by tomnora | Jan 19, 2015 | CEO Succession, early stage, founder, startup CEO
This post has been one of my most popular on Quora. I originally wrote it in late 2012 when asked the question – What does it feel like to be a start-up mentor? (link to original post). In it I discuss the 3 full time jobs a real startup CEO has. If you read carefully I didn’t even actually answer the question properly, but I did touch on a few truths.
One of the points of this is to realize that maybe yu shouldn’t try to be a startup ceo; most fail at it and are miserable. They Zalsohave a lot of fear that they can’t discuss with anybody – not their team not their investors, not their spouse, not the Board of Directors. All of those people have to be held at a bit of a distance. That’s often where I come in…
Enjoy…
– – –
As a Startup Mentor to over 20 companies over 20 years, plus a few currently, I think the first question is what is the CEO going through? (See below) As thementor you need to empathize, coach, help, counsel and help the CEO develop the business.
What is the startup CEO going through?
Being the CEO of a startup is crazy, fun, very hard work, inclusive, humbling and of course can be quite rewarding. Weekends are meaningless. There is a continuous decision stream where each decision informs the next. Your mind is thinking 24 hours a day, even when you sleep.
When you’re the CEO of a startup, a real startup with product and some cash in the bank and/or revenue, there are 3 FULL TIME JOBS.
1. Raising Money – you are constantly doing this, preparing for this and thinking about this, whether it’s pre-seed, seed funding, debt, revenue, partnerships, IPO or other.
2. Managing and Properly Growing The Business – this includes several things, depending on the size of the enterprise: managing employees, administration, hiring, firing, leases, expenses, unhappy employees, fixing other problems, etc.
This piece is what often kills an otherwise great business, which justifys the case for less is more when it comes to employees and infrastructure.
3. Selling – The CEO of a startup must ABS, always be selling. You start every day working this, just like #1 above, they’re closely related. Using the CEO to close sales no matter what size the business is, is vital to success.
This piece emphasizes the importance of having an awesome, mature VP of Sales, if you can afford it; it takes a lot of pressure off and frees up the time of the CEO.
So the job of the mentor is to make sure everything progresses forward and your protege is staying out of the ditches. It requires strong mutual trust but if you have that, it can be a rewarding win-win experience.
Contact me if you’re dead serious and I can help you. The Startup CEO by Tom Nora
by tomnora | Oct 26, 2014 | Angel Investor, early stage, founder, Hawaii, Revenue Growth, Scalability, startup, startup CEO, Tom Nora, venture
How is it that so many people associated with startups reap the financial benefits, yet others just as close get no financial upside This is a source of frustration among many people in the startup sphere. Imagine if you’re in Silicon Valley right now with no equity in a tech startup, but associated with several people getting six figure “bonuses” because they somehow wound up with some stock in one.
The free parties (or not free) and swag and great stories and boat rides in the bay are nice. Sometimes you’ll even score an iPad or Apple TV, but it’s not the same as being one of the insiders.
Often as startups grow and maneuver their way through the jungle of success or failure, they have a lot of help from those around them.
Often many these people don’t have any equity or upside from their advise or moral support or money lending, or even the spare couch they let you sleep on when you were in their town.
If the startup actually makes it to an IPO, there is actually something you can do.
It’s called the “Greenshoe”. You have to be very careful about this, you can’t imply or promise anything in advance, and it only works when the company goes public, but the Greenshoe is an amazing award for those involved that don’t have equity.
The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. You can offer these options to virtually anyone, friends, family, people who helped your company. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.
Upon the IPO event, the option owner can gain the upside if the stock goes up over the initial offering price and essentially collect that difference.
I’ve used it a few times when I was lucky enough to be able to offer it to friends and family. Strangely enough, some people have declined, because they’re not sure it’s legal; they’ve never heard of it. Others have bought themselves a new Lexus with it.
Here’s more info on wikipedia:
Greenshoe
The Greenshoe should provide motivation for all of us in the startup world to try to continuously build our company steadily, continuously and profitably and to know that you can make many peoples lives a little bit better by sharing the wealth. The rewards are pretty amazing.
Contact me at
#Web #Development #Digital #Strategy #Art| tomnora.com
by tomnora | Aug 26, 2014 | Angel Investor, Drupal, founder, PHP, Revenue Growth, SaaS, Scalability, startup, startup CEO, venture
As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion.
http://j.mp/nora-acquia
There’s a lot of buzz about the Amazon acquisition of TWITCH this week. As a personal friend of the original investor, I’m very happy for this transaction – after 7 years of work, repositioning, and sticking to it their vision has paid off. But that’s a different article…
Less prominent in the news, but possibly more important, is Amazon’s investment in ACQUIA. Acquia, Inc. is the for-profit company founded by Dries Buytaert, the inventor of Drupal, to support his open source project. Drupal was launched in 2001, and Acquia started in 2007. When Open Source software projects are launched, the progenitors often start a for-profit sister company to garner some income from training, support and consulting. Because they are open source. the original products can’t generate revenue, so when these OS projects occassionally blow up into phenomenons like Drupal and WordPress have over the past few years, it’s gratifying but also quite frustrating to watch others derive so much value from your baby while you toil away to lead its growth with no financial return. Plus, there are tons of expenses like servers, bandwidth, office space, travel and the time of many professionals.
Red Hat was one of the first of these types of companies bridging open source with big finance, leveraging Linux support into a profitable business, also leveraging the enterprise. They kind of invented this business model. Sun Microsystems and others almost made it happen, but they were only semi-free. Google has optimized this open source to freemium model in almost all of its products.
But Drupal has succeeded way beyond it’s original expectations. It was originally started as a college dorm project, where many of the best products on the web seem to hatch. It gained recognition during the 2004 presidential campaign when Howard Dean’s IT director decided to use it as a platform for community and campaigning. After that it quickly gained credibility and spread throughout government, and corporate America.
Drupal is now driving some of the largest and most critical websites in the world, including The White House, The Oscars, Twitter, Mercedes Benz, Warner Music Group, The Louvre Museum, The City of Los Angeles and Stanford University. Over its 13 year life the web has vastly changed from primarily static pages to dynamic database driven automated (“rendered”) web page serving, which Drupal excels at. The average website size has also greatly increased, aided by automated rendering systems like Drupal and others. The term Content Management System has become mainstream in everything from the Fortune 500 to small businesses.
Some of Drupal’s success has come from luck, but most of it has been because of strategy and excellent timing. Dries has carefully pushed the technology not to the bleeding edge, but towards the modern edge where enterprises are comfortable. He and his team have avoided many temptations to try new fads, make big changes and try to grow faster. Currently they face enormous pressure to innovate faster, and are responding with Drupal 8, which will incorporate many new modern web architectures previously not part of the Drupal platform.
Acquia has been critical in supporting, guiding, enhancing and positioning Drupal for the past 7 years. It was a startup that launched with funding from day one and has never looked back.
Amazon’s motivation in buying into Acquia is a bit more self serving. Acuia provides premium, high security, supported hosting to it’s customers, which all runs on top of Amazon AWS. Amazon can see that some of AWS most robust and challenging work comes from Acquia with Drupal. For example, Acquia runs its Drupal infrastructure on more than 8,000 AWS instances and serves more than 27 billion hits a month (or 333TB of bandwidth). Amazon has a strategic value beyond many other companies or VCs in their investment.
What will come next? Will Amazon try to acquire all of Acquia before the inevitable IPO? I think we can bet on that.
This is a very contemplative time for Buytaert – he has fierily protected Drupal’s independence and strategic positioning, taking risks but protecting his large customers from drama, can he keep Amazon and Bezos at bay? I have no doubt he will, for he is a true “Startup CEO”, even though his title is CTO at Acquia.
@tomnora
more info on the funding round from @thewhir http://j.mp/nora-acquia
by tomnora | Mar 10, 2014 | AdTech, early stage, founder, Tom Nora
Let’s start with the Non-Tech – Here’s a small piece I just wrote on the subject of how to visit the Bay Area and not be totally focused on techno-nerd things:
You should also expand your horizons beyond the techy stuff. I’ve worked and lived in Silicon Valley off and on for over 30 years (really!) and always enjoy the escapes from my techno-binary lifestyle there.
In fact, if you’re not so one dimensional and career/money/technology focused, you’ll probably have a better chance of meeting the right people.
I’m not disagreeing with the other lists here, especially Scoble’s list is very good and you should do all those. But here are a few of my favorites…
NON-TECHY EXPERIENCES:
>> Go to downtown Los Gatos and walk Main Street and University Ave, it has a very non-techy feel to it. Then sit in the Los Gatos Coffee Roasting Company for a bit.
>> Sit in the Rodin Sculpture Garden on Stanford Campus.
>> Drive the hills between Silicon Valley and the coast, go to the Half Moon Bay for dinner on the pier.
>> Drive up Sand Hill Road, slowly, and take it all in. This is the origin of most of the biggest VC deals in history.
>> Hit some dive bars in SF, there are too many to even list. SF is becoming more techy, but there are still many places where you can forget you’re in the center of techdom.
>> Walk the Golden Gate bridge.
Since SV is so tech focused, it’s actually a pleasant surprise when you find non-tech things to do there. If you do some of the above, I guarantee your trip to Silicon Valley will be much better.
For the technical visit list, my favorite was assembled by Steve Blank…
A Visitors Guide to Silicon Valley | Steve Blank.
by tomnora | Oct 18, 2013 | Angel Investor, CEO Succession, early stage, founder, Hawaii, PHP, SaaS, Scalability, startup CEO, Tom Nora, venture
http://t.co/LkQ7kDluf0
via 5Q03: Puneet Agarwal (True Ventures) on pitching investors, maker culture, and big trends he\’s watching. — The Orchestrate.io Blog.
via 5Q03: Puneet Agarwal (True Ventures) on pitching investors, maker culture, and big trends he’s watching. — The Orchestrate.io Blog.
