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MARCH 11, 2019

Photo by Juliette F on Unsplash Networking is a critical part of relationship building and there is no event more valuable to building relationships than the proverbial “breaking of bread” with people. I personally run many group lunches & dinners and I attend even more so I’ve developed a set of tips I often pass along in how to make these the most effective they can be.

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Both Sides of the Table

FEBRUARY 27, 2019

Most board meetings are administrative updates that accomplish very little other than inform board members about the performance of the company since the last board meeting. That’s certainly one function of every board but if your board is your “brain trust” and the people you can most use as a sounding board to help you make the toughest decisions in your company and if its the one group truly privy to your most confidential information and your hardest choices then it’s a shame if you don’t ge

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FEBRUARY 25, 2019

I’ve sat on many boards over the past 2 decades and seen my share of high-functioning boards and low-functioning boards. Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much.

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FEBRUARY 24, 2019

When you set up a board it is often initially a combination of the founders and the early investors. It can start 2–1 founders to investors and then sometimes moves to 3–2 but sometime around the A, B or C round the idea of “independent” directors comes up. This post sets out how I believe founders (and investors) should think about independent board members having worked with many of them for the past 20 years.

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FEBRUARY 21, 2019

Should All of Your Management Team Attend Board Meetings? The age old question for every startup is whom to involve in the board meeting. The reality is that there are some board meetings in which having a broad set of management present is a great idea and there are some meetings where in can be a hindrance. Photo by rawpixel on Unsplash The goal of the best run boards ought to be to balance information dissemination with using the brain trust of the company to guide critical decisions.

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FEBRUARY 20, 2019

One of the things that founders have the most angst about is whom they should have on their board and at what stage of the business. This is smart because amazing board members can be transformative with important advice and access and can also help attract other great board members (and team members). Bad board members can make business very unpleasant.

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FEBRUARY 6, 2019

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. “We’re in a new tech bubble!” some have pronounced. “Valuations are out of control” is the mantra of others. Others believe that new business models are emerging that could replace venture capital all together. Every year I try to answer the question of “what has changed in the Venture Capital industry” and this year my colleague Chang Xu and I took a deep dive through the data and

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FEBRUARY 5, 2019

Stacey Abrams Interviewed by Lisa Borders, CEO of TimesUp This past week Stacey Abrams spoke at The Upfront Summit in a 25-minute talk followed by a breakout town hall discussion. You may know that later today she will deliver the response to The State of the Union speech by the president. She was interviewed by Lisa Borders, CEO of TimesUp (who spoke separately, video will be released soon).

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AUGUST 5, 2018

I just returned from a week’s vacation in the mountains where I had almost no Internet access but was aware that Ronan Farrow had published a damning sexual misconduct article about Les Moonves, the Chairman & CEO of publicly traded company CBS Corporation. Now home, I finally had the chance to fetch the New Yorker from my mailbox and read the article in its entirety and it’s clear to me that Les Moonves needs to go and no doubt will go in the near future.

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JUNE 22, 2018

There are times to fight. No great startup has been built without getting one’s knuckles bloody at times. This is especially true because incumbents now know how much is at stake when they let a startup get a huge head start in a market. So if you’re in a battle, if you’re right, if you feel confident you can win and importantly if the prize for winning is worth the fight?

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JUNE 18, 2018

For Father’s Day I was watching the most heartfelt movies I’ve seen in a long time, “Won’t You Be My Neighbor.” It is a movie that will both lift you up with the possibilities of how much of an individual person can have a positive impact on masses of people as well as challenge you about what you’re doing to make the world a slightly better place. It is a movie that will have you laughing raucously and sniffling uncontrollably in joy and sorrow.

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Media Audience Conversion Hosting 187

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MAY 30, 2018

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

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Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

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MAY 21, 2018

I was recently with an entrepreneur and talking with him about his fund raising process. He was in a later-stage financing round and was talking with many investors. Some started asking him for very specific analyses to be completed on his data and wanted his company to crunch the numbers. I told him he shouldn’t bother and that it was likely a junior person at the firm whose job is was to find holes in the data / narrative.

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Term Sheet Later Stage Demand Email 217

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FEBRUARY 28, 2018

There has always been tension between CPG (consumer packaged goods) companies and the retailers who sell their products to consumers. If a consumer will pay a fixed price for a product or service then the battle over who gets the margin in any sale is between the person who merchandises a product and the person who manufactures it. This is an age-old marketplace tension where leverage often determines the value captured.

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FEBRUARY 22, 2018

At the recent Upfront Summit my partner Stuart Lander had the opportunity to show some California Love and interview three of the wealthiest Bitcoin owners, each of whom were some of the earliest owners in the asset class and who haven’t sold any of their holdings. It’s an extraordinary story ranging from Jaime who studies cryptography in college to Bryan who was early in selling products on Silk Road to Steven owns 179,000 Bitcoin worth more than $2 billion.

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DECEMBER 6, 2017

Time Magazine published its “person of the year” edition today and honored “the silence breakers” for speaking up and forcing our society to confront its position towards men in power exploiting their power for sexual gain. Real change is clearly needed. These brave women who have taken on personal risks and faced doubters to change the culture globally to stop sexual misconduct, harassment & gender bias deserve the recognition x1000 along with the many other women who have spoken up.

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NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. An alternate outcome that I also unfortunately observe in some cases are companies who had extreme early success with an initial product adoption but failed in key areas that limited the growth and therefore the ultimate financial outcomes.

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JUNE 19, 2017

One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is. That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management. Of course there is no right answer but it’s a function of how much capital you have raised, your prospects for raising more capital in the future, your growth rate and y

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Burn Rate Startup .Net Venture Capital 212

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MAY 17, 2017

I’ve been involved with several startups where a giant incumbent attacks you and tries to sue you out of existence. When you first receive the threat it feels like the local pizza shop when they first get a call from the local mafia boss and you can feel the shake-down coming. The first instinct is fear, then dread, then panic. You begin to think about how hard it will be to fund raise, sign customers, hire employees, etc. with the cloud of a lawsuit hanging over you.

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APRIL 12, 2017

The modern world is filled with constant distractions. Only those with maniacal focus on results and a willingness not to engage in every activity achieve extraordinary results. As executives we’re all seemingly accessible at any moment to anybody via email, Twitter, Facebook, LinkedIn or Text. We are over-intro’d and at the same time under-resourced in terms of staff to handle the barrage of in-bound requests.

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FEBRUARY 5, 2017

Glenn Beck holds court at the Upfront Summit with legendary VC Vinod Khosla and UCSD Chancellor Pradeep Khosla (not related) If you asked me a year ago when we were hosting the 2016 Upfront Summit the odds of Glenn Beck speaking at the next Summit I would have emphatically said ZERO. The first sign that there might be more to Glenn Beck than the impressions I had had from occasionally watching a clip from his show was when he wrote a very thoughtful piece about the Facebook algorithm and I was s

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DECEMBER 14, 2016

Today is amongst the proudest days I’ve had at Upfront Ventures — getting the chance to announce that Kevin Zhang has been promoted to Partner. Watching him develop over the past 4.5 years at Upfront has been both a pleasure and also has taught me a lot about venture capital. Kevin joined Upfront in 2012 as an Associate. We generally look for associates who are deeply quantitative, have great research & analytical skills and often have the tool kit for framing and making complex decisions.

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DECEMBER 12, 2016

Today it has been announced that I’m leading a $15 million funding round in Tact , a new generation of Enterprise Software company along with other investors including Microsoft Ventures and previous investors Accel and Redpoint Rather than just waxing lyrically about how great the company is I thought I’d provide some context about why I invested and also about a fundamental change I see in the coming years in the way enterprise software is used.

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NOVEMBER 17, 2016

I’ve had this conversation many times. A friend calls me up from: Boston, New York, Chicago, San Francisco, wherever and says, “I’m thinking about moving to Los Angeles (or SF, NY, etc) and I’d love to start interviewing. Let me know if you hear of anything interesting.” I usually slip into counsel mode and tell them it’s a lost cause unless they’re truly committed to living in that city and if they are they should move there first and job search second.

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NOVEMBER 12, 2016

This election has been hard on our country. I have had numerous conversations with people who struggle to call home and speak with family or friends because the divisions are too raw. These are people who now live in Los Angeles, San Francisco or New York City but grew up in Cincinnati, Central Florida, Utah, Michigan and similar places where their parents, families or friends may have different political views.

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NOVEMBER 9, 2016

The morning after. I Tweeted vociferously last night in my stupor and despair. Most of my tribe emoted publicly, too, any many more countless others texted me constantly in disbelief. I haven’t felt this way since 9/11. No — I’m not equating the two actions. I’m just telling you the depths of how this decision makes me feel. A number of people I don’t know told me on Twitter to “calm down” or “Everything will be OK.

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NOVEMBER 9, 2016

I received this email from a friend. He gave me permission to publish it but asked to do so anonymously. It was so thoughtful, so gracious, so explanatory — I felt you would all enjoy reading it. It’s from a startup founder. It’s unedited. “i read your tweets tonight, mark. i am there with you. i grew up in the suburbs of cleveland, ohio and i was hopeful because my high school buddies who live there and are conservatives told me they could never vote for hillary, but they couldn’t vote for trum

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Cleveland Ohio America Community 278

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NOVEMBER 6, 2016

It’s hard to feel any positives these days: We’re in the eye of the storm. We’re at peak anxiety. Maximum rancor. We’ve already blocked family members on Facebook or unfollowed obnoxious people on Twitter. We’ve scratched our heads at how one of Silicon Valley’s brightest could back a candidate so overtly racist. And we’ve pulled out our hair trying to explain how the FBI Director could have decided to weigh-in / non-weigh-in to an election 11 days before voting with what turned out to be a whol

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OCTOBER 15, 2016

I know the title “I promise you one of the most meaningful days of your life” sounds grandiose but I mean it and I hope you’ll read through to the end and choose to take one small, totally free action, that will change your life and likely those of others. On September 10th of this year I spent an entire day in California State Prison with people who had committed felonies and worked with them on business plans to help them create legal enterprise upon their release as part of Defy Ventures 6-mo

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OCTOBER 12, 2016

I was asked to be the host at this year’s CoachArt Gala of Champions event on October 27th at the esteemed Beverly Hilton hotel. The goal is to raise money to help children with chronic illness get ongoing instruction in sports, art, music or whatever endeavor would help them get fulfillment in life. You can book tickets here (or make a donation if you can’t make the event) If you happen to live in LA (or in the Bay Area — we’re only an hour’s flight) I would love if you would consider attending

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OCTOBER 11, 2016

Gregg Johnson, CEO of Invoca For the first 5 years or so after I became a VC I didn’t talk much about what I thought a VC should be excellent at since frankly I wasn’t sure. I was mostly doing my job and trying to figure out how to be better every day. After a decade on the job I’ve started to speak more openly when newer industry colleagues now ask me what I’ve learned.

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SEPTEMBER 14, 2016

I recently read a blog post by Beezer Clarkson, Managing Director of Sapphire Ventures about why entrepreneurs should care about from whom their VC funds raise their capital. I spent a bunch of time thinking about this position — especially since Beezer is an investor in Upfront Ventures. There are a lot of things I think entrepreneurs should care about when raising from a VC: How big or small their fund is?

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SEPTEMBER 1, 2016

Rolf Winkler wrote a piece in the WSJ about A16Z’s returns in which he says they “lag behind Sequoia, Benchmark and Founders Fund.” Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. Let me offer you an insider’s take.

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JULY 27, 2016

Density laser tracking above a doorway As I’ve written before I believe Computer Vision will become a major factor as a Human-Computer Interface (1) as sensors and cameras help us make sense of our physical world. There is so much in the media about “The Internet of Things” that it has lost meaning and for many for some strange reason it became a short-hand for wearables.

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Marketing Database Early Stage Artificial Inteligence 150

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JULY 6, 2016

I talk about failure a lot because I think it can be tremendously instructive and I think that success without failure often masks underlying lessons. I even prefer to fund entrepreneurs who have experience some level of set-backs in their careers or startups because I think it brings a humility to decision-making that I find healthy. I have experienced many first-time entrepreneurs with too much hubris if fund-raising came easily and press was fawning and employees joined in droves and customer

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JUNE 30, 2016

Amongst the most often asked questions I get from founders is, “How much money should I raise?” Reflexively founders want to raise as much money as they can because they figure it will give them more resources, better chances of competing and a longer runways before they have to do the often painful job of asking, yet again, for money. Every time you ask for money you’re faced with the possible of feeling literally and figuratively like a failure.

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Pre-Money Valuation Valuation Early Stage Startup 292

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JUNE 5, 2016

The funding environment for tech startups is an ever shifting ground as we go through predictable shifts that go hand-in-hand with the slowing of the overall market. The most important shift I would characterize as the market moving from “high conviction” and thus strong follow-ons to “limited conviction” and lots of gamesmanship / games of chicken … at your expense.

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