Posts from May 2005

Getting A VC Job

How do you get a job in VC?

It’s the second most common thing people ask me (after how do I get a VC to invest in my business?).

The truth is the odds of both are about the same.  Very long.

And as hard as I try, I really can’t help most of the smart, capable young people who come to my office asking me that question.  The demand for VC jobs is way in excess of the supply and probably always will be.

So I was pleased to see the blog post from Seth Levine of Mobius Venture Capital on this subject.

Seth has some good thoughts on the subject.  The best is the way he explains the economics of an entry level position in the VC business.

As a non-partner you are
fundamentally a cost center. The
partners are quite literally taking money out of their own pockets and giving
it to you. Rationally, they will only do
this for one of two reasons – either you are significantly impacting their
lives in a positive way that makes the trade-off worthwhile for them (you cost
less than the marginal life benefit they get from having you around) and/or you
will help create more carry (i.e., they can manage more deals with you around
and therefore deploy more capital; you have a skill set that will positively
affects the portfolio, etc.). If you
fail to do these things you are just eating up management fees.

Seth’s got this right.  VC firms are owned and operated by the partners.  They are small businesses where the profits flow to the partners.  Hiring decisions are very rational in this kind of environment.

#VC & Technology

Buzzmachine LLC

I am glad to see that Jeff finally did it.  He’s left the comfort of a traditional job and a regular paycheck to explore a bunch of opportunities revolving around his passion – citizen’s media.

I am a huge believer in freeing people from the straightjacket that is corporate america to create, innovate, and move the things they care about forward.  Jeff’s been doing that for years with Buzzmachine the blog.  Now we have Buzzmachine the business. 

It’s about time Jeff.  Welcome to the being your own boss.  I am sure you’ll love it.

#VC & Technology

My 50 Favorite Albums (continued)

Bring_the_familyReaders of this blog know that family is important to me.

And there are a lot of songs about family but there is one album that is the definitive record on the subject for me.

It’s called Bring the Family and it was recorded by John Hiatt in 1987.

The supporting cast on the record is awesome.  Ry Cooder on guitar. Nick Lowe on bass. Jim Keltner on drums.

But its the songs that make this record so powerful.  The record starts out with Memphis in the Meantime which has a fantastic groove.  Most everyone’s heard Bonnie Raitt’s cover of Thing Called Love, but it was written by John Hiatt and recorded on this record first.

But its about halfway through when the record starts to really shine.  Lipstick Sunshine with the fantastic slide guitar is a great warmup for what’s next.

Have a Little Faith in Me is one of the greatest songs ever written, period.  I get choked up every time I hear it.  I honestly don’t know Hiatt can sing it without breaking down.

Other highlights include Tip of My Tongue and Your Dad Did.

I have listened to this record so many times I couldn’t even guess the number.  It’s a great record that I never tire of and its overdue in the top 50.

Rhapsody Link: Bring The Family.

#My Music

Pier 96 Park

Img_0183I have been riding up and down the west side highway for years.  And it seems like they have been building the Pier 96 boathouse and park for as many years.

It’s located right next to the ramp to the west side highway at 57th Street.

Today on my ride up the west side I was stunned to find the fence down and the little park open for business. 

Img_0185It’s not large, but it is beautiful.

My favorite thing is this cool bottle shaped submarine thingy.  I have no idea what it is, but I like it.

Apparently Charlie is going to be offering some kayaking trips at the boathouse this summer.  I encourage everyone to go for a ride with him.

#Photo of the Day

Tag My Posts

I added a little bit of code to my Typepad template today and now you can tag my posts in del.icio.us.

At the bottom of the post, where you can click to comment or get a permalink, you can now click to tag the post.

If you are a del.icio.us user, that’s all you need to know.

If you aren’t a del.icio.us user, you’ll be taken to a login page where you can sign up.

So why do you care? 

Well tagging the Internet is an interesting phenomenon. The audience generates the index.

If you are a del.icio.us user, please tag my posts.

If you aren’t, give it a try.  I think you’ll find the experience eye opening.

#VC & Technology

Cold Roses

Cold_rosesJason Chervokas commented on my spiff post that the second disc of the new Ryan Adams record, Cold Roses, is great.

That’s blogging.  A post on XSPF generated a comment that makes me go to Rhapsody and play some new music I haven’t heard.

Here is Jason’s blog post on Cold Roses.

You know what.  Jason is right.  It’s just fantastic.  I have never listened to Ryan Adams very much.  I liked Whiskeytown but we don’t own any of his solo records.

And Jason is also right about the first disc.  There are only a couple good tracks on it. 

But the second disc.  Wow!  The back to back numbers, If I Am A Stranger and Dance All Night, are stuck in my head and I can’t get them out.

If you like alt-country with a little hint of the Grateful Dead, this is the record for you.

Rhapsody Link: Cold Roses.

#My Music

VC Cliche of the Week

Q. What is the venture capitalists’ favorite sight coming into his office?

A. A serial entrepreneur.

What is a serial entrepreneur?  It’s a person who can’t stop starting companies.  A person who has done it at least two or three times.  A person who has been very successful at starting companies and enjoys doing it so much that they can’t stop themselves.

I’ve said this before and I’ll say it again.  The raw material for venture capital is entrepreneurs. Without them, we have no business.

So the ones who are the most experienced, the most passionate, and the most successful are the diamonds of the raw material of the venture capital business.

I love serial entrepreneurs.  I haven’t met a VC who doesn’t.

I was insprired to make serial entrepreneurs my cliche of the week by this blog post on Artists vs. Entrepreneurs.  Here is the part of the post that inspired me:


there emerges a huge problem- entrepreneurs are indeed
very much like recording artists- except they get far worse of a deal.
Whilst painters, musicians and sculptors may have the opportunity to
produce hundreds if not thousands of works prior to seeing maybe three
or four become really valuable and accepted, entrepreneurs are limited
by nature of their art to making maybe four to six works over their
career.

Whilst of course the above is not news for anybody, this severe
concentration of risk that entrepreneurs face is a huge, huge problem-
probably not for the economy- but for entrepreneurs them selves. Can
you imagine if the Beatles produced one record in the beggining of
their careers and refused to make anymore because that make would mean
they were unfocused? I think, over time, an approach that effectively
deals with uncertainties faced by founders will creep in to become a
more widely accepted way of doing business.

I agree with the person (in australia?) who wrote this post.  The best serial entrpreneurs will probably figure out how to do more than four to six startups in their careers, but the four to six number is probably a good one to work with.

The upside for entrepreneurs on each deal is a lot higher than the VC’s upside, but the portfolio diversification that VCs get is a lot more attractive than the "concentration risk" that the entreprenerus face.

This makes me think that serial entrepreneurs do it for the fun and passion not so much for the money.  Every day, I wake up and thank god there are people who love starting companies so much that they accept the risk and go for it, time and time again.

#VC & Technology