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Steve Jobs Giving Big Blue the One-Finger Salute

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Courtesy of Edible Apple, here’s Apple co-founder Steve Jobs giving the finger to the IBM logo in a photo that appears to date from “sometime in the early 80s.”

If you weren’t around or too young to remember those times, the rivalry wasn’t between Apple and Microsoft (in fact, the AppleSoft BASIC in the Apple ][ series of computers was produced under a Microsoft license), but between Apple and IBM, who introduced their Personal Computer, a.k.a. “PC” in 1981. We knew that this rivalry would become quite fierce when Apple fired the first PR salvo with this ad welcoming IBM to the personal computer industry, whose big players at the time were Apple, Radio Shack and Commodore:

welcome_ibm_seriously

I can’t remember if it was former Apple Evangelist (and one of my role models) Guy Kawasaki or former Apple UI guru Bruce “Tog” Tognazzini who made the astute observation that the PC was the responsibility of IBM’s “Entry-Level Systems” division, which it implied that the PC was something you’d use until you decided that you wanted a real computer.

Apple’s relationship with IBM has always been a little bit rocky, first with the rivalry and then with their ill-fated alliance in the 1990s. This alliance produced only one thing I would consider a “semi-success” – the PowerPC chip, which was completely dumped by the end of 2006 – and a number of flops that came from the Taligent and Kaleida projects, including “Pink”, “Blue” and ScriptX (which, unlike Pink and Blue, actually made it to the :half-baked” stage; I actually got to noodle with during my early days at Mackerel Interactive Multimedia). The alliance, which was meant to counter the threat of an increasingly powerful Microsoft never quite made sense to me, nor did it to Guy Kawasaki, who once likened it to two people getting married because they hate the same person.

The nature of the IBM/Apple relationship lives on in the current legal battle between IBM and Apple over Mark Papermaster’s hire, which is why I’m sure Edible Apple found the photo interesting.

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The Star Trek Movie’s Second Trailer

Here it is, the second trailer of J.J. Abrams’ upcoming Star Trek movie, all hellzapoppin’ and complete with an homage to the "chicken run" scene from Rebel Without a Cause.

I’m keeping in mind that it’s the job of the people who produce trailers to make a movie seem more interesting and exciting than it actually might be, but I’m still holding out hope that Abrams has been taking the story-crafting skill he hasn’t been using on the TV series Fringe and pouring it into Trek. I guess we’ll find out in a few months…

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The Star Wars Storybook

It’s a busy day for me: I’m gearing up for my first presentation on behalf of "The Empire", which will happen at Microsoft’s TechDays event in Calgary (Wednesday, December 10th and Thursday, December 11th). More on that in a later post.

In honour of this preparation, I thought: here’s an opportunity to riff on the theme of “The Empire” (and to provide you with some reading material)  — I can present the storybook version of Star Wars, Episode IV: A New Hope. Of course, back in those days, it was known simply as plain ol’ Star Wars.

The book came with a vinyl record that was meant to be played along with the book; I’ve included its audio below in MP3 format:

The voice work on the record is terribly off – whoever’s playing Darth Vader sounds more like Count Dracula, but you have to keep in mind the book was released in 1979, well before Star Wars had firmly established itself as part of the pop culture canon. Enjoy!

star_wars_story_book_part_1
star_wars_story_book_part_2

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Hugh MacLeod at Startup Empire: We’re So F***ed

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startup_empireThe second-last speaker at yesterday’s Startup Empire conference was Hugh MacLeod, whom most of us know for his comics drawn on the back of business cards and his blog, Gaping Void. Here are my notes from his presentation:

Intro

  • It’s easy for an advertising career to tank, especially if you live in New York and drink too much
  • I started drawing comics at bars, on the paper that just happened to conveniently be around: the backs of business cards
  • I’m not in the VC business, nor am I in the tech business
  • I’m greedy — who here’s greedy? [Many hands go up]
  • What really drives us? The "C" word: creativity
  • The reason we work in this field is that we want to build stuff — fun stuff
  • If it pays the bills, so much the better
  • The "we’re so fucked" thing is pretty long term
  • What will get us out of the hole? Creativity. People like yourself, doing and building cool things
  • I’m in my 40s — what motivates me now is seeing bright ambitious kids coming out of the colleges
  • When I was a kid, there was no internet — not even computers! I had to write my term papers on typewriters
  • I want to talk about creativity to the young
  • I now present 12 little tips for you people just getting started

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1. Ignore everybody.

  • When you come up with a really great idea and show it, people won’t get it
  • You yourself might not even get it
  • Imagine the early days of search: “Why would you want to do that?”
  • “Good ideas have lonely childhoods”
  • If you’ve had a good idea, you were probably called a fruitcake at the start
  • Good ideas alter power balances in relationships, which is why many people resist them
  • Your boss doesn’t want you to have a good idea that makes you richer than him
  • Good ideas will meet resistance – not because of the idea, but because of power and hierarchy

2. The idea you have doesn’t have to be that big.

  • Jewish proverb: “A rich man is one who can satisfy his wants”
  • I grew up on TV, watching shows about people who had more than us
  • Fast-forward 20 years later, I get to do what I want every day:
    • Haven’t had to set my alarm clock in years
    • Just me and a couple of pens
  • And yeah, I read Fast Company, BusinessWeek — “business porn magazines” – they feed greed
  • Anyone seen No Country for Old Men? I live in that town!
  • One of the locals is Harry, the master brewer, who moved out there and opened his own bar. He makes $500 a day and is the best businessman I know. He does what he wants and everything he does has some meaning to him.
  • Meaning scales!
  • We owe it to the generations to come to find meaning

03_asshole_venn_diagram

3. Put the hours in.

  • Nothing happens overnight
  • People look at what I do "Aren’t you worried about people ripping you off?" or taking my idea and doing the same thing
  • My response: "I’ve already done 10000 cartoons and 7 years blogging"
  • Inertia stops a lot of people. Know anyone in a dead-end job? Ever been in one? They say "One day, I’m going to open that cheese shop. But right now, I have to write a report…"
  • I have a book coming up. Didn’t quit my job to write it; just woke up an hour earlier every day to write it and posted it on my blog. Penguin eventually contacted me. All I did was put the hours in.

04_hugh_macleod

4. If your business plan relies on you being discovered by a big-shot, you will fail.

  • I once got a book contract offer. The terms in the contract were terrible and I turned it down
  • The publisher, it turned out, was in the business of finding people so desperate to have their moment in the spotlight that they would sign anything
  • We now live in an era of cheap, easy, global media — we don’t need middlemen
  • I’m friends with Rick Segal…but probably because I don’t need venture capital!
  • Where I live in Texas, you can live really cheaply. Part of this is because you run out of things to spend on
  • When I hear about people talking about VCs, I think of people looking to have their sorry asses saved
  • Don’t get me wrong: it’s great to have VC, but it’s even easier when you get one because you don’t really need one
  • "If you’re looking for advice, ask for money; if you’re looking for money, ask for advice.”

5. Do it anyway.

  • You don’t know that your idea is the right one at the right time – no one does!
  • Do it anyway — that’s how great ideas start out
  • Seco0nd-rate ideas are all about the immediate "yes!" response because it keeps them alive longer

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6. Everybody is born creative.

  • “Everybody gets a box of crayons when they’re young .”
  • We turn adolescent and for many of us, somehoe, “our colour gets turned off”
  • Suddenly, it’s not about coloring anymore, but concerns like “Got to get a 3.5 GPA, got to get that job…”
  • Then you get an idea that you can’t turn off
  • It makes you start avoiding your poker buddies
  • Most people get scared off by that idea. Doubt creeps in: "What if I get a bad publisher? What if nobody likes my idea?"
  • That’s not your idea, that’s your grown up boring self fighting that idea
  • Your idea came to you because your soul needs it
  • If you don’t nurture that idea, it dies. It also takes a lot of you with it.

7. The “Sex and Cash” theory.

  • If you have a creative life and you make money doing it: you generally bounce between two kinds of jobs:
    1. The sexy creative job
    2. The one that pays the bills
  • In movie stars’ cases, that means alternating between parts in popular hit movies and critically-acclaimed art films
  • For a photographer, that means alternating between doing work for indie art mages and paying the bills with photo shoots for catalogs
  • Consider Martin Amis: he writes critically acclaimed novels and supplements his income by teaching courses and writing newspaper and magazine articles
  • As for me: I do comics on the back of business cards, and I do work for Microsoft and Dell
  • It’s a balance of artistic sovereignty and making a living
  • “The moment you accept this is when you take off .”

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8. Remain frugal.

  • This particular lesson took me the longest to learn
  • Living in New York City, I was in the top income bracket, for all the good it did. I had so much outgoing cash in rent and other expenses.
  • You can live like a king where I do, in Alpine, Texas quite cheaply
  • I now have “West Texas expenses, New York wages”
  • This is hard to do if you want to be seen in “all the right places”
  • Remember: we become creatives because we want freedom, and that includes freedom from avarice

9. I’m going to skip this one.

  • It’s too corny!
  • [He capitulated later; see the end of this article.]

10. The more talented somebody is, the less they need props.

  • At any advertising agency, it’s always the second-rate art director who’s the first to get the newest model Mac
  • If you go to any magazine office, it’s the second-rate writer keeps an old Remington typewriter on display
  • You see this at startups too: the loft office in the hip neighbourhood with the foosball table
  • Remember: the Gettyburg address was written on borrowed stationery!
  • We use props to hide behind or mask our inadequacies
  • I know a woman who recently IPO’d — she didn’t start in a fancy office, but on her dining room table
  • It’s not the props, it’s the good idea and the effort

11. The best way is not to stand out from the crowd, but avoid the crowd altogether.

  • Bartenders are the great social enablers of New York City
  • No under-50 bartender is really a bartender: they’re actors, musicians, whatever
  • They have plan to become famous photographers, musicians, whatever
  • The thing about the arts to me: what often drives people isn’t just the money or business, but the prestige: “I want to be like that guy, because he’s really privileged”.
  • Ever noticed how few really good writers have blogs? You don’t see literature, you see shit like what I write
  • A lot of authors are enamored of books and the prestige attached to them
  • The worst thing you can do as a creative is fall in love with a privilege model

12. If you can accept the pain, it cannot hurt you.

  • When my sister was born and my mom was in labour, the pain was unbearable — "Why is this happening to me?" she asked
  • The midwife replied: "You’re giving birth to a baby. It’s supposed to be painful."
  • Mom accepted that and got on with the birth
  • Trying to do something worthwhile and creative is really hard
  • As you get older, you realize that pain is part of the process

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9. Okay, here’s point number 9, since you asked: We will fail, but we will be forgiven.

  • Failure is part of the process
  • The important thing really isn’t about reaching the summit, but setting out for it.

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David Cohen at Startup Empire: Boulder and TechStars

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startup_empireAnother afternoon presenter at yesterday’s Startup Empire was David Cohen, founder and Executive Director of TechStars, which provides a unique opportunity for early-stage startups. Here are my notes from his presentation:

Boulder, Colorado

  • Why did I come here today? Because I’m hearing more about Toronto every day
  • I started out in development
    • Did three startups
    • Then went to the dark side: angel investing
    • Started all kinds of companies in all different ways
  • I’m based in Boulder, Colorado
    • Two of my companies are ZOLL Data Systems, Earfeeder
    • One of my startups failed, but there’s no evidence on the net that it ever existed
    • What’s Boulder known for?
      • Mork and Mindy
      • “4:20”
      • Nearby skiing
      • University of Colorado
    • It’s northwest of Denver and has a population of 125,000 – with students! Denver has about 1 million people

VC in Boulder vs. VC in Toronto

  • VC in boulder
    • $311 million in Q1 2008 in Boulder County
    • Taking into account its population of 125,000, that makes for about $2,500 in venture capital for each person in Boulder
  • VC in Toronto
    • $130 million in Q1 2008
    • Taking into account its population of 5.5 million, that makes for about $23 in venture capital for each person in the Toronto area
  • Toronto has a chicken-and-egg problem
  • We learned in Boulder, VC follows innovation
  • A UFO didn’t land in Boulder and drop off VCs
  • There was a strong telecom industry that grew up there (Colorado is the home of telecom and storage)
  • People who got rich off those industries stayed in Boulder and asked "What can I do with this money?"
  • 2nd- and 3rd-time entrepreneurs decided to become angels
  • Most angels are driven by more than just the money
  • Companies in Boulder: Lijit and Newsgator to name a few
  • The VC followed

The TechStars Concept

  • Along with me, other people mentoring at TechStars are:
  • TechStars is a mentorship-driven seed stage investment fund
  • It’s been referred to as "Incubator 2.0, boot camp for entrepreneurs", but to me it’s mentorship-driven
  • The big benefit for companies in the Techstars program is not small amount of money we provide, but the people we surround you with
  • At Techstars, you share ideas early, get the feedback
  • 10 teams of typically young entrepreneurs come to Boulder for the summer
  • If you get in, you get this incredible mentorship experience
  • Mentors spend time with the 10 companies
  • Atmosphere of camaraderie between the companies
  • Companies get integrated into the tech scene
  • Our “New Tech Meetups” are the 2nd largest in US, after NYC
  • We make our companies uncomfortable – we make them pitch often
  • First month: we ask them not to work on their product so much; it’s laregly about learning
  • At the end of program, they get just enough funding to get them to the next point
  • Techstar’s progress so far:
    • 2 summers = 20 companies
    • Only 1 of the 20 companies is now defunct
    • 2 of the 20 companies experienced positive exits (SocialThing, IntenseDebate)
    • 13 of them have acquired angel or VC funding
    • All told, we’ve invested under $600K in 2 years — positive ROI
  • Benefits
    • 40 jobs in Colorado created (probably 40 more elsewhere)
    • AOL set up an office in Boulder after SocialThing acquisition
    • 9 of the 20 companies have stayed in Boulder

Lessons

  • Try not to focus to much on VC. Focus on product and customers
  • Your community can be more powerful than you imagine if it works together
  • Promote your community when you promote your company
  • Mentorship is the scarce resource that matters
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Rick Segal’s Advice at Startup Empire

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“Never ever take the title of CEO,” said Rick Segal between speakers at yesterday’s Startup Empire conference. “We fire CEOs all the time. Be a founder instead.”

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Howard Lindzon at Startup Empire: Why Now is a Good Time to Start Your Startup

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startup_empireLater on in the afternoon at yesterday’s Startup Empire conference, Howard Lindzon took the stage. Howard manages a hedge fund and is the creator of the finance news humour site Wallstrip, which he sold to CBS in May 2007. He also has a very popular financial blog at HowardLindzon.com.

I shot some video asking Howard about his idea of “social leverage”; I’ll post it a litter later on. In the meantime, here are my notes from his presentation, Why Now is a Great Time to Start Your Startup.

The Current Situation

  • Capital, which was so plentiful, is now gone
  • Reminiscent of the real estate bubble in Phoenix (where I live half the time)
  • Really important right now to shut out the noise
  • From 2002 – 2006, it was fun to read Valleywag, TechCrunch and make "me too" products. You can’t do that anymore
  • It’s also a bad time to base products on:
  • Sometimes you have to shelf your ideas for when the times are more suitable for them
  • The headlines are all doom and gloom these days:
    • "Financial Ice Age" – BusinessWeek
    • Startup Depression – Calacanis (I’m not a fan)
  • You must remember that even during good times, 80 to 90% of businesses fail
  • The VC model isn’t broken

Social Leverage

  • Financial leverage has come home to roost
  • We’re in a period of deleveraging: there is no bottom, because we don’t know what everyone owns
  • P/E ratios — it’s all about expectation, people expect less
  • You can’t get what you got six months ago
  • Expectations are in "this ratchet-down mode"
  • I also think that "we’re going into a depression" is crazy talk
  • I’m anti-financial leverage
  • Social leverage is all-powerful
    • Nothing you do in social leverage will haunt you
    • It’s a gift from the likes of Facebook, LinkedIn, Twitter
    • Perhaps you shouldn’t start building social leverage with a blog unless your passion is for writing
    • Start small: work with people
    • Be mindful of the etiquette of social networking tools
    • The time to ask people for something is when they’re least expecting it

Too Small to Fail

  • Wall Street was all about "too big to fail"
  • I’m not seeing signs from the presidents about being small – they seem too concerned with conglomerations and unwilling to bust up things
  • Bailouts just prolong the process
  • This is not a headline, it’s a state of being
  • It’s a great time to start a web-based business
  • If you’ve ever played the board game “Risk”, you know:
    • If you’re starting all your armies in Europe, you’re screwed
    • Start off in New Guinea
  • Consider one of my projects, Stocktwits.com
    • I like to stay in businesses I know
    • Started in Twitter — thought it was dumb in the beginning
    • Guys, this should be about ideas
    • Wrote post about how there should be a message board for stocks using the reputation model in Twitter
    • Twitter allows you some sort of reputation — everything you say is there for people to see
    • Stocktwits — one employee, $30K to start
    • Twitter offers possibilities: dating, betting — supports an ecosytem
  • Be careful in whom you trust
  • Embrace social leverage
  • Be too small to fail: do the one thing you do very well
  • Take as little money as you need; things will get better
  • Ignore the people saying that this is “a new Ice Age” – they’re idiots

Fear

  • Zig while others zag
  • Take a look at this graph, in which the pink line is the Vicks index and the blue is RRSPs: 

    fear_zig_while_others_zag

  • From 2003 – 2005:
    • Fear level low
    • Calacanis’s company, TechCrunch and other stupid tech businesses wree founded when fear was low
  • It’s always a good time to start a web business
    • The truth is that it’s never a good time to start any business
    • Successful business can be started anytime
    • 80 – 90% of businesses fail anytime

Why businesses fail

  • It’s important to have structure right from the beginning
  • Mistakes made at start can come back to haunt you
  • Sometimes partners fight, so rules and agreements at made at the the start are valuable
  • The keys: Structure, funding and realistic valuation
  • When it comes to spreadsheets and plans, keep in mind that it’s important to do one thing, do it well and get that customer – this is far more important than the spreadsheets
  • Make sure you’re fishing where the fish are
    • “Swim near the shark”
    • Be around certain ecosystems

My Advice

  • Social leverage: good
  • Financial leverage: bad
  • Be an expert at something
    • For good or bad: mine is finance
    • "I don’t really like the people in my industry"
    • Applications of my expertise:
  • Investing: more art than science

      Q & A

      How do you balance your day?

      • StockTwits is the only thing I run
      • Knightsbridge pays me to be on the road
      • I’m usually up at 5am
      • Private equity: long hours, long weekends

      How do you make use of social leverage?

      • One example: Fred Wilson
      • Two months invested in reading his blog
      • I found out that Fred was a basketball fan and took him to a Phoenix Suns game
      • We talked business
      • Fred just happened to be friends with Jim Cramer
      • Through Fred, I  met everybody else — I counts it as my “real day 1 “
      • “You make your own luck”

      What are you looking for with companies?

      • I’m more of an angel and a scrapper
      • I want to to be early
      • I want to see a finished product