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He Built A $2.5 Billion Business At Age 50 That Is Disrupting A 7,000 Year Old Industry

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Dr. Joe DeSimone took his own path to entrepreneurship. His latest venture, Carbon, is changing the way things are made.

He’s assembled one of the most impressive Board of Directors and line up of investors to transform the $300 billion manufacturing industry.

Joe recently appeared as a guest on the DealMakers Podcast. During his exclusive interview, he shared how his team is transforming how the world makes things, the fundraising process, what it’s like building a nearly 500 person company in less than 6 years, and many more topics.

From Academia to Entrepreneurship

Joe DeSimone was born and raised in the suburbs of Philadelphia. Ever since high school, Joe found he had a knack for chemistry. For both understanding it and for teaching it.

He attended Ursinus College, and then Virginia Tech for his Ph.D. On a tip from a faculty advisor, he went to check out the University of North Carolina, at Chapel Hill—-one of the top 10 chemistry departments in the country.

If he would teach organic and polymer chemistry, then they would give him $500,000 to start a research program. He was convinced. At UNC, he enjoyed a highly successful career as a professor for 25 years.

Joe taught a lot of students chemistry and mentored many researchers. He learned that people have very different learning styles. From his perspective, if you want to be a great teacher, you have to take responsibility for explaining complicated topics in accessible ways.

It turns out that is a really important trait for entrepreneurs too. It’s a valuable skill whether you’re doing it in a classroom setting, talking to VCs or investors, or your own employees. The importance of bringing people along with you.

His position in academia enabled Joe DeSimone to pursue a handful of interesting startups based on his research before he launching his newest venture, Carbon, in 2013.

His first company was BioStent. A partnership with an interventional cardiologist at Duke University. They developed a coronary stent that is polymeric instead of metal-based. It dissolves in the body after 18 months, once blood vessels can operate on their own again. The company was acquired by Guidant, and then Abbott.

Next, it was Liquidia Technologies, a partnership with one of Joe’s Ph.D. students including Jason Rolland, now SVP of Materials at Carbon. Liquidia went IPO last year.

They developed technology that leveraged tools from the computer industry to make precision nanoparticles. It spawned new and more effective ways to deliver medicines to the airway.

It has proven valuable in improving treatment approaches for diseases like pulmonary arterial hypertension, and in creating next-generation vaccine platforms for infectious diseases and certain cancers.

After spending 25 as a faculty member at UNC, the opportunity to go to Silicon Valley and take on a new entrepreneurial challenge was something Joe couldn’t pass up.

UNC agreed he could take a sabbatical to pursue his idea. That was five years ago.

Departing Academia for Silicon Valley 

When Joe left North Carolina for Silicon Valley to found Carbon, he didn’t know what the future would hold. Carbon is now one of the world’s leading digital manufacturing companies.

Based in Redwood City, Carbon’s mission is to enable companies to make breakthrough products that can improve human health and well being, transform industries, and change the world.

Joe launched the company and its groundbreaking Digital Light Synthesis™ (DLS) technology on the TED stage in 2015.  DLS fuses light and oxygen to rapidly produce products from a pool of resin. Using DLS technology, Carbon is enabling companies like Adidas, Riddell, Ford and Johnson & Johnson to create breakthrough products at speeds and volumes never before possible, finally fulfilling the promise of 3D printing.

Joe believes that empowering product teams to make breakthrough products and bring them to market faster will change the way we live.

Carbon has cracked the code on 3D printing at scale. The manufacturing industry is a $12 trillion market and manufacturing polymers is a $330 billion market. There is enormous potential here for Carbon to lead the digital revolution in manufacturing.

Creating a Company Differentiated by its Technology, Business Model and Team 

With a team of nearly 500 employees around the world, Carbon has also assembled an impressive team of board members and investors while raising $680 million in the process at a $2.5 billion valuation.

Carbon’s board includes former Chairman and CEO of DuPont, Ellen Kullman, former CEO of Ford Motor Company, and former CEO of Boeing’s Aircraft Division, Alan Mulally, and Sequoia’s Jim Goetz.

Some of their investors include Sequoia, Google Ventures, GE, Adidas, BMW, Johnson & Johnson, and JSR. They’ve also got Fidelity, Baillie Gifford, and Madrone Capital Partners as well as investment from additional international sovereign funds.

Storytelling is everything in fundraising and Carbon was able to master this. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.

Critical Ingredients for a Successful Company

During the interview, Joe shared three of the most important components of building a successful company as being:

1. The importance of IP and patent-protection

2. Building highly differentiated technology

3. Assembling a world class team of people that are committed, passionate, and talented

DeSimone also shared his thoughts on the similarities between academia and entrepreneurship such as the importance of bringing people along with you and painting a vision for the future and how the world can be different.

Listen in to the full podcast episode to find out more, including:

  • Joe’s advice for starting your own company
  • How he created a purpose-led company
  • Building a successful business model
  • Putting your customers first
  • Future-proofing from obsolescence

Alejandro Cremades is the author of The Art of Startup Fundraising, co-founder of Panthera Advisors (M&A and fundraising advisory), and creator of Inner Circle (fundraising tools & resources)

 

I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Most recently, I built and exited CoFoundersLab which is one of the largest communities of founders online. Prior to CoFoundersLab, I worked as a lawyer at King & Spalding where I was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). I am an active speaker and have given guest lectures at the Wharton School of Business, Columbia Business School, and at NYU Stern School of Business. I have been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide my stands on the new regulatory changes concerning fundraising online

Source: https://www.forbes.com

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He Built A $1 Billion Business Where All 700 Employees Work Remotely

Sid Sijbrandij knows a thing or two about building, scaling and even walking away from companies. His current venture is doing over $100 million in revenue and is valued at over $1 billion.

Originally from the Netherlands, Sid Sijbrandiij is now the founder of one of Silicon Valley’s unicorns that is powering the web through developers worldwide. It’s not his first startup rodeo either.

Sid Sijbrandij recently appeared on the DealMakers podcast. During the exclusive interview, he shared his entrepreneurial journey, the process of finding cofounders, bootstrapping versus raising millions, his addiction to fast-growth startups, and many more topics.

Seizing Opportunities

Sid Sijbrandi seems to have always had a gift for spotting business opportunities.

During high school, he studied applied physics and management science. He chose a kind of program that blends the benefits of an M.B.A., with getting good at several engineering disciplines.

In his first year at college, he also started his first company.

The idea came from a fellow Ph.D. student that had made an infrared receiver you could use to skip to the next song on your computer (the only thing that played an MP3 song at the time). He started buying these infrared receivers from him and selling them in the U.S. You’d send him an envelope of dollar bills, and he would then send you a printed circuit board.

Ultimately, his two cofounders didn’t agree on growth plans concerning hiring more people. Sid wanted to hire faster, so he didn’t have to spend as much time on it, while his cofounders wanted to optimize for free cash flow. They ended up parting ways amicably.

The Two Most important Things for Launching with Cofounders

Sid has experienced several startups and says his two big takeaways when it comes to cofounding a company are:

1) To be smart with the shares

2) To be sure you and your cofounders are aligned in vision

For example, automatically making everyone an equal cofounder, even if they come in way later in that process, can be a mistake.

Sid says it is important that shares “are aligned with their contribution to the company. It’s very important if you start a company to have vesting of your shares as well.”

This helps avoid the free rides, because if someone leaves with all the equity, then people that need to invest like VCs are going to be like, “Why am I investing for just 50% remaining of the business.”

In the Netherlands, Sid didn’t find the goal of local companies to grow really fast. If you do want to grow a company really fast, he says it is beneficial to be somewhere like the Bay Area, where everyone just assumes that is the goal.

Not just your cofounder, but also your accounts person and your lawyer, and everybody else requires the growth mindset.

Passion for Growth

After graduation, Sid spent a few months at IBM and could have stayed there. He had an interest in strategy consulting, as well as building a recreational submarine.

He made a balanced scorecard of all the different ways to make that decision. One of the criteria being, “Is this a good story to tell in a bar?” He showed his dad who said it was a ridiculous way to decide on your career but was very supportive either way.

So, he called someone interested in a submarine venture. His pitch was, “Look, you should really hire me because I have a job offer from IBM. Otherwise, I’ll start working there, and we both don’t want that.” He got the job.

He built the first onboard computer for the submarine. Today, U-Boat Worx is one of the biggest builders of recreational submarines. If you go on a cruise, and they have a submarine, it’s likely from U-Boat Worx.

Still, after five years, it just wasn’t growing at a pace that kept Sid interested. He then went on to do a part-time stint on an innovation project with the government as a civil servant.

During this time, he really got to know himself, and how fast-growing companies with a continuous string of problems to be solved were what kept him interested.

Funding Your Startup

After starting and selling app store Appappeal, Sid turned open-source software GitLab into a fast-growing venture that is on its way to an IPO in 2020.

He took the proceeds from his previous venture, doubled it in bitcoin, and began bootstrapping GitLab.com.

Sid got the first few hundred signups through an article posted on Hacker News. Then together with his cofounder applied and got into Y Combinator. The race to demo day, where they would present in front of top tier investors, was on.

Compressing their three-month plan into just two weeks, the GitLab team had a highly successful demo day, landing Ashton Kutcher as an investor.

There was so much interest in their seed round, they rolled right into the Series A financing round. They’ve since followed that up with a B, C and D financing rounds, raising a total of $158 million at $1.1 billion valuation.

Today, some of their investors include Khosla Ventures, Google Ventures, August Capital, ICONIQ Capital, 500 Startups, and Sound Ventures to name a few. It doesn’t get much better than that as a hyper-growth startup.

In order to do this, Sid and his team had to master storytelling. This is being able to capture the essence of the business in 15 to 20 slides. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.

Embracing The Remote Work

Sid states they “don’t do in person.“ At Gitlab they encourage having meetings with webcam. They believe there’s something to see in the other person even if it is via video.

To put this into perspective, every day, employees have a company call, and it’s a thing you do with a limited set of people. In this regard, there are about 20 in each group, and they just hangout.

During the group calls there are all types of topics discussed that vary from movies to magazines. Topics are not necessarily work-related.

Sid and his team very much believe that their company is more than just, “Hey your work…”

As part of Gitlab‘s culture, the social interaction plays a key role and they have a lot of ways in which they facilitate this inside the company. Even if this happens remotely.

M&A Made Simple

Recently Sid and GitLab have been very active when it comes to acquisitions on the buy-side. That includes Gitorious in 2015, Gitter in 2017 and Gemnasium in 2018.

When it comes to acquiring companies, they’ve made the process incredibly simple, and are actively looking for more companies to buy.

In this regard, they like to acquire teams that have built a product before. Preferably a team that made a great product, but didn’t get distribution. Especially because typically they shut their existing product down.

To make things easier, they have an acquisition offer page. It even includes a calculator, so you can go online and calculate how much they’re offering.

Listen in to the full podcast episode to find out more, including:

  • When to pull the plug on your startup
  • The advantages of SAFE notes for raising money
  • How GitLab does meetings and culture around the globe
  • Why they pay based on where team members live
  • Tips for recruiting top engineers
  • Why you should read the GitLab handbook

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley

Source: He Built A $1 Billion Business Where All 700 Employees Work Remotely

He Sold His First Business To Google And Just Raised $120 Million For His Next Startup

Ray Reddy

Ray Reddy has raised millions of dollars in startup funds, sold a company to Google and is taking on the local business gauntlet in an innovative new way. Yet, he chose to exit Google and Silicon Valley to launch his latest venture.

In his exclusive interview on the DealMakers Podcast, Ray Reddy shared the pros and cons of the valley and his fundraising strategies.

The Art of Business

Always curious, Ray wondered if business was like math and science.  He attended the University of Waterloo to study computer science, then a Masters of Business and Entrepreneurship and Technology.

He says he learned some good foundational principles, how to approach complicated problems, and how to learn quickly. Yet, when entering the business world he found that very little of what he learned had any practical knowledge of applicability. He says “it’s much more about common sense and experience than it is about definitive approaches and how to solve some of these problems.”

After school he went straight into corporate strategy at BlackBerry, doing M&A and venture investments. Yet, he has always not only had a lifelong craving for learning, but a passion for building something and building something that he found had a purpose.

What Google Gets about M&A

The mobile phone was starting to consume other portable electronics. It quickly began to absorb portable navigation, portable GPS, handheld units, and portable media players. Yet, no one seemed to be addressing it. Ray Reddy decided to go solve it himself and built a team of people to go after it.

That startup became PushLife.

Prior to the iPhone, they focused on building an experience that made it very easy for people to move content back and forth between their phone and their computers, specifically music. It took normal phones, and it gave them an iPod-like experience on Android, BlackBerry, and Nokia. PushLife ended up licensing software to major carriers.

It was so successful it was acquired by Google. After the acquisition, he was at Google for four years. First in the Canadian Google office in Waterloo. Then out in Mountain View at Google‘s headquarters.

He ended up running the mobile commerce team for one of their products. Then towards the end, Ray was actually part of the launch team for Google Shopping Express, which was their same-day delivery effort in retail.

The difference with companies like Google, according to Ray, is that they do hundreds of acquisitions a year. They really turn it into a mass production factory. It’s very organized. There are no games. They are very straight-up. From Ray‘s perspective, it doesn’t feel like anyone is trying to overly optimize a negotiation. It makes a lot of sense because the transaction is the beginning of the relationship.

Ray‘s opinion is that Google‘s M&A process is designed in a way to get a group of people that are energized and that deliver a lot of value over the upcoming years. Contrast that with some other acquisition approaches and the result is quite different.

Eventually, Ray found a big new problem to solve. He ultimately concluded that structurally, a big company wasn’t set up to solve this problem, even with all the resources a company like Google has.

Toronto vs. The Valley

Ray moved his founding team to Toronto. Not that the Valley isn’t a really interesting place. He says “On one hand, it is the capital of technology worldwide, but I think there’s also some really weird dynamics there.” The biggest one being that you’ve got a very high concentration of very wealthy people, and they’re all early adopters.

He points to the collapse of the entire on-demand space, everything from on-demand valets to cleaning services several years ago, and a massive false-positive from the Valley.

Because when you have places like Palo Alto where average household incomes are north of $2 million, you can fool yourself into thinking that there are enough people who will pay a big premium for convenience.

As Ray states, “the types of investors living in the Valley are not at all sensitive to paying a $10 delivery fee for having a $10 item brought to them.“ That doesn’t seem weird to them. When you look across average neighborhoods and cities in North America, that’s not necessarily true. You lose sight of that in the Valley. You lose sight of the average person.

Ray says “So, if you’re trying to build a mass market consumer product, you just have to be very careful of false-positives that can come from something working in the Valley“

Then the team went and looked at the reality of building talent there, and hiring, and cost, and a lot of those other things. They decided to move to Toronto instead.

Fundraising Strategy

Ray’s latest startup is Ritual which is a social ordering app that taps into networks of co-workers and colleagues for fast and easy pick-up and pay at a wide variety of local restaurants and coffee shops.

He has already raised $120 million in capital. Greylock led the Series A out of the Valley. Insight did the Series B out of New York. Georgian Partners led the C round out of Toronto.

Rather than waiting until funds are imminently needed to close a round, he says “I think about it differently which is you should always be talking to investors. Always having an ongoing conversation with investors.”

He’s always talking to the next stage of investors and trying to build that relationship. Fundraising comes down to trust, and do they trust your judgment? Do they trust that you can do what you say you’re going to do?

For Ritual, it’s never been about the investor that gives the highest valuation. It has been about who do you want to work with and who do you want to build this company with and spend time with.

He’s had a relationship with each one of those investors for about 9 to 12 months before the round. When it came time for fundraising, it was a no-brainer each time.

Today Ritual has a team of about 300 people globally.

Listen in to the full podcast episode to find out more, including:

  • The process of selling your company to Google
  • Benefits of launching in cities outside of Silicon Valley
  • Ways to build relationships with investors
  • Success factors behind marketplaces
  • Retention as the critical factor for ultimate success in business

Alejandro Cremades is a serial entrepreneur and author of best-seller The Art of Startup Fundraising, a book that offers a step-by-step guide to today‘s way of raising money for entrepreneurs.

I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley

Source: He Sold His First Business To Google And Just Raised $120 Million For His Next Startup

Which Company Could Be The Next Permian Basin Acquisition Target?

Following the news that Chevron had agreed to pay a nearly 40% premium to acquire Anadarko Petroleum, investors quickly bid up the shares of other potential acquisition targets.

As I argued in the previous article, I believe the Permian was the key to the Anadarko acquisition, but there are plenty of other targets in the region. There are also several companies with the capability of making acquisitions.

In recent years, the few mergers and acquisitions in the oil and gas industry have been largely focused on the Permian Basin. The supermajor integrated oil and gas companies have been increasingly making forays into the Permian.

In addition to Chevron’s new acquisition, in 2017 ExxonMobil paid $6.6 billion to acquire Permian acreage from the Bass family of Fort Worth, Texas. ExxonMobil also spent $41 billion in 2009 to acquire XTO, which has a major presence in the Permian.

Permian Players

Today major acreage holders in the Permian Basin include the supermajors Chevron and ExxonMobil, as well as Occidental, Apache and Concho Resources. Occidental, in fact, reportedly attempted to acquire Anadarko prior to Chevron sealing the deal. But Occidental may now find itself in the crosshairs of a bigger player looking to shore up their Permian portfolio.

But there are many other major producers in the region, including ConocoPhillips, EOG Resources, Pioneer Natural Resources, Noble Energy, Devon Energy, and Diamondback Energy. Smaller producers in the region include WPX Energy, Parsley Energy, Cimarex Energy, Callon Petroleum, Centennial Resource Development, Jagged Peak Energy and Laredo Petroleum.

Let’s first take a look at the largest companies operating in the Permian according to enterprise value. This metric is preferred over market capitalization, because it includes a company’s debt. In the case of a potential acquisition, the acquiring company would be responsible for this debt in addition to the purchase price. Hence, it is a more comprehensive representation of a company’s market value.

I have included the integrated supermajors that could have the ability to make major acquisitions, three of the larger exploration and production companies (which could make an acquisition or be a target themselves), and Anadarko for comparison. All data were retrieved from the S&P Capital IQ database.

Metrics for major oil companies operating in the Permian Basin.

Metrics for major oil companies operating in the Permian Basin.

Robert Rapier

  • EV – Enterprise value at the close on April 12, 2019 in billions of U.S. dollars
  • EBITDA – TTM earnings before interest, tax, depreciation, and amortization in billions of U.S. dollars
  • TTM – Trailing 12 months
  • FCF – Free cash flow in billions of U.S. dollars
  • Debt – Net debt at the end of the previous fiscal quarter
  • 2018 Res – Total proved oil and gas reserves in billion barrels of oil equivalent at year-end 2018
  • EV/Res – The value of the company divided by its proved reserves

Potential Buyers

Based on their size and debt metrics, ExxonMobil and Chevron still appear to be the most capable of pulling off a major deal. Shell has been moving in the direction of becoming a natural gas company, and has already made major capital expenditures in this area in recent years. Further, in 2016 they made their own major acquisition — a $70 billion deal for BG Group.  Meanwhile, Total hasn’t shown much interest in the Permian.

BP may not have an appetite for an acquisition as it continues to be weighed down by its obligations from the 2010 Deepwater Horizon oil spill. As an aside, the continued fallout from that disaster has also resulted in BP having the cheapest reserves on the books by far of any company listed in the table. Also note that the EV/Res metric for integrated supermajors isn’t directly comparable to pure oil producers like Anadarko, as the former also have midstream and refining assets.

ConocoPhillips appears to be the most attractive target for an acquisition from a pure valuation perspective, but as the largest pure oil company it would be a large bite for even ExxonMobil. With respect to making an acquisition, ConocoPhillips CEO Ryan Lance stated earlier this year that the company isn’t feeling any pressure to do so.

Occidental also falls into the category of potentially making an acquisition or of being acquired. On a relative basis, they are more expensive than ConocoPhillips, but on an absolute basis the price would be more manageable.

What about smaller players like Parsley, WPX Energy, or Cimarex Energy? Based on the price movement following the announcement of the Chevron-Anadarko deal, investors are clearly betting that more deals will follow. Below are some of the metrics of potential acquisition targets (with Anadarko for comparison), including some of the large players listed in the previous table:

Metrics for smaller oil companies operating in the Permian Basin.

Metrics for smaller oil companies operating in the Permian Basin.

Robert Rapier

  • 1-Day Change – Change in share price on April 12, 2019, the day the Chevron-Anadarko deal was announced

Note that the double-digit gains of both Pioneer Natural Resources and Parley Energy imply that investors believe they could be next on the acquisition list. Parsley looks attractively priced according to its enterprise value and total reserves. Several other companies stand out, such as Devon Energy and Cimarex, although all of these companies outspent their cash flow in 2018. An acquisition by one of the larger players could give them the efficiencies and economies of scale to rectify that.

Another name on the list that stands out is Diamondback Energy, which has long been one of my favorite Permian Basin oil companies. Diamondback has been an outstanding performer in recent years, but now looks to be the most richly valued according to several metrics following its 2018 acquisition of Energen.

The biggest challenge with the smaller players is that they may not have enough reserves to really move the profit needle for the biggest players. Laredo Petroleum’s 200+ million barrels of oil and gas reserves might not be sufficiently appealing to ExxonMobil, which had 24 billion barrels of reserves at the end of 2018. But it could be appealing to a company like EOG Resources, which closed the year with 2.8 billion barrels of reserves.

Ultimately, price and valuation are only part of the equation. Anadarko wasn’t the cheapest acquisition target for Chevron, but Chevron liked the synergies of Anadarko’s locations. Thus, every major operator in the Permian is more likely to acquire companies whose properties are adjacent to their own. A deeper dive thus becomes an exercise in not only value, but in studying maps of the Permian producers — large and small.

Robert Rapier has over 25 years of experience in the energy industry as an engineer and an investor. Follow him on Twitter @rrapier or at Investing Daily.

Robert Rapier is a chemical engineer in the energy industry. Robert has 25 years of international engineering experience in the chemicals, oil and gas, and renewable ene…

Source: Which Company Could Be The Next Permian Basin Acquisition Target?

This Ex-Googler Built What Is Now A $6 Billion Business And Raised $400 Million For His Next Company

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Many entrepreneurs seem to struggle with following what they are passionate about, versus creating startups just for the money.

Mohit Aron went with passion, co-founded a company that successfully completed an IPO with a valuation of more than $6 billion today, and has raised more than $400 million for a second venture which has already surpassed the billion dollar valuation.

After getting his Ph.D. from Rice University in Houston, Mohit made the move to the Valley. After a stint at Google where he was one of the early employees, he has gone on to create highly impactful ventures that have become a large part of the DNA of our tech today.

In a recent appearance on the DealMakers podcast, he shared his take on following your gut, when to go solo (and not), why you should sleep more, how to incubate a winning startup idea and the algorithm for hiring great leaders (listen to the full podcast episode here).

Google, Hyper-Convergence & Taking Time to Think

Mohit was one of Google’s early tech guys and received, as a result, Google shares at $2 per share. He was responsible for managing a team that had the goal of innovating in the file storage space. Selling those shares gave him financial freedom, and refusing just to stay comfortable he ventured out into building companies from the ground up himself.

Mohit takes a very different approach to cultivate startup ideas than most. Rather than jumping on the first idea, running with it and then getting an office, he has taken the time to build the architecture of those ideas and really get clarity before diving in.

For Nutanix, which became one of the early unicorns, hitting a $6 billion valuation and going public, he first rented office space just to develop and crystallize the idea.

Again, avoiding the seductiveness of getting too comfortable, he began working on his next venture, Cohesity, even before his previous company went public. There he repeated the brainstorming process before creating a new tech success, which raised $15 million in Series A funding from Sequoia in just two days.

Cohesity, a modern data management company, empowers enterprises to back up, manage, store and derive insights from their data and apps, has now raised more than $400 million, including $250 million from its latest Series D round. Investors in the company include Accel, Sequoia, Battery, Cisco Investments, Hewlett Packard Enterprise, Google Ventures, Foundation Capital, Trinity Ventures, Qualcomm Ventures, and the SoftBank Vision Fund to name a few.

The Algorithm for Hiring Great Leaders

Cohesity just celebrated hitting 1,000 employees. Mohit has found huge respect for the recruiting process and putting teams of great leaders in place.

He went into Nutanix with cofounders and then went solo on his second venture, a move he only recommends after you’ve had the experience of launching a startup with others.

Still, he admits it was a steep learning curve, especially when it came to hiring. Most notably there is a big difference in hiring technical and business staff. Today, he says if he started a new venture he would raise $1 million, and use the first $300k of that to use an executive recruiter to source three great executives.

Mohit says he learned the hard way on how to hire leaders. Now he uses a three-tiered process that starts with a comprehensive checklist. This outlines who you want from a resume perspective, the type of leader you need for this stage in your company, and the experience they should have. Maybe you want the person coming from a startup. Maybe you want a person who has done zero to $200 billion in revenue before. Then you have a list of candidates that meet your pre-interview checklist.

Then you go through an interview looking for specific things and asking specific questions. One thing you look for in an interview is that this leader is a great people-person and is a great culture fit. Once the person meets at least 80% of the checklist you have formed for the interview, then comes the post-interview checklist.

The post-interview checklist is all about references. Specifically from either people who reported to that leader or people who’ve been peers of that leader, because those are the one who tells you the truth. They will tell you any red flags.

Go with Your Gut

Mohit warns that “when you hire the wrong person, especially when that person is a wrong leader, that sets the company back at least six months if not more. The damage done is immense.”

He believes the body has a way to tell you if something bad is about to happen, and strongly recommends people listen to their gut. If everything else is pointing in one way, but your gut is saying something else, he says listen to your gut. Don’t hire the leader, and go with your gut and look for the next one. Conversely, sometimes the gut says that this is a great hire, and that’s where, as long as they’ve sort of met the checklists and there’s not a huge red flag there, then go with the gut.

Look at their enthusiasm. Look at the person’s willingness to learn. Those bets can be very rewarding.

What Do You Do With All That Wealth?

Mohit no longer does companies for money. He does it for passion. Along the way, he says it ’s also very gratifying to give back. That starts with what you’ve learned. He says “knowledge is free. Knowledge should not be for sale. So, I freely distribute to anyone who comes to me for advice on how to do companies.”

He gives lectures to share this information. The other part of giving is just financially. He’s given to charitable organizations. He and his wife have a structure set up that when they pass away, a bulk of their wealth is actually going to go into a charity.

As a company, his firm gives to a local foundation in San Jose that takes care of providing jobs to young people. He’s also given to Rice University and the Institute of Technology in Delhi which he attended.

He says “life is about giving, and I think giving brings you pleasure. Unlike what people believe, accumulation isn’t always very pleasing, but giving can be very fulfilling.”

Listen in to the full podcast episode for all the details, as well as how to contact him directly with your ideas and questions (listen to the full podcast episode here).

Alejandro Cremades is a serial entrepreneur and author of best-seller The Art of Startup Fundraising, a book that offers a step-by-step guide to today‘s way of raising money for entrepreneurs.

I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley &…

Source: This Ex-Googler Built What Is Now A $6 Billion Business And Raised $400 Million For His Next Company

How The Son Of A Hedge Fund Billionaire Plans To Cure FOMO With An App

Diesel Peltz, 25, son of hedge fund billionaire Nelson Peltz, is on a mission to cure FOMO (fear of missing out) with Twenty, an app that encourages offline interactions in the real world. Launched on Tuesday, Twenty, formerly known as InSite, seeks to relieve users sense of FOMO by alerting them to the location of their friends, who have to varying degrees disclosed their location, in hopes that offline plans to meet up, or “Hangouts” can be set.

“Our service is fundamentally about what you can share in the analog world,” Peltz told Forbes. “We tell people when they sign up to only add the people you actually want to hang out with in real life.”

For now, the company and its flagship app, have no way to monetize its services.

“The one KPI that we’ve optimized for is the number of real-life experiences,” Peltz said. In the last month, the number of IRL experiences initiated on Twenty has risen to 25,000, “over half” of users signed up in the past month continue to use the platform one month out.

Serial entrepreneur and co-founder Mark French adds that the value proposition for partnering and investing companies like Live Nation, Roc Nation, and talent agency Endeavor (formerly WME/IMG) is that the app will drive transactions, which Twenty hopes to monetize through purchases on the platform within six months.

By taking interaction offline and into the real world, Peltz and French hope to move users away from, “overutilization of social media”.

Elements of the social networking app may feel familiar, the location updates of Foursquare, friends and sharing aspects of Facebook, Instagram, and one could argue the immediacy of Twitter, but Peltz and backers of the project including Khaled Mohamed Khaled, more popularly known as DJ Khaled, argue that this is something different.

“I told my team two years ago, tech that helps people spend time together in real life is going to be the next big thing,” Khaled said in a company-issued statement.

It is ironic and perhaps unlikely that a solution to the endless scroll of social media would come via yet another mobile app, but those backing the product believe it can be a solution.

Arianna Huffington, co-founder of Thrive Global, a health and wellness startup and Huffington Post editor-in-chief along with former model and Casamigos Tequila founder Rande Gerber will join the board at Twenty once it is formed.

In the four years since Peltz dropped out of NYU and founded the company, he has taken his time to bring the company’s first product to market beta testing the app on college campuses including the University of Florida, the University of Wisconsin and Tulane University. Neither founder has felt the pressure to monetize.

Help from dad may have relieved the pressure.

The company completed two undisclosed funding rounds, the first led by Nelson Peltz, and market manager Ron Conway and his seed fund SV Angel. Dad still seems to be lending a hand in the last round of funding which added restaurant developer Tao Group, which is owned by Madison Square Garden, where Nelson Peltz is a board member. Nelson Peltz’ net worth stands at $1.6 billion, the investor started his career in food distribution and founded Trian Fund Management in 2005, which currently has $11 billion AUM.

Peltz says that the app doesn’t solve for users looking to experience JOMO (the joy of missing out) and acknowledges that the market is saturated with tools to share what you’ve already done.

“You construct your friend network for specific purposes, most people have a bloated network of people they don’t actually interact with,” said Peltz. Barring being ghosted, Peltz recommends only adding friend’s whose company you enjoy.

I serve as assistant editor for Forbes Innovation, covering cybersecurity and venture capital. I have covered politics at POLITICO, entertainment for Time Out New York,

Source: How The Son Of A Hedge Fund Billionaire Plans To Cure FOMO With An App

Meet The Billionaire Who Defied Amazon And Built Wish, The World’s Most-Downloaded E-Commerce App

On a sun-filled San Francisco afternoon, Peter Szulczewski is climbing the stairs to the top of a Sansome Street skyscraper, past floors filled with Wish data scientists and engineers, pool tables and DJ equipment. Large windows give way to a stunning view of the city. But most of Szulczewski’s customers don’t work in offices like this or live in Northern California coastal enclaves. In fact, most of them don’t have much money at all. Wish’s customers are typically working-class Americans from places like the Florida Panhandle or East Texas, Dollar Store shoppers who find Amazon Prime’s $120 annual membership too rich for their blood……..

Source: Meet The Billionaire Who Defied Amazon And Built Wish, The World’s Most-Downloaded E-Commerce App

Meet the Woman Who’s Boosting Arizona’s Mom-and-Pop Business Culture

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Kimber Lanning stands at just 5 feet 1 inch. But in the Arizona economic landscape where she acts as a fierce advocate for local economies, she is a giant.

In 2003, Lanning started Local First Arizona. She was the only employee, and didn’t take any salary. Now, with 3,200 members, it is the largest coalition of local businesses in the country. The coalition’s staff of 24 manages programs ranging from an annual local business fall festival to the state’s first directory of locally grown food to a program in Spanish for micro-entrepreneurs.

“I saw how unfair the competition is for local businesses.”

Lanning is widely recognized for her work. Even though she finds traditional economic development planners to be frequent adversaries, in 2014 the International Economic Development Council awarded her a Citizen Leader of the Year Award. She considers that a turning point in planners’ recognition of the value of local businesses. Arizona Business Magazine named her one of the 50 most influential women in Arizona, and the American Planning Association named her Distinguished Citizen Planner for her work on the reuse of old buildings.

In November, at a conference of the nonprofit Business Alliance for Local Living Economies, for which Lanning is an incoming co-chair, Lanning told me of the sources of her passion for local business.

Fran Korten: Kimber, what propelled you to start Local First Arizona?

Kimber Lanning: I was angry. I wanted to expose the horrible subsidies being given to big corporate chains. I own a record store that I started when I was 19. And I saw how unfair the competition is for local businesses. For example, in Glendale, Cabela’s got a $68 million subsidy. Bass Pro got $32 million. And I began to see the fallout. You’d read that Bass Pro is to create 160 jobs. Yet, I’m going over to Lorada’s Army Surplus and they’re closing. They say the city just took the income tax, the property tax, the sales tax that they’ve been paying for the 30 years and incentivized the competition to put them out of business. So I wanted to level the playing field for locally owned businesses.

I also wanted to strengthen people’s connection to place. In Arizona, a lot of people have moved here from Chicago. They are always talking about how great Chicago is. So I asked people why they love Chicago. They would say, “In my old neighborhood, I knew all the store owners.” One guy said, “I had the same barber for 40 years, and I come out here to Phoenix and all you guys have is Supercuts.” And I said, “This is so unfair. You give me 20 minutes and I’ll find you 20 barbers.” And he said “Really? Where?”

So I realized I’ve got to introduce these people to my world and the rich culture we have amongst the locally owned businesses. In Phoenix I put together a fall festival where I had all these businesses in one place. We are so geographically spread out that you never see them in one place. Put them all together and people started to go, “Wow. There is some cool stuff going on right here.”

“Don’t support mom-and-pop because mom and pop need you—support them because you want your children to have a job.”

Korten: You make the connection between buying local and having a thriving local culture and economy. Do you think other people see that?

Lanning: Generally they don’t. One of my mentors, Eddie Basha, told me this story. He owned a group of local grocery stores. The husband of a couple who were long-time customers died. Eddie called the widow and offered to provide all the food for the service. She was incredibly grateful. But he also told her, “I can’t bring the drinks.” And she said, “Oh, don’t worry, I’ll pick up the drinks at Costco.” When I tell that story, people in the audience gasp because they’ve done exactly that. We’re so disconnected from how the economy works that we believe we can put money into these big corporate entities and our friends who donate food when your husband passes away will survive and be there for you. And I’m here to tell you that they won’t.

Korten: After the Trump election, a lot of people are paying more attention to jobs in rural areas. You’re based in Phoenix. How does Local First Arizona work in rural areas?

Lanning: Rural towns have massive economic leakage. Amazon is the biggest threat facing rural America. People in rural communities tend to either buy online or travel to Tucson or Phoenix to spend their money. They don’t connect that to the fact that the town can no longer balance the budget because they don’t have sales tax revenue coming in and the storefronts are boarded up. You know, the jobs they lose aren’t just baristas. It’s the graphic designer, the payroll service provider, the accountant. Those jobs go away when you lose local businesses. I always tell people, don’t support mom-and-pop because mom and pop need you—support them because you want your children to have a job.

At Local First Arizona we make sure that these local businesses have the tools and resources they need to compete. One program we do is Mythbusters. People in rural areas will tell you, “I can’t buy this here.” So we reintroduce them to their town, showing what they can buy locally. And we dispel the myths about how expensive it is. I had a guy just barely hanging on, selling appliances in the town of Ajo. Everybody said he’s too expensive. They go buy in Tucson, which is two hours away. So I compared his prices with those in Tucson. Sure enough he was more expensive. But I factored in my gas to get to Tucson and back and the fact that, say, for a washing machine, I’d have to get a trailer to bring it home. And I’d have to pay somebody to haul away my old one, whereas he would do that for free. You stack those up and he was actually cheaper. After our Mythbusters program, his business is up significantly.

Korten: Arizona has a lot of Latinos. How do you reach them with your programs?

Lanning: Our Fuerza Local program is a six-month business accelerator program taught in Spanish. We help Latino micro-entrepreneurs strengthen their businesses.

Korten: What’s an example of a business you have helped with that program?

Lanning: We have many remarkable examples. We had a wedding cake baker whose business was all word of mouth. She had no marketing and no formal contracts. She had been sold three kinds of insurance that she didn’t need and was paying 48 percent interest on her loans. She had no health permit, no business permit. She was just a great baker. People would ask her to bake their wedding cake. She would quote, say, $500. But she’d go to deliver the cake and they would say, “We’re sorry. We only have $275.” So she would leave the cake and just feel sad.

After graduating from our Fuerza Local program, she enrolled in a credit union where she got a 6 percent interest loan and paid off all of her bad loans. We got her the right kind of insurance. GoDaddy donated a website. We got her up on Facebook and helped her develop contracts. I remember her face when I explained that she needed to ask for 50 percent down when a customer placed the order. She said, “I can’t do that.” I said, “Don’t bake a thing until you’ve got 50 percent in your hands.” Now, three and a half years later, she’s in a commercial kitchen. She has six full-time employees and she has a contract with Bashas’, the biggest locally owned grocery store.

“Both the millennials and the baby boomers are speaking loudly with their wallets.”

Korten: Does anyone oppose your work in building up local businesses?

Lanning: Absolutely. One group is the traditional economic developers. Their whole mission is creating jobs by giving away massive corporate subsidies. Just like everybody’s jockeying for Amazon right now.

But that’s changing. In 2014 the International Economic Development Council awarded me a Citizen Leader of the Year Award. That was an acknowledgement that local economy work is important. Now they’re bringing in more people at their conference who are talking about a new way of doing economic development.

Korten: Who are your biggest supporters?

Lanning: Local businesses, of course. Moms who care about healthy food and the future for their children. Young people who want to make change in the world. They are jumping in with both feet because they don’t like the way the corporations are treating the world. But they exempt Amazon from their concern with big corporations because they like the convenience.

Both the millennials and the baby boomers are speaking loudly with their wallets. Generally they want to place relationships first. They also want a unique experience. They may not be thinking about voting with their dollars, but you look at a comparison of craft beer versus Budweiser sales and you will see that people are voting for something unique. So when you ask who is with us, it’s the people who are choosing relationships.

I believe the American public is being divided into two camps—one that prioritizes convenience, the other that prioritizes relationships. The latter is something the media never anticipated. They were beating the death drum for local independent businesses. But local businesses are climbing back. More record stores opened in the last two years than opened in the 20 years before that; more bookstores have opened; more independent coffee shops have opened than Starbucks branches.

“People can see that the dominant system is failing them and their families.”

Korten: Do you feel that local businesses advance sustainability and justice?

Lanning: I think local business owners inherently care more about the community than a nonlocal corporation that’s answering to shareholders who don’t live in the community. They’re more likely to care about long-term sustainability because it impacts their children.

Sometimes sustainability and justice are baked right into the programs that support local businesses. Take our program to repurpose old buildings. There’s nothing greener than keeping an old building rather than tearing it down and building a new one. There’s a study called “Older, Smaller Better,” which demonstrates that communities that preserve their older building stock have more jobs per block. They support more businesses owned by people of color. They provide a unique sense of place. They are vital incubator spaces for small businesses. People say we want more entrepreneurs, but then they mow down the older buildings and put in big ones where there’s no place for entrepreneurs. With the cities of Phoenix and Tucson, we’ve streamlined the process for a new business to open in an older building. Phoenix has the most progressive adaptive reuse program in the country. We have about 85 new businesses right in our city center to show for it.

Korten: How did you get the city to keep the old buildings?

Lanning: I just said if we don’t protect our older buildings that usher in entrepreneurs and create a unique sense of place, we’re not going to be competitive. That word “competitive” makes my conservative audiences sit up and listen.

One issue we had to deal with in order to keep the old buildings was the requirement that stores have ADA accessible bathrooms. If you put bathrooms in each of these small stores, it would take up a third of the floor space. I said why can’t we do a district bathroom so the building owner only has to put in one set? I got the attorneys who defend the Americans with Disabilities Act to come to the city council and agree on that solution. With this change and other new policies, we’ve saved countless buildings and made it easier for lots of new businesses to get their doors open.

Korten: You have a passion for local businesses. Do you think it’s possible to reach new audiences with this perspective?

Lanning: Yes. People can see that the dominant system is failing them and their families. And it’s failing the Earth. They’re looking for something that they can really put their shoulder behind.

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