Let’s focus on the word “Conscious” to continue our exploration of Conscious Capitalism. My ego originally found the word vaguely threatening. It made me feel uncomfortable. Because I didn’t understand what it meant, my ignorance created resistance. I feared there was an implied value judgment directed at me. Did this mean that I was not conscious? Did this imply that there were others who were more conscious than me? Determining whether or not there was a “there” there in Conscious Capitalism required me to get comfortable with this word.
After I posted the recent map of Silicon Alley’s early-stage venture ecosystem, a healthy number of people found it to be very helpful and several suggested I do the same for Boston. Well, here’s my first stab at capturing what is just a massive early stage venture ecosystem! Until you lay it out on a […]
There’s a famous moment in 1970s television sitcom lore when the super-popular “Happy Days” lost its mojo. That moment is when the main character and hero, Arthur Fonzarelli (“The Fonze”), performs the improbable water-ski trick of jumping over a shark. Now, I’m an avid water-skiier, and I’ve been known to jump a Loon or two, […]
For more than a year, I’ve been writing that the U.S. financial ecosystem for venture capital-backed startups is crumbling and placing the U.S economy in jeopardy at a time when countries such as China and India are producing far more sophisticated startups than ever. For so long, it seemed that these concerns fell on deaf ears. I’m heartened to say that this message, at long last, may finally be getting heard in Congress.
I’ve taken a break from writing peHUB posts to explore Conscious Capitalism, which is emerging as the next big thing in business. Briefly, Conscious Capitalism has three key principles that set it apart from the current variant of capitalism practiced around the globe. First, a company has a deeper meta-purpose in addition to maximizing profits. Second, a company recognizes this it is a complex ecosystem comprised of numerous interdependent stakeholders and not just the traditional limited duality of management and stockholders, and delivers value to all stakeholders. Third, the CEO is the steward of his company and its ecosystem working for the benefit of all the stakeholders, not just for his own enrichment. The deeper I got into the world of Conscious Capitalism, the more I realized that it was strangely familiar. The progenitors of the venture capital industry like General Georges Doriot practiced venture capital by intuitively using these principles. To make money in venture capital, their focus was on building great businesses. Entrepreneurs like David Packard and Walter Hewlett understood that building a great business inherently required following the principles of what is now called Conscious Capitalism.
In that I am a heavy user of mapping software and think programs like MindNode are excellent visual aids, I decided to put together a first draft of the early-stage tech investor ecosystem here in Silicon Alley as a resource for entrepreneurs. As this is a first stab, I would ask your help in the comment section of this post letting me know about any early-stage investors I have left out and/or about any corrections of errors you come across. Get the map after the jump.
This post originally appeared at HuffingtonPost, and is co-authored by Brad Feld The U.S. Supreme Court just blinked. In the landmark Bilski v. Kappos decision, the Court had a chance to right a patent wrong. It didn't. Instead, in a cautious and internally contradictory decision, it further fuzzified the mess that is the U.S. patent system -- and it will have sad consequences for innovation in this country. It was terrible timing for a loss of legal nerve. For all the attention given this case's decision -- and some patent law blogs had turned its release into something like the final episode of LOST, complete with countdown -- the underlying case was easily decided. It had to do with whether the plaintiff could patent a method for assessing and trading energy risk. This sort of vague nonsense is an easy lob to the high court, with Justices applauding one another for agreeing that trading energy risk shouldn't be patented.
For better or worse, Micro-VC’s and Super Angels seem to be the new intriguing sub-segment within Venture Capital. Funds like First Round Capital, Floodgate, Lowercase, Founder Collective, IA Venture Partners, Harrison Metal, and Felicis and individuals like Ron Conway, Keith Rabois and others show up multiple times a day on TechCrunch and seem to be behind every high profile investment in the internet world. How did this happen? Are these groups just a new fad or is a fundamental and long lasting change happening in the early-stage financing eco-system? Here’s a quick primer on this new category of early-stage investor:
So there I was, listening to the infectiously giddy (and, indeed, bittersweet) Katy Perry tune “Waking Up In Vegas.” Now, I realize that I’m probably more than twice the age of the typical Katy Perry listener, but the ditty struck a chord. There’s a great moment about halfway through the song in which Katy seems to be at the bottom of her stack of chips, and she urges her gambling partner to “Send out an S.O.S.” But, then, as she pauses to inhale, the momentary silence is filled with an ethereal, angelic sigh, perhaps portending a change of luck. With the wheel of fortune finally spinning her way, she changes her tune and exhorts her sidekick with renewed optimism: “and get some cash out!” Maybe it was because I was driving back from an annual meeting during which I’d heard some GPs describe a great year after a period of difficulty, but the first time I heard the song on the radio I thought it was a must-add to my mental soundtrack of the VC world. After all, the way some people think about venture and its potential for discontinuous outcomes (and punishing loss rates) makes it akin to gambling; I’ve always thought of Curtis Sharp as the patron saint of some venture investors, no? Anyhow, as I thought about it a bit more, I re-envisioned the song as a lament from entrepreneurs to venture capitalists who sit on their Boards. Spoofing the song, I’ve replaced Vegas with Woodside, a tony Silicon Valley hamlet that’s home to many VCs and entrepreneurs. Keeping true to the original, there’s little rhyme and funky meter, but here it is for your enjoyment:
With high-tech companies needing less capital due to advancements in technology, startup development methodology and online marketing, we have seen a Renaissance in angel investing. While angel investors participate in part for the excitement of engaging with entrepreneurs and placing bets on the future, they also do it for the expectation of significant financial returns. […]