No BBQ allowed. Any thought on how I should respond are welcome?

I received this pleasant email today:

Hello:

 

I got a report from other tenants in the building that there was a BBQ in the parking lot with alcohol being consumed today.  Alcohol or not, this is an office building and both of these activities are inappropriate for a professional setting.  Other tenants have clients coming to the building and this is not something that should be going on.  If people need to be involved in an activity like that there are parks nearby that can be used.  The report that I got was that it was your office that was doing this.  If this is true please contact the people on site and make sure this does not happen again.

 

Thanks,

 

Rich

 

There are a number of responses to this email that I can think of....but I'm not sure yet what the best one is yet. Any thoughts of how I should respond?

Feedback on symbolic corporate cocktails

I got this email from NearlyWeds, one of my companies that does awesome wedding websites --

"we are sophisticated and complex, hence the reason for the difficult drink decision.  we would like to say to our customer that we are the veuve clicquot  type.  And we appreciate the widow very much, and do enjoy her beverage greatly.  day in and day out though, we are micro-brew sort of people.  we love a good handcrafted micro brew or monk-brewed belgian.  but if we were to celebrate after an acquisition or something, then we would probably skip the microbrew and enjoy a bourbon or scotch, or maybe even a bourbon drink like a bourbon sidecar.  our customers are sophisticated, so are we.  you don't wear the same clothes everyday, why would you drink the same drink for all occasions.  


and just like brides, we love to be difficult about simple questions."

Thanks

John

If your company were a drink, what drink would it be? Help me name TechStars corporate cocktail

Since the publishing of the video about Founder's Co-op, whiskey and entrepreneurs on TechFlash, there's been an ongoing conversation about each company's symbolic drink. You can think of these as corporate cocktails.  You know - a drink that you start each corporate meeting with (if you were drinking during the day) Here's what we've come up with so far: 

  • LookStat - La phroaig - Single malt scotch
  • Untitled Startup - Dewars
  • NearlyWeds - Perseco
  • Frugal Mechanic - tap water
  • Appature - Russel's Reserve
  • Cooler Planet - Patron
  • AppStore HQ - Maker's Mark
  • On Top Leads - Jack Daniel's 
  • Big Door Media - Stoli and soda with a lime

(Please note that I didn't get ALL Founder's Co-op companies drinks by date of publication....those that are outside of Seattle were omitted. Sorry guys -- the need to publish dominated making this list comprehensive. If you send me a drink I'll post it)

Next week at the TechStars for a Day event, I'll be revealing TechStars in Seattle choice of symbolic drink. I'm not sure what it is yet, but I'm open to suggestions.

Please note -- these corporate cocktails do NOT have to be alcoholic. It's probably not a coincidence that the above list is mostly alcoholic. 

Everybody is getting behind TechStars in Seattle

I'm feeling the community support behind TechStars in Seattle. This is a photo that I was sent by the partners at OVP.  I think this photo was inspired by the photo I posted by Voyager Capital last wee.  It's this kind of community spirit that makes TechStars rock. And it's this kind of support that is going to make the companies that apply and get selected really successful. Reminder -- applications are due by June 1.  

OVP photo
 

Startup Weekend Rocks

I dropped by Startup weekend yesterday -- yes, it was mothers day and yes, it was the nicest weekend of the year. Still -- I dropped by to see the Seattle start-up scene in full swing. Lots of familiar faces and people working hard.  Great vibe -- and some interesting ideas (as always). Look forward to seeing if any of the ideas materialize into something past the weekend. 

I can't wait to do my own startup weekend one of these days. Looks like a lot of fun. 

Capitalism, health care, and my dad

I'm writing this post and my guess is it will be longer than my normal posts. You know when you sit down to write a diary post to sort out your feelings -- that's what this post is. 

I have an MBA and I'm an entrepreneur. I'm a capitalist. I believe in capitalism (for the most part). I understand very well that profit is a strategic imperative. I understand that managers sometimes need to make what appear to be bad decisions or inhuman decisions to achieve profit.  Unfortunately, I understand the rationale of laying off a division of a company because the organization needs to go in a different direction.  In most instances, I view this type of rationale as a strength of the US economic and politics system as opposed to those countries that have stringent rules about when a company can fire a person mandatory employment. 

At the same time, I think I have an understanding of the human toll of layoffs. I feel connected to the people I work with -- and even when it doesn't work out from an ongoing employment situation. I want to be friendly toward them -- and them toward me if I see them at the market.  

However, capitalism shouldn't be a license to fuck other people or to be a dick. Unfortunately, that's what the US version of capitalism has come to stand for.  It's hard for me not to be disgusted by the financial shenanigans of wall street over the past few years. And you should know, I believe in universal health care.

However, this wasn't meant to be a political post. It's a personal post. My dad is a rheumatologist. He's been in private practice for about 40 years and has worked the majority of his professional life with the same hospital. Just recently, my dad's practice stopped receiving referrals from that hospital. No one bothered to communicate that to my dad.  As a result, my dad's business was affected ....but more importantly, his sense of connection to a career and to people has been deeply wounded. 

I'm seeing where I want this post to go now. 

I guess the thing that disturbs me the most is that the hospital didn't call and tell him directly of they're decision to stop referrals. It's this loss of human relation and acknowledge -- that may be uncomfortable or hard -- that is so important.  It's not just business -- it is often very personal.  

I know that the scenario I layed out is subjective and complex. I know there's many other sides to the story. But, I'm feeling bad for the humiliation my dad must feel after working somewhere 40 years and having that disregarded. That's gotta feel shitty. And at the very least -- this post acknowledges him and his work. 

Entrepreneurial tip of the day: remove the hair from the sink, don't hide from the tough or gross stuff

Every entrepreneur faces numerous challenges.  More often than not the hardest ones people attempt to ignore.  Let me give you a few, for examples:

  • revenue isn't scaling at the rate it should
  • one of your VPs isn't a cultural fit and does a mediocre job
  • traffic to your website comes from black hat techniques and you have white hat advertisers

I could give you LOTS more examples. 

The point of this post is that given that there's lots of hard stuff to face, the sooner you acknowledge the issue, the sooner you can step up to fixing the issue. It's rare -- if ever -- these issues just resolve themselves without direct confrontation.  One skill you need to develop is the ability to step up and bring these issues from the dark into the light and to deal with them effectively, cleanly, and generously. 

It may be easy to hide -- but hiding only makes the problem linger. 

What bothers me still about Seattle?

I've been living in Seattle for a decade now. I have grown to really like Seattle and the pacific northwest, more generally. However, I was reminded this past week of a few things that I don't like about Seattle. The following is a list of stuff that bothers me about Seattle:

  • Matzah ball soup -- there's no good place to get this soup. period.
  • Swimming pools -- I've struggled to find a world class swim center any where near Seattle. And federal way is not close enough to Seattle to make swimming there practical. 
  • Basketball -- losing the sonics sucked. I grew up watching Larry Bird, Kevin McHale, and Robert Parish and the Boston Celtics. Professional sports seemed to be lacking. The Sounders are great! But, they don't play basketball.
  • Traffic -- and the lack of traffic solutions. Why can't we make a friggin' decision about the 520 bridge and the viaduct. 
  • Public access to the water -- I just got back from Vancouver. Why we allowed lake washington and lake union to be private spaces without making the first 100 feet of access more public was a mistake. Just imagine this city if each body of water were like Green lake!
  • Sun in the winter -- I still need more sun than I get in the winter. It's not the rain that bothers me...it's the lack of sun.  That said, this winter was great!

Marketing TechStars: get in on the action

I'm totally having fun with the community -- trying to let everyone know that applications are open and due June 1, 2010.  And, I'm happy to report that folks in the community are helping me get the word out and I'm deeply appreciative. Marcelo and Jennifer of Seattle 2.0 have been helping me. The TechStars mentors have been helping out. The venture capital community has been getting into the spirit. Here's a photo that I received from Erik Benson of Voyager Capital yesterday  - the photo if you can't see it is a picture of the TechStars brochure at Voyagers reception desk. 

TechStars doc at voyager
 

And now you can help too!  Please help me get the word out by forwarding the following email to folks you know in your company and in the community that you think would be appropriate:

Re: Want mentorship and investment for your startup?

TechStars is a mentorship-driven seed stage investment program.  It is now accepting applications for the inaugural 2010 Seattle class.  Applications are due by June 1, 2010 and the program kicks-off on August 16, 2010.  The Seattle program is funded by every major venture capital firm in Seattle.  We are reaching out to every organization in Seattle that works with entrepreneurs to help spread the word about the program.  There is more information about TechStars online, www.techstars.org.  Any help you can provide in promoting the program or encouraging exciting young companies and engineers to apply is greatly appreciated. 

Notes from Founder's only meeting at Founder's Co-op

Last night we had most of the founder's come to the Founder's Co-op office for our second "founder's only" event. We now hold these meetings every other month.  I'd say the event was a win. We met for 2.5 hours and then had dinner.  The meeting started with everyone doing a shot of Maker's Mark whiskey.  I blogged last time how we were going to have an symbolic drink at each Founder's Only meeting -- last time, we didn't have Maker's so we had Patron tequila.  The Maker's Mark set the right tone for the meeting. The agenda was as follows:

  • Everyone go around and give a 1 word assessment of how they're feeling
  • Go around and get high's and lows report from each company. Followed by -- what item would you like to talk about in small groups? or more succinctly, what issue would you like input on from other entrepreneurs?
  • We then broke out into 2 smaller groups: one group was the sales and marketing group, the second group was the strategic prioritization group. 

I met with the strategic prioritization group.  The question we talked about was given the wide range of options of tasks to undertake at a small group, how do you prioritize?  The following tactical steps came out of the meeting:

  • Schedule in your calendar a day a month for the founder's to leave the office and talk about strategy and priorities
  • Every day come in and write down on a piece of paper the highest priority thing to accomplish that day. Get it down before lunch. 
  • If you're making revenue traction, be satisfied with where you're at and what you're doing. It's too easy to get distracted by the company that just sold for 1 Billion dollars and wishing it was your company. It's ok if you're not Groupon or Zynga.
  • It's your job to know where you're headed. 
  • When in doubt, focus narrower rather than expand. 
  • Get dominance before expanding. To do this, you need to define very clearly and quantitatively what dominance means. 
  • Business is hard -- don't expect it to be easy.  Growth is hard. 

Raising capital is an emotional process not a rational process

The other night I spoke about how raising capital is an emotional process. I can't emphasize this enough. The entire process of raising capital -- is an exercise in managing relationships.  Investors want to feel good about their investment.  Investors want to like the entrepreneur and feel confident in the person's ability to execute the business. Once you recognize this fact, below are some concrete tips for raising capital:

  • Ask investors questions -- understand who they are and their rationale behind past investment decisions
  • Ask questions about who they are - - where they live, what they listen to and what they watch
  • Entitlement has no role in the financing process
  • If you screw up, apologize
  • Recognize the process is a game, play it to the best of your ability
  • When your raise your money, say thank you
  • If you switch investors abruptly, apologize.

Remember it's not business, it's personal .  Entrepreneurs should ignore this fact at their peril. 

Feedback from last nights twiistup event: How to make a great entrepreneurial panel or event

I spoke at an entrepreneurial panel last night with Geoff Entress. After talking and answering questions for about 1 hour I asked the audience if they had any constructive feedback on how to make the panel better. We received the following feedback:

  • Serve alcoholic drinks -- Neil Patel had already figured that out and had arranged for an open bar.  I think panels are really just like weddings  -- you need to hit the audience with alcohol and good snacks immediately after the ceremony. Neil understands this.
  • Improve networking -- During the drink hour, figure out a way of structuring the networking so more people meet the right people. There are lots of ways to do accomplish this -- e.g. a bell or chime where you have to move on and introduce yourself to someone new...The important thing is understanding why the audience is there is less about the panel and more about networking. 
  • Improve one-on-one access to panelists -- The larger the audience the harder it to connect audience and panelist one-on-one.  In fact, making one-on-one connections is hard to do with almost any size audience. However, the audience clearly has the desire to get individual advice and contact with the panel.  NWEN has created a unique "eDate" event where they have a larger number of experts to meet for 3 minutes individually with entrepreneurs. I think this is a great idea and the event has been well received.  
  • Present case studies -- people like to hear detailed stories of financings.
  • Role play -- Someone in the audience wanted to "watch" a real pitch and then have the panel critique the pitch.  

What Seattle startup scene needs?

Seattle needs:

...more big exits from Seattle technology companies

Picnik was nice.  But zillow, redfin, cheezeburger and others. It'd be good if we could get some companies exiting with greater than $100 million exit club. 

....more great entrepreneurial talent

This may be the thing that creates the above exits. And this may be the thing that the city needs most and is having the hardest time developing.  The UW is great - but Seattle can't compete with universities in Boston or San Francisco.   This single bullet point is the thing that attracted me most to doing TechStars in Seattle. Recruiting great entrepreneurial talent. 

....more great angel investors. 

Geoff Entress is the Ron Conway of Seattle. And the group of entrepreneurs we've pulled together at Founder's Co-op are active. But, Seattle needs more individuals willing to take the earliest stage risk associated with technology companies.  More angels investing money means a more vibrant early stage technology scene. 

....more awesome engineers

That are not trained by local HUGE companies. Or engineers that are determined to play with code and keep playing until they figure out stuff that works for people. There can never be enough talented technical people playing with codes driven to build things of value for people.  I'd particularly like to see Seattle capitalize on it's gaming roots and become a bigger player in the virtual economy space. The folks at Big Door Media are great -- but we need more cutting edge game companies. 

The forgotten gift list

I've been very busy lately with work and family related stuff. I used to be good at acknowledging lots of things with the occasional note or gift.  As I've gotten busy, I've dropped the ball on lots of stuff -- not least of which is some thank you notes and acknowledgement gifts. So, here's my list of stuff I've forgotten -- it's not meant to be comprehensive: 

  • Jay Haynes - wedding gift and baby gift. I wanted to get you guys a nice dinner with or without me. At this point, it better be without me. 
  • Michael Oiknine - baby #4 gift. You set the standard of a loving relationship and adding a 4th child. OMG.  Harvard baby clothes might be in order. 
  • My daughter - for getting into Lakeside.  Gotta get a t-shirt from the school....or at least an itunes gift card. 
  • Mitch Brandow - baby #1 gift. Flowers for your wife, a bottle of wine or a kid insurance product might appropriate.
  • Schoeny -- for making a wise job choice.  A bag of Fortune cookies seems appropriate. 
  • Greg Gottesman - I owe you a thank you note
  • Erik Benson & Randall Lucas -- I know you're fans of wine but I don't know the first thing about it. I've been embarrassed to show my ignorance.  Belated christmas/ Hanukkah and appreciation gifts.
  • Geoff Entress -- Some theo chocolates because I think you're a sweet guy -- and I love doing deals with you. 
  • Brother Steve -- your birthday is in two days. I'll likely forget. Happy bday. Happy 40th bday to Christine too.
  • I'm realizing this list could go on and on....and probably should.  Lesson learned. I need to get better at sending these gifts real time. 

Why late nights, tequila and ping pong are vital to your start up

While none of the things listed in the title of this post in particular matter; what matters is the spirit behind these things. It's important to develop, foster, and embrace startup culture.  And developing a strong culture of lightness and fun for a startup becomes more important to do this as time and a company march on.  Building a startup is hard work and the companies whose founders keep a spirit of fun about themselves and their work place have a higher likelihood of success in my opinion. 

I was recently talking an entrepreneur who has a profitably company that is approaching 3 years old. HIs company has been setting monthly revenue and profit high water marks each month this year. Yet, he was feeling melancholy and down. I told him that he needed to overcome the 3 year itch of a startup. I told him to go away for a week, get rejuvenated, set up fun things for himself and for his team to do over the next 12 months and that doing so was part of his job. 

TechStars: Seattle's Brewin'

I got this email from David Cohen the other day-- the founder and grand-poobah of TechStars....

Andy, 

Boulder   rocks , I <3 Boston, Seattle _________?

David

He suggested "Seattle is Super" -- I told him that was stupid. He agreed. 

"Seattle's sunny" -- oddly inappropriate. 

So....Seattle's brewin'. Expect to see that tagline around.  

And this logo.  Seattle techstars icon
 

Crazy, excellent day to start TechStars Seattle open applications: an awakening

We had OpenCoffee at Louisa's today -- and it was a dedicated informal coffee for those folks who wanted to learn more about TechStars, the application process, the selection process, and the results to date -- which are impressive (7 out of 10 TechStars companies gets funded to a legit series A).   

Entrepreneurs and teams abounded -- I found myself in a number of really interesting conversations. One of the best was one entrepreneur who explained how excited he was to have quit his day job at BIG company locally and to be starting his own company. He explained in a voice that was all to believable how deadening it felt to work at this particular company and how energized he was by the process of starting a company and by the energy at Louisa's this morning. His explanation resonated for me -- it reminded me of when I started my first company and the whole experience was awakening and enlivening.  Helping people like this in Seattle reminded me of why I am working with TechStars -- like the entrepreneurs -- ti's certainly not the PAY!  It's all about the feeling!

There were a number of investors in TechStars Seattle who came to check the coffee out: Greg Gottesman from Madrona, Michelle Goldberg from Ignition, and Brad Feld from Foundry Group were there. 

Thanks to everyone -- sorry if I didn't get a chance to buy your coffee -- it had been my intention to buy everyone coffee but Louisa's couldn't figure out how to do that easily!  Oh well.  

Getting lost in the entrepreneurial woods is dangerous? You may not emerge

This post could have been about the great aspects of being an entrepreneur. The sense of adventure and discovery that comes from working toward your own destiny. That's not what this post is about. 

Rather, this post is about the danger that early stage technology companies face when they lose their way. It's normal for entrepreneurs to not have all the answers and thus to feel lost at times. It's part of the job and the sense of adventure. However, there are times when early stage companies totally lose their sense of direction. I've seen this -- even experienced it. It's not fun. 

When this happens, the whole start up organization starts to leak energy as the company drifts in this direction and that. It's very much like a row boat at sea with one oar. 

Don't allow this to happen to you in your company. 

The way to avoid this is to stay super close to your customer and keep solving and addressing their needs.In addition, you should develop forcing functions for yourself as an entrepreneur. For example, write down the list of short term decisions that have to be made each month and what milestone has to be met -- and then, don't let yourself slip from that timeline and schedule.  This practice can act as a forcing function to make decisions about moving the product, marketing, and organization in some direction. And some direction is better than no direction.  The direction may not be the best or right direction but it at least gets you moving out of the entrepreneurial woods -- i.e. moving out of the vortex and whirlpool of founder's who are confused about what business they're building.