bwkfanboy 1.3.1 → 1.3.2

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data/README.rdoc CHANGED
@@ -1,15 +1,15 @@
1
1
  = About
2
2
 
3
- bwkfanboy is a HTML to Atom feed converter that you can use to watch
4
- sites that do not provide its own feed.
3
+ bwkfanboy is a converter from a raw HTML to an Atom feed. You can use it
4
+ to watch sites that do not provide its own feed.
5
5
 
6
6
  The converter is not a magick tool: you'll need to write a plugin (in
7
- Ruby) for each site you want to watch. bwkfanboy provides guidelines and
7
+ Ruby) for each site you want to watch. bwkfanboy gives guidelines and
8
8
  general assistance.
9
9
 
10
- Plugins from version 1.1.4 are *incompatible* with the 0.1.x
10
+ (Plugins from version 1.1.4 are *incompatible* with the 0.1.x
11
11
  series. Please reread in doc/plugin.rdoc the example of the skeleton
12
- plugin.
12
+ plugin.)
13
13
 
14
14
  = Included Plugins
15
15
 
@@ -17,7 +17,7 @@ plugin.
17
17
 
18
18
  bwk 2 Brian Kernighan's articles from Daily Princetonian
19
19
  freebsd-ports-update 3 News from FreeBSD ports
20
- quora 11 Last n answers (per-user) from Quora; requires nodejs 0.3.7+
20
+ quora 13 Last n answers (per-user) from Quora; requires nodejs 0.3.7+
21
21
  econlib 1 Latest articles from econlib.org
22
22
 
23
23
 
@@ -37,8 +37,6 @@ file and run:
37
37
 
38
38
  # gem install -l /where/is/your/bwkfanboy-x.y.z.gem
39
39
 
40
- If even this doesn't help, drop me a email.
41
-
42
40
  = Architecture
43
41
 
44
42
  == Plugins
@@ -54,7 +52,7 @@ or user's home
54
52
 
55
53
  ~/.bwkfanboy/plugins
56
54
 
57
- directories.
55
+ directory.
58
56
 
59
57
  == Pipeline
60
58
 
@@ -62,29 +60,29 @@ The program consists of 4 parts:
62
60
 
63
61
  0. *bwkfanboy* script that takes 1 parameter: the name of a file in
64
62
  plugins directories (without the .rb suffix). So, for example to get
65
- an atom feed from dailyprincetonian.com you type:
63
+ an atom feed from dailyprincetonian.com, you type:
66
64
 
67
65
  % bwkfanboy bwk
68
66
 
69
67
  and it will load
70
68
  <tt>/usr/local/lib/ruby/gems/1.9/gems/bwkfanboy-0.0.1/lib/bwkfanboy/plugins/bwk.rb</tt>
71
- file on my FreeBSD machine, fetch and parse html from
69
+ file on my FreeBSD machine, fetch and parse the html from
72
70
  dailyprincetonian.com and generate the required feed, dumping it to
73
71
  stdout.
74
72
 
75
- The script is just a convinient wrapper for 3 separate utils.
73
+ The script is just a convenient wrapper for 3 separate utils.
76
74
 
77
75
  1. *bwkfanboy_fetch*
78
76
 
79
- It reads 1 line from stdin for the URL to fetch from. The result will
80
- be dumped to stdout.
77
+ Reads 1 line from stdin for the URL to fetch from. The result will be
78
+ dumped to stdout.
81
79
 
82
80
  2. *bwkfanboy_parse*
83
81
 
84
- It takes 1 parameter: <em>a full path</em> to a plugin file.
82
+ Takes 1 parameter: <em>a full path</em> to a plugin file.
85
83
 
86
- This util reads stdin expecting it to be a xhtml, parses it and dumps
87
- the result to stdout in JSON-formatted object.
84
+ This util reads stdin, expecting it to be a xhtml, parses it and
85
+ dumps the result to stdout in JSON-formatted object.
88
86
 
89
87
  3. *bwkfanboy_generate*
90
88
 
data/doc/NEWS.rdoc CHANGED
@@ -1,3 +1,13 @@
1
+ === 1.3.2
2
+
3
+ Mon Mar 28 12:13:31 EEST 2011
4
+
5
+ - Fixed a small bug with an Atom feed for plugins with Meta::URI options.
6
+
7
+ - Updated quora plugin (a rather useless operation, because from [insert
8
+ date] Quora provides its own answers-feed). This plugin will be
9
+ removed.
10
+
1
11
  === 1.3.1
2
12
 
3
13
  Thu Mar 17 17:19:52 EET 2011
data/doc/README.erb CHANGED
@@ -1,15 +1,15 @@
1
1
  = About
2
2
 
3
- bwkfanboy is a HTML to Atom feed converter that you can use to watch
4
- sites that do not provide its own feed.
3
+ bwkfanboy is a converter from a raw HTML to an Atom feed. You can use it
4
+ to watch sites that do not provide its own feed.
5
5
 
6
6
  The converter is not a magick tool: you'll need to write a plugin (in
7
- Ruby) for each site you want to watch. bwkfanboy provides guidelines and
7
+ Ruby) for each site you want to watch. bwkfanboy gives guidelines and
8
8
  general assistance.
9
9
 
10
- Plugins from version 1.1.4 are *incompatible* with the 0.1.x
10
+ (Plugins from version 1.1.4 are *incompatible* with the 0.1.x
11
11
  series. Please reread in doc/plugin.rdoc the example of the skeleton
12
- plugin.
12
+ plugin.)
13
13
 
14
14
  = Included Plugins
15
15
 
@@ -32,8 +32,6 @@ file and run:
32
32
 
33
33
  # gem install -l /where/is/your/bwkfanboy-x.y.z.gem
34
34
 
35
- If even this doesn't help, drop me a email.
36
-
37
35
  = Architecture
38
36
 
39
37
  == Plugins
@@ -49,7 +47,7 @@ or user's home
49
47
 
50
48
  ~/.bwkfanboy/plugins
51
49
 
52
- directories.
50
+ directory.
53
51
 
54
52
  == Pipeline
55
53
 
@@ -57,29 +55,29 @@ The program consists of 4 parts:
57
55
 
58
56
  0. *bwkfanboy* script that takes 1 parameter: the name of a file in
59
57
  plugins directories (without the .rb suffix). So, for example to get
60
- an atom feed from dailyprincetonian.com you type:
58
+ an atom feed from dailyprincetonian.com, you type:
61
59
 
62
60
  % bwkfanboy bwk
63
61
 
64
62
  and it will load
65
63
  <tt>/usr/local/lib/ruby/gems/1.9/gems/bwkfanboy-0.0.1/lib/bwkfanboy/plugins/bwk.rb</tt>
66
- file on my FreeBSD machine, fetch and parse html from
64
+ file on my FreeBSD machine, fetch and parse the html from
67
65
  dailyprincetonian.com and generate the required feed, dumping it to
68
66
  stdout.
69
67
 
70
- The script is just a convinient wrapper for 3 separate utils.
68
+ The script is just a convenient wrapper for 3 separate utils.
71
69
 
72
70
  1. *bwkfanboy_fetch*
73
71
 
74
- It reads 1 line from stdin for the URL to fetch from. The result will
75
- be dumped to stdout.
72
+ Reads 1 line from stdin for the URL to fetch from. The result will be
73
+ dumped to stdout.
76
74
 
77
75
  2. *bwkfanboy_parse*
78
76
 
79
- It takes 1 parameter: <em>a full path</em> to a plugin file.
77
+ Takes 1 parameter: <em>a full path</em> to a plugin file.
80
78
 
81
- This util reads stdin expecting it to be a xhtml, parses it and dumps
82
- the result to stdout in JSON-formatted object.
79
+ This util reads stdin, expecting it to be a xhtml, parses it and
80
+ dumps the result to stdout in JSON-formatted object.
83
81
 
84
82
  3. *bwkfanboy_generate*
85
83
 
data/doc/README.rdoc CHANGED
@@ -1,15 +1,15 @@
1
1
  = About
2
2
 
3
- bwkfanboy is a HTML to Atom feed converter that you can use to watch
4
- sites that do not provide its own feed.
3
+ bwkfanboy is a converter from a raw HTML to an Atom feed. You can use it
4
+ to watch sites that do not provide its own feed.
5
5
 
6
6
  The converter is not a magick tool: you'll need to write a plugin (in
7
- Ruby) for each site you want to watch. bwkfanboy provides guidelines and
7
+ Ruby) for each site you want to watch. bwkfanboy gives guidelines and
8
8
  general assistance.
9
9
 
10
- Plugins from version 1.1.4 are *incompatible* with the 0.1.x
10
+ (Plugins from version 1.1.4 are *incompatible* with the 0.1.x
11
11
  series. Please reread in doc/plugin.rdoc the example of the skeleton
12
- plugin.
12
+ plugin.)
13
13
 
14
14
  = Included Plugins
15
15
 
@@ -17,7 +17,7 @@ plugin.
17
17
 
18
18
  bwk 2 Brian Kernighan's articles from Daily Princetonian
19
19
  freebsd-ports-update 3 News from FreeBSD ports
20
- quora 11 Last n answers (per-user) from Quora; requires nodejs 0.3.7+
20
+ quora 13 Last n answers (per-user) from Quora; requires nodejs 0.3.7+
21
21
  econlib 1 Latest articles from econlib.org
22
22
 
23
23
 
@@ -37,8 +37,6 @@ file and run:
37
37
 
38
38
  # gem install -l /where/is/your/bwkfanboy-x.y.z.gem
39
39
 
40
- If even this doesn't help, drop me a email.
41
-
42
40
  = Architecture
43
41
 
44
42
  == Plugins
@@ -54,7 +52,7 @@ or user's home
54
52
 
55
53
  ~/.bwkfanboy/plugins
56
54
 
57
- directories.
55
+ directory.
58
56
 
59
57
  == Pipeline
60
58
 
@@ -62,29 +60,29 @@ The program consists of 4 parts:
62
60
 
63
61
  0. *bwkfanboy* script that takes 1 parameter: the name of a file in
64
62
  plugins directories (without the .rb suffix). So, for example to get
65
- an atom feed from dailyprincetonian.com you type:
63
+ an atom feed from dailyprincetonian.com, you type:
66
64
 
67
65
  % bwkfanboy bwk
68
66
 
69
67
  and it will load
70
68
  <tt>/usr/local/lib/ruby/gems/1.9/gems/bwkfanboy-0.0.1/lib/bwkfanboy/plugins/bwk.rb</tt>
71
- file on my FreeBSD machine, fetch and parse html from
69
+ file on my FreeBSD machine, fetch and parse the html from
72
70
  dailyprincetonian.com and generate the required feed, dumping it to
73
71
  stdout.
74
72
 
75
- The script is just a convinient wrapper for 3 separate utils.
73
+ The script is just a convenient wrapper for 3 separate utils.
76
74
 
77
75
  1. *bwkfanboy_fetch*
78
76
 
79
- It reads 1 line from stdin for the URL to fetch from. The result will
80
- be dumped to stdout.
77
+ Reads 1 line from stdin for the URL to fetch from. The result will be
78
+ dumped to stdout.
81
79
 
82
80
  2. *bwkfanboy_parse*
83
81
 
84
- It takes 1 parameter: <em>a full path</em> to a plugin file.
82
+ Takes 1 parameter: <em>a full path</em> to a plugin file.
85
83
 
86
- This util reads stdin expecting it to be a xhtml, parses it and dumps
87
- the result to stdout in JSON-formatted object.
84
+ This util reads stdin, expecting it to be a xhtml, parses it and
85
+ dumps the result to stdout in JSON-formatted object.
88
86
 
89
87
  3. *bwkfanboy_generate*
90
88
 
data/doc/rakefile.rb CHANGED
@@ -32,7 +32,7 @@ module MyDocs
32
32
  end
33
33
 
34
34
  namespace 'mydocs' do
35
- rule '.rdoc' => ['.erb'] do |i|
35
+ rule '.rdoc' => ['.erb', MyDocs::PLUGINS_DIR.to_s] do |i|
36
36
  File.open(i.name, 'w+') {|fp|
37
37
  puts i.source.pathmap('%-1d/%f') + ' > ' + i.name.pathmap('%-1d/%f')
38
38
  fp.puts ERB.new(File.read(i.source)).result(binding)
@@ -1,6 +1,6 @@
1
1
  module Bwkfanboy
2
2
  module Meta
3
3
  NAME = 'bwkfanboy'
4
- VERSION = '1.3.1'
4
+ VERSION = '1.3.2'
5
5
  end
6
6
  end
@@ -56,13 +56,14 @@ module Bwkfanboy
56
56
  }
57
57
 
58
58
  m = get_meta()
59
+ uri = eval("\"#{m::URI}\"")
59
60
  j = {
60
61
  channel: {
61
62
  updated: u,
62
- id: m::URI,
63
+ id: uri,
63
64
  author: Meta::NAME, # just a placeholder
64
65
  title: m::TITLE,
65
- link: m::URI,
66
+ link: uri,
66
67
  x_entries_content_type: m::CONTENT_TYPE
67
68
  },
68
69
  x_entries: @entries
@@ -43,6 +43,7 @@ function prepare4eval(body) {
43
43
  "W2._ConnectionWarningCls = function(args) {}\n" +
44
44
  "W2._LoadingCls = function(args) {}\n" +
45
45
  "W2._InteractionModeCls = function(args) {}\n" +
46
+ "W2.onLoad = function(args) {}\n" +
46
47
  "\n" +
47
48
  "document = 'foo'\n" +
48
49
  "$ = function(foo) { return $ }\n" +
@@ -93,6 +94,7 @@ function prepare4eval(body) {
93
94
  "function RateAnswerApproveButton(args) { return arr(arguments) }\n" +
94
95
  "function AnswerVoterNamesExpandable(args) { return arr(arguments) }\n" +
95
96
  "function PrefetchManager(args) { return arr(arguments) }\n" +
97
+ "function ResponseRecorder(args) { return arr(arguments) }\n" +
96
98
  '';
97
99
  var tail = "\n_components;\n";
98
100
 
@@ -15,7 +15,7 @@ class Page < Bwkfanboy::Parse
15
15
  URI = 'http://www.quora.com/#{opt[0]}/answers'
16
16
  URI_DEBUG = '/home/alex/lib/software/alex/bwkfanboy/test/semis/quora.html'
17
17
  ENC = 'UTF-8'
18
- VERSION = 11
18
+ VERSION = 13
19
19
  COPYRIGHT = "See bwkfanboy's LICENSE file"
20
20
  TITLE = "Last n answers (per-user) from Quora; requires nodejs 0.3.7+"
21
21
  CONTENT_TYPE = 'html'
@@ -70,7 +70,7 @@ class Page < Bwkfanboy::Parse
70
70
 
71
71
  c = i.xpath("../div[@class='hidden expanded_q_text']/div").inner_html(encoding: Meta::ENC)
72
72
  if c == ''
73
- c = i.xpath("../../div/div/div")
73
+ c = i.xpath("../../div/div/div/div[3]")
74
74
  c.xpath("div").each {|j| j.remove() }
75
75
  c = c.inner_html(encoding: Meta::ENC)
76
76
  end
@@ -1,12 +1,24 @@
1
- <!DOCTYPE html><html><head><title>Brandon Smietana Answers - Quora</title><script>document.domain=document.domain;_w2timing={};_w2timing.start=(new Date()).getTime();_w2replay=(function(){var b=[],a=[],d,g=/^a$/i;function c(j,i,h){var k;if(j.addEventListener){j.addEventListener(i,k=function(l){if(h.call(this,l)===false){l.preventDefault()}},false)}else{if(j.attachEvent){j.attachEvent("on"+i,k=function(){return h.call(this,window.event)})}else{return}}b.push([j,i,k])}function f(j,i,h){if(j.removeEventListener){j.removeEventListener(i,h,false)}else{if(j.detachEvent){j.detachEvent("on"+i,h)}}}function e(h){c(document,h,function(j){var i=j.target||j.srcElement;a.push({type:h,elem:i,cursor:i.style.cursor});i.style.cursor="wait";if(g.test(i.nodeName)&&i.getAttribute("href")==="#"){return false}})}e("mousedown");e("mouseup");e("click");return function(k){if(d){return}d=true;while(b.length){f.apply(null,b.pop())}for(var h=0,j,l;j=a[h];++h){if((l=j.elem).style.cursor=="wait"){l.style.cursor=j.cursor}if(k.inDom(l)){k(l).trigger(j.type)}}}})();</script><meta http-equiv="X-UA-Compatible" content="IE=EmulateIE7" /><link rel="search" type="application/opensearchdescription+xml" href="/opensearch/description.xml" title="Quora" /><!--[if IE]><link rel="stylesheet" type="text/css" href="/static/ie.css" /><![endif]--><meta property="og:site_name" content="Quora" /><meta property="og:description" content="&quot;There is no such thing as perfect. There is only growth.&quot;" /><meta property="og:title" content="Brandon Smietana on Quora" /><meta property="og:url" content="http://www.quora.com/Brandon-Smietana" /><meta property="og:image" content="http://d2o7bfz2il9cb7.cloudfront.net/main-thumb-6673-50-iQY07uHy4EIxliIOKB2oVtdnn7FsdmZc.jpeg" /><meta property="og:type" content="article" /><meta name="robots" content="noarchive"/><link rel="alternate" type="application/rss+xml" title="RSS 2.0" href="http://www.quora.com/Brandon-Smietana/answers/rss" /><link href="http://d1vgw4v7ja2ido.cloudfront.net/-c78da7565ff11063.css" rel="stylesheet" type="text/css" /><link href="http://d1vgw4v7ja2ido.cloudfront.net/-e1a1b93fb80de6b6.css" rel="stylesheet" type="text/css" /></head><body><div><div id="ld_OtEogM_832"><div style="display:none;" id="live_mutation_pending"></div><div class="header wrapper" id="layout_header"><div class="contents"><div class="logo"><a class="w1" href="/" id="__w2_ciUdEjS_logo">Quora</a></div><ul class="nav_list"><li class="home"><a href="/" id="__w2_UhZNb1x_link">Home</a></li><li class="about"><a href="/about" id="__w2_WwTvRYJ_link">About</a></li><li class="login sub"><a href="#" id="__w2_BbiqO2H_login_link">Login</a></li><li class="signup"><a href="/signup/index" id="__w2_EQmb32l_link">Sign Up</a></li></ul><div class="search w3_5"><div class="search_contents navigator"><form class="search_form" action="#" onsubmit="return false;" method="get" name="search_form"><div class="search_input"><div class="input_wrapper"><span class="context" id="__w2_ke85vZE_context"></span><input class="question_box" group="__w2_E7xkFrX_interaction" autocomplete="off" type="text" placeholder="Search Questions, Topics and People" value="" maxlength="150" w2cid="E7xkFrX" id="__w2_E7xkFrX_input" /><a class="clear_navigator hidden" href="#" id="__w2_E7xkFrX_clear">&nbsp;</a><div class="placeholder hidden" id="__w2_E7xkFrX_placeholder"></div></div></div></form><div class="add_question_note attention col w3_5 hidden" id="__w2_hmKL2zC_note"><div class="notice_tip_nub">&nbsp;</div><div class="notice_tip br5"><div class="p0_5" style="padding-top:0;">Similar questions will display as you type. If your question is available,
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- choose it from the list.</div></div></div><div id="__w2_E7xkFrX_results_shell"><div class="results_frame" id="__w2_TgdKAKb_results_frame"><ul id="__w2_TgdKAKb_results_list"><li class="instruction" id="__w2_TgdKAKb_list_item_0"><a class="result_item" href="#">Search Questions, Topics and People <span class="light">Press enter to add a new question</span></a></li></ul></div></div></div></div></div></div><div id="ld_OtEogM_833"></div></div><div class="pmsg_container main wrapper hidden" id="__w2_OfjcqyD_pmsg_container"></div><div class="main wrapper"><div class="user_profile contents content main_content"><div id="ld_OtEogM_834"></div><div class="page_header row main_col"><div class="e_col w2_5 side_col"><span id="ld_OtEogM_835"><a class="follow_button" href="#" id="__w2_z9XgOFz_follow_user">Follow Brandon</a></span><span id="ld_OtEogM_836"></span></div><div class="w5_5 e_col"><div id="ld_OtEogM_837"><h1><div class="profile_icons"><a class="sn_icon" href="http://www.facebook.com/profile.php?id=542785349" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-ef4b999ebe928b2f.gif" /></a><a class="sn_icon" href="http://twitter.com/RKHilbertSpace" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-f2e98b581d7a2736.ico" /></a></div>Brandon Smietana</h1></div><div class="w4_5"><div id="ld_OtEogM_838"><div class="user_topic_sig">Founder of Symbolic Analytics</div></div></div></div><div id="ld_OtEogM_839"><div class="tabs w8" style="margin-left:-10px;"><a class="link" href="/Brandon-Smietana">Profile</a><a class="link" href="/Brandon-Smietana/about">About <span class="light normal">(</span>8<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/questions">Questions <span class="light normal">(</span>1534<span class="light normal">)</span></a><a class="link selected" href="/Brandon-Smietana/answers">Answers <span class="light normal">(</span>551<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/posts">Posts <span class="light normal">(</span>10<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/log">Edits <span class="light normal">(</span>10892<span class="light normal">)</span></a></div></div></div><div class="col w4_5 main_col"><div id="ld_OtEogM_840"><div id="ld_OtEogM_847"><div class="pagedlist_item" id="ld_OtEogM_863"><div class="feed_item stream_feed_item p1" id="__w2_TJkaxz8_item"><div class="e_col w4_5"><div id="ld_OtEogM_884"><div class="feed_item_question"><h2><span id="ld_OtEogM_924"><span id="ld_OtEogM_1084"></span><a class="question_link" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round" id="__w2_rFha5fr_link"><span id="ld_OtEogM_1085"></span>Is it ok to say you want to go from seed to exit when raising an angel round?</a></span></h2></div></div><div id="ld_OtEogM_885"><div class="feed_item_answer answer_text" id="__w2_zzhFO23_answer"><div class="rating_buttons"><div id="__w2_zzhFO23_answer_voting"><div id="ld_OtEogM_944"><div class="rating_buttons"><div class="rating_options" id="__w2_ddP1vqK_buttons"><a class="lil_button rate_up" href="#" id="__w2_ddP1vqK_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ddP1vqK_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_zzhFO23_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_zzhFO23_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_EvwOnTt_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_EvwOnTt_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_EvwOnTt_menu_contents"> </div></div></span><div id="__w2_zzhFO23_answer_voters"><div id="ld_OtEogM_945"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Mikael-Totterman">Mikael Totterman</a> and Anon User</span></div></div></div><div id="ld_OtEogM_946"></div>&quot;<b>The decision to accept VC investment increases the time to exit by approximately 12 years, not the median time of 7 years.&quot;  </b>Taking on VC increases mean exit time, increases the failure rate of portfolio companies and increases risk to angel investors.<br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-ce50f79755383b1d2b2f38a2fc0e8724" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-d2e6292b29a0dca45525b3d8f1d0e438" master_w="500" master_h="375" /><br />See: <span class="qlink_container"><a href="/Brandon-Smietana/Angel-Investing/Graph-Time-From-VC-Financing-to-an-M-A-Exit">Graph: Time From VC Financing to an M&amp;A Exit</a></span><br /><br />See: Exits with VC and Angel Investors - The Wiltbank Data <a href="http://www.angelblog.net/Exits_with_VC_and_Angel_Investors.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exits_w...</a><br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-69a80115a37559b089a70c5576dca5f7" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-a190cbeebabbf3c62fa98ce6c534f446" master_w="500" master_h="375" /><br />Many angels prefer quick, early exits. They like to get their money back. Having your capital tied up for another decade, to achieve only a few percentage points higher returns is not attractive to most angels.<br /><br />Also, angels suffer dilution in additional financing rounds; which are getting larger.<br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-adf74678f356e4eb9eb471d7a6c02595" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-78b15b8626e7b07fc048cd202701bb9e" master_w="500" master_h="375" /><br />VCs do not want to &quot;hear about exits&quot; because the median exit for a VC company is now a decade into the future after the round closes.<br /><br />Therefore angels should have a preference for investing in companies that can undergo and M&amp;A or become profitable, without VC. However, many investors do not have data or experience needed to understand how requiring VC can affect returns and the period that capital is held up in the investment.<br /><br />Many angel investors have suffered in previous companies when VC investors come in. Convertible debt caps are renegotiated and minority shareholders are often treated adversely by institutional investors. Taking on VC also tends to increase the time to exit.<br /><br />Many angels add value early in the company; by bringing in customers, helping to recruit employees, financing early expenses and giving feedback on the product. Then after the institutional investors come in, they sometimes say &quot;These minority investors are no longer &#039;adding value&#039;&quot; and the minority investors are treated badly in subsequent financing rounds. For instance, by being stripped of their participation rights in subsequent rounds.<br /><br />Early stage PE investors do not make money by generating 30% returns on each investment. Early stage VCs need to invest in companies that can &quot;return the fund&quot;. This means they would rather see a company fail with 80% probability and 20% chance of returning the fund, rather than see an early exit at less than 3x returns.<br /><br />Companies that defer profitability or exit until the VC stage entails an additional layer of risk, beyond the high failure rate of pre-series A companies.<br /><br />For instance, VC funding heightens the risk of down rounds that may wipe out minority shareholders and founders. Many of the highest returns in the VC asset class were generated by companies that went through &quot;washout&quot; rounds.<br /><br />So in general, angels should prefer to make investments in companies that do not require VC to achieve profitability or an exit. In practice, this may not be true however because not all angels are making rational investment decisions which are informed by analysis of the exit data,<br /><br />For more information, see<br /><br /><b>Early Exits: Exit Strategies for Entrepreneurs and Angel Investors </b><u><a href="http://amzn.to/eMqrJE" rel="nofollow" target="_blank" class="external_link">http://amzn.to/<wbr />eMqrJE</a></u><div class="action_bar" id="__w2_zzhFO23_answer_actions"><span id="ld_OtEogM_947"><a class="view_comments supp " href="#" id="__w2_Un1QT0F_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_948"><a class="answer_permalink" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round/answer/Brandon-Smietana"><span class="datetime" id="__w2_rxMtXOY_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1064"></span></span></div><div id="ld_OtEogM_949"><div class="comments answer_comments hidden" id="__w2_ZLpA9HN_answer_comments"><div id="ld_OtEogM_1124"><span id="ld_OtEogM_1144"><div class="comment p0_5"><small><a class="light" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_864"><div class="feed_item stream_feed_item p1" id="__w2_tjbWi3z_item"><div class="e_col w4_5"><div id="ld_OtEogM_886"><div class="feed_item_question"><h2><span id="ld_OtEogM_925"><span id="ld_OtEogM_1086"></span><a class="question_link" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed" id="__w2_kJREjKy_link"><span id="ld_OtEogM_1087"></span>What should I do if my assessment of the most successful person in my profession leaves me unimpressed?</a></span></h2></div></div><div id="ld_OtEogM_887"><div class="feed_item_answer answer_text" id="__w2_um0f758_answer"><div class="rating_buttons"><div id="__w2_um0f758_answer_voting"><div id="ld_OtEogM_950"><div class="rating_buttons"><div class="rating_options" id="__w2_cwPfmJz_buttons"><a class="lil_button rate_up" href="#" id="__w2_cwPfmJz_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_cwPfmJz_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_um0f758_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_um0f758_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_vaDC3Ag_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_vaDC3Ag_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_vaDC3Ag_menu_contents"> </div></div></span><div id="__w2_um0f758_answer_voters"><div id="ld_OtEogM_951"></div></div></div><div id="ld_OtEogM_952"></div>Lower your expectations.<div class="action_bar" id="__w2_um0f758_answer_actions"><span id="ld_OtEogM_953"><a class="view_comments supp " href="#" id="__w2_Xs89Xlo_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_954"><a class="answer_permalink" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed/answer/Brandon-Smietana"><span class="datetime" id="__w2_C2iSzqG_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1065"></span></span></div><div id="ld_OtEogM_955"><div class="comments answer_comments hidden" id="__w2_gS1tu9w_answer_comments"><div id="ld_OtEogM_1125"><span id="ld_OtEogM_1145"><div class="comment p0_5"><small><a class="light" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_865"><div class="feed_item stream_feed_item p1" id="__w2_pJ7kmmd_item"><div class="e_col w4_5"><div id="ld_OtEogM_888"><div class="feed_item_question"><h2><span id="ld_OtEogM_926"><span id="ld_OtEogM_1088"></span><a class="question_link" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life" id="__w2_YI1bRp4_link"><span id="ld_OtEogM_1089"><span class="best_source_icon" id="__w2_BU48FJt_icon"></span></span>If I haven&#039;t succeeded in my mid 20s, could I be successful in the rest of my life?</a></span></h2></div></div><div id="ld_OtEogM_889"><div class="feed_item_answer answer_text" id="__w2_FGBxMmA_answer"><div class="rating_buttons"><div id="__w2_FGBxMmA_answer_voting"><div id="ld_OtEogM_956"><div class="rating_buttons"><div class="rating_options" id="__w2_P90Lswm_buttons"><a class="lil_button rate_up" href="#" id="__w2_P90Lswm_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_P90Lswm_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_FGBxMmA_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_FGBxMmA_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_Bwbd2VI_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_Bwbd2VI_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_Bwbd2VI_menu_contents"> </div></div></span><div id="__w2_FGBxMmA_answer_voters"><div id="ld_OtEogM_957"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">55</strong> votes</span> by <a class="user" href="/Robert-Boyd">Robert Boyd</a>, <a class="user" href="/Vladimir-Dimitroff">Vladimir Dimitroff</a>, <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a>, <a class="more_link" href="#" id="__w2_QWTu7tp_view_all_link">(more)</a></span></div></div></div><div id="ld_OtEogM_958"></div>Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br /><br />Many entrepreneurs do not achieve an exit until they are in mid thirties to late forties.The percentage of people who succeed before they are 35 is very low. People in their early thirties tend to be on their third or fourth company and still have not achieved an exit yet.<br /><br />Also, many people who &quot;Succeed&quot; early on seem to spend all their money and are not successful at 30. Many people have flipped web-applications for 1 to 3 million in their early 20s and most of them do not know how to invest. Many people live above their level of income and end up spending the money by the time they are 30. The natural tendency of most Americans is towards debt (negative savings rate).<br /><br />Most of the people I have met who were successful in their 20s, were unsuccessful by the time they were in their thirties. This may constitute the majority of people who are &quot;successful&quot; in their 20s, although I am sure there are exceptions.<br /><br />One person built a successful social game and started to make several hundred thousand dollars a year overnight. However, instead of focusing on what made him successful, he was buying cars and traveling and his competitors annihilated his company and he lost his revenue source.<br /><br />Financial success begets laziness. Laziness begets failure. It is the virtuous cycle.<div class="action_bar" id="__w2_FGBxMmA_answer_actions"><span id="ld_OtEogM_959"><a class="view_comments supp " href="#" id="__w2_hX4wNtK_view_comment_link">5 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_960"><a class="answer_permalink" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/answer/Brandon-Smietana"><span class="datetime" id="__w2_mKUTOAJ_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1066"></span></span></div><div id="ld_OtEogM_961"><div class="comments answer_comments hidden" id="__w2_pAx0Gtp_answer_comments"><div id="ld_OtEogM_1126"><div id="ld_OtEogM_1146"><a name="comment288120"></a><div class="comment p0_5 br5 featured_comment" id="__w2_BvMGoFI_comment"><div class="comment_contents"><p class="comment_text">Colonel Sanders didn&#039;t start the first KFC franchise until he was 65. (Note: I do not recommend chicken as a path to riches).</p><p class="action_bar"><a class="user" href="/Michael-Wolfe">Michael Wolfe</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_WyLq0GW_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1147"><a name="comment288250"></a><div class="comment p0_5 br5 featured_comment" id="__w2_NCiU1FE_comment"><div class="comment_contents"><p class="comment_text">why not?</p><p class="action_bar"><a class="user" href="/Andrew-Cheung">Andrew Cheung</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CB3YtbE_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1148"><a name="comment288668"></a><div class="comment p0_5 br5 featured_comment" id="__w2_VQlWdgW_comment"><div class="comment_contents"><p class="comment_text">&quot;Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.&quot; Where did you get this data?</p><p class="action_bar"><a class="user" href="/Harjeet-Taggar">Harjeet Taggar</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_UKCykh2_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1149"><a name="comment288690"></a><div class="comment p0_5 br5 featured_comment" id="__w2_TxgvAKs_comment"><div class="comment_contents"><p class="comment_text">Harjeet, I was quoting a tweet I made earlier <a href="http://twitter.com/#!/RKHilbertSpace/status/44241111920807936" rel="nofollow" target="_blank" class="external_link">http://twitter.com/#!/RKH<wbr />ilbertS...</a><br /><br />The source of the stats is Zagorsky, J. L. Do you have to be smart to be rich? The impact of IQ on wealth, income and financial distress. Intelligence (2007), doi:10.1016/j.intell.2007<wbr />.02.003<br /><br />More information here, <a href="http://b.qr.ae/dUWNis" rel="nofollow" target="_blank" class="external_link">http://b.qr.ae/dUWNis</a></p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gughoX7_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1150"><a name="comment289469"></a><div class="comment p0_5 br5 featured_comment" id="__w2_CCO0IgM_comment"><div class="comment_contents"><p class="comment_text">Good answer Brandon. You just described my entire life thus far. I&#039;m 31 &amp; on my 4th business. The last biz was exceedingly profitable at one point, that is until I blew the cash and became reckless with both my personal and business&#039; finances. <br /><br />Now I&#039;m starting from scratch, no exit strategy for the foreseeable future, but all the desire and ambition I had when I was 18 in my college dorm room pondering on how to be a millionaire by 30.<br /><br />Good insight...</p><p class="action_bar"><a class="user" href="/Geoffrey-Hull">Geoffrey Hull</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_K0XcYEJ_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1151"><div class="comment p0_5"><small><a class="light" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/all_comments/Brandon-Smietana">View All 6 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_866"><div class="feed_item stream_feed_item p1" id="__w2_nTC9aTR_item"><div class="e_col w4_5"><div id="ld_OtEogM_890"><div class="feed_item_question"><h2><span id="ld_OtEogM_927"><span id="ld_OtEogM_1090"></span><a class="question_link" href="/How-can-I-avoid-copying-a-software-patent-by-accident" id="__w2_OoIFIoT_link"><span id="ld_OtEogM_1091"></span>How can I avoid copying a software patent by accident?</a></span></h2></div></div><div id="ld_OtEogM_891"><div class="feed_item_answer answer_text" id="__w2_xp2xT6D_answer"><div class="rating_buttons"><div id="__w2_xp2xT6D_answer_voting"><div id="ld_OtEogM_962"><div class="rating_buttons"><div class="rating_options" id="__w2_vJ9j0hz_buttons"><a class="lil_button rate_up" href="#" id="__w2_vJ9j0hz_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_vJ9j0hz_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_xp2xT6D_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_xp2xT6D_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_Jv0UVv0_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_Jv0UVv0_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_Jv0UVv0_menu_contents"> </div></div></span><div id="__w2_xp2xT6D_answer_voters"><div id="ld_OtEogM_963"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_gqzARt6_view_all"><a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Will-Richardson">Will Richardson</a>, Anon User, </span> <a class="more_link" href="#" id="__w2_gqzARt6_view_all_link">(more)</a><span class="hidden" id="__w2_gqzARt6_all_phrases"><a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Will-Richardson">Will Richardson</a>, Anon User, <a class="user" href="/Dawn-Teo">Dawn Teo</a> and <a class="user" href="/Justin-Musa">Justin Musa</a></span></span></div></div></div><div id="ld_OtEogM_964"></div>Impossible. Everything in software is patented.<br /><br />Do you used linked lists? Well someone patented that in 2006<br /><br /><a href="http://www.google.com/patents?id=Szh4AAAAEBAJ&amp;printsec=abstract#v=onepage&amp;q&amp;f=false" rel="nofollow" target="_blank" class="external_link">http://www.google.com/pat<wbr />ents?id...</a><br /><br />Do you use doubly linked lists in your program? That is patented too!<br /><br /><a href="http://www.google.com/patents?id=Szh4AAAAEBAJ&amp;printsec=abstract#v=onepage&amp;q&amp;f=false" rel="nofollow" target="_blank" class="external_link">http://www.google.com/pat<wbr />ents?id...</a><br /><br />There is a patent for displaying real estate on a map in a web-browser. &quot;Internet organizer for accessing geographically and topically based information&quot; <a href="http://1.usa.gov/h7tG6l" rel="nofollow" target="_blank" class="external_link">http://1.usa<wbr />.gov/h7tG6l</a><br /><br />Does your company distribute videos through a computer network? You are violating several patents! <br /><br />Do you have an online shopping cart? You are a patent infringer, US Patent  <b>7,272,639</b>, <b>US Patent 5,715,314</b> and US Patent <b>5,909,492</b><br /><br />Does your social game use cloud computing? That is patented too.<br /><br />How about a wireless device that plays video games? That is patented too. &quot;Apparatus for video gaming includes a box having a slot with an interface that connects to a game card providing a platform to run a software video game.&quot; <a href="http://1.usa.gov/hLVXYo" rel="nofollow" target="_blank" class="external_link">http://1.usa.gov/h<wbr />LVXYo</a><br /><br />In 1986 and 1999, patents were awarded for run-length encoding. Nearly every software company in every industry was violating these patents, until the patent expired.<br /><br />Arithmetic encoding was patented, several times, despite being prior art. You would not even know if you were violating the patent because the patent filers just changed the name of the algorithm from the prior art (but kept the algorithm and probability model the same).<br /><br />US Patent 4286256, US Patent 4295125, US Patent 4463342, US Patent 4467317, US Patent 4633490, US Patent 4652856, US Patent 4891643,US Patent 4905297, US Patent 4935882, US Patent 4973961, US Patent 5023611, US Patent 5025258<br /><br /><b>EVERYTHING is patented in software. If you write software, you are violating someones patent.</b><br /><br />Most of the software patents would be invalidated, however when you are sued you will not pay 5 million dollars to defend yourself against a weak patent claim because it is cheaper to settle the lawsuit than to fight it.<br /><br />Also, if you are aware of a patent and are later found to have violated it, then damages are tripled. This is why companies such as Microsoft instruct their employees not to examine patents.<div class="action_bar" id="__w2_xp2xT6D_answer_actions"><span id="ld_OtEogM_965"><a class="view_comments supp " href="#" id="__w2_rweKbJV_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_966"><a class="answer_permalink" href="/How-can-I-avoid-copying-a-software-patent-by-accident/answer/Brandon-Smietana"><span class="datetime" id="__w2_GHvaony_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1067"></span></span></div><div id="ld_OtEogM_967"><div class="comments answer_comments hidden" id="__w2_mUcAqK7_answer_comments"><div id="ld_OtEogM_1127"><span id="ld_OtEogM_1152"><div class="comment p0_5"><small><a class="light" href="/How-can-I-avoid-copying-a-software-patent-by-accident/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_867"><div class="feed_item stream_feed_item p1" id="__w2_vBalbCF_item"><div class="e_col w4_5"><div id="ld_OtEogM_892"><div class="feed_item_question"><h2><span id="ld_OtEogM_928"><span id="ld_OtEogM_1092"></span><a class="question_link" href="/Who-are-good-friends-of-Steve-Jobs" id="__w2_Vi78uXs_link"><span id="ld_OtEogM_1093"></span>Who are good friends of Steve Jobs?</a></span></h2></div></div><div id="ld_OtEogM_893"><div class="feed_item_answer answer_text" id="__w2_Re53e5Z_answer"><div class="rating_buttons"><div id="__w2_Re53e5Z_answer_voting"><div id="ld_OtEogM_968"><div class="rating_buttons"><div class="rating_options" id="__w2_gdGJ555_buttons"><a class="lil_button rate_up" href="#" id="__w2_gdGJ555_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_gdGJ555_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_Re53e5Z_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Re53e5Z_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_FMQKRvJ_link"><span class="rep" id="__w2_FMQKRvJ_sig">I was standing right next to Ste...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_FMQKRvJ_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_FMQKRvJ_menu_contents"> </div></div></span><div id="__w2_Re53e5Z_answer_voters"><div id="ld_OtEogM_969"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">4</strong> votes</span> by <a class="user" href="/Marc-Bodnick">Marc Bodnick</a>, <a class="user" href="/Murtaza-Ali-Akbar">Murtaza Ali Akbar</a>, <a class="user" href="/Joe-Luka">Joe Luka</a> and <a class="user" href="/David-Haddad">David Haddad</a></span></div></div></div><div id="ld_OtEogM_970"></div>Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by the board of directors in ~1986.<div class="action_bar" id="__w2_Re53e5Z_answer_actions"><span id="ld_OtEogM_971"><a class="view_comments supp " href="#" id="__w2_ZrAtQGC_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_972"><a class="answer_permalink" href="/Who-are-good-friends-of-Steve-Jobs/answer/Brandon-Smietana"><span class="datetime" id="__w2_XMQWQea_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1068"></span></span></div><div id="ld_OtEogM_973"><div class="comments answer_comments hidden" id="__w2_NrglLUW_answer_comments"><div id="ld_OtEogM_1128"><span id="ld_OtEogM_1153"><div class="comment p0_5"><small><a class="light" href="/Who-are-good-friends-of-Steve-Jobs/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_868"><div class="feed_item stream_feed_item p1" id="__w2_YlSGb1s_item"><div class="e_col w4_5"><div id="ld_OtEogM_894"><div class="feed_item_question"><h2><span id="ld_OtEogM_929"><span id="ld_OtEogM_1094"></span><a class="question_link" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011" id="__w2_nU3m5qp_link"><span id="ld_OtEogM_1095"></span>How can angel investment in DC be rapidly expanded in 2011?</a></span></h2></div></div><div id="ld_OtEogM_895"><div class="feed_item_answer answer_text" id="__w2_VQ2mN4a_answer"><div class="rating_buttons"><div id="__w2_VQ2mN4a_answer_voting"><div id="ld_OtEogM_974"><div class="rating_buttons"><div class="rating_options" id="__w2_FHICVBp_buttons"><a class="lil_button rate_up" href="#" id="__w2_FHICVBp_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_FHICVBp_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_VQ2mN4a_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_VQ2mN4a_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_Ktu95Pq_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_Ktu95Pq_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_Ktu95Pq_menu_contents"> </div></div></span><div id="__w2_VQ2mN4a_answer_voters"><div id="ld_OtEogM_975"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_l1hom2z_view_all"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Newton-Naz">Newton Naz</a>, </span> <a class="more_link" href="#" id="__w2_l1hom2z_view_all_link">(more)</a><span class="hidden" id="__w2_l1hom2z_all_phrases"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Newton-Naz">Newton Naz</a>, <a class="user" href="/Ian-Peters-Campbell">Ian Peters-Campbell</a> and <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a></span></span></div></div></div><div id="ld_OtEogM_976"></div><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC.</li><li>Encourage rich people to join an angel group.</li></ol><br />Also consider<br /><ul><li>publicly funded or city subsidized coworking spaces for startups</li><li>hosting events and inviting speaker to give talks about angel investing and encourage formation of angel investing groups</li><li>encourag the formation of Hackerspaces, either through direct subsidies. Hackerspaces are organized as non-profits. Hackerspaces and coworking spaces rapidly increase the technical base of a cities and accelerate company formation.</li></ul><br />For instance<br /><br /><a href="http://www.angelblog.net/Exit_Strategies_for_Angel_Investors_Video.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exit_St...</a><br /><br />Forming angel groups is a very important part of the process of encouraging angel investments. Angel groups are becoming social clubs and are rapidly expanding the capital base available to seed stage companies.<div class="action_bar" id="__w2_VQ2mN4a_answer_actions"><span id="ld_OtEogM_977"><a class="view_comments supp " href="#" id="__w2_hAv5ZHa_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_978"><a class="answer_permalink" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/answer/Brandon-Smietana"><span class="datetime" id="__w2_tj3A9WM_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1069"></span></span></div><div id="ld_OtEogM_979"><div class="comments answer_comments hidden" id="__w2_AKJCRmg_answer_comments"><div id="ld_OtEogM_1129"><div id="ld_OtEogM_1154"><a name="comment279921"></a><div class="comment p0_5 br5 featured_comment" id="__w2_I5SOW8t_comment"><div class="comment_contents"><p class="comment_text">There are plenty of rich people here, and plenty of startups. I&#039;m working on #3 this very moment and will post back shortly.</p><p class="action_bar"><a class="user" href="/Peter-Corbett">Peter Corbett</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_y7QLhks_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1155"><a name="comment280748"></a><div class="comment p0_5 br5 featured_comment" id="__w2_cxZm2rV_comment"><div class="comment_contents"><p class="comment_text">Here it is: <a href="http://angelXLR8R.eventbrite.com" rel="nofollow" target="_blank" class="external_link">http://angelXLR8R.eventbr<wbr />ite.com</a></p><p class="action_bar"><a class="user" href="/Peter-Corbett">Peter Corbett</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_EXl7FsL_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1156"><div class="comment p0_5"><small><a class="light" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/all_comments/Brandon-Smietana">View All 2 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_869"><div class="feed_item stream_feed_item p1" id="__w2_lDOuZ5Q_item"><div class="e_col w4_5"><div id="ld_OtEogM_896"><div class="feed_item_question"><h2><span id="ld_OtEogM_930"><span id="ld_OtEogM_1096"></span><a class="question_link" href="/What-is-hard-about-making-something-like-EtherPad" id="__w2_wbSqNU5_link"><span id="ld_OtEogM_1097"></span>What is hard about making something like EtherPad?</a></span></h2></div></div><div id="ld_OtEogM_897"><div class="feed_item_answer answer_text" id="__w2_xDKA8Z8_answer"><div class="rating_buttons"><div id="__w2_xDKA8Z8_answer_voting"><div id="ld_OtEogM_980"><div class="rating_buttons"><div class="rating_options" id="__w2_ZRa3ius_buttons"><a class="lil_button rate_up" href="#" id="__w2_ZRa3ius_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ZRa3ius_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_xDKA8Z8_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_xDKA8Z8_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_eu35Gcd_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_eu35Gcd_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_eu35Gcd_menu_contents"> </div></div></span><div id="__w2_xDKA8Z8_answer_voters"><div id="ld_OtEogM_981"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">4</strong> votes</span> by <a class="user" href="/Ben-Nham">Ben Nham</a>, <a class="user" href="/Tudor-Achim">Tudor Achim</a>, <a class="user" href="/Nikola-Toshev">Nikola Toshev</a> and <a class="user" href="/Devin-Walters">Devin Walters</a></span></div></div></div><div id="ld_OtEogM_982"></div>Nothing is difficult about building an Etherpad type application, it is just very nuanced. The problem is similar to the problem of distributed databases or the problem of distributed state across multiple machines.<br /><br />I have n-computers with copies of the same piece of data. Each computer is modifying the local copy of the data and sending changes to the other computers. Assume computer 1 modifies data item 5 and then transmit change to computer 2, but before computer 2 receives the delta from computer 1, computer 2 also modifies data item 5. Then the delta is applied against data item 5 on computer 2 and now computer 1 and 2 are no longer in sync. They have different databases that are no longer syncronized.<br /><br />If the data operations commute (in the sense of group theory), then the first computer will go back into sync with computer 2, when computer 1 receives the delta from computer 2. You can treat operations on the state of data as a semi-group. If the operations do not commute (if the database state depends on the order the delta operations are applied), the the two databases will be out of sync.<br /><br />This problem does not occur in MySQL master-slave arrangements because deltas only go from the master to the slave and not in both directions.<br /><br />The following problem occurs; how do we get the two databases synced up again? How do we resolve the non-communititvity of the data operations?<br /><br />For a mathematical treatment, see<br /><br /><a href="http://en.wikipedia.org/wiki/%CE%A0-calculus" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/%CE...</a><br /> <br />Notice that the operations on two different rows of a database commute. However two operations on the same row (such as setting the row to a value) do not usually do commute. Two increment or decrement operations commute.<br /><br />One method is to create a partial ordering on all data-operations and ensure that operations are applied to the data in a way that respects the partial ordering. Creating the partial ordered time stamps in a distributed system is closely related to &quot;clock synchronization problem&quot;. One solution to creating a partial ordering of events in a distributed system is called &quot;vector clocks&quot;<br /><br /><a href="http://en.wikipedia.org/wiki/Vector_clocks" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Vec...</a><br /><br />Note: a variation of vector clocks can be used for distributed versioning of data objects. In a distributed setting, using a simple version counter does not make sense. You often need a versioning method to determine whether the client has the same version of the document as the server (so that server can only retransmit diffs or transactions instead of retransmitting the whole document). In the non-distributed setting a version counter is sufficient Lazy people building distributed system who do not want to impose a partial ordering on their document versions often just use a hash of the document (git uses this approach).<br /><br />A an simpler approach to resolve conflicts is to have a single computer act as the &quot;canonical state&quot; (very similar to a master-slave arrangement, with operations being performed on central server and changes being relayed back to the clients), with that computer resolving conflicts between the deltas. There are a number of algorithms and techniques for doing this and it is a similar problem to resolving merge conflicts in a distributed version control system like Mercurial. If two delta are applied to the same data item at the same time by two different clients, the master server can invalidate the second delta to arrive. This only occurs when multiple clients/users are modifying the same area of the data and there are &#039;merge conflicts&#039; between the two diffs. Applications like etherpad have to resolve merge conflicts in real-time, often by discarding the inputs or modifications made by a particular client.<br /><br />The &quot;canonical state&quot; approach works very well for web applications, is simplier than a true p2p approach (which is not possible over http, for technological reasons). There are &quot;stateless&quot; and &quot;state full&quot; protocols in the sense that a state full protocol requires the server may need to keep track of client information, such as the current version of the document each client has in memory.<br /><br />An even simpler (and less satisfactory) approach is to given each client a token and invalidate diffs from all clients except the one with the token. This model is &quot;everyone can modify the data, but only one person can be modifying it at a given time&quot;.<br /><br />Etherpad is &quot;online&quot; in the sense that clients cannot disappear for weeks and then come back and submit diffs from days ago. This simplifies the problem significantly. However, the problem is complicated by real-time nature of Etherpad.<br /><br />For instance, HTML does not have server to client messages. Therefore it is difficult for the server to push changes to the client as changes occur to the document. HTML clients must poll, use long polling, flash or WebSockets.<br /><br />If the client is only polling once every 2 seconds, then all deltas will arrive in 2 second intervals and be applied in batches. Changes occur in lumps instead of in natural key-by-key sequences. One way to mitigate this is to time stamp deltas and replay them on the client. This makes typing appear nature and gives the illusion that the client is updating as the keys are coming in, even if the changes are only applied 2-4 seconds after the initial key press on the original client. Time stamped deltas also enable correction for variance in client-server latency.<br /><br />There are 4 operations an Etherpad type application is communicating from client to server are,<br /><br />1&gt; Add character<br />2&gt; Delete character<br />3&gt; Add Line of Characters<br />4&gt; Delete line of characters<br /><br />A challenge on the UI client side is keeping the scroll bar position constant as text is added/removed. This is more of a problem for longer documents (google docs) than it is for Etherpad, which tends to be used for shorter documents.<br /><br />Building an Etherpad type applications is not difficult, it is just very nuanced.<div class="action_bar" id="__w2_xDKA8Z8_answer_actions"><span id="ld_OtEogM_983"><a class="view_comments supp " href="#" id="__w2_oWb42kP_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_984"><a class="answer_permalink" href="/What-is-hard-about-making-something-like-EtherPad/answer/Brandon-Smietana"><span class="datetime" id="__w2_bOM16wa_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1070"></span></span></div><div id="ld_OtEogM_985"><div class="comments answer_comments hidden" id="__w2_EhdpxMZ_answer_comments"><div id="ld_OtEogM_1130"><span id="ld_OtEogM_1157"><div class="comment p0_5"><small><a class="light" href="/What-is-hard-about-making-something-like-EtherPad/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_870"><div class="feed_item stream_feed_item p1" id="__w2_k7n3Q29_item"><div class="e_col w4_5"><div id="ld_OtEogM_898"><div class="feed_item_question"><h2><span id="ld_OtEogM_931"><span id="ld_OtEogM_1098"></span><a class="question_link" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy" id="__w2_esgpyii_link"><span id="ld_OtEogM_1099"></span>In a two person team, should one person be in charge of the features and product strategy?</a></span></h2></div></div><div id="ld_OtEogM_899"><div class="feed_item_answer answer_text" id="__w2_d5WVFXY_answer"><div class="rating_buttons"><div id="__w2_d5WVFXY_answer_voting"><div id="ld_OtEogM_986"><div class="rating_buttons"><div class="rating_options" id="__w2_perjYqE_buttons"><a class="lil_button rate_up" href="#" id="__w2_perjYqE_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_perjYqE_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_d5WVFXY_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_d5WVFXY_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_N0ZeCbN_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_N0ZeCbN_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_N0ZeCbN_menu_contents"> </div></div></span><div id="__w2_d5WVFXY_answer_voters"><div id="ld_OtEogM_987"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">13</strong> votes</span> by <a class="user" href="/Michiel-van-Vlaardingen">Michiel van Vlaardingen</a>, <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Tony-Ross-Bowling">Tony Ross Bowling</a>, <a class="more_link" href="#" id="__w2_XqhDcKN_view_all_link">(more)</a></span></div></div></div><div id="ld_OtEogM_988"></div>This question is an attempt at groping for moral authority.<br /><br />MBA/Lawyer: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;<br /><br />&quot;It would streamline decision making if everyone would just do what I tell them instead of involving themselves with the product. Someone has to have a final say on the product.&quot;<br /><br />In many startups the &quot;business person&quot; tries to make all product decisions and expects the technical co-founder to just focus on building the product. For some reason, most companies structured like this seem to fail. Developers in this position are often micromanaged and nagged to death or alienated. Even if the company is successful at launching a product, or raising money, they have difficulty expanding the team and lack the core management team needed for expansion.<br /><br />Developers I have spoken to who have worked as technical cofounders with an autocratic technical cofounder often describe the experience as similar to working for a bad client. Successful team where the developer was not heavily involved with the product design and customer are rare.<br /><br />Different people have different leadership and communication styles.<br /><br />Some people are more democratic and will accept input from others and defer to their expertise. Other people have a more autocratic communication style and will insist upon making all the decisions in the organization.<br /><br />I believe that decisions in an organization should be made by the people with the 1&gt; information and 2&gt; expertise to best make then decision.<br /><br />Saying &quot;one person needs to be responsible&quot; or &quot;each person much have a well defined fiefdom&quot; is conceptually simple but sacrifices organizational performance for simplicity in organizational structure. Saying &quot;this person is responsible for marketing, and he is responsible for technology&quot; divides decision marketing by roles.<br /><br />As an example, a hypothetical modern internet marketing campaign might require twitter/facebook integration with a web application, analytics functionality measuring the effectiveness of the marketing technique and A/B testing to optimize the marketing technique. Is this marketing campaign &quot;responsibility&quot; of engineering or the responsibility of marketing? Achieving even simple corporate goals requires behavior and decision making which cut across firm boundaries and roles.<br /><br />&quot;Responsibilities&quot; and &quot;decision making authority&quot; in an effective organization are delegated on the basis by expertise and knowledge, rather than by functional roles.<br /><br />You have to ask<br />1&gt; Which person or group has the knowledge to best make this decision<br />2&gt; Who has the expertise to make this decision<br /><br />On matters of design, defer decisions to a designer.<br /><br />Often a decision cuts across functional boundaries. A product feature decision requires<br /><br />1&gt; An conceptualization of the customer/user<br />2&gt; Ability to estimate the engineering complexity of the feature<br />3&gt; A set of criteria against which to evaluate the decision being made (what are the goals of the organization? Increase LTV, customer acquisition, reducing churn rates, etc...<br /><br />The first is a product manager/ customer development role. The second is an engineering role. The third is an executive role. It is the role of the executive to set organizational goals and define the criteria against which decisions will be judged.<br /><br />Decisions will be best made when the expertise (product/company Independent) and knowledge (product/company specific) required to make the decision are possessed by a single person. In the absence of an ubermensch who has broad company/product specific knowledge and an extremely high level of skill/expertise in multiple domains, decisions will be made by groups.<br /><br />MBA: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;<div class="action_bar" id="__w2_d5WVFXY_answer_actions"><span id="ld_OtEogM_989"><a class="view_comments supp " href="#" id="__w2_y5pbKwV_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_990"><a class="answer_permalink" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/answer/Brandon-Smietana"><span class="datetime" id="__w2_vGR97CI_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1071"></span></span></div><div id="ld_OtEogM_991"><div class="comments answer_comments hidden" id="__w2_r5kfClG_answer_comments"><div id="ld_OtEogM_1131"><div id="ld_OtEogM_1158"><a name="comment276440"></a><div class="comment p0_5 br5 featured_comment" id="__w2_tIoYf1J_comment"><div class="comment_contents"><p class="comment_text">Also, one of these two people should be a paramedic or at least have first aid training because someone just got BURNED.</p><p class="action_bar"><a class="user" href="/Yishan-Wong">Yishan Wong</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_EeSEBKO_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1159"><div class="comment p0_5"><small><a class="light" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_871"><div class="feed_item stream_feed_item p1" id="__w2_CA7zBNy_item"><div class="e_col w4_5"><div id="ld_OtEogM_900"><div class="feed_item_question"><h2><span id="ld_OtEogM_932"><span id="ld_OtEogM_1100"></span><a class="question_link" href="/What-are-some-of-the-best-books-on-behavioral-investing" id="__w2_Z4sH8om_link"><span id="ld_OtEogM_1101"></span>What are some of the best books on behavioral investing?</a></span></h2></div></div><div id="ld_OtEogM_901"><div class="feed_item_answer answer_text" id="__w2_DT7ajdN_answer"><div class="rating_buttons"><div id="__w2_DT7ajdN_answer_voting"><div id="ld_OtEogM_992"><div class="rating_buttons"><div class="rating_options" id="__w2_cvRPiNo_buttons"><a class="lil_button rate_up" href="#" id="__w2_cvRPiNo_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_cvRPiNo_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_DT7ajdN_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_DT7ajdN_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_gmHQCiX_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_gmHQCiX_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_gmHQCiX_menu_contents"> </div></div></span><div id="__w2_DT7ajdN_answer_voters"><div id="ld_OtEogM_993"></div></div></div><div id="ld_OtEogM_994"></div>These books are deceptively titled, but are actually about behavior finance.<br /><br /><b>Inside the Investor&#039;s Brain: The Power of Mind Over Money</b> <a href="http://amzn.to/eNwqkV" rel="nofollow" target="_blank" class="external_link">http://amzn.to/eNwq<wbr />kV</a><br /><br /><b>MarketPsych: How to Manage Fear and Build Your Investor Identity </b><a href="http://amzn.to/hytSiB" rel="nofollow" target="_blank" class="external_link">http://amzn.to/h<wbr />ytSiB</a><div class="action_bar" id="__w2_DT7ajdN_answer_actions"><span id="ld_OtEogM_995"><a class="view_comments supp " href="#" id="__w2_QX5SPQQ_view_comment_link">4 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_996"><a class="answer_permalink" href="/What-are-some-of-the-best-books-on-behavioral-investing/answer/Brandon-Smietana"><span class="datetime" id="__w2_B6gpXm6_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1072"></span></span></div><div id="ld_OtEogM_997"><div class="comments answer_comments hidden" id="__w2_ZN6R8Jn_answer_comments"><div id="ld_OtEogM_1132"><div id="ld_OtEogM_1160"><a name="comment267015"></a><div class="comment p0_5 br5 featured_comment" id="__w2_qV5YBJU_comment"><div class="comment_contents"><p class="comment_text">Has anyone actually shown consistently higher returns using behavioral investing? Or in other words, is there evidence that &quot;predictable irrationality&quot; provides enough of an investing edge given all the other noise sources that might swamp it out?</p><p class="action_bar"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_ZdCt2lM_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1161"><a name="comment268421"></a><div class="comment p0_5 br5 featured_comment" id="__w2_TaUHAgA_comment"><div class="comment_contents"><p class="comment_text">I spoke to the guy who runs the Market Psych hedge fund and he said he was making a few dozen basis points a month per stock, using sentiment data.<br /><br />It definitely used extensively in HFT.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_ZDs0ZoE_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1162"><a name="comment268426"></a><div class="comment p0_5 br5 featured_comment" id="__w2_zyCZYQS_comment"><div class="comment_contents"><p class="comment_text">Personally, I believe that small cap stocks are more susceptible to news related price changes. However, I have not run any tests on this theory.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_kyq4yeg_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1163"><a name="comment280274"></a><div class="comment p0_5 br5 featured_comment" id="__w2_qhNBMYi_comment"><div class="comment_contents"><p class="comment_text">This answer appears to be primarily self-promotional. See <span class="qlink_container"><a href="/Why-are-answers-on-Quora-collapsed">Why are answers on Quora marked as Not Helpful?</a></span></p><p class="action_bar"><a class="user" href="/Marius-Kempe">Marius Kempe</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_kn5XeLF_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1164"><div class="comment p0_5"><small><a class="light" href="/What-are-some-of-the-best-books-on-behavioral-investing/all_comments/Brandon-Smietana">View All 4 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_872"><div class="feed_item stream_feed_item p1" id="__w2_yBRVfec_item"><div class="e_col w4_5"><div id="ld_OtEogM_902"><div class="feed_item_question"><h2><span id="ld_OtEogM_933"><span id="ld_OtEogM_1102"></span><a class="question_link" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market" id="__w2_S6ITgJx_link"><span id="ld_OtEogM_1103"></span>What are some good ways to get new angel investors into the market?</a></span></h2></div></div><div id="ld_OtEogM_903"><div class="feed_item_answer answer_text" id="__w2_MMvCQs0_answer"><div class="rating_buttons"><div id="__w2_MMvCQs0_answer_voting"><div id="ld_OtEogM_998"><div class="rating_buttons"><div class="rating_options" id="__w2_nQNN0P6_buttons"><a class="lil_button rate_up" href="#" id="__w2_nQNN0P6_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_nQNN0P6_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_MMvCQs0_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_MMvCQs0_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_RrzA6QR_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_RrzA6QR_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_RrzA6QR_menu_contents"> </div></div></span><div id="__w2_MMvCQs0_answer_voters"><div id="ld_OtEogM_999"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Mbwana-Alliy">Mbwana Alliy</a></span></div></div></div><div id="ld_OtEogM_1000"></div>I have seen studies suggesting that seed stage investments as an asset class have a 30% rate of return. <br /><br />However, most investors are not properly diversified enough. Many investors do not have enough cash to build a diversified angel portfolio. If you remove the 1-2 top returning companies in a 30 company portfolio, the rate of return goes to zero.<br /><br />Most investors are also suffer adverse selection and many of the prime companies are increasing going through groups like Angel List or are syndicated among a very small group of &#039;super angel&#039; investors.<br /><br />The best model I have seen, is for high profile investors or network hubs to receive cheap/free equity for allowing the companies to put that person&#039;s name on their advisor board. The people on the advisor board then try to push the company on angels in their network.<br /><br />This strategy seems to work very well for certain people, both in LA and in SV.<br /><br />&quot;Active Investors&quot; who can generate early customers for a company or who can recruit capital or employees are also in a position to extract cheap/free equity and build a diversified portfolio.<br /><br />In general, investing human capital is better for both the investor and the company and produces better returns to the investor than putting money in the company. The best way to create angel investors is to increase the opportunities for entrepreneurs to network with the wider community of companies and people.<div class="action_bar" id="__w2_MMvCQs0_answer_actions"><span id="ld_OtEogM_1001"><a class="view_comments supp " href="#" id="__w2_kr30mwT_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1002"><a class="answer_permalink" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market/answer/Brandon-Smietana"><span class="datetime" id="__w2_c8YerHs_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1073"></span></span></div><div id="ld_OtEogM_1003"><div class="comments answer_comments hidden" id="__w2_ihlJOAr_answer_comments"><div id="ld_OtEogM_1133"><span id="ld_OtEogM_1165"><div class="comment p0_5"><small><a class="light" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_873"><div class="feed_item stream_feed_item p1" id="__w2_xT0qj0Y_item"><div class="e_col w4_5"><div id="ld_OtEogM_904"><div class="feed_item_question"><h2><span id="ld_OtEogM_934"><span id="ld_OtEogM_1104"></span><a class="question_link" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating" id="__w2_F0nYeZD_link"><span id="ld_OtEogM_1105"></span>I believe that VC is for lesser men. Are my ideals self-defeating?</a></span></h2></div></div><div id="ld_OtEogM_905"><div class="feed_item_answer answer_text" id="__w2_wVftvfm_answer"><div class="rating_buttons"><div id="__w2_wVftvfm_answer_voting"><div id="ld_OtEogM_1004"><div class="rating_buttons"><div class="rating_options" id="__w2_x95H2uW_buttons"><a class="lil_button rate_up" href="#" id="__w2_x95H2uW_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_x95H2uW_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_wVftvfm_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_wVftvfm_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_JUuQWqU_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_JUuQWqU_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_JUuQWqU_menu_contents"> </div></div></span><div id="__w2_wVftvfm_answer_voters"><div id="ld_OtEogM_1005"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Hunter-Peress">Hunter Peress</a></span></div></div></div><div id="ld_OtEogM_1006"></div>The majority of successful companies do not receive any VC funding. Less than 10% of companies that IPO took on early stage private equity. Approximately 70% of companies that IPO took on private equity investment at some point (mostly in late stage &#039;growth private equity&#039;).<br /><br />Walmart was in a highly capital intensive industry with low margins and never required venture capital. For profitable companies with positive cash flows, bank loans may have a lower cost of capital compared to selling equity.<br /><br />Early stage venture capital is a &quot;Silicon Valley&quot; thing and most successful entrepreneurs build their companies without VCs.<br /><br />By the time your company has enough customers to have easy access to venture capital, most companies will not need it anymore. If you are in an industry like software, which low has capital costs and 100% margins, then VC may not be appropriate for you.<br /><br />Most successful companies do not achieve the scale required to return liquidity to their investors and therefore venture capital is not appropriate for the majority of entrepreneurs and their companies. Building a 15 million dollar a year consulting company that throws of a few million a year in profits is great for the founder, but not an appropriate target for VC investment.<br /><br />In some industries, building out the sales distribution channel is more expensive than building the product and VC may be appropriate.<br /><br />In general, people are too willing to take on outside investment, even if they do not need it and have no use for it. I spoke with a social game CEO who has a profitable flash games company. He had VC money shoved down his throat. He said &quot;I dont regret taking VC, but I regret spending the money.&quot;<br /><br />I would recommend reading,<br /><br /><b>Raising Venture Capital for the Serious Entrepreneur </b><a href="http://amzn.to/hPdFp0" rel="nofollow" target="_blank" class="external_link">http://amzn.<wbr />to/hPdFp0</a><br /><br />Do not let anyone in Silicon Valley tell you that you are not a real company if you do not take on venture capital. VC funded companies make the news and people gossip about valuations. However, for every successful venture backed company there are three dozen &quot;quietly profitable&quot; companies.<div class="action_bar" id="__w2_wVftvfm_answer_actions"><span id="ld_OtEogM_1007"><a class="view_comments supp " href="#" id="__w2_oYzLR6F_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1008"><a class="answer_permalink" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating/answer/Brandon-Smietana"><span class="datetime" id="__w2_NMGXrpL_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1074"></span></span></div><div id="ld_OtEogM_1009"><div class="comments answer_comments hidden" id="__w2_JwFE9Ag_answer_comments"><div id="ld_OtEogM_1134"><span id="ld_OtEogM_1166"><div class="comment p0_5"><small><a class="light" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_874"><div class="feed_item stream_feed_item p1" id="__w2_mgvV32L_item"><div class="e_col w4_5"><div id="ld_OtEogM_906"><div class="feed_item_question"><h2><span id="ld_OtEogM_935"><span id="ld_OtEogM_1106"></span><a class="question_link" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks" id="__w2_SHYTW6N_link"><span id="ld_OtEogM_1107"></span>Why would Palantir go after WikiLeaks?</a></span></h2></div></div><div id="ld_OtEogM_907"><div class="feed_item_answer answer_text" id="__w2_xgtUJmV_answer"><div class="rating_buttons"><div id="__w2_xgtUJmV_answer_voting"><div id="ld_OtEogM_1010"><div class="rating_buttons"><div class="rating_options" id="__w2_oIiZlmF_buttons"><a class="lil_button rate_up" href="#" id="__w2_oIiZlmF_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_oIiZlmF_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_xgtUJmV_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_xgtUJmV_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_cxvgIrm_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_cxvgIrm_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_cxvgIrm_menu_contents"> </div></div></span><div id="__w2_xgtUJmV_answer_voters"><div id="ld_OtEogM_1011"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">13</strong> votes</span> by <a class="user" href="/Craig-Montuori">Craig Montuori</a>, <a class="user" href="/Ryan-Borek">Ryan Borek</a>, <a class="user" href="/Cinders-Holmes">Cinders Holmes</a>, <a class="more_link" href="#" id="__w2_egWMGn0_view_all_link">(more)</a></span></div></div></div><div id="ld_OtEogM_1012"></div>This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br /><br /><b>&quot;You have to respond to Wikileaks immediately, by giving us massive amounts of money for our software and consulting services. You cannot wait to write us a massive blank check, because the threat of Wikileaks is too great.&quot;<br /></b><br />Palantir&#039;s management would have to be incompetent to not try to capitalize on Wikileaks.<br /><br />More disturbing than Palantir&#039;s actions, is that the slides suggest that the US government should use Palantir&#039;s software to identify and threaten the job security of civilians, on the basis of which political organizations or ideologies they support.<div class="action_bar" id="__w2_xgtUJmV_answer_actions"><span id="ld_OtEogM_1013"><a class="view_comments supp " href="#" id="__w2_oqdIoSR_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1014"><a class="answer_permalink" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/answer/Brandon-Smietana"><span class="datetime" id="__w2_AzKP0ti_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1075"></span></span></div><div id="ld_OtEogM_1015"><div class="comments answer_comments hidden" id="__w2_SPw9T1j_answer_comments"><div id="ld_OtEogM_1135"><div id="ld_OtEogM_1167"><a name="comment249980"></a><div class="comment p0_5 br5 featured_comment" id="__w2_m97fZXq_comment"><div class="comment_contents"><p class="comment_text">&quot;We&#039;ll spend our way out of this recession&quot; and what&#039;s a better expenditure than a fighting a political enemy?</p><p class="action_bar"><a class="user" href="/Yaniv-Goldenrand">Yaniv Goldenrand</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CEexKIr_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1168"><div class="comment p0_5"><small><a class="light" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_875"><div class="feed_item stream_feed_item p1" id="__w2_ILqnToj_item"><div class="e_col w4_5"><div id="ld_OtEogM_908"><div class="feed_item_question"><h2><span id="ld_OtEogM_936"><span id="ld_OtEogM_1108"></span><a class="question_link" href="/How-does-having-a-big-ego-correlate-with-success" id="__w2_GHjofrd_link"><span id="ld_OtEogM_1109"></span>How does having a big ego correlate with success?</a></span></h2></div></div><div id="ld_OtEogM_909"><div class="feed_item_answer answer_text" id="__w2_PLeOBQh_answer"><div class="rating_buttons"><div id="__w2_PLeOBQh_answer_voting"><div id="ld_OtEogM_1016"><div class="rating_buttons"><div class="rating_options" id="__w2_cQydKLQ_buttons"><a class="lil_button rate_up" href="#" id="__w2_cQydKLQ_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_cQydKLQ_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_PLeOBQh_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_PLeOBQh_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_KfJEoxk_link"><span class="rep" id="__w2_KfJEoxk_sig">I was standing right next to Ste...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_KfJEoxk_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_KfJEoxk_menu_contents"> </div></div></span><div id="__w2_PLeOBQh_answer_voters"><div id="ld_OtEogM_1017"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Seb-Paquet">Seb Paquet</a>, <a class="user" href="/Joey-Flores">Joey Flores</a> and <a class="user" href="/Murtaza-Ali-Akbar">Murtaza Ali Akbar</a></span></div></div></div><div id="ld_OtEogM_1018"></div>Arrogance is a critical factor for career success in many industries.<br /><br />Most people tell themselves &quot;I dont know if I can do this&quot; and they never try. Others have the arrogance to attempt things that they have not tried before.<br /><br />Building a history of success, without prior success requires an uncommon level of self-efficacy.<div class="action_bar" id="__w2_PLeOBQh_answer_actions"><span id="ld_OtEogM_1019"><a class="view_comments supp " href="#" id="__w2_IDzWvth_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1020"><a class="answer_permalink" href="/How-does-having-a-big-ego-correlate-with-success/answer/Brandon-Smietana"><span class="datetime" id="__w2_Pff2J7Y_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1076"></span></span></div><div id="ld_OtEogM_1021"><div class="comments answer_comments hidden" id="__w2_Wk2irPO_answer_comments"><div id="ld_OtEogM_1136"><div id="ld_OtEogM_1169"><a name="comment265369"></a><div class="comment p0_5 br5 featured_comment" id="__w2_vdw6H2d_comment"><div class="comment_contents"><p class="comment_text">Don&#039;t confuse arrogance with confidence.</p><p class="action_bar"><a class="user" href="/Justin-Maxwell">Justin Maxwell</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_T6hUJS1_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1170"><a name="comment265672"></a><div class="comment p0_5 br5 featured_comment" id="__w2_RH6dxZN_comment"><div class="comment_contents"><p class="comment_text">What you call confidence, other will call arrogance.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_xgZtuQY_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1171"><div class="comment p0_5"><small><a class="light" href="/How-does-having-a-big-ego-correlate-with-success/all_comments/Brandon-Smietana">View All 2 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_876"><div class="feed_item stream_feed_item p1" id="__w2_P4UGy7p_item"><div class="e_col w4_5"><div id="ld_OtEogM_910"><div class="feed_item_question"><h2><span id="ld_OtEogM_937"><span id="ld_OtEogM_1110"></span><a class="question_link" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy" id="__w2_sALuG5g_link"><span id="ld_OtEogM_1111"></span>If you had to teach yourself math from basic algebra to high level mathematics, what would be your strategy?</a></span></h2></div></div><div id="ld_OtEogM_911"><div class="feed_item_answer answer_text" id="__w2_dCN4SYF_answer"><div class="rating_buttons"><div id="__w2_dCN4SYF_answer_voting"><div id="ld_OtEogM_1022"><div class="rating_buttons"><div class="rating_options" id="__w2_HViBBYR_buttons"><a class="lil_button rate_up" href="#" id="__w2_HViBBYR_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_HViBBYR_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_dCN4SYF_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_dCN4SYF_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_FGMP0Ot_link"><span class="rep" id="__w2_FGMP0Ot_sig">Hilbert Spaces, Differential Geo...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_FGMP0Ot_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_FGMP0Ot_menu_contents"> </div></div></span><div id="__w2_dCN4SYF_answer_voters"><div id="ld_OtEogM_1023"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Bob-Hancock">Bob Hancock</a></span></div></div></div><div id="ld_OtEogM_1024"></div>For pure mathematics I would start with:<br /><br /><b>Mathematics: Its Content, Methods and Meaning</b> by Kolmogorov <a href="http://amzn.to/bZJ1gk" rel="nofollow" target="_blank" class="external_link">http://amzn<wbr />.to/bZJ1gk</a><br /><br /><b>The Skeleton Key of Mathematics </b><a href="http://amzn.to/e7mHe3" rel="nofollow" target="_blank" class="external_link">http://amzn.to/e7mHe3</a><br /><br />For exciting and useful applied mathematics at a basic level start reading David G. Luenbergers&#039;s books.  Particularly,<br /><br /><b>Investment Science</b>  <a href="http://amzn.to/9D2JWz" rel="nofollow" target="_blank" class="external_link">http://amzn.to/9D2JWz</a><br /><br /><b>Information Science</b> <a href="http://amzn.to/ebaxrX" rel="nofollow" target="_blank" class="external_link">http://amzn.to/eb<wbr />axrX</a><br /><br />Investment Science and Information Science are two of my favorite mathematics related books. They have also been the most useful to me.<div class="action_bar" id="__w2_dCN4SYF_answer_actions"><span id="ld_OtEogM_1025"><a class="view_comments supp " href="#" id="__w2_hAHspzE_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1026"><a class="answer_permalink" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy/answer/Brandon-Smietana"><span class="datetime" id="__w2_fvjulgq_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1077"></span></span></div><div id="ld_OtEogM_1027"><div class="comments answer_comments hidden" id="__w2_PJ1mI4d_answer_comments"><div id="ld_OtEogM_1137"><span id="ld_OtEogM_1172"><div class="comment p0_5"><small><a class="light" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_877"><div class="feed_item stream_feed_item p1" id="__w2_tzUDRct_item"><div class="e_col w4_5"><div id="ld_OtEogM_912"><div class="feed_item_question"><h2><span id="ld_OtEogM_938"><span id="ld_OtEogM_1112"></span><a class="question_link" href="/Why-get-a-409A-valuation" id="__w2_GbN4b0T_link"><span id="ld_OtEogM_1113"></span>Why get a 409A valuation? </a></span></h2></div></div><div id="ld_OtEogM_913"><div class="feed_item_answer answer_text" id="__w2_ShH6yTC_answer"><div class="rating_buttons"><div id="__w2_ShH6yTC_answer_voting"><div id="ld_OtEogM_1028"><div class="rating_buttons"><div class="rating_options" id="__w2_QYIY9um_buttons"><a class="lil_button rate_up" href="#" id="__w2_QYIY9um_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_QYIY9um_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_ShH6yTC_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_ShH6yTC_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_ENuytYY_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_ENuytYY_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_ENuytYY_menu_contents"> </div></div></span><div id="__w2_ShH6yTC_answer_voters"><div id="ld_OtEogM_1029"></div></div></div><div id="ld_OtEogM_1030"></div>To avoid being taxed at 90% as a tax penalties for under-pricing the strike price of employee stock options.<br /><br />The federal government will take 20% penalty tax on stock grants if they were under-priced. CA will take another 20%.<br /><br />Today most startups are issuing restricted stock to avoid 409A.<div class="action_bar" id="__w2_ShH6yTC_answer_actions"><span id="ld_OtEogM_1031"><a class="view_comments supp " href="#" id="__w2_skjNjWA_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1032"><a class="answer_permalink" href="/Why-get-a-409A-valuation/answer/Brandon-Smietana"><span class="datetime" id="__w2_QCnt2GN_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1078"></span></span></div><div id="ld_OtEogM_1033"><div class="comments answer_comments hidden" id="__w2_aOhhOWQ_answer_comments"><div id="ld_OtEogM_1138"><span id="ld_OtEogM_1173"><div class="comment p0_5"><small><a class="light" href="/Why-get-a-409A-valuation/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_878"><div class="feed_item stream_feed_item p1" id="__w2_HCGWvbm_item"><div class="e_col w4_5"><div id="ld_OtEogM_914"><div class="feed_item_question"><h2><span id="ld_OtEogM_939"><span id="ld_OtEogM_1114"></span><a class="question_link" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for" id="__w2_seWzl74_link"><span id="ld_OtEogM_1115"></span>What kinds of &#039;defensibility&#039; of a business model are most VC&#039;s/investors looking for?</a></span></h2></div></div><div id="ld_OtEogM_915"><div class="feed_item_answer answer_text" id="__w2_uI975s2_answer"><div class="rating_buttons"><div id="__w2_uI975s2_answer_voting"><div id="ld_OtEogM_1034"><div class="rating_buttons"><div class="rating_options" id="__w2_Xc1mS0P_buttons"><a class="lil_button rate_up" href="#" id="__w2_Xc1mS0P_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_Xc1mS0P_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_uI975s2_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_uI975s2_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_aTMYd3m_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_aTMYd3m_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_aTMYd3m_menu_contents"> </div></div></span><div id="__w2_uI975s2_answer_voters"><div id="ld_OtEogM_1035"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Erbil-Karaman">Erbil Karaman</a></span></div></div></div><div id="ld_OtEogM_1036"></div>For most kinds of businesses, defensibility is illusionary. Investors are looking for the illusionary kind of defensibility that looks good on paper, but which exists for only a very small number of real businesses.<br /><br />Patents are almost worthless for protection. They are good for retaliation against patent lawsuits by competition and for extracting licensing fees. Five years from now, when your patent is granted, your company will be successful or it will be dead. However, some investors like patents, while other investors feel that they are worthless or irrelevant. Patents in material science are useful, patents in software are worthless. <br /><br />Defensibility and investor expectations for defensibility are highly market dependent.<div class="action_bar" id="__w2_uI975s2_answer_actions"><span id="ld_OtEogM_1037"><a class="view_comments supp " href="#" id="__w2_fbB70D6_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1038"><a class="answer_permalink" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for/answer/Brandon-Smietana"><span class="datetime" id="__w2_nQKiFNZ_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1079"></span></span></div><div id="ld_OtEogM_1039"><div class="comments answer_comments hidden" id="__w2_qI84X2d_answer_comments"><div id="ld_OtEogM_1139"><span id="ld_OtEogM_1174"><div class="comment p0_5"><small><a class="light" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_879"><div class="feed_item stream_feed_item p1" id="__w2_YDBuS29_item"><div class="e_col w4_5"><div id="ld_OtEogM_916"><div class="feed_item_question"><h2><span id="ld_OtEogM_940"><span id="ld_OtEogM_1116"></span><a class="question_link" href="/Will-Dave-Morins-slow-product-movement-be-successful" id="__w2_c8g7iZa_link"><span id="ld_OtEogM_1117"></span>Will Dave Morin&#039;s &quot;slow product&quot; movement be successful?</a></span></h2></div></div><div id="ld_OtEogM_917"><div class="feed_item_answer answer_text" id="__w2_ztTABx8_answer"><div class="rating_buttons"><div id="__w2_ztTABx8_answer_voting"><div id="ld_OtEogM_1040"><div class="rating_buttons"><div class="rating_options" id="__w2_tsF7Ba4_buttons"><a class="lil_button rate_up" href="#" id="__w2_tsF7Ba4_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_tsF7Ba4_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_ztTABx8_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_ztTABx8_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_fqO5ao1_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_fqO5ao1_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_fqO5ao1_menu_contents"> </div></div></span><div id="__w2_ztTABx8_answer_voters"><div id="ld_OtEogM_1041"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a> and <a class="user" href="/Bob-Scirpo">Bob Scirpo</a></span></div></div></div><div id="ld_OtEogM_1042"></div>Slow is great, but only if you have revenues. If you are an iphone photosharing application; then slow means you can only survive for as long as venture capitalists are willing to pump more money into the company.<br /><br />Even if the company exits at $250 million in ten years, the liquidation preferences for the preferred will be piled so high that there will be nothing left for the employees and management (like Slide).<br /><br />Digg had 15 million a year in revenue at peak, but have never been profitable. Then traffic fell by 50% after the user numbers peaked.<br /><br />A &quot;slow&quot; company can make money for the founders, but only if they achieve a high valuation and sell off common stock to investors (etc. &quot;take money off the table&quot;). Otherwise the only way a company without revenues can generate returns for its investors is if it is flipped.<br /><br />A &quot;slow company&quot; does not make sense if backed by venture capital, because the fund partners need to show returns to their LPs within a 15 year period. If the company does a secondary sale and early investors sell their stake to new investors, then maybe a &quot;slow company&quot; could exist.<br /><br />As an investment, I am not sure that a &quot;slow company&quot; makes any sense.<br /><br />By &quot;slow company&quot;, what they mean is &quot;We will build a bunch of crap and something will be successful eventually&quot;. The idea of a &quot;slow company&quot; is probably just a way of putting off pressure to show revenues and traction early in the company&#039;s history.<br /><br />Many successful companies (Paypal, Slide, etc...) were started by entrepreneurs who had no idea what they were doing and who changed markets and products several times.<br /><br />If the private equity bubble pops again, the &quot;slow companies&quot; without revenues are going to be the ones who are hit the hardest.<div class="action_bar" id="__w2_ztTABx8_answer_actions"><span id="ld_OtEogM_1043"><a class="view_comments supp " href="#" id="__w2_x97yX8g_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1044"><a class="answer_permalink" href="/Will-Dave-Morins-slow-product-movement-be-successful/answer/Brandon-Smietana"><span class="datetime" id="__w2_a6ND1aH_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1080"></span></span></div><div id="ld_OtEogM_1045"><div class="comments answer_comments hidden" id="__w2_rqYyPms_answer_comments"><div id="ld_OtEogM_1140"><span id="ld_OtEogM_1175"><div class="comment p0_5"><small><a class="light" href="/Will-Dave-Morins-slow-product-movement-be-successful/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_880"><div class="feed_item stream_feed_item p1" id="__w2_PLJONeU_item"><div class="e_col w4_5"><div id="ld_OtEogM_918"><div class="feed_item_question"><h2><span id="ld_OtEogM_941"><span id="ld_OtEogM_1118"></span><a class="question_link" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers" id="__w2_FYKwyMV_link"><span id="ld_OtEogM_1119"></span>If you are an investor for an early stage company, do you place more value on 1MM unique visitor or the ability to convert at 5%+ but only 1000 customers?</a></span></h2></div></div><div id="ld_OtEogM_919"><div class="feed_item_answer answer_text" id="__w2_ubEQFko_answer"><div class="rating_buttons"><div id="__w2_ubEQFko_answer_voting"><div id="ld_OtEogM_1046"><div class="rating_buttons"><div class="rating_options" id="__w2_Vi0GFbo_buttons"><a class="lil_button rate_up" href="#" id="__w2_Vi0GFbo_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_Vi0GFbo_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_ubEQFko_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_ubEQFko_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_eXvwPac_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_eXvwPac_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_eXvwPac_menu_contents"> </div></div></span><div id="__w2_ubEQFko_answer_voters"><div id="ld_OtEogM_1047"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a> and <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a></span></div></div></div><div id="ld_OtEogM_1048"></div>If you can monetize, then you can reinvest revenues into customer acquisition through search and display advertising. As soon as you can get your cost per customer acquisition below the LTV of your users, you can scale up through display advertising and search advertising channels.<br /><br />Having a repeatable customer acquisition process is more important than the total number of users. Having a CAC below your LTV shows your investors that you have something to spend money on.<br /><br />If you cannot monetize (ex. Twitter), then having a large number of users is the only alternative.<br /><br />If you can convert users, the next thing you want to do is to try different user acquisition channels and determine what is effective for your business. It is more difficult to acquire users profitably at scale without revenues to reinvest into customer acquisition channels.<br /><br />I do not believe that the answer is one or the other. It depends on your customer acquisition channels and depends on whether your channel is SEO or display advertising. Conversion rates do not matter as much for SEO traffic, which is effectively free; where as conversion rates are critical to optimize if your traffic is display or search advertising driven, because increases conversion rates will lower you CAC.<br /><br />Improving your product will improve churn rates.<br />Decreasing churn rates will increase LTV for subscription service<br />Improving your conversion rates will improve (decrease) your CAC<br /><br />What matter is not &quot;conversion rates&quot; or &quot;number of users&quot;, but &quot;number of new users times conversion rate&quot;, because that is the rate of user-base growth. You can either improve the conversion rate or you can improve the number of user coming into customer acquisition channel, but the rate of user growth will be the arithmetic product of those two variables.<div class="action_bar" id="__w2_ubEQFko_answer_actions"><span id="ld_OtEogM_1049"><a class="view_comments supp " href="#" id="__w2_x6SjsBs_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1050"><a class="answer_permalink" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers/answer/Brandon-Smietana"><span class="datetime" id="__w2_ICRXDz8_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1081"></span></span></div><div id="ld_OtEogM_1051"><div class="comments answer_comments hidden" id="__w2_nqlg7GQ_answer_comments"><div id="ld_OtEogM_1141"><span id="ld_OtEogM_1176"><div class="comment p0_5"><small><a class="light" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_881"><div class="feed_item stream_feed_item p1" id="__w2_rYHJzQi_item"><div class="e_col w4_5"><div id="ld_OtEogM_920"><div class="feed_item_question"><h2><span id="ld_OtEogM_942"><span id="ld_OtEogM_1120"></span><a class="question_link" href="/How-do-I-create-a-social-life-after-college-that-rivals-or-is-better-than-the-average-college-social-life" id="__w2_xVDosFe_link"><span id="ld_OtEogM_1121"></span>How do I create a social life after college that rivals or is better than the average college social life?</a></span></h2></div></div><div id="ld_OtEogM_921"><div class="feed_item_answer answer_text" id="__w2_CwLood7_answer"><div class="rating_buttons"><div id="__w2_CwLood7_answer_voting"><div id="ld_OtEogM_1052"><div class="rating_buttons"><div class="rating_options" id="__w2_zBYCAHh_buttons"><a class="lil_button rate_up" href="#" id="__w2_zBYCAHh_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_zBYCAHh_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_CwLood7_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_CwLood7_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_K4bPeYH_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_K4bPeYH_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_K4bPeYH_menu_contents"> </div></div></span><div id="__w2_CwLood7_answer_voters"><div id="ld_OtEogM_1053"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">7</strong> votes</span> by <span id="__w2_RPRimMq_view_all"><a class="user" href="/Aaron-Chiu">Aaron Chiu</a>, <a class="user" href="/Ian-Peters-Campbell">Ian Peters-Campbell</a>, <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a>, </span> <a class="more_link" href="#" id="__w2_RPRimMq_view_all_link">(more)</a><span class="hidden" id="__w2_RPRimMq_all_phrases"><a class="user" href="/Aaron-Chiu">Aaron Chiu</a>, <a class="user" href="/Ian-Peters-Campbell">Ian Peters-Campbell</a>, <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a>, <a class="user" href="/Alistair-Atkinson">Alistair Atkinson</a>, <a class="user" href="/Surya-Yalamanchili">Surya Yalamanchili</a>, <a class="user" href="/Kavin-Kankeshwar">Kavin Kankeshwar</a> and <a class="user" href="/Leon-Kitain">Leon Kitain</a></span></span></div></div></div><div id="ld_OtEogM_1054"></div>1&gt; Get money. Work 80 hours a week, sacrifice your life, build a company, sell it for enough money that you can live comfortably.<br /><br />2&gt; Move to LA<br /><br />3&gt; Join the Karma Foundation. <a href="http://thekarmafoundation.com/" rel="nofollow" target="_blank" class="external_link">http://thekarmafoundation<wbr />.com/</a><br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-87642727d03a0818e648813c31cdb4ee" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-7befcfd5eed92a6fad6da541853020d7" master_w="570" master_h="380" /><br />I spent eight years of my life in the library during and before high school, reading sociology, psychology, cognitive science, physics, computer science books and biographies. Then in college I spent three years in the library studying computational chemistry, machine learning and mathematics (which is why my twitter handle is RKHilbertSpace :).<br /><br />Then after college, I worked &quot;investment banker hours&quot; bootstrapping my startup, until my hair line was receding from the stress. I did not have much of a &#039;social life&#039; and all my relationships were business related. I did not have time for people that could not help me achieve my goals. By the end I had very few people that I talked to daily and who I enjoyed being around.<br /><br />I have not sold my companies yet, but after I moved to LA from NY I started meeting people who have sold their companies and they are much more relaxed and happier than I am.<br /><br />I told someone I wanted a G5 eventually, but that right now I am only trying to build a 15m/year business and that later in life, when I am more experienced and have more resources that I wanted take on more risk. He told me &quot;As you get older, you will find that other things become more important than owning a jet. You will find that time becomes more valuable. For instance travel has become much more important to me.&quot; I responded, &quot;Yes, when I sell my company, I hope that I do not become too lazy to go after the jet.&quot; and we both laughed.<br /><br />I am learning that having a good social life means being around people with common goals, aspirations and values.<br /><br />I am realizing that most people have nothing in common with me and that I do not enjoy being around them. Most people wake up, goto work and come home to watch television. They &quot;rank with those poor spirits who neither enjoy nor suffer much, because they live in a gray twilight that knows not victory nor defeat.&quot;<br /><br />Having goals and people around me to aspire to those goals with, has improved my social life more than anything else.  Being successful and having other people to enjoy that success with is the most important thing.<div class="action_bar" id="__w2_CwLood7_answer_actions"><span id="ld_OtEogM_1055"><a class="view_comments supp " href="#" id="__w2_FWqAe72_view_comment_link">5 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1056"><a class="answer_permalink" href="/How-do-I-create-a-social-life-after-college-that-rivals-or-is-better-than-the-average-college-social-life/answer/Brandon-Smietana"><span class="datetime" id="__w2_THIwOdY_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1082"></span></span></div><div id="ld_OtEogM_1057"><div class="comments answer_comments hidden" id="__w2_mAbwLx6_answer_comments"><div id="ld_OtEogM_1142"><div id="ld_OtEogM_1177"><a name="comment218364"></a><div class="comment p0_5 br5 featured_comment" id="__w2_oQAgeoJ_comment"><div class="comment_contents"><p class="comment_text">Brandon, you rock.</p><p class="action_bar"><a class="user" href="/Adam-Rifkin">Adam Rifkin</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_KsfiPCC_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1178"><a name="comment218586"></a><div class="comment p0_5 br5 featured_comment" id="__w2_oVovJSx_comment"><div class="comment_contents"><p class="comment_text">Sky father! <br /><br />There are simpler ways to hang out with skanky ladies.</p><p class="action_bar"><a class="user" href="/Thomas-Hartman">Thomas Hartman</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_E9Te4iS_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1179"><a name="comment218639"></a><div class="comment p0_5 br5 featured_comment" id="__w2_qmMsCoS_comment"><div class="comment_contents"><p class="comment_text">Thomas, I know you love to dance, but expensive dancing classes only solve the lead generation problem.<br /><br />Having lots of money solves the dating problem on the demand size. It is the fastest way to increase your conversion rates and fatten your user acquisition funnel.<br /><br />I have A/B tested this one.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_mA7M09p_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1180"><a name="comment218655"></a><div class="comment p0_5 br5 featured_comment" id="__w2_lcHABaR_comment"><div class="comment_contents"><p class="comment_text">I&#039;ll see you at lindy groove yet, you disturbing person.</p><p class="action_bar"><a class="user" href="/Thomas-Hartman">Thomas Hartman</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_NfczlHW_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_OtEogM_1181"><a name="comment218682"></a><div class="comment p0_5 br5 featured_comment" id="__w2_hklfEHg_comment"><div class="comment_contents"><p class="comment_text"><a href="http://www.google.com/#sclient=psy&amp;hl=en&amp;q=%22now+you+have+two+problems%22&amp;aq=f&amp;aqi=g-v2g-o1&amp;aql=f&amp;oq=&amp;pbx=1&amp;fp=d87fcfdb2e6b7745" rel="nofollow" target="_blank" class="external_link">http://www.google.com/#sc<wbr />lient=p...</a></p><p class="action_bar"><a class="user" href="/Thomas-Hartman">Thomas Hartman</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_x8yKFrl_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_OtEogM_1182"><div class="comment p0_5"><small><a class="light" href="/How-do-I-create-a-social-life-after-college-that-rivals-or-is-better-than-the-average-college-social-life/all_comments/Brandon-Smietana">View All 5 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_OtEogM_882"><div class="feed_item stream_feed_item p1" id="__w2_AAf6jqC_item"><div class="e_col w4_5"><div id="ld_OtEogM_922"><div class="feed_item_question"><h2><span id="ld_OtEogM_943"><span id="ld_OtEogM_1122"></span><a class="question_link" href="/How-long-before-we-see-a-social-game-engine-written-entirely-in-HTML-5-and-JavaScript" id="__w2_ygVe3px_link"><span id="ld_OtEogM_1123"></span>How long before we see a social game engine written entirely in HTML 5 and JavaScript?</a></span></h2></div></div><div id="ld_OtEogM_923"><div class="feed_item_answer answer_text" id="__w2_uMolO3k_answer"><div class="rating_buttons"><div id="__w2_uMolO3k_answer_voting"><div id="ld_OtEogM_1058"><div class="rating_buttons"><div class="rating_options" id="__w2_TcdfcdP_buttons"><a class="lil_button rate_up" href="#" id="__w2_TcdfcdP_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_TcdfcdP_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_uMolO3k_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_uMolO3k_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_nTqxlxt_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_nTqxlxt_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_nTqxlxt_menu_contents"> </div></div></span><div id="__w2_uMolO3k_answer_voters"><div id="ld_OtEogM_1059"></div></div></div><div id="ld_OtEogM_1060"></div>HTML5 game engine companies are being flipped in M&amp;A transactions left and right.<br /><br />E3 2010 Aves Engine Prototype &quot;Suburban World&quot; - all HTML, CSS and JavaScript<br /><br /><a href="http://www.youtube.com/watch?v=SmtQOB_KFzU" rel="nofollow" target="_blank" class="external_link">http://www.youtube.com/wa<wbr />tch?v=S...</a><br /><br />This company was Dextrose and was recently acquired by Zynga.<div class="action_bar" id="__w2_uMolO3k_answer_actions"><span id="ld_OtEogM_1061"><a class="view_comments supp " href="#" id="__w2_tKcOH9I_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_OtEogM_1062"><a class="answer_permalink" href="/How-long-before-we-see-a-social-game-engine-written-entirely-in-HTML-5-and-JavaScript/answer/Brandon-Smietana"><span class="datetime" id="__w2_mFbt3nq_datespan">Insert a dynamic date here</span></a><span id="ld_OtEogM_1083"></span></span></div><div id="ld_OtEogM_1063"><div class="comments answer_comments hidden" id="__w2_MZS7g4f_answer_comments"><div id="ld_OtEogM_1143"><span id="ld_OtEogM_1183"><div class="comment p0_5"><small><a class="light" href="/How-long-before-we-see-a-social-game-engine-written-entirely-in-HTML-5-and-JavaScript/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div id="ld_OtEogM_883"><div class="hidden" id="__w2_XAvHN69_loading"><span class="__wn2_loading"><span class="__wn2_loading_spinner"></span><span class="__wn2_loading_text">Loading...</span></span></div><div class="pager_next action_button" id="__w2_XAvHN69_more">More</div></div></div></div></div><div class="e_col w2_5 side_col"><div class="row"><div class="e_col w1 p1"><div id="ld_OtEogM_843"><div class="profile_photo"><div id="ld_OtEogM_846"><a href="/Brandon-Smietana"><img class="profile_photo_img" src="http://d2o7bfz2il9cb7.cloudfront.net/main-thumb-6673-100-iQY07uHy4EIxliIOKB2oVtdnn7FsdmZc.jpeg" width="100" alt="Brandon Smietana" height="100" /></a></div></div></div></div><div class="e_col w1_5 side_col p1"><div class="light page_opts row"><div id="ld_OtEogM_844"><ul class="action_list"></ul></div></div></div><div id="ld_OtEogM_845"><div class="row p1"><div class="col mini_count first"><a href="/Brandon-Smietana/followers"><strong>781</strong><br />Followers</a></div><div class="col mini_count "><a href="/Brandon-Smietana/following"><strong>363</strong><br />Following</a></div><div class="col mini_count "><a href="/Brandon-Smietana/mentions"><strong>34</strong><br />@Mentions</a></div></div></div></div><div id="ld_OtEogM_841"><div class="row section p1" id="answers"><strong>Recent Top Answers</strong><div id="ld_OtEogM_848"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">56</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/answer/Brandon-Smietana">If I haven&#039;t succeeded in my mid 20s, could I be successful in the rest of my life?</a></h2></div><div class="inline" id="__w2_vr3Z8Ec_truncated"><div id="ld_OtEogM_853"><div class="truncated_thumbnail_holder"></div>Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br />... <a class="more_link" href="#" id="__w2_uCCLSSm_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_vr3Z8Ec_expanded"><div id="ld_OtEogM_854">Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br /><br />Many entrepreneurs do not achieve an exit until they are in mid thirties to late forties.The percentage of people who succeed before they are 35 is very low. People in their early thirties tend to be on their third or fourth company and still have not achieved an exit yet.<br /><br />Also, many people who &quot;Succeed&quot; early on seem to spend all their money and are not successful at 30. Many people have flipped web-applications for 1 to 3 million in their early 20s and most of them do not know how to invest. Many people live above their level of income and end up spending the money by the time they are 30. The natural tendency of most Americans is towards debt (negative savings rate).<br /><br />Most of the people I have met who were successful in their 20s, were unsuccessful by the time they were in their thirties. This may constitute the majority of people who are &quot;successful&quot; in their 20s, although I am sure there are exceptions.<br /><br />One person built a successful social game and started to make several hundred thousand dollars a year overnight. However, instead of focusing on what made him successful, he was buying cars and traveling and his competitors annihilated his company and he lost his revenue source.<br /><br />Financial success begets laziness. Laziness begets failure. It is the virtuous cycle.</div></div></div></div></div><div id="ld_OtEogM_849"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">14</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/answer/Brandon-Smietana">Why would Palantir go after WikiLeaks?</a></h2></div><div class="inline" id="__w2_Kij7f6u_truncated"><div id="ld_OtEogM_855"><div class="truncated_thumbnail_holder"></div>This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br />... <a class="more_link" href="#" id="__w2_L6SVdii_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_Kij7f6u_expanded"><div id="ld_OtEogM_856">This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br /><br /><b>&quot;You have to respond to Wikileaks immediately, by giving us massive amounts of money for our software and consulting services. You cannot wait to write us a massive blank check, because the threat of Wikileaks is too great.&quot;<br /></b><br />Palantir&#039;s management would have to be incompetent to not try to capitalize on Wikileaks.<br /><br />More disturbing than Palantir&#039;s actions, is that the slides suggest that the US government should use Palantir&#039;s software to identify and threaten the job security of civilians, on the basis of which political organizations or ideologies they support.</div></div></div></div></div><div id="ld_OtEogM_850"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">14</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/answer/Brandon-Smietana">In a two person team, should one person be in charge of the features and product strategy?</a></h2></div><div class="inline" id="__w2_XWV7byJ_truncated"><div id="ld_OtEogM_857"><div class="truncated_thumbnail_holder"></div>This question is an attempt at groping for moral authority.<br />... <a class="more_link" href="#" id="__w2_Hndz3tT_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_XWV7byJ_expanded"><div id="ld_OtEogM_858">This question is an attempt at groping for moral authority.<br /><br />MBA/Lawyer: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;<br /><br />&quot;It would streamline decision making if everyone would just do what I tell them instead of involving themselves with the product. Someone has to have a final say on the product.&quot;<br /><br />In many startups the &quot;business person&quot; tries to make all product decisions and expects the technical co-founder to just focus on building the product. For some reason, most companies structured like this seem to fail. Developers in this position are often micromanaged and nagged to death or alienated. Even if the company is successful at launching a product, or raising money, they have difficulty expanding the team and lack the core management team needed for expansion.<br /><br />Developers I have spoken to who have worked as technical cofounders with an autocratic technical cofounder often describe the experience as similar to working for a bad client. Successful team where the developer was not heavily involved with the product design and customer are rare.<br /><br />Different people have different leadership and communication styles.<br /><br />Some people are more democratic and will accept input from others and defer to their expertise. Other people have a more autocratic communication style and will insist upon making all the decisions in the organization.<br /><br />I believe that decisions in an organization should be made by the people with the 1&gt; information and 2&gt; expertise to best make then decision.<br /><br />Saying &quot;one person needs to be responsible&quot; or &quot;each person much have a well defined fiefdom&quot; is conceptually simple but sacrifices organizational performance for simplicity in organizational structure. Saying &quot;this person is responsible for marketing, and he is responsible for technology&quot; divides decision marketing by roles.<br /><br />As an example, a hypothetical modern internet marketing campaign might require twitter/facebook integration with a web application, analytics functionality measuring the effectiveness of the marketing technique and A/B testing to optimize the marketing technique. Is this marketing campaign &quot;responsibility&quot; of engineering or the responsibility of marketing? Achieving even simple corporate goals requires behavior and decision making which cut across firm boundaries and roles.<br /><br />&quot;Responsibilities&quot; and &quot;decision making authority&quot; in an effective organization are delegated on the basis by expertise and knowledge, rather than by functional roles.<br /><br />You have to ask<br />1&gt; Which person or group has the knowledge to best make this decision<br />2&gt; Who has the expertise to make this decision<br /><br />On matters of design, defer decisions to a designer.<br /><br />Often a decision cuts across functional boundaries. A product feature decision requires<br /><br />1&gt; An conceptualization of the customer/user<br />2&gt; Ability to estimate the engineering complexity of the feature<br />3&gt; A set of criteria against which to evaluate the decision being made (what are the goals of the organization? Increase LTV, customer acquisition, reducing churn rates, etc...<br /><br />The first is a product manager/ customer development role. The second is an engineering role. The third is an executive role. It is the role of the executive to set organizational goals and define the criteria against which decisions will be judged.<br /><br />Decisions will be best made when the expertise (product/company Independent) and knowledge (product/company specific) required to make the decision are possessed by a single person. In the absence of an ubermensch who has broad company/product specific knowledge and an extremely high level of skill/expertise in multiple domains, decisions will be made by groups.<br /><br />MBA: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;</div></div></div></div></div><div id="ld_OtEogM_851"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">5</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Who-are-good-friends-of-Steve-Jobs/answer/Brandon-Smietana">Who are good friends of Steve Jobs?</a></h2></div><div class="inline" id="__w2_hbhk7Ta_truncated"><div id="ld_OtEogM_859"><div class="truncated_thumbnail_holder"></div>Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by th... <a class="more_link" href="#" id="__w2_vK4WMbq_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_hbhk7Ta_expanded"><div id="ld_OtEogM_860">Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by the board of directors in ~1986.</div></div></div></div></div><div id="ld_OtEogM_852"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">6</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/answer/Brandon-Smietana">How can angel investment in DC be rapidly expanded in 2011?</a></h2></div><div class="inline" id="__w2_gljWz1K_truncated"><div id="ld_OtEogM_861"><div class="truncated_thumbnail_holder"></div><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC....</li></ol> <a class="more_link" href="#" id="__w2_MX9Ynsh_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_gljWz1K_expanded"><div id="ld_OtEogM_862"><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC.</li><li>Encourage rich people to join an angel group.</li></ol><br />Also consider<br /><ul><li>publicly funded or city subsidized coworking spaces for startups</li><li>hosting events and inviting speaker to give talks about angel investing and encourage formation of angel investing groups</li><li>encourag the formation of Hackerspaces, either through direct subsidies. Hackerspaces are organized as non-profits. Hackerspaces and coworking spaces rapidly increase the technical base of a cities and accelerate company formation.</li></ul><br />For instance<br /><br /><a href="http://www.angelblog.net/Exit_Strategies_for_Angel_Investors_Video.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exit_St...</a><br /><br />Forming angel groups is a very important part of the process of encouraging angel investments. Angel groups are becoming social clubs and are rapidly expanding the capital base available to seed stage companies.</div></div></div></div></div></div></div></div></div></div><div class="footer wrapper"><div class="contents"><div class="footer_nav row"><div class="e_col footer_links w8"><div id="ld_OtEogM_842"><ul class="nav_list"><li class="about"><a href="/about">About</a></li><li class="jobs"><a href="/jobs">Jobs</a></li><li class="privacy"><a href="/about/privacy">Privacy</a></li><li class="tos"><a href="/about/tos">Terms</a></li><li class="press"><a href="/press">Press</a></li><li><span class="bullet"> &bull; </span></li><li class="signup"><a href="/login/index">Login</a></li><li class="signup"><a href="/signup/index">Sign Up</a></li><li class="mobile nav_sub_item"><a href="#" id="__w2_mFLFLHe_mobile_site">Mobile Site</a></li></ul></div></div></div></div></div></div><div class="above_page_banner hidden" id="__w2_XHj71ii_banner">There are some updates to this page that haven&#039;t been applied yet because you&#039;ve entered some data into a form. 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+ choose it from the list.</div></div></div><div id="__w2_dtE4f8w_results_shell"><div class="results_frame" id="__w2_LZi1ReD_results_frame"><ul id="__w2_LZi1ReD_results_list"><li class="instruction" id="__w2_LZi1ReD_list_item_0"><a class="result_item" href="#">Search Questions, Topics and People <span class="light">Press enter to add a new question</span></a></li></ul></div></div></div></div></div></div><div id="ld_Lg8Tya_2450"></div></div><div class="pmsg_container main wrapper hidden" id="__w2_EuQkY8j_pmsg_container"></div><div class="main wrapper"><div class="user_profile contents content main_content"><div id="ld_Lg8Tya_2451"></div><div class="page_header row main_col"><div class="e_col w2_5 side_col"><span id="ld_Lg8Tya_2452"><a class="follow_button" href="#" id="__w2_vhIIbx4_follow_user">Follow Brandon</a></span><span id="ld_Lg8Tya_2453"></span></div><div class="w5_5 e_col"><div id="ld_Lg8Tya_2454"><h1><div class="profile_icons"><a class="sn_icon" href="http://www.facebook.com/profile.php?id=542785349" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-ef4b999ebe928b2f.gif" /></a><a class="sn_icon" href="http://twitter.com/RKHilbertSpace" target="_blank" rel="me"><img src="http://d1vgw4v7ja2ido.cloudfront.net/-f2e98b581d7a2736.ico" /></a></div>Brandon Smietana</h1></div><div class="w4_5"><div id="ld_Lg8Tya_2455"><div class="user_topic_sig">Founder of Symbolic Analytics</div></div></div></div><div id="ld_Lg8Tya_2456"><div class="tabs w8" style="margin-left:-10px;"><a class="link" href="/Brandon-Smietana">Profile</a><a class="link" href="/Brandon-Smietana/about">About <span class="light normal">(</span>8<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/questions">Questions <span class="light normal">(</span>1553<span class="light normal">)</span></a><a class="link selected" href="/Brandon-Smietana/answers">Answers <span class="light normal">(</span>553<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/posts">Posts <span class="light normal">(</span>11<span class="light normal">)</span></a><a class="link" href="/Brandon-Smietana/log">Edits <span class="light normal">(</span>11000<span class="light normal">)</span></a></div></div></div><div class="col w4_5 main_col"><div id="ld_Lg8Tya_2457"><div id="ld_Lg8Tya_2464"><div class="pagedlist_item" id="ld_Lg8Tya_2480"><div class="feed_item stream_feed_item p1" id="__w2_e0zWrJ6_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2501"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2541"><span id="ld_Lg8Tya_2721"></span><a class="question_link" href="/How-much-does-startup-pedigree-matter" id="__w2_ynYcOF2_link"><span id="ld_Lg8Tya_2722"></span>How much does startup pedigree matter?</a></span></h2></div></div><div id="ld_Lg8Tya_2502"><div class="feed_item_answer answer_text" id="__w2_zM10tvS_answer"><div class="rating_buttons"><div id="__w2_zM10tvS_answer_voting"><div id="ld_Lg8Tya_2561"><div class="rating_buttons"><div class="rating_options" id="__w2_mzaiApf_buttons"><a class="lil_button rate_up" href="#" id="__w2_mzaiApf_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_mzaiApf_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_zM10tvS_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_zM10tvS_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_vWUVQ6t_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_vWUVQ6t_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_vWUVQ6t_menu_contents"> </div></div></span><div id="__w2_zM10tvS_answer_voters"><div id="ld_Lg8Tya_2562"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/John-Friend">John Friend</a> and <a class="user" href="/Jen-Harvey">Jen Harvey</a></span></div></div></div><div id="ld_Lg8Tya_2563"></div><div id="ld_Lg8Tya_2564">Google, Cisco, Apple, Microstrategy, Amazon, Paypal, Yahoo, Apple, Cisco and Facebook were started by first time entrepreneurs. I am not sure how much &quot;pedigree&quot; is material.<br /><br />There are a few academic studies that look at this topic, I will reference and summarize the most interesting ones.<br /><br /><b>Skill vs. luck in entrepreneurship and venture capital: Evidence from serial entrepreneurs </b><a href="http://businessinnovation.berkeley.edu/WilliamsonSeminar/scharfstein041207.pdf" rel="nofollow" target="_blank" class="external_link">http://businessinnovation<wbr />.berkel...</a> <br /><br /><b>&quot;If a company is started by an entrepreneur with a track record of success, then the company is no more likely to succeed if it is funded by a top-tier venture capital firm or one in the lower tier.&quot;</b><br /><b><br /></b>&quot;Funding by more experienced venture capital firms enhances the chance of success, but only for entrepreneurs without a successful track record.&quot;<br /><br />&quot;More experienced venture capitalists are able to identify and invest in first time entrepreneurs who are more likely to become serial entrepreneurs.&quot;<br /><br />&quot;Investments by venture capitalists in successful serial entrepreneurs generate higher returns for their venture capital investors.&quot;<br /><br />&quot;Our empirical model indicates that entrepreneurs who succeeded in a<br />prior venture (i.e., started a company that went public) have a 30% chance of succeeding in their next venture. By contrast, first-time entrepreneurs have only an 18% chance of succeeding and entrepreneurs who previously failed have a 20% chance of succeeding.&quot;<br /><br />Therefore experienced entrepreneurs have a 50% better success rate than non-experienced entrepreneurs. However, a 50% improve on 20% is still a 30% success rate.<br /><br />This study is actually contradicted by other studies showing that entrepreneurs do not increase their success rate much between subsequent companies. Other studies suggest that a previously successful VC backed company only improves the survival chance of subsequent companies if they are in the same industry.<br /><br />&quot;It seems, prior success is a public signal of quality. It also implies that previously<br />successful entrepreneurs derive no benefits from the value-added services of more experienced venture capital firms; successful entrepreneurs apparently know what they’re doing.&quot;<br /><br /><b>&quot;More experienced venture capital firms only have higher success</b><br /><b>rates when they invest in unproven entrepreneurs, a fact which highlights the role suppliers of venture capital play in identifying skilled entrepreneurs and helping them to succeed.&quot;</b><br /><br />&quot;we do not find that serial entrepreneurs (whether successful or not) are able to benefit from their higher success rates by selling equity at higher prices.&quot;<br /><br />&quot;Given this fact, it should come as no surprise that the average investment multiple (exit valuation divided by pre-money valuation) is higher for companies of previously successful serial entrepreneurs. We also find that fund returns are higher for venture capital firms that tend to invest a larger share of their portfolio in serial entrepreneurs.&quot;<br /><br />This study suggests that on average, if a brand-name investors pay a premium valuation for an entrepreneur because of their pedigree, it may reduce their investment returns.<br /><br />Google, Cisco, Apple, Microstrategy, Amazon, Paypal, Yahoo and Facebook were started by first time entrepreneurs. I am not sure how much &quot;pedigree&quot; is material.<br /><br />This paper suggests that top tier venture capital firms generate abnormal returns by finding and developing skilled first-time entrepreneurs (especially people likely to become serial entrepreneurs) rather than by investing in &quot;proven&quot; entrepreneurs. This idea may be counter intuitive.<br /><br />Here is another related study on the top performing VC firms. This one is more difficult to summarize.<br /><br /><b>The Best Venture Capitalists </b><a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1687766" rel="nofollow" target="_blank" class="external_link">http://papers<wbr />.ssrn.com/sol3/pape...</a></div><div class="action_bar" id="__w2_zM10tvS_answer_actions"><span id="ld_Lg8Tya_2565"><a class="view_comments supp " href="#" id="__w2_M9kkCqF_view_comment_link">12 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2566"><a class="answer_permalink" href="/How-much-does-startup-pedigree-matter/answer/Brandon-Smietana"><span class="datetime" id="__w2_LVsd6Al_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2701"></span></span></div><div id="ld_Lg8Tya_2567"><div class="comments answer_comments hidden" id="__w2_HVoV430_answer_comments"><div id="ld_Lg8Tya_2761"><div id="ld_Lg8Tya_2781"><a name="comment304266"></a><div class="comment p0_5 br5 featured_comment" id="__w2_bDcuxFk_comment"><div class="comment_contents"><p class="comment_text">Very interesting... The top line conclusion about first vs. second tier VC utility is definitely interesting, but two other stats jump out at me as well - one being the fact that a failed entrepreneur still edges out a first timer. That seems like a unique quirk of entrepreneurship most likely, I find it hard to believe that the same is true of failed sales executives or lawyers who have failed the bar exam vs. new law school grads. Guess that would require looking up. But the other interesting stat is the comparatively low spread between those with previous success and those without. Don&#039;t get me wrong a 50% increase over baseline is not small by any definition, but the fact that nobody there&#039;s only a 10% boost overall and *everyone&#039;s* a long shot is eye opening.</p><p class="action_bar"><a class="user" href="/Nick-Baily">Nick Baily</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_cVNrxrI_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2782"><a name="comment304267"></a><div class="comment p0_5 br5 featured_comment" id="__w2_Q8fy4lI_comment"><div class="comment_contents"><p class="comment_text">Hah... You edited the answer extensively after I replied, with a lot more clear info on the lack of return premiums to serial entrepreneurs. That does defy conventional wisdom, curious if that is broadly supported or based on limited data.</p><p class="action_bar"><a class="user" href="/Nick-Baily">Nick Baily</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_InLKsgA_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2783"><a name="comment304270"></a><div class="comment p0_5 br5 featured_comment" id="__w2_c6uAs5u_comment"><div class="comment_contents"><p class="comment_text">Nick, it also depends on the industry. Some industries might have a larger premium to experience than other industries.<br /><br />Psychologically, &quot;They were successful last time&quot; is a rationalization of an investment decision and its intuitive. However, much of the data suggests that we over-estimate the importance of previous success.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_jxX0C17_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2784"><a name="comment304277"></a><div class="comment p0_5 br5 featured_comment" id="__w2_qvqOHvj_comment"><div class="comment_contents"><p class="comment_text">&quot;the other interesting stat is the comparatively low spread between those with previous success and those without&quot;<br /><br />Exactly. What is also interesting to look at is not just failure percentage but also exit size.<br /><br />Experienced entrepreneurs may be more capital efficient and have larger exits, even if their success rate is only 50% greater (30%).</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_wPDVqp7_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2785"><a name="comment304278"></a><div class="comment p0_5 br5 featured_comment" id="__w2_hdWNQbi_comment"><div class="comment_contents"><p class="comment_text">You&#039;re a data geek right (thats a compliment FYI) so then the obvious follow up question based on studies you have seen... What IS the highest beta for success then? Assume seed stage at latest, obviously companies with revenues and funding probably look different then companies in the aggregate.<br /><br /><br />Though the correlation between previous and future success may be weak at best, is it possible that is remains the most correlated variable in a generally unpredictable process, or would you argue there are higher coefficient variables when evaluating startups at this stage?</p><p class="action_bar"><a class="user" href="/Nick-Baily">Nick Baily</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_V5Rj7eb_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2786"><a name="comment304287"></a><div class="comment p0_5 br5 featured_comment" id="__w2_FvgBHhD_comment"><div class="comment_contents"><p class="comment_text">Series A success rates are surprissingly high. Companies that get to series A only fail 30% of the time. They return 1-3x 40% of time and +3x about 30% of time.<br /><br />After you get to Series A, you have removed most of the risk of failure (but not of wash-out rounds and dilution). Seed stage is very risky, but the companies &quot;fail fast&quot;.<br /><br />Also, the majority of companies that are successful or IPO, do not take any early state VC funding. Many companies take late state or growth VC, but for IPOs there are a surprisingly low percentage of VC companies. Most companies are bootstrapped to profitability and grow organically (or through debt financing; Walmart expanded through traditional bank loans and debt financing instead of equity financing).<br /><br />However, this varies by industry. In internet/technology and biotech I think we expect to see a lot more VC funded companies than in other industries.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_dPy8gzO_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2787"><a name="comment304289"></a><div class="comment p0_5 br5 featured_comment" id="__w2_h2WJcZH_comment"><div class="comment_contents"><p class="comment_text">I am using &quot;startup&quot; here in typical Quora terms, ie high growth technology. Is your data above doing the same, or is this a much broader sample that includes retail and industrial. I wouldn&#039;t expect tech and &quot;non tech&quot; to have similar profiles given the unique economics of a sector almost entirely based on very low marginal cost business models, which are quite a bit less common among newly founded companies in the aggregate.</p><p class="action_bar"><a class="user" href="/Nick-Baily">Nick Baily</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_rky5LZf_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2788"><a name="comment304295"></a><div class="comment p0_5 br5 featured_comment" id="__w2_U6HdO7F_comment"><div class="comment_contents"><p class="comment_text">&quot;Chatterji (2005) shows that industry experience also increases the likelihood of success. In the medical device industry, startups founded by former employees of other medical device companies perform better than other startups.&quot;<br /><br />Industry experience / connections are one indicator that improves success rate.<br /><br />I dont have data by industry, but I believe there are significant industry dependent factors which have not been identified.<br /><br />Within technology Paul Graham and Ron Conway have great datasets, but I dont have those. Founders institute only has 2 years of data.<br /><br />Founders institute dataset suggests that older applicants are more likely to complete the program without dropping out. Older entrepreneurs with industry experience are more likely to be successful, but younger unmarried entrepreneurs are more likely to become serial entrepreneurs. <br /><br />Everything is industry dependent, but there are only a hand full of companies and the dataset are not public.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_BosLFmg_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2789"><a name="comment304304"></a><div class="comment p0_5 br5 featured_comment" id="__w2_BFXhfqn_comment"><div class="comment_contents"><p class="comment_text">&quot;The data show a clear concentration of entrepreneurs in the three sectors that are most<br />closely associated with the venture capital industry: Internet and computers; communications and electronics; and biotech and healthcare.&quot;<br /><br />&quot;We define “success” as going public or filing to go public by December 2003. The findings are similar if we define success to also include firms that were acquired or merged. The overall success rate on first time ventures is 25.3%. Not surprisingly, serial entrepreneurs have an above-average success rate of 36.9% on their first ventures&quot;<br /><br />Their definition of &#039;success&#039; is not what we would consider &quot;success&quot; today.<br /><br />Between 1980 and 2003, there were more IPO exits. Today it is mostly small M&amp;A exits. The company characteristics and markets are different also.<br /><br />So the data from this period may not be reflective of the recent internet companies.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_A4FlTvh_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2790"><a name="comment304305"></a><div class="comment p0_5 br5 featured_comment" id="__w2_Qvrf1yy_comment"><div class="comment_contents"><p class="comment_text">This is why I asked Brandon to answer. Nobody has better, more rational information on the VC industry to share.</p><p class="action_bar"><a class="user" href="/Andrew-de-Andrade">Andrew de Andrade</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_dsCtWxa_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2791"><a name="comment304311"></a><div class="comment p0_5 br5 featured_comment" id="__w2_Np0XP7a_comment"><div class="comment_contents"><p class="comment_text">Thanks Andrew! I am actually still learning myself and there is not very much data, so it is difficult to make any generalizations.<br /><br />VC funds are not required to report their return data and most of the do not. Many small M&amp;As are for unknown and unreported amounts.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_KHdIKsd_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2792"><a name="comment304336"></a><div class="comment p0_5 br5 featured_comment" id="__w2_eMpIqr7_comment"><div class="comment_contents"><p class="comment_text">I would love to see figures for success rates and exit sizes comparing investments made by VCs and angels that are former entrepreneurs versus those made by people who went directly into venture capital or came from another financial area. <br /><br />i.e. does the pedigree of the VC correlate with success<br /><br />I would bet that it does, especially considering that the data your mentioned above suggests that the main job of a VC is to both identify capable entrepreneurs and good ideas. I would imagine that former entrepreneurs are much better at identifying their own kind.</p><p class="action_bar"><a class="user" href="/Andrew-de-Andrade">Andrew de Andrade</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_VF3xbLD_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2793"><div class="comment p0_5"><small><a class="light" href="/How-much-does-startup-pedigree-matter/all_comments/Brandon-Smietana">View All 12 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2481"><div class="feed_item stream_feed_item p1" id="__w2_J9fnF2E_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2503"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2542"><span id="ld_Lg8Tya_2723"></span><a class="question_link" href="/Has-President-Obama-done-a-good-job-so-far" id="__w2_doPm5md_link"><span id="ld_Lg8Tya_2724"></span>Has President Obama done a good job so far?</a></span></h2></div></div><div id="ld_Lg8Tya_2504"><div class="feed_item_answer answer_text" id="__w2_aVfrigp_answer"><div class="rating_buttons"><div id="__w2_aVfrigp_answer_voting"><div id="ld_Lg8Tya_2568"><div class="rating_buttons"><div class="rating_options" id="__w2_a5Kw0iY_buttons"><a class="lil_button rate_up" href="#" id="__w2_a5Kw0iY_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_a5Kw0iY_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_aVfrigp_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_aVfrigp_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_X6M32SN_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_X6M32SN_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_X6M32SN_menu_contents"> </div></div></span><div id="__w2_aVfrigp_answer_voters"><div id="ld_Lg8Tya_2569"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Yaniv-Goldenrand">Yaniv Goldenrand</a>, <a class="user" href="/Daiyee-Hui">Daiyee Hui</a> and <a class="user" href="/Marc-Bodnick">Marc Bodnick</a></span></div></div></div><div id="ld_Lg8Tya_2570"></div><div id="ld_Lg8Tya_2571">I personally believe that Obama has done an absolutely excellent job.<br /><br />The president&#039;s job is to mediate between state holders and special interest groups and to serve as a figurehead and representative of the American government.<br /><br />It would be an attribution error to over estimate the influence Obama has on the decisions and positions of his administration.<br /><br />Obama has been successful at increasing feelings of government transparency while cracking down on government &quot;whistle blowers&quot; and &quot;war protesters&quot;. He has also relieved much of the tension in the media (previously directled at Bush) about the occupation of Iraq and Afghanistan, without making any policy change concerning the wars. Obama has also been very successful at relieving media criticism about the use of torture by US military, without changing US policy or behavior.<br /><br />Obama&#039;s sound-bites quoted by the news papers make us feel warm and fuzzy about &quot;US imperial aggression&quot; and regime change throughout the middle east.<br /><br /><a href="http://www.youtube.com/watch?v=oddzA_R-zaU&amp;feature=fvwrel" rel="nofollow" target="_blank" class="external_link">http://www.youtube.com/wa<wbr />tch?v=o...</a><br /><br />Obama has been exceptional at improving the image of the United States aboard. Just a few years ago, mobs were parading through the street burning images of George Bush and desecrating the United States flag. Citizens of foreign country celebrated and breathed a sigh of relief when Obama was elected, because Obama was not Bush.<br /><br />Bush had an international PR problem and was portrayed extremely negatively in the domestic and foreign media. Abroad, Bush became a symbol for US imperial aggression and human rights abuses (perhaps unfairly). Bush had to martyr himself in acts of perjury to sell unpopular US foreign policies.<br /><br />Obama has the perfect PR image to for going to war for &quot;freedom and democracy&quot;.<br /><br />I think it is naive to criticize Bush or Obama. For instance, Bush did not decide to goto war in Afghanistan and Iraq. The US foreign policy community made the decision to go into Iraq and Afghanistan as early as 1995. The US military had been bombing the country for a decade and was just looking for an excuse.<br /><br />see: <a href="http://en.wikipedia.org/wiki/Bombing_of_Iraq_(December_1998)" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Bom...</a><br />see: <a href="http://en.wikipedia.org/wiki/Bombing_of_Iraq_(September_1996)" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Bom...</a><br /><br />This should remind you of what is currently happening in Libya.<br /><br />see: <a href="http://en.wikipedia.org/wiki/Failed_Iraqi_peace_initiatives" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Fai...</a><br />see: <a href="http://en.wikipedia.org/wiki/Blair&#039;s_tests_for_Iraq_Disarmament" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Bla...</a><br /><br />Bush did not decide to goto war, although he is blamed for it. The US foreign policy groups decided that it was necessary to go to war and it is the job of the United States president to sell the war. &quot;No evidence of WMDs? If you dont produce a report finding evidence of WMDs, I will replace you with someone who will.&quot;<br /><br />Obama came in untainted by the negative PR of Bush, but his job is the same; to sell the consensus decisions made by the respective power centers in the US government. <br /><br />I personally believe that Obama has done an absolutely excellent job. I cannot possibly imagine what Obama could be doing better that would not alienate the support of interest groups who he must mediate between.</div><div class="action_bar" id="__w2_aVfrigp_answer_actions"><span id="ld_Lg8Tya_2572"><a class="view_comments supp " href="#" id="__w2_vGX0eKq_view_comment_link">4 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2573"><a class="answer_permalink" href="/Has-President-Obama-done-a-good-job-so-far/answer/Brandon-Smietana"><span class="datetime" id="__w2_v9EL5YC_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2702"></span></span></div><div id="ld_Lg8Tya_2574"><div class="comments answer_comments hidden" id="__w2_WxKRtpD_answer_comments"><div id="ld_Lg8Tya_2762"><div id="ld_Lg8Tya_2794"><a name="comment299220"></a><div class="comment p0_5 br5 featured_comment" id="__w2_FKUGZU3_comment"><div class="comment_contents"><p class="comment_text">Even with the increasing tension and distrust between him and the business community?</p><p class="action_bar"><a class="user" href="/Carl-Anthony-Jr">Carl Anthony Jr</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_kojNF67_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2795"><a name="comment299226"></a><div class="comment p0_5 br5 featured_comment" id="__w2_T8p6xdF_comment"><div class="comment_contents"><p class="comment_text">And why should American&#039;s care what other&#039;s think of them? Is that really a great metric to rate a President on?</p><p class="action_bar"><a class="user" href="/Carl-Anthony-Jr">Carl Anthony Jr</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_Fo55V5s_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2796"><a name="comment299297"></a><div class="comment p0_5 br5 featured_comment" id="__w2_RArY56L_comment"><div class="comment_contents"><p class="comment_text">This answer takes &#039;job&#039; literally.<br />You should add the increased public safety against harmful speech.</p><p class="action_bar"><a class="user" href="/Yaniv-Goldenrand">Yaniv Goldenrand</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_vUgfZ0Q_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2797"><a name="comment301433"></a><div class="comment p0_5 br5 featured_comment" id="__w2_vVP9Qse_comment"><div class="comment_contents"><p class="comment_text">btw giving all interest groups all their wishes is not good mediating. When every bank who requests a dollar gets two dollars you can&#039;t say Obama does a good job mediating banks.</p><p class="action_bar"><a class="user" href="/Yaniv-Goldenrand">Yaniv Goldenrand</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_MBVFrP2_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2798"><div class="comment p0_5"><small><a class="light" href="/Has-President-Obama-done-a-good-job-so-far/all_comments/Brandon-Smietana">View All 4 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2482"><div class="feed_item stream_feed_item p1" id="__w2_EujddR8_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2505"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2543"><span id="ld_Lg8Tya_2725"></span><a class="question_link" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round" id="__w2_BDa4vwy_link"><span id="ld_Lg8Tya_2726"></span>Is it ok to say you want to go from seed to exit when raising an angel round?</a></span></h2></div></div><div id="ld_Lg8Tya_2506"><div class="feed_item_answer answer_text" id="__w2_XtTZLSG_answer"><div class="rating_buttons"><div id="__w2_XtTZLSG_answer_voting"><div id="ld_Lg8Tya_2575"><div class="rating_buttons"><div class="rating_options" id="__w2_TTW7ENl_buttons"><a class="lil_button rate_up" href="#" id="__w2_TTW7ENl_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_TTW7ENl_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_XtTZLSG_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_XtTZLSG_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_EeyJ2vC_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_EeyJ2vC_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_EeyJ2vC_menu_contents"> </div></div></span><div id="__w2_XtTZLSG_answer_voters"><div id="ld_Lg8Tya_2576"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Mikael-Totterman">Mikael Totterman</a>, Anon User and <a class="user" href="/Matt-Cameron">Matt Cameron</a></span></div></div></div><div id="ld_Lg8Tya_2577"></div><div id="ld_Lg8Tya_2578">&quot;<b>The decision to accept VC investment increases the time to exit by approximately 12 years, not the median time of 7 years.&quot;  </b>Taking on VC increases mean exit time, increases the failure rate of portfolio companies and increases risk to angel investors.<br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-ce50f79755383b1d2b2f38a2fc0e8724" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-d2e6292b29a0dca45525b3d8f1d0e438" master_w="500" master_h="375" /><br />See: <span class="qlink_container"><a href="/Brandon-Smietana/Angel-Investing/Graph-Time-From-VC-Financing-to-an-M-A-Exit">Graph: Time From VC Financing to an M&amp;A Exit</a></span><br /><br />See: Exits with VC and Angel Investors - The Wiltbank Data <a href="http://www.angelblog.net/Exits_with_VC_and_Angel_Investors.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exits_w...</a><br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-69a80115a37559b089a70c5576dca5f7" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-a190cbeebabbf3c62fa98ce6c534f446" master_w="500" master_h="375" /><br />Many angels prefer quick, early exits. They like to get their money back. Having your capital tied up for another decade, to achieve only a few percentage points higher returns is not attractive to most angels.<br /><br />Also, angels suffer dilution in additional financing rounds; which are getting larger.<br /><br /><img class="qtext_image" src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-adf74678f356e4eb9eb471d7a6c02595" title="Click to Enlarge" style="cursor: pointer" master_src="http://d2o7bfz2il9cb7.cloudfront.net/main-qimg-78b15b8626e7b07fc048cd202701bb9e" master_w="500" master_h="375" /><br />VCs do not want to &quot;hear about exits&quot; because the median exit for a VC company is now a decade into the future after the round closes.<br /><br />Therefore angels should have a preference for investing in companies that can undergo and M&amp;A or become profitable, without VC. However, many investors do not have data or experience needed to understand how requiring VC can affect returns and the period that capital is held up in the investment.<br /><br />Many angel investors have suffered in previous companies when VC investors come in. Convertible debt caps are renegotiated and minority shareholders are often treated adversely by institutional investors. Taking on VC also tends to increase the time to exit.<br /><br />Many angels add value early in the company; by bringing in customers, helping to recruit employees, financing early expenses and giving feedback on the product. Then after the institutional investors come in, they sometimes say &quot;These minority investors are no longer &#039;adding value&#039;&quot; and the minority investors are treated badly in subsequent financing rounds. For instance, by being stripped of their participation rights in subsequent rounds.<br /><br />Early stage PE investors do not make money by generating 30% returns on each investment. Early stage VCs need to invest in companies that can &quot;return the fund&quot;. This means they would rather see a company fail with 80% probability and 20% chance of returning the fund, rather than see an early exit at less than 3x returns.<br /><br />Companies that defer profitability or exit until the VC stage entails an additional layer of risk, beyond the high failure rate of pre-series A companies.<br /><br />For instance, VC funding heightens the risk of down rounds that may wipe out minority shareholders and founders. Many of the highest returns in the VC asset class were generated by companies that went through &quot;washout&quot; rounds.<br /><br />So in general, angels should prefer to make investments in companies that do not require VC to achieve profitability or an exit. In practice, this may not be true however because not all angels are making rational investment decisions which are informed by analysis of the exit data,<br /><br />For more information, see<br /><br /><b>Early Exits: Exit Strategies for Entrepreneurs and Angel Investors </b><u><a href="http://amzn.to/eMqrJE" rel="nofollow" target="_blank" class="external_link">http://amzn.to/<wbr />eMqrJE</a></u></div><div class="action_bar" id="__w2_XtTZLSG_answer_actions"><span id="ld_Lg8Tya_2579"><a class="view_comments supp " href="#" id="__w2_DN7EYLo_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2580"><a class="answer_permalink" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round/answer/Brandon-Smietana"><span class="datetime" id="__w2_ACQzlaD_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2703"></span></span></div><div id="ld_Lg8Tya_2581"><div class="comments answer_comments hidden" id="__w2_b3S16In_answer_comments"><div id="ld_Lg8Tya_2763"><span id="ld_Lg8Tya_2799"><div class="comment p0_5"><small><a class="light" href="/Is-it-ok-to-say-you-want-to-go-from-seed-to-exit-when-raising-an-angel-round/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2483"><div class="feed_item stream_feed_item p1" id="__w2_W5j8jRp_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2507"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2544"><span id="ld_Lg8Tya_2727"></span><a class="question_link" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed" id="__w2_Db0UfIS_link"><span id="ld_Lg8Tya_2728"></span>What should I do if my assessment of the most successful person in my profession leaves me unimpressed?</a></span></h2></div></div><div id="ld_Lg8Tya_2508"><div class="feed_item_answer answer_text" id="__w2_OiJMyIR_answer"><div class="rating_buttons"><div id="__w2_OiJMyIR_answer_voting"><div id="ld_Lg8Tya_2582"><div class="rating_buttons"><div class="rating_options" id="__w2_F6OtY6c_buttons"><a class="lil_button rate_up" href="#" id="__w2_F6OtY6c_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_F6OtY6c_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_OiJMyIR_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_OiJMyIR_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_XhBvYuv_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_XhBvYuv_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_XhBvYuv_menu_contents"> </div></div></span><div id="__w2_OiJMyIR_answer_voters"><div id="ld_Lg8Tya_2583"></div></div></div><div id="ld_Lg8Tya_2584"></div><div id="ld_Lg8Tya_2585">Lower your expectations.</div><div class="action_bar" id="__w2_OiJMyIR_answer_actions"><span id="ld_Lg8Tya_2586"><a class="view_comments supp " href="#" id="__w2_IGl57yO_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2587"><a class="answer_permalink" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed/answer/Brandon-Smietana"><span class="datetime" id="__w2_mKGvWlF_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2704"></span></span></div><div id="ld_Lg8Tya_2588"><div class="comments answer_comments hidden" id="__w2_wM3rH4M_answer_comments"><div id="ld_Lg8Tya_2764"><span id="ld_Lg8Tya_2800"><div class="comment p0_5"><small><a class="light" href="/What-should-I-do-if-my-assessment-of-the-most-successful-person-in-my-profession-leaves-me-unimpressed/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2484"><div class="feed_item stream_feed_item p1" id="__w2_pb9F52X_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2509"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2545"><span id="ld_Lg8Tya_2729"></span><a class="question_link" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life" id="__w2_hNEiyIa_link"><span id="ld_Lg8Tya_2730"><span class="best_source_icon" id="__w2_g9NragX_icon"></span></span>If I haven&#039;t succeeded in my mid 20s, could I be successful in the rest of my life?</a></span></h2></div></div><div id="ld_Lg8Tya_2510"><div class="feed_item_answer answer_text" id="__w2_yGkQw0t_answer"><div class="rating_buttons"><div id="__w2_yGkQw0t_answer_voting"><div id="ld_Lg8Tya_2589"><div class="rating_buttons"><div class="rating_options" id="__w2_dm02Urs_buttons"><a class="lil_button rate_up" href="#" id="__w2_dm02Urs_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_dm02Urs_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_yGkQw0t_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_yGkQw0t_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_phrjpmn_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_phrjpmn_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_phrjpmn_menu_contents"> </div></div></span><div id="__w2_yGkQw0t_answer_voters"><div id="ld_Lg8Tya_2590"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">57</strong> votes</span> by <a class="user" href="/Robert-Boyd">Robert Boyd</a>, <a class="user" href="/Vladimir-Dimitroff">Vladimir Dimitroff</a>, <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a>, <a class="more_link" href="#" id="__w2_OcnJ87D_view_all_link">(more)</a></span></div></div></div><div id="ld_Lg8Tya_2591"></div><div id="ld_Lg8Tya_2592">Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br /><br />Many entrepreneurs do not achieve an exit until they are in mid thirties to late forties.The percentage of people who succeed before they are 35 is very low. People in their early thirties tend to be on their third or fourth company and still have not achieved an exit yet.<br /><br />Also, many people who &quot;Succeed&quot; early on seem to spend all their money and are not successful at 30. Many people have flipped web-applications for 1 to 3 million in their early 20s and most of them do not know how to invest. Many people live above their level of income and end up spending the money by the time they are 30. The natural tendency of most Americans is towards debt (negative savings rate).<br /><br />Most of the people I have met who were successful in their 20s, were unsuccessful by the time they were in their thirties. This may constitute the majority of people who are &quot;successful&quot; in their 20s, although I am sure there are exceptions.<br /><br />One person built a successful social game and started to make several hundred thousand dollars a year overnight. However, instead of focusing on what made him successful, he was buying cars and traveling and his competitors annihilated his company and he lost his revenue source.<br /><br />Financial success begets laziness. Laziness begets failure. It is the virtuous cycle.</div><div class="action_bar" id="__w2_yGkQw0t_answer_actions"><span id="ld_Lg8Tya_2593"><a class="view_comments supp " href="#" id="__w2_Xr0FtiT_view_comment_link">5 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2594"><a class="answer_permalink" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/answer/Brandon-Smietana"><span class="datetime" id="__w2_Csndlkz_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2705"></span></span></div><div id="ld_Lg8Tya_2595"><div class="comments answer_comments hidden" id="__w2_LFZU8Dn_answer_comments"><div id="ld_Lg8Tya_2765"><div id="ld_Lg8Tya_2801"><a name="comment288120"></a><div class="comment p0_5 br5 featured_comment" id="__w2_tqyB06t_comment"><div class="comment_contents"><p class="comment_text">Colonel Sanders didn&#039;t start the first KFC franchise until he was 65. (Note: I do not recommend chicken as a path to riches).</p><p class="action_bar"><a class="user" href="/Michael-Wolfe">Michael Wolfe</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gIuCat5_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2802"><a name="comment288250"></a><div class="comment p0_5 br5 featured_comment" id="__w2_yzlYavH_comment"><div class="comment_contents"><p class="comment_text">why not?</p><p class="action_bar"><a class="user" href="/Andrew-Cheung">Andrew Cheung</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_yYAcnqY_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2803"><a name="comment288668"></a><div class="comment p0_5 br5 featured_comment" id="__w2_W8MqkI3_comment"><div class="comment_contents"><p class="comment_text">&quot;Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.&quot; Where did you get this data?</p><p class="action_bar"><a class="user" href="/Harjeet-Taggar">Harjeet Taggar</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_Vh1YxfE_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2804"><a name="comment288690"></a><div class="comment p0_5 br5 featured_comment" id="__w2_GYJ7tEw_comment"><div class="comment_contents"><p class="comment_text">Harjeet, I was quoting a tweet I made earlier <a href="http://twitter.com/#!/RKHilbertSpace/status/44241111920807936" rel="nofollow" target="_blank" class="external_link">http://twitter.com/#!/RKH<wbr />ilbertS...</a><br /><br />The source of the stats is Zagorsky, J. L. Do you have to be smart to be rich? The impact of IQ on wealth, income and financial distress. Intelligence (2007), doi:10.1016/j.intell.2007<wbr />.02.003<br /><br />More information here, <a href="http://b.qr.ae/dUWNis" rel="nofollow" target="_blank" class="external_link">http://b.qr.ae/dUWNis</a></p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_R5medyn_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2805"><a name="comment289469"></a><div class="comment p0_5 br5 featured_comment" id="__w2_dfsRHIR_comment"><div class="comment_contents"><p class="comment_text">Good answer Brandon. You just described my entire life thus far. I&#039;m 31 &amp; on my 4th business. The last biz was exceedingly profitable at one point, that is until I blew the cash and became reckless with both my personal and business&#039; finances. <br /><br />Now I&#039;m starting from scratch, no exit strategy for the foreseeable future, but all the desire and ambition I had when I was 18 in my college dorm room pondering on how to be a millionaire by 30.<br /><br />Good insight...</p><p class="action_bar"><a class="user" href="/Geoffrey-Hull">Geoffrey Hull</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_xjh7VEe_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2806"><div class="comment p0_5"><small><a class="light" href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/all_comments/Brandon-Smietana">View All 6 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2485"><div class="feed_item stream_feed_item p1" id="__w2_EhnZaZr_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2511"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2546"><span id="ld_Lg8Tya_2731"></span><a class="question_link" href="/How-can-I-avoid-copying-a-software-patent-by-accident" id="__w2_sn7xSYT_link"><span id="ld_Lg8Tya_2732"></span>How can I avoid copying a software patent by accident?</a></span></h2></div></div><div id="ld_Lg8Tya_2512"><div class="feed_item_answer answer_text" id="__w2_u45fjHr_answer"><div class="rating_buttons"><div id="__w2_u45fjHr_answer_voting"><div id="ld_Lg8Tya_2596"><div class="rating_buttons"><div class="rating_options" id="__w2_beRPtAB_buttons"><a class="lil_button rate_up" href="#" id="__w2_beRPtAB_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_beRPtAB_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_u45fjHr_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_u45fjHr_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_jVt3X1x_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_jVt3X1x_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_jVt3X1x_menu_contents"> </div></div></span><div id="__w2_u45fjHr_answer_voters"><div id="ld_Lg8Tya_2597"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_IZXuyBs_view_all"><a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Will-Richardson">Will Richardson</a>, Anon User, </span> <a class="more_link" href="#" id="__w2_IZXuyBs_view_all_link">(more)</a><span class="hidden" id="__w2_IZXuyBs_all_phrases"><a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Will-Richardson">Will Richardson</a>, Anon User, <a class="user" href="/Dawn-Teo">Dawn Teo</a> and <a class="user" href="/Justin-Musa">Justin Musa</a></span></span></div></div></div><div id="ld_Lg8Tya_2598"></div><div id="ld_Lg8Tya_2599">Impossible. Everything in software is patented.<br /><br />Do you used linked lists? Well someone patented that in 2006<br /><br /><a href="http://www.google.com/patents?id=Szh4AAAAEBAJ&amp;printsec=abstract#v=onepage&amp;q&amp;f=false" rel="nofollow" target="_blank" class="external_link">http://www.google.com/pat<wbr />ents?id...</a><br /><br />Do you use doubly linked lists in your program? That is patented too!<br /><br /><a href="http://www.google.com/patents?id=Szh4AAAAEBAJ&amp;printsec=abstract#v=onepage&amp;q&amp;f=false" rel="nofollow" target="_blank" class="external_link">http://www.google.com/pat<wbr />ents?id...</a><br /><br />There is a patent for displaying real estate on a map in a web-browser. &quot;Internet organizer for accessing geographically and topically based information&quot; <a href="http://1.usa.gov/h7tG6l" rel="nofollow" target="_blank" class="external_link">http://1.usa<wbr />.gov/h7tG6l</a><br /><br />Does your company distribute videos through a computer network? You are violating several patents! <br /><br />Do you have an online shopping cart? You are a patent infringer, US Patent  <b>7,272,639</b>, <b>US Patent 5,715,314</b> and US Patent <b>5,909,492</b><br /><br />Does your social game use cloud computing? That is patented too.<br /><br />How about a wireless device that plays video games? That is patented too. &quot;Apparatus for video gaming includes a box having a slot with an interface that connects to a game card providing a platform to run a software video game.&quot; <a href="http://1.usa.gov/hLVXYo" rel="nofollow" target="_blank" class="external_link">http://1.usa.gov/h<wbr />LVXYo</a><br /><br />In 1986 and 1999, patents were awarded for run-length encoding. Nearly every software company in every industry was violating these patents, until the patent expired.<br /><br />Arithmetic encoding was patented, several times, despite being prior art. You would not even know if you were violating the patent because the patent filers just changed the name of the algorithm from the prior art (but kept the algorithm and probability model the same).<br /><br />US Patent 4286256, US Patent 4295125, US Patent 4463342, US Patent 4467317, US Patent 4633490, US Patent 4652856, US Patent 4891643,US Patent 4905297, US Patent 4935882, US Patent 4973961, US Patent 5023611, US Patent 5025258<br /><br /><b>EVERYTHING is patented in software. If you write software, you are violating someones patent.</b><br /><br />Most of the software patents would be invalidated, however when you are sued you will not pay 5 million dollars to defend yourself against a weak patent claim because it is cheaper to settle the lawsuit than to fight it.<br /><br />Also, if you are aware of a patent and are later found to have violated it, then damages are tripled. This is why companies such as Microsoft instruct their employees not to examine patents.</div><div class="action_bar" id="__w2_u45fjHr_answer_actions"><span id="ld_Lg8Tya_2600"><a class="view_comments supp " href="#" id="__w2_wEwyRIc_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2601"><a class="answer_permalink" href="/How-can-I-avoid-copying-a-software-patent-by-accident/answer/Brandon-Smietana"><span class="datetime" id="__w2_ULLFcyr_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2706"></span></span></div><div id="ld_Lg8Tya_2602"><div class="comments answer_comments hidden" id="__w2_HXV4nUx_answer_comments"><div id="ld_Lg8Tya_2766"><span id="ld_Lg8Tya_2807"><div class="comment p0_5"><small><a class="light" href="/How-can-I-avoid-copying-a-software-patent-by-accident/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2486"><div class="feed_item stream_feed_item p1" id="__w2_FonhXV7_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2513"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2547"><span id="ld_Lg8Tya_2733"></span><a class="question_link" href="/Who-are-good-friends-of-Steve-Jobs" id="__w2_KliD5Si_link"><span id="ld_Lg8Tya_2734"></span>Who are good friends of Steve Jobs?</a></span></h2></div></div><div id="ld_Lg8Tya_2514"><div class="feed_item_answer answer_text" id="__w2_u0TMIYE_answer"><div class="rating_buttons"><div id="__w2_u0TMIYE_answer_voting"><div id="ld_Lg8Tya_2603"><div class="rating_buttons"><div class="rating_options" id="__w2_MM2qdgf_buttons"><a class="lil_button rate_up" href="#" id="__w2_MM2qdgf_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_MM2qdgf_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_u0TMIYE_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_u0TMIYE_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_QGlHwf1_link"><span class="rep" id="__w2_QGlHwf1_sig">I was standing right next to Ste...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_QGlHwf1_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_QGlHwf1_menu_contents"> </div></div></span><div id="__w2_u0TMIYE_answer_voters"><div id="ld_Lg8Tya_2604"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_rWPlFRO_view_all"><a class="user" href="/Marc-Bodnick">Marc Bodnick</a>, <a class="user" href="/Murtaza-Ali-Akbar">Murtaza Ali Akbar</a>, <a class="user" href="/Joe-Luka">Joe Luka</a>, </span> <a class="more_link" href="#" id="__w2_rWPlFRO_view_all_link">(more)</a><span class="hidden" id="__w2_rWPlFRO_all_phrases"><a class="user" href="/Marc-Bodnick">Marc Bodnick</a>, <a class="user" href="/Murtaza-Ali-Akbar">Murtaza Ali Akbar</a>, <a class="user" href="/Joe-Luka">Joe Luka</a>, <a class="user" href="/David-Haddad">David Haddad</a> and <a class="user" href="/Romain-Moisescot">Romain Moisescot</a></span></span></div></div></div><div id="ld_Lg8Tya_2605"></div><div id="ld_Lg8Tya_2606">Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by the board of directors in ~1986.</div><div class="action_bar" id="__w2_u0TMIYE_answer_actions"><span id="ld_Lg8Tya_2607"><a class="view_comments supp " href="#" id="__w2_AO97HIN_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2608"><a class="answer_permalink" href="/Who-are-good-friends-of-Steve-Jobs/answer/Brandon-Smietana"><span class="datetime" id="__w2_HVICHjD_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2707"></span></span></div><div id="ld_Lg8Tya_2609"><div class="comments answer_comments hidden" id="__w2_wkBLvgu_answer_comments"><div id="ld_Lg8Tya_2767"><span id="ld_Lg8Tya_2808"><div class="comment p0_5"><small><a class="light" href="/Who-are-good-friends-of-Steve-Jobs/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2487"><div class="feed_item stream_feed_item p1" id="__w2_YH4xzxO_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2515"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2548"><span id="ld_Lg8Tya_2735"></span><a class="question_link" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011" id="__w2_eXIsYGR_link"><span id="ld_Lg8Tya_2736"></span>How can angel investment in DC be rapidly expanded in 2011?</a></span></h2></div></div><div id="ld_Lg8Tya_2516"><div class="feed_item_answer answer_text" id="__w2_rO5E6gc_answer"><div class="rating_buttons"><div id="__w2_rO5E6gc_answer_voting"><div id="ld_Lg8Tya_2610"><div class="rating_buttons"><div class="rating_options" id="__w2_LVLPuIa_buttons"><a class="lil_button rate_up" href="#" id="__w2_LVLPuIa_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_LVLPuIa_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_rO5E6gc_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_rO5E6gc_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_BHwJtRi_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_BHwJtRi_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_BHwJtRi_menu_contents"> </div></div></span><div id="__w2_rO5E6gc_answer_voters"><div id="ld_Lg8Tya_2611"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">5</strong> votes</span> by <span id="__w2_unYgbt3_view_all"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Newton-Naz">Newton Naz</a>, </span> <a class="more_link" href="#" id="__w2_unYgbt3_view_all_link">(more)</a><span class="hidden" id="__w2_unYgbt3_all_phrases"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a>, <a class="user" href="/Michael-Wolfe">Michael Wolfe</a>, <a class="user" href="/Newton-Naz">Newton Naz</a>, <a class="user" href="/Ian-Peters-Campbell">Ian Peters-Campbell</a> and <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a></span></span></div></div></div><div id="ld_Lg8Tya_2612"></div><div id="ld_Lg8Tya_2613"><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC.</li><li>Encourage rich people to join an angel group.</li></ol><br />Also consider<br /><ul><li>publicly funded or city subsidized coworking spaces for startups</li><li>hosting events and inviting speaker to give talks about angel investing and encourage formation of angel investing groups</li><li>encourag the formation of Hackerspaces, either through direct subsidies. Hackerspaces are organized as non-profits. Hackerspaces and coworking spaces rapidly increase the technical base of a cities and accelerate company formation.</li></ul><br />For instance<br /><br /><a href="http://www.angelblog.net/Exit_Strategies_for_Angel_Investors_Video.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exit_St...</a><br /><br />Forming angel groups is a very important part of the process of encouraging angel investments. Angel groups are becoming social clubs and are rapidly expanding the capital base available to seed stage companies.</div><div class="action_bar" id="__w2_rO5E6gc_answer_actions"><span id="ld_Lg8Tya_2614"><a class="view_comments supp " href="#" id="__w2_x3Jrpha_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2615"><a class="answer_permalink" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/answer/Brandon-Smietana"><span class="datetime" id="__w2_Z0NNqjI_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2708"></span></span></div><div id="ld_Lg8Tya_2616"><div class="comments answer_comments hidden" id="__w2_edUbzoc_answer_comments"><div id="ld_Lg8Tya_2768"><div id="ld_Lg8Tya_2809"><a name="comment279921"></a><div class="comment p0_5 br5 featured_comment" id="__w2_nBqtDqU_comment"><div class="comment_contents"><p class="comment_text">There are plenty of rich people here, and plenty of startups. I&#039;m working on #3 this very moment and will post back shortly.</p><p class="action_bar"><a class="user" href="/Peter-Corbett">Peter Corbett</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_qnvG0Oh_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2810"><a name="comment280748"></a><div class="comment p0_5 br5 featured_comment" id="__w2_S00ruq3_comment"><div class="comment_contents"><p class="comment_text">Here it is: <a href="http://angelXLR8R.eventbrite.com" rel="nofollow" target="_blank" class="external_link">http://angelXLR8R.eventbr<wbr />ite.com</a></p><p class="action_bar"><a class="user" href="/Peter-Corbett">Peter Corbett</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_P3KLoY4_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2811"><div class="comment p0_5"><small><a class="light" href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/all_comments/Brandon-Smietana">View All 2 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2488"><div class="feed_item stream_feed_item p1" id="__w2_REqHV6f_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2517"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2549"><span id="ld_Lg8Tya_2737"></span><a class="question_link" href="/What-is-hard-about-making-something-like-EtherPad" id="__w2_JAHhTO6_link"><span id="ld_Lg8Tya_2738"></span>What is hard about making something like EtherPad?</a></span></h2></div></div><div id="ld_Lg8Tya_2518"><div class="feed_item_answer answer_text" id="__w2_rAExVTk_answer"><div class="rating_buttons"><div id="__w2_rAExVTk_answer_voting"><div id="ld_Lg8Tya_2617"><div class="rating_buttons"><div class="rating_options" id="__w2_XNEsvY4_buttons"><a class="lil_button rate_up" href="#" id="__w2_XNEsvY4_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_XNEsvY4_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_rAExVTk_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_rAExVTk_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_O0UukIE_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_O0UukIE_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_O0UukIE_menu_contents"> </div></div></span><div id="__w2_rAExVTk_answer_voters"><div id="ld_Lg8Tya_2618"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">4</strong> votes</span> by <a class="user" href="/Ben-Nham">Ben Nham</a>, <a class="user" href="/Tudor-Achim">Tudor Achim</a>, <a class="user" href="/Nikola-Toshev">Nikola Toshev</a> and <a class="user" href="/Devin-Walters">Devin Walters</a></span></div></div></div><div id="ld_Lg8Tya_2619"></div><div id="ld_Lg8Tya_2620">Nothing is difficult about building an Etherpad type application, it is just very nuanced. The problem is similar to the problem of distributed databases or the problem of distributed state across multiple machines.<br /><br />I have n-computers with copies of the same piece of data. Each computer is modifying the local copy of the data and sending changes to the other computers. Assume computer 1 modifies data item 5 and then transmit change to computer 2, but before computer 2 receives the delta from computer 1, computer 2 also modifies data item 5. Then the delta is applied against data item 5 on computer 2 and now computer 1 and 2 are no longer in sync. They have different databases that are no longer syncronized.<br /><br />If the data operations commute (in the sense of group theory), then the first computer will go back into sync with computer 2, when computer 1 receives the delta from computer 2. You can treat operations on the state of data as a semi-group. If the operations do not commute (if the database state depends on the order the delta operations are applied), the the two databases will be out of sync.<br /><br />This problem does not occur in MySQL master-slave arrangements because deltas only go from the master to the slave and not in both directions.<br /><br />The following problem occurs; how do we get the two databases synced up again? How do we resolve the non-communititvity of the data operations?<br /><br />For a mathematical treatment, see<br /><br /><a href="http://en.wikipedia.org/wiki/%CE%A0-calculus" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/%CE...</a><br /> <br />Notice that the operations on two different rows of a database commute. However two operations on the same row (such as setting the row to a value) do not usually do commute. Two increment or decrement operations commute.<br /><br />One method is to create a partial ordering on all data-operations and ensure that operations are applied to the data in a way that respects the partial ordering. Creating the partial ordered time stamps in a distributed system is closely related to &quot;clock synchronization problem&quot;. One solution to creating a partial ordering of events in a distributed system is called &quot;vector clocks&quot;<br /><br /><a href="http://en.wikipedia.org/wiki/Vector_clocks" rel="nofollow" target="_blank" class="external_link">http://en.wikipedia.org/w<wbr />iki/Vec...</a><br /><br />Note: a variation of vector clocks can be used for distributed versioning of data objects. In a distributed setting, using a simple version counter does not make sense. You often need a versioning method to determine whether the client has the same version of the document as the server (so that server can only retransmit diffs or transactions instead of retransmitting the whole document). In the non-distributed setting a version counter is sufficient Lazy people building distributed system who do not want to impose a partial ordering on their document versions often just use a hash of the document (git uses this approach).<br /><br />A an simpler approach to resolve conflicts is to have a single computer act as the &quot;canonical state&quot; (very similar to a master-slave arrangement, with operations being performed on central server and changes being relayed back to the clients), with that computer resolving conflicts between the deltas. There are a number of algorithms and techniques for doing this and it is a similar problem to resolving merge conflicts in a distributed version control system like Mercurial. If two delta are applied to the same data item at the same time by two different clients, the master server can invalidate the second delta to arrive. This only occurs when multiple clients/users are modifying the same area of the data and there are &#039;merge conflicts&#039; between the two diffs. Applications like etherpad have to resolve merge conflicts in real-time, often by discarding the inputs or modifications made by a particular client.<br /><br />The &quot;canonical state&quot; approach works very well for web applications, is simplier than a true p2p approach (which is not possible over http, for technological reasons). There are &quot;stateless&quot; and &quot;state full&quot; protocols in the sense that a state full protocol requires the server may need to keep track of client information, such as the current version of the document each client has in memory.<br /><br />An even simpler (and less satisfactory) approach is to given each client a token and invalidate diffs from all clients except the one with the token. This model is &quot;everyone can modify the data, but only one person can be modifying it at a given time&quot;.<br /><br />Etherpad is &quot;online&quot; in the sense that clients cannot disappear for weeks and then come back and submit diffs from days ago. This simplifies the problem significantly. However, the problem is complicated by real-time nature of Etherpad.<br /><br />For instance, HTML does not have server to client messages. Therefore it is difficult for the server to push changes to the client as changes occur to the document. HTML clients must poll, use long polling, flash or WebSockets.<br /><br />If the client is only polling once every 2 seconds, then all deltas will arrive in 2 second intervals and be applied in batches. Changes occur in lumps instead of in natural key-by-key sequences. One way to mitigate this is to time stamp deltas and replay them on the client. This makes typing appear nature and gives the illusion that the client is updating as the keys are coming in, even if the changes are only applied 2-4 seconds after the initial key press on the original client. Time stamped deltas also enable correction for variance in client-server latency.<br /><br />There are 4 operations an Etherpad type application is communicating from client to server are,<br /><br />1&gt; Add character<br />2&gt; Delete character<br />3&gt; Add Line of Characters<br />4&gt; Delete line of characters<br /><br />A challenge on the UI client side is keeping the scroll bar position constant as text is added/removed. This is more of a problem for longer documents (google docs) than it is for Etherpad, which tends to be used for shorter documents.<br /><br />Building an Etherpad type applications is not difficult, it is just very nuanced.</div><div class="action_bar" id="__w2_rAExVTk_answer_actions"><span id="ld_Lg8Tya_2621"><a class="view_comments supp " href="#" id="__w2_HDoSwRp_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2622"><a class="answer_permalink" href="/What-is-hard-about-making-something-like-EtherPad/answer/Brandon-Smietana"><span class="datetime" id="__w2_M54KyPo_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2709"></span></span></div><div id="ld_Lg8Tya_2623"><div class="comments answer_comments hidden" id="__w2_wEljR2b_answer_comments"><div id="ld_Lg8Tya_2769"><span id="ld_Lg8Tya_2812"><div class="comment p0_5"><small><a class="light" href="/What-is-hard-about-making-something-like-EtherPad/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2489"><div class="feed_item stream_feed_item p1" id="__w2_QQx5NO1_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2519"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2550"><span id="ld_Lg8Tya_2739"></span><a class="question_link" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy" id="__w2_aEUb3TR_link"><span id="ld_Lg8Tya_2740"></span>In a two person team, should one person be in charge of the features and product strategy?</a></span></h2></div></div><div id="ld_Lg8Tya_2520"><div class="feed_item_answer answer_text" id="__w2_TqoPozU_answer"><div class="rating_buttons"><div id="__w2_TqoPozU_answer_voting"><div id="ld_Lg8Tya_2624"><div class="rating_buttons"><div class="rating_options" id="__w2_ZObBGhY_buttons"><a class="lil_button rate_up" href="#" id="__w2_ZObBGhY_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ZObBGhY_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_TqoPozU_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_TqoPozU_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_IRN3TuB_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_IRN3TuB_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_IRN3TuB_menu_contents"> </div></div></span><div id="__w2_TqoPozU_answer_voters"><div id="ld_Lg8Tya_2625"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">13</strong> votes</span> by <a class="user" href="/Michiel-van-Vlaardingen">Michiel van Vlaardingen</a>, <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a>, <a class="user" href="/Tony-Ross-Bowling">Tony Ross Bowling</a>, <a class="more_link" href="#" id="__w2_Ibwp3Rn_view_all_link">(more)</a></span></div></div></div><div id="ld_Lg8Tya_2626"></div><div id="ld_Lg8Tya_2627">This question is an attempt at groping for moral authority.<br /><br />MBA/Lawyer: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;<br /><br />&quot;It would streamline decision making if everyone would just do what I tell them instead of involving themselves with the product. Someone has to have a final say on the product.&quot;<br /><br />In many startups the &quot;business person&quot; tries to make all product decisions and expects the technical co-founder to just focus on building the product. For some reason, most companies structured like this seem to fail. Developers in this position are often micromanaged and nagged to death or alienated. Even if the company is successful at launching a product, or raising money, they have difficulty expanding the team and lack the core management team needed for expansion.<br /><br />Developers I have spoken to who have worked as technical cofounders with an autocratic technical cofounder often describe the experience as similar to working for a bad client. Successful team where the developer was not heavily involved with the product design and customer are rare.<br /><br />Different people have different leadership and communication styles.<br /><br />Some people are more democratic and will accept input from others and defer to their expertise. Other people have a more autocratic communication style and will insist upon making all the decisions in the organization.<br /><br />I believe that decisions in an organization should be made by the people with the 1&gt; information and 2&gt; expertise to best make then decision.<br /><br />Saying &quot;one person needs to be responsible&quot; or &quot;each person much have a well defined fiefdom&quot; is conceptually simple but sacrifices organizational performance for simplicity in organizational structure. Saying &quot;this person is responsible for marketing, and he is responsible for technology&quot; divides decision marketing by roles.<br /><br />As an example, a hypothetical modern internet marketing campaign might require twitter/facebook integration with a web application, analytics functionality measuring the effectiveness of the marketing technique and A/B testing to optimize the marketing technique. Is this marketing campaign &quot;responsibility&quot; of engineering or the responsibility of marketing? Achieving even simple corporate goals requires behavior and decision making which cut across firm boundaries and roles.<br /><br />&quot;Responsibilities&quot; and &quot;decision making authority&quot; in an effective organization are delegated on the basis by expertise and knowledge, rather than by functional roles.<br /><br />You have to ask<br />1&gt; Which person or group has the knowledge to best make this decision<br />2&gt; Who has the expertise to make this decision<br /><br />On matters of design, defer decisions to a designer.<br /><br />Often a decision cuts across functional boundaries. A product feature decision requires<br /><br />1&gt; An conceptualization of the customer/user<br />2&gt; Ability to estimate the engineering complexity of the feature<br />3&gt; A set of criteria against which to evaluate the decision being made (what are the goals of the organization? Increase LTV, customer acquisition, reducing churn rates, etc...<br /><br />The first is a product manager/ customer development role. The second is an engineering role. The third is an executive role. It is the role of the executive to set organizational goals and define the criteria against which decisions will be judged.<br /><br />Decisions will be best made when the expertise (product/company Independent) and knowledge (product/company specific) required to make the decision are possessed by a single person. In the absence of an ubermensch who has broad company/product specific knowledge and an extremely high level of skill/expertise in multiple domains, decisions will be made by groups.<br /><br />MBA: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;</div><div class="action_bar" id="__w2_TqoPozU_answer_actions"><span id="ld_Lg8Tya_2628"><a class="view_comments supp " href="#" id="__w2_qJHdkmL_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2629"><a class="answer_permalink" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/answer/Brandon-Smietana"><span class="datetime" id="__w2_OMX3VGT_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2710"></span></span></div><div id="ld_Lg8Tya_2630"><div class="comments answer_comments hidden" id="__w2_Ur3hUJl_answer_comments"><div id="ld_Lg8Tya_2770"><div id="ld_Lg8Tya_2813"><a name="comment276440"></a><div class="comment p0_5 br5 featured_comment" id="__w2_xBeyz7u_comment"><div class="comment_contents"><p class="comment_text">Also, one of these two people should be a paramedic or at least have first aid training because someone just got BURNED.</p><p class="action_bar"><a class="user" href="/Yishan-Wong">Yishan Wong</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_NTDYAg0_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2814"><div class="comment p0_5"><small><a class="light" href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2490"><div class="feed_item stream_feed_item p1" id="__w2_cXyi1wd_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2521"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2551"><span id="ld_Lg8Tya_2741"></span><a class="question_link" href="/What-are-some-of-the-best-books-on-behavioral-investing" id="__w2_oCibh2t_link"><span id="ld_Lg8Tya_2742"></span>What are some of the best books on behavioral investing?</a></span></h2></div></div><div id="ld_Lg8Tya_2522"><div class="feed_item_answer answer_text" id="__w2_LUxXOWP_answer"><div class="rating_buttons"><div id="__w2_LUxXOWP_answer_voting"><div id="ld_Lg8Tya_2631"><div class="rating_buttons"><div class="rating_options" id="__w2_P8LqXMl_buttons"><a class="lil_button rate_up" href="#" id="__w2_P8LqXMl_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_P8LqXMl_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_LUxXOWP_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_LUxXOWP_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_nCApZa4_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_nCApZa4_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_nCApZa4_menu_contents"> </div></div></span><div id="__w2_LUxXOWP_answer_voters"><div id="ld_Lg8Tya_2632"></div></div></div><div id="ld_Lg8Tya_2633"></div><div id="ld_Lg8Tya_2634">These books are deceptively titled, but are actually about behavior finance.<br /><br /><b>Inside the Investor&#039;s Brain: The Power of Mind Over Money</b> <a href="http://amzn.to/eNwqkV" rel="nofollow" target="_blank" class="external_link">http://amzn.to/eNwq<wbr />kV</a><br /><br /><b>MarketPsych: How to Manage Fear and Build Your Investor Identity </b><a href="http://amzn.to/hytSiB" rel="nofollow" target="_blank" class="external_link">http://amzn.to/h<wbr />ytSiB</a></div><div class="action_bar" id="__w2_LUxXOWP_answer_actions"><span id="ld_Lg8Tya_2635"><a class="view_comments supp " href="#" id="__w2_L5K48a7_view_comment_link">4 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2636"><a class="answer_permalink" href="/What-are-some-of-the-best-books-on-behavioral-investing/answer/Brandon-Smietana"><span class="datetime" id="__w2_dciSVOs_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2711"></span></span></div><div id="ld_Lg8Tya_2637"><div class="comments answer_comments hidden" id="__w2_bgg5E8h_answer_comments"><div id="ld_Lg8Tya_2771"><div id="ld_Lg8Tya_2815"><a name="comment267015"></a><div class="comment p0_5 br5 featured_comment" id="__w2_JngVgyV_comment"><div class="comment_contents"><p class="comment_text">Has anyone actually shown consistently higher returns using behavioral investing? Or in other words, is there evidence that &quot;predictable irrationality&quot; provides enough of an investing edge given all the other noise sources that might swamp it out?</p><p class="action_bar"><a class="user" href="/Venkatesh-Rao">Venkatesh Rao</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_PcpfrsT_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2816"><a name="comment268421"></a><div class="comment p0_5 br5 featured_comment" id="__w2_WNcz7QY_comment"><div class="comment_contents"><p class="comment_text">I spoke to the guy who runs the Market Psych hedge fund and he said he was making a few dozen basis points a month per stock, using sentiment data.<br /><br />It definitely used extensively in HFT.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_fAZ10Qe_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2817"><a name="comment268426"></a><div class="comment p0_5 br5 featured_comment" id="__w2_FAKq7cU_comment"><div class="comment_contents"><p class="comment_text">Personally, I believe that small cap stocks are more susceptible to news related price changes. However, I have not run any tests on this theory.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_CTMBpCF_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2818"><a name="comment280274"></a><div class="comment p0_5 br5 featured_comment" id="__w2_e9erhld_comment"><div class="comment_contents"><p class="comment_text">This answer appears to be primarily self-promotional. See <span class="qlink_container"><a href="/Why-are-answers-on-Quora-collapsed">Why are answers on Quora marked as Not Helpful?</a></span></p><p class="action_bar"><a class="user" href="/Marius-Kempe">Marius Kempe</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_IWyBIcW_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2819"><div class="comment p0_5"><small><a class="light" href="/What-are-some-of-the-best-books-on-behavioral-investing/all_comments/Brandon-Smietana">View All 4 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2491"><div class="feed_item stream_feed_item p1" id="__w2_qckycx7_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2523"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2552"><span id="ld_Lg8Tya_2743"></span><a class="question_link" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market" id="__w2_ahgi799_link"><span id="ld_Lg8Tya_2744"></span>What are some good ways to get new angel investors into the market?</a></span></h2></div></div><div id="ld_Lg8Tya_2524"><div class="feed_item_answer answer_text" id="__w2_oTooBjF_answer"><div class="rating_buttons"><div id="__w2_oTooBjF_answer_voting"><div id="ld_Lg8Tya_2638"><div class="rating_buttons"><div class="rating_options" id="__w2_KO9V8su_buttons"><a class="lil_button rate_up" href="#" id="__w2_KO9V8su_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_KO9V8su_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_oTooBjF_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_oTooBjF_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_LfQER6V_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_LfQER6V_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_LfQER6V_menu_contents"> </div></div></span><div id="__w2_oTooBjF_answer_voters"><div id="ld_Lg8Tya_2639"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Mbwana-Alliy">Mbwana Alliy</a></span></div></div></div><div id="ld_Lg8Tya_2640"></div><div id="ld_Lg8Tya_2641">I have seen studies suggesting that seed stage investments as an asset class have a 30% rate of return. <br /><br />However, most investors are not properly diversified enough. Many investors do not have enough cash to build a diversified angel portfolio. If you remove the 1-2 top returning companies in a 30 company portfolio, the rate of return goes to zero.<br /><br />Most investors are also suffer adverse selection and many of the prime companies are increasing going through groups like Angel List or are syndicated among a very small group of &#039;super angel&#039; investors.<br /><br />The best model I have seen, is for high profile investors or network hubs to receive cheap/free equity for allowing the companies to put that person&#039;s name on their advisor board. The people on the advisor board then try to push the company on angels in their network.<br /><br />This strategy seems to work very well for certain people, both in LA and in SV.<br /><br />&quot;Active Investors&quot; who can generate early customers for a company or who can recruit capital or employees are also in a position to extract cheap/free equity and build a diversified portfolio.<br /><br />In general, investing human capital is better for both the investor and the company and produces better returns to the investor than putting money in the company. The best way to create angel investors is to increase the opportunities for entrepreneurs to network with the wider community of companies and people.</div><div class="action_bar" id="__w2_oTooBjF_answer_actions"><span id="ld_Lg8Tya_2642"><a class="view_comments supp " href="#" id="__w2_VOWWdsO_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2643"><a class="answer_permalink" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market/answer/Brandon-Smietana"><span class="datetime" id="__w2_knEyPbM_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2712"></span></span></div><div id="ld_Lg8Tya_2644"><div class="comments answer_comments hidden" id="__w2_Ai62EzV_answer_comments"><div id="ld_Lg8Tya_2772"><span id="ld_Lg8Tya_2820"><div class="comment p0_5"><small><a class="light" href="/What-are-some-good-ways-to-get-new-angel-investors-into-the-market/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2492"><div class="feed_item stream_feed_item p1" id="__w2_WTBKhnC_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2525"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2553"><span id="ld_Lg8Tya_2745"></span><a class="question_link" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating" id="__w2_z7Mh9NE_link"><span id="ld_Lg8Tya_2746"></span>I believe that VC is for lesser men. Are my ideals self-defeating?</a></span></h2></div></div><div id="ld_Lg8Tya_2526"><div class="feed_item_answer answer_text" id="__w2_DXW0vLO_answer"><div class="rating_buttons"><div id="__w2_DXW0vLO_answer_voting"><div id="ld_Lg8Tya_2645"><div class="rating_buttons"><div class="rating_options" id="__w2_dTxrfnc_buttons"><a class="lil_button rate_up" href="#" id="__w2_dTxrfnc_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_dTxrfnc_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_DXW0vLO_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_DXW0vLO_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_BirQxZe_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_BirQxZe_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_BirQxZe_menu_contents"> </div></div></span><div id="__w2_DXW0vLO_answer_voters"><div id="ld_Lg8Tya_2646"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Hunter-Peress">Hunter Peress</a></span></div></div></div><div id="ld_Lg8Tya_2647"></div><div id="ld_Lg8Tya_2648">The majority of successful companies do not receive any VC funding. Less than 10% of companies that IPO took on early stage private equity. Approximately 70% of companies that IPO took on private equity investment at some point (mostly in late stage &#039;growth private equity&#039;).<br /><br />Walmart was in a highly capital intensive industry with low margins and never required venture capital. For profitable companies with positive cash flows, bank loans may have a lower cost of capital compared to selling equity.<br /><br />Early stage venture capital is a &quot;Silicon Valley&quot; thing and most successful entrepreneurs build their companies without VCs.<br /><br />By the time your company has enough customers to have easy access to venture capital, most companies will not need it anymore. If you are in an industry like software, which low has capital costs and 100% margins, then VC may not be appropriate for you.<br /><br />Most successful companies do not achieve the scale required to return liquidity to their investors and therefore venture capital is not appropriate for the majority of entrepreneurs and their companies. Building a 15 million dollar a year consulting company that throws of a few million a year in profits is great for the founder, but not an appropriate target for VC investment.<br /><br />In some industries, building out the sales distribution channel is more expensive than building the product and VC may be appropriate.<br /><br />In general, people are too willing to take on outside investment, even if they do not need it and have no use for it. I spoke with a social game CEO who has a profitable flash games company. He had VC money shoved down his throat. He said &quot;I dont regret taking VC, but I regret spending the money.&quot;<br /><br />I would recommend reading,<br /><br /><b>Raising Venture Capital for the Serious Entrepreneur </b><a href="http://amzn.to/hPdFp0" rel="nofollow" target="_blank" class="external_link">http://amzn.<wbr />to/hPdFp0</a><br /><br />Do not let anyone in Silicon Valley tell you that you are not a real company if you do not take on venture capital. VC funded companies make the news and people gossip about valuations. However, for every successful venture backed company there are three dozen &quot;quietly profitable&quot; companies.</div><div class="action_bar" id="__w2_DXW0vLO_answer_actions"><span id="ld_Lg8Tya_2649"><a class="view_comments supp " href="#" id="__w2_n17zbNb_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2650"><a class="answer_permalink" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating/answer/Brandon-Smietana"><span class="datetime" id="__w2_u0vEW4t_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2713"></span></span></div><div id="ld_Lg8Tya_2651"><div class="comments answer_comments hidden" id="__w2_CjIAsch_answer_comments"><div id="ld_Lg8Tya_2773"><span id="ld_Lg8Tya_2821"><div class="comment p0_5"><small><a class="light" href="/I-believe-that-VC-is-for-lesser-men-Are-my-ideals-self-defeating/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2493"><div class="feed_item stream_feed_item p1" id="__w2_EqMp4mg_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2527"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2554"><span id="ld_Lg8Tya_2747"></span><a class="question_link" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks" id="__w2_ozmJWr3_link"><span id="ld_Lg8Tya_2748"></span>Why would Palantir go after WikiLeaks?</a></span></h2></div></div><div id="ld_Lg8Tya_2528"><div class="feed_item_answer answer_text" id="__w2_knTw2FV_answer"><div class="rating_buttons"><div id="__w2_knTw2FV_answer_voting"><div id="ld_Lg8Tya_2652"><div class="rating_buttons"><div class="rating_options" id="__w2_ROM9Lkl_buttons"><a class="lil_button rate_up" href="#" id="__w2_ROM9Lkl_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_ROM9Lkl_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_knTw2FV_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_knTw2FV_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_pmhWtFf_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_pmhWtFf_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_pmhWtFf_menu_contents"> </div></div></span><div id="__w2_knTw2FV_answer_voters"><div id="ld_Lg8Tya_2653"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">13</strong> votes</span> by <a class="user" href="/Craig-Montuori">Craig Montuori</a>, <a class="user" href="/Ryan-Borek">Ryan Borek</a>, <a class="user" href="/Cinders-Holmes">Cinders Holmes</a>, <a class="more_link" href="#" id="__w2_gC4JnBC_view_all_link">(more)</a></span></div></div></div><div id="ld_Lg8Tya_2654"></div><div id="ld_Lg8Tya_2655">This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br /><br /><b>&quot;You have to respond to Wikileaks immediately, by giving us massive amounts of money for our software and consulting services. You cannot wait to write us a massive blank check, because the threat of Wikileaks is too great.&quot;<br /></b><br />Palantir&#039;s management would have to be incompetent to not try to capitalize on Wikileaks.<br /><br />More disturbing than Palantir&#039;s actions, is that the slides suggest that the US government should use Palantir&#039;s software to identify and threaten the job security of civilians, on the basis of which political organizations or ideologies they support.</div><div class="action_bar" id="__w2_knTw2FV_answer_actions"><span id="ld_Lg8Tya_2656"><a class="view_comments supp " href="#" id="__w2_cxnqsyz_view_comment_link">1 Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2657"><a class="answer_permalink" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/answer/Brandon-Smietana"><span class="datetime" id="__w2_CFv2Xor_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2714"></span></span></div><div id="ld_Lg8Tya_2658"><div class="comments answer_comments hidden" id="__w2_EAJtjdf_answer_comments"><div id="ld_Lg8Tya_2774"><div id="ld_Lg8Tya_2822"><a name="comment249980"></a><div class="comment p0_5 br5 featured_comment" id="__w2_uCQZIMn_comment"><div class="comment_contents"><p class="comment_text">&quot;We&#039;ll spend our way out of this recession&quot; and what&#039;s a better expenditure than a fighting a political enemy?</p><p class="action_bar"><a class="user" href="/Yaniv-Goldenrand">Yaniv Goldenrand</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_iLUX245_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2823"><div class="comment p0_5"><small><a class="light" href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/all_comments/Brandon-Smietana">View 1 Comment</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2494"><div class="feed_item stream_feed_item p1" id="__w2_cBgCBKv_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2529"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2555"><span id="ld_Lg8Tya_2749"></span><a class="question_link" href="/How-does-having-a-big-ego-correlate-with-success" id="__w2_NdI39xX_link"><span id="ld_Lg8Tya_2750"></span>How does having a big ego correlate with success?</a></span></h2></div></div><div id="ld_Lg8Tya_2530"><div class="feed_item_answer answer_text" id="__w2_iFSfCM4_answer"><div class="rating_buttons"><div id="__w2_iFSfCM4_answer_voting"><div id="ld_Lg8Tya_2659"><div class="rating_buttons"><div class="rating_options" id="__w2_XYTIMHv_buttons"><a class="lil_button rate_up" href="#" id="__w2_XYTIMHv_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_XYTIMHv_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_iFSfCM4_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_iFSfCM4_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_FLIR0ye_link"><span class="rep" id="__w2_FLIR0ye_sig">I was standing right next to Ste...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_FLIR0ye_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_FLIR0ye_menu_contents"> </div></div></span><div id="__w2_iFSfCM4_answer_voters"><div id="ld_Lg8Tya_2660"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">3</strong> votes</span> by <a class="user" href="/Seb-Paquet">Seb Paquet</a>, <a class="user" href="/Joey-Flores">Joey Flores</a> and <a class="user" href="/Murtaza-Ali-Akbar">Murtaza Ali Akbar</a></span></div></div></div><div id="ld_Lg8Tya_2661"></div><div id="ld_Lg8Tya_2662">Arrogance is a critical factor for career success in many industries.<br /><br />Most people tell themselves &quot;I dont know if I can do this&quot; and they never try. Others have the arrogance to attempt things that they have not tried before.<br /><br />Building a history of success, without prior success requires an uncommon level of self-efficacy.</div><div class="action_bar" id="__w2_iFSfCM4_answer_actions"><span id="ld_Lg8Tya_2663"><a class="view_comments supp " href="#" id="__w2_PMuG8KW_view_comment_link">2 Comments</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2664"><a class="answer_permalink" href="/How-does-having-a-big-ego-correlate-with-success/answer/Brandon-Smietana"><span class="datetime" id="__w2_WEdiuzZ_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2715"></span></span></div><div id="ld_Lg8Tya_2665"><div class="comments answer_comments hidden" id="__w2_OQQ4Xxr_answer_comments"><div id="ld_Lg8Tya_2775"><div id="ld_Lg8Tya_2824"><a name="comment265369"></a><div class="comment p0_5 br5 featured_comment" id="__w2_ONXKMWY_comment"><div class="comment_contents"><p class="comment_text">Don&#039;t confuse arrogance with confidence.</p><p class="action_bar"><a class="user" href="/Justin-Maxwell">Justin Maxwell</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_p7QlKWJ_datespan">Insert a dynamic date here</span></p></div></div></div><div id="ld_Lg8Tya_2825"><a name="comment265672"></a><div class="comment p0_5 br5 featured_comment" id="__w2_XQxfkMy_comment"><div class="comment_contents"><p class="comment_text">What you call confidence, other will call arrogance.</p><p class="action_bar"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="bullet"> &bull; </span><span class="datetime" id="__w2_gGX6mNP_datespan">Insert a dynamic date here</span></p></div></div></div><span id="ld_Lg8Tya_2826"><div class="comment p0_5"><small><a class="light" href="/How-does-having-a-big-ego-correlate-with-success/all_comments/Brandon-Smietana">View All 2 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2495"><div class="feed_item stream_feed_item p1" id="__w2_eQHJqLC_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2531"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2556"><span id="ld_Lg8Tya_2751"></span><a class="question_link" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy" id="__w2_JRWC0qj_link"><span id="ld_Lg8Tya_2752"></span>If you had to teach yourself math from basic algebra to high level mathematics, what would be your strategy?</a></span></h2></div></div><div id="ld_Lg8Tya_2532"><div class="feed_item_answer answer_text" id="__w2_Ik0b7U6_answer"><div class="rating_buttons"><div id="__w2_Ik0b7U6_answer_voting"><div id="ld_Lg8Tya_2666"><div class="rating_buttons"><div class="rating_options" id="__w2_LcwMlBL_buttons"><a class="lil_button rate_up" href="#" id="__w2_LcwMlBL_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_LcwMlBL_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_Ik0b7U6_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Ik0b7U6_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_SwGWur0_link"><span class="rep" id="__w2_SwGWur0_sig">Hilbert Spaces, Differential Geo...</span></span><div class="hover_menu hidden" style="display: none" id="__w2_SwGWur0_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_SwGWur0_menu_contents"> </div></div></span><div id="__w2_Ik0b7U6_answer_voters"><div id="ld_Lg8Tya_2667"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Bob-Hancock">Bob Hancock</a></span></div></div></div><div id="ld_Lg8Tya_2668"></div><div id="ld_Lg8Tya_2669">For pure mathematics I would start with:<br /><br /><b>Mathematics: Its Content, Methods and Meaning</b> by Kolmogorov <a href="http://amzn.to/bZJ1gk" rel="nofollow" target="_blank" class="external_link">http://amzn<wbr />.to/bZJ1gk</a><br /><br /><b>The Skeleton Key of Mathematics </b><a href="http://amzn.to/e7mHe3" rel="nofollow" target="_blank" class="external_link">http://amzn.to/e7mHe3</a><br /><br />For exciting and useful applied mathematics at a basic level start reading David G. Luenbergers&#039;s books.  Particularly,<br /><br /><b>Investment Science</b>  <a href="http://amzn.to/9D2JWz" rel="nofollow" target="_blank" class="external_link">http://amzn.to/9D2JWz</a><br /><br /><b>Information Science</b> <a href="http://amzn.to/ebaxrX" rel="nofollow" target="_blank" class="external_link">http://amzn.to/eb<wbr />axrX</a><br /><br />Investment Science and Information Science are two of my favorite mathematics related books. They have also been the most useful to me.</div><div class="action_bar" id="__w2_Ik0b7U6_answer_actions"><span id="ld_Lg8Tya_2670"><a class="view_comments supp " href="#" id="__w2_bNoe7Sl_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2671"><a class="answer_permalink" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy/answer/Brandon-Smietana"><span class="datetime" id="__w2_hCK2NMF_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2716"></span></span></div><div id="ld_Lg8Tya_2672"><div class="comments answer_comments hidden" id="__w2_Wv0ScMA_answer_comments"><div id="ld_Lg8Tya_2776"><span id="ld_Lg8Tya_2827"><div class="comment p0_5"><small><a class="light" href="/If-you-had-to-teach-yourself-math-from-basic-algebra-to-high-level-mathematics-what-would-be-your-strategy/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2496"><div class="feed_item stream_feed_item p1" id="__w2_MK0JM9w_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2533"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2557"><span id="ld_Lg8Tya_2753"></span><a class="question_link" href="/Why-get-a-409A-valuation" id="__w2_IUnPudf_link"><span id="ld_Lg8Tya_2754"></span>Why get a 409A valuation? </a></span></h2></div></div><div id="ld_Lg8Tya_2534"><div class="feed_item_answer answer_text" id="__w2_FrtiV6C_answer"><div class="rating_buttons"><div id="__w2_FrtiV6C_answer_voting"><div id="ld_Lg8Tya_2673"><div class="rating_buttons"><div class="rating_options" id="__w2_OyjjJIr_buttons"><a class="lil_button rate_up" href="#" id="__w2_OyjjJIr_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_OyjjJIr_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_FrtiV6C_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_FrtiV6C_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_T7nkSNH_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_T7nkSNH_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_T7nkSNH_menu_contents"> </div></div></span><div id="__w2_FrtiV6C_answer_voters"><div id="ld_Lg8Tya_2674"></div></div></div><div id="ld_Lg8Tya_2675"></div><div id="ld_Lg8Tya_2676">To avoid being taxed at 90% as a tax penalties for under-pricing the strike price of employee stock options.<br /><br />The federal government will take 20% penalty tax on stock grants if they were under-priced. CA will take another 20%.<br /><br />Today most startups are issuing restricted stock to avoid 409A.</div><div class="action_bar" id="__w2_FrtiV6C_answer_actions"><span id="ld_Lg8Tya_2677"><a class="view_comments supp " href="#" id="__w2_xx33eSd_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2678"><a class="answer_permalink" href="/Why-get-a-409A-valuation/answer/Brandon-Smietana"><span class="datetime" id="__w2_ondWfin_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2717"></span></span></div><div id="ld_Lg8Tya_2679"><div class="comments answer_comments hidden" id="__w2_b0gYBI7_answer_comments"><div id="ld_Lg8Tya_2777"><span id="ld_Lg8Tya_2828"><div class="comment p0_5"><small><a class="light" href="/Why-get-a-409A-valuation/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2497"><div class="feed_item stream_feed_item p1" id="__w2_eta7AAb_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2535"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2558"><span id="ld_Lg8Tya_2755"></span><a class="question_link" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for" id="__w2_OejiZm6_link"><span id="ld_Lg8Tya_2756"></span>What kinds of &#039;defensibility&#039; of a business model are most VC&#039;s/investors looking for?</a></span></h2></div></div><div id="ld_Lg8Tya_2536"><div class="feed_item_answer answer_text" id="__w2_dJby59e_answer"><div class="rating_buttons"><div id="__w2_dJby59e_answer_voting"><div id="ld_Lg8Tya_2680"><div class="rating_buttons"><div class="rating_options" id="__w2_RvPed5m_buttons"><a class="lil_button rate_up" href="#" id="__w2_RvPed5m_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_RvPed5m_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_dJby59e_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_dJby59e_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_tDUT7Hk_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_tDUT7Hk_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_tDUT7Hk_menu_contents"> </div></div></span><div id="__w2_dJby59e_answer_voters"><div id="ld_Lg8Tya_2681"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">1</strong> vote</span> by <a class="user" href="/Erbil-Karaman">Erbil Karaman</a></span></div></div></div><div id="ld_Lg8Tya_2682"></div><div id="ld_Lg8Tya_2683">For most kinds of businesses, defensibility is illusionary. Investors are looking for the illusionary kind of defensibility that looks good on paper, but which exists for only a very small number of real businesses.<br /><br />Patents are almost worthless for protection. They are good for retaliation against patent lawsuits by competition and for extracting licensing fees. Five years from now, when your patent is granted, your company will be successful or it will be dead. However, some investors like patents, while other investors feel that they are worthless or irrelevant. Patents in material science are useful, patents in software are worthless. <br /><br />Defensibility and investor expectations for defensibility are highly market dependent.</div><div class="action_bar" id="__w2_dJby59e_answer_actions"><span id="ld_Lg8Tya_2684"><a class="view_comments supp " href="#" id="__w2_UaRODQD_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2685"><a class="answer_permalink" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for/answer/Brandon-Smietana"><span class="datetime" id="__w2_jTAvvc4_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2718"></span></span></div><div id="ld_Lg8Tya_2686"><div class="comments answer_comments hidden" id="__w2_k9kap8J_answer_comments"><div id="ld_Lg8Tya_2778"><span id="ld_Lg8Tya_2829"><div class="comment p0_5"><small><a class="light" href="/What-kinds-of-defensibility-of-a-business-model-are-most-VCs-investors-looking-for/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2498"><div class="feed_item stream_feed_item p1" id="__w2_lQ8xkAl_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2537"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2559"><span id="ld_Lg8Tya_2757"></span><a class="question_link" href="/Will-Dave-Morins-slow-product-movement-be-successful" id="__w2_vkEbnof_link"><span id="ld_Lg8Tya_2758"></span>Will Dave Morin&#039;s &quot;slow product&quot; movement be successful?</a></span></h2></div></div><div id="ld_Lg8Tya_2538"><div class="feed_item_answer answer_text" id="__w2_buwySXl_answer"><div class="rating_buttons"><div id="__w2_buwySXl_answer_voting"><div id="ld_Lg8Tya_2687"><div class="rating_buttons"><div class="rating_options" id="__w2_FnEsMmm_buttons"><a class="lil_button rate_up" href="#" id="__w2_FnEsMmm_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_FnEsMmm_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_buwySXl_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_buwySXl_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_N998xCZ_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_N998xCZ_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_N998xCZ_menu_contents"> </div></div></span><div id="__w2_buwySXl_answer_voters"><div id="ld_Lg8Tya_2688"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a> and <a class="user" href="/Bob-Scirpo">Bob Scirpo</a></span></div></div></div><div id="ld_Lg8Tya_2689"></div><div id="ld_Lg8Tya_2690">Slow is great, but only if you have revenues. If you are an iphone photosharing application; then slow means you can only survive for as long as venture capitalists are willing to pump more money into the company.<br /><br />Even if the company exits at $250 million in ten years, the liquidation preferences for the preferred will be piled so high that there will be nothing left for the employees and management (like Slide).<br /><br />Digg had 15 million a year in revenue at peak, but have never been profitable. Then traffic fell by 50% after the user numbers peaked.<br /><br />A &quot;slow&quot; company can make money for the founders, but only if they achieve a high valuation and sell off common stock to investors (etc. &quot;take money off the table&quot;). Otherwise the only way a company without revenues can generate returns for its investors is if it is flipped.<br /><br />A &quot;slow company&quot; does not make sense if backed by venture capital, because the fund partners need to show returns to their LPs within a 15 year period. If the company does a secondary sale and early investors sell their stake to new investors, then maybe a &quot;slow company&quot; could exist.<br /><br />As an investment, I am not sure that a &quot;slow company&quot; makes any sense.<br /><br />By &quot;slow company&quot;, what they mean is &quot;We will build a bunch of crap and something will be successful eventually&quot;. The idea of a &quot;slow company&quot; is probably just a way of putting off pressure to show revenues and traction early in the company&#039;s history.<br /><br />Many successful companies (Paypal, Slide, etc...) were started by entrepreneurs who had no idea what they were doing and who changed markets and products several times.<br /><br />If the private equity bubble pops again, the &quot;slow companies&quot; without revenues are going to be the ones who are hit the hardest.</div><div class="action_bar" id="__w2_buwySXl_answer_actions"><span id="ld_Lg8Tya_2691"><a class="view_comments supp " href="#" id="__w2_p4mRtFE_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2692"><a class="answer_permalink" href="/Will-Dave-Morins-slow-product-movement-be-successful/answer/Brandon-Smietana"><span class="datetime" id="__w2_XX2nKR8_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2719"></span></span></div><div id="ld_Lg8Tya_2693"><div class="comments answer_comments hidden" id="__w2_ofqznug_answer_comments"><div id="ld_Lg8Tya_2779"><span id="ld_Lg8Tya_2830"><div class="comment p0_5"><small><a class="light" href="/Will-Dave-Morins-slow-product-movement-be-successful/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div class="pagedlist_item" id="ld_Lg8Tya_2499"><div class="feed_item stream_feed_item p1" id="__w2_D0dCxSr_item"><div class="e_col w4_5"><div id="ld_Lg8Tya_2539"><div class="feed_item_question"><h2><span id="ld_Lg8Tya_2560"><span id="ld_Lg8Tya_2759"></span><a class="question_link" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers" id="__w2_m9mM5XE_link"><span id="ld_Lg8Tya_2760"></span>If you are an investor for an early stage company, do you place more value on 1MM unique visitor or the ability to convert at 5%+ but only 1000 customers?</a></span></h2></div></div><div id="ld_Lg8Tya_2540"><div class="feed_item_answer answer_text" id="__w2_Q9xXqHb_answer"><div class="rating_buttons"><div id="__w2_Q9xXqHb_answer_voting"><div id="ld_Lg8Tya_2694"><div class="rating_buttons"><div class="rating_options" id="__w2_GIUJ7dq_buttons"><a class="lil_button rate_up" href="#" id="__w2_GIUJ7dq_answer_vote_up_link">&nbsp;</a><a class="lil_button rate_down" href="#" id="__w2_GIUJ7dq_answer_vote_down_link">&nbsp;</a></div></div></div></div></div><div class="feed_item_answer_content answer_content" id="__w2_Q9xXqHb_answer_wrapper"><div class="answer_user"><span class="feed_item_answer_user" id="__w2_Q9xXqHb_answer_user_sig"><a class="user" href="/Brandon-Smietana">Brandon Smietana</a><span class="rep">, </span><span id="__w2_iHMZ5tU_link"><span class="rep">Founder of Symbolic Analytics</span></span><div class="hover_menu hidden" style="display: none" id="__w2_iHMZ5tU_menu"><div class="hover_menu_nub"></div><div class="menu_contents growl_notification" id="__w2_iHMZ5tU_menu_contents"> </div></div></span><div id="__w2_Q9xXqHb_answer_voters"><div id="ld_Lg8Tya_2695"><span class="answer_voters"><span class="answer_voter_callout"><strong class="voter_count">2</strong> votes</span> by <a class="user" href="/J.C.-Hewitt">J.C. Hewitt</a> and <a class="user" href="/Cameron-A.-Ellis">Cameron A. Ellis</a></span></div></div></div><div id="ld_Lg8Tya_2696"></div><div id="ld_Lg8Tya_2697">If you can monetize, then you can reinvest revenues into customer acquisition through search and display advertising. As soon as you can get your cost per customer acquisition below the LTV of your users, you can scale up through display advertising and search advertising channels.<br /><br />Having a repeatable customer acquisition process is more important than the total number of users. Having a CAC below your LTV shows your investors that you have something to spend money on.<br /><br />If you cannot monetize (ex. Twitter), then having a large number of users is the only alternative.<br /><br />If you can convert users, the next thing you want to do is to try different user acquisition channels and determine what is effective for your business. It is more difficult to acquire users profitably at scale without revenues to reinvest into customer acquisition channels.<br /><br />I do not believe that the answer is one or the other. It depends on your customer acquisition channels and depends on whether your channel is SEO or display advertising. Conversion rates do not matter as much for SEO traffic, which is effectively free; where as conversion rates are critical to optimize if your traffic is display or search advertising driven, because increases conversion rates will lower you CAC.<br /><br />Improving your product will improve churn rates.<br />Decreasing churn rates will increase LTV for subscription service<br />Improving your conversion rates will improve (decrease) your CAC<br /><br />What matter is not &quot;conversion rates&quot; or &quot;number of users&quot;, but &quot;number of new users times conversion rate&quot;, because that is the rate of user-base growth. You can either improve the conversion rate or you can improve the number of user coming into customer acquisition channel, but the rate of user growth will be the arithmetic product of those two variables.</div><div class="action_bar" id="__w2_Q9xXqHb_answer_actions"><span id="ld_Lg8Tya_2698"><a class="view_comments supp " href="#" id="__w2_iDOM5rC_view_comment_link">Add Comment</a></span><span class="bullet"> &bull; </span><span id="ld_Lg8Tya_2699"><a class="answer_permalink" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers/answer/Brandon-Smietana"><span class="datetime" id="__w2_jUWuM1S_datespan">Insert a dynamic date here</span></a><span id="ld_Lg8Tya_2720"></span></span></div><div id="ld_Lg8Tya_2700"><div class="comments answer_comments hidden" id="__w2_L2MzkR5_answer_comments"><div id="ld_Lg8Tya_2780"><span id="ld_Lg8Tya_2831"><div class="comment p0_5"><small><a class="light" href="/If-you-are-an-investor-for-an-early-stage-company-do-you-place-more-value-on-1MM-unique-visitor-or-the-ability-to-convert-at-5-but-only-1000-customers/all_comments/Brandon-Smietana">View All 0 Comments</a></small></div></span></div><div class="comment light p0_5">Cannot add comment at this time.</div></div></div></div></div></div></div></div></div><div id="ld_Lg8Tya_2500"><div class="hidden" id="__w2_rJiTA1D_loading"><span class="__wn2_loading"><span class="__wn2_loading_spinner"></span><span class="__wn2_loading_text">Loading...</span></span></div><div class="pager_next action_button" id="__w2_rJiTA1D_more">More</div></div></div></div></div><div class="e_col w2_5 side_col"><div class="row"><div class="e_col w1 p1"><div id="ld_Lg8Tya_2460"><div class="profile_photo"><div id="ld_Lg8Tya_2463"><a href="/Brandon-Smietana"><img class="profile_photo_img" src="http://d2o7bfz2il9cb7.cloudfront.net/main-thumb-6673-100-iQY07uHy4EIxliIOKB2oVtdnn7FsdmZc.jpeg" width="100" alt="Brandon Smietana" height="100" /></a></div></div></div></div><div class="e_col w1_5 side_col p1"><div class="light page_opts row"><div id="ld_Lg8Tya_2461"><ul class="action_list"></ul></div></div></div><div id="ld_Lg8Tya_2462"><div class="row p1"><div class="col mini_count first"><a href="/Brandon-Smietana/followers"><strong>813</strong><br />Followers</a></div><div class="col mini_count "><a href="/Brandon-Smietana/following"><strong>780</strong><br />Following</a></div><div class="col mini_count "><a href="/Brandon-Smietana/mentions"><strong>37</strong><br />@Mentions</a></div></div></div></div><div id="ld_Lg8Tya_2458"><div class="row section p1" id="answers"><strong>Recent Top Answers</strong><div id="ld_Lg8Tya_2465"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">58</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Success/If-I-havent-succeeded-in-my-mid-20s-could-I-be-successful-in-the-rest-of-my-life/answer/Brandon-Smietana">If I haven&#039;t succeeded in my mid 20s, could I be successful in the rest of my life?</a></h2></div><div class="inline" id="__w2_UZ8exrg_truncated"><div id="ld_Lg8Tya_2470"><div class="truncated_thumbnail_holder"></div>Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br />... <a class="more_link" href="#" id="__w2_WBtQUFG_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_UZ8exrg_expanded"><div id="ld_Lg8Tya_2471">Net worth at age 28 has only a slight correlation of 0.13 with your net worth at 33-41.<br /><br />Many entrepreneurs do not achieve an exit until they are in mid thirties to late forties.The percentage of people who succeed before they are 35 is very low. People in their early thirties tend to be on their third or fourth company and still have not achieved an exit yet.<br /><br />Also, many people who &quot;Succeed&quot; early on seem to spend all their money and are not successful at 30. Many people have flipped web-applications for 1 to 3 million in their early 20s and most of them do not know how to invest. Many people live above their level of income and end up spending the money by the time they are 30. The natural tendency of most Americans is towards debt (negative savings rate).<br /><br />Most of the people I have met who were successful in their 20s, were unsuccessful by the time they were in their thirties. This may constitute the majority of people who are &quot;successful&quot; in their 20s, although I am sure there are exceptions.<br /><br />One person built a successful social game and started to make several hundred thousand dollars a year overnight. However, instead of focusing on what made him successful, he was buying cars and traveling and his competitors annihilated his company and he lost his revenue source.<br /><br />Financial success begets laziness. Laziness begets failure. It is the virtuous cycle.</div></div></div></div></div><div id="ld_Lg8Tya_2466"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">14</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Palantir-Technologies/Why-would-Palantir-go-after-WikiLeaks/answer/Brandon-Smietana">Why would Palantir go after WikiLeaks?</a></h2></div><div class="inline" id="__w2_aaEtH66_truncated"><div id="ld_Lg8Tya_2472"><div class="truncated_thumbnail_holder"></div>This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br />... <a class="more_link" href="#" id="__w2_Y8R4G1E_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_aaEtH66_expanded"><div id="ld_Lg8Tya_2473">This is a business issue not a moral one. The US federal government is Palantir&#039;s largest customer. The message of these slides is very clear;<br /><br /><b>&quot;You have to respond to Wikileaks immediately, by giving us massive amounts of money for our software and consulting services. You cannot wait to write us a massive blank check, because the threat of Wikileaks is too great.&quot;<br /></b><br />Palantir&#039;s management would have to be incompetent to not try to capitalize on Wikileaks.<br /><br />More disturbing than Palantir&#039;s actions, is that the slides suggest that the US government should use Palantir&#039;s software to identify and threaten the job security of civilians, on the basis of which political organizations or ideologies they support.</div></div></div></div></div><div id="ld_Lg8Tya_2467"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">14</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/In-a-two-person-team-should-one-person-be-in-charge-of-the-features-and-product-strategy/answer/Brandon-Smietana">In a two person team, should one person be in charge of the features and product strategy?</a></h2></div><div class="inline" id="__w2_loagcRi_truncated"><div id="ld_Lg8Tya_2474"><div class="truncated_thumbnail_holder"></div>This question is an attempt at groping for moral authority.<br />... <a class="more_link" href="#" id="__w2_WBN5B3s_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_loagcRi_expanded"><div id="ld_Lg8Tya_2475">This question is an attempt at groping for moral authority.<br /><br />MBA/Lawyer: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;<br /><br />&quot;It would streamline decision making if everyone would just do what I tell them instead of involving themselves with the product. Someone has to have a final say on the product.&quot;<br /><br />In many startups the &quot;business person&quot; tries to make all product decisions and expects the technical co-founder to just focus on building the product. For some reason, most companies structured like this seem to fail. Developers in this position are often micromanaged and nagged to death or alienated. Even if the company is successful at launching a product, or raising money, they have difficulty expanding the team and lack the core management team needed for expansion.<br /><br />Developers I have spoken to who have worked as technical cofounders with an autocratic technical cofounder often describe the experience as similar to working for a bad client. Successful team where the developer was not heavily involved with the product design and customer are rare.<br /><br />Different people have different leadership and communication styles.<br /><br />Some people are more democratic and will accept input from others and defer to their expertise. Other people have a more autocratic communication style and will insist upon making all the decisions in the organization.<br /><br />I believe that decisions in an organization should be made by the people with the 1&gt; information and 2&gt; expertise to best make then decision.<br /><br />Saying &quot;one person needs to be responsible&quot; or &quot;each person much have a well defined fiefdom&quot; is conceptually simple but sacrifices organizational performance for simplicity in organizational structure. Saying &quot;this person is responsible for marketing, and he is responsible for technology&quot; divides decision marketing by roles.<br /><br />As an example, a hypothetical modern internet marketing campaign might require twitter/facebook integration with a web application, analytics functionality measuring the effectiveness of the marketing technique and A/B testing to optimize the marketing technique. Is this marketing campaign &quot;responsibility&quot; of engineering or the responsibility of marketing? Achieving even simple corporate goals requires behavior and decision making which cut across firm boundaries and roles.<br /><br />&quot;Responsibilities&quot; and &quot;decision making authority&quot; in an effective organization are delegated on the basis by expertise and knowledge, rather than by functional roles.<br /><br />You have to ask<br />1&gt; Which person or group has the knowledge to best make this decision<br />2&gt; Who has the expertise to make this decision<br /><br />On matters of design, defer decisions to a designer.<br /><br />Often a decision cuts across functional boundaries. A product feature decision requires<br /><br />1&gt; An conceptualization of the customer/user<br />2&gt; Ability to estimate the engineering complexity of the feature<br />3&gt; A set of criteria against which to evaluate the decision being made (what are the goals of the organization? Increase LTV, customer acquisition, reducing churn rates, etc...<br /><br />The first is a product manager/ customer development role. The second is an engineering role. The third is an executive role. It is the role of the executive to set organizational goals and define the criteria against which decisions will be judged.<br /><br />Decisions will be best made when the expertise (product/company Independent) and knowledge (product/company specific) required to make the decision are possessed by a single person. In the absence of an ubermensch who has broad company/product specific knowledge and an extremely high level of skill/expertise in multiple domains, decisions will be made by groups.<br /><br />MBA: &quot;I think that I am open to learning from others, but everyone else should just do what I say.&quot;</div></div></div></div></div><div id="ld_Lg8Tya_2468"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">6</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/Who-are-good-friends-of-Steve-Jobs/answer/Brandon-Smietana">Who are good friends of Steve Jobs?</a></h2></div><div class="inline" id="__w2_wHLooas_truncated"><div id="ld_Lg8Tya_2476"><div class="truncated_thumbnail_holder"></div>Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by th... <a class="more_link" href="#" id="__w2_u6yeX5q_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_wHLooas_expanded"><div id="ld_Lg8Tya_2477">Larry Ellison. Larry Ellison is one of the major factors for why Steve Jobs was able to return to Apple and take control, after he was fired by the board of directors in ~1986.</div></div></div></div></div><div id="ld_Lg8Tya_2469"><div class="feed_item stream_feed_item p1 row"><div class="w0_5 e_col"><div class="big_number_stat"><div class="number">6</div><div class="text">Votes</div></div></div><div class="e_col side_col w2"><div class="feed_item_question"><h2><a href="/How-can-angel-investment-in-DC-be-rapidly-expanded-in-2011/answer/Brandon-Smietana">How can angel investment in DC be rapidly expanded in 2011?</a></h2></div><div class="inline" id="__w2_ugQvuoD_truncated"><div id="ld_Lg8Tya_2478"><div class="truncated_thumbnail_holder"></div><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC....</li></ol> <a class="more_link" href="#" id="__w2_r2ZW2wm_more_link">(more)</a> </div></div><div class="hidden expanded_q_text" id="__w2_ugQvuoD_expanded"><div id="ld_Lg8Tya_2479"><ol><li>Move a bunch of rich people to DC.</li><li>Move a bunch of startups to DC.</li><li>Encourage rich people to join an angel group.</li></ol><br />Also consider<br /><ul><li>publicly funded or city subsidized coworking spaces for startups</li><li>hosting events and inviting speaker to give talks about angel investing and encourage formation of angel investing groups</li><li>encourag the formation of Hackerspaces, either through direct subsidies. Hackerspaces are organized as non-profits. Hackerspaces and coworking spaces rapidly increase the technical base of a cities and accelerate company formation.</li></ul><br />For instance<br /><br /><a href="http://www.angelblog.net/Exit_Strategies_for_Angel_Investors_Video.html" rel="nofollow" target="_blank" class="external_link">http://www.angelblog.net/<wbr />Exit_St...</a><br /><br />Forming angel groups is a very important part of the process of encouraging angel investments. Angel groups are becoming social clubs and are rapidly expanding the capital base available to seed stage companies.</div></div></div></div></div></div></div></div></div></div><div class="footer wrapper"><div class="contents"><div class="footer_nav row"><div class="e_col footer_links w8"><div id="ld_Lg8Tya_2459"><ul class="nav_list"><li class="about"><a href="/about">About</a></li><li class="jobs"><a href="/jobs">Jobs</a></li><li class="privacy"><a href="/about/privacy">Privacy</a></li><li class="tos"><a href="/about/tos">Terms</a></li><li class="press"><a href="/press">Press</a></li><li><span class="bullet"> &bull; </span></li><li class="signup"><a href="/login/index">Login</a></li><li class="signup"><a href="/signup/index">Sign Up</a></li><li class="mobile nav_sub_item"><a href="#" id="__w2_i6DlqXB_mobile_site">Mobile Site</a></li></ul></div></div></div></div></div></div><div class="above_page_banner hidden" id="__w2_PK4rwwz_banner">There are some updates to this page that haven&#039;t been applied yet because you&#039;ve entered some data into a form. 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20
32
  <script type="text/javascript">
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33
  var _gaq = _gaq || [];
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  _gaq.push(['_setAccount', 'UA-16618355-1']);
@@ -30,4 +42,4 @@ webnode2.windowId = "dep13-445855764289437809";
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  ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
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  var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
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  })();
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- </script><script type="text/javascript">_w2timing.preOnLoad = (new Date()).getTime();</script></body></html><!--perf-->
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+ </script></body></html><!--perf--><script>LiveNode.setCurrentVersion(1);</script>
data/test/test_server.rb CHANGED
@@ -38,6 +38,6 @@ class TestServer < MiniTest::Unit::TestCase
38
38
  open("http://#{ADDR}:#{@port}/?p=quora&o=foo") { |f| r = f.read }
39
39
  # bin/bwkfanboy_server -Dd
40
40
  # wget -q -O - '127.0.0.1:9042/\?p=quora&o=foo' | md5
41
- assert_equal('f0816d62c8425241609352a31b221265', Digest::MD5.hexdigest(r))
41
+ assert_equal('0f3f6607768392d69d15621eee815ab3', Digest::MD5.hexdigest(r))
42
42
  end
43
43
  end
metadata CHANGED
@@ -5,8 +5,8 @@ version: !ruby/object:Gem::Version
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5
  segments:
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6
  - 1
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7
  - 3
8
- - 1
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- version: 1.3.1
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+ - 2
9
+ version: 1.3.2
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10
  platform: ruby
11
11
  authors:
12
12
  - Alexander Gromnitsky
@@ -14,7 +14,7 @@ autorequire:
14
14
  bindir: bin
15
15
  cert_chain: []
16
16
 
17
- date: 2011-03-17 00:00:00 +02:00
17
+ date: 2011-03-28 00:00:00 +03:00
18
18
  default_executable: bwkfanboy
19
19
  dependencies:
20
20
  - !ruby/object:Gem::Dependency