Texar

Darth Vader: Venture Capitalist

May 28, 2011
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I’ve been through a number of start-ups and friends of mine are still toiling through theirs. And although I have rejoined their ranks as a CTO in a research-oriented startup I don’t miss the turmoil associated with trying to please investors, customers, and employees all before you have a product. Especially when it seems that you don’t get to include yourself in that mix of who has to be pleased. Like most geeky types I’ve been watched the Star Wars series repeatedly. My kids watch the original three at least twice a year, with my son and I’ve come to notice something: Darth Vader is a venture capitalist. Now, you may think me nuts — I’ve been called that before, usually before heading off on another start-up adventure — however, hear me out. When you listen to Darth Vader motivating the troops or attempting to get the upper hand on the competition (i.e., the Rebel Alliance), he speaks like a seasoned venture capitalist. I’ll provide some examples although this may mean you can never watch the Star Wars saga in the same way again. On Deals I am altering the deal, pray I do not alter it any further. When

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Sales, Salespeople, and Salesmanship

May 15, 2011
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In my prior entrepreneurship entry I talked about the key hires that a company had to make early on in its life. I purposely left out one of the most important: the sales team. This could be a VP of Sales, a Director of Sales, whatever, but for a company to succeed it needs to have qualified, dynamic, hungry salesmen (and women). That’s a given. The question though is not whether to have them but when! A company lives on cash. For VC funded companies the initial infusion of cash comes from VC Funds that invest a part of a given fund into a company. Obviously, if this is the only cash the company ever receives it won’t be long for this world. A revenue flow is required. To attain that flow sales must occur. But how? That’s the trickiest question of all. How do we get sales? Fortunately it’s simple: provide customers with a product or service that scratches a particular itch and one that results in a demonstrable return on investment (ROI). Unfortunately, it isn’t that easy to quantify nor to find those first customers — those “early adopters” who effectively will wish to live their startup aspirations

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Entrepreneurship: Staffing a CEO

March 6, 2011
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I tend to view things fairly simply. From coding to business I’ve found that this works exceedingly well. There are always special cases, but I tend to handle those on a case-by-case basis. I try to keep the general workings of my code, my life, and my business fairly straightforward. It’s saved me from a lot of agonizing over finding the perfect way to do a given thing. I also tend to hold specific truths to be self-evident. One of these truths is that if a CEO is required he or she should be brought in early, rather than later. Either a new CEO was required from day one or a new one wasn’t. If they always were, bringing one in early is best for the company, for morale, for logistics, and just generally. Of course finding the right CEO is no easier and may in fact be harder earlier than later, but I stand by my assertion. I didn’t always think this way.   CEO: Now or Never Jim Collins’ new book Good to Great is a prequel to his eye-opening Built to Last that discusses what it takes to get a company from good to great. From a

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Entrepreneurship: Who to Hire

February 13, 2011
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When a company is started it’s crucial to ensure that the right people are brought on board at the right time. All too often a company starts up with a slew of techies with little or no business acumen and even less understanding of markets and market drivers. And since every successful company must sell product to a customer it’s crucial that the company determine who those customers are as early as possible. After my time at Texar I’ve come to a series of conclusions as to who should be brought on early, who should be brought on at various stages of corporate growth, and who should never be brought on. Although my take is my own it seems to jive with what most other entrepreneurs see as the correct sequence. In at least one case, though, my belief is at direct odds with what investors, especially, view as crucial to getting a start-up to success. My disagreement stems from the belief of how the senior management team should be arranged, especially with regards to how super successful high-tech companies look at the senior level. Here I’m talking about companies like Microsoft, Oracle, and Newbridge from their formative years until

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The Real Work Begins

October 23, 2010
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During the Winter of 1998-99 I had spent time discussing the possibility of having certain people join me at Texar. I had my sights on a number of people who I had known from prior interactions and with whom I’d hoped to reconnect. One of my primary targets was Tony, who I had met at Carleton University when we both were pursuing our Master of Computer Science degrees. Tony had completed his degree before I had and continued on towards his Ph.D. Tony and I had repeatedly discussed the possibility of his joining Texar should Texar ever get funded. In early 1999 the possibility moved towards a high probability. Tony and I sat down and discussed the possibilities at my favourite restaurant, Mini-Italia in Centrepointe. Enjoying another fantastic meal prepared by Kenny, Tony and I discussed what was transpiring. He was interested but wanted to mull it over. I told him I’d keep him informed. When the deal finalized I told him the money was “imminent”. He contacted me a short while later and we discussed positions, salary, and other issues. When it was all over I had hired myself a Chief Scientist. It was now April 1999, we had

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Riding the Rollercoaster

September 19, 2010
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Riding the Rollercoaster

In 1998 I graduated with another degree in Computer Science, this time a Master’s degree. If nothing else it proved I had enough perseverance to get to the end game. Even so it was only the start of my intentions. My wife and I wanted to take the technology I had developed and take it mainstream — we wanted to start a company. That spring we had spoken with a slew of investment bankers. We finally settled on a group of four dynamic individuals at Thorington, a boutique investment banking firm. We finalized the paper work through the spring of 1998 and began hunting for cash in earnest shortly after graduation. It would be an interesting period in my life. Working with Bob, John, Kevin, and Rick would be an event in and of itself as we created the business plan, the presentations, and got onto the lists for presentations with various VCs and other investors. We started in May and ended up working together for nearly a year. It was a giddy time. It was all on Internet time. Damn it was fun. I had no idea what to expect when the real work of getting funding began but

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The Beginning: Becoming an Entrepreneur

September 16, 2010
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The Beginning: Becoming an Entrepreneur

Being an entrepreneur all starts with a single desire: to change the world. You think you can change it by coming up with a cool piece of technology, something no one else has. Something that will fundamentally change and challenge the way the world functions within a particular arena. My arena of expertise is computer security. I’ve been doing it for nearly three decades. I’m one of the old guard and back in the ’90s had a cool idea: a generic policy engine capable of implementing and enforcing any computer security policy devised. I successfully completed my Master of Computer Science showing that the technology was feasible. My next goal was to get the capital to actually build and sell the thing. I thought it would be easy. Boy was I wrong! It had all started in late 1997 with my thesis due, time running out, and patience all around at an all time low. I decided to take an extra week during Christmas and a few weeks thereafter to finish my thesis off once and for all. I figured a month of diligent work and I’d be done! I didn’t expect what nature was about to throw our way —

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Do It Again

September 6, 2010
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The question every entrepreneur gets is: “Would you do it again?” Although many waffle on the answer they do usually agree that they would do it again, but that they would definitely change a number of things. Founding Texar, hunting down and securing venture financing, hiring dozens of people, and unexpectedly riding the dot com wave for three years resulted in an understanding of the psyche of investors, employees, executives, and, most importantly, customers. Even though the notion that the customer is always right is generally wrong that doesn’t mean the vendor has a clue, either. What I’m going to try to do in the coming months (years?) is create a bit of an inverted diary, one that effectively goes back through time and, with hindsight, examines what happened at my startup from its inception, to the original ideas, through the trials and tribulations of financing, and the roller coaster that is any startup. Some may consider my tale as being told through rose coloured glasses, or perhaps from a jaded perspective. But I’ll just leave those considerations to the reader. I will simply state what I now feel, now that years have passed. The only advantage I have is

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Musings

A blog of my musings. Some folks find it interesting and so I continue. Hopefully it will remain fairly interesting. At worst, it'll keep me writing orthogonally to my day job.

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