Monthly Archives: July 2011

Defining an Entrepreneur

Written by: Adam Besvinick

Posted on July 26, 2011 by Adam Besvinick| Leave a comment

Some believe that a person is simply born an entrepreneur, that entrepreneurship can’t be taught in the classroom or through seminars and conferences. Others believe that you can mold and shape someone into becoming an entrepreneur over time. I tend to align with the former group. Yes, you can certainly teach someone the necessary skills that an entrepreneur needs to possess. However, people that are entrepreneurs are just hardwired differently than everyone else. They are willing to throw caution to the wind when necessary but also can take measured risks. They find solutions to problems that were previously thought unsolvable. This inherent hardwiring is certainly not a guarantee for success; just as not being an entrepreneur doesn’t mean you will fail. It is merely a dichotomy in the way people think about the world and the problems that are in it. But if we take this as a given, that some people think like entrepreneurs and others don’t, how do we define those that do? Does an entrepreneur have to start his / her own company? Does an entrepreneur have to create something entirely new? What really is the (non-Oxford English Dictionary) definition of an entrepreneur?

In a post yesterday, on the Harvard Business Review blog, Grant McCracken asks the question, “Who and what is an entrepreneur?” He poses this question after hearing Marc Ventresca, a professor from Oxford’s Said Business School, say that entrepreneurs create endeavors by  ”marshaling, mobilizing, and connecting different worlds.” In essence, Ventresca believes that nothing that is invented or started is new – it is merely a derivative of something or combination of things that came before it. McCracken, on the other hand, subscribes to the “heroic” definition of an entrepreneur, such that a person creates something altogether new and goes outside the “capsule of culture.” While he acknowledges that some entrepreneurs “repurpose what exists,” that type of definition doesn’t aptly describe those entrepreneurs who suffer the “penalty of taking the lead.” At the end of the day, though, defining an entrepreneur is a virtually impossible and, frankly, fruitless task. An entrepreneur (and by extension, entrepreneurship and the entrepreneurial spirit) is not tangible. Sure, a person can be an entrepreneur, but the effort, the hardwiring, the belief system, etc. that goes into a person doing something entrepreneurial can’t be put in a box. For me, trying to define an entrepreneur is a little like what Justice Potter Stewart encountered when trying to define pornography: I know it when I see it.

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How to Break in and Build A Network in the Startup Scene from Scratch

Written by: Scott Britton

Posted on July 19, 2011 by Scott Britton| 2 Comments

This is an old post from my personal blog I’m republishing here due to the frequency I’ve been encountering people trying to break into the startup world.

“I want to break into the startup scene…but I can’t code”

If I had a nickle for every time I’ve heard that…I’d probably have like $3.20. But seriously, I don’t know if its because the tech scene is hot right now or that the composition of my personal network is changing, but it seems like a lot of people I talk to who aren’t already in the startup scene want to break in to it. I feel that the common misconception many people have is that they have to be a developer or designer to do this. Although these qualifications help, its a far cry from a necessity.

This post serves as a personal case study of my journey to what I call really breaking in. If your looking to be just “a guy who works at a startup” that’s fine.  But if you want to build a solid network of people that you can call on, connect, and add value to you’ve come to the right place. In my opinion, having this type of network makes becoming a successful entrepreneur infinitely easier.

Step 1: Find someone you know and dropkick the door down.

If you have no technical experience or your Uncle isn’t Ron Conway look for people you know that are currently working in startups and see how you can get involved. I broke in by cold calling a guy I had class with 4 years earlier in college. Let me preface this by saying we weren’t really friends as undergraduates. I just saw a NYT article on his site, found his number on the press kit and called him in the parking lot during my lunch break to tell him how excited I was about what he was doing. A conversation or two later, I offered to work for free and eventually got the nod prompting me to quit my job the next day. Moving from a lofty two bedroom apartment in Chicago to back home with Mom and Dad wasn’t easy. Especially when you’re making no money (they covered my travel/lunch) and commuting over an hour by train. But if you really want to immerse yourself into this world full force, you can’t expect to be handed an opportunity. Once you have a window and a chance to get your foot in the door you need to do whatever it takes to seize the opportunity.

Step 2: Once there, drink out of a firehouse 

Ok you’re now a guy who semi-”works at a startup”. I could write a whole post on just this stage of the game, but I’ll stick to the general themes for the sake of time and what sounds like a good episode of Tosh.O.

At work: Try to get involved in as many different facets off the business as you can so that you can learn as much as possible. Ask a ton of questions about not only what is going on right now, but also the past and future to learn about how they got from point A to point B.

During your commute: Listen to podcasts/audio books about entrepreneurship, startups, VC. I really enjoy Entrepreneurial Thought Leaders and VentureVoice.

Step 3: Socialize and get used to buying other people  coffee and lunch.

Right from the get go its really important to start getting to know other people in the scene. Start out with people in your office, even co-workers if you’re shy.  A great way to do this is to offer to take them out for a coffee or lunch during your free time so you can hear a bit more about their experience working in the startup world. Once you’ve exhausted your co-working space just cold email people in your region who are doing cool things saying you’d love to buy them lunch to hear more about their project. I’m copying a cold facebook message below I used that worked many times:

“Hey RICKY BOBBY,

I just came across BESTSTARTUPEVER.COM on techcrunch and thought it was totally awesome. I’m working over at LESSAWESOME.COM down the street and would love to take you out for lunch or a coffee sometime to hear a bit more about what you guys are doing to see if I can help out in any way. I’m kind of new to this whole startup thing and would really appreciate any insight on your experience thus far. If you’re too busy, no worries just means I get to use the product sooner! Take care”

You have nothing to lose and startup guys rarely say no to a free meal…trust me. I was able to learn so much from these early interactions which is just one of many reasons why they’re so important.

Step 4: Look to provide value and seek nothing in return

 This philosophy should be the focal point of all of your interactions not only at this point of your journey, but throughout your entire life (in my opinion). When your talking with these people learn about their challenges and see if there is any way you can help. Common ways include feedback, pinging relevant articles, and connecting them with people who can help/their business has synergy with.

Connecting people is huge and something that comes naturally once you have met enough people. Think about who from your growing network could help someone out and then make an introduction (if they give you the okay). This goes a long way and helps you establish yourself as a connector.

STEP 5: Start getting people together by hosting events

Okay so at this point, you’ve got a pretty solid group of people in your corner. Now its time to ramp it up by getting together people who don’t know each other together in a group setting which can be really fun. Again, I like to focus these events on providing value for others. I have three events I host at different frequencies with a partner(s).

Startup breakfast: Once every 2 weeks I used to get 6 new people together early in the morning to discuss their challenges and get feedback from each other on how they can overcome them. INCREDIBLE

Poor Man’s Dinner: Either every other Thursday/Weds night myself and a friend get 8 new people together to shoot the breeze over some cheap eats. Really fun.

These steps have helped me to grow a pretty decent network in the NY startup scene. Also, don’t think you have to have some incredible skin on your wall like starting a successful company to validate putting events on. Remember you’re just facilitating the interaction of others, not lecturing on your accomplishments or what you know.

I also recommend going to multiple meetups and events each week and developing an active online presence (blogs/twitter with a splash of facebook). There’s a ton of other ways to grow your network, like build foursquare, but this is just how I did it. Now go out there and get it done!

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The Best Part About NYC’s Tech Scene

Written by: Adam Besvinick

Posted on July 18, 2011 by Adam Besvinick| 2 Comments

Last week, my fellow Venturebent writer Nick Gavronsky wrote about how critical it is for startups to create their own unique culture and the various ways the initial leadership team can do so.  Part of what goes into the cultivation of this culture is the intrinsic ethos that entrepreneurs and management teams themselves bring to the table.  Oftentimes, the primary component of this ethos is dogged determination, the notion that even if no one believes in your idea, you and your team do — and that is all that matters on Day 1.

Over the last several months, as I’ve gotten to know numerous young entrepreneurs in NYC, I have found this stubborn persistence in every person I’ve met. This attitude was perfectly encapsulated in a recent post by Reece Pacheco, one of the entrepreneurs I’ve gotten to know. After raising a round of funding for Shelby.tv, Reece reiterates the importance of a key mantra: expect nothing, earn everything. This attitude is one I’ve adopted during my efforts to break into NYC’s tech scene, and I’ve also seen it in all the guys on our Venturebent roster as well as others entrenched in the NYC tech scene whether they’ve taken the plunge of starting a company or not.

Alex Taub recently tweeted that he has a circle on Google+ called “Young and Hungry Tech,” a phrase which epitomizes Venturebent’s mission as well as the best part about the NYC tech community. As this tech wave continues, I have no doubt that NYC’s startup scene and the guys I write with on Venturebent won’t get full on current successes, but rather will look to feast on future endeavors.

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What I learned today: Startup culture

Written by: Nick Gavronsky

Posted on July 13, 2011 by Nick Gavronsky| 7 Comments

There are several factors that lead to a company’s success: funding, talent, and product/market fit, however, one of the most overlooked elements is a company’s culture and the expectations that come with it. Culture is crucial.

Next to product/market fit, I believe culture is the second most important element for success, but it is often overshadowed by talent. Many companies look for the best talent and then like pieces of a puzzle piece the team together hoping that the culture will magically develop itself over time. That is a dangerous approach. I wish more companies took the opposite approach. While talent is crucial, especially in today’s competitive environment, a strong culture from day one will establish the foundation to attract the best talent.

So what is the right kind of culture? I have thought about this quite a lot and I believe that the following cultural  foundations are important to establish from the get go:

  1. Vision: This is crucial in the early stages. Your vision should be built to excite and inspire. You need to make it a priority that all of your employees coherently understand your vision and are working toward it every single day and in everything that they do. They also need to understand how the vision fits in with your culture. As a CEO or manager one of the first things you should be doing is explaining and communicating the vision to your teams so that your employees understand what it is going to take to hit the nail on the head. This way they are much less likely to waste time and resources on things that won’t get you to the summit. Aaron from Box.net explains this brilliantly here. You need to stick to your long-term vision and don’t change it to make a quick buck. It’s even worse when your employees see you flip flopping.
  2. Meritocracy: This is such a buzz word because so many companies claim they have a culture where the best performance is always recognized, especially much larger, less inefficient ones–aka corporate America. In order to make this work you need to truly reward those that go above and beyond, understand your vision, and help the company grow in everything that they do. Your best developer should be head of development, your best sales person should be heading sales, etc. Leadership should flow both top down and bottom up. Rather than hiring someone with experience externally to head these areas, I think its best to promote within–promote someone who has been there and built the business from the ground up.
  3. Survival of fittest: I am a big believer in developing a healthy competition in the workplace. You need to motivate your employees to strive to be the best and establish a culture where only the strongest will survive. Things move fast and there is no room for dead weight, especially at a startup. I am not saying establish an environment where everyone is constantly watching their backs, but you need to set the precedent that performance will be rewarded and that you will part ways with those that just aren’t getting it. There is a fine balance here. Obviously you need to let your employees fail along the way but if they are not learning from these failures it is time for them to go.
  4. Fight constraints: Be willing to run into those brick walls in your way. It’s inspiring for employees to see their CEO or manager do what it takes and find a way to make it happen. It may be exhausting to fight these constraints, but you need to create a culture that is willing to tackle adversity and come up with unique solutions to problems that at first seem insurmountable. Encourage your teams to try and come up with these solutions and always communicate and share their strategies.

If you can succeed in building the right culture and an environment where the best people are rewarded and recognized then finding that product/market fit, recruiting the best talent, and raising money will become that much easier.

I would love to hear everyones thoughts on what other factors you think are important as well as what to take into consideration when building the right kind of culture.

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Where Can You Win

Written by: Scott Britton

Posted on July 12, 2011 by Scott Britton| 4 Comments

Over 4th of July weekend I had a great talk with a friend’s Dad whose had a pretty stellar career in private equity. He probably still has American Online and couldn’t tell you what a hashtag is, but the guy is a total sage when it comes to business insight across the board.

We talked about how important it is to find a career that truly excites you: nothing new there. A more thought provoking conversation surrounded how we must objectively evaluate our personal strengths and weaknesses to see where we can win professionally. Its an incredible insight that I think is particularly important for entrepreneurs to think about.

If I was a betting man, or a VC : ), I’d always put my money on entrepreneurs who I think have a competitive advantage. I think an advantage can manifest itself in a few ways: talent, insight, relationships, and you might be able to throw timing in there. If you don’t feel like you have one of these going for you take a look in the mirror and ask yourself how you can win. If your answer is a unique idea my chips are on the other guy.  Let’s break these down:

Talent: Be objective about the talent you have and your chances of winning given those circumstances. Odds are if your team’s technical abilities are limited you shouldn’t try to build the most advanced search algorithm known to man. Unless of course you can hire the person who can do this. Stick to your guns and play ball at a level you can legitimately compete at. You’ll give yourself a better chance of succeeding. I say this not to discourage innovation, but to encourage success. If the sky’s the limit than rock on and let me know what you’re building.

Insight: The term “unique domain insight” is coveted for a reason – entrepreneurs who build businesses around spaces they deeply understand are more likely to win. They can see opportunities others can’t just as easily as they can anticipate potential hurdles and understand how to overcome them – so important. If you have no idea about the space you’re competing in hire or talk at length with someone that does.

Relationships: Sadly its not always the best products that win; sometimes its those who have forged the best strategic relationships. If you have them, good for you – this can make up for other shortcomings. If you don’t, evaluate the playing field and understand who does and what that means for your business. Do you want exclusive access to the twitter firehose for a groundbreaking data service. Better make sure somebody whose doing the same thing hasn’t beaten you to the punch.

Timing: This one is tough to argue because technically anyone interested in building a business has the same timing as you. I think this more speaks to first mover advantage (which isn’t always good) or unique insight into a confluence of factors. Both of these are a bit redundant. First mover advantage ultimately manifests itself as relationships with users, consumers, and partners. Insight on timing is, well, insight.

Ultimately, the thesis of this post requires entrepreneurs to ask themselves one question: are they poised to build the business they’rebuilding? I’m not asking are they the most poised because there will always be people out there who are better suited to do something. I’m asking at some level do you possess something that will enable you to win? Those who can answer yes have a far better chance of succeeding. If you can’t answer yes think about the collective superpowers of your team and where you can win – if you find something there that excites you the sky’s the limit.

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Master and Commander

Written by: Alex Topiler

Posted on July 7, 2011 by Alex Topiler| Leave a comment

Scott wrote a fantastic post earlier today about always finishing.  It really got me thinking about what makes me most productive and I think he’s absolutely right. As I was writing a comment to his post, it got kind of long so I though I might as well just post a short follow-up.

Ultimately, I believe everyone has their own personal strategies and tactics for how to be most productive.  The thing I’ve found is no matter what these things are for anyone individually, three main points underlie what it means to “always finish” and you will find them in all successful entrepreneurs (including Scott): discipline, focus and consistency.

I believe that whether it’s exercise, diet, sleep, to-do lists, careful organization, meditation or any number of things that you find help you do more faster personally, the most important thing – what’s at the core of it all – is that you stick to whatever works for you and have the discipline to stick with it 100% despite everything else pulling you in a million directions at any given time.  By doing so, you achieve ultimate command of yourself through consistently reinforcing the habit of following through, executing and being at your best.

So how do you master this illusive and fleeting state of always bringing your ‘A’ game?  Primarily, I think that it’s embedded in us from a young age by our parents and role models (being surrounded by people with a strong work ethic throughout my life no doubt had a huge impact on me).  However, if you’re looking for something you can control right now – when you feel yourself slipping, start small and build up some momentum sticking to and finishing whatever it is that makes you personally productive.  If I can’t set my mind to something, I just start doing it and that almost always has the effect of setting my mind to it for me.

Want the ultimate fix?  Sure – it all comes back to those same old clichés: Have a passion for what you do and a chip on your shoulder – something to prove, whether to yourself or someone else.  Unfortunately, I can’t help you be passionate about something you’re not.  However, if I really want to be productive and make sure I ‘always finish’, I found that the following never fails: I tell 10 of my closest friends and family members that I’m going to do something and ask them to hold me to it.  If I need even more of a spark, I would offer to pay them each $100 if I don’t follow through.  You will finish – I promise.

If all else fails, there’s always coffee.

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Always Finish

Written by: Scott Britton

Posted on July 7, 2011 by Scott Britton| 11 Comments

Its so important to finish in everything you do – especially as an entrepreneur. When you’re doing startups there is never enough time in the day. You’re forced to pick and choose your battles and devote less time to certain things you care about. A hierarchy results where some things get more time and attention than others. I’ve found this segmentation to be fine, but when you start cutting it short on things it can be a slippery slope.

Three things that have been consistently important to me throughout my entrepreneurial journey are my professional goals, fitness, and diet. Early on, I decided that my diet and fitness regimen were going to take a backseat to me trying to kick the door down as an entrepreneur. I opted to go to the gym 3 days a week vs. my former 5 and eat out more because its quicker than preparing your meals – more time for work.

As the nights got longer there’d be mornings where I just didn’t feel like going to the gym. At weeks end I’d have hit the gym 1-2 times instead of my target 3. It was always easy for me to justify skipping because I was spending those hours catching up on sleep from working late. I’d tell myself those extra hours would allow me to be more productive at work…after all getting ahead professionally was at the top of my pyramid.

Over time I began to notice failure to accomplish goals outside the professional realm were taking a serious toll on my discipline. I’d feel urges to make excuses not to do something I needed to do at work. I’d find ways to stay busy instead of really focusing on things I needed to, but didn’t want to.

I had thought I was doing myself a favor by pushing aside other things like the gym and my diet for work…but one day it hit me. Cutting it in short in those areas had caused a bad habit and it was carrying over to all aspects of my life – especially work. Pretty ironic since I thought that I was actually doing myself a favor for awhile there.

The greatest lesson I learned is its fine to make sacrifices in certain areas of your life as an entrepreneur, but make sure you finish what you set out to do in every area of your life. You’ll be far better off, even if that means setting less ambitious goals at first. Just make sure your finish.

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The Startup World’s Balance of Power

Written by: Adam Besvinick

Posted on July 7, 2011 by Adam Besvinick| 3 Comments

A couple days ago, Phineas Barnes wrote about how he plans to fix the VC product for entrepreneurs by allowing them to review him after every meeting with the hope that over time he will improve his preparation for meetings and punctuality, among other things. I think Phin’s goal is very admirable and one which I hope all VCs will strive to achieve, particularly during this current tech wave we are riding. Moreover, upon finishing the article, I realized that it is somewhat in line with a theory I have been kicking around for a little while.

The theory: The balance of power between entrepreneurs and VCs is cyclical and constantly shifting back and forth. Right now, when money is easier to come by, entrepreneurs have the leverage. VCs are competing for the hottest deals, and when it comes time for an entrepreneur to pick his/her investors (because the entrepreneur has that luxury during times like this), he/she will choose based on factors such as terms, geography, resources, experience, likeability, etc. For example, firms feel like they absolutely have to have certain types of senior associates and partners because they want the entrepreneurs to feel comfortable and select them. Phin says “investors are service providers.” However, I would argue that it is only now during this frothy period that VC has swung to more of a service business with entrepreneurs as the clients. When money is tighter, such as in 2001-2002, VCs had the leverage. Now, this “power” wasn’t an excuse to be unprepared for or late to meetings, but they just had more influence in the relationship. It was much less of a service business during that time and truly what one thinks of when the term “buy-side” is said.

So what does all this mean for entrepreneurs and VCs alike? As many have pointed out, entrepreneurs should be raising as much as they can during these good times because you never know when the shit will hit the fan, while also respecting that VCs are ones deploying that capital. And for VCs, regardless of whether they have leverage or not, they should understand that they only see a return if an entrepreneur accepts and does something lucrative with their investment. At the end of the day, it seems to me that if entrepreneurs and VCs could peacefully coexist (and realize it’s very difficult for one to thrive without the other), they could put an end to this cyclical tipping of the power scales and work together on equal footing.

 

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What I learned today: Never apply for a job

Written by: Nick Gavronsky

Posted on July 6, 2011 by Nick Gavronsky| 46 Comments

I attended a biz dev event last week that was put together by Alex Taub (@alextaub). It was probably one of the best events I have recently attended and I suggest if you haven’t attended before make sure you go to the next one.

The topic was about BD vs Sales and the panel included Steve Cheney (BD at GroupMe), Eric Friedman (BD at Foursquare), Jane Kim (BD at Hashable), and Wiley Cerilli (CEO of SinglePlatform). The BD vs Sales topic was extremely informative, but one thing that really caught my attention was when Steve briefly discussed that he plans on never directly applying for a job again.

I found this to be one of the biggest lessons I took away from the event. The entire job search process has diverted away from the core of what is most important: developing relationships with professionals and peers  in the industry of your interest. Why is that? Because it makes it easy–almost too easy. The resume drop has become the industry standard, yet it is the most impersonal and least effective way of getting that dream job.

The Monster.coms and several other job search platforms have made looking for a job an emotionless and pragmatic process that has forced many companies to adopt a similar stance.  Every job that I have found has always been through warm relationships that I have had with my peers. I know the job market has been tough the last few years so I suggest that if you are looking for a job you should be out there building relationships, networking, and marketing yourself. I see so many people hopping on job boards, applying to 100+ jobs and then sitting back hoping they magically get an interview. This just does not work for most people. You need to put a face to the resume and build a network with both the company and industry where you want to launch or extend your career.

My final piece of advice: you should be out there building your reputation so that when an amazing opportunity comes along someone in your network can say “Hey, I know a great guy for this position.” Personal introductions are so much more powerful than a resume drop.

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Life, Liberty, and the Pursuit of Entrepreneurship

Written by: Kevin Pruett

Posted on July 5, 2011 by Kevin Pruett| Leave a comment

“Life, Liberty, and the pursuit of Happiness.”  This phrase is so famous that it’s often overlooked and rarely internalized.  On this 4th of July, I thought about the meaning it has in today’s society, and how it should shape the way many of us go about our daily lives.

When you break it down, it’s really very simple.  What makes you happy?  Take that and pursue it…it’s not only your right to do so, it’s your obligation.  Entrepreneurs are not 9-5′ers; they know from an early age that in order to be fully satisfied, they need to work towards something that they believe in…something that makes them happy.  They exude passion and fight to make that their life’s mission.  They consider this way more meaningful than a stable job that lacks these characteristics.  Notice how I never use the words salary, time-off, paid vacation, benefits, etc.  Yeah, we may be a bit crazy and idealistic, but guess what, so were the Founders of this Nation.

Listen, you’ve heard this all before, so I won’t drag it on.  But I do want you to take it seriously this time (if you haven’t before).  It’s time we did what we loved, what we are passionate about, what we are good at.  It’s only at this point that we can really claim our individual freedom and dicate our own lives.  I’m a bit of an Objectivist as I believe when you do what you love, the world will be better off.  If you’ve left a meaningless job to pursue a more meaningful one, I applaud you, but do take it one step further and encourage others to do the same.

Nothing is more difficult, and therefore more precious, than to be able to decide.

-Napoleon Bonaparte

As anyone will tell you, pursuing happiness is not easy.  The vast majority will disapprove.  They will not understand.  Many will doubt, some may even ridicule.  Pay them no attention and take solace in the fact that it’s one less to compete with (more happiness for you!).  This path allows you to quickly see just how worthwhile the pursuit really is.  In other words, if you lack the passion, it’ll show.  Want to make a ton of money, get driven (or flown!) to and from meetings, and enjoy expensive vacations?  My advice to you is don’t become an entrepreneur.  There are more effective ways of gaining wealth than through entrepreneurship.  Try investment banking if that’s what you are looking for.  However, if you are seeking something even greater, and perhaps more impactful on society…then I would consider following the advice outlined above and pursue your individual happiness.

As you return to work from your holiday retreat, I ask you to remember what it was that you were celebrating this weekend.  Don’t be afraid to stand up out of your seat and look around at your workplace.  Glance over at the door you walked through this morning (now back to the office), and once again look over at that exit.  What are you waiting for?

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