welcome back to segment two of the show we’re talking to Brad Feld now we’re
we’re talking to Brad Feld now we’re
we’re talking to Brad Feld now we’re going to talk a little bit about is
going to talk a little bit about is
going to talk a little bit about is there a pattern you know like is there a
there a pattern you know like is there a
there a pattern you know like is there a certain DNA or formula or recipe for
certain DNA or formula or recipe for
certain DNA or formula or recipe for success I personally assuming anybody
success I personally assuming anybody
success I personally assuming anybody cares i always say it’s vision ambition
cares i always say it’s vision ambition
cares i always say it’s vision ambition execution determination luck and timing
execution determination luck and timing
execution determination luck and timing that’s not studying a lot of successful
that’s not studying a lot of successful
that’s not studying a lot of successful people first I’ll do you agree with
people first I’ll do you agree with
people first I’ll do you agree with those six ingredients am I missing one
those six ingredients am I missing one
those six ingredients am I missing one or some of them don’t belong I can’t
or some of them don’t belong I can’t
or some of them don’t belong I can’t remember six things in a row so there’s
remember six things in a row so there’s
remember six things in a row so there’s too many of them okay so they all
too many of them okay so they all
too many of them okay so they all sounded good but sound very good yeah
sounded good but sound very good yeah
sounded good but sound very good yeah that’s that’s the poem it just sound
that’s that’s the poem it just sound
that’s that’s the poem it just sound good yeah a nice word yeah examined
good yeah a nice word yeah examined
good yeah a nice word yeah examined multiple civil okay well that’s actually
multiple civil okay well that’s actually
multiple civil okay well that’s actually the point are there let’s start off
the point are there let’s start off
the point are there let’s start off before assuming that there are two or
before assuming that there are two or
before assuming that there are two or three is there a formula for successful
three is there a formula for successful
three is there a formula for successful entrepreneurs and successful companies
entrepreneurs and successful companies
entrepreneurs and successful companies in your portfolio so in my universe yes
in your portfolio so in my universe yes
in your portfolio so in my universe yes I don’t have any idea whether it’s
I don’t have any idea whether it’s
I don’t have any idea whether it’s statistically relevant for the whole
statistically relevant for the whole
statistically relevant for the whole universe so I don’t think about it that
universe so I don’t think about it that
universe so I don’t think about it that way but from the standpoint of the
way but from the standpoint of the
way but from the standpoint of the things that we’ve been involved in there
things that we’ve been involved in there
things that we’ve been involved in there are a couple of very clear traits that
are a couple of very clear traits that
are a couple of very clear traits that are common the first is that we’re
are common the first is that we’re
are common the first is that we’re investing in entrepreneurs who are
investing in entrepreneurs who are
investing in entrepreneurs who are incredibly obsessed with a product so
incredibly obsessed with a product so
incredibly obsessed with a product so the way we make decisions about what we
the way we make decisions about what we
the way we make decisions about what we want to invest in is we focus on a set
want to invest in is we focus on a set
want to invest in is we focus on a set of themes and if you’re not within a
of themes and if you’re not within a
of themes and if you’re not within a theme which you can find at foundry
theme which you can find at foundry
theme which you can find at foundry group com / themes if you’re not within
group com / themes if you’re not within
group com / themes if you’re not within the theme we pass immediately if you’re
the theme we pass immediately if you’re
the theme we pass immediately if you’re was in a theme these are areas we know
was in a theme these are areas we know
was in a theme these are areas we know extremely well they’re areas that we’ve
extremely well they’re areas that we’ve
extremely well they’re areas that we’ve you have you know 20 plus years of
you have you know 20 plus years of
you have you know 20 plus years of investing opportunity and how many
investing opportunity and how many
investing opportunity and how many things are there about a half a dozen
things are there about a half a dozen
things are there about a half a dozen but they literally they evolve all the
but they literally they evolve all the
but they literally they evolve all the time human-computer interaction would be
time human-computer interaction would be
time human-computer interaction would be a theme the premise that the way we
a theme the premise that the way we
a theme the premise that the way we interact with computers over the next 20
interact with computers over the next 20
interact with computers over the next 20 years will change radically protocol
years will change radically protocol
years will change radically protocol companies that are built around both
companies that are built around both
companies that are built around both real technology protocols ITF protocols
real technology protocols ITF protocols
real technology protocols ITF protocols as well as ad hoc protocol so email smtp
as well as ad hoc protocol so email smtp
as well as ad hoc protocol so email smtp push notifications right they don’t have
push notifications right they don’t have
push notifications right they don’t have to be a standardized protocol but a
to be a standardized protocol but a
to be a standardized protocol but a thing that comes accepted as a protocol
thing that comes accepted as a protocol
thing that comes accepted as a protocol glue which in the 1980s would have been
glue which in the 1980s would have been
glue which in the 1980s would have been called middleware and that is
called middleware and that is
called middleware and that is essentially the
essentially the
essentially the stuff that glues together machine to
stuff that glues together machine to
stuff that glues together machine to machine interaction we have another
machine interaction we have another
machine interaction we have another theme called adhesive which is glue in
theme called adhesive which is glue in
theme called adhesive which is glue in the ad tech universe so we don’t like to
the ad tech universe so we don’t like to
the ad tech universe so we don’t like to invest in ad networks and we’re not ad
invest in ad networks and we’re not ad
invest in ad networks and we’re not ad tech investors but we invest in this
tech investors but we invest in this
tech investors but we invest in this glue layer so those are a couple of the
glue layer so those are a couple of the
glue layer so those are a couple of the examples for us once something’s in that
examples for us once something’s in that
examples for us once something’s in that in one of those categories one of those
in one of those categories one of those
in one of those categories one of those themes we go very very deep on the
themes we go very very deep on the
themes we go very very deep on the people and the product and our focal
people and the product and our focal
people and the product and our focal point is we want entrepreneurs who we
point is we want entrepreneurs who we
point is we want entrepreneurs who we want to be partners with for a long time
want to be partners with for a long time
want to be partners with for a long time and they want to be partners with us for
and they want to be partners with us for
and they want to be partners with us for a long time so it’s both directions they
a long time so it’s both directions they
a long time so it’s both directions they have to choose us as much as we choose
have to choose us as much as we choose
have to choose us as much as we choose them and then we’re looking for
them and then we’re looking for
them and then we’re looking for entrepreneurs who incredibly obsessed
entrepreneurs who incredibly obsessed
entrepreneurs who incredibly obsessed about a product and in most cases it’s a
about a product and in most cases it’s a
about a product and in most cases it’s a product that we have an affinity for it
product that we have an affinity for it
product that we have an affinity for it doesn’t have to absolutely be a product
doesn’t have to absolutely be a product
doesn’t have to absolutely be a product that we have an affinity for but they
that we have an affinity for but they
that we have an affinity for but they have to have a deep affinity for it the
have to have a deep affinity for it the
have to have a deep affinity for it the best of those entrepreneurs over time
best of those entrepreneurs over time
best of those entrepreneurs over time make their company the product so they
make their company the product so they
make their company the product so they start with this incredible obsession on
start with this incredible obsession on
start with this incredible obsession on a product and over time scale it up as
a product and over time scale it up as
a product and over time scale it up as the business gets bigger where the
the business gets bigger where the
the business gets bigger where the company becomes it those are the two
company becomes it those are the two
company becomes it those are the two things we’re looking for and it’s it’s
things we’re looking for and it’s it’s
things we’re looking for and it’s it’s had you know incredible correlation
had you know incredible correlation
had you know incredible correlation people who were working on something
people who were working on something
people who were working on something just because they wanted to be an
just because they wanted to be an
just because they wanted to be an entrepreneur or thought the idea was
entrepreneur or thought the idea was
entrepreneur or thought the idea was good but weren’t obsessed about it there
good but weren’t obsessed about it there
good but weren’t obsessed about it there are a lot of different personality
are a lot of different personality
are a lot of different personality traits I think trying to segment by
traits I think trying to segment by
traits I think trying to segment by personality traits has not been terribly
personality traits has not been terribly
personality traits has not been terribly successfully invest in lots of
successfully invest in lots of
successfully invest in lots of introverts a lot of extrovert spear
introverts a lot of extrovert spear
introverts a lot of extrovert spear intrinsically motivated X kinetically
intrinsically motivated X kinetically
intrinsically motivated X kinetically motivated a whole range of experience
motivated a whole range of experience
motivated a whole range of experience along the curve technical founders
along the curve technical founders
along the curve technical founders non-technical founders all have been
non-technical founders all have been
non-technical founders all have been successful and by the way all have been
successful and by the way all have been
successful and by the way all have been unsuccessful right so like those don’t
unsuccessful right so like those don’t
unsuccessful right so like those don’t seem to be the balance points for us you
seem to be the balance points for us you
seem to be the balance points for us you touched on a lot of good stuff one of
touched on a lot of good stuff one of
touched on a lot of good stuff one of them was this notion that you want your
them was this notion that you want your
them was this notion that you want your PO your entrepreneurs to be partners
PO your entrepreneurs to be partners
PO your entrepreneurs to be partners with you for a long time what are your
with you for a long time what are your
with you for a long time what are your thoughts on the whole sort of pivoting
thoughts on the whole sort of pivoting
thoughts on the whole sort of pivoting failing fast recent you know yeah mantra
failing fast recent you know yeah mantra
failing fast recent you know yeah mantra so I think that I think that there’s
so I think that I think that there’s
so I think that I think that there’s some amazingly important things about
some amazingly important things about
some amazingly important things about the notion of failing fast and pivoting
the notion of failing fast and pivoting
the notion of failing fast and pivoting that are grotesquely misinterpreted so
that are grotesquely misinterpreted so
that are grotesquely misinterpreted so the thing that’s important to recognize
the thing that’s important to recognize
the thing that’s important to recognize is that any business is a series of
is that any business is a series of
is that any business is a series of things at work and things that don’t
things at work and things that don’t
things at work and things that don’t work and the great entrepreneurial
work and the great entrepreneurial
work and the great entrepreneurial curves and the great startups are the
curves and the great startups are the
curves and the great startups are the ones that when you realize something’s
ones that when you realize something’s
ones that when you realize something’s not working you pivot or you kill it and
not working you pivot or you kill it and
not working you pivot or you kill it and you double down on the stuff that’s
you double down on the stuff that’s
you double down on the stuff that’s working and you continue to do that
working and you continue to do that
working and you continue to do that through the life of the company so
through the life of the company so
through the life of the company so companies aren’t these straight lines of
companies aren’t these straight lines of
companies aren’t these straight lines of success of different vertical slope so
success of different vertical slope so
success of different vertical slope so these sort of you know crazy oscillating
these sort of you know crazy oscillating
these sort of you know crazy oscillating things where your hope is that over time
things where your hope is that over time
things where your hope is that over time you have the success the the
you have the success the the
you have the success the the misinterpretation is this notion that
misinterpretation is this notion that
misinterpretation is this notion that you should give up that you should throw
you should give up that you should throw
you should give up that you should throw it away there are cases where you should
it away there are cases where you should
it away there are cases where you should call it quits oh you know I’ve had the
call it quits oh you know I’ve had the
call it quits oh you know I’ve had the conversation with a number of
conversation with a number of
conversation with a number of entrepreneurs who went on to have an
entrepreneurs who went on to have an
entrepreneurs who went on to have an amazing next experience when they held
amazing next experience when they held
amazing next experience when they held on to this thing that just wasn’t
on to this thing that just wasn’t
on to this thing that just wasn’t working and you say look just just let
working and you say look just just let
working and you say look just just let go like this one didn’t work and the
go like this one didn’t work and the
go like this one didn’t work and the entrepreneurs who go through a success
entrepreneurs who go through a success
entrepreneurs who go through a success curve and a failure curve or the ones
curve and a failure curve or the ones
curve and a failure curve or the ones that are the most fun to work with
that are the most fun to work with
that are the most fun to work with because they know what they both taste
because they know what they both taste
because they know what they both taste like and so they’re able to sort of
like and so they’re able to sort of
like and so they’re able to sort of understand that in their brain versus
understand that in their brain versus
understand that in their brain versus the ones who’ve i’ve only ever been
the ones who’ve i’ve only ever been
the ones who’ve i’ve only ever been successful you know and you’re in this
successful you know and you’re in this
successful you know and you’re in this denial about what’s actually really
denial about what’s actually really
denial about what’s actually really going on or then the other side of it
going on or then the other side of it
going on or then the other side of it which is the ones who have not tasted
which is the ones who have not tasted
which is the ones who have not tasted success that’s okay too is just harder
success that’s okay too is just harder
success that’s okay too is just harder because then you’re sort of in this
because then you’re sort of in this
because then you’re sort of in this cycle especially if you had two or three
cycle especially if you had two or three
cycle especially if you had two or three things that haven’t worked where you’re
things that haven’t worked where you’re
things that haven’t worked where you’re struggling to see what that success
struggling to see what that success
struggling to see what that success curve really is how much of your job is
curve really is how much of your job is
curve really is how much of your job is that like almost being a cheerleader /
that like almost being a cheerleader /
that like almost being a cheerleader / psychologist with the entrepreneur or is
psychologist with the entrepreneur or is
psychologist with the entrepreneur or is that something that you or other
that something that you or other
that something that you or other investors sort of shy away from because
investors sort of shy away from because
investors sort of shy away from because you don’t want to be yeah I actually
you don’t want to be yeah I actually
you don’t want to be yeah I actually don’t know about other investors nor do
don’t know about other investors nor do
don’t know about other investors nor do I really care so I think I sort of good
I really care so I think I sort of good
I really care so I think I sort of good from the standpoint of what what my
from the standpoint of what what my
from the standpoint of what what my three partners yeah well my three
three partners yeah well my three
three partners yeah well my three partners I our guys say Brad’s universe
partners I our guys say Brad’s universe
partners I our guys say Brad’s universe boundaries University what we’re good at
boundaries University what we’re good at
boundaries University what we’re good at and what we what are our values I think
and what we what are our values I think
and what we what are our values I think an enormous amount of what we do is be
an enormous amount of what we do is be
an enormous amount of what we do is be intellectual and emotional support for
intellectual and emotional support for
intellectual and emotional support for the entrepreneurs and for the CEOs of
the entrepreneurs and for the CEOs of
the entrepreneurs and for the CEOs of the companies who oftentimes are the
the companies who oftentimes are the
the companies who oftentimes are the same as the entrepreneurs that it’s both
same as the entrepreneurs that it’s both
same as the entrepreneurs that it’s both intellectual and emotional like we can
intellectual and emotional like we can
intellectual and emotional like we can provide lots of knowledge and experience
provide lots of knowledge and experience
provide lots of knowledge and experience and lots of you know from my experience
and lots of you know from my experience
and lots of you know from my experience I did this or I think you should think
I did this or I think you should think
I did this or I think you should think about this way but an awful lot of that
about this way but an awful lot of that
about this way but an awful lot of that is just emotional to write being a CEO
is just emotional to write being a CEO
is just emotional to write being a CEO of a company is really lonely and it’s
of a company is really lonely and it’s
of a company is really lonely and it’s especially lonely when things aren’t
especially lonely when things aren’t
especially lonely when things aren’t going the way you want them to go or
going the way you want them to go or
going the way you want them to go or when you haven’t had the experience Rand
when you haven’t had the experience Rand
when you haven’t had the experience Rand Fishkin from SEO Moz you know wrote a
Fishkin from SEO Moz you know wrote a
Fishkin from SEO Moz you know wrote a great blog I saw today
great blog I saw today
great blog I saw today blog about essentially slowing down to
blog about essentially slowing down to
blog about essentially slowing down to speed up and sort of the dislocation
speed up and sort of the dislocation
speed up and sort of the dislocation that happens after you raise a big
that happens after you raise a big
that happens after you raise a big financing after you’ve had a company
financing after you’ve had a company
financing after you’ve had a company that hasn’t had a lot of money and you
that hasn’t had a lot of money and you
that hasn’t had a lot of money and you see this I’ve seen this over and over
see this I’ve seen this over and over
see this I’ve seen this over and over again you have a period of six months
again you have a period of six months
again you have a period of six months where it feels like you’re stuck in
where it feels like you’re stuck in
where it feels like you’re stuck in molasses and you’re not you’re just
molasses and you’re not you’re just
molasses and you’re not you’re just doing things that aren’t externally
doing things that aren’t externally
doing things that aren’t externally visible and you’re building a foundation
visible and you’re building a foundation
visible and you’re building a foundation to be able to really accelerate the
to be able to really accelerate the
to be able to really accelerate the business and sometimes that doesn’t work
business and sometimes that doesn’t work
business and sometimes that doesn’t work but most of the time it does but the
but most of the time it does but the
but most of the time it does but the entrepreneur is used to this continual
entrepreneur is used to this continual
entrepreneur is used to this continual improvement on a shoestring all of a
improvement on a shoestring all of a
improvement on a shoestring all of a sudden thinks well I have all this money
sudden thinks well I have all this money
sudden thinks well I have all this money everything should be awesome and in fact
everything should be awesome and in fact
everything should be awesome and in fact you go through this sort of cycle where
you go through this sort of cycle where
you go through this sort of cycle where you question do we suck now we don’t
you question do we suck now we don’t
you question do we suck now we don’t know how to get these things out you
know how to get these things out you
know how to get these things out you know we’re slow your customers start
know we’re slow your customers start
know we’re slow your customers start saying hey used to release something
saying hey used to release something
saying hey used to release something once a week and it’s been two months
once a week and it’s been two months
once a week and it’s been two months what’s going on and figuring out all
what’s going on and figuring out all
what’s going on and figuring out all that stuff I mean we have we’ve seen it
that stuff I mean we have we’ve seen it
that stuff I mean we have we’ve seen it over and over again so i don’t have to
over and over again so i don’t have to
over and over again so i don’t have to say it’s okay don’t worry let me give
say it’s okay don’t worry let me give
say it’s okay don’t worry let me give you a hug i mean i can do that but you
you a hug i mean i can do that but you
you a hug i mean i can do that but you can also provide real substance around
can also provide real substance around
can also provide real substance around well this is what you’re going through
well this is what you’re going through
well this is what you’re going through and this is how i would encourage you to
and this is how i would encourage you to
and this is how i would encourage you to think about it and here’s some people to
think about it and here’s some people to
think about it and here’s some people to talk to and that’s very emotional versus
talk to and that’s very emotional versus
talk to and that’s very emotional versus just purely intellectual yeah the
just purely intellectual yeah the
just purely intellectual yeah the analogy I use is if you’re wandering in
analogy I use is if you’re wandering in
analogy I use is if you’re wandering in the desert with no water and also then
the desert with no water and also then
the desert with no water and also then they throw you in the pool that’s going
they throw you in the pool that’s going
they throw you in the pool that’s going to mess up your oh yeah yeah you totally
to mess up your oh yeah yeah you totally
to mess up your oh yeah yeah you totally screwed went through that I thousand
screwed went through that I thousand
screwed went through that I thousand eleven l’s like father’s okay so I had a
eleven l’s like father’s okay so I had a
eleven l’s like father’s okay so I had a question that was what’s the biggest
question that was what’s the biggest
question that was what’s the biggest mistake investors make but I won’t ask
mistake investors make but I won’t ask
mistake investors make but I won’t ask you that I’m gonna ask you what’s the
you that I’m gonna ask you what’s the
you that I’m gonna ask you what’s the biggest mistake you make or you’ve made
biggest mistake you make or you’ve made
biggest mistake you make or you’ve made and what you want i would say i would
and what you want i would say i would
and what you want i would say i would say there’s there’s two mistakes when i
say there’s there’s two mistakes when i
say there’s there’s two mistakes when i look back in history that i’ve made one
look back in history that i’ve made one
look back in history that i’ve made one mistake which i believe i don’t make
mistake which i believe i don’t make
mistake which i believe i don’t make very often anymore is not confronting
very often anymore is not confronting
very often anymore is not confronting reality as quickly as it appears so
reality as quickly as it appears so
reality as quickly as it appears so there are lots of cases where you see a
there are lots of cases where you see a
there are lots of cases where you see a path and you can predict that the path
path and you can predict that the path
path and you can predict that the path is going to go somewhere and you don’t
is going to go somewhere and you don’t
is going to go somewhere and you don’t confront the reality of it now there are
confront the reality of it now there are
confront the reality of it now there are cases where you decide to let the path
cases where you decide to let the path
cases where you decide to let the path play out because the entrepreneur needs
play out because the entrepreneur needs
play out because the entrepreneur needs to learn it for himself but there’s a
to learn it for himself but there’s a
to learn it for himself but there’s a way to do that while still confronting
way to do that while still confronting
way to do that while still confronting it and you know an examples you know
it and you know an examples you know
it and you know an examples you know example would be the company that has a
example would be the company that has a
example would be the company that has a fantasy expectation of what they’re
fantasy expectation of what they’re
fantasy expectation of what they’re going to sell and you know they build
going to sell and you know they build
going to sell and you know they build their cost structure associated with
their cost structure associated with
their cost structure associated with that fantasy expectation what they’re
that fantasy expectation what they’re
that fantasy expectation what they’re gonna sell it doesn’t mean that the
gonna sell it doesn’t mean that the
gonna sell it doesn’t mean that the entrepreneurs are bad or the company is
entrepreneurs are bad or the company is
entrepreneurs are bad or the company is bad you just you know that’s going to be
bad you just you know that’s going to be
bad you just you know that’s going to be at a calibration and I used to I used to
at a calibration and I used to I used to
at a calibration and I used to I used to not be as tuned into the best way to
not be as tuned into the best way to
not be as tuned into the best way to deliver that
deliver that
deliver that ice and in some cases sort of you know
ice and in some cases sort of you know
ice and in some cases sort of you know hope well I hope it’ll be okay versus
hope well I hope it’ll be okay versus
hope well I hope it’ll be okay versus saying I think this is what’s going to
saying I think this is what’s going to
saying I think this is what’s going to happen it’s your call whether you want
happen it’s your call whether you want
happen it’s your call whether you want to execute this way or not but here’s
to execute this way or not but here’s
to execute this way or not but here’s here’s the cutoff points that I’d
here’s the cutoff points that I’d
here’s the cutoff points that I’d encourage you to put in place got a lot
encourage you to put in place got a lot
encourage you to put in place got a lot better at that Prop number two is I when
better at that Prop number two is I when
better at that Prop number two is I when I started making investments in the
I started making investments in the
I started making investments in the first 40 angel investments i made it was
first 40 angel investments i made it was
first 40 angel investments i made it was all about people and product that was it
all about people and product that was it
all about people and product that was it as an investor I was just totally
as an investor I was just totally
as an investor I was just totally focused on people in product if it was
focused on people in product if it was
focused on people in product if it was if I had I want to be your partner and I
if I had I want to be your partner and I
if I had I want to be your partner and I think what you’re doing is awesome and I
think what you’re doing is awesome and I
think what you’re doing is awesome and I think you think what you’re doing is
think you think what you’re doing is
think you think what you’re doing is awesome let’s go I then went through a
awesome let’s go I then went through a
awesome let’s go I then went through a period of time when I was at mobius
period of time when I was at mobius
period of time when I was at mobius venture capital so 1997 to about two
venture capital so 1997 to about two
venture capital so 1997 to about two thousand and three ish where there are a
thousand and three ish where there are a
thousand and three ish where there are a whole bunch of other things that crept
whole bunch of other things that crept
whole bunch of other things that crept into the analysis is the market size big
into the analysis is the market size big
into the analysis is the market size big enough is a management team strong
enough is a management team strong
enough is a management team strong enough what’s the competitive dynamics
enough what’s the competitive dynamics
enough what’s the competitive dynamics and when I look at how we invest today
and when I look at how we invest today
and when I look at how we invest today we’re totally focused on people in
we’re totally focused on people in
we’re totally focused on people in product again and the biggest mistake
product again and the biggest mistake
product again and the biggest mistake that I made as an investor was losing
that I made as an investor was losing
that I made as an investor was losing that focal point losing the notion that
that focal point losing the notion that
that focal point losing the notion that you know if I knew you know what’s what
you know if I knew you know what’s what
you know if I knew you know what’s what why does it matter what the total
why does it matter what the total
why does it matter what the total available market is just pick a big
available market is just pick a big
available market is just pick a big market and if you can’t define what
market and if you can’t define what
market and if you can’t define what you’re doing is a big market why are you
you’re doing is a big market why are you
you’re doing is a big market why are you doing it and you certainly won’t be
doing it and you certainly won’t be
doing it and you certainly won’t be obsessed about something if the
obsessed about something if the
obsessed about something if the opportunity space isn’t big right so
opportunity space isn’t big right so
opportunity space isn’t big right so there’s some things that you can do to
there’s some things that you can do to
there’s some things that you can do to solve for that is a management team and
solve for that is a management team and
solve for that is a management team and the company when we thought when we
the company when we thought when we
the company when we thought when we invest in it going to be right of course
invest in it going to be right of course
invest in it going to be right of course not but part of what we can do is help
not but part of what we can do is help
not but part of what we can do is help make the management team awesome okay so
make the management team awesome okay so
make the management team awesome okay so I don’t want a segue into Zynga to
I don’t want a segue into Zynga to
I don’t want a segue into Zynga to assume or you know project that Zynga
assume or you know project that Zynga
assume or you know project that Zynga was a mistake thing I think it was an
was a mistake thing I think it was an
was a mistake thing I think it was an unbelievable company when most investors
unbelievable company when most investors
unbelievable company when most investors put in their money but clearly after the
put in their money but clearly after the
put in their money but clearly after the IPO something is off the rails like
IPO something is off the rails like
IPO something is off the rails like either the trains getting off the
either the trains getting off the
either the trains getting off the station off the rails or somebody is
station off the rails or somebody is
station off the rails or somebody is some things are happening that they
some things are happening that they
some things are happening that they don’t that they did not expect so my you
don’t that they did not expect so my you
don’t that they did not expect so my you could talk as much or as little about
could talk as much or as little about
could talk as much or as little about Zynga in particular but Zynga and I
Zynga in particular but Zynga and I
Zynga in particular but Zynga and I would say almost all of the social IPOs
would say almost all of the social IPOs
would say almost all of the social IPOs apart from LinkedIn make me wonder if
apart from LinkedIn make me wonder if
apart from LinkedIn make me wonder if the criticism that VCS are more
the criticism that VCS are more
the criticism that VCS are more concerned with just flipping a company
concerned with just flipping a company
concerned with just flipping a company and saying that some other sucker
and saying that some other sucker
and saying that some other sucker investors you know problem is valid do
investors you know problem is valid do
investors you know problem is valid do you think that investors are interested
you think that investors are interested
you think that investors are interested in building companies that scale and
in building companies that scale and
in building companies that scale and last or is it just companies that scale
last or is it just companies that scale
last or is it just companies that scale fast and then they
fast and then they
fast and then they sort of get liquidity well I think a
sort of get liquidity well I think a
sort of get liquidity well I think a venture capital investor and firm firms
venture capital investor and firm firms
venture capital investor and firm firms from firm to firm will have different
from firm to firm will have different
from firm to firm will have different strategies and sort of different views
strategies and sort of different views
strategies and sort of different views on what they do at foundry we view
on what they do at foundry we view
on what they do at foundry we view ourselves as early stage investors were
ourselves as early stage investors were
ourselves as early stage investors were not apologetic about it we view that
not apologetic about it we view that
not apologetic about it we view that what we’re doing is helping create a
what we’re doing is helping create a
what we’re doing is helping create a company our belief is that the great
company our belief is that the great
company our belief is that the great entrepreneurs are ones who are trying to
entrepreneurs are ones who are trying to
entrepreneurs are ones who are trying to create a company that is enduring for
create a company that is enduring for
create a company that is enduring for very long period of time and we view our
very long period of time and we view our
very long period of time and we view our role as helping and supporting the
role as helping and supporting the
role as helping and supporting the growth and development of that company
growth and development of that company
growth and development of that company up to one of two points the point at
up to one of two points the point at
up to one of two points the point at which somebody acquires the company well
which somebody acquires the company well
which somebody acquires the company well one of three points I guess the point
one of three points I guess the point
one of three points I guess the point which Scully fails a point at which
which Scully fails a point at which
which Scully fails a point at which somebody acquires the company or the
somebody acquires the company or the
somebody acquires the company or the point in which a company goes public a
point in which a company goes public a
point in which a company goes public a point what your company goes public is
point what your company goes public is
point what your company goes public is just another step along the company’s
just another step along the company’s
just another step along the company’s way but for the company for the way we
way but for the company for the way we
way but for the company for the way we invest in the time frame that we invest
invest in the time frame that we invest
invest in the time frame that we invest the IPO is a transition point for us
the IPO is a transition point for us
the IPO is a transition point for us from one stage of a business life to
from one stage of a business life to
from one stage of a business life to another and that transition point
another and that transition point
another and that transition point doesn’t happen on the day of pricing
doesn’t happen on the day of pricing
doesn’t happen on the day of pricing that transition point happens the day
that transition point happens the day
that transition point happens the day that the company decides to file i was
that the company decides to file i was
that the company decides to file i was on a bunch of public company boards in
on a bunch of public company boards in
on a bunch of public company boards in 2000-2001 time frame and i realized a
2000-2001 time frame and i realized a
2000-2001 time frame and i realized a lot of things one is wasn’t very
lot of things one is wasn’t very
lot of things one is wasn’t very satisfying experienced and I didn’t
satisfying experienced and I didn’t
satisfying experienced and I didn’t enjoy the work the second is I really
enjoy the work the second is I really
enjoy the work the second is I really had well I had strong emotional support
had well I had strong emotional support
had well I had strong emotional support for the entrepreneur and for the
for the entrepreneur and for the
for the entrepreneur and for the business that was being created it
business that was being created it
business that was being created it didn’t it naturally map to how I wanted
didn’t it naturally map to how I wanted
didn’t it naturally map to how I wanted to spend my time and the constraints of
to spend my time and the constraints of
to spend my time and the constraints of being on the board of a public company
being on the board of a public company
being on the board of a public company changed all of those dynamics so I think
changed all of those dynamics so I think
changed all of those dynamics so I think our view as an investor is we’re happy
our view as an investor is we’re happy
our view as an investor is we’re happy to support the company over with the
to support the company over with the
to support the company over with the idea of a very long-term build an
idea of a very long-term build an
idea of a very long-term build an example that I would give you that would
example that I would give you that would
example that I would give you that would be a coming like return path which we’ve
be a coming like return path which we’ve
be a coming like return path which we’ve been involved in for a dozen years you
been involved in for a dozen years you
been involved in for a dozen years you know we’re not you know we plenty of
know we’re not you know we plenty of
know we’re not you know we plenty of chances to sell the company but
chances to sell the company but
chances to sell the company but entrepreneur Matt Bloomberg who’s the
entrepreneur Matt Bloomberg who’s the
entrepreneur Matt Bloomberg who’s the CEO is awesome CEO is building a really
CEO is awesome CEO is building a really
CEO is awesome CEO is building a really significant company he wants to run that
significant company he wants to run that
significant company he wants to run that company for a long time that’s great he
company for a long time that’s great he
company for a long time that’s great he wants to take the company public and
wants to take the company public and
wants to take the company public and continue to run it that’s great it was
continue to run it that’s great it was
continue to run it that’s great it was not logical from my frame of reference
not logical from my frame of reference
not logical from my frame of reference in terms of our goal to carry on I would
in terms of our goal to carry on I would
in terms of our goal to carry on I would also add that I have absolutely no
also add that I have absolutely no
also add that I have absolutely no understanding of public market
understanding of public market
understanding of public market I have no desire to understand it it’s
I have no desire to understand it it’s
I have no desire to understand it it’s not something I do I don’t own any
not something I do I don’t own any
not something I do I don’t own any public company stocks other than the
public company stocks other than the
public company stocks other than the stocks that I own from companies that
stocks that I own from companies that
stocks that I own from companies that I’ve been involved in have gone public
I’ve been involved in have gone public
I’ve been involved in have gone public or companies that I have money with
or companies that I have money with
or companies that I have money with asset managers who have public company
asset managers who have public company
asset managers who have public company stock so you know what they are so my
stock so you know what they are so my
stock so you know what they are so my view is I don’t have any way to analyze
view is I don’t have any way to analyze
view is I don’t have any way to analyze the relative value in the public markets
the relative value in the public markets
the relative value in the public markets and you know my view is my view that the
and you know my view is my view that the
and you know my view is my view that the current values are right or wrong I
current values are right or wrong I
current values are right or wrong I don’t know what I do know about
don’t know what I do know about
don’t know what I do know about companies like like Zynga is I look at
companies like like Zynga is I look at
companies like like Zynga is I look at that company i remember it was 10 people
that company i remember it was 10 people
that company i remember it was 10 people only invested it’s 3,000 people today it
only invested it’s 3,000 people today it
only invested it’s 3,000 people today it was you know a hundred thousand dollars
was you know a hundred thousand dollars
was you know a hundred thousand dollars a month or even less when we invested
a month or even less when we invested
a month or even less when we invested and it’s you know a billion dollars plus
and it’s you know a billion dollars plus
and it’s you know a billion dollars plus a year today you know that’s a pretty
a year today you know that’s a pretty
a year today you know that’s a pretty extraordinary cycle and you know to
extraordinary cycle and you know to
extraordinary cycle and you know to understand what it’s going to look like
understand what it’s going to look like
understand what it’s going to look like in 20 years I don’t know and you know
in 20 years I don’t know and you know
in 20 years I don’t know and you know you can go back in time and calibrate
you can go back in time and calibrate
you can go back in time and calibrate based in time right there’s a moment in
based in time right there’s a moment in
based in time right there’s a moment in time where Amazon was worth almost
time where Amazon was worth almost
time where Amazon was worth almost nothing and everybody said amazon is
nothing and everybody said amazon is
nothing and everybody said amazon is going to go out of business there was a
going to go out of business there was a
going to go out of business there was a time people forget that Oracle was
time people forget that Oracle was
time people forget that Oracle was almost out of business and you know
almost out of business and you know
almost out of business and you know Oracle’s one of those valuable coming to
Oracle’s one of those valuable coming to
Oracle’s one of those valuable coming to what there was a time when Apple was
what there was a time when Apple was
what there was a time when Apple was worth yeah very little more than had
worth yeah very little more than had
worth yeah very little more than had cash and so the dynamics of what how the
cash and so the dynamics of what how the
cash and so the dynamics of what how the public market views things it’s just a
public market views things it’s just a
public market views things it’s just a relatively short cycle on a long-term
relatively short cycle on a long-term
relatively short cycle on a long-term arc okay good stuff we’re going to take
arc okay good stuff we’re going to take
arc okay good stuff we’re going to take a short break come back in the final
a short break come back in the final
a short break come back in the final segment we’re going to do lightning
segment we’re going to do lightning
segment we’re going to do lightning round we’ll be right back
”
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