Archive for the ‘Networking’ Category

Building mental health and resiliency amidst COVID-19

March 24, 2020

By Peter Zaballos

Given most of our energy and attention is focused on life during coronavirus, I thought I would outline a few actions we can all take to preserve our mental health, the relationships around us, and our career integrity.

Stay in tune with coronavirus updates, but sparingly. We all learned this with politics and the election cycle. With 24×7 news cycles, the same angst-enriching programming is served up, continuously. And there is ample research that shows you all this does is create anxiety for you, because you can do nothing about. So be informed, but not obsessed.

Make the most of your isolation time

Reinforce distanced relationships. We’re all bereft of socializing with friends and colleagues right now. A good friend whom I haven’t seen in a while texted me two days ago. Just to check in. He said he’s intentionally dropping short notes via text and WhatsApp to friends to let them know he’s thinking of them. We had an awesome ten-minute exchange. I am paying that forward. Contact your friends and colleagues, briefly but frequently.

Buy locally, tip generously. While we do rely on Amazon for a lot, we have shifted as much of our spending as possible to local merchants. Grocers, convenience stores, tiendas, restaurants doing take-out. These resources are going to be the backbone of a socially-distanced lifestyle that may last months. Support these folks. Tip generously. I mean 50%-100% generously.

Exercise – in your home, outside if you can, safely. There are awesome exercises you can do in your home, without equipment. Do this – it will given you a break from work and keep your mind and body healthy. If you can go outside, do it safely, if you are allowed to. Research shows that getting out – in a safe manner – can help you manage your mood and overall well being. It’s one of the reasons why victims of the Spanish Flu were often treated outdoors. Sunlight and fresh air truly are medicine.

Prepare for a lot of change, and a lot of friends’ change. And light touch reconnections is a good foundation to lay for helping you and your friends cope with a significant amount of change. The gig economy worked great in a boom market, but we are going into a profound recession, and those same jobs that are easily added are being easily shed. I have a lot of friends who are freelancers and consultants. Those fields are going to see significant employment reductions as well.

This last one is perhaps the most important. No matter where you work or what you do, people are going to be losing jobs or having hours reduced. I have checked in with my friends in the VC community and they are handling this environment the same way we did at FTV in 2008: freeze hiring, scrutinize budgets, eliminate unnecessary spending, and conserve cash.

And that’s just for the tech sector. The hospitality industry is being fundamentally gutted right now. Everywhere you look demand is drying up, which means business will either forcibly or voluntarily close, and people — friends, friends of friends, neighbors — will be out of work or at risk of losing their jobs.

In this time of need, your friends and neighbors will need you to help them cope, help them find their path, help them find their place of calm. This is when the best can show up in you and the people around you.

Be the catalyst, be the hope, be the inspiration.

Work for many companies

March 12, 2020

By Peter Zaballos

One perspective I’ve gained of having worked in lots of different places (the Bay Area, Boston, Seattle, the Midwest) is that you can see the variety of experiences you can take advantage of, and the impact that can have on your skillset and career path.

[And remember, a career path is drawn in hindsight]

Today, I would say that the Bay Area, Seattle and Boston (NYC as well) share a lot in common. Tremendous innovation, extensive ranks of startups — largely founded by experienced, successful entrepreneurs — and available capital. And those high-growth companies tend to share or are adjacent to categories with lots of competitors.

What does this mean to your career path, and most importantly, your personal experience base?

Well, you will have the opportunity to work for a lot of different companies in and around your field, exposing you to new challenges, company cultures, managers, partners and customers. This is going to help you get out of your comfort zone, learn unexpected things, and become more resilient in the face of change and uncertainty.


That last part is super important. Uncertainty and ambiguity are prevalent in high-growth technology companies. As much as we all crave stability and consistency, those conditions will be few and far between when you chart your course in the tech sector. In fact, your ability to learn and grow is diminished in stable, predictable environments.

I just finished reading “Range” by David Epstein, and much of his book is devoted to research-based evidence that the more varied our experiences, the better we become at our jobs. It’s not just about resiliency, but about decision making. In a rather counter-intuitive manner, Epstein shows how knowing a little about a lot of different areas of expertise enables you to make better decisions about any one area.

Seattle has an ecosystem chock full of companies breaking new ground, creating new categories, and changing the directions of computing. No surprise that the Bay Area does too. So when you have reached the limits of what you can learn from one role, you can move to another company (with effort) and expand your experience and fluency with a different set of business problems and technology solutions.

You can also learn what it is like to build a business across different company cultures, CEOs and executive teams, direct managers and co-workers. This matters a lot and is super valuable. The enlightened CEO is a very rare occurrence. Friction-free relationships between Product and Dev teams happen less frequently than you’d imagine. It’s the same with friction between sales and marketing teams. 

So you learn how to manage around or change with these fractured department relationships, or you move on to a more productive next role. Tenure in these three highly competitive geographies can be measured in months. Sometimes years. Rarely a decade.

I would argue the ecosystem dynamic is completely different in the Midwest — this region has a much thinner entrepreneurial ecosystem. There are high-growth tech companies there, but generally only one in a category and little-to-no competitively adjacent companies. This means that to expand your experience base in that geography, you need to change industries or change categories that are far apart within an industry. 

This is really hard to do. 

A recruiter I worked with years ago summed it up this way: “You can change categories or industries keeping the same role, or change roles within the same category, but you can’t do both at once. It’s too risky for the employer.”

What this means in these competitively thin geographies is that employees tend to stay at the companies they were hired into. For a long time. And because there tend to be few adjacent competitors in these regional hubs, if the job you got hired into doesn’t work out, you’re facing a transfer within the company to a different role — further insulating you from broader experience. 

Or you can relocate to another geography to stay within or adjacent to the category you’re already in. Or you can remain where you live, change career paths and start close to the beginning. Both of those options are hard. So you tend to stay put.

Most people are going to stay put. They will tolerate a poor culture, or poor manager. They will tolerate poor relationships across departments. But staying put is the safest of the options. This means the culture of the company you work is the only one you are likely to know. The experiences you bring to your role and threaded through this one company. Tenure matters more than broad experience or innovative thinking. Tenure gets measured in 5/10/15 year increments.

What does this all mean? It all depends on what you want for a career. If you really want to stay at the forefront of your field, it’s clear that getting broad exposure to a variety of roles and company cultures is critical. You’ll be exposed to more unknowns, personalities, and methods, which will help you shape your skillset and experience foundation.

And if you want that broad experience base but are living in a competitively thin geography, this also means you will need to be super international about embracing those new roles, and the sacrifices you may need to make in the short and medium term, to gain that broad experience foundation that could fuel your medium- and long-term ambitions.

It’s that intentionality that is the important part. What do you aspire to do and become? It may be more important to you to push at the forefront of your discipline and be the agent of change in your role and industry. It may be more important that you live in an area you love, and that giving up on career innovation is less important.

But know the landscape. And know yourself.

Thank you, Malcolm Gladwell

January 23, 2020

By Peter Zaballos

Why we donated to Diablo Valley College instead of MIT

I listen to a lot of podcasts. It’s one of the reasons why living in the heart of Seattle is so awesome — I walk a lot every day, and that gives me plenty of opportunity to get lost in a good story.

For the past five or so years, when I could see retirement on the horizon, my thoughts shifted to the crazy career path I had and of course the schools I had attended. I got my MBA at MIT, and they do an outstanding job of alumni relationship development. It’s amazing how easy they make it to stay in touch with classmates. I love this because I started some incredibly wonderful friendships there, and MIT has helped me maintain and strengthen those relationships.

And the MIT Foundation does an equally skilled job pursuing alumni to make donations and to help the school. Over a period of a few years, a talented member of their development office pursued me about a modest donation. These were real, substantive conversations. Honest and transparent.

My wife and I were beginning to start thinking about not if, but when, and how much.

But about two years ago I was binge-listening to Malcolm Gladwell‘s Revisionist History podcast. And his three-part series on the state of philanthropy in higher education really got my attention. The series nets out to this: Any name-brand private university is awash in money. Especially the top-tier private universities. Like MIT. Any contribution we could make just won’t move the needle for a student there.

But in his episode My Little Hundred Million, he made the point that making a contribution to the lesser-known institutions is where you can make a real and significant impact on the lives of the students that attend them. And it was like a thunderclap in my head.

It was then that I realized the school that literally made my career possible, where I was able to first see and feel my potential, was a junior college in northern California: Diablo Valley College (DVC) in Pleasant Hill.

I went to DVC from high school because I was, as Scott Galloway terms it, unremarkable. My high school grades and test scores were horrible. And at DVC I discovered math and engineering and honed my writing. I transferred to UC Berkeley, which put me into my first high-technology job and the career path it produced.

Diablo Valley College, Main Quad

So I called DVC. In an instant it became clear this is where our contribution would have an impact, where we could work closely with the educators and the staff to create a program that could really help people get a leg up.  These students are people who are uncertain of the future — so uncertain that four-year college is not an option. Ground zero of a career that might not happen due to lack of opportunity and frankly, lack of belief in their own abilities.

When I thought about my career, I could so clearly see that it had nothing to do with what my major was or the schools I went to, because I never worked in a job in my major or got a job as a result of the people I met at UC Berkeley or MIT. The path I took had everything to do with being curious, learning how to learn, and solving problems. Not grades or individual classes or test scores.

More important, my path was formed from building real relationships with the people I worked with. Literally every job I got after leaving Cal was the result of knowing someone who knew someone who was looking for a person with my experience and talent. To me the real lesson of careers is that their foundation is formed on the relationships you make along the way. 

So we crafted the program at DVC around four tenets that I can see with the benefit of hindsight were the principles that formed my career:

  • Problem solving skills and collaboration capabilities are the true foundation of future success
  • Careers are profoundly shaped on the strength of the personal relationships you form along the way
  • Curiosity and learning capacity are more important to your career than your coursework or even your major
  • And, critically, career potential is not reflected in test scores or grades

My wife and I have spent the past year working closely with the team at DVC helping create this program focused on high school students who have the potential to go to college but may have been told they aren’t college material or whose grades or test scores make college seem unlikely. The program shapes students’ problem solving and collaboration skills and provides them the support they need to find a path either to transfer to a four-year college and or to a professional role — or both. 

The program welcomes its first cohort in February 2020.

And we’ve named the program Diamante Scholars. Diamante is the Spanish term for diamonds; the program’s aim is to help find the diamonds-in-the-rough who are out in high schools. The overlooked, the unseen. And we chose the Spanish term, diamante, as a way to also honor the Spanish immigrant heritage of my family.

So, thank you, Malcolm Gladwell. If I hadn’t listened to your podcast, I never would have headed down the path that led to the Diamante Scholar program. And I am so looking forward to seeing where these scholars will take themselves.

There is no “career path,” just a network of relationships

March 30, 2018

And how you get from one adventure to the next

A few weeks ago I was asked to give a talk at the University of Wisconsin-Whitewater College of Business and Economics, on the subject of career paths. And the title of my talk was “There Is No Career Path.”

I wasn’t all that that creative. Steve Jobs made this point in his Stanford Commencement speech in 2011, six years before he died. His point was that a career path is only visible in hindsight. The “path” is produced by following your interests and talents. But I want to take that a step further.

My observation is that your career is a product of the relationships you develop along the way in your job along with following your interests and your talents. Notice I didn’t say college alumni networks. One of the points I made to the UWW students was I attended two of the top five universities in the world (Berkeley and MIT), and my alumni networks have produced zero jobs for me.

Networking

But the relationships I developed at LSI Logic, at C-Cube Microsystems, at RealNetworks, and as a venture capitalist at Frazier Technology Ventures have produced six incredible jobs, and have formed the foundation of my career.

When you unpack “relationships” there’s a lot to examine. For me, relationships are formed by establishing trust and credibility with the people you work with and for. And you do that by doing what you said you would do. By speaking your mind. By being honest. By acting with integrity. By being in a culture that aligns with your values.

Your network of relationships is fundamentally about about your personal brand.

That’s right, your personal brand is made up of the people you work with. How well you communicate to them. How well you support others. And that all involves . How you treat them. Those experiences, those memories persist. They’re your personal brand.

Finding the next adventure

And here I am, at another juncture where I am about to move to my next adventure. I left my role as CMO at SPS Commerce in early January, to return to Seattle. Family reasons draw us there, and I really wanted to get back to my roots – building category-creating technology companies.

And it’s this network of relationships that is guiding me. Which made me think of another set of conversations I’ve been having with folks I know – about how instrumental these relationships are to discovering your next adventure.

I’ve been employing the method that has propelled me to where I am now, and which I know will get me to where I want to be next. It involves four activities:

Hone your story – What this means is having clarity about what it is you want to do and what you’ve done to prepare you for this, and it’s being sober and humble about what you’re really good at. And finally, it’s about being compelling about why this next adventure is right for the role and for you – and for whoever it is you will work for.

“Your story” is what you say after you meet someone, you exchange pleasantries, and there’s a pause. You then tell the story. Why you’re there with them, why there is context, and you paint a picture of your future that they might be able to help you with.

Lots of conversations – This is the foundation of the process. This is where you start speaking to lots of people who might be able to help sharpen your focus, sharpen your story (you’ll be telling that to them), and who might know someone else who you might meet. But fundamentally you are asking someone to spend time with you. To help you.

It’s awesome your contact will meet with you, so be considerate of their time. Thank them. And make sure you see if there’s anything you can do to help them. It will make you feel less bashful about asking for feedback, or to be connected to someone else.

Considerate networking – Expect and insist on “double opt-in introductions” – this means the person connecting you someone needs to check with that person to confirm they’re interested BEFORE making the introduction . Only after that person agrees to be introduced, then expect the introduction. This means there’s mutual interest in the conversation.

This also introduces an obligation to responsiveness on your part. That means as soon as you see that email connecting you to the other party, respond promptly – before the other party has to. Your contact is doing you a favor, so demonstrate grace by making it easy for them for them to find a time and place to meet. And while you’re at it, be considerate of the person who made the introduction. In your reply, move that person to the bcc line of the email. That way they will see that the connection has been made, but they are not burdened with seeing the 7+ email exchanges that went into finding a date and place to meet.

Let go of the outcome – This is the hardest part. The only part of this process you can control is your ability to meet with people, tell your story, and explore where this all takes you. What it won’t do is provide a linear path to an awesome next role for you. But enough of these sincere conversations, where you’ve been considerate and forthcoming, will produce a conversation, at some point, that will point to a person or a role, that is exactly what you’re looking for.

It’s that simple. I can tell you every one of the awesome opportunities I am exploring right now have followed these four steps. And it has had nothing to do with where I went to school.

And like with you career – there is no deterministic path you can see stretching forward. Just a network of relationships guiding you down the road.

 

The Unfamiliar State of Funding a Startup

March 8, 2012

I work with a lot of startup companies, and am currently involved with three that share the same characteristics: pre-product, pre-revenue, and at the very beginning of fundraising. And I’m having the same conversation with all three. It goes like this:

  1. The cost of getting a company to scale and even to profitability has dropped dramatically in the past ten years.
  2. The nature of venture capital has shifted from an early stage focus to late stage or even growth equity investing.
  3. Angels and experienced high net worth folks have stepped in to fill the role VCs served for early stage investing.
  4. A viable fundraising strategy can default to a path that doesn’t assume VCs participate at all, or perhaps only towards the end.

Let me expand on each of these points.

COST OF GETTING TO SCALE – THE RISE OF THE MACHINES

There are a lot of factors at work here, to the benefit of entrepreneurs. The rise in cloud computing means that fixed infrastructure expense has largely been eliminated from the business plan, and this will only get better (Amazon just announced it’s 19th price decrease in six years). Virtual teams + Google Docs drive OPEX down even further unburdening you from lease costs.

The shift to “inbound marketing” – social media, blogs, SEO, viral – can drive large volumes of traffic at significantly lower costs (60% less or more) than traditional “outbound methods – and at higher conversion and retention rates. It takes a lot less of your marketing budget to reach and acquire users. With the shift to freemium and subscription business models you can also let your most active users decide for themselves to pay for your services through in-app messaging and offers – significantly reducing the cost of sales.

I call this the “Rise of the Machines” because metrics and machine-driven resources/methods do much of the heavy lifting at a fraction of the cost of human-intensive alternatives. Josh Kopleman surveyed his portfolio and found “…that companies today are 3 times more likely to get to $250K in revenue during an eighteen month period than they were six years ago. ”

VENTURE CAPITAL IS DEAD – LONG LIVE VENTURE CAPITAL

The money that VCs invest comes from “institutional investors” – pension funds, endowments, insurance companies – and these institutions allocate their investments across a wide range of “asset classes” to manage and diversify risk. They tend to make these allocations based on ten year return performance averages, and beginning in 2009 (as my partners and I found out with unfortunate timing) the ten year return for the VC asset class went negative.

That’s for tough the VC industry overall, but if you look at the top 20-25 firms, the ten year return is quite good. So what institutions did was stop putting money in general into the VC asset class, and only put money into the big, established firms. This caused fund sizes to swell (Accel’s most recent fund was $1.35B+ comprised of $475M “early stage” + $875M “growth equity” funds), which incents those firms to put larger and larger investments to work in each deal (to justify their partners’ time).

So at a macro level, investment into VC funds dried up for all but the top firms (reducing the total number of VC funds) and poured into the top firms, shifting their focus to larger investments in later stage firms.

ANGELS BECOME ANGELS ALMOST LITERALLY

At the same time early stage VCs moved out of the market, a wave of experienced tech executives who had made fortunes building internet companies became very active investors. They brought more than deep pockets, they brought valuable insight and experience and even better – intensive, engaged roles with the companies they funded.

And along the way, incubators emerged as mini-factories where angels could become involved with lots of companies and let the law of large numbers help them there. Overall, angels are investing 40% more than they were even a year ago – now over $700K per round, and there are concerns there’s a bubble happening with incubators. But the headlines are, angels have stepped into early stage investing at a scale and role traditionally reserved for VCs.

STARTUP FUNDRAISING HAS NEVER BEEN BETTER, AND WORSE

What this means for startups is you can get your business to scale with ten times less money that you needed 10-15 years ago. $3M – $5M. If you plan well and are well connected you can do this with individual investors who add a ton of value and will roll up their sleeves to help out. The real benefit is you can also find individuals who share the same expectations you have for the outcome of the business. A 5X return on $3M may be the right outcome for the business and for investors who define success as a financial return coupled with a durable business that solves a problem they care about.

It also means you can liberate yourself from having to map your business and outcome to the trajectory that many of the larger VC firms need their investments to align with – they need billion dollar exits to generate the billion dollar returns they committed to their institutional investors.

Don’t get me wrong here. VCs are an important and valuable catalyst to the technology sector and the economy – and many are out there doing what they’ve always done to identify the next great disruptive business. And for your business, a VC can be the exact right fit either at the beginning or once you’ve gotten to scale.

It’s just that now VCs are playing a different role than they have in the past, and for startups this means it’s a brand new, unfamiliar, day out there.

Offsite complete, re-entry, hiatus

September 3, 2009

Well, my adventure came to a rather fitting and comfortable close on Monday August 24th, at about 10:45 in the morning, when I arrived at the Onion Valley trailhead, and met my longtime friend, Miles, who graciously spirited me away to one of his relatives’ condos at Mammoth Mountain, so I could take a well deserved, and very much needed hot shower.  We then spent the next eight or so hours catching up as we made our way back to San Francisco, where I caught a flight back home on Tuesday morning.

The trip was just spectacular.  No disappointments really, of any kind.  An enormous number of small and large pleasant surprises along the way, and a steady stream of incredibly kind and generous people I met along the trail.  I ended up doing about what I had set out to do, mileage-wise (170+ miles, 60,000+ feet of climbing and descending), but had to adjust both the beginning of the trip (started a few days later than I had planned) and the end (decided not to do the 28 miles in two days to Shepherd’s Pass, and left the trail at Kearsarge Pass instead).

I began the trip with two close friends from high school (Ernie and Duane), and was able to end the trip meeting three other close friends from high school and college (Brian, Steve, and Mark)…all of whom I’ve been backpacking with in much of this same country for many years.  And in between I had plenty of time on my own, some days not seeing a single person on the trail, and camping at some lakes where I was the only person there – and perhaps for many miles around.  But I was never lonely, or lacking for something wonderful to look at, think about, or explore.

Two people I met really made warm and lasting impressions.  The first was Patt, the 81 year-old woman who ran the Muir Trail Ranch backpacker resupply station, and whose heart was both huge and warm.  She was charmed with what my thirteen year-old, Ben, wrote on the outside of my resupply package (actually a 5 gallon plastic bucket):  “By opening this bucket, you hereby agree to buy your thirteen year-old son a kitten”.  Ben loves cats, and she and I had a nice long laugh about his wit and seemingly foolproof plan.  Ben, sorry, that contract was not binding in California.

The second was a 20 year-old Cal Poly junior, Ryan, who I crossed paths with for two days, as he was on his way to attempting the entire John Muir Trail (all 221 miles), in nine days.  Ryan has maturity and ambition beyond his years, and carried a good dose of humility as well.  He had failed to do this same adventure in June, went home, figured out what had gone wrong, and came back to do it again.  Meaningful failure in action.  He posted a comment here on my blog when he returned, letting me know he did in fact finish in nine days.

I collected a set of photos and made an online slide show of my trip (using some slick web technology from our company, Smilebox), and it should be on this side of not too long and hopefully not boring:

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Thanks to so many of you for your encouragement and support.  I am deeply grateful I had this opportunity, and appreciated as well as valued every moment I was in the Sierras.

And as some of you may have noticed, I have changed the masthead photo, to one I took of Upper Kearsarge Lake on August 24, in the early morning.  A fitting photo, and it will be nice to have this frame my blog for the coming year.

It’s been a challenging “re-entry” process getting back up to speed on life at home and work, and I wanted this post to also let you know that I will be taking a hiatus from posting here, to focus attention on these areas.  I hope to resume again later in the fall.

Seattle 2.0 Awards – Be Selfish

March 17, 2009

There are a lot of conferences in Seattle right now, and that’s a good sign – it means there’s a lot going on here in the technology sector; it means there’s enough “there” there to justify lots of organizations vying for our collective attention. 

But there are few organizations that focus just on the startup landscape, and the ecosystem that sustains and grows it, from within which we all build our businesses.

Seattle 2.0 is one of the groups that’s focused on startups.  It’s emerged organically like a startup, and it’s filling a void and meeting the needs of a defined target market:  people starting up and growing technology companies in Seattle.

It’s an organization that helps bring people together, helps foster the sharing information.  It helps shine a light on the startup “experience” – a term which was viscerally defined for me by John Jarve of Menlo Ventures as ‘the disaster that doesn’t kill you’.  Yes, experiences get shared, and that just speeds the process of company formation and growth.  A really good thing for us here.

But why should you care about the Seattle 2.0 Awards on May 7?  Well, because you should be selfish, it’s all about you and your startup for four really good reasons: 

  1. Seattle is a startup geography that matters.  We can debate the magnitude, but directionally it’s true.  We’ve created separation from Boston and Austin, and it’s now us and Silicon Valley.  You should want this to accelerate, to create a better talent pool to hire from, better ideas to exchange.  Better everything for you and for us. 
  2. VCs from the valley email me links to the Startup Index because they track it to be on top of the company formation and growth activity of our steadily strengthening technology sector.  You want them here, it’ll help you reduce risk and speed your company development.  More visibility overall, more visibility for you.  You want to be at these awards so you can meet them, you can both learn from each other.
  3. Events like this foster a network effect that’s critical to generating growth through friction-free information exchange.  It’s not just getting people together, it’s getting them together in the right context, with the right tone that enables the sharing of ideas.  Sharing ideas only strengthens them.  Get strong!
  4. And the awards matter precisely because it’s not really important who wins them, it’s the process that brings us all together that matters.  It’s asking you to nominate candidates, talking about them with your friends and colleagues, and then showing up at the event

So, you should go to this event, celebrate all the hard work and determination of the companies and people nominated for the awards.  But most importantly, go there to meet the other people like yourself, who are also working their butts off trying to get a company off the ground.  Go there to meet people who are eager for guidance, experience, or encouragement along the way. 

By the way, I have no vested interest, here.  I don’t know anyone at the Seattle 2.0 organization.  Never spoken to anyone over there.  I emailed them about my blog, and they were kind enough to list it, but that’s the sum total of my involvement with them.  They’re just there getting us all together, just letting the information flow.  And I like that.

I plan to be there, and I hope to run into some of you there too.  Register here