This essay was first published in 2009 and has been lightly edited. Entrepreneurs solve chicken and egg problems. I believe that any business worth doing has at least one significant chicken and egg problem. Sometimes multiple or more complicated ones. A typical example is that you feel that: Investors Depend on Product Product Depends on […]
Read the postWe started Higher One as college students in 2000. I believed in the potential of fintech but was naive about the regulatory landscape. We grew the company to serve millions of college students and became a public company. And we experienced regulatory pressures firsthand. Despite our best intentions to follow the rules, we ended up […]
Read the postThis essay was first published in 2009 and has only been lightly edited. Starting a company? Talk to customers. When I talk to entrepreneurs in the early stages, I strongly advocate for talking with potential customers as early as possible. I believe this to be true in almost any situation or industry, although there may […]
Read the postStartup founders should have a vision of failure. That may sound like a radical idea. After all, advice to founders generally focuses on having a plan for success, not failure. Planning for success is important. And it is critical to avoid giving up too early. But, founders should recognize failure if it comes. Too often, […]
Read the postFor decades the VC world has been captured by an anthropomorphized notion of artificial intelligence. Much of this was aided by the ways in which AI innovators represented their technologies—for example, AI designs that intentionally looked like humans or animals when there was no technological reason for that design. By making AI seem akin to […]
Read the postPandemic. Stock market volatility. High debt levels. Waning confidence in the US dollar. A massive number of layoffs. “The worst recession since the Great Depression.” In so many ways, this does not seem like a great moment to start a new company. Yet, despite uncertainty and pain, now might be the right time to begin […]
Read the postA 2018 study by Carl Fritjofsson (Creandum) and Henri Deshays (Newfund) surveyed 121 company founders and 98 VCs to identify similarities and differences between the two group’s preferences. Source The data here is a couple of years old and individuals may not follow through on their stated preferences; however, this study provides an interesting portrait […]
Read the postWho is the customer for a venture capitalist? A simple question with profound implications. You will want to agree with your firm about the answer. The two most common answers are: LP: investors in the VC fund are the ones that pay the fee and carry and so they are the customers. Startups and founders […]
Read the postYou’re practicing social distancing. And doing your best to come to terms with the speed of the Covid-19 pandemic. Are you wondering what to do to help others during the Covid-19 pandemic and its resulting economic and humanitarian impact? First, make sure you and your loved ones are cared for and following appropriate national and […]
Read the postThe interest in running a debit card, robust payments program, or being a full-fledged neobank has exploded. For example note the growth, fundraising, and headlines for neobanks or fintechs like Chime, Varo Money, Good Money, Dave, and Aspiration. The opportunity is huge and many big banks are not doing themselves any favors with the slow […]
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