February, 2011

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Why Entrepreneurs & VCs Should Focus on Basecamp, Not the Summit

Both Sides of the Table

This article originally appeared on Silicon Alley Insider. A few months ago I wrote a post called “ Invest in Lines, Not Dots.&# It was my investment philosophy that observing teams’ performance over time was far more insightful than reacting to how good of a product demo they do, how good they present Powerpoint slides or how great tech blogs say they are.

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Startup CTO Salary and Equity Data

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. He agreed to make this data public which is awesome. Todd is a go to resource for people looking for talent in startups. He was a great presenter to our group. I highly recommend getting to know him.

CTO Hire 301
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Jason Nazar On Startups, Execution, and Hiring

socalTECH

Jason Nazar is CEO of Santa Monica-based Docstoc (www.docstoc.com), the online document sharing site, and a fixture at Los Angeles technology events. Nazar--who moderated a panel on the venture capital industry in Los Angeles at Twiistup 8 yesterday, and who is considered by many to be one of the key "super connectors" in the LA technology community--took a few minutes with us to give his advice to startup entrepreneurs.

Twiistup 258
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Entrepreneuriship Is Best Learned Experientially

InfoChachkie

I recently replied to a Quora entry which asked, “What are the best business-related books?” I shared my humble opinion that entrepreneurs should spend less time reading and more time experiencing reality. I concluded by including a link to an entry I wrote entitled, The Author’s Dilemma – Why Business Books Suck. The person asking the question subsequently replied that I was “ignorant” and missing out on a great learning opportunity by not reading.

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Can You Ask for Office Rent Relief? How to Manage Your Lease During COVID-19

Office leases are one of companies’ largest expenses, and if your whole team is working from home with no clear end in sight, you may be wondering what to do about your lease.

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Cast your net where the big fish swim.

Berkonomics

This is one of those “My dad used to say” homilies. You’ve probably heard the accompanying “It takes just as much effort to sell a small deal as a big one” over the years. The truth of this is more nuanced. Some businesses will prosper in the shadow of larger competitors by specializing in those smaller accounts that are just not attractive to those with higher overheads and larger aspirations.

.Net 166
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TechBrew Mega Mixer

SoCal Tech Calendar

Friday, March 4, 2011 -- TechBrew Mega Mixer. The Premier Networking Event for High Technology Professionals, Cutting Edge Entrepreneurs and Innovators, Business and Community Leaders and related Non-Profits.

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CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on CTO Equity and Compensation at Venture Backed Companies for the LA CTO Forum and present last year. He agreed to make this data public which is awesome. Todd is a go to resource for people looking for talent in startups. He was a great presenter to our group. I highly recommend getting to know him.

CTO Hire 273
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THQ, Twentieth Century Fox Tie On RIO

socalTECH

Agoura Hills-based videogame maker THQ said today along with Twentieth Century Fox Consumer Products that they are releasing a new set of games based on the recent RIO movie. RIO is set to debut on April 15th. THQ said it will ship the RIO video game on the Xbox 360 video game, PlayStation 3, Wii, and Nintendo DS. Business details of the arrangement between THQ and Twentieth Century Fox were not announced.

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How To Maximize Your Value At A Startup: Your Greatest Ability Is Often Your Availability

InfoChachkie

On September 8, 1965, baseball player Dagoberto Campaneris Blanco became the first major leaguer to play all nine positions in a nine-inning game. Technically, he filled ten roles, as he pitched left handed when facing right-handed batters and right handed with lefties at the plate. Despite his status as an all-star shortstop, Bert proved himself to be a selfless utility player.

Startup 222
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Never run out of money.

Berkonomics

Money in the bank is like oil in the car. This is such an obvious observation that you should think that it does not rise to the level of an “insight”. Yet, there is sage advice behind this statement that I could not ignore placing it right in the middle of these insights. As an executive, you have many ways you are pulled every day, both tactical and strategic.

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Shark Tank II

SoCal Tech Calendar

Thursday, March 3, 2011 -- Shark Tank II. SDSIC Entrepreneur's Forum. Following on the popularity of last year's sold-out event, The Entrepreneur's Forum will be hosting the second annual Shark Tank event. You'll see four real companies pitch their firms to our esteemed panel of entrepreneurs and investors in a fast-paced, structured format. The format of the event is modeled after the television show "Shark Tank" but is not affiliated with the show.

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How Many Investors are Too Many?

Both Sides of the Table

This post originally ran on TechCrunch. Lately I have seen a number of deals announced on TechCrunch in which 5 or more different VCs were participating in the deal. This always makes me chuckle because in my first company we had 5 investors in our first round and we picked up 5 more before we finally sold the company. In my second company I had only 1 investor.

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. What are they really looking for?

Startup 198
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ReachLocal's Zorik Gordon On Daily Deals

socalTECH

Earlier this week, Woodland Hills-based ReachLocal (www.reachlocal.com), which helps small and medium sized businesses place online ads, announced a deal to buy daily deals site DealOn.com. The buy puts ReachLocal squarely into the fast growing area of daily deals, but also potentially into competition with such companies as Groupon and LivingSocial.

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Five Ways To Maximize The Value Of Your Startup Experiences

InfoChachkie

In Why Most Business Books (Still) Suck , I discuss why entrepreneurship is best learned experientially. If experiences are the best tools to foster entrepreneurial edification, a natural corollary question is, “How can you get the most out of your startup experiences?”. If you haven’t already subscribed yet, subscribe now for. free weekly Infochachkie articles!

Startup 206
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When cash is tight – slow its flight!

Berkonomics

We have discussed why never to run out of cash. This insight delves into how never to run out of cash. There are four basic ways to increase the cash position of a company: inject cash through borrowing or investment, decrease spending or payments on debt, increase efficiency of operations, and increase revenues or advance payments from customers.

Services 159
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S.O.A.R. like an Eagle

SoCal Tech Calendar

Monday, February 28, 2011 -- S.O.A.R. like an Eagle. TriTech SBDC. Success equals Opportunity, plus Attitude, plus Readiness. How can strategically planned and executed communications help you win business battles? Former Navy war hero and Battleship Commander, JK Sapp takes his successes at sea and shows business owners how to skillfully navigate organizational change from a position of power.

Help 124
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Can You Really Build a Great Tech Firm Outside Silicon Valley?

Both Sides of the Table

This article originally appeared on TechCrunch. Last year I was on Sand Hill Road in Silicon Valley meeting with one of the most prominent venture capital firms in the country. We were talking about a company, Factual (disclosure my firm is an investor), which was founded by one of LA’s most talented Internet entrepreneurs, Gil Elbaz , who as co-founder of Applied Semantics (purchased by pre-IPO Google for $102 million and now Google AdSense) is responsible for a large portion of the Inte

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Poor Software Developers - Pull the Plug Early

SoCal CTO

There's an old adage in software development that I refer to all the time: The first 90% of development takes 90% of the time. The remaining 10%, takes the other 90% of the time. I used this when I taught software engineering. And I use it all the time now when I get the kind of message that I received: I'm looking for a web developer to continue work on my website.

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Geni Hints At iPhone App

socalTECH

Los Angeles-based Geni.com , the online family tree site, hinted this morning that it is about to release an iPhone application for the service. In a post on its blog, Geni said it was working on the "Next Stage of Genealogy" and showed a brief YouTube video with what appeared to be a Geni application running on an iPhone. No details on the app or release have been otherwise announced by the company.

Geni 244
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Interview: Thorsten von Eicken of RightScale

InfoChachkie

Messenger : Thorsten von Eicken , RightScale’s Co-Founder and CTO, Chief Architect at Citrix Online (formerly Expertcity) and Professor of Computer Science at Cornell University and UC Santa Barbara. If you haven’t already subscribed yet, subscribe now for. free weekly Infochachkie articles! 10) Thorsten, why does the world need RightScale? .

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Demand pull – cost push.

Berkonomics

Place your cash bets behind proven demand. The term, “demand pull – cost push” was created by the great economist, John Maynard Keynes, to describe the two primary drivers of economic inflation. Demand pull: too much demand for a product or service and not enough supply cause a competition for the product that drives prices higher without increasing the intrinsic value of the product.

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Why I Invested in Gogii (textPlus) – My First Ever Later Stage Deal

Both Sides of the Table

This is a post I’ve been dying to write for 18 months. I invested in LA-based Gogii , one of the fastest growing, most exciting mobile social networking companies you’ve never heard of and maker of a product called textPlus. I know this because you’re not a young teenager. And if you are – what on earth are you reading such a boring blog as this?!?

Gogii 310
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Making the Internet Smarter at Helping Us

Both Sides of the Table

Recommendation Slicing. The Internet has a problem. It’s one you know well. The signal-to-noise ratio is getting out of hand. In non-geek speak this means that there is so much information out there now it’s hard to separate the good stuff from the rest. We all now visit UGC sites to learn about products & services before we use them.

Help 309
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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. When times are really good for fund raising many teams delay to maximize their valuation. Sometimes this pays off, other times it doesn’t. So how should you decide what to do? I thought I’d try to offer a framework for thinking about the topic.

Help 303
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Want to know why charging $12 / year converts higher than $9.99?

Both Sides of the Table

As many of you know I run a weekly webcast called This Week in VC that’s getting between 25-35,000 weekly views across ThisWeekIn.com, YouTube & mostly iTunes. Yesterday’s show floored me. I consider Gregg Spiridellis a good friend. We’ve hung out periodically over the past few years and I have enjoyed debating many startup topics.

Startup 303
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Seth Sternberg – Meebo

Both Sides of the Table

One of the great joys of doing the web series This Week in VC every week is that I get to spend time with great people debating the issues of our day including how our industry is evolving as well as insights into how companies got started, got their initial traction and dealt with adversities. “But Mark, isn’t it one big time suck?&#. Oh, yeah.

Startup 286
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Revolution co-founder talks Living Social, ZipCar, Steve Case & GroupOn Super Bowl Ads

Both Sides of the Table

The venture capital industry is so heavily skewed to Northern California, which the remains spilled over Boston, New York & Southern California. There are of course other outposts like Austin and Seattle. So it was wonderful to hear from a leading venture capital firm based in Washington DC. Revolution is a “stage agnostic&# fund (means they invest early or late) funded entirely by Steve Case , the founder of AOL and co-founded by two other individuals, Tige Savage (yes, pronounced lik

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What’s the Real Deal with AngelList?

Both Sides of the Table

In case you missed all the kerfuffle this weekend, I posted this blog post originally on TechCrunch. I attempted to do a fair balance job of an increasingly important service – AngelList – started by a friend of mine – Nivi with the feelings of a colleague who I respect – Bryce – who has opted out of the service. I hope I straddled people’s points of view well enough not to have offended anybody while adding a framework for how I think about the service.

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Interview with Hamilton Chan, PaperLinks

socalTECH

Hamilton Chan is founder of Los Angeles-based PaperLinks (www.paperlinks.com), a new startup which is developing mobile applications which take advantage of QR codes--the 3D barcodes which are cropping up everywhere--to help users marketers go beyond just linking those codes to web pages, but also to power social applications. The firm has a native, iPhone application which uses QR codes to drive user friendly, social modules for events, pulling up information, and much more natively in iOS.

Startup 233
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Interview with Mike Napoli, Tech Coast Angels

socalTECH

Since the Tech Coast Angels (www.techcoastangels.com), the largest angel investment group in Southern California, is holding one of its several Fast Pitch competitions next week in Los Angeles (www.pitchtheangels.com), we thought it might be a good time to catch up with Mike Napoli , incoming President of the Tech Coast Angels, to hear the his thoughts on the angel investing environment in Southern California from the angels' perspective.

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FTD Groupon Deal Goes South

socalTECH

A nationwide offer from FTD , the flower delivery service owned by Woodland Hills-based United online , with daily deals phenomenon Groupon has gone south, after consumers complained that the price presented to Groupon users was more than the price a user would get by going directly to FTD's web site. Group had offered up $10 for $20 worth of flowers at FTD Thursday in one of their national, daily promotions.

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MyShape Runs Out Of Cash, Shuts Down

socalTECH

Los Angeles-based MyShape , the online personalized fashion and women's clothing firm, has shut down. According to a message on the firm's site, it is "temporarily suspending its retail operations" and is no longer offering products. According to sources near the firm, the firm has sold off its inventory and is now hoping to find a buyer for the company via an assignment for the benefit of creditors.

MyShape 217
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Interview with John Delacruz, Foodme

socalTECH

Pasadena-based Foodme (www.foodme.com) is one of the first, external startups funded out of Idealab's New Venture Group, and is looking to help connect restaurants with customers using a CPA model. The firm so far has signed up a number of restaurants in the Pasadena area. We caught up with founder John Delacruz to hear more about what the company hopes to do as it expands beyond Pasadena.

Idealab 217
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OpenX Launches New Ad Platform, Powers Groupon

socalTECH

Pasadena-based OpenX , the Internet ad server developer, said today that it has launched a new version of its OpenX Enterprise software. The firm said that the new platform is being used by customers such as Groupon, Orange-France Telecom Group, and Excite Japan. OpenX said the updated software includes such features as real-time ad bidding, more control by publishers over ad quality and pricing, new APIs, and other features.

OpenX 215
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Interview with Bill Kelley, AutoStream

socalTECH

In the world of online conversations, one of the oldest is that of community forums. As part of those forums, users are now regularly posting links, videos, and other information to others. To try to take advantage of those links, Los Angeles-based AutoStream (www.autostream.com) has developed software which makes those links to videos interactive, embedding an inline video player to keep users engaged on those forums.

Content 214