Category: Startups

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Aesthetics Startups

Day 714 and Cosmetic Organization

I used to be the CEO of a cosmetics company called Stowaway. We were a direct to consumer brand that manufactured and retailed our own line of travel sized makeup. Alas I got too sick to work and we sold the company to a private equity holding firm who shuttered it during the pandemic. I’m “shocked” that travel sized red lipstick wasn’t popular during two years of masking and lockdown.

I don’t particularly want to work in cosmetics again, even though I have arguably priceless experience that could be put to good use helping other brands. Startups are are traumatic and it’s not unusual for founders to find it challenging to work in spaces they know well. You don’t want to undermine the enthusiasm of founders. Also you’ve probably taken enough risks for a lifetime in a given space to never want to touch it again even if you made money.

But I do still enjoy being a consumer of cosmetics. I’ve got what might be the most comprehensive library of travel sized makeup in existence. I moved all of it up to Montana this year where it lives in a modestly organized vanity. For some reason I decided do a little reorganization of it today.

A very messy cosmetics vanity littered with makeup bags, travel sized packaging and a Sephora advent calendar.

Instead of finding a new schema for where I plan to keep all my products, I made it much worse. I let myself get a little bit of tunnel vision and instead of playing around for half an hour I spent an ungodly amount of time making it much worse. I’ve got drawers that are bursting with tiny mascaras, tiny lipsticks, tiny eye shadow palettes and thousands of other items.

I was surprised to find myself enjoying it. I did some comparisons of packaging and formulations and found that I was still quite pleased with what we had built. Many new brands have emerged since then but the promise of a minimalist purse friendly brand remains elusive. I see all the ways I failed but I also saw all the ways in which our team succeeded. And it was nice to feel like perhaps I’d learned something. But now I’ve got to clean it all up before my husband steps on an eyeliner.

Categories
Startups

Day 710 and Holiday Work

Working on a Wednesday is expected. Working on a Sunday is a transgression. And like all modern transgressions, working when you aren’t supposed to be working is now a desirable thing. When work becomes a rebellion, strange things happen to your life. I think magic happens.

I’ve excited for the dead time that the end of the year brings for work. Because it’s secretly one of the best times to get shit done. I am never more productive than when I’m expected to be at rest.

In America, there is an expectation that we take some of the time off between Christmas and New Year. But the time off grows and suddenly no one is expected to get anything done for two whole weeks. And then it’s just a mess of resentment where we are at work but not getting much out the door. It’s such a waste. But as soon as people are actually off the clock. That’s when the entire energy of the situation changed.

When everyone is out of the office, is the best times of the year to sprint ahead. Maybe it’s that when people are off work officially they are more receptive to new ideas. They are less on the clock and can take more chances. It seems fun to check your email after too many hours with family where no one shares your interests.

But trust me people are looking for an excuse to do deals when it’s taboo to be working. It’s as tantalizing as getting a message from someone you want to bone. Look at you doing this thing that is a little bit naughty. What a secret you have getting work done when social convention demands we be with family.

So if you get an email from me during the holiday season know it’s because I’m having a blast. You might enjoy responding. Who knows what kind of cool deals we get done when no one else is hustling.

Categories
Medical Startups

Day 696 and Edge

I’m enjoying a migraine this weekend that was both strong and as of yet unbeaten. Perhaps I overdid things on Thanksgiving and Black Friday. But I’ve been stuck in bed in a dark room for the last 48 hours or so.

While this sounds a bit miserable, I can assure you it is also part of my edge. When my physical works shrinks my cognitive capacity unfurls. I very much liken it to the traditional super hero dilemma of being gifted with something that makes living a normal life a challenge.

I may be stuck inside struggling with light, noise and smell but I can still do most of my core deep work. I can’t take calls or go to meetings but I can be on my phone and my Kindle. I can intake information and I can synthesize that information when I’m in darkness.

And that is 90% of my job. Be informed and make the best decision you can. Those decisions are generally done when you are calm and fast. And I get the benefit of being in rest and digest as often as possible as it’s what keeps me alive.

I’ve got a generalized theory related to finding one’s edge. It’s pretty simple. If other people perceive it as a weakness but you understand how to wield it as a strength then your got an edge. People dismiss you sure. But being underestimated is one hell of a way to get on the better end of a trade.

And so while I’m here looking like I might not be worthy because of some set of heuristics that’s have typically worked well for you I’m actually the one that has a leg up on you. You would do well to think about all the ways in which you can leverage talent and insights that trade below their value. You can make a lot of money betting off of truly underestimated viewpoints.

Categories
Startups

Day 692 and Managing Founders

I spent the first decade and a half of my career as a founder. I am very good at certain parts of the job like creating momentum and getting attention. I am less competent at operations and logistics management. Fortunately I’ve always had incredible teams who managed me.

That’s right, I said teams who managed me. One of the dirtiest secrets my husband kept from me is exactly how experienced operators like him manage high octane founders like me.

“ We don’t take an action until the third time an ask is made.”

Alex Miller

Alex has had to manage some of the quirkiest personalities in startup land so he didn’t just develop this strategy with me. He has been using this three asks technique for a while.

Initially I was extremely insulted when he revealed this was standard operating procedure for dealing with founders. How dare he not do what I request. I did a little ego protection. But then I realized he was right. Founders have to be managed carefully.

Momentum machines without any friction can quickly spiral out. Knowing exactly how and when to apply friction is the real trick. Too much and nothing will get built, but too little and your team can’t get a grasp on where to focus.

Many founders are extremely charismatic people. Their entire job is to get you excited about doing the impossible. And because sometimes we discover that the impossible is indeed possible we often wrongly assume if someone tells us “no” we’ve absolutely got to prove them wrong. We are always trying to generate momentum towards what excites us most.

Alex wisely doesn’t ever tell founders no. He actually encourages you to figure out if you really want what you asked for through his three asks technique. He gathers information. He asks what you are really trying to accomplish. He asks about specifics and technicalities and details. He gently coaxes out the underlying reason for an ask. He gathers information better than anyone I’ve ever known.

And what really drives me nuts is that this system works. If through the process of information gathering the founder continues to insist that something should be done Alex will organize all the details he has gathered in diligence. He will present the information and wait for the founder to ask a third time. If that third asks comes, only then with all the information will he organize the executive team together decides to proceed and make sure the founder is ready to accept the plan.

The genius in this method is that founders have an excellent gut sense for direction and momentum. But because it isn’t our jobs to actually make it happen we can often be total idiots about the resources required and the hidden land mines. By managing both the founders desire for an outcome with the realistic needs of the business, you almost always avoid pursuing the bad ideas.

If you work at a startup, especially directly with a founder, I’d strongly advise implementing the three asks method. You won’t go on nearly as many wild goose chases but so long as it’s done with empathy and tact you will still benefit from your founder’s natural momentum.

Categories
Startups

Day 688 and Hardcore

My generation of founders came of age during the peak of hustle porn. We were young and dumb, and even without the use of stimulants and nootropics like our Gen Z younger siblings, we got a lot done. Probably because we were well young and dumb. And it’s easier to do things with brute force when you don’t have better tools. Being hardcore made sense for some of us.

Alas if you burn the candle at both ends you may find yourself with an astonishing array of healthcare issues in your thirties. Which is astonishingly common in my cohort. I’m just one of the rare examples that is public about the dangers of overworking yourself. Hustle porn’s legacy is mixed. We lost founders to workaholism and occasionally much worse. A generation learned that mental and emotional health are just as important as physical health.

Hustle culture coincided with a lot amazing companies getting built but it’s not entirely clear to me if being hardcore is the only factor at play. Tempting as it may be to look for simple mono-causal relationships in life, the math of success is never that simple. Life isn’t an engineering problem. And even if life was an engineering problem, applying more force doesn’t solve all problems. It might even make a few worse.

I don’t want to knock hard work obviously. Im a firm believer that the basics never go out of style. Hard work is a given. Most of the greats are working hard because once you discover you have a natural talent then maturity generally encourages you to hone it.

Success is built from many fathers even if it’s mother is hard work. Proper resourcing, adequate incentives, teamwork and an effective hierarchy of respect within it are all factors. And let us not forget just plain old good luck matter just as much as being hardcore.

So tempting as it may be to give in to Twitter discourse narratives don’t get fooled into thinking someone that is successful has it all figured out. You don’t know what it took to get there and who brought it together. Don’t overweight success on its own. Nothing is ever that simple. Expect that the team you want to be a part of will demand that you demonstrate all of the above virtues and along with the necessities of hard work. But if it all comes together it is worth the sacrifice.

Categories
Finance Startups

Day 687 and Winter

It’s cold out there. And I don’t just mean metaphorically. Winter came early and hard to Montana just as the Farmer’s Almanac predicted it would. Driving back in from town last night after grocery shopping it was -3 degrees on the car’s temperature gauge just after sunset at 6pm.

It’s cold out there in the capital markets too. The federal reserve is raising rates to tamp down on inflation and the cost of capital is hitting the technology industry. Frankly I think we’ve all been waiting for an excuse to cut the fat and now we’ve got it.

But it’s going to have consequences for startups. Founders who have never had to live with the harsh realities of a down market are in for a surprise. Those juicy valuations in the private markets don’t work so well when the public markets can find safer returns in a Treasury finally paying out on a t-bill.

Let me play with a tortured metaphor to help you understand the situation. You think you understand how cold winter will be until you realize you haven’t had to work through a chill for over a decade. Sure maybe in your closet you’ve got a nice coat but when was the last time you wore it? If it was for a ski retreat with one of your venture partners then this metaphor is absolutely about to do double duty.

Surviving a bitter cold isn’t just about having a bulky down coat. Think of that as your cash runway. Without adequately rated cold weather gear to keep you alive you may find yourself tapping out. But it’s not just about the coat.

Keeping warm and staying productive requires some technique. Do you understand how to layer correctly? Do you have hats, gloves and scarves? I bet you walk around with ankle socks and Allbirds. That’s not going to go well in a foot of snow. Do you know how to eat for the cold? How about hydration?

Your team will need more than runway. They are going to need motivation to work with less fuel. You have to show them that the climb up the snowy mountain is worth it.

A winter startup team will need the skills and flexibility to work around problems that can’t be solved with money. Shit can and will go wrong on a long cold climb out of an economic winter. Creativity and belief must overlap with intuition if you want to make it.

And it’s important to remember lot of your team won’t have those intuitions. We’ve all been living in Miami and suddenly it’s -3 in Montana. And guess who gets to teach them how to adapt? You. You need to teach your team gently and with empathy what it will take. And they will makeup mistakes. Have you ever watched someone try to lace up boots for the first time? You might need to help them cinch.

I promise it is worth it though. If you are climbing the right mountain, and prepare adequately for your journey, the rarified air of a successful startup is invigorating. And the view from the top isn’t bad. If you need some help thinking all this through as a founder drop me a line Julie (at) chaotic dot capital and I’m happy offer some Sherpa advice. I lived though 2001 and 2007 (I even got laid off during RIP Good Times) so you can rely on me for some elder millennial wisdom. Stay warm!

Categories
Aesthetics Startups

Day 659 and E-commerce Returns

It’s been a minute since I posted about the mild annoyances of shopping to outfit a new house. Because we have upgraded the amount of space we live in by two or three times and we are hoping to use some of the space for hospitality we’ve bought a lot of shit recently.

I have shopped a large assortment of direct to consumer retail brands. Included in the list is Brooklinen, Havenly, Italic and Merit in the last month or so. And the varied state of quality and service in the venture funded retail space is such a mixed bag. The most pleasant experiences have been from older brands and retailers like Carharrt, Ariat and Sephora.

I would entirely recommend Havenly as an intermediary service for both design and furniture shopping as the returns are relatively simple and they consolidate a ton of retailers into the interface. But they are so good at their jobs you mostly don’t need to return stuff. We bought a cheap fake antler chandelier to see if it could be pulled off (against the advice of the designer) and were promptly told by everyone to return it. Which lets be honest was good advice all around. We did have to dismantle it which I’m told was quite the IKEA style effort.

A fake antler chandelier acquired from Wayfare. It was still $500 so we returned it.

I cannot say I have the same praise for direct to consumer brands that are still attempting to make margins happen in the middle market. I’ve had some amusing fails on that front and it again reminds me of the danger consumers are beginning to feel when they shop brands with less social awareness. This is a real issue for direct to consumer brands as they fight it out with less venture dollars compared to the past. It’s going to hurt their lifetime customer values.

Merit is a much covered cosmetics brand which has some star products I liked (their foundation is terrific) but some really low rent packaging. So I wanted to return a couple items. Merit made returns so challenging I might just eat the cost of half the products that I don’t want to use. Merit’s customer care team literally wanted me to write reviews of each product I wanted to return to begin the process. Damn girl but ain’t nobody has time for that.

An assortment of Merit Cosmetics including foundation, blush, mascara and a brush. I wanted to return about half of them for being a poor value.

Ironically I had already done that on their Yotpo product review prompts a week earlier but didn’t save them (why would I) so when it came time for returns I just said fuck it as I didn’t want to retype my 500 word a piece reviews again just to return the items. It’s been sitting in my inbox for so long I’m afraid they won’t accept it. A huge and amusing fail to integrate basic customer retention tactics and your order options. I expect it will hit their lifetime customer value and require a fix soon. I literally haven’t overcome the inertia just to get my $70 back and perhaps they know that. Which is a dick move.

By far the most clever return mechanic I’ve seen is from Italic. I’ve loved their cashmere and their sheets but some of their other odds and ends were just bad fits. And it turns out they know it. They offered a 50% store credit on an item if I just gave it to a friend. Alas it is a dress that doesn’t work if you have breasts. Which is clearly a challenge to hand off to anyone.

Text messages between Alex and I about returning a dress from Italic that does not fit my upper body

The other irritant that Italic had though is that it shipped in four separate orders and insisted that we ship it back in four separate orders which is wildly wasteful even by e-commerce standards. And it has the unexpected effect of me accidentally returning a pair of cashmere pants I didn’t even try on as I forgot I bought two different cuts and ended up returning both as they came in separate orders over the space of a week. Oops! That’s $150 they won’t get from me. I frantically texted my Alex asking if he had them still but nope I might try to rebuy them but now I don’t trust I’ll be able to even figure it out.

Shopping is going to get extremely weird over this holiday season as brands have significant depths to overcome come past supply chain issues. But as the economy struggles with inflation I’d expect to see more tricks like Merit on the negative end and clever loyalty gambits like Italic on the positive. So keep that in mind as Black Friday approaches.

Categories
Emotional Work Startups

Day 655 and Accountability

Being accountable to myself is much harder than being accountable to someone else. I suspect this is true for most people. We all wish for ideal childhoods with parents who provided for all our emotional needs. And so we look to bosses, spouses and authority figures as substitute parents.

Most of our adult lives are spent trying to find some ideal mommy or daddy to soften the trauma and lack of our childhoods. We remember these issues far too vividly as adults through the perceptions of our inner child. It is a huge challenge to recognize that feelings are not facts but these feelings nevertheless run our lives.

The unfortunate truth is that the only ideal parent that can ever exist for our inner child is ourselves. We must comfort, protect and nurture that part of ourselves that still feels lacking because no one else can give it to us. No one is coming to save us. We are the parent to our inner child.

Which brings me back to my challenge with being accountable to myself. I struggle to care for myself the way I need as I too often perceive myself as not being good enough. If I just worked harder or spent more time preparing or if I just did one more pass on my pitch deck. You get the idea. I’ll push myself right over the edge of success into inaction and self torture.

One way I’ve been able to overcome this need to push myself into a fantasy of accountability is simply by building in public. If I’ve said what I plan to do then I’m no longer just cultivating it inside myself but I’ve let the idea come forth into reality. Once it is outside of my own tortured bubble of personal accountability it can gain momentum.

I am raising money for a venture fund and now that I’ve put that in public it’s not just about me. It’s about the thesis, the LPs, the founders, and the market. And it’s much easier to be accountable to a shared reality with other people than some fantasy version of perfection inside my head. If you’d like to be a part of it and are an accredited investor here is a link to my calendar. If you’d like to read more about the fund I’d be thrilled.

Categories
Finance Startups

Day 649 and Build in Public

People love building in public. The universe loves a specific ask. Today for my 39th birthday, I am doing both.

I would like to raise $5m for chaotic.capital’s rolling fund before I turn 40 next year. #5Before40 has a nice ring as a hashtag right?

Chaotic is the first check into founders and companies that adapt humanity to complexity. Personal flexibility, organizational agility, and societal sustainability.

Our founders capitalize on chaos.

You may have noticed I’m a bit of a doomer. I keep close tabs on the opportunities presented by an increasingly unstable world.

Climate change, distrust of institutions, geopolitical unrest, resource scarcity, rising tides of populism. There are founders who can help us address and survive these pressing issues.

My goal is to raise $500K per quarter via a rolling fund. There is 155K per quarter committed from folk like Joel Spolsky of Stack Overflow and Michael Pryor of Trello so you will be in good company.

With a base like that, I want to do the rest in public here on the blog and Twitter. You can read the fund overview here. Building in public has generally been my preference and it has felt weird doing any of this fund work quietly behind the scenes.

You can sign up on Angellist through the above link or get on a call with me and we can discuss the fund, our portfolio construction and my thesis.

I’ve got big ambitions for accelerating into maturity as I have no intention of letting entropy win.

Humanity deserves progress, and I demand growth for myself. I’d like to make us both money with that. 

______________________

FAQ TIMES

Haven’t you been investing through chaotic before? 

Yes but just with personal capital and an SPV. I want to scale it up as we believe our performance warrants it.

Go check out some of our best investments here. https://chaotic.capital/fund-overview

______________________

Why didn’t you raise more during good times? Why the fuck are you raising a rolling fund at the end of the world?

Did you miss the part where I am a Doomer? We are a bad times fund. This moment is where our thesis matters.

Good times return and you’ll appreciate having written a hedge check or two into weird companies that are designed for the power laws of institutional chaos.

Or if the fear of the moment feels overwhelming you can sit back and die the slow death of uncertainty. Trust me I’ve considered it as well.

But personally, I’d write me $10,000 check and come along for the climb back. Entropy only wins if we don’t fight back.

Categories
Startups

Day 645 and Progress

I was recounting a few pieces of work that have been ongoing to some family last night. Both items were the result of choices and trends I’d been following and cultivating for well over two years. One of the items was even set to debut next week. I had some demonstrable proof points that I was right and right long before anyone else took any notice.

I was extremely pleased to recount the long arc of work that had gone into these trend lines and how they were manifesting in successful investments and media attention now.

Usually when someone asks me what I do I have a tendency to stumble around a few more or less goofy bits. I am retired from working in propaganda. I am a house wife that manages the family budget (this works only with stay at home mom or high net work wealth managers). If I’m feeling chatty I explain the Thursday Styles Problem. If I’m not feeling chatty I’ll just say I’m an investor. Occasionally I will make an attempt to explain the founder to angel investor to venture capitalist career arc.

It’s not actually that easy explaining work that involves years of waiting. If you work for an established name brand venture capital firm it’s probably easier than being an angel investor with a small syndicate or seed fund. But even if you are Sequoia it still takes a decade on average to prove out your bets.

I’m thrilled to have concrete examples to point with any of my investment thesis points. I’m lucky that I have exposure to media so I occasionally get the chance to share what I work on online and in print. Not everyone has the skills to be as visible as I am. But it sure felt great to make some progress. And yes I promise I’ll share publicly when I can.