Why You Shouldn’t Put VCs on a Pedestal

Influencers.  Kingmakers.  Sharks.  Power brokers.  Visionaries.

There are a lot of ways the startup world describes venture capitalists that portrays a certain power dynamic, real or perceived, that I believe is at the heart of so many of the industry's problems.  The industry treats VCs as if they hold all the cards, and the worst behaviors of investors reflect that.

Frankly, it makes me uncomfortable, because it's undeserved.

Here's why...

Who's really chasing who?

Do you think there is more money out there looking for good opportunities, or more fantastic opportunities?

Right.  Clearly, truly great ideas and great teams are at a premium--and there's a ton of money in the world.  It's rare that you really only have one option as a seed investor (follow on rounds are different, because it is expected that insiders are your first option, and their actions can influence others).  The idea that there's only one Continue reading "Why You Shouldn’t Put VCs on a Pedestal"

I Can Be Difficult

Last week, I heard the word "difficult" describing investors twice.  Once was about me and once wasn't.  

The founder and investor relationship is, in fact, a difficult one to get right.  Both sides walk in with a lot of cognitive biases and style differences unique to every pair.  Meanwhile, the work of trust building is hard and takes a long time.

In one instance, there was an investor holding up a round after agreeing to sign off on something verbally.  They weren't wrong about the term in question, but the dollar impact to their investment was so small that it wasn't meaningful to a fund of their size.  That's the kind of thing where you have to choose between being right and seeing the bigger picture in order to facilitate a transaction that was good for the company. 

No one wants that kind Continue reading "I Can Be Difficult"

The Cold E-mail and the Crazy Big Idea: Industrial Organic Announces Seed Round

"Hi Charlie,

I've requested a meeting with you during the first week of March. Here are ten reasons why you should take the meeting..."

This is an e-mail I got from Amanda Weeks in February 2014, and the beginning of a two and a half year journey that culminated with Brooklyn Bridge Ventures leading a pre-seed round for Industrial Organic that kicked off about a year ago.  The round, which was raised in two tranches, was recently announced by Inc Magazine.

Amanda and her co-founder Brett Van Aalsburg researched for two years and developed an anaerobic fermentatio process that quickly breaks down food waste in a matter of days.  Byproducts of the process can be turned into other goods like organic fertilizer and natural surface cleaners.  When I funded the company, it was little more than a science project in a garage in Brooklyn and soon, Continue reading "The Cold E-mail and the Crazy Big Idea: Industrial Organic Announces Seed Round"

My Least Favorite Part of Venture Capital

I'm a lead investor.

That means I'm usually the first person to put down a price on what your company is worth--a dollar value on months, if not years, worth of your work, blood, sweat, tears, stress, etc.  

"Here's a piece of paper that says how much I think your dreams are worth."

The reality is, any price that I put down at the stage that I invest isn't going to feel like enough--and if it doesn't feel like enough, I'm probably grossly overpaying.  But, you don't feel like that as the founder.  

Your company is special, which, I 100% agree with.

That's why, out of the 2,000 opportunities I saw this year, you and your company are one of the 8-10 I gave a term sheet to.  So, congrats!  All the reasons why you think you should get a much higher price for Continue reading "My Least Favorite Part of Venture Capital"

Not Just Any Given Sunday #takeaknee

Posted this in what used to be my tech newsletter, and what has lately been about more...

Yesterday wasn't just any given Sunday, was it?

I would imagine most of the NYC-based readers of this newsletter don't take the position that "these athletes should just stick to sports" nor do they feel that way about Jimmy Kimmel and his recent conversations around healthcare.  So, telling you that I support their willingness to share their views and why seems a bit like preaching to the choir.

What I will say is that there's no way either side of this conversation is going to "win" unless both sides start asking each other why they feel that way, and actually listening.  No, I don't mean listening to Trump and asking him why he feels the need to call private citizens SOBs.  Honestly, he's got the least important opinion in this whole equation--it's just Continue reading "Not Just Any Given Sunday #takeaknee"

Work Like You Mean It: Why I backed Wethos to change the future of work.

If economists tried to measure the cost of the malaise that the election of 2016 left, we'd undoubtedly see billions, if not more, lost in worker productivity. 

At the same time, I don't think I've ever seen more political engagement in my lifetime--and not just political engagement, but all sorts of action around causes they care about.

These two realities are linked.  If you're not doing something to positively affect the world around you, you've likely been overcome by a lack of motivation.  You're realizing that passing your work hours for pay alone, without meaning and impact, just isn't cutting it anymore.  

We've seen the move towards more flexible work, but I think it will pale in comparison to the shift towards meaningful work.  The best and brightest are going to need a much better reason to work for your company than the perks and Continue reading "Work Like You Mean It: Why I backed Wethos to change the future of work."

Introducing Petal, Providing Access to Credit to Thin File Consumers

One of the biggest fears about the future of data is that everyone will turn into a number--that algorithms will turn everyone's personal experience into a single score that will decide whether or not you get what you want, a job, a house, a car, financing for a new business etc. or whether you get shut out.

Actually, you don't have to wait for that to happen.  Consumers have been living this reality since 1956.  That's when a company called Fair Issac, or what we now today as FICO, started selling consumer credit data to lenders.  A four billion dollar publicly traded company basically decides who gets credit and who doesn't--and if you don't already have credit and you're invisible to FICO, you're going to get financially left behind.  As they say, it costs money to make money, and without access to credit at key moments in

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Continue reading "Introducing Petal, Providing Access to Credit to Thin File Consumers"