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February 26, 2009
September 29, 2008
March 21, 2008
Recommended: A new Venture Hacks feature
We just launched Recommended, a new feature on Venture Hacks.
It’s like match.com for investors and entrepreneurs. Here’s the summary from the launch post:
The most common question we hear from entrepreneurs is, “Can you introduce me to investors?” Yes we can. We’re going to recommend startups on Venture Hacks. Investors are invited to subscribe to our recommendations. And everyone is welcome to recommend startups here. Request an invite if you want to help test the Recommended feature before we open it up—it’s also open for browsing in the meantime.
February 27, 2008
Warren Buffett on Taxes
“Relative to GDP, government taxation is 18.5% and spending is 20%, so we borrow the balance. The national debt should not be a scary topic and the fact that it’s gone up is fine as long as it’s proportional to GDP. Where do we get that 18.5%? There’s 2.7 trillion in government revenues. 2.2 trillion comes from individuals, and less than 1% of that comes from the estate tax. 1.1 trillion comes from income taxes, with payroll taxes consisting of 900 billion, but it’s capped at the first $100,000 of salary. We want a tax system that encourages greater prosperity, but it needs to take care of the family.
“We did an informal office survey by looking at the total tax footprint versus the total income. I earned 46 million and paid a tax rate of 17.5%. My rate was the lowest, the average was 33%, and my cleaning lady paid 40%. The system is tilted towards the rich. The Forbes 400 total net worth has gone from 220 billion to 1.54 trillion, an increase of 7-to-1. You see in legislature that there is lobbying carried on by the powerful over issues such as the estate tax and carried interest for private equity investments. We need to flatten income and payroll taxes, and those making under $30,000 shouldn’t be bothered.
“… the best way to stimulate the economy is to give money to the poor. They will spend it.”
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February 26, 2008
Subscribe to my FriendFeed
This blog isn’t going away but, these days, I’m doing most of my publishing on these sites:
You can subscribe to all of these feeds at once by subscribing to my FriendFeed.
December 25, 2007
The Latest from Venture Hacks
Naval Ravikant and I write a blog called Venture Hacks: an entrepreneur’s guide to hacking venture capital. Here are some excerpts from our latest articles:
Should I pay my investor’s legal fees?:
A deal is only as good as its best alternative. Keep improving your alternatives until you have a signed term sheet. And keep developing your current offers or they will die. Finally, don’t say “shopping around”, it puts investors off their stroke.
Smart money is money plus the promise of help that’s worth paying for, dumb money is money plus hidden harm, and mostly money is mostly money. Weed out the dumb money with diligence. Evaluate supposedly smart money with the smart money test. Finally, assume your investors are mostly money: unbundle money and value-add to get money on the best terms possible and value-add on the best terms possible.
Read more on Venture Hacks.
December 22, 2007
You can't be normal
From Jeffrey Pfeffer’s book, The Human Equation:
“You can’t be normal and expect abnormal returns.”
You can find more amazing aphorisms on my Twitter profile.
November 23, 2007
All Your Things in One Place
I’ve been using FriendFeed to pull together everything I contribute to the Web via Venture Hacks, del.icio.us, Twitter, YouTube, digg, last.fm, LinkedIn, Yelp, et cetera!
FriendFeed doesn’t have a compelling value proposition for me (yet). But it’s fun to visit it at the end of the day and see all the stuff that I’ve added to the read/write Web.
I can’t imagine anyone other than me would want to see that information presented in that way. But I like seeing it.
Maybe they’re planning to put a “Facebook skin” on the data and build a “distributed Facebook”. Whatever that is.
October 30, 2007
Songbird 0.3 Has Landed
Songbird is the Firefox of media players. And Mosaic. And Netscape. And a bag of potato chips.
Imagine iTunes with the Web inside. Imagine iTunes sync’ing to every device in the musiverse. Imagine all the people.
iTunes is great but, to quote Trent Reznor,
“iTunes kind of feels like Sam Goody to me. I don’t feel cool when I go there. I’m tired of seeing John Mayer’s face pop up. I feel like I’m being hustled when I visit there, and I don’t think their product is that great. DRM, low bit rate, etc. Amazon has potential, but none of them get around the issue of pre-release leaks.”
Songbird 0.3 is mostly for developers but I’m already using it to discover and subscribe to badass new music like Knob Tweakers. It is stable and the inevitable bugs at this stage of development are innocuous.
P.S. Songbird has tabs. Tight:
October 25, 2007
Ken Hess's Checklist for Building a Company
There’s a lot of wisdom in Ken Hess’s Remarks to Software Forum Dinner Meeting (from 1997!):
Ken’s Checklist for Building a Company
This checklist is about getting the odds in your favor. Fitting together all these pieces of the puzzle is what separates a good business plan from mere speculation.
1. Are you focused on creating the product?
2. Are you the world expert in your product niche?
…
4. Do you have the force of will to make things happen regardless of the inevitable obstacles?
…
6. Are you spending money wisely?
Then once you’ve shipped, continue to ask:
7. Will today’s task contribute to or diminish the organization’s focus?
8. How can I broaden the market?
9. Is the company’s scale appropriate to the task?
10. Is it time to sell?
Another snippet from the talk:
Spend Money Wisely
Profit. A bootstrap must have a positive cash flow (by definition), even though this is much less important to someone purchasing the company than sales growth.
“Just say NO” to things that aren’t profitable — and be happy
…
Develop products that will be profitable. A give away, market share strategy is inappropriate for a bootstrap.
…
Play on being small, “We don’t have a budget for that…”
…
Many people inside and outside the company want to spend YOUR money because of what it does for THEM. You must ask what spending the money does for YOU.”
Read the rest of Ken’s Remarks to Software Forum Dinner Meeting.
