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Hi, I’m Brad Feld, a managing director at the Foundry Group who lives in Boulder, Colorado. I invest in software and Internet companies around the US, run marathons and read a lot.

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Mentors 3/18: Be Authentic – Practice What You Preach

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In today’s installation of the Techstars Mentor Manifesto, we deconstruct #3: Be Authentic – Practice What You Preach.

Authenticity has once again become a trendy word. When I started blogging in 2004, it was all about transparency. Fred Wilson led the way and I happily followed. And if you want to really understand transparency, look at Rand Fishkin’s epic post on Moz’s $18 Million Venture Financing in 2012. Now that’s transparency.

Today, it’s all about authenticity. I’ve always been amused when someone says “I’m authentic” or “I’m transparent” or “I’m entrepreneur friendly” or “I’m a value-added investor.” Whenever I hear that, I automatically insert the word “not” in between “I’m” and the rest of the phrase.

It’s not about stating that you are authentic. It’s about practicing what you preach, all the time, and in every way. Sure – you will make mistakes, but when you do you need to own them, apologize, correct things, and move forward.

As a mentor, this is especially important. The entrepreneurs you are mentoring look up to you. They immediately vest responsibility in you as a mentor. Authenticity in your behavior is key to maintaining this relationship, which you get by default.

It’s easy to fall into the trap of “I’m doing this as a favor to the entrepreneur so they have to put up with me.” Wrong. You are setting an example for the entrepreneur. They are watching your every move. In some ways, the pressure is even higher on you as a mentor since your behavior is going to rub off on your mentees.

This comes up in all contexts. It can be as simple as being on time. If you emphasize to the entrepreneur the importance of shipping on time, but then are consistently 15 minutes late to meetings, that’s not particularly authentic. It can be around content. If you stress the importance of a personal voice on the company blog, but then have a marketing team handle your own content for your VC firm, that’s not particularly authentic. If you have a public persona of being calm and constructive, but then throw temper tantrums to get the attention of your mentees, how do you think that’ll impact them.

Now, you’ll be late. You’ll have infrastructure the entrepreneur doesn’t. And you’ll get frustrated and lose your temper sometimes. But when you do, own it, and apologize. Let the entrepreneur know when you are inconsistent in your behavior. When they realize it’s ok to screw up, as long as you recognize it, they’ll understand the power of truly being authentic.

Focus on the phrase “practice what you preach.” That’s the core of authenticity in a mentor / mentee relationship. You are preaching regularly as a mentor. Do your words match your actions?

What Should You Do When Someone Rips Off Your Site Design

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I recently received the following email.

I am in a bit of a dilemma and would really appreciate any insight you all have on what to do.

Last month, my team worked with a designer to create a new homepage for my startup. Yesterday, I saw that another company ripped off our entire site design. They have also just recently pivoted into doing exactly what we do.

You can compare the two sites here: Us Them a week ago Them now.

It doesn’t feel right that they can so brazenly steal someone else’s work like that. You would think they would have a reputation to uphold.

Anyway, my question for the group: How can we turn this negative into a positive for us?

My response was:

Welcome to the world. It sucks, but it happens all the time.

There are two approaches:

1. Ignore them and just kick their ass.

2. Make a big deal about it as a way to get more attention for you. Do this in a classy way. Don’t be whiny about it.

So you know, I generally choose option 1. I find that option 2 is very hard to execute and usually a distraction. But if you can do option 2 correctly, especially for a consumer service like yours, it can generate a lot of interest.

After a week or so, a draft blog post, and a little more back and forth the sender concluded:

For a quick update on this front, I think I did want the noise, to hopefully drive more awareness and because I was still kinda mad.

But, after putting it out of my mind for a few days and focusing on making progress on our product and marketing strategy, I feel calmer about the whole thing. Best case scenario we embarrass them – which doesn’t seem as fun anymore now that I’m not as actively mad – and get some sympathy and signups. Worst case scenario it backfires on us. Either way it’s a distraction and a lot of noise that isn’t really my style.

Our team is better, our technology more scalable, our wit sharper. They are right in some ways to make their site a cheap knockoff of ours – our site is great. But they’re fighting a losing battle. So I’m gonna go with option A of ignoring it and kicking their ass.

So yeah, your advice ended up being right on. Thanks for suggesting I sleep on it for a few days and again just for being responsive and helpful overall – it really did mean a lot.

I was proud of this person. The high road is always more fun, especially when you toss boulders down on the person on the low road and crush them before they make any progress toward the top of the mountain.

Mentors 2/18: Expect Nothing In Return

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The second element of the Techstars Mentor Manifesto is Expect nothing in return (you’ll be delighted with what you do get back). It’s extraordinarily simple while being profoundly hard.

It’s simple because it’s easy to say “I’m doing this without any expectations.” That felt good, right? You are going to be a good mentor, helping another up and coming entrepreneur, and it’ll be good karma. It’s good marketing – who doesn’t like people to say things about him like “Joe is such a good guy – he helped me without expecting anything back.”  Simple, right?

It’s profoundly hard because this just isn’t human nature, especially in a business context. We live in a transactional world, constantly deciding where to invest our time to get the best ROI – there’s even a phrase for that which is “return on invested time.”  We worry about things like reputational effects, being cautious of spending too much time with low impact activities or unknown people, while being drawn to the spotlight and well-known people, even if the activities are hollow and lack substance or value. We feel overwhelmed with the base level of work we have and struggle to justify spending time on activities with an unknown impact on what is directly in front of us. We prioritize how we spend our time, gravitating towards things where we can see the payoff.

I have two constructs I use that have broken this cycle for me which are at the core at being an awesome mentor: Give Before You Get and Random Days.

Give Before You Get is a cousin to a concept many of us are familiar with called “pay it forward.” With pay it forward, someone once did something for you to help you with your life or your career and you are now helping someone else out to “pay it forward” as compensation for this previous support. While nice, it’s still a transaction concept, which is where give before you get differs. In give before you get, you enter into a relationship without defining anything transactional – you “give” in whatever form is appropriate, but you have no idea what you are going to “get” back. Now, this isn’t altruism – you will get something back – you just don’t know when, from who, in what currency, or in what magnitude. You enter into the relationship non-transactionally and are willing to continue giving without a defined transactional return.

This is at the core of my Startup Communities thesis. To truly activate a startup community you have to get everyone in the startup community putting energy into the community, essentially giving before they get. If you create this culture, magical things happen very quickly as an enormous amount of kinetic energy goes into the startup community, generating rapid activity, results, and powerful second order effects.

In the construct of give before you get, it’s important to remember this isn’t altruism, which is why I’m repeating that notion. You will get something back, you just don’t have any expectations around what it will be. That’s unnatural for humans, and is the fundamental difference between a mentor and and an advisor. An advisor says “I’ll help you if you give me a $3,000 / month retainer and 1% of your company.” A mentor says simply, “How can I help?”

Random Days is one way to practice being a great mentor and giving before you get. I started doing random days in 2005 after a long history of random 15 minute meetings – something I’ve always done, but at some point realized I couldn’t effectively squeeze them into the normal flow of my day anymore. So I started setting aside about a day a month to do a dozen or so random 15 minute meetings. Some magical things, including Techstars, have come from Random Days. The trick to an amazing random day experience is to meet with anyone (zero filter) and let the 15 minutes be entirely about them and their agenda. I typically start each meeting with “Hi, I’m Brad Feld, the next 15 minutes are about whatever you want to talk about.” That establishes that I have no expectations and I’m fully available and present for the person I’m meeting with.

In a busy world with constant performance pressure and expectations around outcomes, the concept of give before you get and the idea of having a periodic random day may seem ridiculous. If you are thinking “that sounds nice and utopian, but I don’t have time for that” or “yeah Brad, whatever, but you are in a different position in life than I am”, I challenge you to rethink your position. I’ve been doing this since my first company in my early 20s. I’ve built the notion of give before you get into the core of my value system. I’ve allowed myself to continually be open to randomness and many of the incredible things I’ve gotten to be involved in have come from one of these random interactions. Most importantly, I continually am amazed by what comes back to me, over and over again, from people I’ve put energy, time, and resources into without any expectation of a return. The payoff, financial and non-financial, has been profound for me.

So try it. Don’t shift to a 100% give before you get mentality, but allocate 10% of your time to it. Find ways to give before you get. And if you are a mentor for an accelerator, a younger person, a peer, or someone in your organization, make sure you internalize the idea of giving before you get and expecting nothing in return. You’ll be delighted with what you do get back.

AngelList Syndicate Feedback From An Experienced Entrepreneur

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We recently funded Blinkfire Analytics using our FG Angels Syndicate. The CEO and founder, Steve Olechowski, was co-founder / COO of FeedBurner, which Google acquired in 2007. I was an investor and on the board of FeedBurner, which is how I got to know Steve.

If you don’t know the FeedBurner story, there were four FeedBurner founders – Dick Costolo (now CEO of Twitter), Eric Lunt (now CTO of BrightTag and until recently a board member at Gnip, which Twitter just acquired), Matt Shobe (now at AngelList), and Steve.

In addition to bootstrapping his new company forever (since he’s a multi-time successful entrepreneur), Steve could easily raise an angel round any time he wanted to. So, we were psyched he was willing to do an FG Angels Syndicate with us.

Steve had some unsolicited comments for me, AngelList, and angels as a result of the process. I asked him if I could post them – he said yes. Following is a thoughtful set of reasons AngelList is so powerful, along with some constructive feedback for us to consider.

1) Some of your backers are really good citizens.  When it was oversubscribed they kept their syndicate commitment, but offered a much bigger investment outside the syndicate.  When 50% of the money didn’t close, they went back and put it back into the syndicate.

2) You have a bunch of “shadow backers” who seem to follow your investments, and then try to go direct to invest to avoid paying your carry.

3) There are some backers that request an awful lot of due diligence for a $1000 investment.   If they are that worried about losing $1000, perhaps AngelList isn’t the right place for them to be investing.

For us, the benefits of the syndicate are:

1) Access to capital we wouldn’t have otherwise been able to raise on angel list, and offline

2) Keeping the number of entries on our cap table relatively small

3) Though #2, we still have the transparency of knowing who the “LPs” are, and can mine them for help if needed

For the investors, the clear benefits are:

1) Access to deal flow they wouldn’t otherwise get

2) Ability to diversify their funds without a huge minimum ticket

3) Piggybacking on an investment thesis without having to do the research

The only negatives so far are the days of uncertainty where do you don’t know how much is going to get filled and if you need to generate more demand or turn people away on a daily basis.

Mentors 1/18: Be Socratic

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Since today is the first day of the new Techstars Boulder program, I figured that it’s time to get rolling Deconstructing The Techstars Mentor Manifesto.

My goal with this series of posts is not to get the detail right, but to flesh things out and get your feedback. So please comment on anything and challenge everything to help me get it better.

First up (of the 18 items) is “Be Socratic.”

If you think “be socratic” means “ask questions”, you are partially correct. When David Cohen was crafting the mentor manifesto, it was obvious to start with “be socratic” since such a key part of the Techstars mentor process is to ask questions. But it’s not just the act of asking questions, it’s how you ask questions, what you try to accomplish with the questions, and what your responses to the answers are.

The “how” is important. As a mentor, it’s easy to establish a 1-up / 1-down relationship with the entrepreneurs you are talking to. In most cases, you start that way, especially with first time entrepreneurs. However, your goal should be to create a peer relationship, where the mentee learns from the mentor and the mentor learns from the mentee. As a result, tone matters. A lot.

The cliche “there are no stupid questions” applies. Body language matters. If you – as the mentor – don’t understand something, ask a question. You don’t have to show the mentee that you are smarter than her. You don’t have to establish your credibility – you already have it.

While one of your goals with these questions is to learn more about the company and the problem you are exploring, recognize that if your engagement with the mentee is a one-way Q&A session with no clear goal, your mentee will only be getting part of the value out of the experience. Use your questions to guide the discussion, presumably toward testing hypotheses you might be developing in real time. Be explicit about these hypotheses as you are testing them and try to show your thought process through the questioning. This can be subtle, where you just guide things along, or it can be explicit, where you state your hypothesis and then start asking questions.

Your goal should not be to come up with the answer and state it, but rather to help the mentee reach the answer or a set of new hypotheses she can test. This is a collaborative process, especially if you are trying to develop a peer relationship. It won’t happen comfortably in your first interaction, but after a lot of time together you’ll find you are learning from each other during the process and reaching a better set of answers, or at least new hypotheses to test.

In the same way that how you ask the question matters, how you respond to the answers matters just as much. The corollary to “there are no stupid questions” is “there are no stupid answers” and it’s just as important to realize that. For most people, answering questions in real time, especially when you are getting them from lots of different directions (as in multiple mentors over a short period of time) can be intimidating. When a person hasn’t thought deeply about the answer to a question, or hears a new question for the first time, the answer often doesn’t really address the question.

When this happens, just ask “Why?” If you’ve never heard of 5 Whys it’s one of the most brilliant things I ever learned about getting to the root cause of any issue. The example in Wikipedia is wonderful, since it reminds me of Zen and the Art of Motorcycle Maintenance.

The vehicle will not start. (the problem)
Why? – The battery is dead. (first why)
Why? – The alternator is not functioning. (second why)
Why? – The alternator belt has broken. (third why)
Why? – The alternator belt was well beyond its useful service life and not replaced. (fourth why)
Why? – The vehicle was not maintained according to the recommended service schedule. (fifth why, a root cause)

What matters here is the root cause. And that’s what you are trying to get to with your questions. So don’t dismiss the first answer – keep digging. And use the third answer to set up a few hypotheses because at this point you are actually getting into the meat of the discussion.

The goal is not to end up with the definitive answer to the questions. Rather, you are trying to use the questions to set up a new set of hypotheses to go test. You are at the beginning of a long arc of inquisition – use being socratic as a continuous process to try to find answers.

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