What my high school chemistry class taught me about startups

I don’t remember much of junior year chemistry class except the lab experiment in which we made fireworks. My lab partner and I doubled and tripled the amounts of strontium, potassium, calcium and other explosives specified in the instructions. Our firecracker dwarfed our classmates' in size and when we lit them after two unbearable weeks of baking, there was no question we misunderstood chemistry. We expected an inferno and were rewarded with a pathetic fizzle and a C-.

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How to succeed despite your every effort to fail

Startups are discovery teams - they venture into the abyss, like Shackleton, aspiring to cross the Antarctic, plant a flag and live to tell the tale. Because every expedition is unique, no one knows what will work: product features, marketing tactics, sales pitches, fundraising stories. Nor can the team fully anticipate the precipices and risks: competitive, legal, hiring, market timing and management risks.

A philosophy was put to me by a close friend this week. “Succeed despite your every effort to fail.” He meant founders must set lofty goals and challenge themselves and their companies to reach them. The product of such a policy is struggle and consistent failure.

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The startup hardware M&A market will be vibrant in 2013

Hardware competition is cut-throat. Walking through the halls of CES, every Android phone is identical. LG has copied each Samsung model. Because of the competition, tablet prices are plummeting - I saw a $49 7inch tablet (and some were giving Nexus 7s away for free with subscription. Not constrained to large competitors, startups like FitBit and Jawbone launched competing (and nearly identical) products within weeks of each other: the FitBit Flex and the Jawbone Up Even newer segments like gesture control of TVs or GoPro self-recording cameras are addressed by six competitors, many of them white-label.

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A CEO’s epitaph

There is no prouder boast, but also no better prescription, for executive leadership than the words Andrew Carnegie, the father of the U.S. steel industry, chose for his own tombstone: “Here lies a man who knew how to bring into his service men better than he was himself.”

Amen.

This epitaph captures succinctly so much of leadership: the ability to articulate a vision and convince others of the importance of that mission; the self awareness of knowing one’s strengths and weaknesses; the desire to be the dumbest guy in the room; and the capacity to build and maintain those relationships during a life’s work.

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Observations of the LinkedIn Influencer program

In December, I was lucky enough to be asked to become part of the LinkedIn influencer program. I jumped at the opportunity to bring my writing to a broader audience. And the experience has been eye-opening.

The influencer program asks a few hundred LinkedIn members to write periodic blog posts which are highlighted on the home page and in email marketing campaigns. LinkedIn staffed a fantastic editorial team who assists writers with content creation and editing, but most importantly, content marketing.

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The new marketers

In the last 12 years, marketing has been reinvented. No segment has benefitted more from this transformation than startups who have both created the new marketing and leveraged its skills to transform industries. These new marketers creating this wave have been so effective they can delay or even obviate the need for outside sales teams.

Historically marketing has been pseudoscience - an undisciplined hand-wavy concoction of story telling and a “throw stuff on the wall and see what sticks” mentality protected by unmeasurable results and three martini lunches.

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To Sell is Human

Daniel Pink, former speechwriter for Al Gore, has written an unconventional book on sales called To Sell is Human. In this well researched book, Pink observes a few surprising evolutions in society and their impact on sales.

The hard sell is dead. Enabled by the internet, prospective buyers know more about a product than a salesperson. This is true for cars as much as enterprise software. As a result, the salesperson no longer leverages an information asymmetry to sell a product. Instead, the salesperson must negotiate from the very first word, identify a customer problem and solve the problem using a product. Sales is evolving to consulting.

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We should be living in the future already

![image](https://res.cloudinary.com/dzawgnnlr/image/upload/q_auto/f_auto/w_auto/image_176_667353327" width="500px">

We should be living in the future already. I should be controlling my home lights from my phone. My coffee machine should reorder coffee from Amazon automatically and my washing machine should schedule its own maintenance.

This kind of future demands that machines act with human intelligence. I’m asking my coffee machine to think like me, so that I don’t have to.

But we aren’t living in this world yet because it requires the synchronized deployment of three of the most advanced technologies developed in the past 20 years: wireless communication, smart phones and machine learning.

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Fundamentals of communication

Communication is essential to the success of every startup. Startup teams collaborate in product and engineering conversations, in general management, and in recruiting. Externally, startups sell customers using marketing and sales. Startups also pitch investors during fundraising conversations.

Clearly, great communication makes demands of the audience. But effective communication is challenging.

One of my favorite communication tools is a framework created by management guru Peter Drucker of three fundamentals: perception, expectation and clear demand.

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Year in review: Best of 2012

About three years ago, I started journaling my startup education by blogging. In retrospect, blogging has been one of the most rewarding activities for me as an investor. Blogging helps me some observe changes in the start-up ecosystem, communicate trends primarily through data while strengthening and building relationships. It’s been more gratifying than I could have hoped.

Over the past year, quite a bit has happened on this blog. I’ve tried to write a post every working day on both tactical topics for startups like fundraising and management and macro/strategic subjects like the fund raising market and trends in mobile.

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