The art of the pivot, part 1: The definitive list of successful pivots
the earnest ambitious kid's guide to investors
- Fundraising is brain damage, so spend as little time doing it as possible
- Create an alter ego who you don for fundraising purposes
- Don’t spend a lot of time with VCs if you don’t need VC $
- Only talk to investors with decision-making power, preferably angels
- You know more about your business & domain than 90% of investors
- Momentum matters and sequencing is smart
- People don’t belong on pedestals
- Beware of intellectual dementors and clout demons
- People will help you if you ask for what you want clearly and concisely
VCs need to believe that your company could be a billion-dollar business and generally lack imagination — you need to paint a vivid picture of this path for them, starting with the striking protagonist character you play in your company’s story.Your alter ego should never lie, but it should be completely comfortable showing the fullest expression of your ambition to people who probably intimidate you. Fundraising is a snap judgment game — most VCs are trying to pattern-match you to a founder archetype who already won. They index primarily on IQ, self-belief, experience, and personability (in that order). A general rule of thumb is that to be taken seriously in SV, male founders would benefit from acting warmer, while female founders are taken more seriously when they act colder. Both benefit from acting a little entitled.
a VC’s job is to make a diversified portfolio of bets — you are only one. Most founders find being around VCs distracting and draining because they feel pressure to perform the role of ‘impressive person.’ If you can’t immediately capture value from your performance… why waste your energy?
don’t expect the average investor to provide much value beyond money and connections. This makes the 10% of investors who can be legitimately useful to your business worth their weight in gold. Develop litmus tests to identify the valuable ones quickly and avoid wasting your time trying to convince nonbelievers.
our goal here is to spend as little time fundraising as possible — which requires being strategic about the order in which you talk to investors and how you talk about where things stand as you progress through the raise. The combined force of controlling those two variables are what “generates momentum” during your fundraise process.
Make a list of all the investors you know and can get introduced to, ordering them by the ones you most want on board to the ones you couldn’t care less aboutTalk first to a few low-stakes investors at the bottom of your list to practice your pitch and identify common investor questions and critiques you’re going to getIf available to you, next get a few investors who already wanted to give you money on board so you have a dollar amount you can say you’ve raisedWork your way up your investor list, talking to the investors you most-want-on-board-but-still-need-to-convince last (this optimizes your odds they say yes)
This all goes by much faster if you court investors similarly to how hot girls treat their many potential suitors. If your raise is already a little taken and you exude an air that you don’t need them, mimetically-minded investors become much more interested.
If you’re anything like me, you will worry intensely about not making a fool of yourself. It will probably go ok, but not as amazing or illuminating as you’d hoped. You might leave and feel a deep sense of lostness set in. This is all very normal. In time you will see them in increasing clarity, often noticing the differences between your and their values and why you would not enjoy living their life at all.
the people on pedestals probably hate being there. It’s lonely, hard to trust that the intentions of the new people around you are pure, and you often feel like you’re constantly letting people down. In the end, idolization hurts everyone involved.
Beware of intellectual dementors and clout demonsIntellectual dementors will try to eat your ideas and interestingness — not necessarily to copy you, but to wring your brain dry to amass knowledge themselves. They often play mini IQ games/tests of will in conversation and masquerade as investors while never actually investing. Clout demons are similar, but view people less as brains and more as stepping stones towards supreme social status. The power move to protect yourself from both is to simply abstain from playing their games — give as little info on yourself and your ideas as possible and reflect their questions directly back at them.
People will help you if you ask for what you want clearly and concisely
Knowing what you want requires a lot of upfront soul-searching, followed by strategic and long-term thinking once you’ve committed to a thing (I can’t really demystify this more). Once you’re all in, I highly recommend diligently keeping a list somewhere of the top three things you currently need help with so when people ask, you’re ready.
You don’t want to make people feel like you’re using them but you do want to use your social capital for things you care about. General rule of thumb: ask for things either 1) after a positive interaction or 2) completely out of the blue with a concisely written and compelling email/text. Tone matters because you don’t want to sound desperate and you do want to show you know how to play the game (write like the founder you most admire talks).
once we’ve taken action on behalf of something, our brain assigns more value to said thing. Tim Keller: “The feeling of love follows the action of love.” Love is a strong word here, but the point stands — help people help you. Startups are long-term games, so it only makes sense to do them with people you truly want to be around for a very long time.
101 Additional Advices
Forget trying to decide what your life’s destiny is. That’s too grand. Instead, just figure out what you should do in the next 2 years.
Try to define yourself by what you love and embrace, rather than what you hate and refuse.
Where you live—what city, what country—has more impact on your well being than any other factor. Where you live is one of the few things in your life you can choose and change.
Once a month take a different route home, enter your house by a different door, and sit in a different chair at dinner. No ruts.
Every now and then throw a memorable party. The price will be steep, but long afterwards you will remember the party, whereas you won’t remember how much is in your checking account.
Most arguments are not really about the argument, so most arguments can’t be won by arguing.
invent your own definition of success. Shoot your arrows first and then paint a bull’s eye around where they land. You’re the winner!
There should be at least one thing in your life you enjoy despite being no good at it. This is your play time, which will keep you young. Never apologize for it.
You have 5 minutes to act on a new idea before it disappears from your mind.
The patience you need for big things, is developed by your patience with the little things.
When you are stuck or overwhelmed, focus on the smallest possible thing that moves your project forward.
For steady satisfaction, work on improving your worst days, rather than your best days.
Your decisions will become wiser when you consider these three words: “…and then what?” for each choice.
If possible, every room should be constructed to provide light from two sides. Rooms with light from only one side are used less often, so when you have a choice, go with light from two sides.
There is a profound difference between thinking less of yourself (not useful), and thinking of yourself less (better).
Always ask yourself: what would change my mind?
Becoming one-of-a-kind is not a solo job. Paradoxically you need everyone else in the world to help make you unique.
If you need emergency help from a bystander, command them what to do. By giving them an assignment, you transform them from bewildered bystander to a responsible assistant.
The most common mistake we make is to do a great job on an unimportant task.
Don’t work for a company you would not invest money in, because when you are working you are investing the most valuable thing you have: your time.
Fail forward. Failing is not a disgrace if you keep failing better.
Do not cling to a mistake just because you spent a lot of time making it.
For small tasks the best way to get ready is to do it immediately.
What others want from you is mostly to be seen. Let others know you see them.
When you try something new, don’t think of it as a matter of success / failure, but as success / learning to succeed.
use your honesty as a gift not as a weapon. Your honesty should benefit others.
A good sign that you are doing the kind of work you should be doing is that you enjoy the tedious parts that other people find tortuous.
Celebrating the success of others costs you nothing, and increases the happiness of everyone, including you.
To tell a good story, you must reveal a surprise; otherwise it is just a report.
a long horizon allows you to compound small advances into quite large achievements.
Often ideas are rejected because of the tone of voice they are wrapped in. Humility covers many blemishes.
When you are right, you are learning nothing.
Very small things accumulate until they define your larger life. Carefully choose your everyday things.
If you are impressed with someone’s work, you should tell them, but even better, tell their boss.
Humility is mostly about being very honest about how much you owe to luck.
A good image tells a good story
Forget trying to decide what your life’s destiny is. That’s too grand. Instead, just figure out what you should do in the next 2 years.
Visuals can stir up feelings or paint a scene in an instant. However, they may not always nail down the details or explain things as clearly as words can.
Words can be very precise and give you all the information you need. Yet, sometimes they miss that instant impact or emotional punch.
For each visual you add to your presentation, you should ask yourself “What does it really say?” And then check:
Does it enhance the meaning of my message, or is it purely decorative?
Does it belong at this point in my presentation? Would it be better for another slide?
Is there a better image that says what I want to say?
Computers don’t feel, and that means: they don’t understand what they do, they grow images like cancer grows cells: They just replicate something into the blue. This becomes apparent in the often outright creepiness of AI images.
AI is really good at making scary images. Even if the prompt lacks all hints of horror kitsch, you need to get ready to see or feel something disturbing when you look at AI images. It’s like a spell. Part of the scariness comes from the cancer-like pattern that reproduces the same ornament without considering its meaning and consequence.
Placing pictures next to each other will invite comparisons. We also compare images that follow each other. Make sure that you do not inadvertently compare apples and oranges.
When placing multiple images in a grid or on one slide after the other, ensure they don’t clash in terms of colors, style, or resolution. Otherwise, people will focus more on the contrast between the images rather than their content.
Repeating what everyone can see is bad practice. To make pictures and text work, they need to have something to say about each other.
Don’t write next to the image what people already see. A caption is not an ALT text.
The most powerful combination of text and image happens when the text says about the image what you can’t see at first sight, and when the image renders what is hard to imagine.
Do not be boring or overly explanatory. The visual should attract their attention to your words and vice-versa.
If a visual lacks meaning, it becomes a decorative placeholder. It can dilute your message, distract from what you want to say, and even express disrespect to your audience.
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On Better Meetings
Look a week ahead: Towards the end of a week, I’ll start to take a look at what meetings I have the following week. For any that I’m responsible for, I’ll start pulling together some information for attendees. Sometimes this means updating the calendar invite with an agenda; other times this means starting a Google Doc for what we need to run through during the meeting, and I share it with edit rights for all attendees.
Use meeting goals: If the meeting has a bunch of people in it (like, more than two), especially if those people typically have full schedules, then I’ll write down goals for the meeting. Often, I’ll put those goals in the calendar item, and I’ll mention them at the beginning of the meeting. That means that if we get off-track during our time together, I can hit pause and recenter on the goals, asking folks to continue that other conversation afterward.
Find a plant: Once in awhile, it’s helpful to “seed” the meeting somehow. For example, in one meeting where there’s an “open questions” time and I want people to ask anything, I’ve asked a buddy to think up a super weird one to demonstrate to others that it’s a safe space.
Don’t surprise people in the meeting: Additionally, I do a lot of prep to make sure there’s no surprises in my meetings, at least none coming from me. This usually means that I let a handful of people know about a big announcement ahead of time (or had a tough conversation), usually one-on-one, so they wouldn’t be surprised in front of a lot of other people.
Gain consensus 1:1 beforehand, if possible: My goal with any decision-making meeting is to already have a sense, going in, of what issues people have, what their opinion is, and what they might need to come to agreement. I do as much legwork in advance as possible, so that the whole group is ready to make that decision more quickly in the room.
Few things bog down meetings more than an unclear process, or a lack of clarity about how people in attendance are supposed to participate. By sharing the goals of the meeting and a high-level overview of what we’re going to do there, I hope to make it clear what’s expected of folks in the room.
Setting up a form for people to add their questions to - including people in the shared physical space - so that the facilitator can run through them rather than prioritize the voices in the room
I cancel meetings if they’re unwarranted. I check-in every few months to see if a meeting’s goal still makes sense; I ask attendees how they’re feeling about the length of the meeting, how often it happens, and what we do during it. I iterate on meetings to make sure they’re still effective, or even necessary.
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in terms of innovation and economic output, the people in these regions are about eight times more productive than the average person.
These regions in 2008 were: (1) Greater Tokyo (2) Boston-Washington corridor (3) Chicago to Pittsburgh (4) Amsterdam-Brussels-Antwerp (5) Osaka-Nagoya (6) London and South East England (7) Milan to Turin (8) Charlotte to Atlanta (9) Southern California (LA to San Diego) (10) Frankfurt to Mannheim. Silicon Valley, Paris, Berlin, and Denver-Boulder also deserve a mention as having some of the highest rates of innovation per person.
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