Brad's Books and Organizations

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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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Book: The Alliance

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Reid Hoffman, Ben Casnocha, and Chris Yeh have written an outstanding and important book called The Alliance: Managing Talent in the Networked Age. I encourage you to get a copy right now and read it this weekend. If you are a CEO of a company Foundry Group has invested in, there’s no need to buy it – I just ordered 100 of them and they will be in your hands soon.

Reid and Ben previously wrote a book called The Start-up of You: Adapt to the Future, Invest in Yourself, and Transform Your Career. It is also excellent. It’s the first book students read during the course I teach with Brad Bernthal at CU Boulder called “The Philosophy of Entrepreneurship.”

Reid is well known as the co-founder of LinkedIn, a partner at Greylock, an angel investor in many successful companies including Facebook and Twitter, and one of the kingpins of the PayPal Mafia. I got to know Reid while serving on the Zynga board with him and he’s as advertised – a deep thinker, extraordinary strategist, and incredibly supportive partner to an entrepreneur. Most importantly, it’s very clear that the notion of building a strong personal brand (discussed in The Start-up of You) and approaching employee / employer pact with commitment and a very  long term view (discussed in The Alliance) is a core part of his value system.

Ben, while less well known, has been Reid’s chief of staff for the past few years. He’s also a successful entrepreneur, having started Comcate, his first business, at age 14. Amy and I have become extremely close friends with Ben over the last decade and we view him as part of our extended family.

I don’t really know Chris, but by association he has a huge amount of credibility with me.

The Alliance starts out by punching you in the face to get your attention. It differentiates between the notion of “company as a family” and “company as a team.” The punch in the face is the idea that you can’t fire a family member (“Susy, you aren’t succeeding at doing your homework, so you are fired as our daughter”) so while “we are a family” is a time-worn metaphor for a company, it’s a poor one. Reid, Ben, and Chris suggest the notion of a team instead. And, instead of permanent employment, they use the concept of a tour of duty to redefine the employer / employee relationship from “lifetime employment” to “a well-defined and clearly stated pact between employer and employee.”

The book, and the concept, is tightly written and extremely readable. The book is an appropriate length – there’s no fat here – just substance. I particularly loved the chapter on Network Intelligence which describes an approach to have every person in your company use their network to get market and competitive intelligence for the company. In addition to the concept, the authors give us piles of examples, including some from Greylock on how to execute a brilliant market intelligence strategy.

When reflecting on The Alliance, I feel that Foundry Group works this way at a meta-level. If you extend “Foundry Group” to include all of the entities that we have co-founded, you quickly add in Techstars, FG Angels, FG Press, SRS|Acquiom, Gluecon, Defrag, and a few others. Then, add in the 70 companies we’ve invested in via Foundry Group and the 20 or so we’ve invested in through FG Angels. Then the 30 or so VC funds we are investors in. And the thousands of companies we are indirect investors in. That’s a big team, configured in lots of different structures, all over the US. Any member in good standing of any of these entities is a long term member of our team, regardless of what they do. Anytime one of the reaches out to me, I’ll always try to help any way I can. Sure – we aren’t perfect at this, but we try hard, and are going to keep trying even harder in the future.

Reid, Ben, and Chris – thanks for writing this book. I hope, in 20 years, it’s as important as The Organization Man by William Whyte was in its day.

The Power of Being Human in Business Development

Comments (20)

I’ve had some really crummy experiences with business and corporate development people in the past year. There’s been a strange change in ethos, where suddenly people have forgotten that when they do deals, they are doing deals with other people, not with a company. I learned this in 1993 when my first company was acquired by Len Fassler and Jerry Poch, two of the absolute master deal makers I’ve ever worked with. The each taught me so much about this, by first being people, then dealmakers.

 I’ve got a few posts on this topic coming but until then here’s a great post from Chet Kittleson at UP Global about how he thinks about it. Now, while Chet focuses on business development, the same is true for corporate development or sales.

My name is Chet Kittleson and I’m a human. I have eyes and ears and a nose and two nieces, and one nephew, and two sisters, and a wife, and a house and a couple of cats and a mom and a step dad and a biological dad and some friends and a history filled with good and bad and right and wrong and so much more that I can’t fit into one run-on sentence. Like I said, I’m a human.

What I’ve done with this first paragraph, hopefully, is began to build up trust between you and I. The type of trust that extends beyond the walls of LinkedIn and Twitter, and into a meaningful relationship between us as human beings. I’ve exposed more than simply what I do for a living, and in doing so, I’ve broken down a wall that previously would have created a barrier between where we stand now and where we might stand a week or a month or a year from now.

This sentiment is meaningful in every walk of life, but in business development this is the difference between failure and success. It’s not Microsoft or Google or Amazon that you’re looking to partner with, it’s Mary or Matt or Lindsay.

“Companies don’t make deals with other companies. People make deals with people. Understanding the motivations and incentives of the relevant people involved is critical to getting a deal done,” said Greg Gottesman of Madrona Venture Group.

The old adage, “it’s not what you know, it’s who you know” should be something closer to, “it’s not what you know or even who you know, it’s who you can influence.” And to be clear, influence is not in the same family as manipulation. Influence is based off of authenticity and trust built by years of friendship and communication. People who genuinely trust you to help them make smart decisions based on their needs as human beings as well as the needs of the companies they work for are in your sphere of influence. This is where the bulk of real and lasting business happens.

You’ll be surprised at how captive another person will be when they view you as an industry expert on things that pertain to their needs, rather than an expert at selling whatever it is you’re selling. Send them suggestions on other partnerships or products that have nothing to do with your organization. (Thanks to T.A. McCann for that nugget.) Connect them with your competitors if they’re able to offer something that aligns better with their goals. Stay relevant and true and you’ll be invited into conversations and email threads that otherwise you would have never been privy to.

“I never would have imagined what a profound impact the people I bonded with – co–founders, investors, mentors, partners –  early on in my entrepreneurial career would continue to have in my personal and professional life over 15 years later.  What better investment can we all make than in the people we respect.” said Mike Fridgen, GM at eBay and former CEO of Decide.com.

So if you’re interested in pursuing a career in business development, or are new to the field, here’s your first call to action: drop every book you’re reading with “sales” in the title, walk outside, and meet someone. Then meet someone else. Then go back to the first person you met and ask them how they’re doing. And all the while, don’t forget for one second that every single person you’re meeting is ridiculously human. Every one of them, regardless of their title, the number of connections they have on LinkedIn or the amount of budget they have control over, they’re human and they have eyes and ears and a nose and nieces and nephews and sisters and brothers and wives and husbands and all the rest.

Second call to action: start selling something. Anything. Learn how to remain human when money is added to the equation. Cold call strangers out of the phone book, set up camp outside of a grocery store, and learn to build trust out of nothing in an authentic way. I’ve worked with partners on $500 deals and I’ve worked with partners on $500,000 deals, and in the end it all comes down to your ability to understand those on the other side of the table. Start with beef jerky like Noah Kagan did with his 24-hour business challenge, and work your way up from there.

Good people are everywhere, even in the business world, and as the barriers fade away those who you once referred to as contacts or connections turn into, don’t let this word intimidate you, friends. They turn into people you can share stories with, people you can consult with on the next fiscal years partnership proposal, people who can help and that will at some point need help. It’s simple, but if you can remember this throughout each coffee meeting and each conference call and each email, you’ll be just fine. Hey, that’s one human’s opinion though.

Chet Kittleson is the Director of Strategic Partnerships at UP Global, parent company to Startup WeekendStartup NextStartup EducationStartup Digest, and Startup Week.

Do People Treat Me Differently Since I Talk Openly About Depression?

Comments (18)

As Amy and I get ready to return to Boulder today and physically re-enter the human race, I woke up this morning thinking about how I’m feeling emotionally. We’ve had an excellent three weeks up at our house in Homer, Alaska, far away from the people we know. Our only friends up here are our neighbors (whom we adore) so other than one visitor (Matt Shobe – who we also adore) it’s been a very solitary and physically introverted time.

I’ve been working a lot – typically on video conferences and phone calls for four to eight hours a day. Toss in email, some projects, and my daily writing and you’ve got a full schedule. But it’s been alone, with just Amy, in our house, far away from other people. The days have been long, with lots of light, late dinners, and even later nights since the sun doesn’t go down until after midnight. And that’s been good for my soul.

Several months ago I received the following question in email. It’s similar to a number of emails I’ve received and I thought of it this morning as I was pondering my mental health so I figured I’d riff on it a little.

“I have been struggling with depression for a while. I want to write about it, but I’m afraid that it will really negatively impact me professionally. Some investor might not write me a check, because he/she will think that I’m not a good bet, or maybe someone will think twice about hiring me down the line. Have you found people treat you differently after you’ve written about your depression? Have you had opportunities close up? Would you recommend writing about it for someone who is not as established as you are?”

Following is a rambling rant on each question.

Would you recommend writing about it for someone who is not as established as you are?”: I have no idea. In my case, I started writing about it without considering the implications. The transparency movement was one of the motivations that resulted in me starting to blog in 2004 as I played some follow the leader with my friends Fred Wilson and Jerry Colonna, who each discovered the joy of blogging shortly before I did. A decade later, I continued to believe deeply in the value of transparency as well as authenticity, which has been reinforced through my work with Rand Fishkin, Sarah Bird, Moz, and Moz’s TAGFEE code. I try to be myself, be direct, be open, and own my thoughts and ideas all the time. So it would have been opaque and inauthentic not to talk openly about depression and, given that transparency and authenticity are a key part of my value system, I never gave it a second thought beyond realizing that if I didn’t talk openly about depression, I was bullshitting myself and violating some of my core values. That said, I have no idea if it’s a good idea for someone else to write about their depression – it’s going to depend on their value system, circumstance, and mental/emotional state. However, I do know that talking about it, even privately, has helped me address my depression, so I encourage anyone who is struggling with depression to make sure they at least have a few people in their lives who they can talk to openly about what is going on with them.

Have you found people treat you differently after you’ve written about your depression? Have you had opportunities close up?  I’ve had three experiences: a few mildly negative, a few irrelevant, and many overwhelmingly positive. I’ll start with the negative. Several people who I previously was close to withdrew from interacting with me. I have no idea why – I can only speculate that they were uncomfortable, afraid, or ashamed of something, or for me. I’ve proactively reached out to several of them now that I’m not depressed and re-established close relationships, so the dynamics here are a mystery to me. A few people, instead of being passive, were openly hostile to me. I ignored them as I realized their hostility was likely more about them than about me. Many, many people reached out, provided support, opened up about their own depression, thanked me for providing leadership on this issue, or words for them, or just an example of a successful person who struggled with depression. This was the overwhelming feedback and resulted in a number of new, interesting, and powerful relationships for me. Many of the conversations I had with this set of people helped me work through my depression and better understand myself, and many of them told me that I had a similar impact on them.

Reflecting on this rant, I think people do interact with me differently in a way that is very positive and powerful. There is a lot more connection and empathy in my relationships. I’ve always had a lot of this since it’s the way I’m wired, but now it extends to many of the relationships I have from a distance, online, or are business interactions with relatively little physical or social interaction. It’s easier to get real about what is going on when things are difficult or when I see someone else struggling. And, when I need a break from humans, I just take it without worrying about it or wondering what people are thinking. At some level, I’ve let go of another layer of external judgment and validation, which already was largely absent from my psychological construct since I’m so deeply intrinsically motivated. But by helping people understand me better, they can related to me better and I can relate to them better.

So – overall – being open about and writing about my struggles with depression has been a huge plus for me.

The Declaration of Independence

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I love origin stories. The moment of the beginning of something new, or a key point in the founding of something, is always powerful to me.

On the 238th birthday of the United States of America, I think it’s useful to reflect on America’s origin story. So, after seeing an email by Bart Lorang at FullContact where he said that he read the Declaration of Independence to his new son, Laser Lorang, I decide to go read it again.

After reading it slowly and carefully, I decided to post it here as my birthday tribute. It’s pretty amazing to reflect on what was happening in the country 238 years ago that caused the committee of five (Adams, Jefferson, Franklin, Sherman, and Livingston) to draft, and then for Congress, to adopt, the Declaration of Independence.

Happy birthday America.


 

IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.
He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.
He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.
He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.
He has affected to render the Military independent of and superior to the Civil power.
He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:
For Quartering large bodies of armed troops among us:
For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended offences
For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:
For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.
He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our Brittish brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

Using Startup Next To Get Your Company Accelerator-Ready

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Getting into an accelerator is increasingly difficult. While there has been a proliferation accelerators around the world, there has simultaneously been a dramatically increasing number of companies applying to accelerators. In my world, supply and demand never balances out, so if you are on the application side of this equation, it’s important to do everything you can to improve your chances.

UP Global, an organization that I’m on the board of which is the umbrella organization for Startup WeekendStartup EducationStartup Digest, and Startup Week, has just rolled out a new program called Startup Next. I participated in an early version of it and am psyched to see it ready for prime time.

Startup Next is a five week program that acts as a “pre-accelerator” – something between a Startup Weekend and a Techstars. Over the five weeks, there is a weekly three hour session. Through a structured approach of group discussions, mentor sessions, and weekly pre-work deliverables, startups walk away with the skills needed to validate your business idea, a clear understanding of your customer development strategy, a completed market and competitive analysis, a MVP and, an investor ready pitch deck.

Once the five weeks are over, the best teams get to present their companies to the heads of various accelerators. This is being done in partnership with the Global Accelerator Network which is a network of over 50 of the top accelerators in the world.

The accelerator route is not for every entrepreneur, as there are as many different paths to building a startup. But if you want to go through an accelerator, it helps to stack the deck in your favor and I think pre-accelerator programs like Startup Next can be really valuable, not only in helping you fine tune your business, but getting you broad exposure to some of the best accelerators in the world.

I’m excited to see my friends at UP Global and the Global Accelerator Network teaming up on this. And look for some magic accelerator stuff from FG Press coming in July.

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