How to Divide Founder Equity: 4 Criteria to Discuss

Reading Time: 4 minutes

It’s extremely rare that a startup begins with just one person.  Less than 5% of all NextView portfolio companies began with a sole co-founder, as opposed to a founding team.  And while there is something special about the initial group that comes together to form a company, frequently not all co-founders are equal in terms of title, ownership, responsibilities, and other dimensions.  Consequently, one of the most challenging items that co-founders tackle together as a team is determining the equity split amongst the founding group of individuals.

How do you divide founder equity?  And do it fairly?  Here’s where the challenge comes in.  There isn’t a magical formula.  There isn’t a hard & fast rule of thumb.  For that very reason, and because every single situation is unique, there are so many different resulting methods and outcomes of Continue reading “How to Divide Founder Equity: 4 Criteria to Discuss”

The VC Meeting Map: What to Expect After a Successful First Pitch

Reading Time: 5 minutes

The bulk of written guidance for VC fundraising meetings is centered on the very first meeting: how to get ithow to prepare a pitch deckhow to run the meeting, etc. But then the tactical advice stops.  What about the rest of the VC fundraising process?  How should an entrepreneur approach the full set of meetings during a fundraise?

The first rule of venture fundraising is: the purpose of all VC meetings is to get another meeting. It’s not to push a decision immediately.

VCs don’t like wasting their or their partners’ time.  So they’re not going to be conducting multiple meetings if there isn’t a serious prospect of a startup becoming an investment.  Unlike “traditional sales” where there’s an eye towards closing sooner rather than later because a large part of the process is convincing the other party

Continue reading “The VC Meeting Map: What to Expect After a Successful First Pitch”

Back to The Future: Power of SMS-Native

Reading Time: 3 minutes

It is the one message-space on your phone that you always pay attention to: SMS text messages.

Not just “messaging” broadly, as there are numerous apps where people send and receive communications & messages.  Couple that noise with the flurry of AI/messaging startups from a few years back (set off by Facebook’s WhatsApp acquisition), in conjunction with app developers’ notification euphoria… all of which have resulted in a state on our mobile phones where “our brains being overloaded with push notifications about nothing.”

How do consumers cut through all of it?  They don’t.  Instead they limit what channels they actually pay attention to.  And SMS text messages are at the top.  Call it the ultimate priority inbox.

Yes, there is something truly special about SMS… it’s:

  1. Universal.  Every U.S. phone user has it.
  2. Prioritized.  The SMS Continue reading “Back to The Future: Power of SMS-Native”

Going Big with a Consumer Voice Skill Startup?

In the past few weeks there have been numerous product announcements in the voice computing space from big players like Amazon and Google.  It appears as though a key part of the strategy for these platform companies is to foster a rich third-party developer ecosystem developing consumer voice Skill “applications,” with an eye towards making the end-user experience increasingly vibrant.  But can you actually successfully build a consumer-facing voice Skills based business?  Not a hobby, or a side-project.  A consumer startup on a #VoiceFirst platform with venture-scale potential.  Today?

This new computing paradigm with third-party developers situation has created a logical analogy which many have said “maps pretty neatly” between the Amazon Skill “Store” and the Apple App & Google Play Stores.  So are Skill Stores the App Stores of the Voice Computing era?   The latter managed marketplaces have provided a Continue reading “Going Big with a Consumer Voice Skill Startup?”

Going Big with a Consumer Voice Skill Startup?

In the past few weeks there have been numerous product announcements in the voice computing space from big players like Amazon and Google.  It appears as though a key part of the strategy for these platform companies is to foster a rich third-party developer ecosystem developing consumer voice Skill “applications,” with an eye towards making the end-user experience increasingly vibrant.  But can you actually successfully build a consumer-facing voice Skills based business?  Not a hobby, or a side-project.  A consumer startup on a #VoiceFirst platform with venture-scale potential.  Today?

This new computing paradigm with third-party developers situation has created a logical analogy which many have said “maps pretty neatly” between the Amazon Skill “Store” and the Apple App & Google Play Stores.  So are Skill Stores the App Stores of the Voice Computing era?   The latter managed marketplaces have provided a Continue reading “Going Big with a Consumer Voice Skill Startup?”

Timber! Out of the Woods: Why We Invested in a Startup With a New Approach to Logging

For me, the most exciting time to become involved in a startup is the very earliest of stages, when there is a vision and promise of what could be. Pre-product-market fit. Pre-product, even. That’s exactly when I met Zach Sherman and Ben Johnson of what would become Timber.

When we first talked, they didn’t have a prototype developed yet. They didn’t have an official name. They hadn’t even incorporated the company. In fact, they hadn’t even quit their previous jobs.

However, the two of them shared a vision of a cloud-based logging platform designed to help software developers get more done. One that offered developers context to their logs, centralizing and intelligently parsing to offer them the ability to click, filter, and search in real time. This system, enabled by the new capabilities of tools like Amazon Kinesis and Athena, would empower developers to quickly find whatever they needed, address Continue reading “Timber! Out of the Woods: Why We Invested in a Startup With a New Approach to Logging”

Timber! Out of the Woods: Why We Invested in a Startup With a New Approach to Logging

For me, the most exciting time to become involved in a startup is the very earliest of stages, when there is a vision and promise of what could be. Pre-product-market fit. Pre-product, even. That’s exactly when I met Zach Sherman and Ben Johnson of what would become Timber.

When we first talked, they didn’t have a prototype developed yet. They didn’t have an official name. They hadn’t even incorporated the company. In fact, they hadn’t even quit their previous jobs.

However, the two of them shared a vision of a cloud-based logging platform designed to help software developers get more done. One that offered developers context to their logs, centralizing and intelligently parsing to offer them the ability to click, filter, and search in real time. This system, enabled by the new capabilities of tools like Amazon Kinesis and Athena, would empower developers to quickly find whatever they needed, address Continue reading “Timber! Out of the Woods: Why We Invested in a Startup With a New Approach to Logging”

Goodbye to the Old Boston Innovators Group, Hello to Something BIG and Different

TL;DR: After a dozen years, Boston Innovators Group as we know it is sunsetting, but I will be regularly creating new, focused events to contribute to the ecosystem. The first event focused on voice computing will be held on June 27th. You can learn more and register here.

When I moved back to Boston back in 2004, the area was a pretty lonely place for internet entrepreneurs like myself. Still recovering from the dot-com startup crash, the local ecosystem wasn’t conducive to getting together informally and fostering collaboration. Most of the local events were exclusive and expensive to attend, making it hard to meet new people in the community.

So, my natural inclination was to do something about it.

BIG’s Beginnings

The first event was small — just a dozen people interested in the future of the internet. We squeezed into the back room at Tavern in the Square Continue reading “Goodbye to the Old Boston Innovators Group, Hello to Something BIG and Different”

User Acquisition for Alexa Skills

Last week, I gave a talk at Voicecamp, a program produced by our friends at Betaworks for early-stage companies building voice-based products. Fahim Abouelfadl and Matt Hartman, who are producing the accelerator and are deep in the voice computing space, asked me to lead a session during the early weeks of the camp.

Given how challenging monetization and distribution is in voice computing and my background in marketing, I decided to put together a presentation for the accelerator focused on identifying the current best practices for marketing Alexa Skills. My conclusion is that marketing Skills is not radically different than approaches for other digital products, but you need to apply a voice-first lens.

Instead of just keeping the audience limited to the handful of interesting companies in the accelerator, I thought that it would be productive to post them here, too:

The post Continue reading “User Acquisition for Alexa Skills”

User Acquisition for Alexa Skills

Last week, I gave a talk at Voicecamp, a program produced by our friends at Betaworks for early-stage companies building voice-based products. Fahim Abouelfadl and Matt Hartman, who are producing the accelerator and are deep in the voice computing space, asked me to lead a session during the early weeks of the camp.

Given how challenging monetization and distribution is in voice computing and my background in marketing, I decided to put together a presentation for the accelerator focused on identifying the current best practices for marketing Alexa Skills. My conclusion is that marketing Skills is not radically different than approaches for other digital products, but you need to apply a voice-first lens.

Instead of just keeping the audience limited to the handful of interesting companies in the accelerator, I thought that it would be productive to post them here, too:

The post Continue reading “User Acquisition for Alexa Skills”

User Acquisition for Alexa Skills

Last week, I gave a talk at Voicecamp, a program produced by our friends at Betaworks for early-stage companies building voice-based products. Fahim Abouelfadl and Matt Hartman, who are producing the accelerator and are deep in the voice computing space, asked me to lead a session during the early weeks of the camp.

Given how challenging monetization and distribution is in voice computing and my background in marketing, I decided to put together a presentation for the accelerator focused on identifying the current best practices for marketing Alexa Skills. My conclusion is that marketing Skills is not radically different than approaches for other digital products, but you need to apply a voice-first lens.

Instead of just keeping the audience limited to the handful of interesting companies in the accelerator, I thought that it would be productive to post them here, too:

The post Continue reading “User Acquisition for Alexa Skills”

Why NextView Ventures Invested in MealPal

The entire NextView team are personally subscribers to MealPal.  Why?  Because the consumer value-proposition for urban professionals in cities like Boston and New York is so strong.  A subscription plan, the weekday meal service MealPal offers both the convenience of skipping the line to pick up a pre-paid lunch at hundreds of local restaurants AND the consistently much cheaper price for all of those great meals.  Plus, the MealPal mobile app & online service acts as a “pal” concierge aiding discovery of new tasty local takeout lunch dishes depending on what ingredients & types of food users like & dislike.

But a great consumer proposition is only one component of a successful startup.  On the other side of the equation, the participating restaurants absolutely love MealPal, too, as it sends them net new sustainably profitable customers – unlike the churn & burn group-style discounting schemed Continue reading “Why NextView Ventures Invested in MealPal”

Why NextView Ventures Invested in MealPal

The entire NextView team are personally subscribers to MealPal.  Why?  Because the consumer value-proposition for urban professionals in cities like Boston and New York is so strong.  A subscription plan, the weekday meal service MealPal offers both the convenience of skipping the line to pick up a pre-paid lunch at hundreds of local restaurants AND the consistently much cheaper price for all of those great meals.  Plus, the MealPal mobile app & online service acts as a “pal” concierge aiding discovery of new tasty local takeout lunch dishes depending on what ingredients & types of food users like & dislike.

But a great consumer proposition is only one component of a successful startup.  On the other side of the equation, the participating restaurants absolutely love MealPal, too, as it sends them net new sustainably profitable customers – unlike the churn & burn group-style discounting schemed Continue reading “Why NextView Ventures Invested in MealPal”

Why NextView Ventures Invested in MealPal

The entire NextView team are personally subscribers to MealPal.  Why?  Because the consumer value-proposition for urban professionals in cities like Boston and New York is so strong.  A subscription plan, the weekday meal service MealPal offers both the convenience of skipping the line to pick up a pre-paid lunch at hundreds of local restaurants AND the consistently much cheaper price for all of those great meals.  Plus, the MealPal mobile app & online service acts as a “pal” concierge aiding discovery of new tasty local takeout lunch dishes depending on what ingredients & types of food users like & dislike.

But a great consumer proposition is only one component of a successful startup.  On the other side of the equation, the participating restaurants absolutely love MealPal, too, as it sends them net new sustainably profitable customers – unlike the churn & burn group-style discounting schemed Continue reading “Why NextView Ventures Invested in MealPal”

Voice Computing in Enterprise: Inside & Out

We have an Amazon Echo in the NextView Ventures office.  Every day I say “good morning” and “good night” to it, and I ask Alexa for my flash news briefing when I walk in the door if I missed it earlier at home.  It answers the regular fact-check from team members and guests alike, as well as acts as an easy timer for quick stand-up meetings.  As the Alexa platform becomes smarter with more skills, we’ll use it more often in this office setting.  While venture capitalists’ offices aren’t your typical corporate environment, just having one around has helped open my own eyes to the potential for voice interfaces in the enterprise.

Most of my blog posts to date on personal voice computing have emphasized the personal aspect – what are the services and supporting layers for the consumer?  But shortly after one of those Continue reading “Voice Computing in Enterprise: Inside & Out”

Current Challenges in Voice Computing: Distribution and Monetization, Not Necessarily Retention

Last week Voice Labs released a Voice Report on the current state of the voice computing industry.  The main theme of the document is the tremendous growth in the proliferation of voice computing devices (mostly Amazon Echos) over the past year or so and the sheer number of skills created to date.  However, the media narrative that was picked up wasn’t at as positive.  Instead, both ReCode and Techcrunch spotlighted a glaring issue: people aren’t sticking with voice apps they try.  With all of the 9000+ skills which are available to consumers today, are there any that are really worth using?  Or all they just silly disposable toys?

A voice computing proponent’s retort to that critique might resemble Ed Sim’s insightful tweet reply: that “retention on voice apps, sounds like mobile world.”  Getting consumers to frequently & consistently integrate any application Continue reading “Current Challenges in Voice Computing: Distribution and Monetization, Not Necessarily Retention”

Making Sense of Startups’ Q4 Results

It’s currently that time of year when startups are holding board meetings to go over their Q4 results and look ahead to the next twelve months of the new year.  The tricky thing is that for a lot of startups, Q4 numbers are an anomaly.

Seasonality isn’t just determined by the weather.  It’s derived from the natural flow of the business.  Sometimes the fourth quarter performance figures are inordinately great.  Media-related companies sometimes have up to half their entire year’s revenue generated in the last three months of the year.  Similarly, e-commerce companies can trend towards the same situation depending on how applicable their product is to gifting.  On the other hand, many businesses struggle towards the end of the year because buyers (businesses or consumers) are distracted, corporate budgets are depleted until the following year, or yes, just plain seasonality.  And it’s Continue reading “Making Sense of Startups’ Q4 Results”

A Personal Voice Computing Map

As we enter 2017 and millions of people received Google Homes and Amazon Dots+Echos as gifts over the holidays, an increasing amount of attention will be placed on Personal Voice Computing.  I’ve recently been on a thematic pursuit exploring this space, and so I recently went looking for a market map to help orient me to the relevant categories and players.  However, because I couldn’t find one, I decided with significant consultation help from others to create one.  What follows is my first iteration of the voicescape, a map of the players in the Personal Voice Computing landscape:

A couple of caveats, thoughts, and insights on the above:

  • While my aspiration is for this map to be both crisp and exhaustive, it’s in reality a work in progress reflecting a dynamic ecosystem. Some of the logos are products, some are companies, and some are acquired Continue reading “A Personal Voice Computing Map”

Charting the Personal Voice Computing Startup Roadmap

In the three months since I penned my initial blog post on “Ubiquity of Voice and the Venture Opportunity,” I’ve been on a deep dive talking with a wide range of people exploring the “Personal Voice Computing” theme, all the way from entrepreneurs building unique applications for consumers to execs at the large platform companies like Amazon.  In that short amount of time the market has developed further (see release of Google Home – we now have both that device and an Echo in the NextView Ventures’ offices) and I’ve become more convinced about the coming wave of awesome Voice UI-enabled applications and supporting technologies.

A connected microphone in every room in your house or one perpetually worn in your ear creates always-present voice-directed ubiquitous computing layerVoice-directed interactions pairs persistent computing access with humanity’s most natural user interfaceThe result is a new Continue reading “Charting the Personal Voice Computing Startup Roadmap”

Founder-Go-To-Market Fit

The concept of Product-Market Fit, and the process by which startups find it, has been discussed so extensively within the startup ecosystem that it has its own acronym, PMF.

Derived from it has been the similar concept of Founder-Market fit – is there a “match between the founder and the problem they are going after”?  My partner Rob has blogged about how we think about founder-market fit at NextView addressing “how authentic is this idea to the founder’s experience” and if the founder “exhibits specific superpowers that are uniquely well suited to the biggest immediate challenges of the business.”  The notion of founder-market fit has become so embedded into our investment decision-making process that we baked into the NextView investment decision tree flowchart.

But a third related concept has emerged in our firm’s internal dialog over the past year: Founder-Go-To-Market Fit.  How much is there Continue reading “Founder-Go-To-Market Fit”