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Lots of people talk about being transparent. Lots of companies espouse principles of transparency. Lots of statements start out with “I like to be transparent” or “I’m being transparent when I say …” And several years ago the notion of transparency became the new in thing, especially around the VC and startup worlds.
Most of it is bullshit.
If you want to see real transparency, take a look at Moz’s 2013 Year in Review: More Than You Ever Wanted to Know About Moz, and Then Even More.
I love being an investor in this company.
When Rand Fishkin decided to hand the CEO reins over the Sarah Bird, he wrote Swapping Drivers on this Long Road Trip Together. Or if you want to compare how they did in 2012 to 2013, just read Rand’s post Announcing Moz’s 2012 Metrics, Acquisition of AudienceWise, & Opening of Our Portland Office.
And while Sarah and Rand were disappointed in their off-plan performance of 33% revenue growth, GAAP revenue of $29.3 million, and an EBITDA loss of $5.7 million, as an investor I’m delighted. Given all the things in motion, they and their team have done an amazing job of navigating another step function in the growth and development of the company. They are extremely well positioned on all levels for 2014 – product, strategy, infrastructure, financials, cost structure, and team. And they have huge hearts.
I know transparency is hard. Our legal and regulatory system makes it even harder. Having been on public company boards, I’ve been involved in the endless discussions about level of disclosure. I’m not naive about how the system works. And I know how many people view opacity as a competitive advantage, which is some cases it is.
But when you talk about being transparent, it’s often useful to have a standard of “real transparency” to compare yourself too. I’d put Moz at the top of that list in my book.
I love playing offense.
FullContact is officially in this mode and today announced that they have acquired Cobook with Pot, Ski Passes and Dogecoin. Kaspars Dancis – the awesome CEO of Cobook – has a more seriously titled (and equally serious post) up at COBOOK + FULLCONTACT.
One of my basic strategies as an investor is to use targeted small acquisitions throughout the life of a company. In 2005 Fred Wilson called this approach the “venture rollup” and said nice words about me and it in his post when he said “My good friend Brad Feld is up to his old tricks. Brad is the master of the venture rollup.”
We’ve been investors in FullContact for about 18 months. They’ve got a real business at this point, are growing very fast, and working hard on their mission of creating One Address Book To Rule Them All. If you haven’t tried FullContact’s Address Book, you are missing out. The magic feature of “unified contacts” that they’ve been working on for over a year is up, running, and amazing.
Cobook is a perfect acquisition for us. The Cobook team has developed beautiful Mac and iOS address books. We’ve admired them for a while and decided a few months ago to join forces to have them accelerate our development on other platforms. The full team is moving from Latvia to Denver and is already hard at work integrating FullContact and Cobook.
If you’ve been watching what the companies I’m involved are up to, you saw this move in November when Yesware bought Attachments.me. And you’ll see it from companies I’m involved in again, and again, and again.
One of the super crazy fun companies we are investors in is Betabrand. At this point, half of my new wardrobe comes from them.
They are hunting for a new amazing UI/UX developer. But – to show how much they want someone, they’ve designed an incredibly hideous new look for their site.
They’ve got blink tags, Comic Sans, spinning boxes, Nyan cat cursors, Papyrus, an on fire Under Construction prompt, and really bad color overlays. It reminds me of a Geocities page I once created.
Help our friends at Betabrand out. If you are a UI/UX god or goddess, here’s what they are looking for. And – while you are at it – buy some new disco pants.
What better way to start off a new year than by closing a new investment. This morning we announced that we have closed a financing in OnTheGo Platforms via our FG Angels syndicate.
On October 1st, 2013 we announced that we’d be forming an AngelList syndicate called FG Angels and making 50 seed investments through AngelList by the end of 2014. We committed $2.5m from our Foundry Group funds for this effort and decided to max out the syndicate at $500k / investment, or $25m total. So $2.5m would come from us and $22.5m would come from syndicate participants.
We knew we had a lot to figure out around how the AngelList syndicate would actually work. We also knew that AngelList had a lot of work to do to get all the software and legal dynamics working properly. We’ve spent the last three months working with AngelList, our lawyers (Cooley), and a few other experts to make sure everything was set up the correct way. It was much more complicated than we expected, and we’ve learned a lot more about 506(b), 506(c), what the JOBS act made better, what the JOBS act made worse, and the general insanity of unscrambling new government regulations that purport to make thing easier, but actually make things harder.
But we’ve figured it out. And are psyched to have led a seed round in OTG Platforms. We’ve also got a healthy AngelList syndicate called FG Angels ready to roll. And we’ve got a second investment in the final stages of closing and a third one getting ready to launch. We expect to be in a 2 – 4 investment per month tempo for Q1.
The OTG Platforms gang has been incredibly patient with us. We were originally planning to announce things at the Defrag Conference in November but at the last minute realized that we’d blow all the 506(b) exemptions and generate a huge pile of work for everyone, so we held off until things closed. As we ran into issue after issue with the AngelList syndicate process and docs, they hung in there patiently as we worked it out, being willing to be the test case. They are just an awesome team – exactly the kind of people we love to work with.
The AngelList gang was equally amazing. We’ve loved what they are up to from the beginning. I’ve given Naval and Nivi lots of feedback over the years and have been active on a few non-tech angel investments through AngelList. We knew going in that the AngelList Syndicate process was a new thing and figuring out how to do it correctly, via a VC fund, was going to be a challenge. But we’ve mastered it and the AngelList team continues to be well ahead of the curve on all fronts.
Over time I’ll write more about what we’ve learned and what the issues are. But for now, congrats to OnTheGo Platforms – we are psyched to be partners with you. And thanks AngelList.
I’m fascinated with drones. I’ve never been a model airplane guy and my model rocket phase lasted about a month when I was 10. But drones feel like something different, since I can program them to do what I want them to go do, rather than have to control them with a controller. My current goal is to program a Taco Drone to go from the 2nd floor balcony outside of my office to T/ACO, hover for a few minutes while they attach lunch to it, and return to my balcony.
We recently invested in 3D Robotics so I went online and bought a 3DR Iris quadcopter. We got an early version a month or so ago and some of the gang in my office – especially Dane, Nick, and Eugene – have been flying it around. Dane appears to have mastered it since his instructions to me included stuff like “don’t press that button” and “don’t move that lever.”
Yesterday he brought the Iris up to my place in Keystone for me to play around with. It was at the end of a longer meeting on another project we are working on. I wanted to just program the drone to do stuff, but Dane insisted that I learn how to fly it manually first. So I did.
The results were predictable – a tree jumped out and got in the way.
In comparison, here’s how it’s supposed to work. Now if someone would finish up that jetpack I’ve been waiting for.