One man's opinion on Venture Capital Basics

Tied into an investment

It's hard to get an investor to put money into your company, because it's so hard for the investor to get his money out.

What happens when things go south? Do you put more money in? What if no one wants to buy out your position (common in the US). Consider the following situation. A new investor wants to put in 1 mil into the company. If he buys from you, then he may own $1 mil worth of stock, but none of the money goes to help the company improve their operations. But if he buys it from the company, the money will go into operations and improvements.

Be Dumb

User interface, simple/stupid.

Make it reasonable and easy to use.

I remember a conversation I had with Owen Thomas. We argued on the concept of having your data on the machine in front of you, or if it could be out there in the aether. My argument was that people don't care WHERE the data resides, just like they don't care HOW most things work. They just want it to work.

Open Source VC?

Can this work? Or would this end up in group think?
Or would we have the same problem of having people degenerate into profanity and outrageous comments?

Don't know, and no one seems to have tried it before.

Why I hate regulated deadlines

They're always squishy.

Let's look at HIPPA.
It should have been implemented.
But it's not.
why?
because what Congress can mandate, it can also push back.

Self introspection

Do I ever listen to myself?
No.

I ramble, rant, rave, but rarely listen.

Should you listen to me?
No.

Check the title of this blog: I am, have been, and will be wrong.

Listen to me only when I'm less wrong than you are.

Play at the top of your game

Don’t let things distract you when you’ve got to be concentrating.

It can be a tough thing to do. Life has an unfortunate habit of interrupting with life changing events.

Part of delegating authority is to allow your company to withstand the stuff life personally throws at you. This is the key element of putting the company ahead of your ego.

A wonderful dream

http://www.time.com/time/insidebiz/article/0,9171,1101040712-660965,00.h...
This article goes into the concept of having internal markets determine the strategy/course of a company.
I'm all for this idea.
Actually, let's expand the idea a bit more.
I'm already on the record as saying that you should outsource everything but sales and innovation, so why not get the outsourced partners, suppliers/customers in on the action as well.

Yes, it's dangerous.
No, it probably won't happen over night.

But why won't you sign my NDA?

Question keeps coming up, and the answer is 'because'.

Long answer: I invest in early stage companies; there are a lot of them. If I sign an NDA early in the investigation process, then there comes a whole host of liabilities, without much likelihood of success.

Why we do things

"We do THIS because it gets us the greatest benefit, for the amount of resources, in a better way than anything else we can come up with."


This seems to be the underwritten business motto for every business I've ever seen. From retail to restaurants, drug dealers and educators.

At the core, it makes sense. If there was another way to get better benefits with fewer costs, why wouldn't you do it? Costs is an all inclusive figure, switching costs, financial costs, emotional, physical, social, etc.

Benefits is more than financial gain.

Cyberpunk coming true?

War without flags

http://www.wired.com/wired/archive/12.07/view.html?pg=4?tw=wn_tophead_7

Having been a geek in the late 80's, playing paper-dice Role playing games, a favorite genra was Cyberpunk. Influenced by authors William Gibson, Greg Bear, and the article's writer Bruce Sterling; movies like Bladerunner and Running man. This was the future-dark vision of the world.
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