There is no middle ground

While I’ve been very vocal on my Twitter feed for months about Trump I haven ‘t put up any long form content here about it. Maybe it has just been easier to shout into the Twittersphere than it was to really sit down and talk about the challenges ahead of us. Maybe I wasn’t ready to put it into a format that exceeded 140 characters. And for some time I had hoped that maybe things would moderate and calm down.

They haven’t. And in fact they’re getting worse.

Like I suspect many of you did, I woke up the morning of November 9th pretty upset. I jokingly called it the trifecta of crap: 1) I was tired, having stayed up late watching the election returns; 2) I had too much to drink the night before as the returns rolled in and had a headache; and 3) Donald Trump was our president elect.

My first instinct was to dress in all black and head into mourning. It was a depressing day in my view of America and I was ready to go crawl into a hole. But then I read a few emails from portfolio CEOs concerned about the future. And I saw one of my daughters who was upset both because of Trump and because she thought that meant we were going to have to move (we had jokingly (?) talked about finding a new home for a few years if Trump was to be elected). I paused for a few minutes and thought about both my reaction and the reaction of the world around me and realized that I needed to think about things differently. First I penned a note to our entire portfolio that I shared in a previous post – the note essentially said “let’s take a step back and see how this plays out before we all react”.  Then Greeley and I sat down with our kids and delivered a similar message. We live outside of Boulder and our kids go to a public school one town over that is mixed in terms of background, socioeconomics, religion and politics. We had a good conversation about how some of their friends (and friend’s parents) were going to be happy about Trump’s election and some wouldn’t but that they shouldn’t place value judgements on either – let people react the way they were going to react. I then went and put on my brightest shirt and went off to work trying to muster as much positive energy as I could (tweeted about that here, in fact). I took some heart in knowing that we actually know quite a few people who voted for Trump (all of whom are decent, caring people).

That attitude is no longer working for me, however. Somewhere in the craziness of the first week of Trump, I’ve lost my ability to stay positive. And I feel the need to be clear – in greater than 140 characters – that I think America is on the wrong track. Trump has lost his hold on reality. A president with no popular mandate and a historically small electoral college victory is pandering to the most extreme and hateful elements of our society. His views on issues up and down the policy stack are wrong. They are un-American. They divide us. They make us less safe. People of good conscience MUST speak up. On social media. Everywhere online. In person.

History will judge our actions and words in the face of Trump’s threat to American ideals. Stand up and be counted! There is no middle ground.

Free Money | Supporting Entrepreneurial Non-Profits

escrowupAt Pledge 1% our mission is to encourage entrepreneurs and companies to give back to their communities through the donation of equity, product, profit and time to non-profits. We launched this program less than a year ago we already have over 1,000 members of our community. And it’s growing quickly.

As entrepreneurs ourselves we’re always looking for new and innovative ideas that help us achieve our mission. Today we’re announcing a major new idea in connection with SRS AcquiomEscrowUP. The idea behind EscrowUp is as brilliant as it is simple. When companies sell, buyers typically set aside a portion of the purchase price (often 10-15% of the total deal value) in case unexpected expenses come up. For simplicity sake these escrows are typically put in non interest bearing accounts (the accounting of the small amount of interest generated relative to the total deal value isn’t worth the hassle). Often this money sits in escrow for 18 months or more. EscrowUP is a program that places this money into an interest bearing account and directs that interest to charity. To be clear, the parties can still pick an interest bearing account if they’d like and the account can still generate excess interest for the program. It’s a win-win for everyone to participate and all managed by SRS and Pledge 1%.

EscrowUP supports nonprofit organizations that help emerging entrepreneurs, including women, veterans and those in emerging markets, gain access to mentors, skills, capital and the tools they need to thrive. These nonprofits are listed at the end of this post.

I’m incredibly excited about this idea and the impact we can have across these important non-profits. I hope you’ll help me spread the word.



Since 2000, Springboard Enterprises has served as a resource hub of influencers, investors and innovators engaged in helping women build big businesses.

Visit Springboard Enterprises



Endeavor helps entrepreneurs in emerging and growth markets gain access to mentors, capital and human resources so they can take their businesses global.

Visit Endeavor



Patriot Boot Camp (PBC) equips active duty military members, veterans, and their spouses with the education, resources and community needed to be successful technology entrepreneurs.

Visit Patriot Boot Camp



Girls Who Code works to educate, inspire and equip young women with the skills and resources to pursue academic and career opportunities in computing  fields.

Visit Girls Who Code



Pledge 1% empowers founders and entrepreneurs around the world to integrate giving into the culture and values of their companies.

Visit Pledge 1%


We would love (LOVE LOVE) your help getting the word out about this idea. The more people know about it, the more money we’ll generate for non-profits.
Here are some Click to Tweets to make this easy for you. But feel free to write your own copy if that feels more natural.
Finding ways to #givefirst are essential for growing businesses. Proud to support @srsacquiom $ @pledgeone w/t #EscrowUP
Proud to support @srsacquiom and @pledgeone in their mission to empower #entrepreneurship through #EscrowUP
Finally a way for #M&A to give back! Proud to support @srsacquiom and @pledgeone as they introduce #EscrowUP
#Entrepreneurs are the pulse of business, join me in supporting @srsacquiom & @pledgeone launching #EscrowUP #givefirst

Taking a deep breath

Below is a note I just sent to our CEOs. While I’m dismayed at what happened last night, now isn’t a time to be reactionary. And the US needs a strong and vocal counterbalance to the hate and bigotry we just empowered.

For many of you, as well as for us, it was a deeply disappointing night. And it’s easy to wake up today with a sense of fear and foreboding about the future of our country. That’s understandable. And while we share that fear we also continue to share an optimism about the greatness of our country and our future. America is a resilient country and we passionately hope that resilience will temper the hate and vitriol that’s been on display over the past months in this election.

We’ve heard from many of you about what last night might mean for your businesses, whether a recession is imminent, whether costs should be cut immediately, etc. And we know that the markets appear to be reacting strongly to the news of a Trump presidency. But we believe that now isn’t the time for reactionary action. If you were excited about your business last week you should be excited about it today.

Our advice for the moment is to let things settle out. Stand up for the beliefs that are important to you. Be vocal within your community about things like tolerance, fairness and inclusiveness. Your employees will be looking to you for how to react. Show them that our economy and your business will go on. That we’ll evaluate the future dispassionately and that your business today isn’t fundamentally different than your business yesterday.

Supporting Cliff Avril and New Story

new-story-logo-0f593f2209a239ab576199d1285834bb0ae513d1c5ce5ff0123118546dbd9f79Earlier this month Seattle Seahawks defensive end Cliff Avril announced that he would support building homes in Haiti – devastated most recently by hurricane Matthew. For every sack Avril gets this season he’s donating $6,000 which is enough to build a home that is both hurricane and earthquake proof.

The charity that Avril is doing this through – New Story – is one that my wife and I know well. It is actually a Y-Combinator company (was the first non-profit to go through the Y-Combinator program) and has developed a very impactful (and novel) model for supporting housing development in areas of need. Greeley and I have been supporting it for a few years. And, in case of funny coincidence, it turned out that my partner Brad was also involved as a member of the New Story advisory board.

Greeley and I were talking about Cliff Avril’s donation and ways we could further help New Story when she said: “why don’t we match Cliff and get a bunch of people to donate as well.” So we reached out to a few friends (and Seattle fans) to see what people thought. We decided to focus on the Seahawks remaining home games (there are 5; fortunately for me none are against either the Broncos or the Patriots) and see how much money we could raise. Very quickly we had commitments for over $13,300 per sack. And the number is going up daily as more and more people respond.

So let’s do this together. New Story is a fantastic charity and one that is not only doing good in the world, but also innovating on the non-profit model. Will you join us in supporting them? There are two ways to get involved. If you want to make a donation you can do so here (100% of these proceeds go directly to building homes). Or, better yet, join our Avril challenge. Just email me the amount you’re committing per sack. At the end of the season we’ll fulfill our pledges and I’ll be sure to announce the total (as we hit milestones I’ll update that here as well).

Shadow Boxing

Screen Shot 2016-08-31 at 12.54.59 PMThere’s nothing I value more about what we’ve created at Foundry than the relationship I have with my partners. Brad, Jason, Ryan and I are not just business partners, but best friends. This relationship affects everything that we do at Foundry and I think shows in the way we run our firm and the way we work with the entrepreneurs in the Foundry portfolio.

It’s been an interesting transition over the years to get to this point and one that we’re constantly working on (we’ve often used an organizational consultant to help with this; we also spend a day a quarter off site to work on Foundry as a firm, the portfolio and our relationships with each other).  We each have different strengths and weaknesses and over the years have done a great job of leveraging those to the betterment of our firm and the portfolio.

But I need to be honest about something – I’ve struggled over the years working in the shadow of Brad and its taken me a while not just to admit it (and that it bothered me) but ultimately to embrace it. Actually it feels good to write that down. Brad is a truly amazing human being and by an objective (and in my mind subjective) measure, an exceptional venture capitalist. He quite literally taught me the business of VC. And to the outside world he’s larger than life (I hear this from people all the time). And therein comes the shadow. It bothered me for a long time and I struggled with it for a while. We have a completely equal partnership at Foundry – in our ownership of the firm, in our decision making, in how we work across the portfolio. But Brad is everywhere (writing books, blogging, on twitter, speaking) and for a long time I felt like I was in a race to keep up (which, let’s face it, isn’t even remotely possible).

It was a breakfast I had a few years ago with Brad Burnham that really impacted my thinking about this. I asked him about this dynamic in the Union Square Ventures partnership and he essentially said: Fred does his thing; I do mine. It’s complementary, not competitive. I suppose this should have been obvious to me and to some extent I’m sure I already knew it. But hearing it from Brad Burnham directly and forcefully really caused me to stop and think about it more deeply. What I was looking for was really just the ability to be at peace with the various roles we each play at Foundry generally and specifically my own role. And really my own role as an absolute, not as compared to my partners. It was a powerful discovery for me but one that has been incredibly important in how I think about the future of Foundry.

It was actually with much of this in mind that I asked Brad to join me on a trip to Minneapolis. I’ve long had a love for the Twin Cities (I went to college there and have been on the LeadPages board now for several years in Minneapolis). The trip was really about introducing Brad to the Twin Cities startup community (as well to visit the Techstars Retail program). The highlight was a Beta.MN event that featured me interviewing Brad. It was a great way for the community to get to know him and I loved the chance to be the guide (but not the focus) of the event. In preparing for it I thought a lot about Brad, our long relationship, our respective roles in Foundry and how we are viewed externally. For me it was a real embrace of the conversation that Brad Burnham and I had had years earlier. I even got to ask Brad a few questions that I had long had in my head, but that we’d never really talked about together (for example see 4:23 in the final video, something that we later talked about at length on our trip home). The videos can be found on Tech.MN here. It was a wonderful experience.



New Registration Status at Foundry Group

We have some entertaining news to share with you today. We have recently registered with the SEC and are now considered Registered Investment Advisors. Did we do this so that we can have cooler business cards? No. Did we do this because our back office was lacking in purpose? Heck no.  

We had to, per the SEC rules. And the reason you ask? Well, we can’t tell you that or we could possibly break some other SEC rules. So for now, just accept that your friendly neighborhood venture capital firm is now subject to a lot of new and stimulating paperwork.

Why are we even bothering telling you this? Because it will affect what we can say on the Foundry and personal blogs that we write. We’ll have to be careful with statements that we make about companies we invest in. We’ll also be cautious in what we write about our funds or the industry in general. According to the SEC rules, we can no longer write anything that “promotes” our funds. While we’d argue that we never try to promote our firm, but just write anything that comes to mind and try to have fun doing it, with our new registration status comes new responsibilities.

This will be a learning process for us and our goal is to bring you content that is still 100% transparent. Please be patient with us if there are hiccups along the way, or perhaps even questions that we can’t legally answer in the comment sections anymore.  

And as always – thank you all for the support. We love what we do and the community, and our interaction with you through our blogs, is a big reason why. And, don’t worry, there will be a third VC video from us – someday.  

Joining The B Team

BCorp_logo_transparentFor a long time I’ve been fascinated by the intersection between entrepreneurship and social change. When I say that I’m not describing social entrepreneurship (a term I really don’t like; it’s not a subset of entrepreneurship, it’s simply “entrepreneurship”) or impact investing, at least not as they’re commonly understood in the current business lexicon. I really mean two things: The first is the application of entrepreneurial principles and startup techniques to solving critical, basic needs problems around the world (many of the companies I’ve worked with as a founding board member at the Unreasoanble Institute fall into this category, as one example). The second is that all businesses, regardless of the product or service they produce, can work to create positive change in their communities, including with their employees, vendors and partners (The Entrepreneurs Foundation of Colorado and more recently Pledge 1% are both great examples of organizations helping companies create positive impact in the communities in which they are building their businesses).

More recently I’ve become very interested in the B Corp movement. B Corps are for-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. At the core of the B Corp movement is the idea that all companies share a duty for building responsible businesses. Responsible to their employees, to their customers, to their communities. I strongly believe that businesses that treat their constituents well attract and retain employees better, innovate faster, grow more quickly and create more value. I also believe that responsibility for creating a better world is something that can happen at all businesses – not as a side project or something that happens after your “core” work is done, but rather in the actions your business takes every day. By integrating responsible practices throughout an organization, companies can build better businesses while at the same time being agents for positive change in their communities and beyond.

This sort of thinking has been a part of Foundry Group since Jason, Ryan, Brad and I started the fund. In fact, before there was Foundry we got together to talk about our core operating principles. Things such as our “no assholes” rule, what we (along with our friends at Techstars)  now call #givefirst, putting entrepreneurs first and including all of our employees (and Pledge 1%) in our carried interest all came out of these discussions. As we’ve operated our firm over the past 9 years we’ve expanded on these ideas and tried to further integrate them into our business and our lives.

It is with great pride that we announce that Foundry Group has achieved B Corporation Certification through B lab. We believe that with this action we’re codifying our long-held beliefs as well as setting an example for others in our ecosystems – fellow venture firms, startups and service providers – to consider doing the same. It’s great to talk about these principles. Becoming B-Certified is our way of showing that we’re truly happy living these principles.

We are also excited that two fellow Colorado venture firms – Colorado Impact Fund and Greenmont Capital Partners – are announcing their B-certifications alongside us. We will join 75 other B-Certified companies in Colorado and over 1,700 in nearly 50 countries around the world including well-known leaders New Belgium Brewing, Patagonia, Seventh Generation, Ben & Jerry’s, Kickstarter, Etsy, Warby Parker and Hootsuite. We also join notable tech B Corps in Colorado such as Rally Software (the first ever B-Corp to go public with that certification), Namaste Solar, Simple Energy, and dojo4.

At Foundry we believe that a group of people acting together towards a common goal can have a far greater impact than when they act alone. With this in mind we challenge everyone reading this to consider joining us in the B Corp movement. #BtheChange

Venture Returns by Sector

Readers of this blog know that I love sharing data from Correlation Ventures (they have a pretty extensive database of venture deals and venture outcomes and love to post share trends from time to time) – see two great examples using their data here and here from this blog.

A few weeks ago they sent around the chart below which I thought was interesting to share. I’m not surprised at the non-pattern here – as an industry venture is very stochastic. Venture returns are all over the map, really underscoring the need to time diversify venture investing and venture exiting, to the extent to which the latter can be controlled (this graph doesn’t show the date of initial investment, which would be a great new cut at the data – I’ve asked Correlation if they could re-run the analysis that way and will post it if I can get it). Also interesting to note the blip of “Consumer” in 2013 as well as what appears to be a bit of a countercyclical trend in healthcare.  Sometimes there are interesting tidbits to be taken from seemingly chaotic data.

Screen Shot 2016-05-09 at 4.53.04 PM

Friday Afternoon Inspiration

Short post today from a portfolio company of ours and how they describe their culture and mission. I love it and thought it was a good way to end the week.

We all move forward, together
We understand that work is an integral part of a challenging life journey. Embracing our journey together enhances everyone’s experience and growth. Practicing empathy, as well as earning and maintaining the respect of our coworkers, are the core principles from which we all move forward together.
Our attitude shapes our experience
We affirm attitude is contagious. We are mindful that cultivating a positive attitude fosters a fun and energetic environment where we can all deliver our best results.
Our quest for improvement is never-ending
We recognize that we can always learn more to make ourselves and the business better. We support an environment that encourages trial and error, the ability to take risks, and the discipline to reflect on and learn from those actions.
We are united by the problem we are trying to solve.
We believe that the time and energy we spend building a business should be rooted in passion. Together, we are empowered by creating something we believe in. As individuals, we are dedicated to putting ego aside in order to serve our team, our customers, and a common goal with heart and integrity.

The Community Foundation, EFCO and Pledge 1%

Cross posting this article I wrote for The Community Foundation of Colorado. As many of my readers know, I’ve been passionate about the intersection of startups and community for years. And specifically developing a worldwide movement of startups giving back to their local communities from their very founding.

I blog a lot about community: entrepreneurial, local, national, international, social, etc. The short takeaway is that a group of people acting together towards a common goal can have a far greater impact than they expect – and certainly more than they would acting alone. I often use a great scene in the movie Office Space to illustrate this point.

An outgrowth of The Community Foundation’s EFCO initiative – Entrepreneurs Foundation of ColoradoPledge 1% is a movement that’s caught fire among community-minded entrepreneurs around the world, helping startups set aside 1% of equity, 1% of employee time to volunteerism, and 1% of product to benefit their local communities. We’ve seen immense success in our Colorado community that can be traced directly back to EFCO and Pledge 1%…and now we’re seeing the movement spread around the globe through the Pledge 1% initiative.If you think about any great startup, they tend to share certain common traits. In particular, once they figure out the formula for success, it’s natural to want to scale that as far and as wide as possible. We’re doing that with Pledge 1%. After a fantastic startup year where we were housed within The Community Foundation, it’s time to spin off Pledge 1% so it can truly scale globally. To accomplish this, we’ve chosen Tides to house the organization and to ensure its continued global growth – even as EFCO continues to operate under the umbrella of The Community Foundation, working as the entry point for Colorado companies inspired to join the movement.

EFCO is tightly connected to The Community Foundation, and I’ve seen firsthand the foundation’s crucial role in providing the foresight, expertise and resources needed to test the premise and scalability of the EFCO model. I’m both impressed and thankful that the foundation recognized the broader potential of EFCO, and galvanized around it alongside some big players – including the Salesforce Foundation, Atlassian, and Rally for Impact.

The Community Foundation provides the kind of nurturing that’s needed to launch and grow innovative ideas – in this case, EFCO’s paving the way for startup companies to give back to their communities has ignited action worldwide. For entrepreneurs passionate about giving back to the communities in which they build their businesses, the potential is endless.

Case in point: via EFCO, the Foundry Group made a gift of $300,000 to Boulder County nonprofits last summer in response to a 62% funding cut from Foothills United Way. This is just one of a number of gifts that Foundry has channeled through the EFCO program. And this is the kind of impact that drives EFCO members: filling the gaps affecting local nonprofits, helping individuals and families who are struggling to make ends meet, and strengthening the very communities that have contributed to our own success. All told, since its founding eight years ago, EFCO – more than 100 members strong – has generated more than $4M for local nonprofits.

It starts with being community-minded, and The Community Foundation has long fostered the notion of giving locally. The success of EFCO and rapid spread of Pledge 1% bear witness to the fact that we can accomplish more together than we do alone – right here at home, and in “local” communities around the world. I invite you to learn more at and Join the movement and make an impact!