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April 27, 2008

VC Left and Right Hand Adventures

True story:

Small start-up has interesting service.  Selling well and doing well.  They decide to raise some expansion capital to open up some additional markets, do some additional development work, and generally speed up the company's progress.

The CEO goes in and pitches big VC firm.  VC firm has tons of cash, people, and offices.  Pitch goes well and the partner says "Let's continue the dialog" while starting to do some work on the file.

The sales guy, who knows NOTHING of this fund raising activity, calls HR department of said big VC firm and proceeds to give the sales pitch.

Two emails come in from said big VC firm.

Email one: "Sorry, we pass"

Email two: "Cool product, here's the signed contract, can't wait to start using it."

I think this is hilarious but I'm generally viewed as twisted so your humor meter may not go off.

April 25, 2008

A Coder Worth Hiring

A guy over on rentacoder.com has this up as his motto:

"Always code as if the guy who ends up maintaining your code will be a violent psychopath who knows where you live" - Martin Golding

Ya gotta love that.

Have a great weekend, folks.

EverNote and Some Lessons for You

There is an interesting product out there called EverNote (thx, Ken).  When you go to the web site, you get nice page and a video which you can view in order to get a view of the product.

This video tour feature is rapidly becoming a must have so people can figure it what you have quickly.  So, some tips are probably in order:

1. Volume.  If you play the video tour for EverNote on a simple laptop with no mondo-speakers or whatever, it is very difficult to hear.  Sounds obvious but it in scanning a bunch of these around the web, this is a more common problem than I would have guessed.

2. Get to the Problem/Solution set quickly.  You can use flash (Tungle did) or a video like EverNote. Either way, doesn't much matter but the messaging remains the same. What's the problem and show me your solution.  The problem is explained in Tungle's demo in the form of meet this person and here is her problem, Tungle to the rescue. EverNote dives immediately into clipping something off a web page and tossing it into big pile of stuff.  In showing this to people, I got "big deal" a bunch of times and had to say, "no, wait, this is cool, check this part out."  The cool part is searching/finding text in pictures. This meant take a bunch of pictures with your camera phone and then you can search this stuff just like it was text.   The ding here was that the "quick" demo took a almost 60 seconds to get to the 'cool' part.  Get to the point, quickly.  60 seconds is a lifetime on the Internet and the 'big deal' factor is an ever present danger.  In this case, the people I showed the video to, assumed it was yet another screen clipping service missing the point of all the other features. 

3. You shouldn't be in show business.  EverNote's voice over is poor. The person speaks too fast, mumbles a bit, and has the volume problem I've already mentioned.  Now, you'll hammer me because this was probably the founder in a garage, no money, 'free' service, etc.  Sorry, that doesn't cut it.  Unless you are a loner living in a cave (with a DSL connection), you have friends, family, etc, that can help/will help for that same 'free' we talk about.  I would argue that there are tons of students out there wanting to be in radio/TV who would gladly help you for a chance to put this on their resume.  In the case of Tungle, she was okay, but used the car phone to record it which somewhat detracts from the message.  My point here is that in both cases, Tungle and EverNote, the demo is an opportunity to get people to go, cool!, and sign up.  Having anything that detracts from that objective is bad.

4. There are no Emmy Awards for this stuff.  As a counter point to item 3, don't get nuts here.  Get to the problem/solution set, do it without distracting the viewer, do it quickly and you will be fine.  This is not, in my opinion, the place which requires millions of dollars to be spent.  The simple thing is to simply put the video/flash demo up and get feedback before it goes live.  I'd argue that both Tungle and EverNote could have (long before the product was available) put their respective demo's up on their blogs for feedback. There is a balance against doing the Vaporware thing and letting your competition know what you are doing/saying, but feedback from the normal person, not the echo chamber and your mom, is important.

EverNote looks cool hope I can try it, Tungle is saving me hours of headaches with scheduling. 

Note: Tungle is a JLA Investment.

More Mail I Love

Embrace failure is a phrase I've been using a lot these days.  When it doesn't work out, dust yourself off, and press on.  These are the kinds of emails I want more of. These are the kinds of folks that are now "seasoned" and now "get it", having their on set of failure points that make them smarter.  Yes, I'm taking the meeting with some enthusiasm.

---------------------------------

From: Scott 
Sent: Wednesday, April 23, 2008 9:00 PM
To: Rick Segal
Subject: Re:

Hi Rick,

I hope things are well with you.  It was great to meet you last year to discuss [].  As you may recall, [] was essentially a laboratory project that we worked on internally and rolled with a ton of organic momentum. 

For a number of reasons that I can speculate, it seems that since launching the product, the growth trajectory stalled.  

I guess that's how it rolls sometime.  I've still been working on the service based customer projects that have been paying the bills all along. 

The reason for reaching out is that I'm in the middle of working on a []

I'm wondering if you'd be willing to vet the business concept and provide early critique/input. 

I'm not looking for capital now but am close to getting the product dev/concept far enough along that I'm looking to a few smart people like yourself who can see through the presentation layer and provide real input.

Let me know if you have some time.  I could send you a short introduction first and setup a call or a meeting to discuss.

All the best,

Scott

------------------------------

Scott's first idea didn't make the cut but Scott hung in there and is still at it.  My kinda guy. 

In my humble opinion, every VC out there should block off a couple of hours a week to simply help out the farm team.  If you are jetting off to France, planning that dinner party, picking out the leather for the jet, that's even more of a reason to help out the next generation.  It was people like Scott that got you where you are and put that expensive car in your driveway. 

Give back a little, it won't kill you.

April 23, 2008

Attention: Newfoundland and Labrador

My friend and investing pal at Growthworks, Scott Pelton, wanted me to let you know that Growthworks would really like to get some cash working in some start-ups located specifically in Newfoundland/Labrador.

As I've mentioned before, the Atlantic Canada workforce is amazing, the ideas are amazing and the opportunities are there.  If this is of interest to you, contact Scott over at Growthworks or me and I'll forward your information.

Get those business plans in today; operators are standing by.

[updated to correct the New in Newfoundland, sorry!]

Five Big Lessons from the VC Roundtables

I'm back in Toronto after a couple of weeks touring Canada.  While there are some other dates/cities planned, here are five big things I got from all the super smart people I met. These things are from a Canadian viewpoint so factor that in as you read.

  1. VC's don't respect entrepreneurs according to entrepreneurs.  Wow, do we have some work to do.  After getting people to open up, there were lots of comments about not returning emails, phone calls, ignoring them in meetings, etc, etc.  We clearly have to do better and treat the entrepreneurs, at a minimum, like customers and fix this perception.
  2. Entrepreneurs need the straight goods. All of us can update our respective web sites with very clear guidance on the process and the odds. People were shocked at the 800 deals to 4 funded ratio, for example. Fast no, open process, etc, all can do wonders to improve this environment.
  3. VC's and entrepreneurs need to talk early.  I made the case that the early you speak with me the better which apparently was counter to everything others are saying.  I believe that early is better because I can give you feedback, guidance, etc, as the process evolves. I can help you avoid taking angel money and then crushing them in a financing.  People believed I'm the only guy in town that will talk early and that's simply not true.  Ventures West, Celtic House, Growthworks, Brightspark, and many others in this country, are happy to talk with you and give you essentially the no harm, no foul type attention.  Seek them out; you'll be pleasantly surprised.
  4. We're in it for the money: that message was not obvious. Lots of folks didn't really understand the venture capitalist are in the business of making money and that means investing into an idea that will turn itself into a pile of money with a 5-7 year timeframe; sooner would be better.  Lots of questions about how to buy us out causes me to make the point here  I made in meetings: If you aren't into taking an idea, giving up some equity and getting to a liquidity event, we shouldn't be an option for your funding.
  5. Canada remains the best place on the planet for start-ups and talent.  Not much else to add. I was truly impressed coast to coast, with the talent, ideas and enthusiasm encountered everywhere I went.

More cities coming up.

April 22, 2008

Random Acts of Sucking Up (or I b Easy)

Meet Leah Plaxton, Marketing Manager for Projjex a web service for project management, collaboration, document sharing, and assorted dating services.  She sent me an email message letting me know that she "read my web 2.0 blog with interest."

The product is very nicely done.  The web site has a nice tour, a blog, and a very fast way to sign up.  The other interesting thing is the fact they keep that tour big and bold on all the pages to try and get you to press the play button.

image

The company also has some very important elements as well.

 

1. A bald, web 2.0 kinda guy, with those black styling glasses.

2. The obligatory web 2.0 geek who wants to be a rock star, strumming himself.

3. The obligatory web 2.0 open beam, rustic, we spent no money, office look.

4. The enduring mystery of just who is Leah Plaxton.

I had a couple of folks try this product and I'm happy to report they really like it. People I trust so I'm passing it on to you.  I would encourage you to take a peek at the site even if you are happy with your present stuff.  This is a nice clean design, good call to action, and a very good approach to trying to encourage you to play the video tour on the site. 

One nit was that with all these cool, hip, rock star types, your expectations for an amazing video tour are set a little high.  It's all business and points to the problem/solution set as well as a fast walk through of the product. Nicely done, if a bit, err, dare I say, dry.

Back to my email pen pal, Leah. (and some lessons for you, kind reader)

1. I read your blog and thought you'd be interested in... This is good enough. Linking my VC blog to Web 2.0, while flattering, isn't really what I'm about and it tends to make me think I'm being tossed in with the zillion other "web 2.0" bloggers you are trying to reach.  Generic, in my opinion, beats making a boo boo.

2. Canadian Company!  Put that in the email, at least for me, as that's a priority for me.

3. Put a link to your web site in your email. I know, sounds lame, but it is a friction free way to get me there. Note: Leah did this, I'm mentioning it to the folks that make me chase the site down by hacking their email address or using Google to figure out who/what. Most people won't do this including me when I'm busy.

And, finally, to all of you out there that think sending me a note telling me you like my blog will get me to look at something, yeah, it works, I love this stuff.

Okay, I am now off to steal somebody's coat for the trek into Calgary. (And, no, Projjex doesn't really have a dating service but I have confirmed that the air guitar -number 2 above- is looking)

Another Segal Survey - Phone Numbers

I'm freezing my (yeah that too) off here in Calgary.  Lord, who turned off the heat. 

I've been telling folks at the VC Roundtables, watch the trends as early as you can as they will impact your company, your ideas, and the decisions you make.

Consider this experiment/Survey:

I say the following:

"I can be reached at 416-367-2440"

Is that my:

Office, Home, Cell?  (Forget the who cares answer, wasn't part of the quiz)

When I ask 'young people' - those that are or I think are at or below 22- they almost always 'guess' cell phone.  Suits -obvious business people- assume it is my office number and of 40 or so people I asked over the past several days, nobody said home.

I use this an example of what I mean by trends.  If you had been doing this 10 years ago, those 'kids' wouldn't know about cell phones.  Just now in the Air Canada Lounge, some guy in an expensive (one I'll never afford) 3 piece suit just yelled into his phone: "I just sent you a text message with the code and if that doesn't work, I'll facebook it to you."

Yeah, facebook it.

Trends and changes, they are all around you.

Keeping an Eye on Me

I currently use FeedDemon to read/keep up with blogs. It's a good reader that does the job for me since I am bouncing between machines, locations, etc.

I like this feature:

image

This pops up, from time to time, we I am seriously behind in reading things.  As I showed this screen clip and explained what it meant/did to various people, I asked for an opinion of why they thought the company put the feature into the product.  I got many different answers ranging from friendly software to 'cute' to perhaps a software limitation of unread items.  All interesting but missing what, in my opinion, was a better (potential) reason.

It makes the app sticky.

Think about that for a second.  By putting this feature into the service, it can potentially prevent me from getting frustrated via the overwhelming inbound amount of reading to do which might cause me to throw up my hands, uninstall it and try something else, etc, etc.  It is rudimentary, yes, but the app is free.  Companies like AideRSS goes after attention and flood of information problem from a different angle, for example.

The lesson/question for you is: How do you make sure your customers 'stick' around.  Lots of interesting/friendly/fun ways to do it.

The No Email Thread

No is a not the word you want to hear regarding funding. No is not the outcome of a VC pitch you want.

A fast no, however, is important so you can move on to the next possibility.

When you meet with any VC, you can ask "what is your process" and get some details.  I would urge you follow up with "how fast can you get to a no" question because it should (I hope) remind the VC (me) that your time is just as valuable (or more) than mine.

I try for these types of email threads. I'm not perfect but I try.

-----------------------------------------------

From: Veronica

Sent: Monday, April 21, 2008 10:44 AM
To: Rick Segal
Subject: Business Brief
Dear Rick,
[removed]
I review what was sent and respond with:

From: Rick Segal

Subject: RE: Business Brief

To: Veronica

Date: Monday, April 21, 2008, 2:48 PM

Hi Veronica,

Thanks for sending me a note. This is not something that JLA would consider

investing in.  It certainly is important and as a social media play, I

understand the value, however, it simply doesn't fit with what we are

looking for as part of Fund 4. I appreciate you thinking of JLA.

Best,

>R<

And I get this reply back:

From: Veronica 

Sent: Monday, April 21, 2008 4:17 PM

To: Rick Segal

Subject: Re: Business Brief

Dear Rick:

Thank you very much for your prompt reply and honesty!

Best regards,

Veronica

I think this is simply the right thing to do. A review and if it isn't a fit, tell the person immediately.  All VCs could do our industry a favor by extending this courtesy to people working hard to get a business going. 

Prompt Reply and Honesty, it isn't that hard.  Off to Calgary.

April 16, 2008

The "Don't Do That" List (again)

Let's just dive right in. Here's a summary of some things I've experienced in the last ten days.  This is your "don't do that" list:

Don't:

  • answer the question 'how much are you looking to raise' with '5 - 35 million dollars'.  It just screams lack of focus.
  • start the meeting with 'we're in stealth mode and I can't discuss exactly what we are doing.' I will get up a leave the room since you aren't actually there.
  • tell me that you believe Windows sucks therefore you will refuse to sell your software to anyone running Microsoft products. It narrows your market just a bit.
  • mail me a 40 page business plan, sixty page financial report, plus your tax returns and THEN show up with an NDA to sign.  I won't.
  • ask me to advance the capital at the first meeting. We don't.
  • ask me to personally invest while the firm does our due diligence. I can't, won't, don't.

No Harm, No Foul, but still, these things push the envelope.

Great Ideas from the Wrong People

I've been running around asking business people the following:

"Let's say that for $175 a month, you could buy 'Just In Case' (JIC) insurance for those times when you get into a jam due to flight problems, weather issues, lost luggage, etc.  A problem happens, you call an emergency 24hr number and they take care of whatever. Cancelled flight? No problem, they get you on another flight, route you around problems, etc. If necessary, they can send cars, boats, trains, and planes to get you, etc.  Lost luggage? No problem, clothes, toothbrush, etc, are all sent to wherever you are or are going."

You get the idea.  For the most part, the road warriors, executives, etc, that I've spoken to loved this idea. They would pay even more if they could pre-buy an emergency block of flight hours from NetJets, etc, again, just in case.

So, somewhere in here, is a good idea for a whole bunch of insurance actuaries to grind on when it comes to services, fees, exclusions, etc.

While suits are working on this great plan, Air Canada came up with a brilliant idea. If you, on a per flight basis, cough up some extra coin and something happens, you get front of the line treatment.  If there is a cancelled flight, fear not and, for sure, don't go stand in line with the common folk. Call this secret number and we'll get you a nice sandwich, a Danish perhaps, hotel if required and, of course, a seat on a plane to get you where you eventually want to end up.

Awesome service right? Line cut, get out hold time hell, secret pass.  The flying public, trade press, etc, are pounding on Air Canada for having people pay for service you'd expect the airline to offer in the case of service disruption.  If the airplane breaks and you are stuck overnight, Air Canada puts you up, gives you a meal voucher, etc, and they generally do that today.  If you pay for this new service, you will get these things faster and will probably get a chocolate on the pillow. Okay, maybe not real chocolate, but you get the point.

When I frame a JIC service to people, they love it.  When Air Canada wants to 'sell' you a JIC service, it appears to backfire.

All in who delivers the idea, I suppose, and that is good news for start-ups. 

Sometimes the big boys simply can't play in the sandbox.

April 15, 2008

Adrian Kingsley-Hughes: A Fairness Example

I happened to make a left turn in ZDNET land and ended up on Adrian's blog page.  In scrolling down, I noticed this box at the bottom of the blog:

image

"The right to reply", now there's an interesting concept. 

Day 2 of the VC Roundtables

I'm headed up to St John's this morning after spending time in Halifax and Moncton.  The folks I've met continue to reinforce my belief that there are tons of opportunities here in Canada that get overlooked because we aren't getting out here to find them. Fun stuff.

I also had an opportunity to visit The Hopewell Rocks.  It is in the off season there which meant no crowds.

Hopewell Rocks 037 copy

This is one of the more spectacular places on earth when it comes to witnessing the power of nature.  You can't get the full impact of a 30 foot swing in tidal range from my photo. Standing under this mammoth structure, you get it. 

Hopewell Rocks 041 copy

This is totally worth your time to visit.  Off season, nobody around, hop the fence, free. 

April 12, 2008

Think You Research Your Customers? Meet Jan Chipchase

From the NYT today, an amazing story about Nokia's “human-behavior researcher.”

"Last summer, Chipchase sat through a monsoon-season downpour inside the one-room home of a shoe salesman and his family, who live in the sprawling Dharavi slum of Mumbai. Using an interpreter who spoke Tamil, he quizzed them about the food they ate, the money they had, where they got their water and their power and whom they kept in touch with and why.

He was particularly interested in the fact that the family owned a cellphone, purchased several months earlier so that the father, who made the equivalent of $88 a month, could run errands more efficiently for his boss at the shoe shop. The father also occasionally called his wife, ringing her at a pay phone that sat 15 yards from their house. Chipchase noted that not only did the father carry his phone inside a plastic bag to keep it safe in the pummeling seasonal rains but that they also had to hang their belongings on the wall in part because of a lack of floor space and to protect them from the monsoon water and raw sewage that sometimes got tracked inside.

He took some 800 photographs of the salesman and his family over about eight hours and later, back at his hotel, dumped them all onto a hard drive for use back inside the corporate mother ship. Maybe the family’s next cellphone, he mused, should have some sort of hook as an accessory so it, like everything else in the home, could be suspended above the floor."

Full story is worth reading.

April 11, 2008

When You Apologize, YOU Apologize Not Dan Garton

I assume you've seen/heard about or maybe have been impacted by the American Airlines fiasco.  Grounding a fleet is a nightmare and I feel for the passengers impacted as well as the employees who are on the front lines getting the brunt of the rage.

You, of course, would expect the airline to be falling all over themselves with apologies, mea culpa, etc, etc. And, for the most part, they are.

Sure enough, after 4 days of this nonsense, the "An Apology From American Airlines" email shows up. The first line was please accept my apology.  Long paragraphs to follow and it was signed "Dan Garton, Executive Vice President, Marketing."  Not Gerard Arpey, the CEO, nope.

Some marketing wonk created this email, scanned in Dan's signature, and used a DNR (Do Not Reply) email for a from address. You'd think there would have been ten seconds of thought to just putting the CEO's name on it. Yeah, I know, it's fluff/automatic anyway, but that's not the point.

Today, a press conference happens and the Chairman/CEO, finally steps up. 

That story, you can read here, shows it took four days for the CEO to step up. He took full responsibility at the press conference, cool, but his name should have been on this email because unless you were in Texas, you didn't really get this story. And if you hit the Google photo search, you won't find (I checked) photos of Gerard Arpey helping customers, personally handing out sandwiches, or whatever to personally try to put his responsibility talk into a walk. His face walking around DFW, American Airlines home base.  It's 3 minutes over to the terminal from the American Airlines HQ. They have a shuttle bus for employees

The lesson for you is clear: Own it. Step up and own it. With the Internet, you can own it loud and clear, get to your customers personally, and simply own it.

You, not Dan Garton.

Take Your Hand OUT of the Sock Drawer

Somebody just sent me video introducing their new company.  They did this using a sock puppet.  Yeah, really. 

Please send this stuff to Michael Arrington as he is the new cheerleader for Sock Puppet Entertainment over at TechCrunch

Video Introduction = good idea

Sock Puppet = cheesy, yesterday, tired not wired, don't do it.

Old School meets WTF Beta

In certain areas, I'm old school and I admit it.  Shocking but let's start from there. 

In the old school land, pre-production(alpha) software was risky buggy and never put on production machines with production data. Only insane geeks trusted this stuff which was designed to smoke test features, etc, etc.  The next level after that was beta.  That only happened after self-hosted, dog food eating, etc, all happened. Lots of people gave up their hard drives for the greater good.  Then, Beta. It was tough to get into Beta programs and you needed to provide feedback or buh bye. 

Today it is WTF.  Beta label means a standard "thanks for the feedback, it is in beta" comment for feedback/bugs/problems.  People are using "beta" photo editing tools on vacation photos, for example, with no thought to the 'tough cookies, it is beta' response when/if the picture(s) go bye bye along with your hard drive.  Big companies, for the most part, still try to do some semblance of bug testing or safety checking before launching 'beta' software.  Google, Microsoft, etc, all have some level of process but, of course, it is still risky.

Little companies (or start-ups) have destroyed the word beta. Beta is now an excuse to get free publicity while being able to avoid both QA and Customer Service teams.  QA becomes the unsuspecting public and customer service is an auto-responder to every email/phone call/fax that simply says; "Thanks for the feedback to our Beta program. Although we can't respond to every item, we're listening so you keep talking.."

Because we've managed to convince every hot shot start-up that the only way to success, happiness, and money is to "get it out there and let's see", we've seriously dropped the quality of products/services flowing today and we've numbed the public to what quality is. 

Generally stuff sucks and people are used to it becomes the prevailing attitude which turns into a vicious cycle of half installed crap still lingering on a machine with an already questionable starting point.

Beta software should be declared beta when it is feature complete, run through serious QA (or closed smoke testing) and generally found not to contain obvious bugs which will likely cause serious system destruction.  Bugs happen. UI problems, yup, those as well. But locking up machines, making a mess of a registry, damaging the hard drive, and causing cancer in rats, should not be happening in a wide scale public beta.

Yeah, I got sucked into putting a "beta" app on my machine and created a nightmare of a mess causing me to basically re-build the machine while on the road.

I know better and probably deserved this up the butt treatment but still, people, B-E-T-A is not a compiled fresh daily, we kill your machine so you don't have to, adventure. 

Rebuilding my machine at 3am using a hotel business center to pull drivers off the net then transfer to my machine, etc, etc, is loads of fun. Trust me, I just finished.

<sigh>  RedEye home tonight.

April 07, 2008

My Favorite Inbound Emails

I love getting these:

 

Hi Rick,

I would like to send you an email in order to close the loop on this one.  We have decided to self-fund our company in the next little while.  The ad revenue has grown to a point that our cost is covered by our revenue.  With other unexpected opportunity on the side such as white labelling our technology, we have sufficient capital to move forward.  However, we should keep in touch.as it is quite possible that we will look for external capital again in a few months to fuel our growth.

 

Local boy doing good. Sweet! Go get em, Allen.

This is Officially Disgusting

 Via the consumerist:

bagelfuls.jpgEver toast, spread cream cheese on, and eat a bagel and be like, damn, this is taking too long? Then Kraft's Bagelfuls, a frozen bagel tube with cream cheese already inside, are for you.

Start-Up Lessons From a Cat Fight

Thanks to Mathew Ingram's post, I found out about the cat fight between Shel Israel and Loren Feldman.  For purposes of disclosure, I know, respect, like, and recommend Shel.  You can read Matthew's post for the gory details but the one line summary is one guy (Loren) dumps 40 gallons of sewage on another guy's (Shel) start-up video work and said guy (Shel) gets mondo-pissed off while said instigator (Loren) exploits other guy's pissedoffness, snags his name in URL land, and really gets going. Yeah, really, it's that simple.

After zipping around the blogworld to review all of this (start with Mathew's post), here are some tips for you:

Pray for this type of noise. I dunno, call me crazy, but if somebody drives tons of traffic to me, I'd be playing the odds that somebody will like my work.

Let the other guy get personal first.  It never fails. Everybody laughs, enjoys, doesn't take anything seriously, unless and until somebody goes personal.  Don't fire off the legal threats, talk about their mother, use racist comments, the "N" word, or do any comparisons to Hitler.  Let the other guy do that stuff and relax while they take the hits.  Easy to agree with me, tough to implement.

Make more fun of yourself than the other guy.  The simple fact is: you know yourself better than the other guy.  If he makes fun of you, make more fun of yourself. Loren is using puppets to parody Shel's interviews. Shel should interview the original sock puppet, sell some ads on the page and enjoy the traffic.

If it isn't on Valleywag, it isn't top of mind.  Everything in life needs some kind of reality check, right?

Stick around, the next target is just around the corner. Unless you have the unfortunate luck of latching onto a true stalker, tough it out, they always move on.

And there are many many variations of YASIP, folks.

Shhh, don't tell em.

April 06, 2008

Your Greatest Enemy - Status Quo

I went to the movies yesterday. Normally, I wouldn't bore you with this stuff, however, here is an observation you should keep in mind as you revel in your "world changing," amazing [fill in the blank].

So, the pace is packed. Lines for the ticket counter is 25+ people deep.  There are 6 ticket vending machines sitting there, happily waiting dispense tickets. Empty. No lines. No people. No usage.

I waited and watched for about 15 minutes. 3 people used the machines.  Nobody came to the slow moving line and suggested they use a machine. People were in line complaining about how slow the line was moving.  People were using credit/debit cards in the line so no excuse there.

As you think you will change people's habits with your stuff; go the movies.

Crunching Demo

A long time ago, I got into a debate with Robert Scoble about the merits of diving into blog conversations  versus hanging out and thinking about a response or post, etc.  I've generally gone with think about it first, blog about it second.  There have been a few exceptions where I've probably done more ready, fire, aim than I should of, but I try.

I've read about the DEMO versus TechCrunch war and the resulting nonsense coming out of some people's mouths.  The DEMO troops aren't pure in all of this either.

So, after sitting on this for a bit and being asked by a few start-ups which conference make sense, etc, I decided to put my thoughts down for your consideration.

First, bravo to Dave Winer for a great post on this topic. Go read it. Especially read the comments from Stuart Alsop at the bottom. One such important gem from Stuart was this:

"We (Alsop Louie Partners) had portfolio companies at both events (Cake Financial at TechCrunch and both Ribbit's Amphibian and Redux at Demo 08), so I got to see how both operated. The difference was that TechCrunch was 'inexpensive,' which meant that the infrastructure didn't work well (demonstrators had to be prepared to demo without the internet and the schedule was managed loosely). Demo was on schedule and the infrastructure worked because they had redundant systems."

Dave's point that "You only get to lose your virginity once, so choose your venue wisely" are wise words indeed.

So, here is my opinion:

Back in the old days, you had to come to the mountain that was PC Labs and give Frank Derfler your due.  It was gruelling process with editors choice and other such awards actually meaning something. It meant something to consumers, drove features, and was fairly straight up.  I may be wrong but Infoworld had an equally impressive method back then. They still have some award stuff floating around.

Times, of course, have changed. There is so much noise and places for people to get information, find out about products, etc, that DEMO and TechCrunch50 are questionable activities in my view.  As networking events, not bad for sure.

As launch platforms? Not in my opinion.

For example. Let's say your name is Dan Latendre and you are the CEO of IGLOO Software. You make corporate social networking software.  Keep in mind that I don't have an investment in this company and haven't, to date, met Dan.  If Dan asked me for a launch place, I would tell him to think about something like Tech Ed as part of the Partner Expo.  Let's assume he doing something cool with Microsoft's Sharepoint product or some other MSFT product.  (I don't know, never met the man).  So, it seems to me that targeting the IT-Pro group who show up at the MSFT event, offering a special deal or whatever, makes a bunch more sense than either DEMO or TC50.  And, yeah, I know there are a billion bloggers writing about DEMO/TC. The point is that the focused bloggers writing up, in my example, Tech Ed, might be more targeted and appropriate for Dan.  I have no idea, this is just an example, to make my point.

I know Jason Calacanis, when he isn't posing with various kids, might slam me for being old school.  That's fine.  I believe the objective is to get to your potential paying customers so I would say to Dan, where do your customers hang out? Go there.  The Web, of course, is the ultimate hangout and I'll bet you getting your friends on Facebook to change their status to checking out so -n- so's new whatever, can have a pretty good impact as well.  Which is, of course, the point.  There are hundreds of options, ideas, places, etc.

Not getting selected by Chris Shipley or the Calacanis/Arrington junta doesn't mean jack.  I view both of those events as just another part of the rubber chicken circuit that have their place.  Neither should die and neither should be pissing on the other.  Having been up close and personal as to the work ethic/effort Chris Shipley puts into DEMO, I'll repeat that foot in mouth comments about conference death attributed to Mike Arrington are, at best, a very lame way to make a business point.

I can tell you that most of the founders that I know who presented loved DEMO.  I've heard complaints from people, as Stuart mentioned, regarding TechCrunch's event but, again, overall, people were satisfied. 

My advice to you is to not get caught up in the ego/emotion of these conferences. Be a careful and calculating business person.  Make the choice based on business objectives and nothing else.  Winer's virginity comment is worth remembering.

[Bonus observation: The Arrington comment is particularly funny to me.  It gets lumped into all the other bombastic comments spewed over the years. Microsoft, years back, called banks dinosaurs, oops, they are still here. Marc Benioff's mouth dumped the dinosaur comment on Microsoft, oops, they aren't going away.  There are probably lots more out there if I spent the time to dig. So, take comfort Chris, you are in good company.]

April 02, 2008

The Great Blog vs. Journalism Debate

In giving a talk today about blogging (which weird since I'm a hack, at best), I got asked a number of questions about things like where lines are drawn, etc, etc.  It was, of course, an area best left to the masters in this space (aka Jeff Jarvis, etc) but I took a shot at some answers.

One item was the notion of research.  The question from the student was how much responsibility does a blogger have with respect to 'facts' or being complete with whatever they were writing about.  This was math major, just so you know.

I said that I believe a blogger, in general, is starting/maintaining conversations so I'd expect, personally, no more or less than what I'd get in social setting.  Unless somebody specifically calls themselves out as an expect and is doing a blog dispensing advice, etc, my basic rule was good enough for me.

The helpful example I used was Cory Doctorow, commander in chief of Boing Boing.  (co-commander to be precise)

Today, Cory wrote about Fuji and this new high end camera which has a goofy EULA around it.

"Edie sez, "I'm in the market for a digital SLR, and found something rather disturbing. B&H Photo says that to purchase a Fujifilm IS-1 camera, you must fill out an end user license agreement. Even weirder is the EULA itself: It asks what 'legitimate business purpose' (their words, not mine) the camera will be put to."

The EULA is a bit weird, for sure.  And, there are a bunch of comments going all over the place; everything from 9/11 stuff to secret hacks on other cameras.

It turns out that this camera is special purpose camera for Military, Police and other uses. They, for whatever reason, have paperwork they want filled out before you buy the camera.

The camera and the silly EULA wasn't my point.  I made the observation that "News" or whatever non-blog stuff is called these days might have reported the same item but I'm pretty sure they would have given you context for the EULA. They would have mentioned the special use or quoted from the press release, etc.  Cory didn't do any of that and, in my opinion, shouldn't have to.  When I read stuff like this, it is no different then being with a group of friends with somebody saying "did you hear about" whatever. Then, like in the comment section, a discussion will happen and probably go off-topic.  Again, just like real conversations with your friends, etc.

People seemed to like that explanation and one person thought I should share this with my readers (yeah, you two over in the corner).  So, here you go.

University talks are always great and I appreciate the invite.

Careers vs. an Espresso Bar

Jenny is a wonderful young lady I've linked to before.  She is bright, articulate, a hard worker, and all around nice person.  That's the good news.

The bad news is she has this pesky habit of making big shots, suits, and general management very uncomfortable with her silly requests.

Lately wants feedback on when she is doing a bad job, wants goals to exceed only to have expectations set higher and, most ridiculous of all, this young whipper snapper wants to be (wait for it) pushed to go beyond her skills.  Lord, youth these days.

Her full post is here but rather then maximize the team, get people kicking butt in your start-up and listening to these types of silly ideas, just buy an espresso machine and hang out in your office.  It will all work out.  Really.

October 2008

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