The weekend before the last, my friend “Jamie” reached out to me on Facebook and said:
“David, I know you’re going through a tough time. You may not recognize it yourself, or maybe you think other’s aren’t, but I do. Amazing job! Keep up the good work!”
While even alone, I was and am extremely grateful, it was his next line that made me the most content:
“Don’t worry about responding. I just want you to know you have complete support.”
You see, I never told “Jamie” what I was going through. I can only assume it came to his attention via my previous blog post or by way of a mutual friend or another reader. Regardless, what he said could not have come at a better time. So, I couldn’t help but thank him. I told him he had no idea how much it meant to me. Last weekend, I reached back out to him and asked how could I thank him and if there’s anything I could help him with. He said:
“Don’t worry about me. If you’re really thankful, pay it forward. Pay it forward to your friends whom you think need it the most.”
I did. And my friends reacted similarly.
While the goal isn’t to get any responses, reach out to some of the people in your life that may be going through some tough times. Let them know you’re there for them. Let them know that you appreciate them. And let them know what they’re doing means something.
#unfiltered is a series where I share my raw thoughts and unfiltered commentary about anything and everything. It’s not designed to go down smoothly like the best cup of cappuccino you’ve ever had (although here‘s where I found mine), more like the lonely coffee bean still struggling to find its identity (which also may one day find its way into a more thesis-driven blogpost). Who knows? The possibilities are endless.
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
“Hey, y’all wanna hear a joke?” one of my teammates in my lane asks during warm-up. If there was the equivalent of a class clown in the pool, that’d be him.
“Why not?” the rest of us answer, hoping to spice up the impending 2-hour practice.
“So, there’s this guy who’s about to ask this girl out to the school dance. But to do so, he’s gotta ask her out on Valentine’s Day. So the day before, he goes to buy a Valentine’s gram during lunch. Turns out – there’s a long, long line.”
Our coach blows the whistle, and we sprint off. When we touch again, he goes on, “And there’s a separate line to buy the roses. So, he heads over, and turns out – there’s a long, long line.”
Again, the whistle goes off, and upon return, “So, he finishes buying his gram and roses. On the fateful day, she gets it all and says yes. Super excited, the guy prepares for the school dance. First he goes to buy his tux. When he arrives at the tailor-“. He pauses, beckoning us to finish his sentence.
“There’s a long, long line,” we chime in. In the distance we hear, “Lane 1. Stop talking!” Whistle blows, and we go…
And return. “He gets his suit tailored. Now he goes to Office Depot to buy his cue cards and markers to ask her out. But when he gets to the cash register…”
“There’s a long, long line.” And a kickboard comes flying in and smacks two of us in the face. “Quiet!” a distant shout.
“Day of the ask, he assembles all his friends, lines them up for a dramatic prom ask. And what do you know?”
“There’s a long, long line.” Another one of us feels the sting of hard foam across our face.
“The girl says yes. And now, finally the day of the prom arrives, and he picks her up. Together, they take pictures with everyone else, in a-“
“Long, long line.”
“Then they all drive to the destination of prom. But turns out they’re not the first ones there. Ahead-“
“There’s a long, long line.” At this point we were too vested in the joke. Each of us with bruises across our face – just short of our coach dragging us out of the water to discipline us.
“So the boy and girl finally make it into the dance hall, and while they’re waiting for the dance floor to open up, the boy asks us the girl, ‘Can I get you something to drink?’ And she says, ‘Sure.’ So, he goes over to where the fruit punch is. And, turns out…”
“There’s a long, long-“
“Nope, there’s no punch line.”
The bigger picture
I hear so many founders tell me they’re pursuing this billion dollar market. Or even a trillion dollar one with a capital T. And how they plan to capture 10% of this huge market in 5 years. I mean, c’mon, how awesome would 10% of this billion dollar market sound for our returns?
For an investment of anywhere between $1 and $10 million, let’s say $1 million (’cause this is usually something people raising a pre-seed/seed say), 10% of $100B market is $10B. And for the ease of calculation, let’s say by the time the founders exit, we still have 10%, 10% of $10B is $1B. For only $1M invested, $1B is a 1000x return. Wowza!
The true let-down happens when they finally share what their solution is. And it turns out to only address a small fraction of their total addressable market (TAM). Here’s a hypothetical example. A team is tackling a TAM for events of $1.1 trillion (2018 number). They talk about how awesome a CAGR of over 10% is. And how virtual events are the new trend and might accelerate that number even more. I’m thinking, “Hell ya, this’ll be epic.”
Then their product – the punchline… an app that streamlines coffee service at events in 2020. While this may or may not be an exaggeration, many startups find their pitches in a similar format. On one end, as a founder, you want to tackle the biggest market you can – to attract investors hoping to make large returns. On the other end, you want to be realistic with your expectations, as well as your investors’. Often times, it’s a fine line. I get it, which is why I suggest approaching market-sizing from the angle of pragmatic optimism.
The GTM strategy
After you share such a lofty goal, the inevitable question comes along: “What is your go-to-market (GTM) strategy?” The usual answer is some permutation of the below:
Google/Facebook/other ads,
Get it on the App Store (and/or Play Store),
(Pay for) SEO,
Hire a C_O (fill in the blank)
Hire a growth hacker,
Or more engineers, or for that matter, anyone,
We were hoping you (the investor) could help us with that, once you fund us. 🙁
But who are we kidding? No one. While none of the above answers are unilaterally incorrect, all the above show characteristics of someone who isn’t a hustler, who isn’t scrappy, and who probably isn’t one to scale a business. A pitch deck is designed to be short. I get it. There’s a lot you can’t fit on to it. But I’m not alone when I say this, we want to see the why and the how behind the what. A bit of Simon Sinek‘s two cents – start with why.
Why are you hiring more people? To do what?
Why did you choose Google over Facebook ads? Over Reddit, Instagram, Tiktok, you-name-it ads? Over traditional billboards?
What is the end goal?
What is the core metric you’re optimizing for? In the near term? In the long term? Before your next fundraise?
Just to be clear, just because a founder approaches market analysis from a top-down approach doesn’t instantly disqualify him/her. But it is a red flag. That’s why I’m a huge proponent of bottoms-up market-sizing.
Bottoms-up… and Cheers!
How many customers do you plan to have by the end of this year? By the end of next year? The year after?
How much do you plan to sell your product/service for? How will customer acquisition cost (CAC) get cheaper over the next few years? What will you need to do for CAC to get cheaper?
Eventually, you build out this road map of what the next few quarters and years will look like. You, effectively, plot out, here are the next few milestones we need to hit as a team. And those milestones are quantifiable and actionable – a clear sense of direction for your team and for your investors. Of course, as any road map goes, all subject to change depending on the situation.
In closing
Just like a great joke, you, the founder, need to be capable of delivering the punchline in your pitch deck. The build-up is the problem in the market and the world-class team you’ve assembled, as well as why it means so much to you. The punchline is the solution you’re building. Always, make sure your punchline delivers.
It’s relevant to the rest of the (comedic) routine.
When it hits , it’s at the minimum, satisfying, as a climax. At the maximum, like a world-class punch, it knocks the wind out of your audience.
In the words of Robert McKee, a Fullbright Scholar who’s coached over 60 Academy Award winners, 170 Emmy recipients, among numerous others,
“At story climax, you must deliver a scene beyond which the audience can imagine no other.”
Your punchline, your product, by the time you deliver your pitch’s climax, must deliver a utopia beyond which your investors can imagine no other.
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
There’s a saying in venture that: “A-players hire A-players; B-players hire C-players.” Your ability to grow a business is often closely correlated with your ability to attract and acquire talent. But what does it mean to attract and hire world-class talent? Especially for functions you, as a founder, yourself may not be an expert in.
“A-players hire A-players; B-players hire C-players.”
How does a first-time founder how to vet a seasoned sales executive? Or on the flip side, how does a non-technical founder learn to differentiate a good AI engineer from a great AI engineer?
While even the best founders, leaders, and managers make hiring mistakes, hopefully this post can act as a reference point as to what to look for. And while I have yet to master the craft, I’ll borrow 5 lessons from some of the best that has served as a guiding principle for me and for some of the founders I’ve worked with.
5 Lessons from 4 of the Greatest
Hire passion; train skill.
Desire/obsession > passion.
And, the ephemeral nature of passion.
Hire VPs who can hire.
Attract and hire intentionally.
On building trust.
On scaling yourself.
To hire your best complements, ask people in your network 2 questions.
Over the past few weeks, California has been plagued with wildfire after wildfire. It got me really thinking about what I miss.
I had a birthday resolution to run more to achieve a sub-5 mile by running in my neighborhood regularly. I used to manually water the plants in our backyard, especially my kumquat blossoms that finally bloomed after 2 years. And, I used to keep my windows open so that fresh air could fill the house.
The smell of dew and the brush of chill in the morning. The smell of freshly-cut grass in the afternoon. And the evening dinner aromas that pervaded our cute suburbia.
Then, everything changed when the Fire Nation attacked. When the smog came to our neighborhood, I no longer had that luxury. Rather, I spent my time indoors, and a few days back I wrote this in my journal.
The Little Things
Silence of the jay, Crimson ochre dyed the sky, Tumbleweed astray.
New kumquat blossoms Birthed from labor, yet scorched by Ashen canopy.
A resolve to run, Yet I am basking under A bright midnight sun.
Taken for granted, A life I thought I knew well And now much better.
Inspired by the lost Cherished more when found, come forth Will the little things.
Appreciating life
What else do I take for granted? What else will I deeply miss when I no longer have but aren’t fully appreciating now?
The first answer that comes into my head – the people around me. My family and my friends.
#unfiltered is a series where I share my raw thoughts and unfiltered commentary about anything and everything. It’s not designed to go down smoothly like the best cup of cappuccino you’ve ever had (although here‘s where I found mine), more like the lonely coffee bean still struggling to find its identity (which also may one day find its way into a more thesis-driven blogpost). Who knows? The possibilities are endless.
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
People seem to love origin stories – both in theatre and in life.
“How did it all start?”
“How did you get into this career?”
Or…
“How did you meet your wife/husband?”
And well, I can’t say I’m one to push back on that.
There’s something truly magical about “Once upon a time…”. And I’m no stranger to fairy tales. Growing up, I was largely influenced by older female cousins and family friends. As soon as our parents left to their wine-sipping adult gossip around a table of blackjack, my cousins and older female friends would drag us to watch their favorite Disney movies on the VCR, namely princess movies. I’m not exaggerating when I say I’ve seen Beauty and the Beast more than 100 times or Cinderella more than 50 times. In fact, my friends in elementary school would talk about their favorite movies – Transformers, LEGO Bionicles, Peter Pan, and Tarzan. Yet, mine was Disney’s 1998 Mulan.
And they all started with “Once upon a time…”
So, it was no surprise when friends, colleagues, and then strangers started asking me:
“How/when/why did you start hosting social experiments?”
I hear so many founders in their pitch decks say: As soon as they raise funding, [blank] will happen. [blank] could be: hiring that CTO or lead developer or an operations lead, getting to X0,000 users, or going “all in” on growth (often heard as Facebook and/or Google ads). That line by itself really doesn’t mean much. So I always follow up, with: “How do you plan to achieve [blank] milestone after you extend your runway/receive venture backing?”
Then this is when I start thinking, “Oh no!”, especially as soon as I hear, after I partner with X investor, they will help me do Y, or worse, they will do Y for me.
And I’m not alone. So, what signals does that response give investors?
Alright, Investor A, I’m planning for you to do the legwork for growing my business.
I don’t know what I’m doing, but please invest in my naivety.
I haven’t thought about that problem/milestone at all, and I’ll worry about it when I get there. So, take a big risk in me.
Why I love athletes, chefs and veterans
There is no white knight in shining armor when you’re raising a round.
This is the reason I love athletes. And for that matter, veterans and chefs, too. Each of them chose a career where they are forced to deal with adversity. Personally and collectively. To a level, most of us might call inhuman. While I’m sure I’ve missed many other industries that also sponsor such arduous growth, and yes, I know I’m generalizing here, these 3 industries seem to have a higher batting average of producing individuals who can find the internal grit to overcome almost any obstacle.
“They’ve trained themselves to be better at doing things that are hard.”
While he wasn’t necessarily talking about professional athletes, chefs, or veterans, the same is true. The people who are better than you at doing something don’t have it any easier than you do. Rather, they’ve developed a system, or mental model, that helps them conquer extremely difficult obstacles. And because it’s become muscle memory for them, it seems easier for them to accomplish these goals. At the same time, we should never discount their blood, sweat, and tears, or what some of my colleagues call scar tissue, just because we cannot see them. It’s why we in venture call startups “10-year overnight successes“.
To founders
Bringing it back full circle, a great founder (as opposed to a good or okay founder) never completely relies on an external source for the growth of their company. By the same token, a great founder also never blames the failure of their startup because of an external source. A great founder – regardless of the business’s success or failure – learns quickly to not only repeat the same mistake again, but also develop insights and skills to push their business forward. While you as the founder isn’t required to be the best in the world of a particular skill, you will need to practice and accel at it until you can find the best in the world. But to hire the best in the world, you also have to be reasonably literate in the field to differentiate the best from the second best.
The solution
Here’s what investors are looking for instead:
We’ve thought about the problem. We’ve A/B tested with these 3 strategies (and why we chose each strategy). Numbers-wise, Strategy B proves to: (a) have the most traction, and (b) is most closely aligned with our core metric – revenue.
Here are the 2-3 core milestones we plan to hit once we get this injection of capital. And we will do what it takes to get there. In order to get there, we’ve thought about hiring an expert in operational efficiency and purchasing these 5 tools to help us hit these milestones. For the former, here’s who we’ve talked to, why we think they’re a perfect fit, and what each of their responses are so far. For the latter, each tool in this short list can help us save X amount of time and Y amount of burn. Do you think we’re approaching these goals in an optimal way?
Note: The signal you’re giving here is that you and your team are results-/goals-oriented, while the process of getting to those goals are fluid and stress-tested.
In both cases, you’re showing your potential investors that you’ve done your homework already (versus a Hail Mary). But at the end of the day, you are open and willing to entertain their suggestions, which, ideally, come with years of experience in operating and/or advising other founders who have gone through a similar journey.
So, stay curious out there! Always question the seemingly unquestionable!
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
I’ve been debating for the longest time whether I should put out this post or not. Not only does it require me to “open up about the potholes“, as Jeff Wald puts it, I’m not sure how I should be feeling. Or maybe I do, but I’m just not willing to admit it to myself.
Last week, I read Brad Feld‘s post, “Are You At Your Best Right Now?“. And it was the final push that gave me the courage to write this. After all, this wouldn’t be a member of the #unfiltered series if I wasn’t sharing my raw thoughts.
Am I at my best right now?
I’ve had the long standing belief that if I’m not making any new mistakes, then I’m not taking risks.
And if I’m not taking risks, I’m not improving.
For the past 6 months of quarantine, I haven’t made any mistakes… neither ones I’m proud of nor severely regret. Half of which I believe most people could do without. Though I don’t set myself up for mistakes that I think are foolhardy from the get-go, I am not learning if I don’t make any mistakes at all. I’m not talking about mistakes that I make without a second thought of regret. Like drinking 7 cups of water today, rather than 8. Or forgetting to put up the toilet seat. Or a grammatical error in my writing.
I’m talking about mistakes that have defined, define, and will define my life’s trajectory. Inflection points that draw our life’s story on a once blank canvas.
My pursuit of ‘the best’ prior
In my first two years of college, I made many mistakes as an operator, as a friend, and to my promises. I over-promised and under-delivered. I let a friend I really respected and cared for down. To the organizations I was lucky to be a part of, I juggled too many things at once, thinking multi-tasking was an attribute of pride and prestige.
In my third year of college, I took networking to a new level. And along the way, burned bridges in my persistence and lack of awareness.
In my fourth year, drained from the relentless ego contest, I took a step back to reflect and be more candid than I gave myself the liberty to previously. In my pursuit of honesty, once again but in a different context, I didn’t consider the impact of my words with a handful of friends.
In graduating, I took a risk to not accept the offers I had on the table – some of which I know people would fight for. I chose a path that I felt I wouldn’t regret in the then amazing upside of the economy.
In the years following, I made bets to be at places, to be with people, and to learn from them that I had doubts other platforms would provide. In retrospect, some more foolish than others. Placing trust and hope that some of my friends who knew considered in ill faith.
But every time I learned.
I became a stronger person than when I went in.
Now
These days when friends, colleagues, and strangers ask “How are you doing?” or “How have you been?”, I’ve become my own worst nightmare.
“I’m fine.”
“I’m okay.”
While I’m not lying, I hate myself the moment I utter those words. First how much it’s become a knee jerk reaction. But secondly, and more importantly, how much hasn’t changed since the pandemic.
Like many of my friends and colleagues, and I’m sure, many more on this planet, I had 2020 plans. Plans to take risks and make mistakes. Unfortunately, for one reason or another, many of them have been put on a stalemate. At the same time, I know many of my friends aren’t doing well. From breakups to layoffs to the impending doom of deportation to deaths in the family, I feel like I should be the last person to complain.
In closing
I want to be clear. I’m not looking for pity here. But I want you to know. It’s okay. You’re not alone. While we all are feeling a different magnitude of emotions now, you’re not alone, when “I’m okay” belies what we’re all feeling right now. I can’t speak for others, but I am not at my best right now.
If you need someone to talk to or just someone to listen, I’m here.
#unfiltered is a series where I share my raw thoughts and unfiltered commentary about anything and everything. It’s not designed to go down smoothly like the best cup of cappuccino you’ve ever had (although here‘s where I found mine), more like the lonely coffee bean still struggling to find its identity (which also may one day find its way into a more thesis-driven blogpost).Who knows? The possibilities are endless.
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
I recently tuned into, at the time of writing this post, Tim Ferriss’ third most recent podcast episode, interviewing Rabbi Sacks. Although I’m a regular listener to the show, I wasn’t expecting much. I neither have a history of being religious nor spiritual – merely peripheral curiosity. Yet, I don’t hesitate for one second to say: It is, by far, one of the most insightful and enlightening podcast episodes I’ve heard in 2020. So, if you have a spare 1.5 hours, I highly recommend it, especially if you’re looking for a perspective shift on:
Leadership,
Seeking peer approval,
What a single cold “call”/visit could get you,
And the need for “cultural climate change” in the understanding between the balance of “I” and “we”.
And Rabbi Sacks masterfully weaves these concepts together. While my reaction will never do his insights justice, two other thoughts, each paired with their own story, I had to double click on:
“Good leaders create followers, great leaders create leaders.”
“What happens when you’re in a situation in which you have done something that has generated widespread disapproval? How do you deal with that?
“Win the respect of the people you respect.”
And I digress.
The Bubble
I’ve lived my entire life so far in the Bay Area, barring a few vacations and excursions here and there. I was born here. I went through 12 years of grade school here. 13 if you count kindergarten. And though I had the option of leaving the Bay for college, I ended up choosing a school here as well. Truth be told, I might as well have “Made in the Bay” stamped on my forehead.
I live in a bubble. But I know I breathe in one. Not just geographically, but educationally, racially, sexually, socioeconomically, and so on.
Being a shy introvert pre-adulthood didn’t help with broadening my perspective on life either. I still remember the days in high school when I dreaded the teacher calling on me. Clammy palms, cold sweat, rigid spine. I would never vocally question disagreement. Equally, I would rather be a people pleaser than cause what I deemed to be unnecessary friction. I was a seafood hors d’ouevres of perturbation.
So, by inspiration from a mentor, I took actionable steps to conquer my own demons. Meet one new person you’re extremely excited to meet every single week for a year.
While I still carry the artifacts of myself yesterday, learning to balance myself between the person I thought and think I needed to become and the person I was, I began my journey 6 years ago.
The Pop in the Bubble
I’d be fronting if I said I wasn’t scared shitless when I began. Though I don’t think everyone in the world has this dilemma, I’m confident I am not alone. I had and have all these scenarios playing in my head. A bunch of ‘what-ifs’. What if they think I’m too nosy? What if they don’t have time to respond? Or what if they hate me for bothering them?
They say it gets better over time. And they’re not wrong. But I still have that lingering, gnawing feeling whenever I click send or put myself out there. While, over the years, the fears never fully dissipated, I’ve learned to tango with discomfort. In the words of my mentor who inspired my journey:
“You’re never as good as they say you are, but you’re also not as bad as they say you are. And hell, you can’t even be bad if they don’t even know who you are.”
… which I believe he drew inspiration from Lou Holtz. Shortly after, I clicked the “Send” button at the bottom of my first ‘curiosity’ email. After all, like he said, what’s the worst that can happen? Getting ignored. And as such, I would be no better nor worse off than I was and am in that cross section in time. With that assurance, it eventually led me to find my cold email “template” and hosting social experiments, like Brunches with Strangers.
The Where
Over the past few weeks, a few new people asked me: “Where do you find these people to reach out to?” Although it’s not the first and I assume certainly not the last, I thought I’d share in the form of this post as a possible inspiration for how we can grow, if I were to paraphrase Rabbi Sacks.
While I don’t characterize myself as a voracious reader, I allot time every day and have found many of my Senseis in the form of literature and discourse – online and offline, printed and taped, and in-person and remote. Including:
Books
Online articles/press releases
Newsletters
YouTube videos
Movies
Podcasts
Webinars/fireside chats
Textbooks
And, other people
One level deeper
To look beyond my own horizon, I tune into Pocket‘s Discover tab, or a platform I’ve recently fallen in love with, Readocracy. You can check out what online reading I’ve been up to lately on my Readocracy profile. And I can’t wait, when I can start tracking the books I read and the podcasts I listen to on there. I’m also fortunate enough to have friends who read, write, listen, and socialize with different social and professional circles than I do and am in. And as I meet more people, the spectrum of topics and interests snowball upon each other, as we help each other see new perspectives – some of which we never thought were possible.
Admittedly, where I find who to reach out to is, by no means, special or esoteric. In topics, I look into ones I’m genuinely interested in, in that moment and predictably beyond, even if it’s only a month or two, as promiscuous as I might be for many. In my short phases of promiscuity, I nevertheless take deep dives. Deep, yet often, not long. At the same time, I have a small handful of evergreen interests, like:
The art and science of building relationships,
The art of creating irreplaceable memories,
Psychology and mental models,
Swimming and intense athleticism,
Art as a multi-faceted definition,
Startups,
Technology and what lies at its frontier,
The final frontier – outer space and its cosmological inhabitants,
And the future.
In people, I look for two things:
Inflection points in their life. Oxymorons/ironies. Overt and covert contradictions.
If I were to make assumptions given their initial attributes (i.e. education, age, gender, geography, career, life choices/circumstances, etc.), would I have been able to predict where they are now?
Of course, in making these assumptions, it is also my responsibility to be aware and to tread carefully where I should. Unfortunately, ignorance is not an excuse. If I’m unsure, I err on the side of caution.
Deep intellectual curiosity and passion. Whom I call the passionately curious and the curiously passionate.
In closing
While I’m prone to talking too much at times, during these moments, it is my duty and the highest form of respect I can offer, to listen. If I were to take it from a selfish note, I learn so much more when I listen. And in actively listening, and actively checking my biases, to respond with thoughtful questions.
So, I’ll close on more thing Rabbi Sacks said in his recent interview with Tim Ferriss:
“Safe space means that courteous discipline of respectful listening.”
#unfiltered is a series where I share my raw thoughts and unfiltered commentary about anything and everything. It’s not designed to go down smoothly like the best cup of cappuccino you’ve ever had (although here‘s where I found mine), more like the lonely coffee bean still struggling to find its identity (which also may one day find its way into a more thesis-driven blogpost).Who knows? The possibilities are endless.
Stay up to date with the weekly cup of cognitive adventures inside venture capital and startups, as well as cataloging the history of tomorrow through the bookmarks of yesterday!
