiliar with.

Ultimately, though, everyone wants to share their experiences with others – whether it’s some depth of despair, depression or building a community, religion, or hiring employees to work with or spending time for fun and adventure. We’re human. We spend time with other humans. There’s a reason we’ve survived this long in groups and why the solo artists end up in peril – this is completely generalized but in MY experience, I’d say I see a truth in this.

Kate Shillo, Director at Galvanize, mentioned her journey for Martha Stewart’s media company to Galvanize where they help businesses grow with their people. Morgan Dunbar, at Bendigo Partners, discussed his involvement in AIR – summit and conference for sharing ideas/businesses for financial services to hopefully rise all boats, as they say. Mike Vernal, at Sequoia Capital, went through how Facebook’s earlier years helped him with approaching problems and the finality of decisions – what they’ve fostered for the boards he is now a member of. He tries to understand the start-up and the founders view of the problem after a quick determination of if they know the idea enough. Others, which I only caught pieces of, had similar views.

I hope your community, whatever that may be, is productive and positive – helping you gain what you’d prefer from it.

  • Kate Shillo (@kshillo), Director at Galvanize Ventures (20min VC 1/13/16)
    gavalize-logo

    • Investing in hardware and future of IoT
    • Got an interview with Martha Stewart’s Omni Media and she was temping for her – living in NYC 2007
      • Would have an idea in her company – create, build & continue w/ mini incubators
      • She wishes Marthapedia was made – hasn’t done it yet
    • Wasn’t quite stimulated enough in 2007, she quit and bought a surfboard – 6 months later she was back in NYC
      • Had met Kenny Lerer (around in interviews) – met before Martha with an internet newspaper (Huff Post)
      • Took a huge pay cut to do some research on other startups as Kenny was on the chair for Huffington Post (~30 employees)
        • He was chair at Betaworks at that time, too
      • She was the human tester for Betaworks (only other one to test)
      • Helped launch Ken Lerer Ventures (Lerer Hippeau Ventures) as formalizing process for his angel investing
    • Help of having Huffington Post (sold in 2011) as starting propelled them into NYC market – unheard of at the time
      • Market down, nobody investing in seed – writing small checks at Lerer “Go by Betaworks and Lerer Ventures is there”
      • First content investment was Food 52
      • Consumer tech pics – paperless post, Warby Parker, Bottle Bar, BarkBox
    • Galvanize (continuous learning – helping businesses and their business grow – new archetype in higher ed)
      • Galvanize Ventures with 3 partners – all of elements to provide their startups
      • Early stage – small, idea from pre-seed to series A (seed process), reserving for follow-ons
      • Small markets like ATX, PHX, SLC to get in – coaching co’s along the way
    • 48 investments in 2 years
      • Consumer mobile-heavy so far, her excitement in hardware – starting in 2014 was IoT hotbed
    • Crowdfunding as a bit of advertising, validating customer interaction and capital as gravy – her opinion
      • Shipping product is usually a hurdle – many people don’t want to invest without seeing this
      • Reflecting on Lerer investments – seeing market share of her old portfolio companies
    • Size of fund is $10.2 mln, $100k checks for pre-seed, seed and series A – get priced out for series A
    • Favorite book: God of Small Things, misconception for VC: that it’s easy (no control for company sometimes but exciting when it works)
      • Sourcing vs existing portfolio co’s helping
    • Favorite apps: Moment app, Twodots (betaworks), Slash, Sunrise calendar, Pant, Wildcard and Venmo at the time
    • Recent investment: msg.ai empowering brands for messaging platforms ecommerce
  • Morgan Dunbar, partner at Bendigo Partners (FYI 8/5/19)
    86aeb71777442ba0eadc52ed226d20ee

    • Capital Market Space within FinTech as principal investors
    • Was mostly on sell-side for analytics on portfolio construction – with Citi Group in Tokyo in 2009 running Japanese equities
    • Bendigo – early stage fintech companies with bias on capital markets, retail, middle and back office
      • Advisor practice with institutional, private equity, large enterprise in capital marketers
      • Transaction advisory, operational consulting and strategy around fintech ecosystem
    • Bill Stevenson partner on AIR Summit – 2013 creation for invitation-only for senior buy/sell-side pros to discuss high-level themes
      • Alpha Innovation Required (AIR) – invite ~20 emerging fintech cos to speak to a use case for front office (alpha generative)
    • Traditional VCs have a fundamental lack of operational understanding in capital markets
      • Secondly, long sales cycle in businesses – thousands at enterprise level vs millions in consumer
      • Regulatory that can be scary without expertise
    • Artificial Intelligence as just replicating a process (as opposed to intelligent)
      • AIR focusing on people, organization, talent and cultural alpha
      • Tradition, trust, not new – center for innovation and trying to do something, be empowered for innovation and development
    • Google pushing into asset management other than cloud, data and analytics
      • Asset managers may start looking at Google like Bloomberg – help build portfolios, vendors to tap for alpha
    • If buy-side problem, then sell-side has a problem, fee compression (growth of passive) – active vs passive (value for performance)
      • Robos (whether or not they’re worth valuations) validated demographics looking for low-cost access with simple UI and intuitive
  • Mike Vernal (@mvernal), Partner at Sequoia Capital (20min VC 8/26/19)
    sequoia

    • Citizen, rideOS, Rockset, Threads & Houseparty board
    • Spent 8 years at Facebook as VP of Product
    • Sequoia – Brian, led A to join board for his roommate’s company and his former PM at Microsoft started a co in 2009 and Brian joined
      • Joined Scouts program early on
      • Had first child a week prior to 8 years at Facebook, took paternity leave to reflect
    • Really enjoyed Facebook first few years – tremendous energy and optimism to create something from nothing
      • Early stage founders in a garage for idealism and irrational energy, switched to Sequoia (been there 3 years)
    • Entrepreneurs that can explain entirety of business in 3-5 min, rest of meeting is the details of the pitch
      • Feedback cycle for great and enduring company – decision-making is a short or longer memo and reading through them
      • For his mistakes, thinking and writing and playing out future – each case was instinctually being interested but not trusting instincts
        • Try to be rational and analysis-driven
      • More importantly, internal conviction on a company, founding team and working on
      • If not at Sequoia, would he go work for that company?
    • Terminal and non-terminal decisions – once you’ve made it, you can’t make it again
      • Do something, if wrong, do it again – try to hire, realize mistake, hire again
        • Pick one, roll out to some, figure if it’s working or not, and iterating
      • Venture – most important is decisions – if you pass a round, you’re done maybe until next round
      • In operations, tempo and learning for decision-making
    • Bundling vs Unbundling – past 10 years will be unbundling of SaaS and best in breed
      • SaaS that are more niche – features as something larger, $1 or $2 / ee / mo
      • Thinks there will be a consolidation of the apps, incumbents that will integrate and put them all-in-one (Notion)
      • Meta-SaaS apps that will put them together as the market matures
      • SaaS as software, business software (maybe banks that are on-premise)
    • Book: 100 years of Solitude, almost every startup underprices their product
    • Time management is the challenge – constant battle, reading quickly and get the ones he finds most interesting
    • Verkada as most recent investment – can build a great experience
  • Kash Mathur (@kashmathur), COO of Chewse (Wharton XM)
    chewse-open-graph-e1559782200236

    • Tracy and cofounders starting it in LA originally, in 2011 before bringing it to SF for 500 Startups
    • Attracting Kash in 2016 as they were figuring out SF before relaunching LA
    • Corporate culture, enterprise dealing and owning the customer service – blended marketplace
      • Starting each executive, strategy board with a “One thing most people don’t know about me is…”
      • Connecting between people
    • Why they have connected Hosts for each enterprise – owning the location, service and whole process
      • Important value and differentiator from other catering companies
  • Linda Crawford, CEO of Helpshift (Wharton XM)
    helpshift-logo

    • Being named top 50 SaaS CEO of 2018, joining HelpShift after Salesforce
    • CCO (customer) at Optimizely, as well as Board Member at Demandwise
  • Rob Farmer, Independent Advisor Study and assets at Schwab (Wharton XM)
    • Talking about participants and customers

Your Experience is Your Own, Only (Notes from Aug 19 to Aug 25, 2019) September 10, 2019

Posted by Anthony in Automation, Blockchain, Digital, experience, finance, Founders, global, gym, Hiring, Leadership, marketing, NLP, social, Strategy, training, Uncategorized, WomenInWork.
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I’ve been considering more and more about how my experiences are only mine. Especially when I feel like I don’t share them often. Working so much but not always discussing it with people outside of work (re: almost never). I was reminded of this while I met with a family member who I see roughly once a month or so. When she asks how work is or I mention I’m busy on days when she wants to meet, it often came with a “busy with a meeting at X but can do Y”. Never more. And almost always, I ask how her work is, and she divulges. So when we sat down for dinner and she point blank asked “I have 2 things: 1. Can you help me with something on my new phone? and 2. What is it actually that you do?” I chuckled because generally I don’t care to share that information – I really enjoy valuing start-ups and learning about the space / tech / finance / education changes, but other than high level stuff, rarely does anyone want to hear me talk extensively a la a podcast episode deep-dive or something. They don’t see the relevance, other than it being exciting for me. Same with when I was advising, same since launching the fund and all while working on project deployment in data science for others.

I strongly suggest reading through Colson Whitehead’s essay here about his version of New York City. How it’s interpreted. essay here

Another thing I read through today was Farnam Street’s blog post on asking seemingly simple questions that may be defined or determined by our experiences with those concepts. An example he uses: “What is a horse?” Try to think how we may answer this.
Power questions

 

  • AI in the Past, Present and Future (BDB 7/16/19)
    teradata-logo-social

    • Rod Bodkin, Tech Director at CTOs office in Google
      • Was with BigDataAnalytics, bought by Teradata and grew it from there
    • Grew Google after seeing the field advancing quickly, state of the art as evolving
    • First people to put Hadoop into production – Yahoo was too scared, single algorithm took weeks at the time
    • OpenAI put out state of art compute paper – 4 year paper, 300k X computation (double every 3.5 months)
    • For Google, evolution of cloud in the enterprise is a big deal – consumer side of Google as leading the way
      • Can just put data into BigQuery because of capacity and accessibility of data – increased production 4x on data science team
    • Big investments into Anthos – open source tech to enable cloud-native services in different clouds, GKE (Kubernetes)
      • Edge TPUs as 100x faster to compute a model vs traditional mobile CPU – TPU as accelerator chip for DL
      • CPU is completely general so less efficient
      • GPU has a boost over CPU but behind TPU accelerators (starting GPU chips, Tensor unit)
    • Kaggle Days and Google IO for cloud Pixel modeling and AutoML performing very well
    • Herrari’s book – 21 Problems for 21st Century
  • Tricia Han, CEO of Daily Burn (Wharton XM)
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    • Community of like-minded fitness fanatics
    • Live 365 – 30min shows on working out, regulars
    • In survey, millenials said fitness #1 and health/wellness at #5
    • Fitness had about happiness equal to making $25k more

 

 

 

  • State and Future of Robotics, ML and Digital Celebs (Venture Stories, 8/8/19)
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    • Michael Dempsey (@mhdempsey) – partner at Compound
    • Read, Listen, Write, Talk – Cunningham’s Law – share something with a strong opinion is likely to get responses
      • More value when shared publicly
    • Robotics, ML as cascading forward – robots broadly, initially – types, how to make them intelligent (2013)
      • Drones, hardware platform (DJI as leader), space and now as unsupervised or self-supervised learning
      • Deep dive on innovation for what he’s spent the last year or two – investments, as well
    • Women’s health as growing market for fertility and experience layer in healthcare system
      • Higher-end service around egg freezing (but was shattered by Tia founders), IVF or embryo screening
      • 2 investments for him already in the space, maybe more after
    • Strategic robot acquisition for Amazon, why now? Major companies in the space – he’s punted in that space, more investors.
      • Didn’t see meaningful differentiation in the space – didn’t see a company that had that from an investing side
      • Food was where he saw robotics as consistent – grew up in the industry
      • Really easy to get pilots but not for revenue – wants full-stack robotics company
      • Robots taking over entire industry – automated X / Y / Z (rebar, construction robotics)
      • Front of house and back of house retail (analytics, stocking)
    • Weird robot applications (in-home, manicures, old person help)
    • If company is built on algorithm being best, company probably won’t survive
      • Must talk to people doing operating – not just reading
      • Self-driving cars – spent time with Daniel Gruber, discussing local maximum and rules to write
        • If you can drive in NY, you can drive in SF, LA, etc…. 2007 DARPA challenge Waymo / Tesla / Cruise as result – path-planning
        • Intelligence approach – what are incentives / agents to accomplish in a car for end-to-end approach to scale
      • 1 model to move them all – enough compute that model can solve it (DL is direct function of this, for Google)
    • Investment in data labeling space – more people moving into production requires more people getting good data and filtering data
      • Larger data builds where it may cause $50-200mln per year to label but 50% is useless
      • Environmental impact and thinking about it – consolidating data but into better (CartaAI and SkillAI)
    • DeepGram end-to-end audio inscription – 80-85% can be good, but if you mess up some key words in certain industries, it’s more expensive
      • Voice side, horizontal players are pretty good – if x% of users will have same questions, simple workflow or algorithms
    • GANs and new generation of faces – Disney and animation nerd for a while – power of IP on agencies, CAA for example and Marvel
      • Stories through animated content, Robot Chicken, others – Robert Dillon – bringing in GANs
      • Watching live action is watching someone else’s story whereas an animated one brings you into the story
    • Trusting the people that have been given permissions – Reddit or being anonymous
  • John Roese, Global CTO of Dell EMC (Mastering Innovation, Wharton XM)
    dellemc2

    • Talking about the 20 year vision to be autonomous but incremental parts until then
      • Driving assist, improved AI in driving, maybe geofenced before autonomous
      • Autonomous vehicles as source of innovation – sensors / LiDar very useful for other industries but too expensive
        • Had talked to studios about virtual studios or conferences – expense should come down with auto
      • Vast problems with uncontrolled or unconstrained problems – already have fully autonomous warehouses or geofenced areas
    • Interested in bio feedback as input to AI or MI systems
      • Used example of video conferences with sensing stress levels – clearer audio, accent correction, more people = more stress
      • Cars already using bio feedback
      • People already wearing sensors via devices – can use that as more input
    • Attacking low hanging fruit because of data ethics or biased data inputs – easier to solve problems that are valuable in neatly constrained
  • Amri Kibbler, Katya Libin, Hey Mama co-founders (Wharton XM)
    • Collaborate and share and support their work for mothers as executives
  • 13 Minutes to the Moon
    • Ep. 06 – “Saving 1968”
      • Apollo II’s first landing – without Apollo VIII, Pathfinder and 250k mi to the moon, maybe gutsiest flight until then
      • Flying VIII before end of year – “We were not ready”
      • 2 deaths of MLK and Kennedy – April had hundreds of cities taking part in riots, thousands arrested
        • 1968 Apollo program was in shock and Saturn V rocket was malfunctioning – troubled test flights
        • Almost busted in all 3 phases the last time it had flown, and the lunar module had slowed down, as well
      • Taking lunar module away from Apollo VIII – former test pilot Jim Lovell said it as Lewis & Clark expedition
        • So many firsts, risks that were enormous on a 100x scale – reason Jim was there in the first place
        • Crews normally had 6 months but VIII only had 4 – mathematicians were responsible for all of the angles and engine durations
      • 1 chance in 3 for mission successful, 1 in 3 for non-crash but unsuccessful and 1 in 3 for not coming back – wife accepted this
      • Media as delivering “death pills” for dying painlessly – respondents would say oxygen would run out and it’d be fairly painless
      • Trans-Lunar Injection – don’t shoot at the duck, shoot out front – wanted to go to 60 mi ahead of where the moon would be
        • Spacecraft needed to get to the right moment, speed, angle and altitude for the moon
        • Human computer – Katherine Johnson – was responsible for the trajectory for launch time (Hidden Figures)
        • Took 3 days from launch to get to target – Lunar Orbit Insertion
      • Astronauts were late on radio contact from dark side of moon
        • Came back to light and could hide behind his thumb – 5 billion people and everything he ever knew
        • Finishing Apollo VIII with scripture and then Good Night, Good Luck and Merry Christmas
  • Bill Clerico, co-founder and CEO of WePay (DealMakers 8/13/19)
    wepay-1

    • Leading provider of integrated payments for software platforms, raised $75mil from SV Angel, Highland Capital, Ignition Partners, August Cap
      • Founders of YouTube and PayPal also in
    • Grew up in NJ, spent time in NY and father worked in Air Force and construction – taught himself computers in 80s
      • Received a scholarship to go to BC, met his co-founder for WePay waiting for the flight for the interview 6 years prior
      • Went to do IB at Jeffray’s – advising tech and software companies with clients, passionate and building for a year to quit
    • Installed a suit rack in his car because he wasn’t going home – long hours, brutal fundraising
    • Group payments that they saw repeatedly at the age of 22 – big market for payments, testing it out
      • Wouldn’t have less responsibilities than at that time – Rich deferred law school and Bill had worked on it full time
      • Tried to pitch Boston investors and failed – less receptive to early stage investing, applied to YC instead
        • Came out to the valley for an interview
    • Spent 1.5 year to invest and took money and sold furniture and drove to the west, taking turns
      • Product was conceptual, pitch deck was opinion and it was hard to prove a market need to investors – conceptual idea
      • In YC, built product by talking to fraternity treasurers at SJSU, ski club coordinators – got them using the product
        • Went to talk to investors by showing them the traction
      • Why would a treasurer to accept payments with different product? Host bbq and invite them over. Go to dorm room and watch product usage.
        • Responsive to requests – take feedback and be better than existing solutions. Gain knowledge in start by doing things not scaling.
    • Group payments were a big problem and needed a solution – weren’t willing to pay, or pay transaction fees
      • Venmo had raised money and had a bunch of momentum by giving away services for free
      • Competitors were taking advantage, 2 years after YC – pivoted but weren’t growing as fast
        • Built an events tool, donation, invoicing tool and an API for customer use – other companies were just doing those
      • Realized they could build an API making payments experience easy and simple and let competitors do whatever
        • Saw huge traction/benefit where they could be brought in via the API (since they had raised $30mln)
        • Needed the business to be grown but expectations were higher
    • 600 lb block of ice for marketing $500 in front of PayPal Dev Conf at Moscone Center – still highest market day
      • Since PayPal had a knack for freezing people’s accounts randomly
    • Pivoted to shut off 70% revenue stream from consumer product, gaining growth on API from other customers
      • GoFundMe used them as a payments processor from when they were 2 person company
    • Prior to acquisition by JPMC – 200 employees at that time, now fintech / bank
      • Asset purchase agreement day – tired – was negotiating final points of deal in person, had some drinks to celebrate
      • Bought a cabin in Mendocino County – deal was valued at $400mln
    • Part-time partner at YC now – helping companies in general – relevant to the next entrepreneurs and the scale
    • Angel investing on the side – much longer and harder and scarier than he ever would’ve imagined
      • Reinforces this to his younger self – startup doesn’t fail unless you give up
  • Evolving Narratives in the Crypto Space with Andreas M. Antonopoulos (FYI 3/12/19)
    • With Arjun Balaji, as well — and similar for me as host, his intro to Crypto space video YT
    • Conflict of Crypto Visions article by Arjun and host
      • Identified closely with unconstrained vision and doing talks on not playing zero-sum mentality
      • Ethereum as different than Bitcoin – evolving directed by design choices
    • Engineering consists of design tradeoffs – choices of optimizing and de-optimizing parts of systems
    • If you want to make something that is Bitcoin-ish, you run into problems for all the strengths that are already inherent to Bitcoin network
      • Differentiate enough to be a new thing from Bitcoin – can’t mingle or occupy that niche
      • Is privacy a big enough differentiator to separate from Bitcoin network?
        • Strong privacy in base layer – can end up with inflation bugs that can damage sound money policy of Bitcoin for the privacy
      • Sound money vs private money – not clear yet.
    • Hard money displaces other forms of money in long term but only if they’re maximalists and logical
    • Friction levels determining switching back and forth on a wallet between utility or store of value tokens / coins in the future
      • Automated backend where they are optimized
    • Interest in Ethereum – tradeoff worth making for smart contracts and applications that aren’t just money outside of Bitcoin
      • How the technology of VM blockchains work
      • Scaling is harder in Ethereum – proof of stake has different security model than proof of work
      • Sharding, beacon chain, polka dot – not sure if it will work or what the security constraints are – could have applicability to BTC
    • Bitcoin critics – make the case for it but then explain value proposition or store of value
      • He has an opinion, others have opinions – none will determine how the market develops
      • Arguing is a waste of time. If you understand the tool that’s best for a job, you’re a better user of tools.
        • Which is the correct tool and how to use it properly – perception is limiting in general
  • Sam Yagan, CEO of ShopRunner (Wharton XM)
    sr_stack_full

    • Founding dating OkCupid and then going to Match and scaling to IPO
      • Going from running a team of 30 to 1000 in a month
    • Ecommerce ShopRunner as retailers combatting Amazon and Walmart – providing scale and guarantees with 2-day shipping for many retailers
      • Joining after Michael Rubin had founded it on premise of “Amazon for all others”
    • Making sure they have AMEX partnership to make it easy for customers
  • Travis Katz, VP of Product at Skyscanner (Wharton XM)
    image1-4

    • Had been cofounder of Trip.com and at Myspace prior
    • Social media giants Facebook and Myspace – selling to NewsCorp and getting revenue compared to funded Facebook acquiring users

Different Ways to Create (Notes from June 10 – June 16, 2019) July 3, 2019

Posted by Anthony in Digital, experience, finance, Founders, global, Hiring, Leadership, NFL, questions, social, Strategy, training, Uncategorized, WomenInWork.
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3 fantastic sounding women to start. One in VC and finance, discussing the difference between NYC and SF for her. The second compared in-house marketing strategy and outside influence. What’s that look like? How much control is there? Last, but certainly not least, was an author who discusses something that I’ve seen with family and my sister – the challenge of raising a child while balancing some semblance of normalcy in work. What’s expected from yourself? What should be reasonably expected from work? What’s a balance?

Those women: Erin Glenn, Julie Scelzo and Lauren Smith Brody.

A few sportsmen discussed data and capital. Sixers Innovation Lab and former exec for And1 mentioned how they think about growth in Philadelphia and the brand, who can they support in the community that can also help with the team. John Urschel, former Baltimore Raven, is a published mathematician now who discussed the influx of data collection and analysis among all sports and teams. What they can do makes a great athlete experience, fan experience and overall performance improves.

A plethora of rising stars followed, from Kanyi of Collaborative Fund to Sofia Colucci of Coors and the co-founders for SHINE text. Hope you enjoy my notes and you check out the podcast episodes!

  • Erin Glenn (@leeeringlenn), CEO of Quire (20min VC FF025)
    252463644980_8db07c968fc1d66203ac_512

    • Entrepreneur as kid – day business for summer camps, then management consulting, IB and took a company public (econ consulting firm)
    • Got bug to start own thing in 2010 – joined KIXEYE in SF for 4 years, video game company
    • Wanted to go to NYC (as kid in OK) – went to meet w Betaworks, fell in love with Quire
      • Mutual conv to join Quire – loved it – equity crowdfund co
      • Venture-back co’s enabling portion to raise for community & mission
        • Min. investment is $2500 – supporting larger investments as well, up to $250k
    • Likelihood for investors to get taken advantage of – Title III discussion (investors with <$100k income/net worth can invest up to $2k or 5% of income)
    • Mattermark study on investor bases that exist and why people do invest
      • Investor and diversity – minority, gender, big differences in those that follow Mattermark or others
    • Crowd won’t provide scaling / grow money (the $50mil+ rounds), but community can help participation at a lower level
    • Motivation to invest, other than financial incentive – supporting company’s mission + founders, spurring economic growth + innovation
      • Real commitment to realize dreams, grow economy
    • Benefits with crowd investing for company – moral and psychological
      • Supporters of the company can invest, which is reinforcing for doing it – customers that are owners of the business spend more, loyal, etc
    • SF vs NY startup ecosystems and CEO role
      • Had joined Quire with 2 suitcases, dog and air mattress after 2 days there
      • CEO role – really fun and exhilarating with challenges daily, gained confidence at eliciting feedback from ideas
        • Coming up with better solutions and getting them to help because we don’t have all answers
      • Intensity and vibrancy, competitive spirit in NY even though it’s smaller-feeling
        • Want to take on SV and not give up the competitiveness
        • More female founders in NY – fashion, finance, media in senior executives trying new things
    • Favorite book: Magic Mountain ahead of WWII in Europe, Switzerland
    • Favorite blog: Fred Wilson’s and Tim Cook as favorite innovator
    • Gimlet Media (first investment), Kano, Duel as others
  • Julie Scelzo, executive creative director at McGarryBowen (Wharton XM)
    mcgarrybowen-logo-2

    • Talking about marketing difference between in house and outside
      • Going from Creative MD for Pandora to take on MGB AMEX
    • Moving from agency to internal at Facebook – not even a salary bump, but just felt right
      • Worked helping clients was rewarding but she missed creating
  • Lauren Smith Brody, author of The Fifth Trimester (Wharton XM)
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    • Discussion of parental leave in the workplace – if uneven with your partner, mixing it up or staggering
    • First 6 months as crucial for development – how to best alleviate this
      • Every person is different and has different attitudes
      • Nobody can generally be told how something may feel for them
    • Having the partner available in the first 6-9 months provides evidence that they’re capable, and can understand some of processes
    • First day of work being scary – moreso as a parent – train whole life to be in workplace
      • Can be comforting back at work, not so much for first days as a parent
  • Dilip Goswami, Molekule Air Filters (Wharton XM)
    • Being his father’s son, a typical engineer
    • Developing and deciding what part of product to have in house vs outside
      • Hybrid model
    • Having customer support and knowing it worked – shipping and using that as validation
  • Seth Berger, founder and CEO of And1, Sixers Innovation Lab (Wharton XM)
    170718_innovationlab

    • Discussing how coaching basketball to young adults was so helpful
    • Marrying And1 with his passion for basketball and teaching and being around it
    • Sixers Innovation Lab – knew Josh from the 90s working on a failed internet co originally
      • Helping with capital up to $1mn and seeing 10x returns so far
  • John Urschel (@johnCurschel), Former lineman with Ravens, MIT mathematician (Wharton XM)
    • Talking about the lifelong balance of math / football from his memoir
    • Thinking about where analytics may be super exciting in sports – real-time strategy if they’re allowed the computers / data on-field/court
      • Tracking data is so strong, it’d be interesting to see what coaches may do to get there
  • Nathan Furr, Curtis Lefrandt, Innovation Capital author (Wharton XM)
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    • Author discussing how innovation costs resources
    • Talking with Marc Benioff and others for the most innovative leaders

 

 

 

 

  • Sofia Colucci, VP Innovation of Miller Coors (Measured Thoughts, Wharton)
    • Introducing a new brand, Cape Line, into the world
      • Usually a 1.5 – 2 year process for a corp this size
      • Cut it down and released in 2019, dropped the other project (Project Sprint)
    • Had already done market research, wanted a more healthy, alternative to beer for women – cocktails in a can
      • Packaging and what that would look like after tasting
  • Jennifer Pryce (@jennpryce), President CEO of Calvert Impact Capital (Wharton XM)
    • Impact capital and how they grade different companies on the degrees for investment
    • Infrastructure, seeing them surpass $1bn
  • Marah Lidey (@marahml), Naomi Hirabayashi, co-founders of SHINE app (Wharton XM)
    246x0w

    • SHINE as a wellness app for meditation
      • Gaining ground with their superusers – seeking feedback
    • Self-care platform, weren’t sure how they attracted so many men – but it’s definitely catered to their experiecne
      • Reached out to one of the first superusers that was male to get his input and to have influencers help
    • Product-market fit and development was always based on how they wanted the app to be- what they were searching for
  • Kanyi Maqubela (@km), Partner @ Collaborative Fund (20min VC 094)
    deuobz-u8aarwgs

    • From South Africa originally, investments into CodeAcademy, Reddit, AngelList, AltSchool, TaskRabbit
    • Founding employee of Doostang, attended Stanford Uni & worked on Obama campaign in 2008, as well
      • Dropped out of Stanford, compelled by interest to see other part of world – did a startup, $20mil of VC funding for a couple startups
        • Being young, decision to leave was easy but once he’d left, it was tough
        • Making friendships and lasting connections easily in college – some communities outside, in pro world, was rough
      • Met his partner, Craig, while finishing school and doing work in design – convinced him to help him with CF
    • Investors are those that believe in collaborative economy – nodes, peer-to-peer and nodes for networking
      • Every consumer/employee/companies have obligation to align interests and value sets
      • Looking at companies to focus on impact and values – aspirational culture as outcome of collaboration
    • For the fund – stage specialization or theme?
      • Theme may be time-efficient-oriented. Reminder that many of most successful people have skipped on massive wins multiple times over.
        • Altman mentioned about having a point of view and heuristic to drive decisions (whether it’s stage or theme)
    • Being a partner at 30 – GPs with skin in the game
      • As young, have to have been very successful early or came from money to get into the fund
      • Needs to prove himself but as younger, may have been very risk adverse in the sense he wasn’t free-swinging
        • Facebook went public 7 years (quick for industry, but not necessarily quick for a fund) – feedback loop timeframes
      • Million ways to market as investor, drive value as portfolio, data, theme or stage specific
        • Blog as high leverage marketing for himself, writing is how he clarifies his ideas to himself and the public
    • Limits and is very prescriptive for the networking aspect of VC, conferences – wife in medical school so when she’s free, he makes himself free
    • Accelerator / demo days as good for investing – he likes being first institutional round, but thinks demo day to discover is not their best way
      • Sometimes the due diligence for demo days of seeing what’s out there
      • He uses them to talk to other VCs, see source and deal flow – coopetition – high leverage, high marketing channel
      • His best way in is likely the portfolio companies under them – he looks for connections for new places and vouch for them
    • Naming Fidelity markdown of a bunch of companies – saying that private companies are being treated like they’re public companies
      • Realtime prospects that are valued – can go up or down, financing or not
      • Private crowdfunding to create liquidity, getting to cash flows and thinking about dividends, debt, crowdfunding – IPO bar is so painful
    • Fav book: Brothers Karamazov – Dostoevsky as “fiction bible”
    • Union Square Ventures as the one he looks up to – Benchmark, also (Read ebooks)
    • Concept of Founder-friendly – agency from founders holding them responsible, but becomes messy / complicated
    • Most recent investment at that time: CircleUp was series C, crowdfunding platform for CPG – other forms of financing for orgs will be transformed

Innovative Investing (Notes from June 3 – June 9, 2019) June 25, 2019

Posted by Anthony in Automation, cannabis, Digital, education, experience, finance, Founders, global, Leadership, medicine, NFL, questions, social, Strategy, training, Uncategorized, WomenInWork.
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The primary theme of the week seemed to be how data can get pooled together to determine a signal and how to learn to seek the best way we, as individuals or teams, can discern valuable content to motivate actions on that information. Data is plenty – it’s a matter of gathering, curation, analysis and testing before putting it into action. This is done by any number and types of companies nowadays – this is a source of advantage seeking that forward-thinking ones make, in my opinion.

Since my notes were more detailed, I’ll try to keep this brief. The wonder people below hailed from banks (First Republic Bank), funds like Emerson Collective and Womens VCFund, marketing company like BEN or LikeFolio and then David Epstein’s Range, Sinead O’Sullivan’s work on space or the data Rohan Kumar collects with Azure Data.

Create a hypothesis. Test the hypothesis. Put into action, or iterate. Rinse, repeat. Good luck!

  • Samir Kaji, (@samirkaji) MD @ First Republic Bank (20min VC 093)
    first20republic20logo_gkg

    • Leading private bank and wealth management, before at SVB
    • 1999 – “anyone with a pulse could get a job” but he was working selling vacuum cleaners at dept store
      • Was told by family to get a real job – applied to first business SVB, got resume in and interview immediately before starting
      • First couple years were tough – learned a lot, but was 2004 until companies had scaled and were getting bigger
    • First 10 years were tech companies, series A and B and venture debt – post 2009 Lehman / Bear, went to venture group at SVB for 4 years
      • Made the move with a few others from SVB to First Republic, now leading team in micro-VC and early-stage tech co’s
    • Says the micro-VC is more entrepreneurial & collegial compared to extended stage VC’s
      • First fund is that you can get traction for a second or third one, fees as pressure – most likely why many people come from some wealth
        • Writing large checks as GP, as well
      • 2-2.5% management fees initially vs 1 / 25 or 1/30 model
      • 1999 – 2002 distribution was 0.9x and you’d get 10x return (whoops) – very difficult for funds to get 2-3x for LPs
    • Barriers to entry much smaller for $20-25million as compared to $500mln – institutional, etc — he can go to family friends and high net worth
    • Seed over next 5 years: contraction in space (wrong), but said there isn’t enough returns for funds to max it
      • 1100 in the 2000 year and burst
      • Continued prominence of Angelist platforms, maybe an integral part of the ecosystem
      • Starting to see use of data (Mattermark, CBInsights, SignalFire) to more efficiently identify and action at this level
    • Favorite book is Phil Jackson’s – behavioral psychology, Give and Take is another one
    • Really respects the pioneers of the industry and first-time fund-raisers
      • Mike Maples, Michael Deering, Steve Anderson, Jeff Clavier when it wasn’t a thought
    • Habit – reading book or blog post for 20min in the morning before email
      • Disconnect from audio / video devices and reflect for an hour
      • 2 hours a day for family/friends and disconnecting, as well
    • Thomas Redpoint, Mark Suster, Brad Feld, Strictly VC, Ezra at Chicago Ventures
    • Knows awesome fundraisers but terrible at returning capital – didn’t mention any
  • Collectively Driving Change, Laurene Powell Jobs and Ben Horowitz (a16z 5/27/2019)
    emerson-full-logo

    • LPJ – founder, president of Emerson Collective
    • Grew up in NJ – father passed away in a plane accident when she was 3 – 3 children.
      • Mom remarried so there were 6 of them. Wooded area of NJ.
      • Core values and dedication to education to get out of the area.
      • She went to Upenn – first student from her high school that went to Ivy League – ~20% went on to more schools
    • Addressing East Palo Alto school as a volunteer to help – 1st talk, 0 had taken SATs
      • What happens when you’re first to graduate high school? What’s it mean to the information from family?
      • What happens to be first to want to go to college, thrive&complete it?
        • To have the aspiration, can be a leader in the family – translator, get sucked into all problems
      • Started with 25 freshmen – would have to come with friends for responsibility mechanisms – for College Track
        • 3000 high school students, 1000 college, 550 grads
    • Collective of leaders, innovators – education inequities, access and need for enhanced/robust curriculum
    • 10 year time horizons – getting them together is scheduled with Monday all-staff meetings (3×3 matrix of videos)
      • 5 cities, sometimes philanthropic speakers or reports
      • Discussion of reading as you fall behind through third grade before switching to reading to learn – already behind
    • XQ as SuperSchool dream – 17 of 19 will open in August
    • Caring about impact and solving problems, not wealth increasing – wants access to policy or money and not taxes
      • Judged Giving Pledge for not wanting to be more philanthropic
      • Environmental, edtech portfolio, cancer / oncology investments, immigration incubator, new thinking to old problems
    • How do you know when you’re succeeding? Collecting data on everything they do.
      • Example: XQ – schools and districts, state of RI as switching to statewide competition
      • Chicago has good data for fatal/nonfatal deaths (I disagree)
    • Imperiled or important institutions like journalism and media need to be sustained, how many join?
      • Concentrating and following where IQ is migrating (hahaha – what a joke)
  • Data Infrastructure in the Cloud, Rohan Kumar at BUILD conference (Data Skeptic, 5/18/19)
    microsoft-azure-new-logo-2017

    • Corp VP of Eng of Azure Data Team at Microsoft – SQL and data services, open source, analytics, etc
    • Trends in data engineering in the cloud, serverless and hyperscale
      • ML and AI and enabling applications – shifting to edge vs cloud – analysts predict 70% will be on edge devices
      • Solutions and private edges – training in the cloud and deploy them on the edge applications
        • Data platform needs to be the right foundation
    • Highlight for him from conference: work they’ve done on relational databases in the cloud – as volumes grow, scalability challenges
      • Hyperscale for Azure and PostgreSQL, as well as MS SQL soon enough – system scales with needs (they’ve tested <= 100TB)
    • Acquired Citus Data, support scaling out the compute layer – strong team, great product, matches in Azure and open-source
    • Releasing serverless option for Azure database – costs designed to stay low and optimized
    • Analytics side: customers wanted to do real-time operational analytics – didn’t want to move them outside of their core product
      • How is data distributed and having compute be co-located with the data to gain Spark efficiency being nearest to node
      • Support Jupyter notebooks across all APIs to modernize to do more predictive analytics
      • Attempting to build out pipelines requires too much scripts, instead have Data Flows in Azure Data Factory – no-code and UI
      • Wrangling data visually and seeing if something can be recognized or learned to repeat across other columns/tables
    • Latency won’t be ideal if compute nodes occur nonlocal to the data changes – can’t do 50,000 nodes all at once
    • Excited for the future: Horizon 1 (next 8-12 months), Horizon 2 (~3 years), Horizon 3 (moonshots)
      • H2: Hardware trends, what do customers want? Pushing boundaries of AI and ML, healthcare, gaming, financial services, retail
  • Wide or Deep? David Epstein, author of Range (Invest like the Best, 5/28/19, ep. 133)
    • First book’s research lead him to get into specialization and finding kernel for next
      • Some countries: turning around national sports teams – why don’t we try other sports? Contrary to 10,000 hour rule.
      • SSAC – debating Gladwell – athletes have a sampling period instead of first gene – delay specialization
        • Used Tiger vs Roger – Roger had tried a ton of sports vs Tiger who was born and was playing golf
    • He was not good at predicting what people/public would attach themselves on to – 10,000 hour rule – race/gender as most talked (but weren’t)
      • 10,000 hour rule were based on 30 violinists in world famous music academy (restriction of range)
      • Height in American population vs points scored in NBA (positive correlation) but if you restrict height to NBA players, negative
    • Finnish cross country skier who has genetic mutation similar to Lance’s boosted
      • Sensitivity to pain and modification to your environment – also sudden cardiac arrest in athletes (what pushed his interests)
      • Book as opposition to Outliers and Talent Code – interpreted a lack of evidence as evidence of absence (genetics matter)
        • First year he read 10 journal articles a day and not writing – they were making conclusions they could not make based on their data
      • Differential responses to training – best talent were missed because we don’t know about training responses
    • Collection and exploration phase – competitive advantage for expansive search function to connect sources or topics
      • Has a statistician on retainer, essentially, to check models or surveys
      • Wanted to know what he was missing – “how come I broke the 800m women’s world record after 2 years of practice? – genetic difference”
        • Racing whippets – 40% had a genetic defect that gave them more muscle and oxygen
    • All of sports as a limited analogy (problem after Sports Gene; now, more tempered)
      • Robin Hogarth addressed “When do people get better with experience?” Don’t know rules, can try to deduce them but can’t know for sure.
      • Kind learning environment: feedback immediate, steps clear, information, goal ahead
      • Wicked learning environment: can’t see all information, don’t wait for others, feedback delayed/inaccurate
    • Study at Air Force on “Impact of Teacher Quality on Cadets”
      • Have to take 3 maths – calc I, II, III (20 kids randomized) – professors best at causing kids to do well (overperforming) systematically undermined their performance thereafter
        • 6th in performance and 7th in student evaluations was dead last in deep learning
        • Narrow curricula were better at the test that they had at the end would be negatively correlated with going forward in performance
      • Teachers that ignored what was on the test taught a broader curriculum (making connections vs procedures)
    • Learning hacks: Testing (wonderful – primed to test ahead of learning), Spacing (deliberate not-practicing, Spanish ex spread 4 hour twice, 8 hours), Mixed practice
      • Ease is bad – known time horizon for when you have forgotten again – interleaving and spacing mixed
    • Passion vs Grit (“Trouble with Too Much Grit” – Angela Duckworth’s research)
      • Duckworth did a study at West Point for East Barracks cadets – candidates score (test + leadership + athletic) was not good prediction of doing this (overall it was good)
        • Grit was a better predictor for making it through East Barracks – she questioned whether it had an independent aspect
        • Variance for grit was probably 1-6%, especially after “flattening” groups – looking at people that had a narrowly defined goal for short periods (cadets or spellers)
      • Cadets were scoring lower on grit at late 20s vs earlier – tried some things, learned others about what they want – grit is poorly constructed
        • Look holistically – if, then signatures (giant rave – introvert, small team – extroverts) right fit looks like grit – developmental trajectory as explosion matching spot
    • Choosing a match for a future them who they don’t know in a world they can’t comprehend – people that find good fits (in practice, not theory)
      • Paul Graham’s “Commencement Speech” that he wrote “Most will tell you to predict what you want in 20 years and march toward it.” (premature optimization)
        • Everything you know is constrained by our previous experiences – limited as a teenager – just expanding and learning as you go forward
    • Gameboy example – with so much specialized information that can be disseminated easier – can take from all types of domains and recombine them
      • System of parallel trenches – can be broader much easier now – hired people for Japanese and German translations
      • Japanese man profiled in his book – technology was changing faster than sun melts ice – didn’t get Tokyo interviews
        • When he got to Kyoto company making playing cards, he was a tinkerer who was maintaining machines – started to mess with them (arms)
        • Turned them into a toy, and it was Nintendo – cartoon-branded noodles (failed), and had toy development
          • Lateral thinking with withered technology – stuff that’s cheap, easily available – takes into other areas
            • Remote control, more features – wanted to democratize this and strips it down – LeftyRX only left-turns
        • Sees calculator from Sharp and Casio and thinks he can do a screen and handheld game – small games
          • Had issues with Newton’s rings so he found other small tech (credit cards embossed) to fix small pieces
      • What it lacked in color, graphics and durability (could dry it out, batteries would be fine, split it up, “app” developers because it was super easy to understand)
      • In areas that next steps were clear, specialists were much better – less clear, generalists were more impactful – depends on the specificity of the problem
        • 3M had a lot of areas for this, “Periodic Table of Technology” – post-it note came from reusable adhesive that had no use for
        • Only Chinese national woman to win Nobel – “Three No’s” (No post-grad, foreign research, membership in academy)
          • Interest in science, history – Chinese medicine for treatments of malaria – world’s most effective treatment from ancient text
  • Greg Isaacs, BEN (Branded Entertainment Network) (Wharton XM, Marketing)
    Print

    • Discussion of getting data from Netflix / Amazon / Hulu / tv to better match brands and advertising
      • Dirty data via a wharton grad who set up a survey style
      • Cohorts and demographics, along with psychographics
    • After getting data, attempting to approach Youtubers / social media influencers, tv spots and channels or shows to get their brands in front of the right people
      • More pointed, depending on what interests are for their cohorts
      • Creative storytelling as the change of cultural mind shift has increased
  • Understanding the Space Economy, Sinead O’Sullivan (@sineados1), entrepreneur fellow at HBS (HBR IdeaCast #684, 5/28/19)
    • Facebook, Amazon (3000), SpaceX (12,000) and other funding like Blue Origin / SpaceX / asteroid mining or travel
    • Global space economy as $1tn by 20 years – currently $325bn so it would need to 3x
      • Breaking apart space resources and otherwise – earth-focused (delivering or existing in space that helps earth)
        • Exploration or creating interplanetary existence
    • Running out of space in space for satellites – comparing to airplane docking / loading
      • $2500 per kg now to launch, used to be $50k / kg
    • Reliance had been on unilateral agreement for space policy – one tech startup launched a satellite that didn’t have permission (but no fall-out)
      • Food / grocery stores, wifi, phone, insurance pricing due to satellite data – reliance on services are increasing as the market increases
      • Thinks that we’re close to seeing the cheapest cost of launching – cites SpaceX, but won’t allow everyone to participate
    • Ultrahigh accuracy will require higher powered satellites – GPS, nonmilitary grade is ~0.5 m – thinks it will prevent autonomous vehicles solution
    • Ton of money going into asteroid mining but thinks it’s better for testing missions to Mars and figuring out the problems for future
      • Looking at Uber at start and say “people won’t get into a stranger’s car” or other cases as how we see the future – going to Mars, etc
    • Earth-focused space technology – 100+ launched satellite start-ups, micronano satellites, relay companies, downstream analytics
      • More touchpoints for everything in this manner
      • SpaceX will increase public and government intervention and within 50 years, maybe see a human launched there
  • Investing w Twitter Sentiment, Andy Swan (@andyswan), LikeFolio (Standard Deviations, 4/25/19)
    logo402x

    • 1700+ tweets examined per minute in LikeFolio – discovering consumer behavior shifts before news
      • Direct partnership with Twitter to create massive database and how they’re talked about to look for mentions
      • Purchase intent, sentiment mentions – trends across product categories or brands
    • Example – Delta (as host is a loyalist) – making adjustments
      • Expectations are the relative part – comparison to the baselines (metrics compared to itself as baseline)
    • Put out a comprehensive report on Apple day after keynote event – September 14, 2018
      • Consumers were unimpressed with iPhone lineup – more price sensitive than maybe they’d considered
      • Apple Watch was the silver lining – stock / sales may struggle over 3-9 months (upgrade cycles)
    • WTW version of keynotes – NYE resolutions – subscribing early to drive revenues the rest of the way
      • Purchasing mentions were only up 30-40% compared to 5 or 7x weekly mentions (big difference)
    • Shelf-life and how to consider the sentiment data – lead time may be binary corp event (same store sales or year)
      • Couple months with Apple, for instance, but with Crocs – resurgence that persisted to current time
    • Set up keyword structure and brand database – “I’m eating an apple” as opposed to an Apple mention – human eyes to ‘label’
      • “Closed my 3 rings” – apple watch but sarcasm / spam that wasn’t caught (estimates at 2-3% of data)
      • If spam / sarcasm are consistent portions of the data, doesn’t really have an effect
    • Twitter Mood Predicts Stock Market – Bollen, Mao, Zeng (88% and 5-6% predictions) – fund closed up shortly
    • Advantage being better than analysts or pricing and codifying sentiment behavior compared to past quarters, data
      • Some consumer trends analyzed as true tipping point or actual movements
      • Public prediction before productizing their modeling – made 40 and were 38-2 (confidence as highest)
      • Investing as very specific, concentrated and holding ammo compared to trading with option spreads and has risk profile built
    • https://arxiv.org/pdf/1010.3003.pdf
    • Diversification as 20-25 stocks, doing it over time and with conviction can be done
    • Starting in Louisville for his fintech company, host in Alabama, for instance
      • Talent can be more difficult to seek out but the world is globally flattening via the internet
      • 70% lower overhead cost than being in SF, for instance – developers would anyhow be in Slack channels / not a big deal
      • Reduction in cost maintains greater control of company since they don’t have to take reduction of equity to gather more
    • Network effects don’t matter if you don’t have a great product or product-market-fit
    • Free association game
      • grapenuts: best cereal (Co’s been around for 100+ years, branding and $ spent and they can’t figure it out)
      • Fintech Future: individualization and customization
      • Victory: most important thing in life, achieved what you set out to do – setting goals and achieving these
      • Bourbon: pappie von winkle – collecting for dust on shelf 10 years ago and now going for $3000
  • Jonathan Abrams, co-founder Nuzzel news (Launch Pad)
    nuzzel

    • Landing hedgehog as the mascot – animal as cute, 99designs and surveying 50 friends – 25 men/women
    • Discussing how VC’s don’t have great advice, especially when general – too hard to be an expert in such a wide range
      • Finds it easier to be very context-driven and providing solutions or action-oriented questions to founders
      • Investing now easier with YC and Angelist, etc…
    • Timing and other mistakes he made – out of control, losing equity part early (but depends on where you are / what you need)
  • Etan Green, professor at Wharton (Wharton Moneyball)
    • Discussion on paper of how sharp money comes in at horse racing tracks
      • Difference between sites – fairground action compared to tracks, and specific to region (New Orleans, Minnesota, for instance)
      • Big sharp money comes in very late, pushing the underdog prices to higher values
        • More expensive to bet while at the track than the APIs enabling higher volume bets
        • Books at the track are incentivized to bring in as much $ as possible, so $0.20 on $1 vs $0.15 rebate on $0.20 for volume
    • Value and differences in how people will bet
  • Edith Dorsen, Women’s VCFund founder, MD (Wharton XM)
    wvcfii_logo

    • Talking about their focus on first fund, approach
    • Opportunity for finding diverse founders, 25% of their fund had a woman founder
    • Starting a second fund
    • Had consumer tech, enterprise and not so much b2b, but trying to increase
      • Hard to say or give advice if one of their partners don’t have expertise in the domain
  • Sophie Lanfear, Silverback Films producer on Netflix “Our Planet” (Wharton XM)
    • Species that are dying, going extinct
    • What we can do about it
  • Aliza Sherman, Ellementa co-founder, CEO (Wharton XM)
    logo

    • Discussion of client talks when she made them aware of her cannabis endeavors
    • How friendly the community is
      • Then knocked the idea that ~30% was female to start before diving off a cliff
    • CBD to mask opioids – does it really do anything from a pain/treatment perspective, though?
      • Anti-chemo because of CBD – really?
    • Sounded too rehearsed – made it sound fake, not genuine
      • Passion/motivation/mission and kept repeating as the best advice she could give – painful

Dissecting the B2B and B2C Models(Notes from April 29 to May 5) May 23, 2019

Posted by Anthony in Automation, Digital, education, experience, finance, Founders, Hiring, questions, social, Strategy, training, Uncategorized, WomenInWork.
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Here we see a few longer episodes to discuss investing into different biz models. I listened to a collection of founders that started funds, did a bunch of investing, bet on themselves, worked hard and ultimately caught a few breaks in spaces that were extremely unconventional and some that weren’t.

Keith Rabois – if you don’t know who he is, I’d strongly suggest looking up some of his work – went over the differences he sees as an operator compared to being an investor. What do you want to focus on in each position and what competitors to focus on.
David Frankel is another current MP who started by building and exiting his own companies. His discussion focused on how he tries to align founders and investors at the early stages of start-ups – how he frames this to be most productive. His secret though: following the founders, themselves, and trusting they have ideas that can carry ideas.
Another MP at Founder Collective is Eric Paley – though he came from the biotech space before joining.

Amy Frederickson was a fantastic listen on the Business Radio channel. Taking second hand, vintage items and giving access to others who see beauty in them. She connects contractors in upholstery and sourcing furniture that may not be seen for what it could be and connects them with those that may have great use. I’ve heard similar stories to this being done in the second-hand space like boutiques or even goodwill – connecting foot-traffic-primary stores to the internet and allowing everyone a chance at these creative, hand-picked items.

Angela Bassa was on DataFramed talking about her managerial experience in the exploding data science field (and before). How she’s had to adapt, how she treats peers and effectively communicates – all very useful in discussion of solving the right problems in an organization.
This was a great segue for me into another a16z episode on decision-making. How to ask the right questions and ensure you get a sufficient answer. Mining the proper data for it and turn those into insights.

To finish up and not make the intro super long – I kept notes on a few other investment managers and the differences in strategies for different clients, investors and the framework for posing performance in the right light.

I hope you enjoy the notes and please check out everyone’s episodes!

  • Keith Rabois (@rabois), Inv Partner at Khosla Ventures – If You Can’t Sell Them, Compete With Them (Invest Like The Best – 12/18/18)
    investors-khosla

    • Investor, entrepreneur at Paypal, Square – investments in AirBnB & Palantir, Opendoor
    • Paul Graham’s “Clients too stuck in their ways, compete with them” – when a person doesn’t want to take advantage of tech
      • Creating money, vertically-integrated business – build the platform (adoption risk, sales cycles, economic issues for being reliable on others)
        • Provide end product to customers
      • Quintessential example as Apple – control component to create user experience – derivative product doesn’t control own fate
    • 7 Powers – book for strategic leverage
    • Irrational for the 2 guys in the garage – has to be unexpected reaction to market, team, etc — but can’t take over from scratch by following ‘playbook’
      • He’s in the business for investing in a top 100 company
      • Strategic leverage should be that the accumulated advantage should be easier – skill / talent ability normally degrades
      • Anomalies give you insight into a paradigm shift (can’t get 10x growth from UI, etc…) – end of why questions should be incrementalism
    • Secret is a belief system about the world that others don’t appreciate it – time determines if it’s true or false
    • Home as primary home as more a commodity than an art – touch/feel. Not works of art.
      • Focuses on digital health, where data is abundant. Network effect there.
      • References – take Opendoor – could make an offer for house that’s fair but you’d be uncertain with money or closing on time
        • Knowing people will make the credibility factor easier – trust matters by vertical/industry
    • Paypal had a $100k guarantee for the $ – partnered with Traveler’s Insurance as trusted brand, and used FDIC for insurance up to $100k
    • Healthcare costs ex-LASIK seem to be going up – mediated through payers (ins co’s)
      • Can improve UX, reduce cost and improve quality at same time with technology enabled – Guardant Health with liquid biopsy
        • Made it significantly cheaper to get biopsy results
    • Giving founders feedback on what they’re doing – how are they liking what they’re doing
      • As an operator, needs to make a 70% conviction and decision (as an investor, he needs to be in the 10-50% suggestions)
      • Assessment of talent is similar and understanding tradeoffs may be both of operator/investor
      • Risk profiles are different – understanding as operator where the strategy changes over time for the company (investor may be 0x to 10x)
      • Investor gets paid to learn new things, try new things – much more like baseball
        • Operator, conversely, may be like football where you should try things but need buy-in from others with your team
    • Lean start-up as stupid idea – cohesive strong strategy that can be done with less capital
      • Product-market fit isn’t required for validating fixing an idea / postulation (fat start-up – $10mil to fix real estate, for instance)
    • Steve Jobs mentioning saying No to good ideas (10% ideas) vs the 10x ideas – need experiment to get to that capability
      • Bad ideas in venture: lots of failures – 30% in baseball is good
      • Why does nobody emulate Apple or other successful companies do? Avoid the failure mentality.
        • Obsession about design and practical thinking – not empirical thinking. Book: Creative Selection
    • Interview question:
      • If you are a product, how would you describe your value proposition? – initially had product instincts – wasn’t world class, but knew business
    • Founders want to affect the real world – computer was escapist initially, but now it’s a controller for the real world
      • New capabilities / opportunities, lots of people leverage that for positive behavior, so now he says there are more ‘hard science’ innovation
        • Healthcare, biotech, autonomous, etc…
      • Early stage, pricing matters less because you just need to be correct directionally for the company, not so much off
        • How much, though, is risked by industries or risk/reward – what’s on table?
        • Later stage matters more for balancing portfolio.
    • Learning through osmosis with someone that’s very smart
      • Calling people to get feedback on certain ventures based on other talented people’s responses
    • Is there high-growth startup ex that hit escape velocity that a large competitor has beat?
      • Being paranoid is smart, but focused and talented team will out-execute a large entity
    • Narrative violations – common being fake news – average American is more informed than any other American in history
      • Average American is more informed than any other person in history, by orders of magnitude
      • Interesting question: given the resources, is the person smarter or dumber than what they used to be? Voter more/less informed?
        • Accessibility to products is so abundant now – anyone can Google or find other information
          • Definitely true in the US, maybe harder for other areas in world
      • Platforms are now more democratic versions of printing presses
    • Different components to acquiring and learning skills (athletes as needing to do, guitar probably playing songs, surgeon both reading/dexterity)
    • Most investors forget the lessons of strategy, he thinks – differentiation is your friend (mentions YC as having different mentality, economics)
      • Not much pioneering at VC level – Horowitz (and his autobio) initially, but not much innovation since – Khosla, Lux as vertical integration, maybe
      • Midlevel manager of engineering can be efficient from recruiting standpoint – what level you’re at, where you can pick from 350 companies (to 10)
    • Upside of Stress – book that’s very important, he believes — more stress and tolerating it is how you can be more successful
    • Things that stick with him – how they remember how others impacted him or vice versa, little things
      • Cascading of good/inspiration & how it changed trajectory – rewarding
  • David Frankel (@dafrankel), MP at Founder Collective (20min VC 088)
    f9bf1622-04df-11e7-a9d6-0242ac110003.founder-collective-logo-black-tinypng

    • Founder, CEO of Internet Solutions (ISP provider in Africa) then became a super angel
    • Founded FC with his partners for seed stage investing
    • Graduated 1992 in Elec Eng undergrad – IS acquired eventually for $3bn in mid-90s
      • Was doing ventures with FCF, made many huge mistakes, he said and remained on Board for acquiring co
      • Went to HBS – hated first 3 months but then graduated in 1993 – b2banking, b2consulting (jokingly) – but met a ton of great people
      • With capital, could back almost all of his classmates starting (first or entire checks) – had 27 companies after graduating
    • Challenge for FC was to ask how to institutionalize seed stage investing?
      • Not a lifecycle fund, just seed stage – may follow in Series A (not as lead), but hadn’t through the first stage
      • Wanted to create most aligned fund with founders – not net buyer when company is net seller
      • Believe they can make the most difference up front but not as they go forward
        • Who can be first hires? Management team gelling?
        • 2 years in, he says, they become much less useful – happy to be on board or pull off
    • Working with Chris (over at a16z) – says it’s a waste of time to look at incremental
      • Chris pitched 2 ideas before Site Advisor
    • For people not in the network – David loves hanging out with people and is very curious
      • People default to what we love doing – have to enjoy hanging out with them
    • Invested in Uber but he didn’t know in a million years how that would have been predicted on what they did
      • In the moment – Groupon just completed $5bn round and they were invested
        • Was excited about a competitor in Korea as he liked the founder, even though he believed it was “house of cards” industry
    • Comparing engineering student to business school – eng 1 in 1000 idea is Facebook, but volatility very high – business school lower volatility
    • Term Sheet as read blog, uses Twitter / TweetDeck to curate lists
    • Typically anti-sector because he follows founders moreso than industry specifically
    • East Coast vs West Coast (center of universe) – output of talent from Boston and east coast is different
      • Depends on types of company (consumer / mobile is Bay Area-centric) – Boston good for tech/biotech
    • One of favorite portfolio companies-PillPack in disrupting pharmacy & something simple
  • Amy Frederickson, Founder of Revitaliste (Wharton XM)
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    • Vintage furniture in interior design space – making it very simple to reupholster or otherwise refinish furniture
    • Discussion of her partners on the furniture side – volume doesn’t necessarily make it better if they can’t do more work / spend more hours
      • Limitations that she’s had to be careful – try to change mindset and buoy them
  • Eric Paley (@epaley), MP at Founder Collective (20min VC 089)
    • CEO, co-founder at Brontes Tech before acquisition by 3M for $95mil
    • Started a web developer company with brother and cousin in 1990s, had a bunch of startup clients and others that weren’t
      • Abstract Edge – still run by brother/cousin, but when the dotcom bust happened, sees overconfidence
      • Bad times – may learn better – he wanted to go to biz school & learned a ton
      • Looked at 3D imagery while in business school thru MIT partnership – interesting and looked at the space – had to ask “What to do with it?”
        • Facial recognition, industrial inspection, endoscopy, video games, etc…
        • Late in game, struggled with money raising and decided to look at dentistry (mass customization – every orthodontic device as singular/unique manufacturing, dental impression but if you could change this, you could have a lot)
    • First investor was David Frankel (from before – $500k into Brontes)
      • David calling and say “Thought the founder liked me but would you mind doing reference call with them?”
      • “Can you sit down with the entrepreneur and let me know what you think? – I’m out of town for 2 months in South Africa, so I trust you.”
      • Started to look for deal flow for David while he was out – with the other guys
    • As he was looking at leaving 3M, he was talking to venture companies and saw that top quartile VC’s didn’t feel like they were doing as well as they had
      • Came together with the 4 partners and should start a fund – underlying premise with better alignment at seed stage
      • Pro rata doesn’t align founder to venture – founders don’t get the option if they’re not doing well
        • Dollar average up cost-basis vs down. $8, 10, 15 million valuation vs $30, 50 or 100 million – but it’s more along the average dollar
          • Weighted later with pro rata investing
    • Believes there are plenty of seed funds that are doing well, but he’s surprised by the limited amount of funds that stick to seed stage
      • Conventional wisdom / FOMO for lifecycle / follow-ons
      • They have 3 unicorns at that time as well as a lot of good returns outside of that
    • Fooled By Randomness – NNT book as his favorite applicable to VC, frameworks for tilting the probability
    • Founder role model for him – said he was lucky to have Kelsey Worth, founder of Invisalign ($1bn company in 5 years)
      • She was on the board, would come out a day a month and help him out – dive deep and give an opinion without being dogmatic
    • Mentioned a recent investment as Cuvee – attempting to increase wine storage / pourability to 30 days
  • Angela Bassa, Director of D/S at iRobot (DataFramed #48 11/12/2018)
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    • Managing D/S Teams and how to organize development of algorithms and the processes
    • Corporate business organization of data science teams vs packaging and product building or open source work – known for more of that
    • Undergrad in Math, went to Wall Street after – got a lot of data analysis in the market, wasn’t a match for her ~15 years ago
      • Then went to strategy consulting – focused on pharmaceutical strategy, testing and experiment analysis
      • Went to marketing services industry – finally saw big data – (no longer any single machine work)
    • Talked about excelling as an individual contributor and moving to management as a different discipline in itself
      • First person she managed: quit the first day, had been a PhD graduate and assumed he was working with her, not for? (What a prick?)
    • Worked with teams in ops, finance, IT, engineering, R&D, etc…
      • Re-orgs for data science portion – always changing branches
      • If data science isn’t the product, within legacy/corporation, the team needs time to figure out the objective of the organization
        • Get past exploration and become experts
        • Her take on managers would be that they create space (o-line) for individual contributors to do their work as quarterbacks
    • As teams grow in size over time (using her experience as Manager and Director from ground up), potential vs low-hanging fruit
      • High visibility and high sophistication to give a leg up on what could be possible for the organization – low-hanging fruit is easy
      • Starting data science team have generalists but very good to mature into a better team, specialization
    • Humility for data scientists – avoiding the correlation factors that you build from gathering and going through data initially
      • What kind of questions should be answered?
    • Parts of data science that you can’t teach – how vs wanting to answer questions
      • Certain bootcamps are worthy of what they teach, organize – mentioned universities as not having programs until recently
        • Mentioned a team member trained initially as marine biologist – traveled and researched pods of dolphins
          • Modeling expertise for a fleet of robots as operating independently and together
    • Harder for C-suite to not be able to talk data in the strategy sessions for decision making
      • Common pitfalls of manager:
        • Data team doesn’t know how the data is gathered or where all it’s coming from
          • Have a data party or something to organize the data creation, designed, labeled, and stored
        • Not overpromising or underpromising
          • Lend credibility to actual outcome – being honest, transparent with other disciplines to interrogate situations
    • Her paper for HBR – Managing Data Science for AI
  • The Future of Decision-Making (a16z May 1, 2019)
    • Frank Chen and Jad Naous (via YT initially) of Enterprise Investing team
    • Digital transformation where industries are shifting to this design
      • Changing from manual to automated, digital processes and more agile
      • People’s roles will start to shift around – demand for new tools and dynamics for who wins in spaces
    • Product management – features or bugs would have been surveys manually or collecting data to figure out problem and sort them all
      • Now, the tools automate these from the product itself, often – now they can look at the dashboard of numbers
    • Marketing side: Growth hacking and market engineering – low cost to increase growth in certain parts of customer segments
      • Decision-making and creative work is the human part that can’t get automated
      • More people in the middle of the enterprise are becoming analysts – BI tools aren’t going to be enough
    • Types of tools should be operational tools that give answers to questions that they need immediately
      • Where is the bottleneck in the funnel? How to eliminate?
      • Competitor is having a flash sale – how much revenue is impacted or what segment should I target?
      • Generally, analysts would have to spend time and $ to get an answer (“$10mil to get a report that you didn’t need in the first place.”)
      • A/B test has to be continually monitored
    • Jad worked at AppDynamics – one of easiest things to sell is Performance Monitoring Tools – prevent systems from going down
      • Harder to prove ROI to other orgs – sales, marketing if they need continual results / ongoing
      • Want to have self-service tools vs full-service from someone else
      • Not analysts but instead the functional operational people – marketer, growth hacker, product manager, business people
    • AirBnB already open sourced SuperSet – ad-hoc access to data for results, used by 100s co’s – presentation layer product toward technical
      • Imply (one of his investments) for analytics and processing layer – store streaming data into database and do the analytics / presentations
      • DataBricks – processing layer
      • ETL layer is the one that has not gotten traction – domain specificity (healthcare vs ride-sharing or finance)
        • Currently too much integration issues and organizing
    • 3 categories – operational intelligence – sell tools for incumbents to enable intelligence
      • Target csm or sales or product manager (crowded currently, hardest to win)
      • Segment-focused vendors – sensors and analytics to oil & gas companies, for instance
        • Vertical solutions for industry
      • Vertically-integrated, operational intelligent company that competes against incumbents – Lyft / Uber, AirBnb, etc…
        • Biggest value but hardest
    • Non-IT buyers: Grocery, Construction, Oil & Gas – operationally efficient and commoditized as long-standing business
      • Minimal change in efficiency can be a huge value (Costco at $12.5bn ’17 on 11% margin)
      • Capital deploy for Exxon Mobile ($230bn capital invested, ROIC 9.5%)
    • Particularly excited by SuperSet, Imply – infrastructure tools – people seeing analytics and tools as necessary for business
      • Software vendors into large, existing industries – hardest would be economic profiles will be very different
      • Selling into stagnant markets (minimal margin) and not used to new tech – cycles will be long
        • Huge businesses to get in
      • Need to educate/prep investors – really bright light at end of tunnel
      • Need to become experts and trusted advisors in the domain
      • Help with software and services in the industries
  • Josh Wolfe (@joshwolfe), founder/MP at Lux Capital – Tech Imperative (Invest Like Best, 4/23/2019)
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    • Tackling massive scale problems – China as infrastructure power vs the states
      • State or story-sponsored role becomes more powerful with internet-enabling
    • Checklist of 5 main things (Xander of GoPro, now SurveyMonkey)
      1. Nail down the strategy of company – what are you going to do?
      2. Deliver capital to pursue strategy – clear, cohesive and sell
      3. Brilliant team to execute, drop others to start mission.
      4. Communicate the hell out of it – partners, competitors, media, press – keep consistent answer.
      5. Hold people accountable – if people aren’t and the goals aren’t clear, not effective organization.
    • Story – memorable, easy to repeat, conveys meaning in a clever way
      • Want to elicit an emotional reaction – putting meaning in a story for an individual
      • Portable ideas as superpowers – leaders being able to harness this, or the audience (maybe of the shared values)
        • How to aggregate the ideas
    • Abundance of liquidity to illiquidity or leverage (eg $200mln check in growth-equity round at $1bn (from $100mln) but if down-round, then the check has a big stake in it as creditors)
      • LPs and endowments are overextended – he’s telling people to look at secondaries, not venture
      • Sequoia was appealing to greed – sop it up and have to write bigger and bigger checks (get a big fund and put to work)
        • SoftBank as big problem pricing up rounds – either visionaries or producing paper assets as collateral against debt
        • Tesla as horrible balance sheet and illiquidity
    • Zoom doesn’t need to need a big business, but Uber/Lyft depends on strangers and investors to buy in to future
    • TurboChef (fast like a microwave but toasty like toaster) – Subway vs Quizno for $4k ovens
      • Sell to Subway – 20k places for purchase orders – but they got Coca Cola to buy the contracts for Subway in exchange for them to be in the stores
      • LatchAccess (one of his co’s) – remote by cloud from phone to consumer
        • New build and buildings (now 1 in 10) – did contract with WalMart / Jet
    • Some firms get lucky and parlay it into success – maybe wrong in process
      • What was process? Where did you get lucky? Where were you smart? How did you structure deal?
        • Benefit you, founders, investors
      • Price vs intrinsic value – public doesn’t do this, but path-dependent in portfolio (repeat entrepreneurs)
        • Team vs sole GPs – total equal partnerships and all mixes
        • Portfolio mix, super early stage, low probability of high financing risk
        • Others who are good at metrics / business, growth metrics
        • Subsector – fintech, crypto, etc… as experts
    • Tribes with a mantra
      • “Life sucks” – gangs, people homeless
      • “My life sucks” – 9-5 and get home and just crack a beer and grow for that
      • Like what they do – “I’m great, you’re not” – silo information, zero-sum and leave as free agents
      • Lux as “We’re great, they’re not” – robbers cave – how to get people to bond vs competitor / enemy
        • Sometimes it’s an entity – exogenous threat, devil – big oil, martians
      • Ultimate “Life is great” – mission driven, maybe Google / Facebook initially – cause/effect of money
        • Still climbing mountain, goal to reach – complacency maybe
    • Judgment: should we be disciplined about price?
      • Andreesen said only 10 good companies but you want to be in each one – but there are 1000s of decisions to be made
        • Pay any price for the ‘best’ or be discriminated – lead to FOMO and price action
        • Mentioned Cruz and setting up GM deal ($20mil at $60post vs $20mil at $80post, but GM came in and paid 11x)
      • In private markets, if you rejected them, you don’t get another chance.
    • Values: observable around morality (tech around morality and morality around tech)
      • Existence of an option is a good thing – military as a hot topic, tech as both sides affected
        • Had invested in Palantir offshoot for virtual wall for Homeland – has lots of immigrants who were deeply affected
      • Drone options or even autonomous driving (say, those who die as organ donors for the donor list)
      • Compares China’s pipeline from government to technology – decisive advantage will let them be ascendant
        • Moral discussions slow this down – barriers to experimentation
      • Real value of CRISPR isn’t the feature, but what it leads to in the platforms (ex: X-Men / Cerebro – Variant for rare populations)
        • 23andMe and Ancestry as targeting the ‘boring populations’ vs what they’re doing
          • 1000 individuals for rare conditions that have a metabolic rate that raises in the evening – what if this was monogenic / targetable?
    • Sci-fi vs Sci-fact as narrowing — ‘it will rot your brain’ as doing the next $10bn+ industry
      • Mentions engineers and Fred Moul (founder of Intuitive Surgical) starting Orace – just betting on him to recruit the right people
        • $8mn at $20mln valuation – for 5 years $90mln forecast and $450mln – then got a bunch of investment)
          • Exit for 63x for $6bn to J&J – completely flawed process on an order of magnitude
    • Directional arrows of progress if spotted increases probability of success on subsector
      • Lighting: burning flame -> bulb -> led; memory, energy density
      • Talked about Calliopa – he wanted to focus on gut-brain access – taste / sugar receptors (Charles as Chilean professor at Columbia)
        • Half-life of tech: 50 years ago, 25 years ago personal computer, 12.5 years ago laptop, 6.25 years phone, 3.5 iwatch, 1.5 airpods
          • More intimate over half-life and improved
        • Had to meet “Rearden” – “I can get rid of that” – Bill Gates’ right hand guy, polymath, PhD neuroscience after undergrad as Classics/Latin
          • Put on wrist strap that could detect 15k neurons that innervate the 15 muscles in your hand – perfectly model this
            • Can control it just by thinking of turning on whatever you’re speaking of
          • We don’t have input problem – we have output problem — too linear
            • Series A and Google/Amazon invested $30mln – want to sell after maximum value
      • Do you find companies that touch near the directional arrows?
        • Don’t need to implant in brain, can read the neurons – 5 years ago you didn’t have everything that was required – power, IoT
    • Moral imperative to invent technology, instruments to invent genius – encounter the technology that eventually inspires others
      • Losing touch with humanity – where is the song after sung? Find way to reduce human suffering.
    • Are there enough entrepreneurs in real technology frontiers? Is vs ought (jokes about competition)?
    • If you can spot “What sucks?” – can you discover something “Wait, what?”
      • 100mln mice – can’t you put sensors/automation for this?
      • Document storage (Mushroom vs atomic storage, not REIT for storing docs) – banker data, scan them – IronMountain can’t do it
      • Entropy information – he gets more optionality by giving information, but death of privacy is coming with convenience
        • Mentioned graphic novelist “Why the Last Man?”, side one called “The Private Eye” about everyone being surveilled – wearing masks
        • Socially and personal privacy is a losing battle but industrial side makes sense
        • Mentions blockchain for voracity – Banksy for private store (analog), authenticity
    • Special operations spending time for 2 weeks – Asia: Philippines, Thailand, Malaysia, Singapore, Japan
      • Coalitions forces, training, sniper, subsea, Seals, cutting edge tech – able to look at things for laser targeting
        • He was there for “What sucks?” – humbled by voracity, proud by the intelligence and what he could do and who he was with
      • Optical signals for those that get through program are the opposite of the big guys – stunning, talented, quietness “stoic intensity”
  • Ayan Mitra, Founder, CEO at CODE Investing (formerly Crowdbnk) (20min VC 089)
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    • Enterprise architect and tech mgr, worked with M&S, Orange, and First Direct
    • Software eng by trade, started in mid 1990s and built internet framing for Bank Offers Direct
    • Was in NY when Kickstarter kicked off in 2010, and saw the regulation was ready for this type of investing
      • Made the concept popular, regulated funding, or Kiva-type – early stage investing is a lot more popular in Europe/UK
      • JOBS Act as regulation freedom for positive step for alternative financing
    • Wave of changes where technology is being brought on the systems and the benefit goes to the investors and markets
      • Quick and transparent – believes it would’ve happened regardless
    • Crowdbnk – reactively do due diligence, price and valuations – invest alongside with investors on their platform
      • Look to raise growth capital for equity and debt – not a pure platform/marketplace
      • Minimum / maximum – equity looking for $500k – 2mln pounds, debt – secured/asset-backed $1ml – $5mil
        • Investors – $10k pounds a year to be diversified and properly investing
    • Valuation class by Ashwin (NYC) – intrinsic valuation (creating, discounted by time and risk) or momentum valuations (price willing to pay)
      • VC could benefit from diversifying investment base – early round by Index recently
    • In crowdfunding, consumer brands may have an easier time going down crowdfunding pick
      • Harder for others to understand some of other sectors / SaaS, for instance
    • Debt funding is #168bn and growing, but small compared to financial services
    • Drawing attention as a focus over time, consumer behavior changes
      • By being more efficient, they can return value to investors and people on the platform
    • Book mentioned: Intelligent Investor – Ben Graham
      • Seth Godin’s blog
    • War chest vs planned capital injections – not a binary answer (eg: compete against Uber – good luck without war chest; tech-enabled services)
    • Funded a company called Breezy – simplifies user interface for older generation, potentially – team/value and invested by US VC’s
  • Andrew Hohns, President, CEO of Mariner Infrastructure Investment Management (Wharton XM)
    • Conceptualized and founded IIFC Strategy as part of his dissertation at Penn
      • Funding gap in project finance to address world’s infrastructure needs
        • Talked about growing projects in Africa, India and others
    • Started a fund as he finished school – raised $500mln for capital projects
      • Including a $1bn transaction with African Development Bank completed with multilateral bank and private investors
        • Provided approx $650mln in additional lending capacity
      • Credit Agricole in 2017 that was “biggest impact investing deal yet” by Financial Times to allow an extra $2bn of funding toward green projects
    • Managing the originations networks for funds with relationships with many global financial institutions
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