"You are never strong enough that you don't need help."
- Cesar Chavez
Thursday, March 31, 2011
Tuesday, March 29, 2011
Quote of the Week
"There are two mistakes one can make along the road to truth…not going all the way, and not starting."
- Buddha
- Buddha
Friday, March 25, 2011
Dot-Com 2.0 Bubble? VC truths
It's a measure of Venture capital flows
Re-post of Ben Horowitz
A basic driver for a private technology market bubble is the over-supply of venture capital into the sector. If too much venture capital hits the streets, valuations will bubble up. The inflation-adjusted data from the last bubble tells the story:
In the 3-year period from 1998-2000, venture capital firms raised more than $200 billion, which represented about 0.55% of the national GDP. To put that in perspective, that’s more money than the entire venture industry raised collectively over the prior 18 years.
Flush with lots of capital, venture capital firms naturally invested at historically high rates—from 1998-2000 alone, venture capital investments also topped $200 billion. Again, more dollars were invested in this single 3-year period than in total over the prior 18 years.
Now let’s take a look at the current version of the same inflation-adjusted data:
Total venture capital raised from 2008-2010 was just shy of $55 billion, about 0.12% of the national GDP, with the trajectory of capital raising declining in each year. In fact, 2010 venture capital fundraising is at the same level as it was in 1995 and 1996.
Approximately $90 billion has been invested by the venture capital industry from 2008-2010—less than half of the 1998-2000 level. More significantly, total capital invested should continue to remain constrained in light of the significant reduction in new venture capital dollars raised over the last 3 years. Keep in mind that because the life of a venture capital fund is generally 10 years, it takes a while to see the impact of lesser fundraising on total dollars invested.
The inflows don’t actually look that bubblicious.
Read more
Be Well, Do good.
BG
Re-post of Ben Horowitz
A basic driver for a private technology market bubble is the over-supply of venture capital into the sector. If too much venture capital hits the streets, valuations will bubble up. The inflation-adjusted data from the last bubble tells the story:
In the 3-year period from 1998-2000, venture capital firms raised more than $200 billion, which represented about 0.55% of the national GDP. To put that in perspective, that’s more money than the entire venture industry raised collectively over the prior 18 years.
Flush with lots of capital, venture capital firms naturally invested at historically high rates—from 1998-2000 alone, venture capital investments also topped $200 billion. Again, more dollars were invested in this single 3-year period than in total over the prior 18 years.
Now let’s take a look at the current version of the same inflation-adjusted data:
Total venture capital raised from 2008-2010 was just shy of $55 billion, about 0.12% of the national GDP, with the trajectory of capital raising declining in each year. In fact, 2010 venture capital fundraising is at the same level as it was in 1995 and 1996.
Approximately $90 billion has been invested by the venture capital industry from 2008-2010—less than half of the 1998-2000 level. More significantly, total capital invested should continue to remain constrained in light of the significant reduction in new venture capital dollars raised over the last 3 years. Keep in mind that because the life of a venture capital fund is generally 10 years, it takes a while to see the impact of lesser fundraising on total dollars invested.
The inflows don’t actually look that bubblicious.
Read more
Be Well, Do good.
BG
Quote for the Weekend
We should regret our mistakes and learn from them, but never carry them forward into the future with us."
- Lucy Maud Montgomery, Canadian author
- Lucy Maud Montgomery, Canadian author
Wednesday, March 23, 2011
Historically Hardcore
Historically Hardcore: These made me laugh so much that I had to share.
Created by artist Jenny Burrows and copywriter Matt Kappler during school for their portfolios, these fake ads for a famous museum are spot on awesome. And well done. Unfortunately, that major museum was not a fan. Jenny had to change the text at the bottom to read “Museums” and change the logo. You can read all about that here.
Tuesday, March 22, 2011
Should You Hire an Overqualified Candidate?
via HBR's Should You Hire an Overqualified Candidate?: "
Do:
John had most recently worked for a venture capital fund that was forced to lay people off because of the economy. Prior to that, he had spent over ten years in the defense industry in a variety of senior design and management roles. 'I didn't have a background in social enterprise or non-profit. I didn't know anything about 501(c)(3)s,' he says. But he did have deep experience in running, buying, and selling companies.
This was not an unusual situation for Echoing Green. 'We get a lot of resumes from people who want to do a sector switch,' Lara explains. They have a lot of work experience but not necessarily a lot of experience in the sector.' She had previously ruled out candidates who were overqualified for certain positions or who didn't bring enough relevant experience.
Lara and her team talk about the risks and the opportunities of hiring each candidate. They knew that there were risks with John because he had never worked in the sector. But they saw many upsides too. 'We didn't have anyone on staff with private equity experience and yet we work in that space. We knew we could use a for-profit lens,' explains Lara.
As politicians and economists puzzle over America's jobless recovery, managers who have started to hire again face another problem: how to handle all the overqualified candidates coming through their doors. The prevailing wisdom is to avoid such applicants. But the unprecedented availability of top talent created by this recession and new research on the success of these candidates may be changing that.
What the Experts SayRecruiters have traditionally hesitated to place overqualified candidates because of several presumed risks, says Berrin Erdogan, a professor of management at Portland State University and the lead author of a recent study on the subject. 'The assumption is that the person will be bored and not motivated, so they will underperform or leave.' However, her research shows that these risks may be more perceived than real. In fact, sales associates in her study who were thought to be overqualified actually performed better. And rarely do people move on simply because they feel they're too talented for the job. 'People don't stay or leave a company because of their skills. They stay or leave because of working conditions' she says.
Claudio Fernández-Aráoz, a senior adviser at Egon Zehnder International and the author of Great People Decisions and 'The Definitive Guide to Recruiting in Good Times and Bad,' agrees that there are more benefits to hiring an overqualified employee than there are risks.'When making hiring decisions, visionary leaders don't just focus on the current needs, but on the future,' he says.
Here are several things to consider next time you are looking at a stack of overly impressive resumes.
Overqualified or over-experienced?
Don't assume someone is overqualified based on a quick screen of their credentials. 'There is a lot of misunderstanding over what overqualified is,' says Ergodan. 'We define it as meeting and exceeding the skill requirements of the job. So having a lot of education doesn't over-qualify you.' Nor does experience, if the person's prior positions are not directly related to the job in question. Get to know the candidate before you decide to pass. There may be reasons why he is interested in this specific position. He may want to shift industries, move to a new location, or achieve greater work/life balance. And there may be ways that you can make use of his 'extra' experience.
Think bigger than the job in question
When considering a candidate who is, in fact, overqualified for the job opening, ask yourself if there is room to expand the role and make use of the skills he brings. 'While the old paradigm for hiring was to determine that a job was vacant and look for the right candidate, in today's world one should also consider the talent opportunities at hand, and try to find the jobs that may be created or open in the near future for them, in the larger organization,' says Fernández-Aráoz.
'Hiring overqualified candidates can help you achieve much higher productivity, grow, and achieve opportunities that you may not even be thinking about pursuing right now.' There are other less obvious benefits too: these employees can mentor others, challenge peers to exceed current expectations, and bring in areas of expertise that are not represented at the company.
Bring them on carefully
'Effective onboarding is essential, especially for the overqualified,' says Erdogan. 'Unmet expectations are one of the more common reasons for turnover,' so you should be clear with yourself, the new hire, and the rest of the organization about what the job entails, as well as what it could become. Adds Fernández-Aráoz: 'You need a clear and explicit plan for the future, whether you are thinking of a promotion, a lateral move, or a new project altogether. You need to think and discuss beyond the initial stage where he or she may be temporarily underutilized.'
Both he and Erdogan caution that recruiters need to manage an additional risk: a boss who feels threatened. 'Managers often worry, 'Can I supervise the person effectively?'' says Erdogan. A superior with less experience than the new hire might be concerned that the person will take her job, make her look bad, or be too challenging to manage. This is not reason enough to say no. Instead, focus on the future for that candidate. In cases where the boss is insecure, 'you should not bring that new hire in without a plan to promote him in the near term,' says Fernández-Aráoz.
Pay what they are worth
Although it's tempting in a bad job market to buy top talent on the cheap, Fernández-Aráoz disapproves of the strategy. 'While my experience shows that you can get candidates for up to 25% less in the middle of a big recession, I would not recommend underpaying an overqualified candidate,' he says. 'We all have the expectation to be rewarded in a way which is reasonably proportional to our effort and contribution, and fair.' And if the candidate is as strong as you think, you are likely competing with other employers for her. If you can't afford her, Fernández-Aráoz says it's better to pass than to underpay. If she wants the job anyway, simply have a frank conversation about her future prospects in terms of promotion and compensation so that she fully understands what she's getting into.
Do:
- Think broadly about your organization and its overall talent needs now and in the future
- Consider how you could accommodate a promising candidate's skill set by shaping the job
- Onboard carefully and be clear about your plans for the new employee
Don't:
- Narrowly define the hiring process as finding one person for one role
- Confuse education and experience with skills; a candidate with lots of experience still may not have the capabilities to do the job
- Try to pay an overqualified candidate less than he's worth
Case Study: The hiring risk pays off
In 2009 Lara Galinsky, senior vice president at Echoing Green, needed to hire a finance director for the young, but growing, global non-profit. She thought the ideal applicant would be someone relatively young but with a few years of non-profit finance experience. She was not expecting a candidate like John Walker.
John had most recently worked for a venture capital fund that was forced to lay people off because of the economy. Prior to that, he had spent over ten years in the defense industry in a variety of senior design and management roles. 'I didn't have a background in social enterprise or non-profit. I didn't know anything about 501(c)(3)s,' he says. But he did have deep experience in running, buying, and selling companies.
This was not an unusual situation for Echoing Green. 'We get a lot of resumes from people who want to do a sector switch,' Lara explains. They have a lot of work experience but not necessarily a lot of experience in the sector.' She had previously ruled out candidates who were overqualified for certain positions or who didn't bring enough relevant experience.
But John had been referred by a friend of the organization, and since Echoing Green straddles the world of for-profit business and non-profit organizations, she thought his experience might be applicable.
Lara and her team talk about the risks and the opportunities of hiring each candidate. They knew that there were risks with John because he had never worked in the sector. But they saw many upsides too. 'We didn't have anyone on staff with private equity experience and yet we work in that space. We knew we could use a for-profit lens,' explains Lara.
In the end, Lara thought the benefits outweighed the risks. They had been impressed with John's willingness to learn what he didn't know. 'Hunger and potential are the most important factors we look for in candidates,' she explains. 'We hire for talent, not necessarily for acumen. I look for people who can grow, mesh, and evolve.'
John came on board in early 2009. Lara encouraged and incented him to network with finance directors from other organizations, so that he could gain insight from experts in the field. The learning curve was steep but he was able to come up to speed quickly and is now thriving in the position. As Echoing Green moves into impact investing they have also been able to tap directly into his previous VC experience. While John wasn't the person Lara initially envisioned hiring, she hadn't imagined what someone like him could do in the position. "We have evolved with him — and used his skills in ways we didn't anticipate."
Be well, Do good.
BG
30 Things We Need — and 30 We Don't
30 Things We Need — and 30 We Don't: "
Do you have the feeling, as I do, that in the tsunami of everyday life, we're getting too much of stuff we don't need, and not enough of what we do? Herewith my first set of suggestions about how to redress the imbalance:
Be well, do good.
Do you have the feeling, as I do, that in the tsunami of everyday life, we're getting too much of stuff we don't need, and not enough of what we do? Herewith my first set of suggestions about how to redress the imbalance:
| WE NEED LESS: | WE NEED MORE: |
| Information | Wisdom |
| Shallow billionaires | Passionate teachers |
| Self-promotion | Self-awareness |
| Multitasking | Control of our attention |
| Inequality | Fairness |
| Sugar | Lean protein |
| Action | Reflection |
| Super sizes | Smaller portions |
| Private jets | High-speed trains |
| Calculation | Passion |
| Experts | Learners |
| Blaming | Taking responsibility |
| Judgment | Discernment |
| Texting | Reading |
| Anger | Empathy |
| Output | Depth |
| Constructive criticism | Thank-you notes |
| Possessions | Meaning |
| Righteousness | Doing the right thing |
| Answers | Curiosity |
| Long hours | Longer sleep |
| Complaining | Gratitude |
| Sitting | Moving |
| Selling | Authenticity |
| Cynicism | Realistic optimism |
| Self-indulgence | Self-control |
| Speed | Renewal |
| Emails | Conversations |
| Winning | Win-win |
| Immediate gratification | Sacrifice |
Be well, do good.
BG
Quote of the Week
Moral responsibility is not just a matter of avoiding harm to others; it also means helping people in need."
- Michael Nedelsky, American educator
- Michael Nedelsky, American educator
Monday, March 21, 2011
Surround Yourself with Passionate People
Surround Yourself with Passionate People: "
Post written by Leo Babauta.
Last night I had an amazing dinner with my wife Eva and my friends Scott and Jesse and their wives Chelsea and Joanna.
The gathering itself was simple: six people, simple healthy food, a little wine, a little tea, nothing else. Except that we lost ourselves in conversation so deeply that before we knew it, it was 1:30 a.m. and I was shocked at how quickly the time had passed.
The secret is also simple: when you talk with people who are passionate about what they’re doing, passionate about life and the people they love, it is transformative.
The people I talked with last night are incredibly passionate about what they’re doing. And yes, Brett, I mean passionate: excited, fired-up, feeling-strongly-about, thinking-about-it-all-the-time, can’t-wait-to-do-it-when-you-wake-up passion. When you talk with people who are passionate like that, you can’t help but get fired up yourself. You want to go out and do something exciting.
Passionate people not only inspire you, they give you ideas. They read books by other people who are passionate and full of ideas, and they recommend the books to you or pass the ideas on to you. Scott and Jesse, for example, are constantly meeting other passionate people, and that inspires them … and in turn that inspires me. It’s fuel for an intense fire.
A nice side benefit is Scott & Chelsea and Jesse & Joanna are some of the most health-conscious people I know — the dinner was extremely healthy and delicious, and I went away even more inspired to get fit and live a healthy life. I love people like that.
I’ve met a lot of passionate, smart, inspired people since moving to San Francisco — people like Tim Ferriss and Matt Mullenweg and Tynan and Corbett Barr and Oleg and Barron and more. It’s incredible to talk with people like that, and you can’t walk away from them without getting a bit revved up.
While I try to lead a life of minimalism, I’ve learned that minimalism can be done anywhere you go … and it doesn’t require that you move to a farm or give up your contact with people. Just the opposite: minimalism is about giving up consumption in favor of doing things you’re passionate about and having real relationships with a few people you really value. I’d much rather have a conversation with someone doing something amazing than go shopping.
You don’t have to live in a big city like New York or San Francisco to surround yourself with passionate people. They’re in small towns, but it might take a bit of looking to find them. Find small businesses who are doing amazing things, and talk with the people there. Look for startups, for artists and writers, for people who are obsessed with doing something really well.
If you can’t find them where you live, find them online. They’re everywhere if you look. Read books by people full of powerful ideas who are doing innovative things. Read their blogs, talk to them via email and Twitter. Start collaborating with people like that.
Be one of them, and inspire others.
—
Bravo.
Be well, Do good.
BG
Sunday, March 20, 2011
Thursday, March 17, 2011
Honoring the Irish
Honoring the Irish today. My favorite Irish-American public figure is and always has been JFK.
Be well. Do good.
BG
Monday, March 14, 2011
Thursday, March 10, 2011
Quote of the Week
“Why must we proclaim so loudly and with such intensity what we are, what we want, and what we do not want?”
- Nietzsche
- Nietzsche
3/14 is my 3 Year Anniversary of Finishing Chemo
Party like a rock star this week.
Be well. Do good.
BG
Fashion?
 |
| Via The Sartorialist |
Be well. Do good.
BG
Monday, March 7, 2011
Quote of the Week
"Ignorance more frequently begets confidence than does knowledge."
- Charles Darwin
- Charles Darwin
Tuesday, March 1, 2011
Aqui en Buenos Aires, Argentina
My first day in BA was rather incredible. I arrived only really knowing Argentina from books and online references.
Context: Most of the immigrants who populated Argentina were Italian and German, and when the city was being engineered Paris was further establishing itself as the gem of Europe.
Going through customs, I was able first-hand to witness the commentary of these writings. The complexion, body-type and personal style of all the people is very much Italian, but the words coming out of their mouths is a bohemian Spanish that is neither Castillano nor the Latin Spanish with which I am familiar. The soft "zchjey" on double-els and y's (LL=Y) is odd to hear at first, but over time I have adjusted my own pronunciation.
After settling in the hotel and knocking back work for a few hours, I took shower and went into the city on this warm, breezy summer day. With the temperatures reaching the high 70s, I knew I had to have a plan. Equipped with turn by turn directions from hand-copied directions from my book (I mean, I don't want to look like a tourist!), I walked the streets.
Not once was I approached in English, whereas the German, English and other American tourists were bombarded with "Hello Miss, can I interest you in...?". I just got the "Por favor, Senor, dame un beso." Well, it could have been Peso too, but she was pretty. Arriving at my destination, I had 3 empanadas, which are small meat turnovers that are baked, unlike their fried Hispanic-American cousins in the US.
On the walk back, I took notes of shopping patterns and IT usage (for work), before getting into political conversations over coffee at the corner cafe. Satisfied with the day, food and ability to discuss Cristina Kirchner's probable re-election, I returned to the hotel and knocked out more work until about 11.
Curious to see how late the portenos (name of the locals) eat, I did another walk-about knowing that room service is 24/7. I found a decent parrilo (steakhouse with wood-fired grills) and had the skirt steak and a caprese salad. Fat and happy, I plopped back into the breezy summer evening and walked along the water, one eye on the local architecture and the other on the portenos walking by. Looks like I will be sleeping well tonight!
Abrazos y besitos,
Be Well, Do Good
BG
"The people look Italian, speak Spanish, and live in a city modeled after the French."
Context: Most of the immigrants who populated Argentina were Italian and German, and when the city was being engineered Paris was further establishing itself as the gem of Europe.
Going through customs, I was able first-hand to witness the commentary of these writings. The complexion, body-type and personal style of all the people is very much Italian, but the words coming out of their mouths is a bohemian Spanish that is neither Castillano nor the Latin Spanish with which I am familiar. The soft "zchjey" on double-els and y's (LL=Y) is odd to hear at first, but over time I have adjusted my own pronunciation.
After settling in the hotel and knocking back work for a few hours, I took shower and went into the city on this warm, breezy summer day. With the temperatures reaching the high 70s, I knew I had to have a plan. Equipped with turn by turn directions from hand-copied directions from my book (I mean, I don't want to look like a tourist!), I walked the streets.
Not once was I approached in English, whereas the German, English and other American tourists were bombarded with "Hello Miss, can I interest you in...?". I just got the "Por favor, Senor, dame un beso." Well, it could have been Peso too, but she was pretty. Arriving at my destination, I had 3 empanadas, which are small meat turnovers that are baked, unlike their fried Hispanic-American cousins in the US. On the walk back, I took notes of shopping patterns and IT usage (for work), before getting into political conversations over coffee at the corner cafe. Satisfied with the day, food and ability to discuss Cristina Kirchner's probable re-election, I returned to the hotel and knocked out more work until about 11.
Curious to see how late the portenos (name of the locals) eat, I did another walk-about knowing that room service is 24/7. I found a decent parrilo (steakhouse with wood-fired grills) and had the skirt steak and a caprese salad. Fat and happy, I plopped back into the breezy summer evening and walked along the water, one eye on the local architecture and the other on the portenos walking by. Looks like I will be sleeping well tonight!
Abrazos y besitos,
Be Well, Do Good
BG
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