Making Progress

You can read all over the internet how hard it is to build a company from scratch.  There’s customer development which leads to product/market fit which leads to revenue which leads to profitability.  And that’s only if everything goes right.  It’s a challenge.

The analogy i always have in my head is a walk in the woods.  When you start a business, it’s like walking through a dense jungle.  You have a machete, hacking your way through the brush, and talking to whoever you can, trying to find a path.  Once you get a product and a sense of direction, you find a path, the walk becomes a little bit easier but, as they say, you’re not out of the woods.

As you talk to more customers and continue to develop your product, that path becomes wider and eventually turns into a dirt road.  Improving the sales and dev process plus hiring more help turns that road into a paved road and eventually, if everything goes right, it becomes a highway.

Each step of the way is exciting.  Right now at Kapost we’ve built a path and we’re working hard to turn that into a road.  It’s hard and challenging but it’s also damn fun.  We have a great team of folks and the daily progress we’re making is impressive.



Foursquare vs. Quora: which would you invest in?

I had an interesting debate at lunch the other day with Toby about which company we’re more bullish on between Foursquare and Quora. To paraphrase Hansel, both are “so hot right now.” Both raised money at a very high valuation (Foursquare raised $20 on $95 million and Quora  11 on 86), yet both provide reasons to be skeptical.

With Foursquare you have an extremely popular mobile location app.  However, most people don’t “get it” – as in they don’t see reasons for checking in everywhere they go, don’t live in a dense-enough location where it serendipidous run-ins are possible, nor do they want to share that information.

Then there’s Quora.  It has some obsessed users who are contributing very original and valuable content.  The online Q&A industry is a great segment of the web but there are questions of whether the site ever get attention from mainstream users.

For me, my money is on Foursquare.  It’s one of the few mobile apps that capitalize on a user’s geopgraphic location.  It’s fun to use and has a lot of untapped potential.  The integration with gas stations and Starwood hotels are just the tip of the iceberg for them.  I do feel that only 10 or 5 percent of users who register end up regularly using the service but as they continue to get good deals to entice not only new user acquisition but engagement they will grow and be successful.   One criticism i have heard is that Facebook places will take out Foursquare.  I don’t think so and ironically actually wrote a response of why on Quora.  In fact, you can see from this graph how FS’s growth has increased since then.

That’s not to say that i’m anti-Quora. I’m not.  I think it’s one of the best web UI’s I’ve ever seen and I do find it useful.  I just wonder about it’s mainstream appeal.  So, if both had a $100 million valuation and i had to put my cash on one, I’d place it on Foursquare.  What about you?


SXSW Review

Granted i was only in Austin for 2 days of the South by Soutwest festival, but here’s my take on it.

SXSW has now become a Spring Break for nerds. Similar to if you went to Daytona Beach for a real spring break and how you’d get sick of tequila and dance music, people at SXSW get overdosed of Apps, Twitter and the words “social” and “media”. With so many people shouting in your face, it had to tell what anyone is saying.

That said, here are some highlights:

  1. The group messaging apps were out in full effect.  GroupMe, Beluga and others were there.  These are fun apps.  My favorite is GroupMe and if you haven’t tried it – i recommend you do.  It’s a good way to keep in touch with people.   Here’s a good roundup of all the group messaging apps.
  2. Uber Cabs were everywhere.  They were the big winners of the show.  It was impossible to attend this year’s event and not hear of Uber.    Fantastic marketing job done by them.
  3. The gaming Keynote by Scavengr CEO was the talk of the weekend.  it’s nice to see a talk that’s well put-together and stimulating.  Gaming is in lots of apps, and with good reason.  If you can find the video of this, you should watch it (and tell me where it is so i can see it too).

Apple is Crushing It

Say what you will about Apple’s product and their company culture.  They can be closed (vs. Google’s “open”) and the company can be arrogant, but you have to admire how successful they are right now.  Their domination of the consumer electronics industry is just staggering.  Never before in my life have i seen a company firing on all cylinders like this.  It truly something to witness.

Let me give you some facts from their latest earning’s call this week.

  • The first astonishing statistic, is that Apple’s revenue grew 71% in the past year.  Large companies like Apple’s just don’t grow 70% year over year.  Apple is now on a revenue run-rate of more than $100 billion a year.  Just as amazing, it is expecting to grow another 60%+ in the first quarter of this year.

All their products are crushing it.

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We Are What We Choose

I didn’t post this last year but it has stayed with me.  It’s a great speech by CEO/Founder of Amazon, Jeff Bezos.  It’s the commencement speech to Princeton’s Class of 2010, delivered on May 30, 2010.   Choices are incredibly important and now, at the beginning of 2011, it’s good to step back and think about what choices we’ll make this upcoming year.  Here’s to you and me, building a great story also.  Read on….

As a kid, I spent my summers with my grandparents on their ranch in Texas. I helped fix windmills, vaccinate cattle, and do other chores. We also watched soap operas every afternoon, especially “Days of our Lives.” My grandparents belonged to a Caravan Club, a group of Airstream trailer owners who travel together around the U.S. and Canada. And every few summers, we’d join the caravan. We’d hitch up the Airstream trailer to my grandfather’s car, and off we’d go, in a line with 300 other Airstream adventurers. I loved and worshipped my grandparents and I really looked forward to these trips. On one particular trip, I was about 10 years old. I was rolling around in the big bench seat in the back of the car. My grandfather was driving. And my grandmother had the passenger seat. She smoked throughout these trips, and I hated the smell.

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Long-Form Content is Coming Back

I’ve noticed over the past year or so that the number of friends of mine who blog is decreasing.  I’m seeing less posts.  To me this is because Twitter and Facebook have taken all their thoughts.  The “I love Tron!” thoughts are now going into status messages and not into blog posts.  Which, to me, is fine.

But there’s actually been an increase in long-form posts i’m seeing.  The blogs i’m reading are full of actual articles of great stuff.  It’s great to get the “I love Tron” type comments on to Facebook and Twitter so the blog can hold longer form of actual thoughts and analysis.

I recently read a great article by Clive Thompson about just this topic.  His theory is that something more complex and interesting is actually happening.  He says, “The torrent of short-form thinking is actually a catalyst for more long-form meditation.”  He states, “We talk a lot, then we dive deep.”

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Quora is About to Explode

I’ve seen it before.  It happened with Twitter and with MySpace.  Sometimes there’s a confluence of media attention and star power that makes a website just explode – and that is about to happen to Quora.

If you haven’t heard of this website, enjoy this moment in time. It’s probably the last moment you won’t hear or read someone talk about this great new Q&A site that’s emerged.   By the end of 2011, Quora will be seen as one of the breakout hits.

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Steve Jobs: Designer First, CEO Second

I recently read a great interview by John Scully where he talks about Steve Jobs.  Scully was CEO of Apple for almost a decade.  It’s just a great read.  For anyone in the tech business, this is a story about our times about a man who more than anyone else has invented products that impact our lives.

Here are some good quotes:

The time that I first met Jobs, which was over 25 years ago, he was putting together the same first principles that I call the Steve Jobs methodology of how to build great products.

Steve from the moment I met him always loved beautiful products, especially hardware. He came to my house and he was fascinated because I had special hinges and locks designed for doors. I had studied as an industrial designer and the thing that connected Steve and me was industrial design. It wasn’t computing.

On Steve jobs being a minimalist:

What makes Steve’s methodology different from everyone else’s is that he always believed the most important decisions you make are not the things you do – but the things that you decide not to do. He’s a minimalist.

I remember going into Steve’s house and he had almost no furniture in it. He just had a picture of Einstein, whom he admired greatly, and he had a Tiffany lamp and a chair and a bed. He just didn’t believe in having lots of things around but he was incredibly careful in what he selected. The same thing was true with Apple. Here’s someone who starts with the user experience, who believes that industrial design shouldn’t be compared to what other people were doing with technology products but it should be compared to people were doing with jewelry… Go back to my lock example, and hinges and a door with beautiful brass, finely machined, mechanical devices. And I think that reflects everything that I have ever seen that Steve has touched.

Look at his apartment back then:

Steve on org structures:

The other thing about Steve was that he did not respect large organizations. He felt that they were bureaucratic and ineffective. He would basically call them “bozos.” That was his term for organizations that he didn’t respect.

The Mac team they were all in one building and they eventually got to one hundred people. Steve had a rule that there could never be more than one hundred people on the Mac team. So if you wanted to add someone you had to take someone out. And the thinking was a typical Steve Jobs observation: “I can’t remember more than a hundred first names so I only want to be around people that I know personally. So if it gets bigger than a hundred people, it will force us to go to a different organization structure where I can’t work that way. The way I like to work is where I touch everything.”

At his core, Steve is a designer:

The thing that separated Steve Jobs from other people like Bill Gates — Bill was brilliant too — but Bill was never interested in great taste. He was always interested in being able to dominate a market. He would put out whatever he had to put out there to own that space. Steve would never do that. Steve believed in perfection. Steve was willing to take extraordinary chances in trying new product areas but it was always from the vantage point of being a designer. So when I think about different kinds of CEOs — CEOs who are great leaders, CEOs who are great turnaround artists, great deal negotiators, great people motivators — but the great skill that Steve has is he’s a great designer. Everything at Apple can be best understood through the lens of designing.

More stories:

An anecdotal story, a friend of mine was at meetings at Apple and Microsoft on the same day and this was in the last year, so this was recently. He went into the Apple meeting (he’s a vendor for Apple) and when he went into the meeting at Apple as soon as the designers walked in the room, everyone stopped talking because the designers are the most respected people in the organization. Everyone knows the designers speak for Steve because they have direct reporting to him. It is only at Apple where design reports directly to the CEO.

Later in the day he was at Microsoft. When he went into the Microsoft meeting, everybody was talking and then the meeting starts and no designers ever walk into the room. All the technical people are sitting there trying to add their ideas of what ought to be in the design. That’s a recipe for disaster.

Microsoft hires some of the smartest people in the world. They are known for their incredibly challenging test they put people through to get hired. It’s not an issue of people being smart and talented. It’s that design at Apple is at the highest level of the organization, led by Steve personally. Design at other companies is not there. It is buried down in the bureaucracy somewhere

On being chosen as CEO over Jobs:

Looking back, it was a big mistake that I was ever hired as CEO. I was not the first choice that Steve wanted to be the CEO. He was the first choice, but the board wasn’t prepared to make him CEO when he was 25, 26 years old.

They exhausted all of the obvious high-tech candidates to be CEO… Ultimately, David Rockefeller, who was a shareholder in Apple, said let’s try a different industry and let’s go to the top head hunter in the United States who isn’t in high tech: Gerry Roche.

They went and recruited me. I came in not knowing anything about computers. The idea was that Steve and I were going to work as partners. He would be the technical person and I would be the marketing person.

The reason why I said it was a mistake to have hired me as CEO was Steve always wanted to be CEO. It would have been much more honest if the board had said, “Let’s figure out a way for him to be CEO. You could focus on the stuff that you bring and he focuses on the stuff he brings.”

Remember, he was the chairman of the board, the largest shareholder and he ran the Macintosh division, so he was above me and below me. It was a little bit of a façade and my guess is that we never would have had the breakup if the board had done a better job of thinking through not just how do we get a CEO to come and join the company that Steve will approve of, but how do we make sure that we create a situation where this thing is going to be successful over time?

My sense is that when Steve left (in 1986, after the board rejected his bid to replace Sculley as CEO) I still didn’t know very much about computers.

My decision was first to fix the company, but I didn’t know how to fix companies and to get it back to be successful again.

All the stuff we did then were all his ideas. I understood his methodology. We never changed it. So we didn’t license the products. We focused on industrial design. We actually built up our own in-house design organization, which they have to this day. We developed the PowerBook… We developed QuickTime. All these things were built around Steve’s philosophy… It was all about sales and marketing and the evolution of the products.

All the design ideas were clearly Steve’s. The one who should really be given credit for all that stuff while I was there is really Steve.

And there’s more.  As i said, it’s just a great read.

Everything is a Remix

I just saw a great video that breaks down Led Zepplin and how many of their tracks were stolen from other tracks.  While interesting, it makes the larger point which i completely agree with that “everything is a remix” today and it always has been.  Taking previously created content and altering it to make something similar but also original and unique is what art’s all about.

Over the past few years, i’ve grown to love the music mashup which is when a DJ takes two or more (sometime a dozen) songs and mixes them all together to create a new song.  Some of my favorites have U2+a rap song, an instrumental with Star Wars soundtrack, and 80’s classic with Jay-Z (links to all songs are below).  I’ve noticed a few things: (a) that listening to these tracks is totally different than listening to the original, even though they sound extremely similar; (b) the best music mashups have a classic rock backbone and then from another tune faster lyrics on top of it.

Mashups and remixes of all kind are all over.  I’m seeing it in TV shows, for instance in The O.C. where they did an episode just like the Spider Man movie or when Avatar recycles the plot from Dances With Wolves.  Everyone has biases and influences so it’s rare to find something truly original.  Even when copying though, you are creating something new.  When Twitter launched, people thought it was just a copy of the News Feed application that was just one part of Facebook ,but it’s grown into something completely different than Facebook.  I always thought a cool movie idea would be an entire movie and narrative but every lined used is from another film.  Some lines are famous, and others wouldn’t be as recognizable. I think it’s a cool thought.

I’m pro-remix.  I think more people should try it.  Personally, I have a goal for myself over the next 12 months to actually create a music mashup of my own where i can actually use the tracks i enjoy the most to make something original.   I’ll let you know how it goes.

Here are my favorite music mashups that i’ve posted on my music blog where i post one good song every weekday: