Tokens

Our friends Balaji and Naval penned a really nice primer on crypto-tokens. 

AVC readers have been hearing me talk about this new form of business model and fund raising mechanism for a while now and so it won’t be new to all of you. But even so, I think the way they lay it all out is really well done and I’ve sent it around to a bunch of people I know who are still trying to make sense of tokens.

If you want to give it a read, click here and check it out. 

Central European Summer Time (CEST)

The Gotham Gal and I have been married for thirty years this June and we are spending the next month in Europe celebrating that and all that has come from it.

Blog posts will be arriving central european summer time (CEST) until the end of June. 

And they will be about all sorts of things that may or may not have anything to do with technology and startups.

Now off to breakfast

Video Of The Week: What Is Kin?

Our portfolio Kik announced last week that they plan to decentralize their messenger app and monetize via a cryptocurrency called Kin. Here’s a video they put together explaining how it will work and why it is important:

Fun Friday: Cavs Warriors

Well we finally got to the matchup that it seems like we have been waiting all season to get to. It really wasn’t even close. These are the best two teams in the NBA by a lot and have been for three years now.

So, who is going to win, in how many games, and why?

I will go out on a limb, like I enjoy doing, and say Cavs in seven because LeBron’s will to win is simply greater than any other person playing basketball right now.

Kin

Our portfolio company Kik announced some big news today.

They are going to decentralize Kik and use a new cryptocurrency called Kin to build a business model around a decentralized Kik and, hopefully, attract other developers to build decentralized communities using Kin as well.

All of this is outlined in the Kin Whitepaper that was published this morning.

Here are the main parts of this plan:

Kin is a cryptocurrency designed to bring people together in a new shared economy.
Envisioned as a general purpose cryptocurrency for use in everyday digital services, Kin will be used for all transactions within the Kin Ecosystem. Implemented on the public Ethereum blockchain as an ERC20 token, Kin will serve as the basis of interoperability with other digital services in the Kin Ecosystem.

Kik will be the first digital service to join the Kin Ecosystem.
Kin will power a digital economy inside of the Kik app. With millions of users, Kik will drive mainstream consumer adoption of Kin, establishing fundamental value for the cryptocurrency. By natively integrating the Kin wallet into the app, it will instantly become one of the most adopted and used cryptocurrency wallets in the world.

The Kin Rewards Engine is an innovative cryptoeconomic structure intended to promote the use of Kin as a common currency.
Through the Kin Rewards Engine, Kin will be introduced into circulation as a daily reward, to be distributed among stakeholders by an algorithm that reflects each community’s contribution to the overall ecosystem. This economic structure will create a natural incentive for owners of other digital services to adopt Kin and become partners in the Kin Ecosystem.

The Kin Foundation will act as the non-profit governance body for the Kin Ecosystem. to build, enhance and monetize those services.
Over time, the Kin Foundation will ensure the delicate transition of the Kin Ecosystem into a fully decentralized and autonomous network.

As I said in the release that went out this morning, we believe cryptocurrency is the next important business model innovation in tech and Kik will be the first mainstream application to integrate a cryptocurrency. This could be a watershed moment for the blockchain sector.

I Paid $22.38 For This

This is a virtual good, called a Rare Pepe. I blogged about it a few weeks ago.

Hawkeye tweeted this at me a couple days ago:

And I liked it so I went into the Rare Pepe directory, found the card, and offered 1000 Pepe Cash for it.

1000 Pepe Cash goes for $22.38 right now in the cryptomarkets.

So I paid $22.38 for a virtual card that has no utility other than I can collect it (on my computer or phone), I can send it to someone else, I can sell it, and I can blog about it.

But the one thing I do know is that these are “rare”. There are only 391 issued right now. And that is verified on the blockchain.

Something to think about as it relates to digital media/digital art/digital music/etc which has been suffering from no scarcity value since the invention of the Internet.

Blockstack – A New Internet

The founders of our portfolio company Blockstack are ambitious.

What they have built and are announcing today is effectively a new Internet, powered by the blockchain.

This is what the Blockstack team is after:

A new internet needs to have security and safety as a core of its DNA. Applications and services cannot be owned and controlled by remote third-parties. We can build a digital world of truly peer-to-peer internet utilities not maintained by corporations, but collectively, by the people. We can build a digital world that encodes property rights, where we can own our data, and where the people are powerful.

Here is their blog post announcing the Blockstack Browser.

And here is my partner Albert’s blog post on the USV blog explaining why this is important.

Writing and Speaking

I got a lot of comments about the two videos I posted last week suggesting that I have nailed the art of public speaking.

I don’t know about that, I am my harshest critic.

But I do believe that writing regularly makes it so much easier to speak publicly in unscripted situations.

Writing forces you to work out your views and articulate them clearly and concisely.

Then when you are asked a question related to those views, you have already worked out the answer.

It is in the brain, waiting there to come out crisply and concisely.

I’ve been writing daily for going on fourteen years so that is a huge body of work, opinion, thought, and insight to be able to pull from.

My views have evolved over the years and so not all of that content is relevant at this point, but most of it is.

So if you have to speak publicly a lot, particularly in unscripted situations, I would suggest you write publicly regularly as well.

They work incredibly well together.

Can Do Vs Must Do

Over the past few months, I’ve been reminded about the difference between “can do” and “must do” and how companies often confuse the two.

With the abundance of capital sloshing around the tech sector, our portfolio companies often have the resources to do more than they can and should do. They greenlight a bunch of projects that are “can do” projects but not “must do” projects. And a number of not so great things happen when they do this, including but not limited to:

  • Core resources (like infrastructure, security, payments, design, product management) get stretched supporting so many efforts.
  • The team loses sight of the mission and strategy as so many projects are being tackled at the same time
  • Senior leadership gets pulled in many directions and loses alignment as a result
  • Projects slip or don’t ship at all, leading to malaise and morale issues
  • Headcount grows quickly to support all of these efforts, creating more management issues

I saw a presentation recently with a “plan” that had ten “near term focus items” on it. I told the person presenting the plan to me that I don’t think a plan should have more than three things on it. I am a big fan of the rule of three. I am not sure where I heard it but it says that you should not tackle more than three big things at one time, no matter how large your organization is.

But regardless of whether you have two, three, or four big efforts this year, you should test all of your initiatives agains the “must do” vs “can do” test. Just because you can do something doesn’t mean you should.

I’ve written about the importance of strategy and saying no. Strategy isn’t saying no. It is figuring out what is the most important thing for your company and deciding to focus on it and say no to everything else.

In order to figure out what the most important thing is, you need to understand your products, your customers, your market position, where things are going, and where you want to be in three to five years. Once you have figured all of that out, you can figure out what are the most important things you need to do in order to get there.

It is also true that the “most important thing” changes. My partner Albert told me that he thinks doing a startup is like playing a video game. Each level requires you to master one thing and once you do that, you level up and then there is a new thing to master.

I like that metaphor a lot even though it trivializes the company building process a bit. It is a very clarifying view on how you must think about things and prioritize things.

So if you are frustrated by the pace of development (and not just engineering development) at your company, I would suggest you think about how many things you are trying to do at the same time. If it is a lot, then run them by the “can do” vs “must do” test and kill all the things that are not “must dos”. That might even mean parting ways with people you don’t need, which is painful but often helpful.

Executing well on all of the “must do” things is the hallmark of a well run company. And that usually means that there aren’t many “can do” things on the roadmap at the same time.

Video Of The Week: My Talk With David Kirkpatrick at Techonomy

Last wednesday morning, I went to Techonomy NYC and talked with my friend David Kirkpatrick for about 30mins.

That conversation is below.

There is one gross misrepresentation in the talk. David and I were talking about my efforts to ignore Trump and I said that the Gotham Gal spends “two to three hours a day on that stuff” which is not anywhere close to accurate. She reads the NY Times religiously in paper form every day and does pay a lot more attention to Trump than I do, but it’s not anywhere near two to three hours. I apologize to her for suggesting such nonsense.