Music Saturday - Khatia Buniatishvili

I've decided to post non-startup related stuff on the weekends. So today I'd like to give you this wonderful rendition of the (somewhat overplayed) second piano concerto by Rachmaninov. I'm a romantic at heart. The pianist Khatia Buniatishvili is a young French-Georgian. Not only is she immensely technically proficient, but she plays with perfect temperament and immense heart.

Her latest full album has the concerto conducted by Paavo Järvi, which you may prefer. I do like seeing her play, though. 

What's on your agenda? Fear

Yesterday I wrote a bit about the crazy packed schedules I see in the startup world. Don’t get me wrong: hard work is good. Hard work is what life asks of us, sometimes. But I wanted to add a bit more on that topic.

What’s the root of the most out-of-control agendas? Something that we don’t talk about enough in the business world: fear. 

- Fear of failure (and thus a fear of being rejected, never being enough, not being worthy, etc.)
- Fear of uncertainty (and thus a need for control, etc.)
- Fear of forgetting something (and thus obsessive behaviours and manias)
- Fear of missing out (and thus an accompanying underlying dread of the unknown unknowns) 

Fear is pernicious. It makes you bungle other things: 

- Less focus: you need filters on what’s important – if everything potentially is, or if some things are suddently perceived as very threatening, it’s hard to stay focused
- Less delegation: uncertainty erodes our confidence and makes us seek control, making it harder to delegate
- Less trust: the more fearful we are of our environment, the less we’ll trust the people in it
- Less self-care: fear makes us unaware of our own needs, because threats are perceived as more important to deal with 

The hardest-working entrepreneurs I know are seen as uncaring. They’re heads-down in their work. They often know that business is about people, not things. But fear makes them forget.

At this point, I was about to write: “life is too short to live it in fear.” Do you see how subtly harmful fear is? I’m telling you how managing fear is important by trying to scare you!

Fear is a habit. It was useful when you were about to get mauled by a mountain lion and the adrenaline saved your skinny butt. But in startups, fear sucks. I’ll write more about dealing with it (as an ex-super-high-anxiety person, I’ve learned a thing or two).

For now, manage by walking around, even if it’s hard to measure the effectiveness of that. Your people need (to see) you! When you have a one-on-one, don’t glance at your computer or phone. Ask for personal background stories. Write thank you notes. Nail the basics.

Crazy startup schedules

Being a founder is hard. And the first thing to go is time for family and friends. I know you don't intend to leave behind a string of broken promises, but you're caught in the middle of this very dynamic system that often seems like it depends entirely on you.

Product issues. Upset customers. Fickle employees. And by the time you've finished everything on that to-do list, another dozen items have piled up. Not least yet another update call with your (sometimes clueless) investors. And all the while the emails keep piling up. Oh, and there's another ten Slack notifications (Dear Stewart Butterfield, it was supposed to make things _better_).

One of the analogies I take from sports coaching is: no professional athlete works 24 hours a day. Pacing is a critical part of training. Setting impossible expectations for yourself is debilitating - you feel like you're not making progress. And you just can't put in a great performance when you're exhausted.

Stop chasing the urgent and focus on the important. Give yourself time to breathe. Find breaks to re-energize. Go home to tuck in your kids and keep the romance alive.

I encourage founders to be clear on what they're not going to do. That often creates a significant amount of space in their heads and in their day.

Take that, Michael Moritz.

Constantly learning

“Everyone is your student and your teacher.” - iPEC Foundational Principle 

I got in a silly fight recently. Someone was making financial demands while their company was in a highly precarious state. I got emotional, I swore. The other co-founder took the brunt. 

And then something funny happened. He appealed to my empathy. He asked me to see things from their perspective. That the reason for their ask was that they were stressed and worried and scared. 

It totally changed the energy of our exchange. It helped me address the concerns and move the conversation forward. 

I trained for this. I am supposed to be the coach. But I’m not perfect and life (and building companies) is messy. 

It got me to thinking about one of my favorite foundational principles of the coaching program I went through: “everyone is your student and your teacher.” How true. 

I’m grateful for the lesson. Let’s hope I don’t need to learn it again and again. 

Screen fatigue

I read today that ebook sales have fallen for the second or third year in a row. I'm not sure that data is totally correct, but the big growth days in ebooks seem over.  

I love my Kindle. But I still buy physical books, too. And when I have the choice, I prefer not to read on a screen. 

Screens are too present in our lives. The car keyfob has a screen. The odometer is a screen. Your watch has a screen. That wine list the other day came on an iPad (yes, we asked if it has Angry Birds). 

Screens have been the dominant human-computer interface from the beginning. But they're starting to be so ubiquitous that they're being used in ways that are unnecessary. They're a strain on the eyes. They demand focus because they move and they're colourful. 

We are seeing more and more companies trying to change screens or do away with them altogether. I'm hearing rumors that bone induction tech will be big - a quiet voice in your head, when you need it. 

Contextual computing is already here. If we could let it sit in the background while we are living real, human lives, that would be amazing. 

Humble curiosity

"To the extent possible, we wish to re-frame the language of our time." - via Fr. Thomas Keating, in an email from the organization "Contemplative Outreach"

This line hit home in an unexpected way. So much of the misunderstanding, miscommunication, resistance and antipathy in our lives comes from language. Some of the biggest issues I have faced in organizations have been hidden "negotiations of language", rather than a genuine disagreement about things. 

The way we show up under stress has everything to do with our limbic system: it's fight or flight. And to be honest, in most people the stress response is flight. We avoid situations that make us feel powerless. We think of ourselves as a victim. We lead apathetic, lethargic lives "of quiet desperation."

Because when we stand up for ourselves, it tends to make things worse. Conflict breeds conflict, in a never-ending cycle of emotional and physical violence. 

The only way out, I've found, is consistently showing up with humble curiosity. The best book I've read in this context is by Edgar Schein, called Humble Inquiry (Amazon). Its subtitle, which apparently all books need nowadays, is "The Gentle Art of Asking Instead of Telling." Isn't that a wonderful thing. 

I don't manage it every time, but I'm getting better. The next time you're triggered, just... ask, gently. 

Flying while standing still

We woke up in a hotel at Gatwick airport this morning, en route to a friend’s birthday halfway across the globe. 

We are traveling with our firstborn, who is 20 months old. My wife is 28 weeks pregnant. We did not sleep very much. 

I used to be a high anxiety person with a quick temper. This is the type of situation that previously would have triggered all of that. And it would have made a stressful day much worse, for everyone. 

This year I’ve committed to a consistent, intense meditation/contemplation practice. I hope to relate some of the experiences. But even the sporadic, relatively shallow practice I’ve adopted over the last years is helpful. It very much feels like life spins around me, and I’m at the center - calm, collected, joyful. 

Making decisions

Much has been written about the bounds of rationality. A colleague at Sunstone has a chart up to remind himself of the most common cognitive biases. Another gave us all a copy of a Kahneman book for Christmas a few years ago. The initial investment decision is a crucial one in our business - you're going to be working with that company and in that industry for years. It's not a decision to take lightly. 

Founders call me sometimes when they have hard decisions to make. And then I tell them the quip of the three brains (originally taken from Laloux' Reinventing Organizations): did you know that we actually have three brains? The nervous systems in your heart (intrinsic cardiac) and gut (enteric) are actually quite independent from the one in your head. Discovered by Auerbach in Germany in the 1860s, science kind of forgot about the brain in the gut. Until it was rediscovered in 1990 by Michael Gershon, a US neuroscientist (and others). 

We see our entire lives through our modern/rational ideology. It's almost impossible to take those glasses off. We've been taught to treat the world, our selves, other people and our organizations like things. 

But thankfully the self isn't entirely rational. Decisions are complex and we have billions of years of evolutionary history to help us. Hence I ask anyone to do this very simple thing before taking big decisions: get your head, heart and gut to align. That means checking in with your rationality, but also your emotions and your intuition. 

If you don't have alignment, see if you can hold off, or frame the decision differently, or check your premises. Once you have alignment, go deep within yourself to your witness, the grounds of your being. And check there whether what your doing is serving your overall purpose.  

VC and gambling

Though darkness covers the earth,
and thick clouds cover the peoples...
Be radiant at what you see,
your heart shall overflow. (Isaiah 60: 1-3, 5)

Yesterday a Facebook friend commented on my latest post, "How about a post how VC is some form of gambling [with other people's money] where 4 out 5 bets fail?" 

I like when people challenge me. It makes me reexamine my beliefs, which is mostly a healthy exercise. I've found that for much of my life I wasn't truly thinking for myself, but regurgitating smart things I'd heard and read. Mostly because I wanted to be liked (I still do, but it's not my primary motivation). 

It had never really occurred to me to think of what I do as gambling with other people's money. I kind of get why it might look like gambling from the outside: risk can be construed as odds, the investment is the stakes, we frequently lose money, and the whole thing looks hugely entertaining (it really is less glamorous from the inside). 

So let's start from first principles. Founding a startup is a high-beta activity. Like other such endeavours - becoming an artist, a writer, an actor - most startups fail. But considering the expected value of success, that shouldn't be surprising. If your chance of success is 1% and the outcome yields $50 million, the expected value of being a founder is still $500,000. And if you're great at founding a company, your chance of success might be much higher. No wonder people want to do startups. 

Unlike speculation, venture is an "investive" activity. It is fundamentally meant to be creative capital, to finance building something. It isn't trading and as such it also isn't a zero-sum game like gambling. While what is financed may not blossom into a popular product or large company, the attempt occurred and that attempt had value and meaning beyond its financial outcome. Trying lots of things that don't work, it turns out, is key to evolution - not just of biological entities, but of entire ecosystems like capitalist economies. If you don't try lots of stuff, your economy will stagnate. 

The capital we raise for our funds comes from a variety of different investors - pension funds, family offices, some public funds. Usually the money we raise is part of a very small allocation within a larger portfolio of fixed income, equity, real estate and other alternative assets. Venture is usually the smallest "asset class" they invest in. Their expectation is for us to try and vastly outperform the benchmark return. 

So why do the founders, the VCs, our LPs, governments and many others want startups to flourish? The main reason is the power of exponential growth. Successful startups can become very, very big. Often bigger than incumbents in their market. Something that grows 2% a month will be 2.5x as large in 4 years. But something that grows 20% a month will be 6,300x in 4 years. That's why startups are attractive. 

Now, there are lots of subtleties to consider. For example, building a "normal" (i.e., non-startup) company might be a great life choice. Avoiding institutional investment might be sensible, too. Or at least waiting to become cash-flow break-even ("ramen profitable") before thinking about that choice. But equating venture capital with a form of entertainment (vice?) like gambling probably means trying to simplify what has become a great way to finance the fast growth of potentially important ideas.

Like anything, it's a matter of perception - being able to see the beauty in it, instead of the darkness (see Isaiah above). 

Finding purpose

"The difficulties and necessities of work, like those of marriage, necessitate some larger perspective, some greater view than the irritations and obstacles of a given day." - David Whyte

To me, the path to entrepreneurship and, eventually, to venture capital has always felt like discovering not a profession, but my vocation. It has been an ongoing and at times difficult conversation about who I am, who I do or do not want to be, what the world deems useful in me, and what I need of the world. 

The overarching drive in me has always been the need to be at the edge, to be part of the conversation about the future horizon, to play a part in its creation. Like all humans, I yearn to strive. Over time, I am learning to let go of the ego of this to see myself as more of an enabler of the inevitable unfolding of the future than its seed. It has caused me to become hugely optimistic, at times giddily excited, about the opportunities of the world and humanity's evolution. 

We are, I now have faith to say, spirit-in-the-making. Our evolutionary history - from atom to molecule to cell to body to mind to soul - charts an inevitable path. As a founder, I'd encourage you to look for the part you and your company are playing in the symphony of cosmic evolution. To align yourself and your team with this greatest tide of our being is the single most integrative step you can take to instill even the hard times with meaning and purpose.