My new favorite show: Cake Boss

My daughter introduced me to Cake Boss and I've decided it's my new favorite show.  It's a reality television show about Buddy and his family business of making the most outrageous cakes you've ever scene.  I'm not sure why it's my favorite show: I like the main character, I like seeing the insides of an Italian family business, and I really enjoy watching the process of designing and making the cakes. I think the thing I like most is that it just seems like this guys life is about creating and making people happy. I'm a sucker but I started to tear up after watching one episode. 

What people don't understand about TechStars...

I get asked about TechStars all the time -- and I think a number of folks don't understand the benefits of applying.  I've started at least 4 and sold 3 companies successfully -- if I were starting a new company, I'd seriously consider applying and doing the TechStars dance. Here's why:

  • Stand out from the rest of other startups -- TechStars really helps young companies stand out from all the other startup noise that is in the marketplace. Getting into TechStars give you the opportunity to talk to lots of folks that you wouldn't otherwise --and make the case as to why you and your company will succeed. 
  • Get feedback from smart people -- TechStars gives you lots of feedback from smart people of all types. This feedback is incredibly valuable. If you're not in TechStars, you've got to hustle, call and seek this feedback out on your own. It takes lots of time and is hard. Because of the relationship to the mentor community, we make that process much easier. 
  • Get introductions to potential customers and partners  -- For companies that get into TechStars, your ability to get access to people at other companies is awesome. Mentors will really help you get doors opened that you otherwise wouldn't be able to open. 
  • Be surrounded by other people living the same dream -- You will have fun. TechStars is fun. 
  • Raise money at a higher valuation than you would if you weren't in the program -- I don't think you should do TechStars simply because it helps you raise money. I don't think the real value of the program is the money. But I know a number of you can't help but calculate this in your head and be skeptical of all the folks supporting TechStars. Here's the simple math you have to believe: TechStars will increase  your valuation more than the dilution that occurs at the beginning of the program. In my mind this is a no-brainer. Moreover, TechStars will help me find, pitch and close investors more quickly than if I didn't do TechStars.  Let me be clear -- we make no promises. It's up to you as an entrepreneur to get into TechStars and then to raise capital. But we certainly can give you every opportunity to succeed. 

If any of this rings true for you, you can apply here before June 1, 2010.

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. 

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. 

I'm looking to hire a part time marketing assistant for TechStars Seattle

I haven't even fully crafted the job description yet but I know I need some help getting the word out. If you know someone or are interested in helping on the marketing and administrative side of TechStars in Seattle I'd appreciate it. When I get the job description written -- I'll be sure to post it. Should be in the next 24 hours. 

Business tip of the day: interview 10 target customers before building products

The most common mistake I see technical entrepreneurs make is when the entrepreneur pushes solutions onto a market without talking to real customers in that market.  Getting feedback and input is the life blood of an entrepreneur. More is better than less because it lowers the likelihood that you get steered in the wrong direction. 

I know this because I made this mistake in the past -- and spending years pounding one's head against a market wall pushing is not fun (take my word for it). I now am increasingly obsessed with the amount and type of market research that entrepreneurs do before building product. 

Before talking to me about investing in your company, make sure you've really interviewed and understood at least 10 potential target customers. 

Why is passion so important to a startup?

You hear investors and start up gurus talk all the time about the importance of entrepreneurial passion but I haven't seen anyone talk about why it's so important. It's almost as if everyone thinks the answer is self-evident. In my role at Founder's Co-op, I'm seeing multiple companies at the same stage struggle and think I have identified some (by no means all) of the reasons passion is so critical to a startup founding team. Passion gives founders :

  1. The ability to continually motivate and re-invent: By definition, founder's don't have all the answers. They are in a learning mode. They are learning what customers wants, how they're going to charge, how they'll scale, etc.  They are often crude implementations of what they aspire to be and as such, founders inevitably will have to overcome rough patches and patches where they don't know what the right answer is. Enter passion. Passion makes overcoming this lack of answers possible and fun. 
  2. The willingness to work longer hours than the average person. 
  3. The energy to sell customers, employees, and investors possible. It allows you to overcome all the "no's" you'll hear day in and day out. 
  4. The will to take feedback on limitations of yourself and your corporation and actually do something about it. 
  5. The desire to persevere and persist when the going gets tough.  

In a nutshell, passion is the word people use to attach to all the emotional aspects of founding a team that require energy, inventiveness, fun to overcome.

Important life ritual - the college ski trip

Spent last weekend with 3 guys from college. We all attended Brown University and graduated in 1990. Starting in 2002, we began an annual weekend ski trip. This photo below is from our 8th annual get together last weekend. This simple ritual has become an increasing important and amazing marker in time in my own life and in the life of our collective friendship.  When we started getting together, I believe I was the only one married and had one child. Today, we're all married and have 10 kids in aggregate. It's the regular check in as life progresses and the accumulated history that makes the ritual so rich.  

All this is to say -- I had a great weekend this past weekend. We skied at Snow Basin for 3 days. The weekend was filled with skiing, competitive bowling on the wii, alcohol, food, massages, hot tubs, and good conversation. Thanks to my friends for making this ritual a priority -- I love you man.  

SLC ski weekend
 

Vacation value

I returned this week from a week long vacation to Whitefish, MT.  We went with 2 other families and spent the week snowboarding and skiing.  I didn't check voice mails or emails very much if at all. We'd ski all day until three or four o'clock, go home sit in the hot tub, have dinner, watch Olympics and go to bed.   

It was a relatively simple holiday -- but I found my head clear up and was able to think with perspective after a few mad rushes down the mountain.  Much of the perspective came from just doing something other than regular routine of work. 

I'm excited to be back at work and feel like I'm going to have a busy year. TechStars is going to be ramping up next month.  We're closing a number of deals at Founder's Co-op.  More to come -- I need to ramp my blogging back up too!

If I had a nickel for every groupon copycat....I'd have at least a buck

If imitation is the greatest form of flattery, then Groupon should be flattered.  I keep getting pitched on various forms of the groupon model.  No wonder -- the site has been nothing short of a cash phenom. If you don't know what I'm talking about you should check the site and the business model out. It's  a super simple online deal of the day site. 

Groupon just goes to prove that as soon as someone figures out a simple way to make money online, people are going to copy you.  Copying plus innovation is the way online innovation happens so I don't have a real problem with it.