Tag: Startups

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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.

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Culture Politics

Day 644 and Status Equivalence and DAO Leadership

Capitalism has largely been a triumph of hierarchy as an organizing mechanism. As we evolved from mercantilism into corporatism, appointing and holding accountable a single point of failure in a chief executive officer has become an effective shortcut for managing complexity when deploying capital. Leadership is responsible for the outcome.

The aphorism “failure is an orphan but success has many fathers” abuts against the reality that while we love to lavish praise upon executives, monarchs and other singular nexuses of responsibility it’s often not reflected in reality. Our bias in the post-industrial revolution has been towards leadership via individual even as post Enlightenment values valorize democracy and community participation. It’s been a tension for since the Industrial Revolution. America exemplifies this as the country most committed to both participatory federalism and corporate capitalism.

I am particularly interested in this tension as I believe we may be on the crux of larger organizational needs and are seeing them begin to coalesce in crypto. As decentralized autonomous organizations, or DAOs, make an attempt to become the new corporate governance structure in Web3, it seems worth studying the question of whether leadership is a singular or collective exercise for humans.

What does the historical and anthropological record have to say about how we organize? What are we evolved to prefer and are we capable of evolving further?

The bias we operate with now is great man theory. But what if that is not just wrong but not even the predominant form of human organization through history? Critics of cooperation might do well to explore this in particular.

I came across a Rob Henderson blog post which is an extended overview of a piece of sociology Hierarchy in the Forest: The Evolution of Egalitarian Behavior by the UCLA anthropologist Christopher Boehm. According to Rob’s post, the main question of this work is whether humans are by nature hierarchical or egalitarian. And it turns out our hunter gatherer forefathers were mostly egalitarian. The bulk of our history is egalitarian.

The anthropological record along with research on extant modern hunter-gatherers suggests that for most of human history we have been egalitarian, defined as “status equivalency among the decision-makers of a group.”

Rob Henderson reviews Hierarchy in the Forest

If you extrapolate this into a modern corporate context, the C-Suite or executive team, or perhaps even the founding team, are roughly the status equivalent decision makers. Maybe there is a first among equals in the CEO or founder but they can, in theory, be replaced by a board. But what if instead of a C-corporation you are managing a cooperative like a DAO? What then?

Apparently we humans are rather good at maintaining status equivalence. Richard Wrangham’s Goodness Paradox discusses how humans have self domesticated to avoid too much resource and power aggregation.

Over time, early humans eliminated those who were overtly aggressive. They killed or ostracized upstarts hungry for power; men with aggressive political ambitions. Other men would quietly organize to commit collective murder of troublesome male

Rob Henderson on Goodness Paradox

Moral communities evolve and punish those who deviate from acceptable standards. If you are too ambitious as an individual we swoop in as a species. It seems a bit miraculous in that light that we live in an era of kleptocracy and power consolidation given our tendency to murder upstarts. Great man theory isn’t all that sustainable. Or is it? Perhaps it’s that we asset influence obliquely. I’d wager any woman would agree.

Oftentimes, headmen display “self-effacing” behavior. Headmen and informal leaders usually obtained their roles through talent in hunting or warfare, storytelling ability, or congeniality. They rarely assert direct authority.

Rob Henderson on Boehm

If indirect authority is a sustainable organizational preference in the anthropological record, perhaps corporations are more amenable to reconstruction as DAOs (decentralized autonomous organizations) through the principle of status equivalence.

The autonomous part seems the trickiest, but decentralized authority inside tribal organizations are at least recognizably human. If as a group we disliked a status or resource hungry “great man” we leaned on the leadership preferences of status equivalent equals and forced you out.

I see no reason we can’t write in similar parameters into a smart contract as an experiment. At the first hint of a rug pull let the burning begin! We are already seeing political battles for resource allocation inside bigger organizations like MakerDAO. Crypto may be a worthy space for experienced leadership to show that figureheads like CEOs or founders are not the crucial lynchpin for progress and stability we believe.

Which would be quite a balm to me personally as I’m deeply skeptical of authoritarianism as a solution for our technical and social problems. I’d much rather we explore the wisdom of past tribal knowledge to guide us than look to a mythical great man to save me.

Categories
Aesthetics Finance

Day 584 and Fraudsters

I hadn’t bothered watching any of the numerous Netflix documentaries on how Americans love a beautiful fraud until this weekend when I made an attempt to watch Inventing Anna. I can’t tell if I regret the decision. I’ve avoided any glamorizing of the various grifters that we love to hate.

I don’t love stories about hustles gone bad because I fundamentally believe the difference between success and failure is a lot thinner than than the average person knows. “Fake it to you make it” is part of the great Pentecostal American prosperity gospel. You can come from nothing and become someone in America. We worship the idea of social mobility even if we don’t always like how people gained their fortunes. It’s an entire aesthetic in America.

This is particularly true because sometimes we actually do let the fraudsters win. Especially if we admire their hustle. And let’s be frank it’s a lot harder to tell who is a fraud these days because decades of publicly being a fraud doesn’t stop you from sitting in the Oval Office anymore.

Is it any wonder we aren’t quite sure how to feel about wealth and privilege and the black magic required to obtain it? We act like fraud is a temporarily embarrassing discovery on the way to respectability. Because it often fucking is.

Being in startups has given me a front row seat to just how much talent and capability matter. Except when they absolutely don’t. It’s genuinely hard to reconcile how little effort and outcome can be correlated occasionally.

And this absolutely lends itself to people being willing to take shortcuts. Mistaking that some hard doesn’t pay will kill you if you aren’t able to stay one step ahead. If you get caught, well that is clearly bad but who is to say you couldn’t have kept it up? It’s not like Americans trust cops or prosecutors (except for the line blue line fetishists). Maybe you were just too much of a loud mouth.

I will say the Inventing Anna series has shown me Americans are genuinely confused on how the rich stay rich. In so far as I can tell it boils down to gambling on who might be the real deal and simply writing off the frauds.

Cost of doing business. It happens to everyone. And the worse your boundaries are, well, the worse off your percentages. If your bullshit radar is bad that’s how generational wealth disappears unless you can figure out a way to rig the system (which is always an option).

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Aesthetics Startups Travel

Day 526 and Out of Practice Yuppie

A well dressed, tall, friendly looking white gentleman tried to join me on an otherwise empty blue velvet couch that I had deliberately planted myself in the middle of to avoid socializing. All that was missing was a “closed for business” sign around my neck.

I had attempted to tell him “no actually this seat is taken.” I was confused he didn’t immediately pick up on my body language. I had spread my entire body across the couch and had intensely “don’t come here” body language. I had my purse down to take up more space. I laid my hand with my wedding ring on my knee so it’s instantly visible. He didn’t pick up a single visual cue. I tried verbal. I literally shouted at him that no he wasn’t welcome to join me. “This seat is taken!” Didn’t make a difference.

I don’t think he could hear me as he sat down and tried to strike up a conversation despite his obvious discomfort clinging to the edge of the couch with half a butt cheek in mid air. He tried a few lines of conversation as I doggedly ignored him. I started a tweet and angled my phone screen towards him so he could see me typing complaints. Didn’t help at all.

I really had done everything I could to claim this space as my own. The couch was directly beneath an air vent trying to push cooler air into the crowded house bar. It was as hot inside the bar as it was outside but this one area had modestly more airflow making the summer heat at least breathable.

Which is to say it was over 100 degrees inside the old house. The Rainey Street bars in Austin are all converted old historical houses with wide open full floor windows and open doors to allow people to enjoy backyards with twinkling lights and hipster backyard games. These bars are a cultural treasure in March for SXSW when everyone enjoys the mild 70 degree early spring. In June during a heatwave they are a hellscape for yuppies who have simply forgotten how to socialize like normal human beings.

I was engaging in some incredibly rude behavior yes, but the bar has no other visible seating near an air vent and even the 5 degrees of lowered temperature and the moving air helped a little. I was wearing loose comfortable clothing but it was still intolerable. I regretted not sourcing a wheelchair for the week but then again none of these houses are accessible anyway. It was the only spot in the entire bar where I could even attempt to mitigate the effects of my invisible disability.

I could feel my spine starting to swell within minutes. Ankylosis is a winter disease. Heat and humidity swell the spine and that pain will radiate out to a kind of ambient full body throbbing intensity that cannot easily be ignored.

Actually, pain is just like the heat in that way. It overtakes your willpower slowly but inexorably. Quietly it makes itself known like the stillness of Joseph Conrad’s Jungle.

“And this stillness of life did not in the least resemble a peace. It was the stillness of an implacable force brooding over an inscrutable intention. It looked at you with a vengeful aspect.”

Joseph Conrad “Heart of Darkness”

The amount of determination you have to play mind-over-matter games is simply a fight against time. Eventually you get tired from the effort. You pray you don’t let it take you to the dark places it took Kurtz. But you know one day it could take you too.

Eventually my husband came back. He’d been searching for a bathroom and our hosts for the evening. The yuppie next to me pretended to ignore him. He sat for another two minutes or so just to give the impression he’s weirdly close proximity to me was on purpose as a resting place and not at all an attempt to strike up a conversation with a woman who did not want to talk. A tactic we’ve all used once or twice to conceal a social faux we didn’t mean to commit.

Alex and I used to attend parties like this all the time. We were aggressively on the circuit for both tech and media events for well over a decade. He used to produce TechCrunch Disrupt in a long distant past before he transitioned into being an operator at early stage startups. Then those startups matured to established companies. And now it’s become clear we are established professionals.

We no longer need the social circuit. Networking has lost its payouts. More people want to meet us and ask for things than the other way around. We’ve made it. And it’s a good thing too as the social contract is breaking down all around us. Yuppies have forgotten their manners as we are all out of practice with the basic niceties of the social season. Everything from how we approach someone to begin a conversation to whom we may invite to a private event is now fraught. Hell I can’t even remember how to apply professional makeup anymore so I can’t look down on a man looking to chat. We’ve all lost some of our humanity over the pandemic.

And I find myself mumbling “the horror, the horror” as I walk myself back to the hotel because the streets won’t allow taxis in the downtown core. The transition from soft times to whatever comes next is full of unexpected surprises.

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Media

516 and Shoot the Puck

There is a Canadian comedy called Letterkenney that has absolutely won my heart. It has snappy writing that shines through characters that are given real depth over multiple seasons. It’s funny as shit and absolutely vulgar. I couldn’t recommend it more highly. It’s about a small town living and being a hick, but that’s almost besides the point.

The show had an ancillary character, Shoresy, played by the creator of the series Jared Keeso ,who is a foul mouthed hockey player. Shoresy was spun out into its own series and recently premiered. I binged it over the long weekend with my husband. I won’t spoiler any of the plot, it except to say it’s got one of the strongest season endings I’ve ever watched.

What started as a truly disgusting bit of scatalogical humor ends up being the basis for a show with real heart. I found myself getting teary eyed as a story of teamwork unfolded. There is some classic underdog (literally the team is called the Bulldogs), tropes but you genuinely don’t mind. The emotional journey still works.

I’m a startup person so I’ve got a soft spot for watching something messy come together. And nothing is messier than a team that is dysfunctional. You root for them. As teams coalesce and a sense of identity forms, you cannot help but root for the improvement.

I’ve got a theory that the emotional rollercoaster of that process makes you prone to latching into aphorisms and simple wisdom. Its got something to do with the humility that comes from learning shit and being being bad at that shut. I suspect because everything is so chaotic when it’s new. The process of “becoming” so simply do mind shattering that koans and just-so story pearls of wisdom have added weight. They anchor you in the chop of uncertainty.

For Shoresy, the aphorism that tugged most on my heart strings was “you can’t score a goal if you don’t shoot the puck.” A simple sports metaphor so evocative you probably saw it on Naval’s Twitter account. Well ok maybe in just in second stringer venture capitalist sincere post. Clearly Ted Lasso isn’t the only sports sitcom show that can teach us something about becoming our most best empathetic selves.

Categories
Internet Culture Startups

Day 509 and History Lesson

I’ve been working on a talk for Coindesk’s Consensus in June. I’m doing a talk for their Big Ideas stage that Alex cleverly named the InDAOstrial Revolution. I’m pretty excited about the topic as it’s science fiction & finance history and social organization. It’s basically all my favorites. A

The invention of corporations was a transformative innovation for human organizing, driving the growth of the industrial revolution. Can DAOs drive an equally explosive innovation cycle? Decentralized autonomous organizations, or DAOs, offer us a shift towards open and inclusionary entities for marshaling resources and energy. This session dives into their potential futures, including open web public goods, the end of doomer capitalism, techno-optimism collectives, and the possibility of a networked nation state. Come for the sci-fi vibes, stay for the boomer neoliberal skepticism and get a pleasant dose of economic history in the process.

I’ve been doing a little bit of deep diving into the history of the corporation and it’s role in American history in particular. And when I was procrastinating during my flu I watched Gilded Age. Just so you’ve got an idea of my mind set. And honestly it’s been a mind fuck.

I’m not a historian but I think you can make the case that America had corporate governance before we had a functional state or federal government. In fact, this History of the Corporate Form from Fordham Law showed me the wildest fact I’ve ever seen. In America the corporation came before the state.

Other notable “joint-stock” companies, such as the Virginia Company, helped expand British control of North America. In fact, the Virginia Company established the General Assembly, which was the first legislature in North America.

The idea that some monarchy set a corporate charter up to extract commodities and that corporate organization led to a three hundred year experiment in self governance is astonishing. You really never can tell about an event’s downstream ripples. Our entire political way of life was downstream of property rights.

Of course, the reason I point this out is that how we organize and govern our resources and at what scale is what defines history. The ability to trust your goals and your investment will be executed, even if you are not personal overseeing it, is as it turns out a key innovation catalyst for all other technologies. The more efficient we are at at marshaling and deploying resources the further we get as a civilization.

The case I would like to make is that DAOs could help us unlock more sophisticated financing that enables ever further scale and coordination. If the corporation created American, can the DAO led other new nation states?

I can imagine a network state made up of sub-DAOs that provide interlocking economies. Some DAOs are responsible for infrastructure. Others are for services. Maybe we share some key responsibilities across one oligopoly for key social services like health care. The more something needs scale to succeed the more large scale collaborative behavior gets rewarded. I don’t doubt we can create some truly dystopian shit but also maybe it finally gets us to Mars.

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Chronic Disease Startups

Day 508 and Deficit

I woke up feeling reasonably ok today. I slept well but checking my trackers I learned my recovery scores were pretty low. My HRV was dipping into 30% recovery territory and I had a low blood oxygen count. I’ve been recovering from Influenza A so it’s not a surprise my lungs are struggling. But I tried not to let some bad data psyche me out. Maybe I was ok. I told myself I just needed to stick to my routine as I can’t let myself get into a physical deficit.

So I went about my morning routine with some optimism. I got some coffee and made breakfast. I took several rounds of supplements. I did some basic grooming. I felt basically human. I was all excited to dive into work from the second I woke up. I was so excited I’ve been dreaming about the presentation I’m giving at Consensus. I literally woke up with talking points.

And then at around 10am I realized I’d used up all my functional hours taking care of myself. Fucking figures. I am already in a physical deficit from this flu. It’s scary for me to be in a deficit as my favorite coping mechanism is to engage in workaholism. I over prepare and over work and I make demands of myself that only sabotage the end result. It’s entirely counter productive. It just looks socially acceptable because of the Protestant Work ethic.

So I need to calm the fuck down and accept where I am and that it will still be good enough. I know my shit. It’s worth it. And I’ll deliver on better than the average midwit. Honestly even acting like this is kind of midwit. The real galaxy brains would just be vibing it anyway. But it really is amazing how easy it is to fall into midwit fear based patterns. Believing in the bigger broader math of your own life is really hard because so much of our own ego is rooting for us to indulge in our worst impulses. So I’m going to calm down, not worry about my energy deficit and continue to do the work. It’s not glamorous work. It’s mostly making good decisions day in and day out. But then compounding kicks in.

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Startups

Day 501 and Do It Live

There must be some kind of residual high from making big decisions, as I’m feel powerful as hell coming out of Montana. I’ve committed to a life path and I am ready to do some thriving. Yes I’m referencing the meme.

unbothered. moisturized. happy. in my lane. focused. flourishing

I’ve got a deal I want to shop around even though it’s ice cold out there in venture land. I believe in the team and I believe in the market sector. It’s a bit of an unusual bet but I have total confidence in the problem space such that I am ready to spend some social capital. So hit me up if you want to get in on the deal. I feel like it’s a deal that’s absolutely in my lane and even if it’s a hard time to circle anyone to anything I may as well enjoy the thrive vibe. Let’s do some magic together yeah?

In another famous meme Fox News host Bill O’Reilly exclaims that “fuck it I’ll do it live!” And I have to say that is my current energy. None of us have a fucking clue about how things are going to go. But did we do our homework? Yes. I did the work. I ran my numbers. I’m good at what I do. I’ve got experience. I’ve got as good a shot as anyone.

So I’m going to say fuck it to a lot more. I’m confident. Because like Bill I’ve got the talent and why not fuck around and find out? This isn’t specifically about the deal I want to do (though I am excited) or the fact that I’m moving to Montana but rather that it’s time to express more confidence in general. I shouldn’t undermine myself. I’m good. Some people like me. And that’s enough to have some confidence to try some stuff and experiment. If you want to come and play with me feel free to say hi.

Categories
Startups

Day 490 and Startup People

One of the more transformative experiences of my young life was attending a founders only conference in 2010. I’d never been around that many other people who did the same thing as me before. I felt so seen.

The most unexpected thing was how relaxing it was to be among other people who understand the context of my life and my work. All of the weird and idiosyncratic elements of being the CEO of an early stage company are hard to translate to someone who has never had to live it. Startups are lonely work and being the CEO is the loneliest job in the company.

Obviously the last twelve years of bull market have greatly expanded the pool of people who have worked in startups. It’s gone from a niche to the driving force of American industry. Everyone grew up. Some of us made money. We’ve professionalized. We’ve developed best practices. What was once a scrappy singular experience is now a repeatable innovation.

And like that conference it is transformative to be seen. don’t feel so alone anymore. There are more people who can share in the context and specifics. I’m in Montana this week with friends who have a similar life path to myself and my husband. Our friends completely understand the context of our lives and we understand their context. We are all founders and executive team members and angel investors and LPs. And yes it’s relaxing. I highly recommend it.

Categories
Internet Culture Startups

Day 479 and High Agency

A corner of startup Twitter was discussing the relative ease of getting connected to power brokers in different industries today. The debate? Does good talent eventually finds its way to resources? The contention from Roon, otherwise known as Mr. Wordcel vs Shape Rotator, is that networking is less crucial in technology than in any other industry because it’s easier to find a way in.

While one can quibble with how true this is for all populations, it is truer than it’s ever been. A large swath of the startup ecosystem is readily available to anyone on social media. We are less constrained by geography and credentialism than we’ve ever been. This is partially because much of the wealth in the current generation came from building social networks or software that benefits from openness. An excellent overview of this is why good angel investing ecosystems prioritize welcoming newcomers by Alex Danco. Most investors want to be available.

But it’s still a challenge to find high agency and high talent people and there are far fewer of them than you’d imagine. And proving you are high agency and high talent isn’t always an intuitive process. Being able to assess if someone has the capacity to build is one of the hardest job a capital allocator will ever have. Judging markets and products and roadmaps is much easier than discerning if someone has the capacity to execute on their dream.

I personally use follow up as my first heuristic. This is partially because I maintain open DMs so literally anyone can and does reach out to me. If someone is able to regularly show up and engage with me and show progress they are better than 90% of people. Honestly go ahead and try! I really am here to help.

You’d be shocked at how often someone pitches me and then I never ever hear from them again. And it’s not because I missed the boat (this happened once to me this year). It’s generally because people are waiting for someone else to act. And this is where people fail. The first rule of startups is figuring out how to create momentum. If you are waiting for me to cut a check you’ve already lost.

I’d like to do a whole post on this topic but I’ve been struggling to get the bulk of it on paper as I’ve got a migraine coming on. But rather than put the post off, I organized an introduction of the subject and put down my first heuristic. Which is ironically exactly what I look for in founders and builders. Did you make some visible amount of progress no matter how bad? Did you put it out into the world? That’s better than most people!