How Do You Teach High-Tech Entrepreneurship according to Randy Komisar

It’s the 4th time in a few days that I show the video below to people. It is rather old (dated 2004) and it is just great. A sentence I remember from the first day I watched it is the following: “I think there’s stuff you can’t possibly learn in school and I’m not even sure you can learn that on the job. There’s an entrepreneurial character. Some people have it and some people don’t. Some people may not think they have it, and they may have it. A lot of people they think they have it, and many don’t.” Here is the video and then the full transcript…

I think what can be taught, by and large, is a set of very basic skills about the various domains required for startup to succeed: finance, organizations, transactions, strategy, business models. You can get an exposure to that which can raise your entrepreneur IQ a hundred points. Because starting without that context, it could be awfully hard to understand what’s happening around you as you work in these environments let alone try to do it. I also think you can get exposure to the personality and character of entrepreneurship through the case study method in particular. You can begin to see the tortured lives that many entrepreneurs have to live in order to pursue their dreams. And you can get a sense of how that relates to your abilities to cope and to make tradeoffs in your life.

I think there’s stuff you can’t possibly learn in school and I’m not even sure you can learn that on the job. There’s an entrepreneurial character. Some people have it and some people don’t. Some people may not think they have it, and they may have it. A lot of people they think they have it, and many don’t. The entrepreneurial character is very, very comfortable with uncertainty and ambiguity. That entrepreneur character is very capable of understanding and targeting opportunities that others don’t see and is tenacious about their pursuit. At the same time, they remain permeable to know ideas and to course corrections from feedback from the market and from people who might have more experience or more insights than they’ve got. There’s a personality that works in this environment. And there’s a personality that I think is uncomfortable. And I try to explain this in particular in the classes that I teach. There is a badge of courage in being an entrepreneur. I mean, we sort of, you know, if you read the press and you read the local technology rags you know there is a real sense that entrepreneurs are a special super breed. They’re different. They create a lot of value. I love working with them.

But if you’re not an entrepreneur that’s OK too. There’s lots of other value to be created. There’s lots of other things to be “attacked” in the market place that maybe more appropriate. So I think you can learn a lot. And I think you can accelerate your ability to learn more by building a context. But I think ultimately you got to ask yourself a hard question. Am I suited for the uncertainties and ambiguities, the ups and downs, and the risks of being an entrepreneur, or am I not?

Facts, Truth, Courage…

The word Start-up is controversial. Money, business are often the synonymous and at the time of the Paradise Papers, they do not have good press, with reason! I sometimes had to “defend” and I would still defend a world that is important … And more widely, I believe, we must fight to defend the importance of facts and a “dirty word”, truth, with courage. In a world where communication is confused with information (already at the beginning of the 20th century, Schumpeter explained that capitalism could not exist without marketing and advertising) it is important that the voices defending the facts, truth with courage be heard. For this reason, I have sometimes come out of the strict framework of technology, innovation and high-tech entrepreneurship to mention intellectuals who seem important to me. Harari, Piketty, Fleury, Stieger, Picq.

A long introduction to mention a beautiful interview of Pascal Picq on France Inter this morning: “We must deconstruct male domination in Hollywood as elsewhere.” The link to the site in French is here. A brief excerpt: “Note: the bonobos, who are close to us, have not evolved like us. Homo sapiens is one of the most violent species towards its females, so women. The degrees of this violence vary according to time and culture. The dominant status is exercised with regard to Nature on the one hand, and women on the other hand. The behaviors of male dominance that are rooted in our human societies are the result of a behavioral evolution, and not of a natural and genetic determinism. In the bonobos, the female is dominant, the violence of the relations is mastered by the hedonic relations, and the bonobos live according to a model of gynocracy. The bonobos and the men did not have the same behavioral evolution. And I say that we can not blame our nature, as some do, in the principles of male dominance that have been imposed on humans. It is a behavioral evolution that has become embedded in agricultural societies and industrial societies. Historically, where foods or things are produced, men tend to take control of production and reproduction.”

I should have added that this interview is related to the Oscar granted last night to Agnès Varda for her career and coincidence or not, my previous article in French only – If you do not love me, I can tell you that I do not love you either – dealt with Sandrine Bonnaire, the actress of Agnes Varda in the magnificent Vagabond.

In all disciplines, scientific or not, complexity makes it difficult sometimes, not to say often, to assert truths. They seem sometime to be moving. But there are facts that one must always analyze as honestly as possible with courage and then we can come out with truths. Thanks to these intellectuals who work without dogma and help us understand the world.

And to finish on a “lighter” touch, here are two works by Obey whose artistic fight is magnificent!

Do Ex-Startup Founders Make The Best Venture Capitalists? (Part 2)

Yesterday, in Do Ex-Startup Founders Make The Best Venture Capitalists? I mentioned CB Insights analysis about the background of the top VCs, and expressed my doubts about comparing founders vs. non founders. So I used the Top100 list and had a different look: what about the background in high-tech or not? Here are some charts. Quick and dirty so do not take it as a scientific analysis. Still…

First a point of caution. This list is a little strange and the authors know better than me, but I am sure this list is not highly subjective… Now it seems founders were never a majority and VCs with no high-tech experience always a majority. Now what is puzzling is that these VCs are rather young and that a high majority of them having been in the business for less the 20 years… interesting. What would have been the results of the VCs active in the 70s and 80s? Not sure…

Also the change in the last 15 years is not the ratio with a tech background, but the ones who are founders has increased and the ones with no tech background has decreased…

Do Ex-Startup Founders Make The Best Venture Capitalists?

Interesting question as I have often claimed that there was a difference between US and European venture capitalist (VC), which had been also illustrated in the past by Tim Cruttenden (see below).

CB Insights, a leading firm analyzing data about start-ups, looked at the experience of VCs: Do Ex-Startup Founders Make The Best Venture Capitalists? The next figure illustrates their results and they additionally claim: “Of the 100 VCs, 38 founded or co-founded a company before becoming venture investors, while 62 did not. Six of CB Insights’ top 10 investors haven’t founded a company. That includes the top two: Benchmark’s Bill Gurley and the recently retired Chris Sacca.”

However interesting, I would have preferred a different analysis: how many had a direct experience in technology firms, whether in product / technology development or on the business sides such as sales or marketing compared to teh ones who were “only” consultants or bankers. This would be highly important as the value you bring t the board level may be entirely different. Look at what Tim Cruttenden explained in 2006.

Indeed Cruttenden says “entrepreneurs” too, but if we remember that Kleiner Perkins and Sequoia had a lot of managers more than entrepreneurs then, we might have obtained another measure of what makes a good VC…

Silicon Valley, 20 years ago

Twenty years ago, I entered the VC and startup world. What an anniversary! It was fun and exciting. I would have forgotten it if I did not have a lunch two days ago with people from Logitech. When we talked about Logitech offices in Silicon Valley, I told them I had a document from Businessweek which showed that Logitech was considered as Stanford’s Progeny.

I had to find that document and it was fascinating to go through this 50+ page special issue of Businessweek dated August 18, 1997 and entitled: Silicon Valley, The People, the Deals, the Culture, The Future – How it really works. So let me go through it again.

First the cover. This is a nice little quizz. How many people do you recognize? The answer is at the end of the post.

Second, the table of content. It could be the same today. So things have not changed so much. For example, the migrant factor; the craziness of the area, because of cost, stress; and the invisibility of women, this “subtle sexism every day”.

Third, the recurrent question of why the efforts to duplicate Silicon Valley have all failed…

There are the classical arguments: local governments offer tax incentives or small investments but have no hand in inventing or commercializing technology. And there is an interesting piece: Even private efforts to clone the Valley have fallen flat. Terman, the father of Silicon Valley, was hired in the 1960s to recreate the magic in New Jersey and Texas. He focused on establishing strong research institutions, like Stanford, that could provide a petri dish for bright ideas. But Terman was hired by large organizations, including Bell Labs and Texas Instruments Inc., and few company men were willing to chance a startup. ‘He failed, in part, because he overestimated the importance of academia and in part because he was hired by large companies with no entrepreneurial traditions.’

Finally, what are the lessons learnt? Well known and still valid today…

If you want the pdf, just ask me. This would be a private gift. Whereas putting the full document onlien would be copyrigth infrigement…

Answer to the quizz: A dozen of the Valley’s brightest stars: (top row, left to right) Larry Ellison, Oracle; Marc Andreessen, Netscape; Andy Grove, Intel; Al Shugart, Seagate Technology; Gordon Moore, Intel; John Chambers, Cisco Systems (bottom row, left to right) Steve Jobs, Apple Computer, Pixar; Scott McNealy, Sun Microsystems; John Doerr, Kleiner Perkins Caufield & Byers; Larry Sonsini, Wilson Sonsini Goodrich & Rosati; Lew Platt, Hewlett-Packard; Jim Clark, Netscape.

The top US and European (former) start-ups in 2017

Since I published my book in 2007, I have regularly been doing the exercise of comparing the largest US (former) start-ups and their European counterparts. You can look at my data in 2016 in The top US and European (former) start-ups in 2016. Here are my update lists:

Things have not changed that much. Yahoo is out. Rovio is in…

Is Switzerland a Startup Nation?

This is the question I was asked to answer at the EPFL Forum today. Well it was even “Is Switzerland the Startup Nation?” I did not answer the question but tried to provide food for thought and I invite you to look at the slides below.

Now that you may have read them, I will add two points I did not mention in my talk:

First Swiss newspaper Le Temps analyzed the issue: Are we, too, a start-up nation from the point of view of the Israelis? ‘I have a message for Switzerland, Dov Moran announces: you do not have enemies and so you do not have to spend 20% of your GDP on your protection. If you’re less entrepreneurial than us, it’s not that bad.’

Then again Orson Welles about creativity and war… “In Italy, for thirty years under the Borgias, they had warfare, terror, murder and bloodshed, but they produced Michelangelo, Leonardo da Vinci and the Renaissance. In Switzerland, they had brotherly love, they had five hundred years of democracy and peace – and what did that produce? The cuckoo clock.” in The Third Man, said by Holly Martins to Harry Lime…

Just food for thought.

Rovio (Angry Birds) is going public

Rovio, the Finnish start-up creator of the famous Angry Birds game, will fly to the Helsinki Stock Exchange next week. Apparently it should be a success as the offer is oversubscribed and has just been closed despite the recent challenges the start-up had to face, as the next figure shows.

I will not comment more but just add my usual capitalization table.

Hopeful Monsters

‘What are hopeful monsters?’ I said ‘They are things born perhaps slightly before their time; when it’s not known if the environment is quite ready for them.’
Hopeful Monsters, by Nicholas Mosley [P. 71]

Hopeful Monsters could have been startups, but it is a novel, a marvelous novel written in 1990 and that I am reading again these days. I had read it in another century, when there were only books in paper and independent bookstores still existed. I had bought it in the late Black Oak Books in Berkeley, California.

Bruno held out his hands to the flames and talked to them in an unintelligible language. Minna said ‘What do you say to the fire?’
Bruno said ‘I say “Come on up! Do as I say or I’ll punish you!” ’
Minna said ‘And does it?’
Bruno said ‘If it wants to.’

The first 3 chpaters begin this way:
Chapter I – if we are to survive in the environment we have made for ourselves, may we have to be monstrous enough to greet our predicament?
Chapter II – if we are talking about an environment in which the acceptance of paradoxes might breed, then this can happen in an English hot-house, I suppose, as well as in a melting-pot of Berlin streets.
Chapter III – if, for the sake of change, old ground has to be broken up, one or two seeds lie secret – what terrible opportunities there were during those years!

I had never read a novel which mixes philosophy and science with beautiful story-telling. Not an easy read. Not sure it is a masterpiece either, though…

“Don’t f**k it up” – Advice to founders

I should not like “Don’t f**k it up”. Just because I am not a big fan of “how to” books in high-tech entrepreneurship. There is another reason why I should not like, i.e. the subtitle: “How Founders and Their Successors Can Avoid the Clichés That Inhibit Growth”. Usually I think foudners should not have successors. But I did not hate les Trachtman’s book at all. The reason is Les gives good advice to founders, the main one being “Trust and Empower”.

Let me give you examples:

I know that every founder believes his company is special, exceedingly complex, and unique. I can assure you that the challenges confronting you are just not that different. Ninety-five percent of your problems are shared by other founders, which is good news because it means your problems are solvable. They’ve been seen and handled many times before—all that is required is the smarts and the courage to address them. [Page 2]

“Employees who are taught to mistrust their own instincts are not very likely to trust their colleagues’ instincts, either.” Fear of failure can easily poison a company culture. Team-building efforts are useless when everyone’s first imperative is CYA — cover your ass. [Page 12]

The process of building a team is not that different from raising a healthy, self-sufficient child. […] You want them to learn from their mistakes and the
resulting painful consequences.
[Pages 15-16]

Micromanaging can often be an excuse for not developing and committing to mid-range and long-range goals. It can also serve as an excuse, changing your mind about what’s most important from one day to the next. A lot of founders run small companies that way, and they never scale those companies because it’s impossible to run a larger company on the basis of what the founder is feeling that particular day. [Page 20]

and his advice to foudners is to give more and moe importance to strategy by [Pages 31-33]:
1. Track your time.
2. Decide what not to work on, and stick to it.
3. Plan for the unexpected.
4. Write down your goals and revisit them quarterly.

More in another post…