NYC’s FinTech Innovation Lab

Applications are open for New York’s seventh annual FinTech Innovation Lab, a 12-week program that I have blogged about a bunch here on AVC. This proram is for early and growth stage companies that have developed cutting edge technology products targeted at financial services customers. The program has a particular interest in: Augmented/ Virtual Reality; Data Analytics using Artificial Intelligence/Machine Learning; Digital Customer Engagement Tools; Enterprise Dev Ops; RegTech; Security, and other Disruptive Financial Services Models.  For a complete list of focus areas, click here.

The FinTech Innovation Lab is run by the Partnership Fund for New York City and Accenture. Accepted companies will get the chance to refine and beta test their financial technology products in New York City in partnership with the world’s leading financial services firms and receive mentorship from the Lab’s Entrepreneurs Network.

Through a competitive process, the chief technology officers of the participating firms will determine which proposals are accepted for further development and deployment. The participating firms are:  AIG, Alliance Bernstein, Ally Financial, Amalgamated Bank, American Express, AQR, Bank of America, Barclays Capital, BBVA, BlackRock,  Capital One, CIT Group, Citi, Credit Suisse, DE Shaw, Deutsche Bank, Fidelity, Goldman Sachs, Guardian Life Insurance, JPMorgan Chase & Co., KeyBank, MasterCard, Morgan Stanley, New York Life Insurance, Pitney Bowes, Rabobank, Scotiabank, Synchrony, UBS and Wells Fargo.  Several venture firms also support the Lab, including Bain Capital Ventures, Canaan Partners, Contour Venture Partners, Nyca Partners, Rho Ventures, RRE Ventures, and Warburg Pincus.

For more information sign up for their information session on Monday, November 7, 2016 from 5:30 – 6:30 PMRegister

Application deadline is December 1, 2016APPLY

What Are App Coins?

Last week Coin Center published a primer on app coins. It is very good.

I particularly like this part:

Open platforms have proved difficult to create because it has been historically difficult to monetize them even if they become successful—by nature they are public goods. Now, however, the developers of a cloud storage service can incorporate a scarce access-token, an appcoin, into the design, distribute that token to users, retain some amount of the token for themselves, and if the platform proves popular, the token (alongside the holdings of the developers) will grow in value and remunerate the developers for providing a public good. This new model challenges the concept of equity as traditionally understood, and carries entirely different risks and rewards.

The idea that we now have a monetization model for creating and maintaining a public good (ie Twitter) is something that makes me incredibly happy and poses all sorts of interesting questions about the future of venture capital.


I read this story about how hackers got into Colin Powell and John Podesta’s emails.

It is somewhat shocking to me that Google’s algorithms allowed fake emails from Google to get into a Gmail user’s inbox.

One of the many reasons I use Gmail over any other email service is its algorithms that keep spam and malicious emails out of my inbox. They have done a remarkably good job of that for me over the ten(ish) years I’ve been on Gmail.

This is not only a black eye for the Clinton campaign and Colin Powell. It’s a black eye for Google and Gmail.

I hope they take this as a challenge to improve their anti-phishing algorithms.

Some Thoughts On Airbnb’s Struggles In New York State

As many readers likely know, this week New York State Governor Andrew Cuomo signed a bill called S6340A/A8704C, which will levy heavy fines on individuals who advertise short-term rentals of residential multiple dwelling units in New York. This ends an effort that lasted several months to convince the Governor to veto this bill which was passed by both legislative bodies in Albany earlier this year.

Airbnb promptly filed a federal lawsuit as the New York Times reported. The Times piece states that:

In its lawsuit, filed Friday afternoon in Federal District Court in the Southern District of New York, the company contends that the law violates the company’s constitutional rights to free speech and due process, as well as the protection it is afforded under the Communications Decency Act, a federal law that says websites cannot be held accountable for content published by their users.

It is possible that this matter will be settled by the courts.

But it is my hope that, instead, calmer heads will prevail and New York State will pass sensible legislation that allows short term rentals when the tenant or owner is not present.

Airbnb has proposed a five point plan that attempts to address many of the issues that New Yorkers have with short term rentals.

This proposal is similar to legislation that has been adopted in large urban cities like Chicago.

There are many reasons why the current situation is not ideal for anyone. Most people living in apartment buildings don’t like the idea of an Airbnb in their building. It is also problematic when landlords to take apartments off the rental market and create illegal hotels. And landlords need a way to enforce the rules outlined in their leases.

On the other hand, many New Yorkers use income from short term rentals to allow them to afford an apartment in NYC when they have jobs that require them to travel extensively. There are also many New Yorkers who rent their homes during busy periods to make some extra income.

An outright ban on short term rentals is a bad thing for many New Yorkers.

I am certain there is middle ground to find a compromise that addresses the legitimate issues while allowing short term rentals to continue. And I am hopeful that will eventually happen.

Both sides are to blame for where we are right now. Airbnb allowed the NY short term rental market to emerge over the past seven years without sufficient concern over the negative impacts of unregulated short term rentals. It took way too long to engage in a real and substantive discussion with legislators and regulators and when it did, there was a lot of bad blood between both sides.

On the other hand, the hotel unions and the real estate industry have used their significant clout in Albany to push for a law that is overly restrictive and hurts many New Yorkers. And they got the legislature and the Governor to support it. It shines a bright light on the kind of back room dealing that voters are sick and tired of, in Albany and all around the US.

I would urge the Governor to provide some leadership here now that he has satisfied the legislature by signing their deeply flawed bill. There is a proposal on the table from Airbnb to regulate short term rentals sensibly. The Governor and the legislature should engage with that proposal. And the real estate industry should engage as well. Short term rentals can be a good thing for them too.

I am confident that we have not seen the end of Airbnb and short term rentals in NY State. If calmer heads prevail we can get short term rentals that make sense for NY State and NY City. And that is what we should do.

Fun Friday: Cubs Fever

My friend Dave sent me this hat a few days ago:


I hope to be wearing it for the next week and a half.

The Cubs have not won the World Series in 108 years.

Unless you are a Dodgers or Indians fan, I think you have to get on this bandwagon.

Do you all agree?

A New UI For Coinbase

For those of you who buy and sell and hold Bitcoin and Ethereum at our portfolio company Coinbase, there is an entirely new redesigned UI for you at It will be rolled out to all of the users in the next couple weeks.

Here’s screenshot of what the new dashboard looks like:

The redesign was driven by the move from a Bitcoin only service to one that supports multiple digital assets. Today that means Bitcoin and Ethereum but over time it will likely mean many more digital assets. Literally a coin base.

Fortune did a nice writeup on the new UI (which is where I got that screenshot) and also talked about the evolution and growth at Coinbase in the past year.

It is nice to see an awakening in the media to the changes afoot in the blockchain sector. Coinbase has been riding those changes and has seen strong revenue and customer growth over the last year as a result. As more and more people buy and hold digital assets, they are going to need a trusted, safe, and compliant place to buy them, sell them, and hold them. Coinbase continues to be the best place to do all three of those things.


I like what Larry Lessig wrote here about leaks, particularly this part:

Neera has only ever served in the public (and public interest) sector. Her work has always and only been devoted to advancing her vision of the public good. It is not right that she should bear the burden of this sort of breach.

If we needed to add more reasons why someone would choose to avoid public service, we now have one more – wikileaks will out your emails and embarrass the hell out of you.

There was some stuff about me in the Clinton leaks. There was some stuff about me in the Sony leaks. I’m with Larry. I don’t care to have that stuff outed. And I understand how people talk about others privately. That’s how it is. I am not upset at anyone at Sony or the Clinton team for what was leaked. That’s life.

But I do think wikileaks has gone overboard here. There is, as Larry says, a difference between leaks of substance and leaks of embarrassment. Let’s try to keep the leaks to stuff that matters and avoid the petty stuff please.

Enjoying The Struggle

The NY Times has a great longish piece on David Letterman today.

This quote got my attention:

Maybe life is the hard way, I don’t know. When the show was great, it was never as enjoyable as the misery of the show being bad. Is that human nature?

Building companies includes a lot of “misery of the show being bad” as David Letterman puts it.

And I really love the idea that you can enjoy that struggle.

Obviously you want the “show” to be great, but his point is that greatness is fleeting and you have to go through a lot of bad shows to get to some good ones and you’d better figure out how to enjoy that struggle, as he and his team did.

Good advice for all of us who hang out in startup land.


I think selling is the hardest part of investing. Buying is, of course, critical to generating strong investment performance. Figuring out what to buy and when to buy it is what most people think of when they think of investing. But your returns will have as much to do with selling as buying. And buying is a fairly rational decision. Selling tends to be emotional. And that is why selling is the hardest part of investing.

In venture capital, thankfully, VCs don’t drive a lot of the sell decisions. I wrote about that back in 2009. Most sell decisions that really matter in a venture portfolio will be made by the founders and management of the portfolio company, including the timing of the public offering if that is where a company is headed.

But even so, I have struggled with the sell decisions, both personally and professionally, over the course of my career. I have held on way too long and watched a publicly traded stock literally go all the way to zero without selling it (ouch). And I have made the even worse decision of selling too soon and watching a stock go up three, four, five times from where I sold it.

So where I have landed on selling is to make it formulaic.

If we (USV) have to make a sell decision, we like to have a policy and stick to  it. We like to distribute our public positions as soon as we can, for example. That’s a policy and we stick to it. If you look at the SEC forms we have filed as a firm over the years, you can see that is what we do. It is a formula. It doesn’t mean that it is the right decision in each instance, but it does mean that, if we stick to it, we will do the same thing every time and the law of averages will work things out. We also let the people we work with know that is our policy so they are not surprised by it. What is worse is to make each decision emotionally and get them all or most of them wrong.

Personally, I like to dollar cost average out of a stock (sell a position over time instead of all at once) and I also like to hold onto some of the position for the very long term (schmuck insurance). I have a formula for the disposition of public stocks I get via distribution from USV and the other VC funds we are invested in. We execute the formula time and time again. It takes the emotion out of the decision and it works better for us.

The thing I have learned about selling is that it is almost impossible to optimize the sell point. You need a crystal ball and you need to know something that others don’t know. That is either impossible or criminal. So I don’t try to optimize it. I try to make it formulaic and systematic. It works better for me and I think it may work better for you too.