Becoming a verb
You’re on the right track when your company becomes a verb. Just add a “d” to your name and you’ve got an idea what I’m talking about. Google is the best example of this – as in “Have you Googled that?” A couple of the companies I work with are on their way (at least in the markets they play in). I take it as a good sign that they are becoming important enough with their customers as to actually enter their lexicon (as in “Have you Quova’d this IP address?”).
April 18, 2005· 1 min read
Communicate! Communicate! Communicate!
I was reminded (again) today of the importance of clear, open and honest communication. There’s no substitute for it. There seems to be a 1:10 rule about communication such that it takes about 10 times the amount of energy/effort to communicate something after the fact (i.e., after a communication break-down) than doing it up front. Not to mention the potential hard feelings, bad karma, etc. With all the ways to get in touch these days (e-mail, phone, cell phone, sms, etc.) it seems like this should be pretty easy. …
April 7, 2005· 1 min read
Moving right along
Fred Wilson had a great post recently on the problem of analysis paralysis. I completely agree. One of the challenges of business (and entrepreneurship) is that companies constantly have to make decisions based on incomplete information. That’s just part of the game. Successful entrepreneurs recognize that, take in as much information as makes sense, make a decision and then move on. While it’s helpful to look back at these decisions, I completely agree with Fred’s assertion that it’s not really fair to second guess them (although its important to learn from them). So, how do you avoid the analysis paralysis trap? Here are a couple of thoughts …
March 23, 2005· 2 min read
Jarbarish
Fred Wilson has done a very amusing series of posts on VC Clichés (see the latest here) Terry Gold takes this to another level with what he has termed Jarbarish (a blend of jargon and gibberish). Here he posts an absolutely hilarious bit that he used at a recent company meeting. Thanks Terry for lightening the mood
March 17, 2005· 1 min read
The Last Days of Enron
The New York Times is running a series of articles on the last days of the Enron crisis (actually excerpts from Times writer Kurt Eichenwald’s forthcoming book on the subject). It reads like a soap opera (by both design and because that’s really what this story amounts to). The amazing take-away for me was just how far Enron had strayed from the most basic forms of financial management (they didn’t track their cash balance, nor did they track when their debt came due – so they had no idea either what they owed or how much they had available to cover that debt). Take a look at the article here (in case the link doesn’t work the url is http://www.nytimes.com/2005/03/13/business/yourmoney/13enron.html?) . It’s worth a read.
March 15, 2005· 1 min read
Google News
In case you haven’t noticed yet, Google has made their news page customizable (see the “customize this page” link on the right of the screen). Not all that surprising a move (what took them so long?) . . . they are a media platform after all – even though they want us all to think they’re really just focused on search . . .
March 10, 2005· 1 min read
Paying for what you get?
Ever notice that the nicer the hotel you stay in, the more you have to pay for? It seems to me that the more I pay for a room, the more likely it is that I have to pay for local phone calls, internet access, breakfast, gym access, etc. I was thinking about this a couple of weeks ago. I was in San Francisco and staying at a reasonably nice national chain hotel and paying over $200/night for the privilege. On top of that I had to pay forInternet access ($9.95 for crappy 200kps throughput), local calls ($0.75 a pop) and access to their gym ($10/day). Not so when I stay at cheaper hotels(particularly down on the peninsula, but I’ve found this to be true all over the country) – I rarely pay for this stuff. On one recent trip to Palo Alto I stayed at a hotel that was less than $100/night, had fee internet access, free local calls,a descent work-out room and provided me with a nice continental breakfast (also for free). …
March 1, 2005· 1 min read
Conveying Information Effectively
Here’s an interesting experiment to try. Get a friend. Think of a song (one that you would reasonably expect your friend to know as well). Tap along with your finger while you play the song to yourself in your head. Now ask your friend what song you were taping out. It turns out that the taper’s estimate of how easy it will be for someone to guess what song they are tapping is vastly greater than the success their friend will have in actually coming up with the correct song. The taper believes they are conveying much more information than they really are. (Apologies for not being able to find the actual study reference I was looking for – I couldn’t find it on Google Scholar and I’ve long since thrown out the psychology textbook I had that referenced the study.) …
February 22, 2005· 2 min read
What it takes to go public
I’ve sat through a few presentations by investment bankers recently on what it takes to go public (most recently at VC in the Rockies – see my post about the conference here). I thought I’d throw out some of my notes so you could see what I’m being told it takes to get public in the current market. The VCIR panel I sat through included some thoughts on the state of the m&a market, so I’ll include those notes as well. Company ‘Requirements’: – Revenue: ‘Bigger the better’; minimum of $60m/year annualized (so $15m/quarter at the time of the IPO; however 60% of 04’ IPO’s were < $100m in revenue (up from only 30% in the depths of the market); this has been a very consistent metric across all of the bankers I’ve talked with. – Profitability: Companies should be at or near profitability prior to IPO; there was some debate across the people I talked with about whether this was a requirement – some people thought companies absolutely needed to be profitable, others gave a little bit (but not much) of wiggle room. – Funding Needs: Company needs to be fully funded – the money raised in the IPO should be expansion capital, not core operating (get to profitability) capital- Team/Execution: Company probably needs to have been around for 4+ years; management teams are coming under much closer scrutiny by investors (was not the case in the bubble) …
February 17, 2005· 3 min read
Who vs. Where
I recently wrote a blog – The Power of Location – about Quova (one of the companies I work with) and the idea of “place” on the Internet. In response, Dimitar Vesselinov (who has a great blog) dropped a couple of comments to the post. My sense is that not everyone pays attention to the comments section of blogs, so I thought I’d post the links he suggests here. I also want to be sure I’m clear on the differences between digital identity (the subject of Dimitar’s comments) and geolocation (the subject of my post) as well as how the two ideas overlap. …
February 16, 2005· 3 min read