Should you be a good employee?
When I worked at Morgan Stanley there was a running debate among the analysts about whether it was better to be a good analyst or a bad analyst. The theory went that if you were a great analyst you were rewarded with more work (but not much more pay, given how few analysts actually made it to the “outstanding” category at bonus time) and if you were a mediocre or bad analyst you were passed over for projects and had a much much better lifestyle (i.e., you worked 60 hours a week instead of 90 or more). Banks never really fired analysts, so one could pretty easily coast by for the time of their indenture.My own views on this are pretty clear based on prior posts, but there were a handful of people I worked with who went the other route and were rewarded with a social life. …
January 5, 2006· 2 min read
A tree fell in the forest – IBM’s Patent Portfolio
In the category of “big news that no one seems to be talking about”, two days ago IBM announced that it was launching a new licensing program with the venture community to allow easier access to IBM’s broad patent portfolio for start-up companies. This is actually a big deal (it is to me at least, which is why I’m shocked at the lack of press on the announcement). IBM is vastly simplifying how companies can gain access to its patent portfolio. It’s catered to the venture community (the program is intended to be administered through the companies’ venture investors) and was in part put together by IBM’s venture capital advisory board. In a nutshell if you are a company that has less than $10m in revenue you can access the entire IBM patent portfolio for $25,000 for a 3 year term. Companies with above $10m in revenue sign a customized five year agreement (the information I saw suggested that the license fee would be 1%).I’m not a big fan of our country’s IP laws – patent law is kind of like the IRS code (its overly complicated for the sake of being complicated, doesn’t do a good job of driving desired behavior, but works just enough for most people to figure its not worth the incredible pain in the ass of trying to reform it). But for the moment, at least, we’re stuck with the current system and moves like this one from IBM vastly simplify the process of navigating the patent waters. Hopefully more companies with large patent portfolios will follow suit.
December 15, 2005· 2 min read
Start-up moments
One of the things that I like about spending most of my time with start-ups is that there are very few of the trappings of larger companies – people answer their own phones; leave their own outgoing voice-mail messages; everyone can fit in a single room for a company update; all employees can give feedback on products; etc. I remember fondly the early days at my last company before we had an office – when we could hold our management/company meetings sitting around a single Starbuck’s table. Of course things tend not to stay that way (if you’re successful) and very quickly these days are forgotten history. At NewsGator’s board meeting today we had what can only be termed a start-up moment when our conference phone went down. Below is a picture of Mark Nass, NG’s VP of Finance pulling a dedicated phone line through the ceiling so we could connect back into the board call. That’s CEO JB Holston in the foreground. …
December 15, 2005· 1 min read
A del.icio.us day
Yahoo buying del.icio.us makes total sense. I have to admit that around the time Union Square invested in the company I didn’t really get it – I hadn’t understood the power of a user generated hierarchy. A few months ago I got a clue about it – late to the party, but at least there. Congrats to Fred, Brad and to the del.icio.us team – nice work!
December 9, 2005· 1 min read
The ultimate RSS reader
When I asked ealier this year how you view your news I didn’t exactly have this in mind, but now that I know it exists I can’t imagine any better way to stay informed. 3060000000057296 Yes – those are your RSS feeds being printed out on toliet paper. See the engadget link here. Thanks to Ross for sending this over.
December 8, 2005· 1 min read
Feed for Thought
They guys at FeedBurner (note: Mobius portfolio company) have put up a great post entitled Feed for Thought: How feeds will change the way content is distributed, valued and consumed. The article is a great read – very thoughtful about where RSS has come from and where its going. I was going to highlight a few points they made here, but the entire piece is a highlight and pulling stuff out won’t do it justice. Click over and read it.
November 23, 2005· 1 min read
Gobble Gobble
Last week a few of us played a little joke on our colleague Chris by putting a 6 foot tall inflatable lighted turkey in his driveway for him to find late one night as he came home. He returned the favor a few days later by leaving it on my desk (fully inflated) early one morning. See the pictures of what we’re now calling the ‘giant turkey’ below. Img_0133Photo_57_1 …
November 23, 2005· 1 min read
M&A Part IV – Timing
When I worked at Morgan Stanley in the mid 90’s we used to have a joke about the relationship between VP hours and analyst hours. The ratio of these hours was in the neighborhood of 7 to 1, so when your VP asked you to do an analysis or create something for a pitch book and said something like “ok – I know its 10pm, but this should only take you about an hour” you knew that you’d working until about 5am, give or take. I’ve found this relationship to be true of many lawyers as well (as in “I’ll get you this document in a few hours,” which typically translates to “I’ll get you this document at 11:59pm tonight”). I have the same problem on sell side M&A deals, which is to say that I’m always forgetting that they take longer than I expect them to. Mostly I forget that while I can control my side of a deal (at least to some extent), I can’t control the other side of a deal. Particularly when I’m working on selling a business, I tend to be more motivated to move quickly than the buyer (who obviously wants to do careful due diligence, may have other deals they are working on, etc.). While one still needs to push so a deal doesn’t drag on forever, I’d probably stress myself out if I remembered that deals always take longer than when I map them out in my head (ALWAYS) and that each deal has a different flow (most of which have some variation of a sine curve in terms of activity level, but each of which has both a different amplitude and frequency) and that sometimes one needs to just go with the flow rather than swim up stream. …
November 22, 2005· 2 min read
The downside of technology
Brad sent me an article a few days ago that described the very unplugged world of Warren Buffett (according to the article the most technologically advanced device he has in his office is a telephone, which he uses sparingly). It’s a pretty amazing read and reminded me of another article that was sent to me recently – this time by Dave Jilk – describing how technology is changing (negatively) the way people work (too distracted, shortening our attention span, ruining our vacations, etc.). …
November 16, 2005· 2 min read
In your mind’s eye
I love the way the mind works. I spent years studying cognitive psychology, which was my college major (I was the psych geek who paid you $3 to sit in front of a computer for 10 minutes and take a test where what I told you I was testing for was not what I was testing for . . . ). My dad sent me the following link, which is pretty fun. …
November 11, 2005· 1 min read