startups

Venture Studio (23): Neil Capel, CEO of Sailthru

Sailthru

I sat down recently with Neil Capel, CEO of SailThru, a company that was born out of a need for a higher standard of email delivery. We met at his offices @ AOL Ventures.

In our conversation Neil describes how he went from consultant at Morgan Stanley just a few years ago to founding a company that will soon be expanding globally. He takes us through his experience of first bootstrapping his company and building a team, to raising a seed round last year, to their $8 million Series A round.

He also gives specific advice to folks like himself who have the entrepreneurial drive- but who are working in large company environments.

Enjoy.

00:06 – What is Sailthru and how does it work?

01:14 – How Neil started out

01:36 – The story of Sailthru's scrappy beginnings, bootstrapping, credit cards, moonlighting, etc.

03:03 – Their first round: all NYC investors: AOL Ventures, RRE, Metaphorphic, Thrive, Lehrer Ventures, DFJ Gotham

03:21 – The big secret in building a team!

03:54 – Something about their customers

04:03 - What's next for Sailthru

04:45 - Neil's awesome advice for entrepreneurs that are just starting out! (Going full force!)

For the full interview click on the image of Neil just below:

 

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So, You Think You Have to Deal With A**holes? Think Again

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If this is your first visit you may wish to follow me on twitter here, my RSS feed here or subscribe via email here

Who hasn't dealt with the occasional a**hole at work? Every American knows it to be one of the unavoidable rights of passage for an employee. Think about it- you have voluntarily chosen to work in an environment created by others and staffed with people not of your choosing. If you didn't have the luxury of choosing carefully you are basically a victim waiting to be victimized.

In fact, I agree with Mark Suster, who often makes the point that getting away from a**holes is probably the single greatest motivator for entrepreneurship in the world.

One thing that frustrates me to no end however, is hearing people who work for a wage complain constantly about all the unpleasant people they have to work with. My view is simple- if you can't stand it, no one is forcing you to work there so why not get the hell out of there? Start bootstrapping a business, join a startup, find a better environment- do something- but by all means- stop whining about it.

So for everyone that thinks they have it tough, here's the true story of a buddy of mine who's going through some tough times right now dealing with some real a**holes- and I mean a lot of them!

This guy is actually an incredible salesman and entrepreneur and co-founded a venture-backed company for 3 years that ended up going sideways after a herculean effort on his part. He was recently getting set to be a part of yet another venture but his wife let him know that she'd prefer it if he took a steady job for a while as they had plans to start a family. It so happens that she has a great job that pays well and has been the family's primary source of income for the previous four years of their marriage. Being a good spouse, he obliged and began a job hunt in earnest...

I saw him recently and asked him where he ended up working. It turns out was able to land a sales position with a medical device company wherein a large part of the job involves him assisting surgeons with a procedure that utlizes this company's device. He makes approximately $1,000 per procedure- not bad, right?

There's a slight problem. The procedure, which he described in excruciating detail, involves people's a**holes- literally. Yes that's correct- you read it right.

Basically, he has to prep the patients (many of whom are elderly and not terribly hygeinic) using iodine and then pieces of tape to "set the stage" for the physician (I won't elaborate), talk to the patients before, during and after the procedure as they are only slightly sedated during these surgeries, and deal with a miasma so rancid that he is often suffering from nausea throughout his workday. (The surgical mask is apparently no match for these odors). There are multiple such procedures daily and he dutifully assists the surgeons as this is part of the excellent customer service he must provide.

I want to point out that the story he told me was so foul that at some point I actually asked him to stop. (Normally I am a pretty good listener). I was literally becoming sick after just a few minutes of hearing about what he has to actually do 5 days a week.

The crazy thing about this was that the guy wasn't complaining to me. He was just telling me about it and saying that he needs to hang in there for now as it pays well and they're going to start a family soon.

Here's someone who has one of the most disgusting jobs a person could ever imagine- and he's handling it somehow. It was profoundly humbling talking to him. Next year he'll be on to his next start-up no doubt- but for now he's taking care of business and making sacrifices for his family's well being.

Anyway- there's some motivation for you next time you're dealing with some a**holes at work or are finding it challenging to bootstrap your next venture.  :)

For Part 31 in in this Series, click here

Venture Studio (7): Jordy Leiser, CEO and co-founder STELLAService

This is Episode (7) of Venture Studio

Welcome to this week's conversation with Jordy Leiser, CEO of STELLAService- one of the most intriguing and sought-after venture-backed startups in NYC. STELLAService rates the customer service performance of online stores and was recently featured in AdAge (here) and on TechCrunch (here). 

Below is a short table of contents (with corresponding minutes) of our conversation:

00:27     Jordy's background & how it led to the founding of STELLAService

01:30     Who invested, how the deal came together 

02:50     Who is this new player in town, Consiglieri?

4:39       The size of their angel and venture rounds

05:25     Who's the team behind STELLAService? 

06:30    Why'd they choose to set-up shop in NYC?

07:15     How a high school internship framed Jordy's perception of branding

07:34     Jordy's previous work w/ IMG and his experience in sports licensing

08:12     The business model

09:45     The STELLAService Seal and what it means for a company to carry it

10:25     Who are some of the companies displaying the seal?

12:02     How are brands picked and evaluated?

13:25     What's the company doing with all the data it's accumulating?

14:13     How many brands are displaying the seal?

16:00    What's Jordy learning about running a company?

16:30    What's currently happening at STELLAService?

17:08     Are they hiring?

Click for Venture Studio (8) w/ Josh Wienstein of YouAre.TV

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Venture Studio (5): Vinicius Vacanti, CEO of Yipit (Part II)

This is Episode (5) of Venture Studio

Welcome to Part II of this in-depth conversation with the extraordinary Vinny Vacanti, CEO of Yipit

In this second part of the conversation we cover topics such as the importance of engaging your fellow entrepreneurs in the tech community, his take on the right way engage with investors, the importance of getting real, honest and at times brutal feedback about your business, and Vinny's description of his team, his business model and what's coming next for Yipit.

Below is a short table of contents (with corresponding minutes) of Part II of our conversation.

:oo         What are the founders doing to engage the NYV tech community?

:54         Who the people are that really end up helping you. 

1:51        The mindset required to be a successful tech entrepreneur 

3:15       How to think about getting to know investors

4:19       Investors as part of the community & "investing in the curve" (!)

6:05      "The most brutal feedback we got.... was the most helpful..."

6:45      "It was like getting punched in the face"

7:05       Their meeting with Eric Paley of Founders Collective

9:05      "Traction is King"... Getting Funded

10:43    "I taught myself all the back-end development, but I am not CTO"

11:27      The Team

12:32     The Business Model

15:06     What is Next for Yipit?

16:50     Vinny's awesome blog:  www.vacanti.me

 

Click Here: For Episode 6 of Venture Studio w/Trevor Owens


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Venture Studio (4): Vinicius Vacanti, CEO of Yipit (Part 1)

This is Episode (4) of Venture Studio

Welcome to Part I of this in-depth conversation with the extraordinary Vinny Vacanti, CEO of Yipit

Vinny treats us to an immensely insighful and transparent account of his ongoing entrepreneurial odyssey. We cover topics such as his decision to abandon the primrose path of a thriving career in finance,  his sudden leap into the world of startups and the challenges of launching a tech company as a first-time entrepreneur. His insights and learnings, including the account of the fateful decision he and his co-founder made to actually learn how to code themselves are a literal treasure trove for any entrepreneur. 

Below is a short table of contents (with corresponding minutes) of Part I of our conversation.

:20        Harvard freshman in '99, the tech bubble, investment banking

2:20     The "kernel of entrepreneurship" could not be ignored

3:15      Post bubble epiphany at a conference: "That's who I want to be"

4:12     Early Days of Yipit, Summer '07, "no idea what we were doing"

5:22     No safety net, no more primrose path: big realizations!

6:47     The leap of faith: Learning how to Code....

8:00     The reaction of his colleagues/family

9:30     Building the early prototpes of Yipit

11:23     The equivalent of steroids for an entrepreneur

11:50    Becoming a deal-aggregator in NY; Groupon launhces

13:57   The Lightbulb Moment: "just aggregating daily deals!"

15:04   The Big Pivot: Building this version in 3 days... first-to-market

16:30    Finance/Corporate World vs. Startup World: different mentality required

 

Part II of our conversation with Vinny


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Venture Studio (3): Mark Loranger of Square 1 Bank

This is Episode (3) of Venture Studio

Get to know Mark Loranger, who runs the Square Roots Program @ Square 1 Bank. Square Roots is completely dedicated to serving the banking needs of promising startups so if you are a tech entrepreneur you'll learn all about what services Mark's program provides for their clients.

In this conversation we explore such topics as:

:43       What the heck is a venture bank?

2:25     What is the Square Roots Program?

3:40     What services do they provide for their clients? 

4:35     What types of companies they work with

6:03     What is their portfolio like?

7:10      Costs, etc... why it's pretty much free, etc.

8:42     Discussion of Startup Genome Project

10:20   Trends Square 1 is seeing in Angel/VC investing

11:40   Convergence of Seed Rounds and Series A in 2010

13:40   How this convergence resembles pro-wrestling!? :)

16:09   Bubble(s) Forming? What's happening in 2011?

16:27    Ron Conway/Yuri Milner/Y combinator           

Click For Venture Studio (4) w/ Vinny Vacanti, CEO of Yipit

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Remembering Dersu Uzala, Siberian Entrepreneur- Community Organizer

Dersu smokes pipe

This is part of my Series on Entrepreneurial Culture.

As another epic (and frenetic!) week of awesome Silicon Alley entrepreneurship events draws to a close,  many of the thoughts and emotions I experienced last year around this time bubbled to the surface once more. Amazingly, the community energy, sense of togetherness and momentum here NYC is just getting better and better somehow. Just tonight at Columbia for example- we're actually hosting Mark Suster in front of a sold-out, standing-room-only crowd, and tomorrow morning none other than Steve Blank!  Here are examples of two very experienced and talented guys with a national presence who are constantly giving back, cultivating and educating the entrepreneurial communty. And here they are in NYC- joining us and enlivening our atmosphere. Anyway, I'm re-posting some of these thoughts once more, as I'm sure only a handful of early loyalists to these scribblings of mine actually saw it when I originally posted it last year:

It occurred to me recently that when you find yourself around folks that take great care to cultivate the particular ecosystem in which they dwell, the environment is always uplifting and enriching.  A recent venture event I attended of this kind brought to mind that great character, Dersu Uzala, who Kurosawa immortalized in one of my favorite films of the same name.  So as to set the stage for my main point, I’ll recall now one of the early scenes from memory, so forgive me if I omit some details.

On a freezing cold night in the Siberian forest a group of Russian soldiers are suddenly joined by a mysterious Nanai tribesman as they sit warming themselves around a fire. He seems ancient and does not greet them as they sit in stunned silence watching him as he slowly lights his pipe. After some minutes he breaks the charged silence and strikes up a conversation with them. It turns out that this is the beginning of their remarkable adventure with this nomadic tiger hunter who serves as their guide through the wilderness. The men soon learn that wherever he goes he is looking out not just for himself, but for those around him and who might come after him. Twice he saves the lives of Captain Arseniev and his men by virtue of his great experience and wisdom and in one scene they watch with fascination as he leaves some food behind in a remote shelter for anyone that might stumble there after their departure.

The Russian soldiers never forget Dersu. If you’re able to rent the film from NetFlix, I doubt that you will forget him either.  Let me know what you think.

We who make our livings in the world of start-ups also dwell in our own precious ecosystem comprised of entrepreneurs, investors, advisors, inventors and technologists. It seems to me that how we tend to it and how we treat each other along the way will be the ultimate measure of how much we can achieve.

 

Discussing University Entrepreneurship in NYC with MIT's Entrepreneurship Review

Wall Street Bull

I was recently interviewed by MIT Entrepreneurship Review, MITER, a very cool new online journal covering the topic of innovation in and around the university space. One of MITER's founders, Erdin Beshimov, a Sloan MBA student formerly with Polaris-backed startup Experience and I had a good conversation about university entrepreneurship generally, but with a focus on all the good things happening in NYC.

I told him that whereas we still have a lot of work to do-  we are making great strides with university entrepreneurship in NYC of late.

For the full interview, click here.

Evening Read: 6-10-2010

Morning Read: 5-12-2010

Entrepreneur Survival Guide: Motivation, Courtesy of Uncle Nikolai

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This is part of my Series on Entrepreneurial Culture.

"I tattooed 'survive' on my hand the night before I went away to prison.
And I did. We do what we have to do to survive..."

Uncle Nikolai (25th Hour)

I've posted here about how to deal with massive and unexpected knockout-type punches as an entrepreneur. But there's another type of dangerous threat to an entrepreneur's well-being and survival:

It is the phenomenon of interminable waiting.

You see, entrepreneurs are always in perpetual motion, hurrying from one task to another, taking calls, having meetings, raising money, cajoling, selling, emailing, tweeting, blogging, hiring, partnering, selling some more, stressing, exhorting others, and so on and so forth. To the outside world it all seems like a dizzying whir of movement. Less visible is the fact that this is exactly how the entrepreneurial species waits. Waits? Waits for what exactly?

Think about it. You know what I'm talking about. It's that internal clock we have ticking inside that's coldly tracking the next milestone in our business amidst all the apparent chaos: private beta, first product release, first customers, first investor, Series A, hitting break-even, that big partnership, that first million in revenue, that first bad-ass hire, that first good piece of PR, that first big spike in traffic, and on and on. It never ends. We feed off of it- we live for it.

The problem is, most of these major milestones seem to take forever to materialize. There are always delays, endless obstacles, issues, difficulties, crises that delay our progress. We're fighting inertia, indifference, short attention spans and it's inevitable that moments arrive when our resolve, our will, our morale and in many cases our cash begin to melt away. That internal clock of ours so intent on progress gradually goes haywire and all this interminable waiting begins to cause despair. Thoughts of capitulation slowly creep into our minds...

How we handle and see our way through these moments define who we are as entrepreneurs and whether we survive or die.

That's why I recommend you rent and then watch a certain scene in 25th Hour several times. (Once my buddy Nate over at AnyClip posts it, I will link to it). It is the scene in which Uncle Nikolai describes to Ed Norton's character how he survived through his toughest moments in life. (Norton's character is facing seven long years in prison.)

Sometimes we entrepreneurs need some inspiration and encouragement and this scene will fire you up if you are out there now giving it your all- trying to survive. Let me know what you think.

Morning Read: 5-3-2010

Morning Read: Curiosities and Tidbits 4-28-2010

Morning Read: Tidbits and Curiosities

Morning Read: Curiosities and Tidbits

The Iconoclast Speaks: David Heinemeier Hansson on the Supremacy of Profit in Startups

This is part of my Series on Entrepreneurial Culture and Philosophy.

Every start-up entrepreneur should tune-in to this fascinating debate between David Heinemeier Hansson and Jason Calacanis on TWiST. For those of you who haven't heard of him, Hansson is actually the Danish creator of Ruby on Rails and a founder of 37signals. He's a truly original thinker and makes a consistent and compelling case for the supremacy of profits (not revenue!) as the ostensible goal of a start-up. He's completely outside the conventional thinking and if you don't mind some strong language here and there, this is definitely worth your time. For Hansson it's all about your best idea and "the work" itself and not about the startup "game" and all the baggage that comes with it. Great stuff!

Startups, Not Bailouts Create New Jobs? Wait, So the Emperor Has No Clothes?

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This is part of my Series on Entrepreneurial Culture.

People in the start-up and investment community understand from first-hand experience that when it comes to job creation- start-ups are where it's at. It's also great to have organizations like the Kauffman Foundation, (that actually study, support and promote entrepreneurship), around to back this up with some hard stats. Below, for example, is the staggering reality about new job creation in this country:

“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less...” (Kauffman Foundation)

But here's the problem: People who are not in the start-up, investment or tech scene, (read: the majority of the American electorate), through no fault of their own, do not for the most part realize this fact. This is probably because much of the mainstream press does not focus on or cover this reality.  I see very little emphasis on how critical talented entrepreneurs are to the growth of our economy and to job creation.

I was therefore amazed and delighted to finally see someone from the 'mainstream press' actually step-up on the big stage and bellow-out a big unqualified YAWP for the need for our government to focus on policies that support start-ups and entrepreneurs instead of hurling taxpayer billions at bailouts. G-d bless Thomas Friedman! How often do you see a NY Times columnist writing stuff like this:

"Good-paying jobs don’t come from bailouts. They come from start-ups. And where do start-ups come from? They come from smart, creative, inspired risk-takers. How do we get more of those? There are only two ways: grow more by improving our schools or import more by recruiting talented immigrants."

I couldn't agree with Tom more and I've covered some aspects about how I think we can improve entrepreneurial culture in our universities here and here.