Blog articles

A Trip Down Memory Lane

A VC - December 18, 2018 - 4:21am

With the news of Google and Amazon’s huge expansions into NYC, many people are asking “how did NYC tech get to this place?”  Well, I am going to post a 25 minute video history lesson at the end of this blog post that explains that.

But first, I’d like to talk about how I ended up doing that history lesson, which in and of itself is a history lesson.

When the Internet sector started to emerge from its nuclear winter in the late 2003/early 2004 (which is also when Brad Burnham and I went out and raised the first USV fund), those of us who were still working in the Inernet sector were looking around for a narrative and a rallying cry.

Tim O’Reilly and John Battelle came up with it. They called the re-emergence of the Internet/web sector “Web 2.0” and they launched a conference called Web 2.0 Summit in the fall of 2004. It became the hub of the renewed vitality of the tech/internet sector and we went out to SF every year to attend it.

By 2008, it was clear that NYC was increasingly an important part of the Web 2.0 story, by virtue of companies like Etsy, Tumblr, Delicious, and other important “web 2” companies started in NYC (and funded by USV).

So John and Tim decided to host a Web 2.0 Summit in NYC in 2008 and to celebrate that, they asked me to give a history lesson in the emergence of tech in NYC in the mid 90s. I did that and it remains one of my favorite talks I have given.

Here it is. I hope you enjoy watching it as much as I enjoyed doing it.

Categories: Blog articles

Supersize Your DJ Set

A VC - December 17, 2018 - 4:10am

Our portfolio company SoundCloud just launched a pretty cool thing. If you are a DJ and use one of the popular DJ software products, you can plug SoundCloud into it and make your mixes right from the cloud.

Here’s a 15 second video advertisement for this new feature:

SoundCloud has announced that this feature is coming to all of the popular DJ software products soon. 

It is great to see SoundCloud, a company that got its start with DJs, bringing all that it has built over the years back to it early users.

Categories: Blog articles

Negotiating: Drawing A Hard Line or Building A Negotiating Cushion?

A VC - December 16, 2018 - 7:25am

I believe that negotiating is more of an art than a science. There are certainly strategies and skills that one can develop that make for better outcomes.

But the art comes into play in figuring out what the person or people on the other side are optimizing for and adopting a strategy that reflects that.

I have found that a single style and strategy rarely works well for every situation.

Let’s take the important question of whether you should make a “take it or leave it” offer and then draw a hard line on that offer or whether you should make an offer that has a fair bit of negotiating cushion in it.

Some people like to negotiate and expect to negotiate. If you make a hard line offer and refuse to negotiate with them, they will be frustrated with you and may seek out other offers. Or if they do end up transacting with you, they will feel burned by the negotiating process and you will be starting off the relationship on the wrong foot

If you make an offer that has a lot of room for negotiating, they may actually enjoy the experience and come away feeling like they got a good deal from you.

I like to shake hands at the end of a negotiation with both parties pleased with where they ended up. That is particularly important when you are entering a long term relationship like a venture capital investment.

It is also critical to know what your “must haves” are going into a negotiation and what you can give on.

Another form of negotiating art is how you reveal your must haves and where you are flexible. I have found that it is not helpful to a negotiation to lay all of that out at the start. There is a lot of value in a discovery process. It is a bit like dating. Each side reveals a bit about themselves to the other and that is also very helpful at the start of what might be a long relationship.

All that said, there are times when drawing a hard line is appropriate. If the other side has all of the leverage then it is often best to make your best offer and say take it or leave it. If, for example, the other side has used a process to drive price discovery and possibly discovery around other key terms and has multiple offers, you are not going to win the deal with the low ball offer with negotiating room. You have to give it your best shot and then walk if you can’t win on that basis.

Like most art, it takes some time to learn all of this. You can take a class or a workshop on negotiating tactics and learn the fundamentals. I would strongly recommend that for young folks just getting started in business.

But when it comes to learning how to size up the other party, well that takes time. You have to mess up some negotiations, lose some deals, and possibly win some on terms you later regret.

It is that last bit, living with the terms you negotiate, where the greatest learnings come. I have found that a very powerful argument in a difficult negotiation is when you say “I did that once, I deeply regret it, and I’m never doing it again.”

Categories: Blog articles

Audio Of The Week: Mythology Was The First Science Fiction

A VC - December 15, 2018 - 6:35am

I loved this A16Z podcast featuring Adrienne Mayor who recently authored “Gods & Robots: Myths, Machines, and Ancient Dreams of Technology“. Early in this podcast Adrienne states that mythology was the first science fiction and then she goes on to explain why. It’s a fun and educational listen. My favorite kind.

Categories: Blog articles

Feature Friday: Plan A Trip

A VC - December 14, 2018 - 4:21am

I don’t really use Waze that much. My trips are typically a combo of walking, biking, subways, and driving and Google Maps does a great job of offering all of those options. Waze is made for driving. So I am more of a Google Maps user than a Waze user.

But Waze has one feature that I am increasingly addicted to: the “plan a trip” later feature.

I am going to Brooklyn this morning for a Board Meeting and then I need to be in my office later. So I pulled out my phone, launched Waze, and figured out when I need to leave by (if I am going by car). 

It looks like this:

Given that Google (which owns Waze) has this data, I would love to see Google add this feature to Maps and apply it to subway trips as well.

I would also like Google to add this data to scheduling a meeting in Google Calendar.

Imagine if this feature was available in Resy and Open Table, when you are deciding when to book a table. Imagine if this feature was available any time that you are selecting a time for something and need to travel to it.

We are living in a time when our phones and the services we use know so much about us and the world around us. That is problematic and getting more so. But it is also true that can offer magical experiences that makes our lives so much better. This plan a trip feature and other places it can be applied is an example of the latter.

Categories: Blog articles

Down Time

A VC - December 13, 2018 - 4:25am

Yesterday I upgraded to a higher tier of hosting service from my hosting provider (Bluehost). AVC is now running on a “virtual private server” vs a “shared server” in the past.

That upgrade was processed in the middle of the night last night and after it completed, AVC went down.

Anyone who tried to access AVC in the last six hours was served this error message:

Account Suspended

Which is mildly embarrassing, as it appeared as though I have not been paying my bills

Categories: Blog articles

Pixel Slate

A VC - December 12, 2018 - 6:09am

My Chromebook journey has led me to the Pixel Slate.

As I wrote here a few months ago, I have wanted to move to a Chromebook for a while and I finally decided to do it.

I started with the Pixelbook, and I have been using it for about three months as my only machine at work. I wrote a bit about what I like about it and what I don’t like about it.

The lack of a biometric login (face or finger recognition) is a real limitation for me with the PixelBook because you have to use your Google login to unlock the device and I’ve got a very strong password on my Google account.

So when the Pixel Slate came out and offered fingerprint login, I bought one. I got it this week and have set it up and started to use it at work.

It’s a really interesting device. I bought it as a Pixelbook replacement as it has a keyboard that turns it into a laptop (sort of). It works a lot like the Microsoft Surface in that regard, although I have never used a Surface so I can’t really compare them.

But the thing that really kind of turned me upside down on the Slate is when I started installing Android apps on it. Once I had the native Gmail, Calendar, and other Android apps on it, the Slate started to feel like a massive phone to me.

So now I am really trying to understand this device and how best to use it.

I am intrigued by the hybrid nature of it, part laptop, part tablet, part phone.

I may very well start taking it with me when I travel, instead of my MacBook Air. 

In any case, I am now in full discovery mode with this device. And very excited to see all that it can do for me.

The one thing that took me some time to figure out is the biometric login. If you login to the device with your work Google login, the fingerprint login may not be available to you (that’s what happened to me).

With the help of my colleague Nick, I figured out that I could install the device with my personal Google login, then add my work Google account to it, and then I was able to use the fingerprint login.

I don’t really understand why Google deprecates the fingerprint login for work accounts as they allow that on the Pixel phone. 

But in any case, I got all of this working and I am now going to see how far this Pixel Slate can go with me. I am pretty optimistic that I am really going to like it.

Categories: Blog articles

When Markets Overcorrect

A VC - December 11, 2018 - 4:28am

When capital markets change direction, to the upside or to the downside, they often go too far before finding the right balance. When they overshoot to the downside, you can find some real values.

Back in the financial crisis of 2008, I was blogging about that as it related to the big tech stocks (Apple, Amazon, Google). The market hated everything and you could buy the big three tech franchises at crazy low prices as it related to their fundamentals (revenues, profits, cash flow, etc). And so I did and a lot of other people did too. And when the market came back in 2009 and beyond, those who bought at those bargain prices were rewarded.

So, it may be time to start thinking this way in crypto land. The reason I say “may” instead of “is” has to do with the fact that really bad bear markets take a while to find their footing and start moving up again. I worry that it will take crypto a while before it can make a move upward again. I wrote about that in this post a few weeks ago.

But nevertheless, I think it is time to at least start looking for fundamental value in crypto land. Ethereum is trading below $10bn. There are some traditional businesses in the crypto sector that are valued at almost that level. And if you believe in the fat protocols thesis, as I do, that gets my attention.

But there are more rigorous ways to think about fundamental value in crypto and one of the best known fundamental value thinkers in crypto is Chris Burniske, a partner in Placeholder, a crypto venture firm that USV is an investor in and I am an investor in too.

Chris posted a bunch of charts and analysis yesterday comparing Bitcoin and Ethereum to a bunch of measures of the fundamental value of their networks.

This chart from that post is the most telling in my view:

The green line is the use of gas to pay for smart contract execution on the Ethereum network. The blue line is the market cap of Ethereum. The growing gap between the green and blue lines represents, to me, the sign of market overshooting itself.

There remain some important fundamental questions about Ethereum so it is not like Apple, Google, and Amazon back in 2008. There is still existential risk in Ethereum. It could fail as a protocol and go to zero. So there are many reasons not to go all in on Ethereum right now.

But if you view Ethereum as a call option on the possibility that it will retain its role as the leading decentralized smart contract execution platform, then I think it is starting to look pretty compelling. And analysis like the work that Chris is doing is really helpful in determining things like that.

Categories: Blog articles

Leadership and Self Care

A VC - December 10, 2018 - 4:57am

I saw this tweetstorm by Jack Dorsey on Saturday evening and thought “Good, Jack is taking care of himself.”

For my birthday this year, I did a 10-day silent vipassana meditation, this time in Pyin Oo Lwin, Myanmar

Categories: Blog articles

Thinking Ahead To 2019

A VC - December 9, 2018 - 5:46am

In the last week, we have learned that Uber, Lyft, and Slack plan 2019 IPOs. I am sure that a few more highly valued private companies are also planning to go public in 2019.

It is something that I have been expecting and predicting for a few years now. Eventually these companies that have raised a ton of capital in the private markets will choose to go public and generate liquidity for the shareholders who plowed all of that capital into them.

And yet storm clouds are on the horizon for the capital markets in 2019. Rates have risen significantly in the last eighteen months, pulling capital out of the equity markets and into the fixed income markets. There are some leading indicators that suggest a business slowdown is on the horizon, which would be the first one in the US in a decade. And, of course, the situation in DC is getting dicey and that will weigh on markets as well.

Good companies can go public in bad markets so I am not saying that the long delayed IPO plans of juggernauts like Uber will be squashed by a bear market in 2019. 

But what I am saying is that 2019 is shaping up to be a very interesting year for the capital markets that power the startup economy.

There is a big difference between the private markets and the public markets. They do not move in lockstep. For years now, the late stage private markets have been trading at valuations that are well in excess of their public market comps. That is true for a number of reasons. First, private market investors have longer time horizons and are looking for a three to five year return, not an immediate one. Second, private market investors get a liquidation preference which in theory protects them from losses. Finally, deals in the private markets clear in an auction like environment where the highest bidder wins the deal. All of these factors mean that a hot company can raise capital in the private markets at valuations well in excess of where they can raise capital (and trade) in the public markets.

But the public and private markets are connected to each other. If the Nasdaq falls significantly, and it is down roughly 15% from its highs in the late summer/early fall, then it will eventually weigh on the private markets.

And, if Uber, Lyft, and Slack do go public in 2019, where they price and where they trade will impact startup valuations, both late stage, and ultimately early stage too.

These markets, public, late stage private, and early stage private, feed off each other and the participants in one look to the others for supply of deals and liquidity. So while they may appear to be disconnected, and often are, they do ultimately sync up.

And so I’m wondering if 2019 is the year they start to sync up again, after quite some time being out of sync. And if that comes to pass, what it means for our portfolio companies and their financing and liquidity options.

Fortunately for most of our portfolio companies, and most companies in the startup sector, we have had a number of years of very flush capital markets and many companies have strong balance sheets and a lot of staying power. The same is true of most venture capital firms as the past few years have been a great time to raise capital.

So if things slow down in 2019 and I am not predicting they will, but I think they might, the startup sector is in good shape to weather it. But at some level, the startup capital markets are a game of musical chairs and you don’t want to be the one who can’t find the chair when the music stops. 

Categories: Blog articles

Video Of The Week: The Shifting Funding Landscape

A VC - December 8, 2018 - 6:46am

Our friend and USV Limited Partner Beezer Clarkson hosted a panel at the recent Slush Conference in Helsinki talking about the shifting landscape for startup funding. My partner Rebecca participated on the panel along with several others.

It’s a roughly 30min conversation and covers the big topics in startup finance.

Categories: Blog articles

Funding Friday: Signal Problems

A VC - December 7, 2018 - 5:43am

One of the most vexing issues facing NYC right now is our transportation mess and at the heart of it is the subway system.

My favorite chronicler of the subway mess is Aaron Gordon and his Signal Problems blog/newsletter.

If you want an example of the quality and clarity of Aaron’s analysis and writing, I would point you all to his post on Amazon HQ2 and the transportation issues it presents.

So what does all of this have to do with Funding Friday? Well, I am glad you asked. 

Aaron is offering regular readers the opportunity to subscribe for $50/year and help support his efforts to shine a bright light on the MTA and all of its issues. 

I think we need more journalism like the kind that Aaron is providing and so I signed up for the $50 today. 

If you are a NYC resident and ride the subways regularly and want to stay on top of what’s going on, I strongly suggest subscribing to Signal Problems and while you are at it, you might consider helping to fund this effort with an annual (or monthly subscription). You can do that here.

Categories: Blog articles

Google Photos Feature Request

A VC - December 6, 2018 - 11:17am

I think Google Photos is awesome. It is one of my favorite Google products. The photo search is amazing. And the sync from my Pixel phone to Photos works beautifully.

But there is one thing that bugs me about Google Photos that I would love to see the Photos team address.

When I post a video to YouTube, and then want to share it, one of the options I have is to embed the video with an embed code.

I would love to have the same option in Google Photos. If this feature exists, I can’t for the life of me find it. If it doesn’t, I would love to see them add it.

I can assure you that if this feature existed, I would be sharing a lot more photos here at AVC.

Update: A reader shared with me this third party solution to the embed issue.

Categories: Blog articles

Quizlet Premium Content

A VC - December 5, 2018 - 5:13am

Our portfolio company Quizlet is one of the top mobile apps out there with over 50 million people a month using it to learn something.

Quizlet has existed for over a decade as a wikipedia style learning community with its users creating and sharing study sets on pretty much everything and anything. There are over 300 million of these study sets on Quizlet and that number grows larger every day as more people join Quizlet and create and share their study sets.

This week Quizlet announced that premium content creators are now joining the Quizlet community to share, and sell, study sets that they have created. Premium content creators include publishers like Kaplan and Pearson, digital learning platforms like Babbel and Kenhub, and individual experts like Rob Swatski and Miriam Gutierrez.  

If you want to become a Quizlet Verified Creator and publish your premium learning content as a Quizlet Study Set, you can go here and do that.

None of this changes the basic Quizlet experience that 50 million people experience every month.  As Quizlet wrote in the blog post announcing Premium Content:

You can continue to create study sets and study user generated content to practice and master what you’re learning for free — just like you always have. Quizlet Premium Content doesn’t replace the parts of Quizlet you know and love; it’s adding to it, giving you new ways to use the games and activities on Quizlet to study content you don’t have to create yourself (or rely on other users to create!).

I am excited to see Quizlet add premium content to its massive library of learning material. It allows learners to find new content that may meet their learning needs better than the content they or others have created. It allows teachers and other professional learning content creators to get compensated for their premium content on Quizlet. And, of course, it creates a third revenue stream, in addition to advertising and subscriptions, to diversify Quizlet’s business model.

Quizlet is an amazing learning community. Now professionals can join it and add value while getting compensated for that. I am confident that this new premium content will make Quizlet even better.

Categories: Blog articles

La Hora del Código

A VC - December 4, 2018 - 4:53am

It is Computer Science Education Week. This is a worldwide movement to get schools everywhere doing an hour of code. It started in 2009 and nine years later it is one of the largest learning events in the world.

I celebrated CS Ed Week yesterday morning by visiting PS24 with NYC Schools Chancellor Richard Carranza and Brooklyn Borough President Eric Adams.

PS 24 is a dual language (English and Spanish) PreK-5 elementary school in Sunset Park Brooklyn.  The school is led by Jacqueline Nikovic and the student population is 88% Hispanic and 45% are English Language Learners.

We started in a kindergarten that was a dual language integrated co-teaching classroom. That means these students are being supported in their effort to acquire a second language (English).

The students were using cards with Spanish words on them like Empieza (start), Brinca (jump), and others to create an instruction set. They then followed the instructions. Here’s a photo of one of these instruction sets (those are my shoes on the lower left).

This is a student showing the Chancellor and Borough President her instruction set.

By the time they get to fifth grade at this school, the students are doing Scratch programming in the computer lab.

In this photo below, the Chancellor was pair programming with a young man and a young woman (who unfortunately is blocked in this photo). Let’s just say the kids were doing the teaching and the Chancellor was doing the learning.

PS 24 adopted NYC’s CS4All program this year so it is the first year that teachers in the school are getting professional development in computer science education. Everybody I met at the school, the Principal, the teachers, and the students, seem incredibly excited about getting computer science in their school.

I was particularly impressed how PS 24 has made CS accessible to english language learners. The whole idea of CS4All is that we need to make these skills accessible to all learners, regardless of gender, race, age, neighborhood, language, etc.

Though the teachers and students made it look easy yesterday, none of this is easy. The NYC Department of Education, and the private sector supporters of CS4All, are doing something very hard, introducing an entirely new subject into a curriculum that has largely been stale for the last fifty years. 

Sometimes I struggle with how hard this work is. But when I go out to the schools, which I have done twice in the last month, I get totally energized. Seeing the excitement on the student’s faces makes it all worth it.

Categories: Blog articles

Litigation

A VC - December 3, 2018 - 4:41am

Litigation is something I try to avoid. It is way better to work out differences by sitting down and negotiating a reasonable deal for both parties.

But litigation is a fact of life in business. You cannot avoid it all of the time. Companies and people will sue you even when you have done nothing wrong. So you need to have a framework for thinking about litigation.

Here are some of the things I have learned over the years:

1/ Litigation is expensive and can go on for a very long time. There is no sense of urgency in litigation. You can easily spend more money litigating than settling. If you can settle for less than the likely litigation expense, even if you have done nothing wrong, it is usually better to hold your nose and do that.

There are some people who argue that regularly settling for less than litigation costs will give you a reputation as someone who does that and it will make you a target for lawsuits, often baseless ones. I understand that argument, but I still think settling for less than likely litigation costs is generally the right approach. 

2/ You can lose in litigation even when you have done nothing wrong. I have a friend who is a litigator and he advised me a long time ago that “assume you have a 50/50 chance of losing, no matter how strong your case is, and then you will tend to make the right business decisions.” His point is that you should not fall back on the comfort of a “strong case.” Life is not fair. You can lose when you should win. Plan for that.

3/ Litigation expense is leverage in litigation. Early on at USV, we ended up in some minor litigation. We spent a lot of money on discovery and the other side figured out how to spend very little. We got very far over our skis on the case and we ended up settling on very favorable terms for the other side. We let the other side use expense to their favor. I promised myself I would never do that again. But I see companies we work with do that all the time. It is very easy to want to “lawyer up and fight” and often that is not the best strategy. It can be better to do the rope-a-dope and let the other side spend all of their money and get over their skis.

4/ There are times when you have to fight even if you can settle. If settling a case would materially harm your business, to the point that you would have a hard time operating it, then you must fight. These are existential cases. They are very rare, but they do come along once or twice in a career. When one like this comes along, “lawyer up and fight” is the right strategy and you should amass the best legal team money can buy and you must do everything you can to win. Figuring out when something is existential is the key. Often things feel existential when they are not. That is where the mistakes are often made.

5/ There are lawyers who are great business advisors. I like the term consigliere for them. And there are lawyers who are great litigators. Make sure you have both of them working for you in a litigation. If you can get a consigliere in your company as your General Counsel, you will be way better off in litigation. If you can’t afford that, have one on your board or in your life. The consigliere will help you manage the business side of the litigation and the litigator will manage the legal side of the litigation. It is hard for a business person to manage a litigation without a lawyer at your side.

Those are few of the things I have learned over the years. But my first rule of thumb is to avoid litigation if you can. It really sucks.

PS – I realized after re-reading this post that I left out something very important. Arbitration is an excellent replacement for litigation. Think of it as “litigation light.” It is very important to have arbitration clauses in your everyday contracts (employment, construction, sale of software, provision of service, etc). Arbitration clauses require arbitration in lieu of full blown litigation in the event that there is a dispute over the contract. Arbitration is like litigation in that you can lose even though you did nothing wrong, but it will cost you a lot less time and money to reach a resolution and if you lose, the damages are often a lot more reasonable.


USV TEAM POSTS:

Albert Wenger — December 12, 2018
Uncertainty Wednesday: Leadership under Uncertainty

Bethany Crystal — December 11, 2018
Candidates, don’t forget: You’re interviewing the company, too

Dani Grant — December 11, 2018
Holo Kitty

Categories: Blog articles

Centralization vs Decentralization

A VC - December 2, 2018 - 7:05am

Decentralization is one of, if not the most, discussed features of the crypto tech stack. In a decentralized system, no single body controls the system. We have most certainly not reached the era fully decentralized systems, but that is what most of the world-class technologists working in the crypto sector are focused on getting us to and I believe we will get there in the not too distant future.

If you are a student of tech history, you will not be surprised that decentralization is also the right technology arriving at the right time to solve some of the most challenging policy problems facing the tech sector right now.

Before I elaborate on that, I want to show you a slide from my colleague Nick‘s deck on crypto that he uses to talk to policymakers and elected officials. I believe he borrowed it from our friends at Placeholder and they are credited at the bottom of this slide.

Here is my quick explanation of that slide.

IBM had a near monopoly on computing by virtue of their domination of the mainframe, mini-computer, and, it seemed, the PC computing platforms.

But the open PC hardware standard allowed Microsoft to develop an operating system that could run on any computer built to the PC hardware spec and they eventually unseated IBM, only to become a near monopoly themselves.

But just as we were wringing our hands about what to do about Microsoft’s monopoly, an open source operating system (Linux), the internet protocols, and the free distribution of the world wide web undid that monopoly and we got Google, Facebook, Amazon, and other big tech platforms.

And now we are wringing our hands about these near monopolies and their market power and the ability of bad actors to manipulate them. And around the same time, the technology to architect and scale a completely decentralized system emerges.

The other thing that is true of these moments of hand wringing is that just as the technology is emerging to unseat the near monopolies, regulators and elected officials try to put the genie back in the bottle using traditional regulatory techniques that often end up more deeply entrenching these near monopolies.

To give you an example of how this might happen, I am going to suggest you all go read my partner Albert’s post from yesterday on Twitter and how one might approach addressing some of the vexing problems that platform is dealing with right now.

Albert points out that:

On the minus side the calls to treat Twitter as a traditional publisher are growing.

That is how elected officials and regulators often think. They look backwards to find a model of regulation that has worked in the past and try to apply it to a new thing. But as Albert explains:

The idea that there could or should be a single central institution, let alone a commercial company, which as a benevolent dictator resolves all of these issues to everyone’s satisfaction is a complete non-starter.

Instead he proposes a few ideas that are steeped in decentralization:

my preferred go to answer is to shift more power to the network participants by requiring Twitter (and other scaled services) to have an API. That would allow endusers to programmatically create the best version of Twitter and would also make it easier to simultaneously use Twitter and new decentralized alternatives.

And

Twitter should significantly expand the features that let individuals and groups manage the visibility for tweets for themselves. There are already useful features such as muting a conversation or blocking an individual. These could be expanded in ways that allow for delegation. For instance, users should be able to say that they want to subscribe to mute and block lists from other individuals, groups or organizations they trust. One example of this might be that I could choose to automatically block anyone who is blocked by more than x% of the people I follow (where I can choose x). Ideally these features could be implemented at the tweet/conversation level and not just the account level.

So you can see that by decentralizing the power to the edges of the network INSTEAD of further concentrating it by requiring the network owner to further centralize power is the right answer, both from a technology perspective and a regulatory/policy perspective.

Sadly, I think we are in a race with ourselves in this centralization vs decentralization debate. We need the decentralized tech stack to evolve more quickly and show the world how decentralized technology works in a mainstream way at scale before policy makers and regulators force the tech sector to go the wrong way.

And, most disturbingly, the regulators and elected officials are taking actions, well intended of course, to slow the decentralized sector down, not speed it up.

Which is why we at USV have been spending a lot of time with public servants of all kinds, educating them, imploring them, and desperately trying to get them to understand where we are, why it is an important moment, and why we need to this new technology to succeed.


USV TEAM POSTS:

Bethany Crystal — December 11, 2018
Candidates, don’t forget: You’re interviewing the company, too

Dani Grant — December 11, 2018
Holo Kitty

Albert Wenger — December 10, 2018
World After Capital: Bots for All of Us (Informational Freedom)

Categories: Blog articles

Video Of The Week: The Sorkin-Clayton Interview

A VC - December 1, 2018 - 4:43am

One of the big issues facing the crypto sector is the regulatory question, both in the US, where it looms largest, and elsewhere around the world. In the last few weeks we have seen the SEC reach settlements with several crypto projects and decentralized exchanges, all of which were the subject of enforcement actions or threatened enforcement actions. As I alluded to in this post last week, I fully expect to see the SEC continue to look hard at the crypto sector in an effort to rein in what it sees as violations of its rules on the offering and sale and trading of securities.

In the wake of all that, The New York Times hosted an event last week in which Andrew Ross Sorkin interviewed SEC Chairman Jay Clayton. 

This is a recording of that interview. The conversation is about an hour long. You can/should fast forward to 11 1/2 minutes in to bypass all the introductions.


USV TEAM POSTS:

Dani Grant — December 11, 2018
Holo Kitty

Albert Wenger — December 10, 2018
World After Capital: Bots for All of Us (Informational Freedom)

Nick Grossman — December 10, 2018
Google Pixel Slate: First Impressions

Categories: Blog articles

Funding Friday: Who Is She?

A VC - November 30, 2018 - 4:13am

This Kickstarter project has been popping up in my various notification channels this past week and I finally got around to backing it. It seems like the perfect gift for a girl who you want to inspire to be everything she can be. Sadly all of the Christmas 2018 rewards are sold out.

You can back it here.


USV TEAM POSTS:

Albert Wenger — December 7, 2018
Regulation for Facial Recognition Technology

Bethany Crystal — December 6, 2018
Having a hobby with your partner

Dani Grant — December 5, 2018
A New Tab For Spaced Repetition

Categories: Blog articles

The Pitch Meeting Setup

A VC - November 29, 2018 - 5:48am

We’ve known for a long time that one of the most stressful things for entrepreneurs when they pitch us and other VCs is the initial setup of the meeting when they need to be meeting and greeting the folks in the room and, at the same time, figuring out how to connect their laptop to present their deck.

That combo is a real challenge. Some entrepreneurs navigate it with grace and some really struggle with it. But it is a pain for everyone.

We used to have a cable that the entrepreneur could connect their laptop with but that had its own set of problems as not every laptop would work with the cable.

We use Zoom now and we ask the entrepreneur to get on our guest wifi (no password) and then fire up zoom, join our room, and share their screen.

That works better, particularly when we let the entrepreneur know in advance that is the way we do it so they can download zoom onto their laptop before the meeting.

But even with all of that, we still have this awkward few minutes where the meeting is getting set up.

I am curious to hear from all of you about the best meeting setup situations you have run into in your careers. We do not subscribe to the theory that making it hard on the entrepreneur shows us something. We do subscribe to the theory that making it easy on the entrepreneur is in everyone’s interests.


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Categories: Blog articles
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