NextWala

Vision with a Vengeance

[Also published on Startup Weekend Delhi]

Founders start companies for many reasons.  They want to build something useful. They have identified a specific pain point in their personal or professional lives and the status quo causes them pain. They have analytically spotted a specific business opportunity. They are inventing something that is a leap forward in their industry or disruptive in general. Or perhaps, they see everybody else doing the same thing and want to jump on the bandwagon!

No matter how small or big the initial idea is at startup, the best founders step back and ask themselves what the high-impact success scenario is for them and what the purpose and vision of their project is.

Yet, why is it that, time after time, many founders fail to communicate this high-impact scenario and sense of purpose and vision? Time after time, the first words uttered by founders to the press or investors or recruits is what they did in the past month or the recent milestones that they have hit or the numerical goal they have in mind. I believe these things are necessary, but not sufficient, to drive a company to high-impact greatness.

Having been a founder myself, I know that the day-in and day-out focus on getting things actually done (considerably higher friction in India than in many other countries) is all-consuming (and appropriate). Yet I think it falls on the founders and management team to have a deep sense of purpose and vision and communicate that to the whole company, through words and through translation into what-does-it-mean for-me for their team. And I believe this translates into better decision-making and execution through your startup.

My goal with this post is not to drive you to spend a bunch of time creating vague marketing-speak vision statements like “Invent” or “The best technology services provider in the world” or “The largest ___ in the country.” My goal is to drive you to think through your high-impact scenario and actively drive toward it with a vengeance.

So, consider the questions below early during the life of your startup and perhaps weave the answers into your execution as well as the (hopefully reality-based!) story you communicate to your stakeholders, whether they be the press or investors or recruits or regulators or others:

• What is the purpose of my startup and how does this connect to the impact I want to have? 
• If my startup achieves its purpose and vision, how will my industry or people’s lives have been meaningfully impacted? 
• How do I work backwards from this purpose and vision to instantiate a specific execution plan? 
• Why is my team the best team to deliver on this vision? If not the best team, how do I build this purpose-focused team? 

Here are some purpose/vision statements that resonated with me. And lest you think that these are just purposes dreamed up after the companies had succeeded, please think otherwise. These companies had this in mind from day one.

LinkedIn 

“Our mission is to connect the world’s professionals to make them more productive and successful… Our solutions are designed to enable professionals to achieve higher levels of performance and professional success and enable enterprises and professional organizations to find and connect with the world’s best talent.” ~ LinkedIn Annual Report

Indian Energy Exchange (a Lightspeed portfolio company)

“We envision an India where the quality of life of the common citizen, rural or urban, is not compromised as a result of power shortages. We indeed envision a power-surplus India and a concomitant healthy competition in the electricity market for the ultimate benefit of the consumer, domestic and industrial… We will help accomplish the above vision by providing the nation with – and enhancing the utility of – our robust, scalable, and customizable electronic trading system with integrated solutions for trading, clearing, risk management, surveillance and counter-party trade guarantee.” ~ IEX website

Square

“Several years ago, PayPal pioneered a new method of person-to-person transactions. Square takes this to a new level of personal accountability by enabling card present transactions with known payers. This is the next step in the cashless society.” ~ Jack Dorsey speaking

Social/Mobile Platforms have Changed the Game in the US (but not India yet)

I was looking at some stats on growth of consumer social and mobile platforms between 2008 and now. Even though it's an obvious point, the contrast is quite stark and shows how much the world has changed in a short time.  It's almost hard to imagine a world where Facebook was a startup much smaller than it is today, LinkedIn and Twitter had very small user bases and iOS and Android each had less than 10M users. But this was the case in early 2008.

The numbers above are based on Crunchbase, SEC filings and news reports - I think they're directionally correct although there may be some numbers that are not exactly right.

While all these above-mentioned platforms or quasi-platforms (and others I have not mentioned) have impacted startups in the US and Europe, I think Facebook and Android are the real game-changers in India as opposed to LinkedIn, Twitter or iOS.

Why Facebook and Android in India?  Here's why: When I think of consumer platforms (a much abused term), I think of a few criteria:

1. a large, engaged and fast-growing audience (100M+ users)
2. a developer friendly culture and technology base
3. a monetization vehicle that is providing enough return to developers for their time

In my opinion, three platforms stand out today and meet this criteria - Facebook, iOS and Android - in many parts of the world.  However, they all fall down in India when it comes to #3 (monetization) and (for now) #1 (audience size).  I have no doubt these platforms will get to the right audience sizes in India in the next 12-24 months - Facebook claims ~50M users and Android has <10M in India. In the meantime, Google reigns supreme for reaching users. 

So, the upshot is that now is the time to start companies leveraging these platforms in India.

Learning from Slideshare's Founders

(Source: Marttj)

[Published on VCCircle]

I have worked with the Slideshare team, as a user, investor and board member at different times, from 2008 till late last year.  After the Slideshare + LinkedIn announcement last week, I have been reflecting on how much has changed and how much (or little, depending on your perspective) I have learnt from this experience since starting out in the venture business several years ago, as well being a founder myself in the late 1990's.

Here's what I learnt from Rashmi, Jon and Amit about best practices of founders.  I appreciated their willingness to work with me and be patient. 

Passion & Focus

• Passion about your userbase is contagious. It impacts the employees and their retention, it impacts your core user base and their retention, it impacts customers and their retention.
• Focus, focus, focus on honing the product – UX, scalability, security, data, analytics and more – but keep trying new product angles quickly to iterate toward high engagement and clear value.
• Focus on crystallizing value to paying customers – make it easy for customers to understand value (packaging, positioning, messaging), connect value to price, and make it easy to pay as customers receive value. To do this, understand who your super-user segments are and why.

Growth and (or versus) Monetization

• Be frugal (if possible) but keep innovating, so you are around when lightning strikes in terms of user growth, revenue or outcomes.
• It’s tough to balance growth versus monetization versus profitability. There is definitely a trade-off. Get lots of input on this from people who have made these trade-offs successfully.
• Understand path from user acquisition to engagement to retention to monetization early on and track associated actionable metrics (a la Dave McClure’s AARRR). Especially for user-generated content, there’s no automatic connection between usage and revenue.

The Outside World

• Acquisitions and successful partnerships take time to develop.  They generally come from engaging over long periods of time. At the end of the day, it’s about people getting to know people.
• Keep tabs on competition, don’t obsess about them though – most companies die of self-inflicted wounds, not because of competition.
• Investors are people. Sometimes your investors and board members know what they are talking about, sometimes they don't, hopefully more of the former.

Becoming a Better Board Member

Through hits (and misses), I also learnt some lessons on how to become a better board member over time:

• Be respectful w.r.t. founders – they known their business better than you do.
• Be patient – there’s no such thing as an overnight success – don’t get too impatient but still hold management’s feet to the fire
• Be thoughtful and have a high bar when suggesting workstreams for the company – their time is precious, don’t waste it.
• Focus on strategic impact – as an investor, focusing on daily management decisions (i.e. micro-managing) will not have a positive impact on the company (and may have a negative impact). Focus on strategic changes, such as building the best management team, making the right bets on monetization, making the right introductions to partners/acquirers, holding people accountable for outcomes.
• Conduct board meetings for the right reasons. Board meetings should not primarily be about reporting only but also about trying to solve problems together and laying the groundwork for scale.  The real action happens outside of board meetings though.
• Align with founders on outcomes. Understand your goals and risk-profile as an investor early on relative to goals and risk-profile of the founders & management team.  Align.
• Angels and VCs are not at loggerheads. As long as companies continue to build value in a large enough market, angel investors and venture investors are aligned.  All the media hype about the two communities being at loggerheads with each other is overdone.

Congratulations to Rashmi, Jon & Amit at Slideshare for LinkedIn sale

I am incredibly happy to see Slideshare's founders - Rashmi, Jon and Amit - find such great validation for their vision of bringing together the world's professionals through their content. Congratulations also to Ross and the rest of the team in the US and India.

LinkedIn's acquisition of Slideshare is a great outcome and I'm sure both organizations will grow symbiotically together.  As an avid user of both, I look forward to many more technical and product achievements over the coming years.  

I remember meeting Amit in Delhi on one of my visits from the Bay Area in August 2006 as he was blogging at Webyantra.net about the web in India.  We kept in touch - he told me to keep a lookout for something they were about to launch.  And then Yee Lee reminded me of Slideshare when they were starting on their fundraise. We got to meet Rashmi and Jon at that time and appreciated not only the care that they had for the Slideshare community but also the power of the content to draw you in for long periods of time. Subsequently, David Siminoff and I led the Slideshare Series A financing at Venrock.  After the fundraise, we got to know many other people in and around Slideshare, including the inimitable Dave McClure, Ross Mayfield and many others at Slideshare in San Francisco and Delhi.  The rest, as they say, is history.

One other note: I am excited that this upcoming transaction will do a lot to boost the entrepreneurial eco-system in India. A good portion of the Slideshare team is based in Delhi - they have proven that teams in India can innovate on product at a world-class level.  In addition, given the relative newness of the venture eco-system here in India, it is great to have so many people find value in their stock options - hopefully this continues to prove to aspiring entrepreneurs and employees at startups in India that their equity can pay-off handsomely.

For old time's sake, here's the presentation that Slideshare put out publicly in May 2008 after the Series A funding. Brings back some good memories...

Meet Dave Meet SlideShare

View more presentations from Rashmi Sinha

Looking for: Utility App for User-generated Local Content Aggregation

[Source: deepatheawesome]

[Published on VCCircle]

Having recently moved to a new area of New Delhi, I am familiarizing myself with everything around me and trying to get the general vibe of what's going on around my local area.  

User-generated content has been quite useful in this regard.  I'm somewhat surprised (although I shouldn't be) with the volume and frequency of locally-related updates on Twitter and the lack of services to curate these in a meaningful manner. I have made "Defence Colony" a saved search on Twitter and check into that once a day in the morning. It's been quite useful.  I see a fair amount of posts related to local photos, crime reports, road traffic, weather, sales/deals, job openings, vendor/restaurant reviews, events etc.  

While each of these categories has been targeted through stand-alone apps, many of which have uncapped upside in large corresponding markets i.e. local traffic/navigation only from Mapmyindia/Inrix/Waze or local services through TaskRabbit (a Lightspeed portfolio company) or local reviews through Zomato/Yelp, I haven't seen the aggregate woven together in a compelling manner.

So I'm looking, as an end-user, for any small utility that weaves this togther. IMO, if a hyperlocal mobile (or web) app can classify these real-time local posts into these separate categories, roll-up the last 24 hours of posts in each category and then let me browse them at will or perhaps even subscribe to specific content as mobile notifications, that could be a useful and engaging service (perhaps notifications with geofencing as per a post I did last year on 'Why geofencing & opt-in notifications could save Foursquare'). Local content would be drawn not only from Twitter but also from Facebook,  (perhaps) LinkedIn, Foursquare, Gupshup and other mobile local services with APIs, using aggregation services such as Gnip.  

Caveat: I haven't seen this sort of service yet but I've learnt to be skeptical about my own ideas as there are invariably several other people who've been thinking far more deeply about these problems and have already gone out and solved them. So please tell me where you've seen what I have described - I'm interested as an end-user.

Here's a sample screenshot for a local search on the phrase 'Defence Colony.' You can see posts around restaurants/deals and local photos:

There is a depth-of-content difference between what I see here in Delhi versus what I saw in San Francisco - however, it's not that different.  This local content is available in most of the big metros of the world today and increasingly in suburban and rural areas.

There is a disambiguation problem that needs to be solved. For example, Defence Colony is a neighborhood not only in New Delhi but also in Bangalore and Lahore, as you can see in the screenshot below.   Perhaps geo-stamped status updates can be used to disambiguate. There is also disambiguation that needs to be done between content categories (crime versus sales/deals versus job openings).

So what's available today? You can of course use Twitter search using the modifier 'nearby:'. There are several tweet curation services like Sulia that could provide local Twitter feeds on a whitelabel basis.  There are also local Twitter feeds like from some local newspapers (e.g. Xtra Toronto here) and Schmap's local feed network here.   I haven't seen anything compelling from Citysearch, AOL Patch, Topix etc either.