TOMASZ TUNGUZ
venture capitalist at redpoint

The Three Layers of Management

Imagine you come across three builders working on the same project. You ask each the same question. What are you working on? The first says, "I lay one brick after the other." The second says, "I'm building a wall." The third, "I'm erecting a cathedral." What is the moral of this aphorism?

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Our Investment in Kustomer

We're excited to announce our partnership with and investment in Kustomer. Kustomer is a New York City-based company building the next-generation of customer support platform.

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The Blockbuster Software M&A Market of 2018

2018 is a blockbuster year for software M&A multiples. The prices companies fetch relative to their revenues surpass any of those in the past 7 years. Billion-dollar plus acquisitions in 2018 have commanded 17x trailing enterprise value to revenue multiple. Nothing in the past seven years is close. In fact, there is noqt a single acquisition in that range.

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Seven Strategic Rationales for the Microsoft/Github Acquisition

Last week, Microsoft acquired Github for $7.5B. It's a massive acquisition at a massive price relative to other software acquisitions. Why is Microsoft willing to pay so much?

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When You Hire an Executive, You're Hiring a Network

You've just raised a round of financing. Your next step is to build your management team. There are several criteria for finding the right executive. Competency in the field, cultural fit, communication skills, management experience. All of those should be obvious. There is one that is often overlooked. Network.

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The 5 Forces Driving Startup Valuations Today

There are five forces driving the startup ecosystem today. They are working together to reinforce a high valuation environment.

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The Most Important Book You'll Read All Year

Imagine you came across this ad. Scientists have discovered a revolutionary new treatment that makes you live longer. It enhances your memory and makes you more creative. It makes you look more attractive. It keeps you slim and lowers food cravings. It protects you from cancer and dementia. It wards off colds and the flu. It lowers your risk of heart attacks and stroke, not to mention diabetes. You’ll even feel happier, less depressed, and less anxious. Are you interested?

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When Will the Next Wave of UI Advances Happen?

Technology innovations swing to a pendulum's cadence. Sometimes innovations begin with infrastructure changes and reverberate up the stack. Other times, front-end engineers innovate at the application layer, which demand downstream changes in the infrastructure to scale. The last major epoch of front end evolution has celebrated its ten year anniversary. We're in a period of punctuated equilibrium. When will we see rapid speciation?

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An Ode to the OKR - How to Motivate Greater Ambition in Teams

I remember the first time I wrote an OKR (objective and key result) at Google. "You should set your goals so that you attain 70%. That's success," my manager told me. "Even better if you have a moonshot goal in there, with a 5% likelihood of success." I was uneasy with calling 70% goal achievement as success. The habits formed from 17 years of schooling and a 100 point scale run deep.

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A Crypto-Trading Uber Driver and a Billionaire's Spat over Candy - On The Importance of Sticking to Your Strategy

At Redpoint's annual investor meeting earlier this year, I quipped, "The day-trading taxi drivers of the dotcom era have been replaced by crypto-trading Uber drivers." But over the weekend, a grizzled Uber driver with a mane of grey hair and wind-and-sunburnt cheeks asked me about crypto. "Can you explain to me why public key/private key technology is important on the Blockchain?" He pointed out the Bitcoin ATM that charges 10% from his cigarette-infused Prius. "That's for suckers; Coinbase charges only 2%," he said as we whizzed past.

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