Contact: Danielle D’Agostaro RELEASE: May 23, 2017
ALCHEMIST ACCELERATOR ADDS JUNIPER NETWORKS AS BACKER
Juniper Networks Joins Alchemist Accelerator’s Second Round Fund as Backer
San Francisco, May 23, 2017 – Alchemist Accelerator, an accelerator dedicated to enterprise start-ups, today announced that Juniper Networks has joined Analog Devices, Cisco, Ericsson, GE, and Johnson Controls as a backer in the accelerator’s second fund. This brings the total fund to $6.5 million.
Alchemist Accelerator is a six-month program, accepting about 20 companies every four months. On average, accepted companies receive $36,000 in seed funding. Alchemist structures the program around mentorship, sales and fundraising to help early-stage companies raise their seed or series A round and secure their first few customers.
Many founders who have gone through the program would agree that a major perk of joining Alchemist comes from the large network of high-caliber experts and coaches who mentor Alchemist founders.
“We are thrilled to have Juniper Networks join as a backer of Alchemist. Few companies think as deeply about next gen trends in AI, cloud, analytics, and networking – all core areas to Alchemist – as Juniper does. We are excited to have Juniper join the Alchemist family,” said Ravi Belani, Founder and Managing Director of Alchemist.
Since the debut of Alchemist’s first class in January 2013, 14 Alchemist companies have been acquired (including Cisco’s acquisition of Assemblage and Dropbox’s acquisition of Mobilespan). More than 50 percent of its graduates have gone on to raise significant seed or institutional funding rounds. The average raise of these companies is $2.6 million. Many of these are from the top venture capital firms in the valley, including Andreessen Horowitz, Bessemer Venture Partners, Draper Fisher Jurvetson, Foundation Capital, Founders Fund, Greylock Ventures, Menlo Ventures, Redpoint Ventures, Social + Capital Partnership and True Ventures. The complete list is provided here.
“At Juniper Networks, we believe that venture investment is an integral part of our innovation engine. Alchemist fills a gap in our portfolio strategy, acting as a vehicle to invest in seed-stage companies, a stage we are eager to participate in,” said Rita Waite, Investment Manager at Juniper Networks. “We are thrilled to be joining Alchemist Accelerator as a backer and look forward to working with Alchemist start-ups and its network.”
Today, Alchemist held its 15th Demo Day at Juniper Networks in Sunnyvale in conjunction with the announcement. They were joined by more than 200 customers, partners and investors. The event debuted 18 companies.
Anyone interested in getting involved as a mentor, investor or customer or members of the press, should fill out this form: https://vault.alchemistaccelerator.com/register-profile.
For more information on the accelerator, please visit http://www.alchemistaccelerator.com/.
The Alchemist Accelerator is a new venture-backed initiative focused on accelerating the development of seed-stage ventures that monetize from enterprises (not consumers). The accelerator’s primary screening criteria is on teams, with primacy placed on having distinctive technical co-founders. The accelerator seeds around 60 enterprise-monetizing ventures / year. Over 50% close institutional rounds within 12 months of their Alchemist Demo Day[LM1] .
[LM1]I removed our boiler plate and media contacts. This is a third party release distributed by Alchemist without our ticker or a classified joint release.
Contact: Danielle D’Agostaro RELEASE: DATE March 3, 2017
ALCHEMIST ACCELERATOR ANNOUNCES FOCUS ON INVESTMENTS IN COLLABORATION
Cisco Investments will continue as an investor in Alchemist’s new fund
San Francisco, Calif., March 3, 2017– Today, Alchemist Accelerator announced that it will be focusing a part of its new fund on early-stage collaboration startups. This includes startups that integrate with the Cisco Spark Service or use Cisco Collaboration APIs to enable voice, video and messaging.
Earlier this year, Alchemist Accelerator announced their new fund. Today, Cisco Investments, an existing Alchemist investor, joins the investors in Alchemist’s new fund. Cisco Investments had invested in Alchemist’s prior fund, which focused on accelerating the development of a number of seed-stage ventures. As part of that fund, Alchemist ran an Internet of Things focused accelerator that helped encourage IoT entrepreneurs and startups through funding, mentorship and resources.
With today’s announcement, Alchemist will expand its focus and support to early-stage innovation within collaboration. Cisco Investments and Alchemist will work together to identify, invest in and develop early-stage startups that focus on enabling collaboration in the enterprise. Alchemist will also dedicate a portion of their fund to invest in early-stage startups that are part of the Cisco Spark ecosystem. Cisco is making this investment via the Cisco Spark Innovation Fund it announced last March. Cisco Spark is the industry’s first integrated and cloud-based collaboration service. It provides users the ability to call, message, and meet, and access those services with apps, cloud-connected hardware, and a rich set of cloud APIs. These APIs, at developer.ciscospark.com, are the integration point for investments from Alchemist’s fund.
“Our relationship with Alchemist has given us exposure to a wide variety of enterprise startups,” said Rob Salvagno, head of Cisco Investments and vice president of Cisco Corporate Development. “With this new fund, our goal will be to support a new generation of startups that are disrupting the collaboration industry by developing new features and functionality on top of Cisco Spark.”
The Alchemist Accelerator is a six-month program, accepting about 20 companies every four months. On average, the companies that are accepted receive $36,000 in seed funding. Alchemist structures the program around mentorship, sales, and fundraising to help early-stage companies raise their Seed or Series A round and get their first few customers.
Anyone interested in getting involved as a mentor, investor or customer or members of the press, should fill out this form: https://vault.alchemistaccelerator.com/register-profile.
For more information on the accelerator, please visit http://www.alchemistaccelerator.com/.
About Alchemist Accelerator
The Alchemist Accelerator is a new venture-backed initiative focused on accelerating the development of seed-stage ventures that monetize from enterprises (not consumers). The accelerator’s primary screening criteria is on teams, with primacy placed on having distinctive technical co-founders. The accelerator seeds around 60 enterprise-monetizing ventures / year. Over 50% close institutional rounds within 12 months of their Alchemist Demo Day.
“The only constant is change.” It’s an adage that goes back 2500 years to the Greek philosopher Heraclitus. But never has it been as true as it is today. Technology adoption is growing exponentially, driving change at a dizzying pace. Billions of devices are connecting to networks — most of them the sensors, controllers, and machines that power the Internet of Things (IoT). You probably see the rapid growth of connected devices in your own organization: on the manufacturing floor, in your logistics system, hospital or retail store. But are you seeing the corresponding business impact generated by connected processes and business models enabled by IoT?
Over the last 25 years, organizations have had to reinvent themselves every three to seven years to keep up with the pace of change. Companies that missed one technology transition might scramble to catch up, but missing two meant a slow fade to obscurity, irrelevance, and death. Just think about the rapid evolution from records, to cassettes, to CDs — with each transition creating new winners and losers. Today, the evolution has come full circle as digital streaming services have made any kind of physical media obsolete.
That kind of relentless change threatens the survival of many businesses. According to The Boston Consulting Group, only 19 percent of S&P 500 companies from 50 years ago are still in existence today. How can you ensure the survival of your business?
A new generation of leaders, makers, thinkers, and doers is meeting that change with flexibility and optimism, and transforming it into opportunity. In my upcoming book, Building the Internet of Things, I call these pioneers “Generation IoT.” These are the people who see the transformational power of IoT-driven processes, business models and new revenue streams. They are eager to champion and drive these opportunities in their organizations. These people know that IoT is not just one project, one training session, one change. They know that in order to succeed they and their organizations need to adjust and re-learn, over and over again.
Generation IoT is first defined by openness — open standards, open collaboration, open communications, and open, flexible business models. Members of Generation IoT can be found in IT or operational technology (OT). They can run the plant, or be part of the supply chain. They can be vendors, contractors, or CXOs. They can be young or old. All are willing to learn and take risks, and are good at building virtual teams internally and partnering externally. You can recognize these new winners not by their age or their titles — but by their ability to build and deploy agile, flexible business solutions.
Here’s an example: a decade ago, visionaries talked about mass customization — building mass-produced products to each individual buyer’s specifications. But it was difficult to implement efficiently and proved to be an idea ahead of its time. Today, IoT makes this concept much more practical and cost-effective because information can be shared in real time between every element in the supply chain. Buyers can click on the components they want. Suppliers and logistics providers can see what is being ordered and adjust their scheduling accordingly. Production systems can be retooled as needed. With the information flowing up and down the supply chain, all the necessary materials are at the production line when that customer’s order is being assembled, whether it’s a car or a three-piece suit.
With IoT, mass customization is not just a future possibility — it’s starting to happen. Daihatsu Motor Company is already using 3D printers to offer car buyers 10 colors and 15 base patterns to create their own “effect skins” for car exteriors. Each car rolls off the line customized for that individual buyer.
The key question — and it’s the focus of both my book and this blog series — is how it’s all supposed to happen.
Yes, vision is important. Pointing your organization toward where and how it needs to transform itself is key. But the road to realizing such vision is a multi-year, multi-phased journey and it starts with you successfully tackling one of today’s business problems. A low-risk, small project based on a well-established use-case is all that is needed to get going. Armed with the initial success, you can then pick a more complex problem and an IoT solution that will also have a bigger impact. IoT is a journey.
Along the way, you will break down silos and build understanding and cooperation among IT, OT, supply chain and finance. You will also bring in an ecosystem of partners for a complete, converged solution. The good news is that thousands of your peers have already started on the IoT journey. Based on their experiences, a set of best practices has emerged:
• Have a big vision, but start with a small project using one of the four fast payback scenarios I outline in my book: connected operations, remote operations, predictive analytics, and predictive maintenance.
• Build you own business case by comparing industry benchmarks with your own total cost of ownership data.
• Get a C-suite sponsor, because you are not implementing one IoT project, you are starting on the journey that will transform your organization, your industry, and your career.
• Build a cross-functional team; you need complementary skills, so maximize the chances of success by building support and buy-in across your entire organization.
Finally, recognize that we’re all relatively new at this. None of us have spent our careers on IoT — not yet. You can be an extremely valuable member of this transformation with the skills you have today. Whether you’re in Generation X, Y, or Z, you can be part of Generation IoT. Stay tuned for my next blog, where I’ll take a closer look at the four fast-payback paths to IoT.
- Maciej Kranz, VP, Corporate Strategic Innovation, Cisco Systems
The most powerful tool you have in closing an investor is fear of missing out (FOMO). FOMO only occurs when you have momentum in the round. Once you get that momentum, you start closing investors and a virtuous circle begins, increasing FOMO and carrying you to a great round. Here’s three ways to build momentum when you’re fundraising for your startup.
Setting a low round target does 2 things: first it broadens the number of investors who can participate in the round, increasing competition. Second, the round looks almost closed with even a small amount of investment. You can always increase the size of the round later as demand catches up. The only cost of this approach is creating a credible business plan for each successive target.
For example, you only need one investor with $50k to be half full in a $100k round. Conversely, if you tell an investor you’re raising $3M and have $50k raised, the situation seems less attractive. When you start getting yeses you can increase the size of the round in stages and still have the majority raised at all times.
You can also build momentum by getting smaller investors to earmark parts of the round. This usually comes in the form of new, angel investors and existing investors participating with their pro rata (or more). Ask the investor if they’d like to reserve a spot while they decide? If you get a verbal yes, you can’t give that space to another investor and thus more of the round is now ‘earmarked’, ‘spoken for’ or ‘wrapped up’.
For example, say you’re raising $500k and currently have $150k committed. When talking to a new and interested investor, Investor-A, you ask their usual check size, which is $100k. Next, ask if they want you to hold that space for them while they decide, as the round is filling up. If Investor-A says ‘Yes’, then going forward you can’t offer that space to any other investors. Thus, your round is now half full.
One of the hardest parts of fundraising is hearing noes. Your fear of these noes can hinder momentum. All great companies get a lot of rejections during fundraising and being willing to push for a decision will actually help your process. Leaving a potential investor for weeks in the maybe column will almost certainly result in a no. Follow up regularly with updates but don’t blast everyone with fake success to push for an immediate decision.
To avoid hassling a deciding investor without cause, your follow ups should be focused on good news. Provide updates on new investors, or reservations, in the round, customer wins and product launches. At the end of each email you can ask if they’ve decided or need anything else. Eventually, you have to give a deadline to avoid dragging out the conversation too long. Even if that leads to a ‘no’, it’s still progress.
Wanted to quickly share some great news, the team closed Hooli today and the contract should be signed next week. Let me know if you have any questions or if you’ve come to a decision?
Raising money for your startup is a grueling test for any founder but it gets better once you have momentum. Making use of these strategies makes it easier to get started and increases your chances of getting the round you need.
Thanks to Duncan Davidson, Pejman Nozad, Mar Hershenson and Kaego Rust for reading drafts of this.
Re-tweet post -
My latest post: How to get Momentum when Fundraising https://t.co/lEwCQtyFc7— Ash Rust (@AshRust) September 20, 2016
Last week Samir Kanji (First Republic Bank) published a blog with a list of the accelerators ranked by graduates who received more than $750,000 in funding. Cromwell Shubarth of the San Jose Business Journal pointed out a change in the rankings for the Alchemist Accelerator.
Game Changers Silicon Valley had a chance to catch up with Ravi Belani and Danielle D’Agostaro from the Alchemist Accelerator a few weeks ago. This interview, conducted for the Game Changers Silicon Valley show, as part 1 of a two part show. Here is a 2 ½ minute segment from the interview with the Alchemist Accelerator.
Accelerators are very similar to educational institutions, and it is important to separate “the signal from the noise” to allow company to identify the best fit among the many accelerators.
The Alchemist Accelerator admits only companies that monetize from the enterprise and who have established technical teams.
A focus on the enterprise allows companies to identify customers and generate revenues from the enterprise which improves the viability of the startup.
The classic enterprise entrepreneur is the person with 10 years of experience, although there are very disruptive companies who have never worked in the enterprise space.
Valuable learning can be gained from the mentorship via coaches and experts, every companies has a CEO coach, a Sales Coach and Goal coach plus domain knowledge experts.
There are five venture capital investors and five corporate investors who provided the working capital of the Alchemist Accelerator.
Both segments of the Alchemist Accelerator can be viewed at the link for Game Changers North America
Founding teams should review and qualify accelerator program in your geographic area. Most of this information can be taken from blogs and articles. Some of the areas for a general assessment should be:
Once a startup company narrows the list of accelerator programs that would be a fit, the founders should conduct their own due diligence on the accelerator. The following our list of starting points:
The first decision is to determine if an accelerator will materially promote a startup company's progress both in development and execution of the business plan and engagement with potential investors.
Choosing the wrong accelerator can result in a disappointing experience. All accelerators will quote metrics on the average follow-on funding received as a result of the program. However, the average funding percentages for companies in past programs represents only one data point. Conducting additional due diligence can significantly improve your chances for the right decision as well as a successful engagement and outcome.
For more Game Changers Silicon Valley shows: http://www.GameChangers.tv
Facebook: Game Changers Silicon Valley
- Jim Connor, Executive Producer at Game Changers Silicon Valley; Angel Investor
In 2004 I published my first book, The End of Software. At the time I was the President of Oracle On Demand, so many people found it a curious title. In the book I discussed the fundamental economic reasons software should be delivered as a service. As an example of new startups in the field I highlighted four companies: VMWare, salesforce.com, Netsuite and OpenHarbor, which were all pre-IPO companies at the time. While I didn’t get all four correct, three of the four have gone on to be major companies driving the second generation of enterprise software.
When I left Oracle, I started to wonder what was next for enterprise software. We’ve built CRM, ERP, HR, supply chain and purchasing software for on premises deployment and now all are being delivered as a cloud service. While delivery as a cloud service provides both lower cost and higher quality, the functionality has remained largely the same.
So, are we at the end of innovation for enterprise software?
In 2010 I started a cloud computing class at Tsinghua University in Beijing. The Amazon team was kind enough to give me $3000 worth of AWS time for the students to use. I showed up in class and told them it would buy a small server in Northern California, Virginia or Ireland for 3 ½ years. They looked bored; after all, they could also get a server in China for 3 ½ years. Or, I said, $3000 will buy you 10,000 servers for 30 minutes.
So, what could you do with 10,000 servers for 30 minutes?
Like you, I’ve heard the buzzword IoT for quite a few years. I mostly ignored it because I wasn’t sure why my toaster should talk to my coffee maker. But a few years ago I invited Bill Ruh, CEO of GE Digital, to deliver a guest lecture at my Stanford class and his talk raised my curiosity; so a year ago I decided I needed to learn what was going on in industrial IoT, or some would call enterprise IoT. With the help of a crowd of at least a hundred experts, I documented nearly twenty different case studies spanning all of the major industries: power, water, oil & gas, agriculture, healthcare, construction and transportation.
Mid way through building all of these cases the answer to my two questions became obvious. While second generation enterprise software has helped reduce the cost and improve the efficiency of some enterprises it has done little to transform our physical world. With the decreasing costs of sensors, compute and storage we now have the ability to create a more precise planet. And unless we all move to Mars, we’re going to need to produce energy, water, healthcare and food more efficiently, more precisely. And if you consider that all developing economies require fundamental infrastructure, shouldn't we engineer next generation healthcare, power, and agriculture using powerful new IoT software? In the developing economies we skipped land line telephony, will it not be possible to skip ahead in these other critical infrastructure areas?
A few weeks ago we launched my new book: Precision: Principals, Practices and Solutions for the Internet of Things in London on the River Thames. The book is written for anyone who wants to be a student of the subject, whether you're a focused on technology or business.
The first part of the book divides the technology principals into five major areas. We discuss the things or machines themselves, how they are connected, what is done to collect information, how you can learn from things and finally what can be done with what we’ve learned.
While many are implementing IoT solutions using current technology, it should be recognized most of the technology to date has been built for Internet of People (IoP) applications. But things are not people. For instance, there are many more things than people, things can be where people aren’t they have more to say, things talk much more frequently and things can be programmed, people can’t. While there are numerous technology challenges and opportunities within successfully implementing industrial IoT solutions, this distinction has great relevance to those enterprises that build machines (e.g., gene sequencers, combine harvesters, wind turbines) and finally on those that use these machines (e.g. hospitals, farms and utilities).
The second part of the book contains fourteen case studies that span the major industries of power, water, healthcare, transportation, oil & gas, construction and agriculture. You'll meet Nick August, who is a farmer on the Cotswalds, learn about how an autonomous train will run from the north of Australia to Perth this year and how you can use machine learning to predict electric grid failure.
Some companies have already begun to make the investments in industrial IoT. GE Software, for instance, was founded in 2011 with a $1B investment. CEO Jeff Immelt has declared that GE needed to evolve into a software-and-analytics company lest its machines become commodities. Immelt has set an ambitious target of $15B in software revenue by 2020. PTC has taken an M&A path and invested over $500M in a series of companies, including ThingWorx, ColdLight and Axeda. On the venture side, you may not have noticed but Uptake, a Chicago-based IoT startup, beat Slack and Uber to become Forbes 2015's Hottest Startup. They raised $45M at a $1B post funding valuation.
I’ll let you be the judge of whether it’s time to invest in IoT. But whether you’re a student at Berkeley, someone who works for an enterprise tech company, a venture capitalist, a CEO of a textile machine company, or the Chief Innovation Officer of a hospital, I’d encourage you to make Precision: Principals, Practices and Solutions for the Internet of Things part of your summer reading list and start exploring how you’ll be part of creating a more precision planet.
- Timothy Chou, Lecturer at Stanford University; Chairman, Alchemist IoT Accelerator; Former President of Oracle on Demand
Hacker News can be a great source of finding engineering talent for your company. Here are few ways I have found on HN to source great talent for my own startup:
“Who is hiring” is a monthly thread where companies can post technical job openings free of cost. A new thread is featured on HN homepage on first weekday of every month. For example, this is the “Who is hiring” thread for July 2016.
Unlike “Who is hiring”, where companies post job opening, “Who wants to be hired” is a monthly thread where active job seekers post about themselves. Majority of job seekers are remote workers but you can also find candidates who are willing to relocate.
This monthly thread is dedicated for freelancers only. Here is the google link for past threads.
Show HN is a place where hackers post their interesting projects and showcase their skills. Check that space regularly to connect with smart people who are working on technologies relevant to your company.
“90% of startups fail.”
You’ve probably heard that before. But what does it mean?
Over the past couple years, I’ve :
Given my experiences, I thought it would be valuable to share my views on why startups fail.
If you understand why startups fail, you will be more likely to succeed.
In school, we’re taught history to avoid repeating the same mistakes. Similarly, as entrepreneurs (practicing or aspiring), we should understand why startups have failed so we can decrease our own chances of failure. After reading this, you will understand the main reasons startups have failed in the past, making you more likely to succeed.
Startups fail when they can no longer operate -> Startups can't operate when they run out of money.
Understanding this may seem basic, but it’s important. I’ve heard many times that, “the reason a startup fails is because they run out of money.” That’s not a reason. That is the result.
Failure = No Money.
If we can agree that in most cases startups fail because they run out of money, then to truly understand startup failure we need to understand why startups run out of money. Make sense? Great, let’s dig deeper.
Top 3 reasons why startups run out of money
Lucky for us, all we need to know is the top 3, because those 3 reasons account for over 80% of startup failures. I definitely just made up that statistic, but it’s probably in that ballpark.
Reason #1: Building something nobody wants
Over the years, it has been clear that if a startup doesn’t build a product/service that people want, they will not be able to generate revenue.
Revenue = money; no revenue = no money; no money = fail.
In one of Paul Graham’s famous essays, he wrote about this topic and why startups need to “make something people want” (http://paulgraham.com/good.html). It seems so obvious, but in reality it’s not.
Entrepreneurs need to think differently and see the future. While doing this, many assumptions are made because there isn’t enough information to make decisions - if there was enough information, someone else would already be doing it. One of the worst assumptions entrepreneurs make is that people will want their product. The problem is that this should not be an assumption, instead, it should be a hypothesis. Having a hypothesis that people will want your product means that you need to prove it. The biggest mistake entrepreneurs make is: they don’t prove people want their product. What ends up happening is founders skip this step and go directly to building products, hiring people, finding partners, then trying to sell. “Trying” is the key word here, because after they realize they can’t sell, it’s too late and they’ve run out of money.
Learning Point #1: Prove that people want what you’re building.
Before building anything, prove to yourself and your team that people actually want what you’re building. A trick I’ve learned over time is to start with designs. Create your designs on Photoshop or Sketch and use a tool like InVision. This will help you simulate your product without having to write a single line of code. It’s easier, faster, and cheaper to iterate on designs than code.
Reason #2: No Focus
From my experiences founding and mentoring dozens of startups, I’ve seen that focus and prioritization are necessary to achieve success (and avoid failure). Again, doesn’t this sound obvious? It’s not. In a startup, you’re being pulled in all different directions. Founders think they have to do everything at once. They are meeting investors, partners, mentors, customers, building products, figuring out a marketing strategy, going to all the conferences, and blah blah blah...
In reality, there are only 1-3 things at any given time that actually matter. Ideally, you’ve identified and prioritized those things, then distributed the responsibilities across your team. Time is against startups, so it’s important to focus on what matters and optimize your time. Many startups make the mistake of prioritizing raising money from investors. This is because that’s what everyone else is doing and it seems like the cool thing to do. They end up wasting so much time because the company isn’t ready to raise money. Either they don’t have a good product or have low traction, and often they don’t know why they’re raising money in the first place. In the end, they waste months talking to investors, and in that time they could have been proving that people want their product, building it, and selling it.
Learning Point #2: Prioritize, then focus.
Figure out what are the most high value areas you need to focus on. Here’s a prioritization order that applies to most B2B startups:
1) Prove people want what you’re building
2) Build it
3) Get early customers
4) Raise money
5) Hire smart people
6) Sell to more customers
7) Raise more money
8) Hire more smart people
9) Make your product better
10) Sell to more customers
At any point, you should know what stage you’re at, and therefore, what you should be spending most of your time on. This focus will lead to stronger execution and catalyze your growth. Without focus, a lot of money will be wasted and chances of failure will be higher.
Reason #3: No Passion
A lot of people have this notion that starting a company is the dream. It’s no surprise given all the recent exits and IPOs. Startups have become sexy. As a result, I’ve seen many people start a company because they think they’ve stumbled on a great idea. Heck, I even did this back in university.
Whenever I meet a founder, I ask: “why did you start this company?”. This is the single most important question I’ve learned to ask founders. If you asked me that question when I started my first company, I would have said, “because I think it’s a good idea and the market is huge!”. The problem is, I had no passion. That company failed. There was nothing driving me behind the idea. Similarly, many startup founders I meet have no real passion or a deeper reason why they started their company.
If you’re starting a company without passion for the problem, then during the hard times you will be less motivated to power through them, and your chances of failure will be higher.
Learning Point #3: Do something you’re truly passionate about
I heard this saying somewhere: “Attitude is Altitude”. In my personal experiences, I’ve found this to be true. When you’re faced with hardship, either professionally or personally, staying positive will always increase your chances of success. It’s easy to get mad, depressed, and/or stressed, but try to control your emotions and stay positive by remembering why you started in the first place.
Having real passion is essential to get through hard times with your company. To get through the hard times, you need motivation. I’ve found that passion is the strongest motivator. When founders are extremely passionate about the problem they’re tackling, they figure out how to solve the issues at hand. The best motivators I’ve seen are:
- The founder(s) experienced the problem themselves
- The founder(s) believe in a future that may not exist unless they create it
- The founder(s) have close family and friends that have been affected by the problem
Putting it all together
Whether you’re working for a big company, thinking about starting a company, or already founded a startup, it’s worth reflecting on the lessons we have learned from past failures.
1) Build something people want, and prove that they want it.
2) Have focus at all times by prioritizing high-value initiatives.
3) Be real with yourself and do something you’re truly passionate about.
The interesting thing is, these 3 areas also apply to big companies. But, instead of the companies failing, individual products fail. There are multiple examples of products failing in big companies because they didn’t build something people want, or they lost focus. Learn from the past, make new mistakes, and remember, "Attitude is Altitude".
I’ve found that Snapchat is a great way to talk about these topics. Everyday I try posting interesting content on my Snapstory. Don’t wait for my next post on LinkedIn, follow me on Snapchat. Add my username: nav1d
By adding me on Snapchat, you can watch me talk about a variety of startup topics. In the past, I’ve talked about Marketing & Sales Tactics, Raising Money, and Staying Motivated. Add me and share with your friends and coworkers.
#learnfromfailure #startups #innovation #product #studentvoices #leadership #entrepreneurship #businessstrategy #bigideas
I’ve been having a blast since we sold StackStorm to Brocade.
As promised in my last post (the 4Ps of Picking), in this post I’d like to share with you a little bit about what I’m seeing in the market.
Like many, I see a greater gulf than ever between the frontier of what is possible and the performance of the average enterprise. You can see this gulf when you measure metrics in terms of operational agility — such as deployment frequency or deployment lead time (time spent in the queue before production).
And you can see the gap in outcomes in studies such as the Puppet Labs sponsored State of DevOps survey here:
One of my favorite (hello StackStorm and auto-remediation!) is that the MTTR for super high performers is 168x faster than average performers.
So with that as context, here are a few of the spaces into which I’m looking:
Given my background having helped create the open storage and software defined storage space, storage is a natural for me albeit one that is under incredible pressure and stress these days in part thanks to too much venture investment chasing what is a large but mature market. I have a bunch of friends and colleagues in storage and am confident in my picking skills in this space.
I’m really proud that Cloudian has invited me to join their advisory board.
Cloudian has a unique offering in the storage space — it is a massively scaleable 100% compliant on-premise S3 cloud that includes far better metadata than does S3 for use in management (thanks in part to an early bet on AWS and Cassandra). They are achieving great outcomes for their customers both by saving them money on object storage (speeds, feeds and dollars per GB!) and, more importantly, by improving the productivity of IT teams all the way up to and including the development teams.
They have spent literally years perfecting their object storage with customers like NTT hosting and tier one financials. And now the word of mouth is spreading.
Cloudian is a much later stage company than some of the others I advise. It’ll be in the news quite a bit in the weeks and months to come thanks to their well deserved accelerating momentum.
This is the first of a few stealth mode start-ups I am advising. This one is looking at the coming impact of 3D memory. I cannot reveal much other than to say that putting many many TBs of non-volatile memory next to the CPU at nearly memory speeds is insane and wonderful. By the time this company emerges I’m not at all sure it’ll be seen as a storage company; storage as a space has been utterly transformed and yet storage companies are too often in my opinion stuck in the speeds, feeds and $/TB mindset of the early 2000s.
Machine learning and data science:
This is an incredible area to learn about. There is so much hype and yet also it goes without saying that some of this deep learning stuff is getting awfully useful. I am not an expert here, unlike storage, and yet I’ve made it an area of focus in my networking and learning. I’m starting to grok the various camps in machine learning in large part with the help of many of the companies I mention below. I’m also getting hands on with my limited Python chops. Fun stuff.
My sense is that those companies that best focus their AI or machine learning on specific pain points will flourish and that many of the opportunities for platform companies that provide for example “data science as a service” have faded away.
With that in mind I’m extremely excited to be supporting TextIQ. Apoorv, Omar, and the entire team at TextIQ are harnessing cutting edge machine learning to address some real pain points in the legal industry. They have tremendous traction and when you meet Omar and see the demo it is easy to see why — clarity of vision, tremendous energy, high CPU, and yet active listening and more. This a rocket ship on the launch pad; yes — slightly hyperbolic and yet I could not be more bullish on their prospects.
They are hiring — and picking their next handful of proof of concepts and production deployments as well. http://textiq.com
I’m also working with Andy and Xavier at Data Fellas. This team has a track record implementing data science pipelines for some of the larger users in Europe and are leveraging this experience to build related software. They are also prime drivers for the now widely used Spark notebook. You can see Andy’s activity on GitHub here: https://github.com/andypetrella
As the name DataFellas and the tag line “we make offers to data they cannot refuse” both suggest, these guys are fun and a little bit irreverent. More importantly, each time I chat with them I come away more impressed by their understanding of what it is like to deliver an distributed data science pipeline to enterprises. They have spent so much time helping actually drive outcomes for customers that they truly feel their pain.
DataFellas are close to getting their product out in alpha / beta form — and in the meantime are doing workshops with folks doing data science at cost in return for getting additional product feedback. Back in March O’Reilly picked them to do their on-line training “Building Distributed Pipelines for Data Science using Kafka, Spark, and Cassandra” — so their expertise speaks for itself. Get in touch with them now — Andy is speaking in NYC this week and is scheduling chats and at least one training now: http://www.data-fellas.guru
In both cases, as you dig in, you’ll find incredibly energetic teams that have survived rigorous PhD programs and are now doing the real work of building great companies. I’m hugely proud of the progress both teams have already made.
Somewhat in the space as well — although not yet deploying machine learning — is CareerWave. At the highest level CareerWave is sort of like uber for career and business coaching. However it is more than that — we are all told these days to “own our own career.” Ok, but how? Not everyone can afford thousands of dollars a month for a coach and yet study after study suggest that coaching helps lead to happier and more successful people. And maybe more importantly for companies, unhappy people under perform and eventually leave. What if we can apply software and machine learning to the problem? That’s the gold standard of coaching, and it’s CareerWave’s approach — they are signing up betas now and also coaches.www.careerwave.me
There is yet another company in stealth mode that is looking to leverage machine learning for support related tasks. Stay tuned.
Yes, sorry, these are two stealth stage start-ups. Each of them intends to help enterprises better measure and automate their operations — and so at a high level they may seem like the Nth monitoring or orchestration or continuous delivery solution. And yet, each are different in part by explicitly focusing on enterprise adoption as opposed to primarily on community usage. The DNA of these companies, much like StackStorm, merges deep DevOps experience with company building and enterprise operations experience as well.
The founders of both of these systems are already gathering around them an incredible team and some great early adopters as well. I’m bullish on both. And I will share more as their founding teams are ready for me to do so.
I’m now spending about half of my time meeting new companies, attending meet-ups and so forth. The other half is split between helping existing companies and doing some hacking and preparing for various Spartan races.
A couple of other machine learning related companies I’ve just gotten to know are again characterized by brilliant technical teams that are drilling into specific pain points. I think the entire team at Alchemist Acceleratordeserve a lot of credit for helping these teams iterate towards product / market fit quickly — while also shared a lot of otherwise very hard earned knowledge about company building. While I’ve just gotten to know these companies, I think they are both interesting:
If you are interested in someone like me helping you out — or at least hearing you out — please do get in touch. My network of friends and of people that seem to trust me has expanded quite a bit over the years. I’m looking for founders and later stage companies that could use my particular insights, relationships, and drive.
Speaking of drive, one thing I’ve learned since selling StackStorm is that I’m definitely not done yet. I’m having a blast and feel every bit as competitive as I ever have.
Last and likely least I’m also shooting for some upcoming hackathons to test and stretch my Python skills. Here I’m most interested in apps that help support community engagement and that shine a light on our governments. The deeper I dig into my local government the more I see the need for transparency and innovation.
I’m also proudly volunteering time as a member of the Vestry at St Matthew’s Episcopal in San Mateo. It is a warm and welcoming community with inspirational leadership.
My ask for you is — what am I missing? What do you think about my areas of focus? If you were me, what would you do differently?
Please keep in touch.