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Tag: marriage

What I've Changed My Mind on Over the 2010s

I’ve been reading a lot of year-end/decade-end reflections (as one does this time of year) — and while a part of me wanted to #humblebrag about how I got a 🏠/💍/👶 this decade 😇 — I thought it would be more interesting & profound to instead call out 10 worldviews & beliefs I had going into the 2010s that I no longer hold.

  1. Sales is an unimportant skill relative to hard work / being smart
    As a stereotypical “good Asian kid” 🤓, I was taught to focus on nailing the task. I still think that focus is important early in one’s life & career, but this decade has made me realize that everyone, whether they know it or not, has to sell — you sell to employers to hire you, academics/nonprofits sell to attract donors and grant funding, even institutional investors have to sell to their investors/limited partners. Its a skill at least as important (if not more so).
  2. Marriage is about finding your soul-mate and living happily ever after
    Having been married for slightly over half the decade, I’ve now come to believe that marriage is less about finding the perfect soul-mate (the “Hollywood version”) as it is about finding a life partner who you can actively choose to celebrate (despite and including their flaws, mistakes, and baggage). Its not that passionate love is unimportant, but its hard to rely on that alone to make a lifelong partnership work. I now believe that really boring-sounding things like how you make #adulting decisions and compatibility of communication style matter a lot more than things usually celebrated in fiction like the wedding planning, first dates, how nice your vacations together are, whether you can finish each other’s sentences, etc.
  3. Industrial policy doesn’t work
    I tend to be a big skeptic of big government policy — both because of unintended consequences and the risks of politicians picking winners. But, a decade of studying (and working with companies who operate in) East Asian economies and watching how subsidies and economies of scale have made Asia the heart of much of advanced manufacturing have forced me to reconsider. Its not that the negatives don’t happen (there are many examples of China screwing things up with heavy-handed policy) but its hard to seriously think about how the world works without recognizing the role that industrial policy played. For more on how land management and industrial policies impacted economic development in different Asian countries, check out Joe Studwell’s book How Asia Works
  4. Obesity & weight loss are simple — its just calories in & calories out
    From a pure physics perspective, weight gain is a “simple” thermodynamic equation of “calories in minus calories out”. But in working with companies focused on dealing with prediabetes/obesity, I’ve come to appreciate that this “logic” not only ignores the economic and social factors that make obesity a public health problem, it also overlooks that different kinds of foods drive different physiological responses. As an example that just begins to scratch the surface, one very well-controlled study (sadly, a rarity in the field) published in July showed that, even after controlling for exercise and calories, carbs, fat, fiber, and other nutrients present in a meal, diets consisting of processed foods resulted in greater weight-gain than a diet consisting of unprocessed foods
  5. Revering luminaries & leaders is a good thing
    Its very natural to be so compelled by an idea / movement that you find yourself idolizing the people spearheading it. The media feeds into this with popular memoirs & biographies and numerous articles about how you can think/be/act more like [Steve Jobs/Jeff Bezos/Warren Buffett/Barack Obama/etc]. But, over the past decade, I’ve come to feel that this sort of reverence leads to a pernicious laziness of thought. I can admire Steve Jobs for his brilliance in product design but do I want to copy his approach to management or his use of alternative medicine to treat his cancer or condoning how he treated his illegitimate daughter. I think its far better to appreciate an idea and the work of the key people behind it than to equate the piece of work with the person and get sucked in to that cult of personality.
  6. Startups are great place for everyone
    Call it being sucked into the Silicon valley ethos but for a long time I believed that startups were a great place for everyone to build a career: high speed path to learning & responsibility, ability to network with other folks, favorable venture funding, one of the only paths to getting stock in rapidly growing companies, low job seeking risk (since there’s an expectation that startups often fail or pivot). Several years spent working in VC and startups later, and, while I still agree with my list above, I’ve come to believe that startups are really not a great place for most people. The risk-reward is generally not great for all but the earliest of employees and the most successful of companies, and the “startups are great for learning” Kool-aid is oftentimes used to justify poor management and work practices. I still think its a great place for some (i.e. people who can tolerate more risk [b/c of personal wealth or a spouse with a stable high-paying job], who are knowingly optimizing for learning & responsibility, or who are true believers in a startup’s mission), but I frankly think most people don’t fit the bill.
  7. Microaggressions are just people being overly sensitive
    I’ve been blessed at having only rarely faced overt racism (telling me to go back to China 🙄 / or that I don’t belong in this country). It’s a product of both where I’ve spent most of my life (in urban areas on the coasts) and my career/socioeconomic status (its not great to be racist to a VC you’re trying to raise money from 🤑). But, having spent some dedicated time outside of those coastal areas this past decade and speaking with minorities who’ve lived there, I’ve become exposed to and more aware of “microaggressions”, forms of non-overt prejudice that are generally perpetrated without ill intent: questions like ‘so where are you really from?’ or comments like ‘you speak English really well!’. I once believed people complaining about these were simply being overly sensitive, but I’ve since become an active convert to the idea that, while these are certainly nowhere near as awful as overt hate crimes / racism, they are their own form of systematic prejudice which can, over time, grate and eat away at your sense of self-worth.
  8. The Western model (liberal democracy, free markets, global institutions) will reign unchallenged as a model for prosperity
    I once believed that the Western model of (relatively) liberal democracy, (relatively) free markets, and US/Europe-led global institutions was the only model of prosperity that would reign falling the collapse of the Soviet Union. While I probably wouldn’t have gone as far as Fukuyama did in proclaiming “the end of history”, I believed that the world was going to see authoritarian regimes increasingly globalize and embrace Western institutions. What I did not expect was the simultaneous rise of different models of success by countries like China and Saudi Arabia (who, frighteningly, now serve as models for still other countries to embrace), as well as a lasting backlash within the Western countries themselves (i.e. the rise of Trump, Brexit, “anti-globalism”, etc). This has fractured traditional political divides (hence the soul-searching that both major parties are undergoing in the US and the UK) and the election of illiberal populists in places like Mexico, Brazil, and Europe.
  9. Strategy trumps execution
    As a cerebral guy who spent the first years of his career in the last part of the 2000s as a strategy consultant, it shouldn’t be a surprise that much of my focus was on formulating smart business strategy. But having spent much of this decade focused on startups as well as having seen large companies like Apple, Amazon, and Netflix brilliantly out-execute companies with better ‘strategic positioning’ (Nokia, Blackberry, Walmart, big media), I’ve come around to a different understanding of how the two balance each other.
  10. We need to invent radically new solutions to solve the climate crisis
    Its going to be hard to do this one justice in this limited space — especially since I net out here very differently from Bill Gates — but going into this decade, I never would have expected that the cost of new solar or wind energy facilities could be cheaper than the cost of operating an existing coal plant. I never thought that lithium batteries or LEDs would get as cheap or as good as they are today (with signs that this progress will continue) or that the hottest IPO of the year would be an alternative food technology company (Beyond Meat) which will play a key role in helping us mitigate food/animal-related emissions. Despite the challenges of being a cleantech investor for much of the decade, its been a surprising bright spot to see how much pure smart capital and market forces have pushed many of the technologies we need. I still think we will need new policies and a huge amount of political willpower — I’d also like to see more progress made on long-duration energy storage, carbon capture, and industrial — but whereas I once believed that we’d need radically new energy technologies to thwart the worst of climate change, I am now much more of an optimist here than I was when the decade started.

Here’s to more worldview shifts in the coming decade!

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Pitching a VC is a Romantic Affair

processI swear the title has nothing to do with Valentine’s Day :-).

One question that comes up often when people find out that I work at a venture capital firm is “how do venture capital firms decide what they invest in?” How is it that the same firms that pick wildly successful companies like Google and Facebook can also pick the “what were they thinking” duds?

People are oftentimes surprised to hear my answer. The truth is that while there is a general perception that there is some kind of a secret formula with objective criteria and analysis, the idea that the VC decision process is a purely objective and analytical affair is plain wrong.

The analogy I like to give is that getting an investment from a venture capital firm is a lot like marriage. Yes, there are obviously objective criteria which inform the decision – is the potential spouse/founding team trustworthy? Do we share the same goals in life (i.e. kids vs no-kids or size of outcome/industry)? Are we at the right stage (i.e. ready for commitment or point in lifecycle of the startup)? What do friends/industry experts/customers say? Can both parties add meaningful value to both sides?

But, like with marriage, there is a significant emotional component to the decision as well which can’t be ignored. Things like personal chemistry or whether or not the investors involved are enchanted/charmed by the founding team and the business idea play an enormous role. An investor who doesn’t have a specific qualm about a startup but who just isn’t feeling “the love” will not push a deal forward, no matter how great of a business case is being made. Why? The business model of most venture capital firms forces individual investors to only commit to a handful of companies that they truly can commit to and stick with through thick and through thin (and, rest assured, all companies have bad times they have to survive through).

Of course, let it be clear: any decent investor who “falls in love” with a startup and later uncovers objective reasons to not go forward will fall rapidly out of love with a company – lest someone reading this gets the idea that its all about the emotions. But the lesson to take away here for entrepreneurs is that while its absolutely critical to nail the objective criteria (things like business model, team composition, market size, go-to-market strategy, product/service quality, technology, etc) – that is, after all, the bread and butter of any good startup – don’t forget that, just as with most sales/business deals, the VC process has a huge emotional piece. So:

    • Have high EQ when you approach a conversation with a VC you are interested in: fit the message to the person and if you see the interest/reaction start to go the wrong way, shift gears and adapt the message (although I should remind people to not lie – that never ends well for either party)
    • Know the VCs you are presenting to: its impossible to precisely predict what combination of things will really click with a person, but you can get hints of that by doing your research. At the minimum, it means reading the backgrounds/profiles of the individuals you will be meeting with to understand what they are interested in and what sorts of themes they tend to look for. But, keep in mind to also pay attention to what things might turn them off (i.e. if they were involved with a bad eCommerce deal and you are trying to pitch a eCommerce company, make sure your story/pitch is *very* different).
    • Talk with a lot of VCs and expect to do this for every round of financing: as with romance, you can’t expect to click with everyone, not to mention, as with romance, things can always change the second or third time around. There are definitely cases where entrepreneurs have had very successful relationships with investors they never expected in their first set of pitches as well as VCs who have passed on earlier rounds of investment (no chemistry the first time) only to eagerly participate in follow-on investments.

(Image credit – 3Forward)

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