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MIT Alumni, technologist, venture capitalist, marathon runner, Colorado dweller,
thinker, blogger, and all around super human, Brad Feld (LinkedIn, Twitter) has made a huge impact on startups. With posts on his personal blog, Feld Thoughts,
and on Ask The VC (a must read for anyone interested in venture funding) Feld has played a major roll in lifting the curtain on the traditionally mysterious venture process. We recently caught up with him for a quick interview.
The venture investing process used to be largely a mystery. Young entrepreneurs were not sure how to value their companies, nor were they sure what to make of the term sheets offered to them - largely because the mechanics of venture math weren't open to them. But recently the rules of the game have changed. The venture process is now much more open, in no small part because of Brad Feld.
Feld is also responsible for building what is today a thriving tech community in Colorado. When he moved to Boulder 15 years ago with his wife Amy, there was little to no tech presence. Today Boulder is a boom town, buzzing with some of the sharpest brains in tech. Companies like Lijit, Me.dium, and Gnip, as well as a whole pack of TechStars (which Feld started with Dave Cohen) alumni headquartered in Boulder.
Besides making a huge impact as a VC, Feld is one of the most inspirational people I've met. It is my pleasure to connect our readers with him via this interview.
I grew up in Dallas. I got an Apple II computer for my bar mitzvah and quickly became a reasonably well adjusted teenage computer nerd way before it was cool. I went to MIT, got a few degrees from there, and started my first successful company (Feld Technologies) when I was a sophomore. With a partner, we grew Feld Technologies into a decent sized (20 person) software consulting firm before selling it in 1993 to a public company (AmeriData Technologies). I worked for a few years at AmeriData while making angel investments with some of the money that I made (companies like Net.Genesis, Thinkfish, Harmonix, and Critical Path).
My wife Amy and I randomly moved to Boulder, Colorado from Boston in 1995 (Boston wasn't home for us) and have never looked back. In 1995 I started working with the Softbank making investments with them and in 1996 teamed up with three of the other guys working there to start Softbank Venture Capital (which turned into Mobius Venture Capital). I've been actively investing as a VC since 1996 in a wide range of software and Internet companies around the US. Last year (2007) I started a new firm with four of my friends from Mobius and we launched our new fund (Foundry Group - www.foundrygroup.com) in the fall of 2007.
While Feld Technologies never took in any investment (we only raised $10 to start the company) a number of our customers were Venture Capital firms. We wrote back office software for the VCs to help them manage their portfolio accounting and reporting which - prior to us coming along - was a nasty spreadsheet exercise. I got to know some VCs and after we sold Feld Technologies did some consulting work for a few of them as I was investing as an angel investor. My connection with Softbank was random but timely, as Softbank was making an aggressive push to invest in Internet companies in the US (which directly overlapped with my angel investing). I woke up one day and had co-founded what became Mobius Venture Capital.
I am a thematic investor. I like to pick a few themes - either deep technological protocols or what I anticipate to be broad market changes in the adoption and use of technology - and invest in the themes over a 10+ year period. Historical themes including email and RSS; current themes include these along with the Implicit Web, Human Computer Interaction, Digital Life, and something we call Glue.
So - thing #1 is "does it fit a current theme?" If no, we pass unless it is an entrepreneur that we know or have worked with before (we aren't a slave to our themes, but the bar for looking at something outside a current theme is usually having an existing relationship.) The next thing we look at are the people. Are these people we want to work with? Do we think we'll have fun creating a company together? Do we trust each other and believe we can have an open conversation regardless of the circumstances? Will we be able to kick ass together? If we get past these two gates, then we go deep.
Best: Based on combined financial metrics and realized absolute dollar returned, probably Service Metrics. Worst: In terms of heartbreak, probably Interliant. I co-founded it, it maxed out at a $2.5b public market valuation in 2000, and was bankrupt in 2002. I've had plenty of bad investments that didn't ever get off the ground; the toughest ones for me have been the ones that had huge value at some point and then got decimated when the Internet bubble burst.
Implicit Web, Human Computer Interaction, Digital Life, and Glue.
I was a cross country runner in high school and always loved running. When I hit age 35 (around 2001) I was a blimp, way out of shape, and physically worn out because of how intense work had become. I decided I needed a big goal that would force me to spend time away from work that would benefit me. Marathon running was a logical one since I had always loved to run. I decided that I would run a marathon in every state in the US by the time I turned 50. I've knocked down 10 of them (the 11th is happening on June 21).
Warren Buffett, Bill Gates, Andrew Carnegie, George Soros, and my grandfather.
"Do, or do not. There is no try."
When it's over, they dig a hole in the ground, put you in it (or spread your ashes somewhere), print your picture in the newspaper and write some nice things about you, and then life goes on for everyone else but you. Live every minute that you have.
"...someone is going to build a billion-dollar company around the implicit social graph. And I'm betting on Skydeck." Jason Devitt
Welcome to the second installment of our new People in Tech series. In this post we interview Jason Devitt, CEO/Co-Founder of Skydeck. It's a mobile web startup built on the premise that "you ought to be able to manage your cell phone records the same way that you manage your email." The second big idea of Skydeck is that your true social network is hidden in your communication records. Read on for more insights...
Do you remember Vindigo? Back in 1999, when the Palm Pilot was booming, two young guys quit their trading jobs at the hot NYC hedge fund D. E. Shaw & Co., with a vision of the future that we are only starting to live today. Jason Devitt and his partner David Joerg dreamed of a mobile phone that was web aware, geo-location aware, and full of useful user generated content, reviews and games. Now Devitt is back with his second startup, also in the mobile space: Skydeck. We caught up with him for an interview.
Almost a decade ago, Devitt and Joerg recognized the power behind the idea of a hand held computer that users carried around with them wherever they went. The duo went on to build Vindigo city guide - one of the first successful consumer applications for mobile devices. The software automatically loaded local information onto Palm Pilots and allowed people to find reviews of local businesses and restaurants. It was downloaded by over 2 million users and won numerous awards.
Five years later, Vindigo was acquired by For-Side.com - one of the largest mobile media companies in the world. And Devitt is back with Skydeck, which brings the social dimension to your phone in a whole new way. Before reading this interview with someone we found to be a very insightful and visionary entrepreneur, we recommend that you get a feel for what sort of person Jason Devitt is by watching his testimony before the US Congress.
Note: Skydeck is still in private beta, but if you mention ReadWriteWeb during sign up, you will get an invite straight away.
I grew up in Ireland, studied electronic engineering and law (long story), and then spent four years working for an extremely successful hedge fund called D. E. Shaw, in London and New York. That was like getting paid to do an MBA, but more importantly the company moved me to New York in the middle of the dotcom boom and I finally discovered what I wanted to do with the rest of my life: start companies.
Vindigo was one of the first companies in the US to sell content and applications for mobile devices. We published about twenty different titles for BREW, Java, Palm, and Windows devices. We powered apps for MapQuest, the New York Times, MadLibs, and Plaxo, we managed the mobile web portal for a tier 1 US carrier, but we also developed our own content and we were best known for our first app, the Vindigo city guide. We started that company in my apartment, built it up to $10 million in revenue, and sold it in 2004. Vindigo is still in business and still profitable as far as I know, but I left in 2005.
My co-founder Mike Wells and I were working on a completely different business idea, and our research for that led us to take a close look at cell phone bills. We realized that there's a lot of useful information locked up in your bill in a useless format. For example, if you live in the US, there's a complete record of all your calls each month - both incoming and outgoing. We asked ourselves why is this data so hard to get at? Some carriers let you download a CSV file, some smartphones let you export a file, but the vast majority of carriers and phones don't offer either and there are no standards for the rest.
You may think it's a good idea that all this data disappears into the ether. But it doesn't. Your carrier uses it to market new services to you. Your employer can get at it if you have a business plan. The police can get it if they have a warrant, and the NSA can get it without a warrant. So why can't you? That was the starting point.
There are actually two big ideas. The first is that you ought to be able to manage your cell phone records the same way that you manage your email.
Imagine if Outlook or Apple Mail or Thunderbird only showed you the last ten emails that you had sent or received. What would you do? You'd try to make notes about emails that were important. You'd send someone an IM instead of an email just to make sure you had a record of the message. You'd try to guess the last time you sent an email to a customer. But most of the time you'd just forget about a message as soon as something else grabbed your attention. You'd get by - you may remember life without email at all - but it would be broken. Yet that's how our cell phones work today. We plan to fix this. We start with the data in your phone bill, marry it to your address book, and turn the list of numbers into a history of all your conversations so that you can search and sort and filter it just like your email archives. We're working towards real-time data.
The second big idea is that your true social network is hidden in your communication records.
Your true network is not the list of people that you 'friend' on Facebook or LinkedIn; it's the people that you call and text and email and IM every day. Those friends are not created equal. The ones you speak to most often are important, and the guy that you exchanged one email with in 2001 is not, even if he tags you on every new social site online. Skydeck maps your true social network using your cell phone data. Straight away you can see who you call most often, who you need to call, and who never calls you back. If you make a lot of phone calls, this can change your behavior. Over time we'll help you use the data to manage and prioritize all your communications, including activity on other networks. And as of last week we let you share some of the data - with everyone opting in - so that Skydeck members can see not only which other Skydeck members have connected to you, but which of them really know you well.
We need you to trust us with some very sensitive information. We decided that one way to earn that trust was to avoid asking for the username and password to your cell phone account. So we wrote an extension that stores those in your browser, retrieves your bills on your behalf, and uploads them to Skydeck.
We've had mixed reactions to this approach. Some people see any download as a security risk in itself; others share a computer and don't want to store passwords in the browser. And some people would sooner give up their social security number, home address, and medical records than spend 30 seconds installing a toolbar. On the other hand, some people appreciate the effort we made and others love the toolbar because we included a gauge showing how many minutes and text messages you have left on your account each day. In the future, we'll offer people a choice.
Your true social graph is much richer than a list of connections, because each connection has some measure of strength associated it with. The challenge is that this graph is directed and asymmetric, unlike most networks you create online. This means, for example, that each person has a unique, personal view of the network.
We've just started giving users the ability to browse and explore this network. Adding better ways to navigate it, keeping it up-to-date as the data flows in, and scaling the whole thing are some of the technical challenges we're excited about.
We just talk about the next iteration. And the next iteration is data that updates every day, not just once a month.
When we started Vindigo in 1999, a smartphone was the Neopoint 1000. In 2000 I bought the first phone in the world with a color screen, the Sony Ericsson T68. There was no mobile web, there was only WAP, and WAP was so awful that we built our first app for PDAs. Just a year ago people claimed that the iPhone would never be a mass market product because it was too expensive. Now it's $199. Five years from now, a phone with the feature set the iPhone had at launch will be free from Tracfone, without a contract.
But the biggest and most important change is the move towards open platforms. Mobile 1.0 companies like Vindigo couldn't do anything without the permission of carriers, and some of our best ideas died on the vine. That's why I was happy to testify to Congress and the FCC in support of the open access provisions for the 700 MHz auctions.
Today most phones have a credible web browser and more than 10% of new phones have an open OS. (Not open source, just open to installing a third-party application; the bar is low in mobile.) That means there are a lot more services that companies like Skydeck can take directly to the consumer. This is the only way the mobile market will ever realize its potential, unless the carriers get religion and embrace innovation. And thanks Alex, but my 'second coming' won't do that.
In our culture we place too much emphasis on leaders and not enough on teams.
The implicit graph will be to social software what PageRank was to search.
The implicit social graph is the true social network that I mentioned previously, the network deduced from your communication history: automatic, dynamic, weighted, and not necessarily symmetric. Social software refers to any application where people interact, from Facebook to eBay to email.
A problem common to all social apps is that the more successful they get, the harder it gets to pluck the signal from the noise. Yogi Berra may as well have been talking about MySpace when he said "Nobody goes there anymore. It's too crowded."
Starting out on eBay, my reputation should not be zero, it should be based on the reputation of the people who know me well. I should be able to give out a public email address, but block messages from everyone except my true 1st and 2nd degree. On Twitter I should be able to follow the 25 people who are most important to me at any given time. And I should be able to do all this without having to make and maintain a list of who those people are, and without having to fill out forms, check boxes, and assign people to groups every time I meet someone new.
I'm not claiming that we've got it all worked out and that Skydeck will be the next Google. I know of at least six startups exploring different aspects of this. There are also people working on it at Yahoo, Google, and Facebook, and readers should take a look at MIT's work on reality mining.
My 'insight' is that someone is going to build a billion-dollar company around the implicit social graph. And I'm betting on Skydeck.
Please post any additional questions for Jason and also, let us know who else you'd like to see interviewed in our "People in Tech" series via the comments below.
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