Friends that defy my classifications and prejudices

A few years ago I met 2 business acquaintances that were (and still are) evangelical Christians.  They grew up going to evangelical right wing camps while I went to Outward Bound.  Their parents listen to Rush Limbaugh while mine listen to NPR.  They have pictures of George W. hanging in their office.  And while I don't have any pictures in my office -- if I did have a political photograph I'd be more likely to have a Bill Clinton or Obama photo.  They vote Republican and I vote Democrat.
I've gotten to know these guys and had dinner with one of them last night.  I realized that this person not has become a very good friend but he has forced me to redefine my own prejudices about the far right.  They're not ALL irrational speaking in tongues hypocrites :-)  Just kidding!  While I ultimately disagree with the conclusions he reaches, there is a lot that we agree on about the past 8 years.

  • He agrees that the war in Iraq was a mistake and is a mess.
  • He think energy independence should be the main agenda for the country and that George W missed this as the great opportunity of his presidency post Sept. 11
  • He agrees that Republicans have led the country astray economically -- both with the war and with the level of spending the country has undertaken. 
  • He agrees that the Republicans (and Democrats) are hypocritical.  He agrees that personal freedoms need to be protected (though he's pro-life) from government. 
  • He agrees teachers are underpaid. 
  • He agrees that Maker's Mark on the rocks is a great drink.

I appreciate the friendship I have with these two guys -- and the fact that the friendship has challenged my own preconceived notions about the world and the US political climate.

Cuban kitchen (photo 2)


cuban kitchen 2, originally uploaded by a sack of seattle.

This is a second photo of a cuban kitchen. I may have taken the photo....but can't be sure. And yes, it's a picture of a pig that lives in the kitchen. Supposedly, this pig acts as a very effective compost solution. That is, of course, until the pig becomes Christmas dinner.

Cuban kitchen (photo 1)


cuban kitchen 1, originally uploaded by a sack of seattle.

This is a photo of a cuban kitchen. I may have taken the photo....but can't be sure and don't want to make any statements that might land me in trouble in the US.

Shame

The adage of, "if you can't beat them join them" should apply. But I can't bring myself to do it. There's too much at stake.  I think the Republicans have made some very smart moves in the current presidential election.  Most notably, the selection of Palin has to be commended as a smart political move.
However, I'm really in awe of the fact that this is even a close election.  I felt the same way 4 years ago -- when it was painfully obvious to me that we created a war in Iraq after Sept 11 on false pretenses.  That economically we were headed for massive deficits and a general erosion of social well-being.  And yet, I was in the minority. Loads of people voted for George W.  The first time, I can forgive (somehow). But the second time!  And now, in early September, it's looking quite possible that we're headed for a 3-pete.  Fool me once, shame on you. Fool me twice, shame on me. Fool me three times, shame.

Learning to be an investor

I've been an entrepreneur since 1994 -- that's almost 14 years.  I'm surprised at some of the basic lessons that I'm learning as I become self educated as a seed stage investor.  Having started and run 5 companies over the past 15 years gives me lots of insight into the management of the companies that are pitching me on investment. Currently, I'm trying to figure out how exactly to apply my experience -- which is still relatively unique in the investment community -- to investing. 
The question I'm asking myself today is -- would I have invested in Twitter early on.  My answer is -- I think not.  I would have understood the entrepreneurs and gravitated toward them, and I would have understood thee messaging platform, but I would  have likely dinged the business because of its lack of a revenue engine.  This is all mute -- because I never invested nor was I asked to invest but it's all part of evolving my investment perspective.

The power of ezample

Last nights democratic convention was exciting and smart. I thought Bill Clinton redeemed himself for some of his foibles during his wife's campaign. His speech framed up the election and the case obama needs to make to the public. Beau Biden speech was emotionally moving to the point that I teared up at the same time Michelle Obama did (how much was that tear worth?). And Joe Biden was solid and tough if not a little tongue tied at times. Overall, the stage is set for Obama to take back the lead in this election as he marches forward to his presidency. Hope is a wonderfula nd powerful thing!

The 6AM Eureka moment

I got an email from one of my entrepreneurs today.  He had an epiphany at 6am. I was asleep. I read his short email and I have to admit I think that his insight is nothing short of awesome.  I can't reveal what company it is, who the entrepreneur is, or what the insight is at this time because I'm sworn to secrecy. That said, I love it when these insights happen.  In this case, the insight was a direct result of the entrepreneur living the problems of the market himself.  He was experiencing the pain everyday, and ultimately realized this morning that he could wake up and solve that problem for himself and in so doing, solve it for everyone in the market. Eureka moment.

wrong day, wrong floor

I just got back from the conference. Turns out I was a day early. The guard made me feel better by telling me there had been about 6 people who came too early. It felt a little like getting off the wrong floor on the elevator. You know the feeling -- You're traveling to the lobby, the elevator stops, you walk out and realize you're on floor 3. Oops.

Ideas are investor candy

One of the things I enjoy about my new role as investor is that people seek me out to tell me and sell me on their ideas.  I've always liked business ideas and my new role allows me to interact with them regularly. Ideas are like candy. They sweet and taste good but aren't particularly filling....In the same way, I love hearing ideas but when it comes to investing, I look for a team  who know a market and are executing in a real focused way. 

Most common mistake made in negotiations

Simply put -- over optimizing.

It's common for everyone to try and get the best deal possible in a negotiation.  However, it's important to know when to stop negotiating, to say yes, and to get the deal done.

I'm currently in a negotiation which I think is falling apart because the entrepreneur is optimized the deal.  We had gotten to a point where both sides of the negotiation were equally uncomfortable with the deal and had agreed to terms. Then, the request for additional terms kept coming and coming. Each additional request was small in and of itself but when added to a deal in which both sides were uncomfortable -- one small request actually was the straw that broke the deals back -- so to speak.

Tuesday is theft day at our offices

I came into the office today and there were 2 police cars parked out in front. I thought this can't be good. It turns out our office building was broken into last night.  All the laptops and projectors were stolen. All the desktops were NOT taken. Guess it's an argument for desktops -- they're harder to walk out the door with and turn into cash!  The cops are in here taking fingerprints. Reminder to everyone to backup and leave as much in the cloud as possible. Bummer way to start the day.

Some sobering Venture Capital Statistics

The below is from the Nollenberger Capital Report

  • This is the first time since 1978 that no venture-backed company made it public during a quarter. The last venture-backed IPO was ArcSight in February 2008. In the first half of 2008, there were only 5 IPOs that totaled $283 million. That compares to 43 IPOs during the first half of 2007 totaling $6.3 billion. During the first half of 2008, 42 companies were in registration for an IPO.
  • For 2Q 2008, 50 M&A deals were announced involving venture-backed companies which totaled $2.4 billion. The first half of 2008 was the slowest first half M&A market since 2000 with only 142 deals. During the first half of 2008, there were 120 venture-backed M&A deals, compared to 169 during the first half of 2007 which amounted to $6 billion, compared to $8.5 billion in 2007, a 42% decline for investors.
  • In the first half of 2008, U.S. venture firms raised $16.2 billion, a 5.41% increase over the same period in 2007. The $85.5 billion that LP’s invested into LBO funds was 20.5% below the $107.6 billion invested in the first half of 2007. This is the first time since 2003 that we have seen Y/Y fund raising decline as PE firms experienced capital raising delays for their latest buyout funds. 72 new venture capital funds raised money, 10 more than in the 2007 period. The largest raise was $800 million for Lightspeed Venture Partners VIII LP fund.

My travels

It's hard to summarize my month off into a post. In fact, I don't really want to do because I feel like the time off was so precious! That said, you should know that my travels took me to Cuba, Cancun, Las Vegas, Miami, Santa Fe and a bunch of other places. I didn't do anything really -- and had a great time doing nothing. I ate well. Exercised. Watched movies, CNBC and read newspaper and trashy magazines like US and People. I didn't read email, make phone calls, or conduct any business so to speak. My favorite drinks of the trip were coffee, dark rum straight no ice (an acquired taste for a cuban drink), and vodka grapefruit.  My favorite dinner was at nobu in Miami with my good friend Michael. Oh and one more thing, I napped often!