About Proprietary Networks

They are the among the only lasting advantages in business – particularly in the fast-moving technology environment. And the question about how to grow one is one of the most common pain points for someone early in their career, particularly if they did not get lucky and choose the right company to work for, where the network was built-in for them. So here’s a word: most people wrongly focus on the “network” side of the equation before the “proprietary” side. It’s relatively easy to guess somebody’s email address. And it’s a toss up who will respond to a cold email. It’s relatively easy to meet a luminary – attend the right conference, hang around after she speaks, you may get 5 minutes. But if you do this before the “proprietary” part, you’re getting it backwards. Proprietary, in this context, means you are known for something. You are useful, have an expertise, or even Continue reading "About Proprietary Networks"

About Proprietary Networks

They are the among the only lasting advantages in business – particularly in the fast-moving technology environment. And the question about how to grow one is one of the most common pain points for someone early in their career, particularly if they did not get lucky and choose the right company to work for, where the network was built-in for them. So here’s a word: most people wrongly focus on the “network” side of the equation before the “proprietary” side. It’s relatively easy to guess somebody’s email address. And it’s a toss up who will respond to a cold email. It’s relatively easy to meet a luminary – attend the right conference, hang around after she speaks, you may get 5 minutes. But if you do this before the “proprietary” part, you’re getting it backwards. Proprietary, in this context, means you are known for something. You are useful, have an expertise, or even Continue reading "About Proprietary Networks"

“Insurance Is Sold, Not Bought.”

In an influential 1979 behavioral economics paper, Daniel Kahneman and his colleague Amos Tversky developed “Prospect Theory” as a way to make sense of decision-making. The summary of the paper was, if I may, that humans do not make optimal decisions, which normative (”should”) frameworks suggest, but instead have irrational aversion to certain losses, and minimize the probability of other losses. Here’s an example: 
image
Here, Kahneman (via Thinking, Fast and Slow) outlines the cases where a decision-maker irrationally minimizes potential losses versus maximizing potential gains. As the theory goes, humans sometimes choose to be risk-averse, even it results in an unfavorable outcome. The opposite also applies: we sometimes are risk-seeking even if it results in an unfavorable outcome. The intersection of actuarial science and behavioral economics purports to find itself in the bottom right box. You choose to buy insurance, which is $1 more than the statistically-adjusted cost Continue reading "“Insurance Is Sold, Not Bought.”"

“Insurance Is Sold, Not Bought.”

In an influential 1979 behavioral economics paper, Daniel Kahneman and his colleague Amos Tversky developed “Prospect Theory” as a way to make sense of decision-making. The summary of the paper was, if I may, that humans do not make optimal decisions, which normative (”should”) frameworks suggest, but instead have irrational aversion to certain losses, and minimize the probability of other losses. Here’s an example: 
image
Here, Kahneman (via Thinking, Fast and Slow) outlines the cases where a decision-maker irrationally minimizes potential losses versus minimizing potential gains. As the theory goes, humans sometimes choose to be risk-averse, even it results in an unfavorable outcome. The opposite also applies: we sometimes are risk-seeking even if it results in an unfavorable outcome. The intersection of actuarial science and behavioral economics purports to find itself in the bottom right box. You choose to buy insurance, which is $1 more than the statistically-adjusted cost Continue reading "“Insurance Is Sold, Not Bought.”"

MAYA: Most Advanced Yet Acceptable

Two anecdotes stuck out to me in Derek Thompson’s Atlantic post about “The Four-Letter Code to Selling Just About Anything.” First, the concept that people prefer the image of themselves in the mirror to that in photos. I certainly do, and often feel like I look lopsided in photos. But that makes sense, since I’m seeing the mirror image of what I’m used to seeing. I imagine the same applies to the phenomenon of hearing one’s voice (which happens far less often). If you are used to hearing it come from your own mouth, with the baritone coming from your lungs, the nasally effect manifesting in your own nose, et cetera, that is be the familiar sound and so something close, but not quite there, is jarring. Second, the clustering of popular names: Derek describes research done by Stanley Lieberson which concludes that “Most parents prefer first names for Continue reading "MAYA: Most Advanced Yet Acceptable"

MAYA: Most Advanced Yet Acceptable

Two anecdotes stuck out to me in Derek Thompson’s Atlantic post about “The Four-Letter Code to Selling Just About Anything.” First, the concept that people prefer the image of themselves in the mirror to that in photos. I certainly do, and often feel like I look lopsided in photos. But that makes sense, since I’m seeing the mirror image of what I’m used to seeing. I imagine the same applies to the phenomenon of hearing one’s voice (which happens far less often). If you are used to hearing it come from your own mouth, with the baritone coming from your lungs, the nasally effect manifesting in your own nose, et cetera, that is be the familiar sound and so something close, but not quite there, is jarring. Second, the clustering of popular names: Derek describes research done by Stanley Lieberson which concludes that “Most parents prefer first names for Continue reading "MAYA: Most Advanced Yet Acceptable"

Timing and Infrastructure

Over the holiday I was catching up on the unread articles in my browser (time to switch to Pocket/Instapaper… there were almost 100) and I bumped into this one by Bloomberg collecting venture predictions for the most important trend of 2016. I really liked Rebecca’s comment: “2016 was the year the internet quietly sped up″ and haven’t been able to get it out of my head. In the venture community, we often credit Amazon Web Services – and the rise of cloud computing more generally – as an inflection point in the startup industry, as a founder could build a technology company for the cost of a subscription to EC2, instead of having to buy and maintain their own servers and manually include CPU, memory, PCI components, et cetera. This is the difference between $10,000+ for your own hardware and $100+ for access to a subscription. The floodgates burst open with Continue reading "Timing and Infrastructure"