Tag: Finance

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Finance Startups

Day 275 and Manifesting

I had a really terrific September. Everything just started going my way. Projects that I’d been pushing on had significant breakthroughs. My deals got hot. My focus and health improved. Even when I had setbacks and failures I was able to execute on quick recoveries. But mostly I didn’t give in to past bad habits. And all of that happened without any additional effort on my part.

I’ve been making a really conscious effort to stop pushing myself to always be doing more. Either I am able to find elegant solutions or I ask myself to take a step back till I can. Rather than brute forcing everything I am finding ways get where I am going without sacrificing myself to costly bad trades on my time and energy.

I asked for something really significant from one of my investments (an additional allocation for an special purpose vehicle). The second I asked for it I started to panic. I didn’t have an immediate or simple path to deliver on what I asked for from this founder. Even though I was confident I had the money for the deal it out I panicked that maybe I had bitten off more than I could chew. Immediately it started going through my head about how bad I’d feel if failed this founder. I relived the guilt, shame and punishment I had felt in previous failures to deliver for people that trusted me. I hated feeling like I’d failed people.

And I just decided stopped the cycle of worry then. Like turning off a switch. I told myself I could do it, I knew I could do it or I wouldn’t have asked, and that there was simply no way I was going to let down this founder. But this is where I felt the frown Instead of going into overdrive, I stuck by my schedule. I didn’t change anything. I didn’t push myself to a frenzy by adding in calls, pitches & emails. I just put down all the steps I could and would take to make the deal available to the right people and I began.

In the past I would have let that fear drive me. I would have gone into overwork and adding in additional tactics that I didn’t even need to insure I would reach my goal. But here I trusted myself to get the outcome. I didn’t exhaust myself. I took care of myself. And the allocation got filled quickly. I checked the commitments this morning and I’ve only got 15% of the deal left.

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Finance Startups

Day 270 and The Circle of Capital

Capital has evolved a lot in my life. The dynamics have changed so much in the 30 years I’ve been ambiently around venture it’s barely the same business. And yes I mean since I was a kid. The apocryphal family history is that I was born on the poor side of Silicon Valley while my unemployed father was working on pitch deck for education software. Yeah it’s a shitty origin story but it’s mine.

Back then you sold your entire life to some dudes for half a million bucks and gave up a lot of control. It wasn’t really collaborative but it was worth it to create the future. Back then your VCs controlled a lot more than they do now for capital they deployed. Flexibility and collaboration wasn’t really considered necessary. Your VCs actually controlled when you got fired (another childhood memory was a “take your daughter to work day” where a CEO got fired), when you could raise again, if and when you could sell your company, and honestly I wouldn’t be shocked if they had some Rumplestiltskin provisions too. That’s just where the market was at the time.

As it has become clear that non-linear returns come from creative founders and new markets, the structures of capital deployment have changed a lot. Capital cares about helping operators create because creation simply has more value than it did in the past. Venture capital isn’t old dudes optimizing for control and margin anymore (even if sometimes that might be a good idea) because that’s just not what makes money anymore.

Heck it has changed a lot in just half a decade. The last time I raised venture for my own startup, we actually priced the round (no uncapped SAFEs), we had a board from day one, and we were allowed to overshoot our valuation and capital goals by a whopping 300K. I was sure we’d reached the height of founder leverage at the time. Heck I felt certain we’d raised a small fortune on favorable & flexible terms. Six years later that would be considered a charmingly small pre-seed round with very onerous terms. Time marches on! And rightly so. Markets adapt to the needs of the participants and the returns they deliver. If it wasn’t profitable it wouldn’t be so.

This is all a long winded way of saying that I am continuing the circle of life. I’ve got my own venture fund Chaotic Capital with Alex Miller and Jacob Brody. It doesn’t look anything like the funds of my childhood or even the seed stage funds of the last decade. Probably because we as founders and operators lived through the hard lessons of venture in multiple cycles and took a lot of lessons with us. Capital isn’t about control. It’s about collaboration now. Capital starts early. Capital is flexible to generate returns But we also aren’t n00bs.

Rather than spend a year raising in silence and announcing it once it’s all said and done we are building a rolling fund. That structure works for us and my general affinity for building in public. It signals founders we are building like them (even as our other constituents see it as being responsive to the demands of the market). The rolling fund is a kind of flexibility to build at the speed of the market while also understanding that the give and take of responsible deployment must also work at the pace of founders.

While we work on forming our proper fund, we’ve created an AngelList Syndicate for chaotic where we’ll be creating SPVs for our current deals (we already have our first two which feels crazy to me) as well as follow-on deals once the fund is created. If you’re an accredited investor and interested in joining our deals, head on over. Isn’t it cool how these structures morph and change over time? I guess having a couple decades of being an operator has some benefits. You’ve seen what works and hopefully have some capacity to change what needs to be changed.

Our LPs and co-investors are mostly our friends and former colleagues who have spent years working with us at companies as varied and diverse as Stack Overflow, Trello, Easypost, Triplelift, Goop, PopSugar and over 40 different angel investments. Alex Miller, Jacob Brody and I have invested over 4m over the years which seems sort of astonishing.

While we work on forming our proper fund, we’ve created an AngelList Syndicate for chaotic where we’ll be creating SPVs for our current deals (we already have our first two!) as well as follow-on deals once the fund is created. If you’re an accredited investor and interested in joining our deals, head on over.

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Aesthetics Internet Culture Media

Day 251 or NYFW SS08

Today is Star Trek day. The original series debuted 55 years ago. I was searching for a photo of myself as a child wearing a captain’s uniform to commemorate it and instead stumbled upon a file containing my old WordPress blog. So rather than find an adorable picture of me in a red jumpsuit I found this picture from September 10th 2007 waiting for the Marc Jacob’s fashion show.

Several invitations to Marc Jacob’s fashion show for his spring 2008 collection seen from above. A blackberry, an iPhone & a recorder are scattered between wine glasses, a carton of cigarettes and two arms.

I used to be a fashion blogger you see. I have a few dubious CV distinctions, one of which is being the first person to live blog fashion week (at least according to Women’s Wear Daily). In the late aughts just before the Great Recession, it was a hell of a time to work in fashion and I wanted in. Being utterly unqualified I did what any kid would do and started a new media company. It went pretty well, we turned it into an ad tech company, sold it, and survived “RIP good times” but before all of that I partied professionally. A lot of business in fashion used to get done over drinks in fancy hotel lobbies while we all clutched our Blackberries.

This particular photo represents a time when Condé Nast still mattered. I was at the Mercer Hotel with my friend Lauren Goldstein Crowe (also apparently economic writer Felix Solomon). My friend Lauren was the newly installed fashion columnist for the new glossy magazine about money called Portfolio Magazine. We were killing time in the then trendy Soho hotel before the always reliably two hours late Marc Jacob’s show.

I don’t actually remember if I legitimately had an invitation or if I snuck in with Lauren that season. Back in 2007, if you can believe it, social media was considered very uncouth and no one has begun writing “bloggers are taking over the front row” thought pieces yet. Could have gone either way.

Portfolio was the last hurrah of the print behemoths, a glossy magazine dedicated to the culture of finance, so naturally I was appreciative that I could tag along with my much better financed friend. Condé Nast reported spent 100m on the magazine and I appreciate that some small portion of that went to drinks before the fashion of the season. Lauren is an especially erudite editor, of the sort who writes deeply studied long form work, so the fact that Condé Nast was paying to send her to fashion week was pretty decadent. She wasn’t a mid tier market editor who needed to see the clothes. She covers culture so the entire milieu was her domain. The gossip before the shows absolutely counted.

Of course, the business of media couldn’t support that sort of thing forever with changing advertising models and Condé Nast didn’t really keep up with the times. It’s a real loss. People like me ended up winning and it’s been perhaps a net loss for some things that were valuable cultural artifacts.

I spent no more than a couple grand getting our rinky dink operation up and running. We still managed to publish faster than anyone else. I had several meltdowns in service of that effort. In hindsight it was probably a waste but it felt so very new and urgent to be publishing things at the very second a look went down the runway. Now fashion week is an exercise in instant publishing and live-streaming everything from a million perspectives. But the actual studied writers don’t get expense accounts and drivers and corporate Blackberries anymore. If they are lucky maybe they have a blog with a subscription. Lauren knew it even then. She and I slowly occupied the same basic space in the ecosystem. She was just 15 years ahead of seeing it.

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Internet Culture Reading

Day 244 and Crypto Fiction

Science fiction has often been the proving ground for reality. Without Star Trek I doubt I’d be typing this out on my own personal tricorder (mine is called an iPhone). Imagination begets reality. Much of the internet was charted in the genre of cyberpunk long before the rest of us got online.

I think we are entering a new phase with crypto and I’d like to compile a list of foundational texts that have given us the imaginative framework for concepts like the metaverse, DAOs, and smart contracts. I believe this to be a distinct genre from cyberpunk even though classics like Snowcrash transcend both genres.

For instance I don’t think Neuromancer is a crypto novel even though it is an internet novel. I’ll have to work through my logic and categorization on that front but my instinct is that novels that explore networking and computing are not in and of themselves crypto novels. They have to include some aspect of decentralization to qualify. Further aspects like self executing logic for corporations, societal organization, peer to peer and permission-less code and other similar themes I think all fall under decentralization.

Snowcrash by Neal Stephenson – the original metaverse novel. Hiro Protagonist literally inspired Stack’s Hiro. Full disclosure my husband is the COO. Ironically he has not read the book.

Rainbow’s End by Vernor Vinge – what is basically boomer has to adjust to economic life that is organized around what are functionally DAOs with the help of his granddaughter. This grossly oversimplified plot shouldn’t be used to judge the book which is actually a singularity story.

Daemon & Freedom by Daniel Suarez – the predictive text finisher for Gmail takes over the planet by creating a smart contract. If you ever wondered what would happen if what if Grammarly becomes Putin this is for you. But I do think it is an excellent exploration of how DAO (decentralized autonomous organizations) could replace the corporation.

Attack Surface by Cory Doctorow – you could include any of the books in his Homeland universe but this one pushes home a bit harder how centralized services destroy privacy which is core to why we need peer to peer permission-less systems.

Analog by Elliot Pepper – While it is technically a thriller trilogy there is an augmented persistent metaverse that is run by an organization that transcends the corporation to be something much more. Plus it has lobbyists, self destructive energy billionaire and engineer heroes.

Acellerando by Charles Stross – it starts in the home of the corporation Amsterdam and pans out from there to include things that look like smart contracts that are in fact too smart, lobsters, shell corporations, and the eventual end logic and utility issues brought on by the logic of “always be growing.” Also snag Neptune’s Brood which deals with the monetary policy implications of faster than light travel in a galactic civilization that needs slow stores of value. Cold wallets!

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Finance Startups

238 and DAO Ethics

Are smart contracts freeing us from the tyranny of the legal class just to toss us into the maws of the developer class? Sure we think of lawyers as being inherently worse because they are bourgeois and protected by credentialism and regulatory capture.

But as crypto gets more complex and smart contracts involve more intricate provisioning ,will it become just as exclusionary as the ecosystem of white shoe magic circle legalese? It’s getting to be mighty hard to afford Solidity developers!

Sure we tend to think of developers as friendly self trained indie types. Anyone can learn to code! Let us not lean on heavily on the benefits of decentralization as a panacea for human nature. Power aggregates and money likes influence.

When describing the benefits of how DAOs will outflank traditional corporate governance structures we need to look out for how we avoid the self interest of a protected class of Mandarins forming. We need to think ahead on how to keep smart contracts legible. I don’t have any of the answers here. Governance is just barely coalescing in crypto but it’s never to soon to think ahead.

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Internet Culture Startups

237 and Crypto-Optimism

As much as Silicon Valley and startup culture claim a kind of techno-optimism, in the wake of the social media partisanship, science skepticism and climate concerns, it feels hard to really dream big. People say catch phrases like “it’s time to build” but we all understand there are limits to the problems we solve in capitalism’s current markets. And no one believes the government can solve anything.

Any possibility or big dream can be clouded by its politics or cultural baggage if you let it. We yell about cancel culture but it’s really a lack of imagination. A kind of giving in to the boundaries of what is acceptable has captured the moment.

But I’m noticing a genuine mood of possibilities in crypto. A levity that believes in wide open horizons. Instead of the long horizon, crypto sees a bright one.

Maybe it’s because crypto’s proponents genuinely believe it will be possible to toss out legacy systems. Crypto is still so new the disillusionment of compromise to human nature, design dependencies or aggregate power seem far away. The problems that plague ant endeavor haven’t become inevitable. No wonder the mood is ebullient. We are genuinely happy in crypto.

You can imagine a world in which the DAO destroys the corporation. You can imagine a world in which artists are paid directly by patrons in effectively priced markets which respect their ownership. You can imagine expensive and exclusive financial products being automated away so even a small independent entity can access the best without bleeding out through a dozen service fees. Everything could still be a utopia.

And while I know it won’t it feels really great to be optimistic about something.

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Internet Culture

Day 226 and Brain Prostitutes

When you sell your intellect for a living you cannot afford to have a stupid day. When I was younger I sold my time but as I got older I got paid for my ideas. Or as one of my favorite anonymous Twitter accounts Becoming Critter said I’m “a brain prostitute.”

There isn’t a union for idea whores so when your mind has a sick day you are fucked. Not idea fucked, no, because then you’d get paid. If you can’t produce a good idea you’ve got nothing to sell. I personally found this entire concept of knowledge worker as as brain prostitution to be pretty amusing. It kind of takes the wind out of your sails if you’ve decided being a “knowledge worker” makes you better than other types of labor.

We’ve decided that selling your mind is higher status than selling your time but I think it’s all just a a clever way for the capital class to move labor into categories that produce better returns. If someone has found it beneficial to employ you, either for your time or your ideas, it’s because it’s worth more than you are getting paid.

I like that the intelligentsia is lying to themselves about being bourgeois. Doing practical things like running a grocery was beneath them. So they had to invent some exciting distinction that convinced everyone that selling ideas made you a better class of person than selling lettuce. I’m not really sure how Marx would see all of this but it seems like if you aren’t capital then you are still labor.

But I guess now that we’ve got rid of hereditary aristocracy the need for more elaborate distinctions for how we determine our betters is clear. The market demanded a rebrand. Personally I like idea whore better but I can see why we went with knowledge worker.

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Finance

Day 225 & Explaining DAOs to Moms

My mother is a sharp woman. She’s interested in economics but if you asked her to explain securities law she’d probably shrug. Not her expertise. She did survive our family bankruptcy during the tech IPO implosion she’s got a slight intuition of securities law in the context of consumer protection but that’s about it.

So I was impressed that she was able to sum up the recent infrastructure bill’s attempt to make crypto foot the bill very neatly.

“So they are trying to convince us that people who program computers to run math problems are actually bankers?”

That’s…actually not too far off. She seemed to grok that this was a misunderstanding of the basic technology, who builds it and it’s purpose. She was glad the amendment didn’t pass. Clearly people who build computer applications are not the same as the guy at Charles Schwab who looks after her retirement account.

We were discussing it, as I was trying to explaining PR DAO and why I wanted to help organize an activist group of folks whose purpose was execute public relations campaigns to tell stories about crypto. I explained to her that rather than having a bunch of executives who make decisions we would write a set of rules that automatically determine how we make decisions. Those rules would let all members of the organization vote on how we wanted to deploy our assets and pursue our agenda. She liked the tag line “rules not rulers” a lot. She’s pretty into freedom. A smart contract was pretty intuitive to my mom.

Where she got confused was the governance tokens. Not how they worked. Again it was intuitive to her that depending on what you contributed and how invested you were in the organization that you would a different say in what got done. Maybe each token represents one vote. Maybe some people have more votes because they are more invested. Presumably we figure that out in our smart contract. What she didn’t get was why the government thinks a voting mechanism is a security.

“So the government treats the way your group organizes decision making as if those little voting symbols were stock in IBM? That’s fucking stupid”

Now granted my mother probably can’t explain what a security is (she’s got the basic idea that they are like a type of money and Boomers like to own stocks). She gets why they are regulated the way they are in a general sense. She’s lost money on badly governed companies. So sure it’s fine that the government has some rules for that sort of thing.

But even to a lay person like my mom it seems pretty clear that something meant to represent ownership in a money making enterprise and something meant to help organize voting and decision making are separate ideas. She seemed to think maybe they ought to distinguish between the two ideas. Because you know the last time we came up with clever ideas like the corporation the whole world changed. Evolving them again to be autonomous could make for the same level of change. If my mom got that in a half an hour phone call seems like maybe the professionals at the SEC could work it out too.

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Finance Internet Culture

Day 220 and Crypto’s Publicist Part 2

Yesterday I wrote about my proposal to create an activist DAO to engage in public relations for crypto. The goal of the organization would be to create a groundswell of support for the space, it’s values, and opportunities as well as engaging in support for a more positive regulatory environment.

If you would like to hear more about why I think it is time for the wider decentralized crypto community to engage in a public relations and media campaign please see my post yesterday. Today I am putting down further notes on what I think our values and priorities might be. As always, this blog is a work in progress so consider this my thoughts as of now that are open to being edited and changed.

What kind of values are crucial in a PR or communication DAO or interest group?

  • Open
  • Participatory
  • Trustless

It’s important that whatever we do on behalf of crypt it must be done in the spirit of the space and why so many disparate types of people believe in its values. While there may be structures like executive teams, core teams, board members and studios and contractors to execute on our mission we want to use the tools and transparency of crypto.

But to what purpose are we organizing? We will create content and engage in conversations to shape media narratives and public sentiment aimed at promoting the positive elements, potential, and impact of crypto.

How will we do this? We will hire publicists to promote our stories in mainstream media along with commissioning content meme-ers and creators to share opinions. We will engage with spokespersons to share talking points created from the priorities of the community. We will place our content, from memes to editorials, on our own properties as well as in supporting communities and member publications.

I expect I’ll be doing quite a bit more note taking and research. If you want to be a part of this effort I’ve started a shared Google doc for collaboration. Email me Julie @ chaotic dot capital or DM me @ AlmostMedia. This won’t be built in a day but together we can push it forward.

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Finance Internet Culture Media Politics

Day 219 and Crypto’s Publicist

Most industries have interest groups. Publicists, lobbyists, and spokespeople weave together stories, talking points and preferred legislative agendas. Anyone or any group is free to discuss why their preferred business or issue is worthwhile and convince others of their view. We have a marketplace of ideas. Sure, not all interests are good but anyone is free to promote what they believe in. So why aren’t we doing anything for our cause in the crypto community? I say it’s time crypto had a publicist.

Not every country allows for this. The crypto community has an obligation to recognize that when we fight for our own interests it isn’t just we who benefit. The entire world benefits from open, decentralized and permission-less systems. What we do benefits everyone who wants to live in a freer world. It’s time crypto had our own activist DAO to protect and promote our values.

I am proposing the formation of an activist DAO promoting the use of crypto. Our goal is to advocate for positive popular culture narratives about crypto. We vote on our issues, stories and key initiatives through the DAO’s native governance tokens. The DAO will hire publicists and communication professionals to promote our stories in mainstream media along with commissioning content meme-ers and creators to share opinions. Policy is crucial but public perception is faster and pushes the right policy down the right.

As place holder I’ve purchased CryptoCommsCoalition.org. The Crypto Communication Coalition. I am working on a shared collaboration doc in Google Sheets to collect input, feedback, and priorities. Anyone who is interested can participate in our effort. Email me Julie @ crypto comms coalition dot org or DM me on Twitter.

We need DAO creation specialists, legal experts, memers, streamers, Reddidters, governance folks, publicists, lobbyists, fundraisers and a thousand other specialists I haven’t thought of yet. This won’t be easy but it’s an eating our own dog food moment for crypto. We can use our own tools to advocate in a participatory, transparent and open way for our own interests. If banking and big oil can can afford publicists then so can we. gmi.