All Segments
George Zachary and Steve Blank at Startup Grind 2013
36 segments available
http://startupgrind.com/event/startup-grind-silicon-valley-hosts-george-zachary-and-steve-blank-charles-river-venture-startup-owners-manual/ Watch as two Silicon Valley legends interview each other at Startup Grind 2013. Steve Blank (author of The Startup Owners Manual) and George Zachary (partner at Charles River Venture Fund) talk about the history of Silicon Valley, gritty truths of running a successful startup, and the future of Silicon Valley.
Segments Timeline
Customer Discovery Insights
George Zachary and Steve Blank engage the audience in a discussion about customer discovery and the lean startup methodology. They invite attendees to share their interests, highlighting key topics such as the secrets of venture capitalists and the importance of understanding customer value. This segment sets the stage for a deeper exploration of startup strategies.
"welcome to the startup grind what I thought that maybe George and I do before we start talking to each other is uh maybe do some customer Discovery in the room um who'd like to hear about the lean sta..."
The Financial Meltdown Origins
Steve Blank reflects on his early career and the company he co-founded that contributed to the financial meltdown. He discusses the role of derivatives and the charismatic founder, Rod Beom, who transformed Wall Street practices. This segment provides a historical context for understanding the evolution of financial instruments and their impact on the economy.
"chance how to get a customer to want what you have yes St never told anybody there might be a 30-year like statue of limitations yes what offers value what offers value great some will you repeat him ..."
From New York to Silicon Valley
George Zachary shares his journey from New York City to Silicon Valley, detailing his immigrant background and early experiences in tech. He recounts his time at MIT and his recruitment by Apple, illustrating the path that led him to become a key player in the startup ecosystem. This segment emphasizes the importance of diverse backgrounds in shaping successful entrepreneurs.
"my dad's been my most important Mentor so that's not to butter him up because he's going to ask me he's not he's going to ask me very tough questions which he always has so you need to do that so so G..."
Startup Life: The Early Days
Zachary discusses his first startup experience at Cats, where he was employee number six. He shares humorous anecdotes about his role in quality assurance and marketing, as well as his adventures in opening a sales office in Japan. This segment captures the essence of startup culture and the challenges faced by early team members.
"work for apple and TI uh doing apps engineering stuff because I was working on uh multitasking OS stuff at MIT and apple recruited me when they're doing the Mac 2fx I remember that so did I answer so ..."
The Correlation of Early Coding and Success
In this segment, Zachary explores the connection between early coding experiences and entrepreneurial success. He argues that engineers who start coding at a young age often develop a passion for building and controlling technology, which can lead to successful co-founding roles. This insight highlights the psychological aspects of technical entrepreneurship.
"people in Japan thought I was John Travolta when I went there true story true story and but this this was your first startup uh that was my first startup I did a little company when I was 12 writing c..."
Lessons from Sales and Marketing
Zachary reflects on his time as head of sales and marketing at VPL, the first virtual reality company. He shares valuable lessons about understanding customer needs and the importance of listening to buyers. This segment emphasizes the complexities of selling innovative products and the necessity of aligning offerings with customer interests.
"interesting you you say that by the way does everybody know the name of this Auditorium han han Auditorium Eric Han actually U who was a founder of multiple networking companies in the valley actually..."
Navigating Corporate Politics
Zachary discusses his experiences at Silicon Graphics and the challenges of working in a large company. He highlights the competitive nature of corporate environments and the phenomenon of 'circling the drain,' where companies lose their best talent due to internal politics. This segment provides insights into the dynamics of corporate culture and its impact on innovation.
"learned on selling will basically have to say is you need to listen to who is going to be doing the buying and hearing what they want um you can't in reference to that question you can't make someone ..."
The Entrepreneur's Perspective
Zachary shares his perspective as a venture capitalist, reflecting on what entrepreneurs often overlook during pitches. He emphasizes the importance of chemistry between founders and investors, and the need for authenticity in presentations. This segment encourages entrepreneurs to focus on their vision and passion rather than merely seeking funding.
"that's usually the beginning it's when people get locked into how do we defend our gross margin interesting um and so you've now had a career that spans venture capital and Entrepreneurship and large ..."
The Reality of Venture Capital Meetings
Zachary shares insights into how venture capitalists like himself receive numerous pitches daily. He reflects on the sheer volume of companies he has evaluated and the typical ratio of investments made. This segment highlights the competitive nature of fundraising and the importance of standing out in a crowded field.
"founder builds the company so there's there's also some mistake sometimes where people say well you know you were involved in this company and this this compy if I get you then I will be that successf..."
Finding Passion in Investments
Zachary reveals his personal investment philosophy, which centers around the question of whether he would want to be a co-founder of the company. He shares a recent investment in Udacity, emphasizing the excitement and potential he saw in the founder's vision. This segment underscores the significance of passion and belief in a startup's mission for investors.
"career outside of some seed Investments so that's a thousand to one it's a or worse or Worse yeah and why is that um why is that uh because I don't really get excited about a lot that's the truth and ..."
The Role of Fear in Decision Making
In this segment, Zachary discusses how fear can negatively impact decision-making in startups. He reflects on his experiences and the importance of making choices driven by desire rather than fear. This insight is crucial for founders navigating the challenges of entrepreneurship.
"Udacity that Steve knows um and that I know of some of you might know it and I I knew Sebastian for a while and we were brainstorming about education but when he was talking about the company I was so..."
Learning from Entrepreneurial Experiences
Zachary shares how his past experiences as an entrepreneur inform his advice to startups. He discusses the importance of hiring and capital raising, and how his background allows him to better understand the challenges founders face. This segment highlights the value of experiential knowledge in venture capital.
"a co-founder I mean you're looking at I have this feeling of like do I want to join these people do I want to be around them to build this company and and then what comes next do you do analysis or um..."
The Importance of Focus in Startups
Zachary emphasizes the necessity of focus within a startup, sharing a diagnostic tool for founders to assess their team's alignment on the company's vision. He recounts his experiences with companies that lacked clarity and how that led to divergent opinions among team members, ultimately hindering success.
"I've had to hire people and I've had to fire people and I think I'm lucky because I was born with uh a very involved mom and two sisters and my crazy Greek grandmother lived in the basement yes like t..."
Navigating Co-Founder Conflicts
In this segment, Zachary discusses the common conflicts that arise among co-founders and the challenges of maintaining a unified vision. He shares a personal anecdote about his involvement with Twitter's early days, illustrating how differing opinions can impact a startup's trajectory.
"were seeing 5 to 10x more than I was every six weeks yet I was just seeing one of them and you know what you don't even recognize as an entrepreneur is they're pulling up in the parking lot they got t..."
The Evolution of Twitter
Zachary recounts the early struggles of Twitter, detailing how the company evolved from a troubled startup to a successful platform. He shares insights on the pivotal moments and decisions that shaped Twitter's direction, highlighting the importance of clarity and focus in achieving success.
"diagnostic might be for yeah so so interesting diagnostic as a Founders ask everyone in the company what the company does and what the number one goal is and if you have Divergent opinions then you ne..."
Passion vs. Market Size in Startups
Zachary discusses the balance between following passion and considering market size when making business decisions. He reflects on how founders can be guided by their enthusiasm for their product rather than solely focusing on market metrics, emphasizing the need for a passion-driven approach.
"disaster prone company um there were other founders of the thing called Twitter noag glass and Florian um and of course they wanted me to fire Evan um who was and they wanted me to fire Evan and make ..."
Making Fear-Driven Decisions
In this concluding segment, Zachary shares a personal story about a fear-driven decision he made in his career. He illustrates how fear can cloud judgment and lead to poor choices, reinforcing the importance of making decisions based on desire and conviction.
"Blog but you don't have to write a lot that was Twitter that was Twitter interesting that was that was Twitter and at the beginning it was a very confused situation um Evan was thinking about going do..."
Fear-Driven Decisions
In this segment, Blank recounts a personal experience where fear influenced a critical decision in his career. He illustrates how operating out of fear can lead to poor choices, using a situation involving Nintendo and internal company dynamics as a cautionary tale.
"[Music] so I'm trying to think what example to use without completely embarrassing myself um that's what this is for that's what Derek is hoping that we have some real quotable moments here yeah I wou..."
Navigating Board Dynamics
Blank shares insights on dealing with challenging board dynamics, likening a board to a multi-headed Hydra. He explains how a founder's confidence can influence board behavior and offers strategies for maintaining control and vision amidst investor pressures.
"didn't operate out of fear you actually yeah I I had fear what was going on but I had to do it what you did the right thing I did the right thing because Nintendo would have just ripped up the contrac..."
The Role of Fear in Venture Capital
This segment dives into the sometimes toxic nature of venture capital board meetings. Blank recounts a particularly bizarre incident involving a board member's aggressive behavior, highlighting the impact of fear on decision-making and company culture.
"decisions what do I need to do so you just think it's because they're they're not busy enough have you the VCS I mean have you ever seen malice sure really yeah I was on a board of a company in the la..."
Creative Constraints at Shutterfly
Blank reflects on a pivotal moment at Shutterfly where a board member's fear-driven reaction stifled creativity. He discusses how this incident shaped the company's culture and product roadmap, ultimately leading to missed opportunities in innovation.
"not true now you're about to get your money's worth right here what's what's the oddest thing George um the oddest one uh was uh yeah statue of limitations I don't care anymore um uh there's a company..."
Empowering Founders in Decision-Making
In this segment, Blank emphasizes the importance of empowering founders to make key decisions, particularly regarding company sales. He shares a personal anecdote about a successful acquisition, underscoring the need for founders to retain control over their vision.
"was going to walk out and leave so how do founders deal with toxic boards well that was a really bad situation what would but in general what would be your advice um I think the most important thing i..."
Women in Silicon Valley
Blank and Zachary discuss the evolving landscape for women in Silicon Valley, noting the increase in female founders and their unique challenges. They explore whether women are playing by different rules and the importance of passion and commitment in successful entrepreneurship.
"investor driven culture um well say that again founder driven culture versus investor driven culture yeah but the valley has kind of been an investor driven culture has it um it has been I I I I think..."
Balancing Family and Entrepreneurship
Steve Blank shares his personal insights on how having a family impacts entrepreneurs. He reflects on the challenges of balancing responsibilities between family and startup commitments, emphasizing that understanding priorities is crucial for success. This segment highlights the emotional and practical complexities of being a founder with a family.
"ask you the last one of one of those Founders is here great raise your hand there is she is yeah Mercy um I'm gonna ask you the last question and then you get to ask me some questions but the last que..."
Dysfunctional Families and Startup Success
Steve Blank discusses an intriguing pattern he has observed: many successful founders come from dysfunctional family backgrounds. He explains how these experiences can foster resilience and adaptability in chaotic startup environments, while also cautioning about the potential downsides when it comes to executing a stable business model.
"I think it's incredibly difficult I've seen very few people do it successfully and where is that rank in um in having fun in the valley where would you rank your family where would you rank your famil..."
The Role of Mentorship in Entrepreneurship
Steve Blank recounts a conversation with his mentor, Katherine Gould, about the traits of successful CEOs from dysfunctional backgrounds. He emphasizes the importance of mentorship in recognizing patterns of success and how these insights can guide both investors and founders in navigating the startup landscape.
"they've never had and that is the ability to operate in chaos uh while everybody else is melting down uh they're going really somebody quit screaming at each other normal day at home um and no one die..."
The True Nature of Entrepreneurship
Steve Blank articulates his belief that entrepreneurship is not merely a job but a calling. He stresses the need for founders to be deeply passionate about their mission, as the challenges of startup life require unwavering commitment. This segment captures the essence of what it means to be a true entrepreneur in Silicon Valley.
"rest of your life um and by the way the reason why I personally know this is one of my mentors was a on the first women VC's Katherine Gould um and I thought I had recognized this pattern and I went t..."
Investor Insights: The Value Add
George Zachary and Steve Blank discuss the real value that investors bring to startups beyond just capital. Blank highlights the importance of pattern recognition and industry experience that investors can offer, suggesting that effective communication of these insights can significantly benefit founders navigating their business challenges.
"so Steve your route to becoming the Steve of now has gone through lots of different turns and twists attention deficit disorder yeah uh what is the what is the most important thing you learned as a Fo..."
Finding the Right Co-Founder
Steve Blank shares his experiences with co-founders and the challenges of finding the right partner in a startup. He discusses the dynamics of teamwork under pressure and the importance of assessing compatibility and commitment when choosing a co-founder, providing valuable advice for aspiring entrepreneurs.
"um and you know this made me think only decades later that entrepreneurship is not a job not a job entrepreneurship is a calling it's a passion if you're a Founder now you might be employees and yeah ..."
Understanding VC Perspectives
Steve Blank discusses the importance of understanding venture capitalists' perspectives and how their insights can provide valuable pattern recognition for founders. He emphasizes the need for founders to recognize the shift in power dynamics in Silicon Valley, where the value added by founders is increasingly acknowledged by VCs.
"you what I'm seeing in the industry and how Founders have failed and whatever and therefore when I'm opening my mouth I'm going to tell you in a board meeting whether this is my hot opinion of the day..."
Finding the Right Co-Founder
Blank addresses the challenges founders face in selecting the right co-founder. He shares insights from his experience with startups, highlighting the importance of emotional chemistry and the need for trial runs to assess compatibility under pressure before committing to a long-term partnership.
"truly is though the value ad you could bring has never been articulated in a way that I've found particularly are they having a bad day or is it experienced does that make sense I don't know if that's..."
Testing Co-Founder Dynamics
Steve Blank advises aspiring entrepreneurs to engage in startup weekends to test co-founder dynamics in a low-stakes environment. He stresses that emotional compatibility is crucial, especially under stress, and that founders should be aware of the characteristics that work well together.
"my classes that during a semester or quarter which you know not that much pressure though if you take one of my classes there's a lot um about a quarter of the teams melt down even in the class um and..."
The Importance of Team Chemistry
In this segment, Blank emphasizes the significance of interpersonal relationships within startup teams. He suggests that founders should conduct a 'trial marriage' with their team to evaluate how they handle pressure and challenges, which is essential for long-term success.
"characteristics that work for someone else some of you just might want somebody who's smart some of you might want a shoulder to cry on some of you might be looking for you know what are the complimen..."
Navigating Investor Pressure
Steve Blank recounts a personal experience where he faced pressure from investors to fire a co-founder. He highlights the importance of standing by your team and the potential consequences of yielding to investor demands, reinforcing the value of loyalty and trust in co-founder relationships.
"later so hypothetically let's suppose you're in a situation where an investor says I'll fund your company but you have to fire your your co-founder because I think they aren't good yeah that actually ..."
Confronting Difficult Investors
Blank shares strategies for dealing with challenging investors and board members. He stresses the importance of confronting issues directly and maintaining control over the direction of the company, advising founders to be prepared to walk away if necessary.
"actually had to walk around the block a lot and think about do they know something I and I went no they're wrong uh I did have to tell Ben that this was actually you know why we were getting past and ..."
Finding and Being a Mentor
In this segment, Blank discusses the nature of mentorship, emphasizing that great mentors often come from a place of mutual benefit. He advises that aspiring entrepreneurs should focus on giving back and building relationships rather than simply seeking mentorship, as this approach fosters genuine connections.
"yes that is exactly right I I don't have any I have so many who has the best question in the room who wants to ask George or I anything best question back all the way in the back ask it yeah yeah what..."