Accessibility as an Advantage in Venture Capital: Why Creating Value for Everyone in the Community Wins

I believe that the next generation of top companies are far more likely to be founded by people not on VC radars today. Today's top founders will undoubtedly start something new in the future, but they won't make up the majority of innovators going forward--just as prior generations of venture backed founders don't make up a majority of those who are succeeding today.

That believe has not only translated into the most diverse portfolio run by an investor who looks like me, with over 50% of the teams including diverse founders, but also into top quartile returns in our last fund.

But diversity isn’t any kind of criteria for us—it’s a function of trying to create value for the whole ecosystem--not just those you back. Opening up our circle to create and scale genuine engagement for people outside of typical venture networks is how we do business—and we’re getting exceptional deal flow because of that.

We backed four of the female founders in the Inc Female Founders 100 list—another five we passed on and two had rounds oversubscribed before we got a chance to invest. (Hey! I didn’t say venture investing was easy—but at least we got a look.)

Just yesterday, I got a note from a female founder of color:

“Earlier this year you invited me to one of your off sites and that made a huge difference for me as a founder raising capital for my first company… I'm just looping back with the individuals who were helpful and who said "yes" to me during a pretty grueling process. You passed on investing in my company but you still made an investment in my leadership and I'm deeply appreciative.”

Last week, we ran Fall Fundraising Days, which featured 11 NYC events on raising capital that 800+ individuals attended across the week. Most were open to the public, but we didn't stop there--we intentionally sought out recommendations for underrepresented attendees and didn't stop making those asks as the events filled up with greater balance than your usual tech event.

This story from Cherae Robinson was just one other example of how our events helped someone we didn’t back (we have a portfolio conflict) reach their potential.

Venture is all about access—getting the best deals. That access cuts both ways—because at our stage, we need to make sure the best deals can get to us.

That means, to start out, no need for warm intros, since everyone’s network looks too much like themselves—but that’s just table stakes.

I generally accept any invite to speak or answer questions in front of a public group that I get.

We run a series of best practice workshops where we put top VCs in front of audiences of new junior professionals at funds and accredited investors looking to start angel investing—and we intentionally seek out underrepresented people to join. (Contact me here to find out more about this.)

We host neighborhood dinners across different parts of NYC—from Park Slope to Harlem, and the West Village to Bushwick, and beyond, to connect startup and tech professionals to their neighbors.

For the last decade, I’ve been sharing open events, opportunities and info in my weekly tech newsletter.

So come participate in the community we’re creating around Brooklyn Bridge Ventures.

Thoughts on WeWork

I got asked by a reporter yesterday what I thought about WeWork’s IPO situation and I’ll summarize what I said here:

First off, let’s pull back for a moment and acknowledge that WeWork has built a huge company that generates a ton of value for its members. Real estate was previously a huge headache for small businesses before WeWork made co-working mainstream.

I don’t know where its valuation will wind up, but I believe that there is a going concern there that is worth billions of dollars. How many billions is for the public market to decide but there’s no doubt in my mind that the underlying value of renting out big chunks of space and using tech enabled, streamlined processes to sublet it out in smaller chunks works. After all, that’s what hotels are, right?

Plus, if you were an angel or Series A investor in WeWork, no matter how this plays out, you either would have cashed out by now for a huge return or still done enormously well in the IPO. If any one of my seed investments ever needs to debate whether its worth $40 billion or $20 billion, I’ll take on that headache any day of the week.

What it does bring to mind for me is the perception of risk.

A lot of people think early stage and seed is really risky, but risk is a function of return—and returns are a function of price. I would argue that a portfolio of making bets that late stage, but still unprofitable companies like WeWork are going to be worth X billion dollars and buying in at a huge valuation is way riskier than buying a basket of promising early stage companies at single digit millions of dollars in valuation.

At least the small companies have lots more opportunities to get gobbled up for some amount of value even if they don’t ultimately work out as well as you would have hoped.

Plus, the overall dollars invested tend to be smaller. A small fund like Brooklyn Bridge Ventures might have minimum investment sizes of a quarter to a half million dollars—whereas a late stage megafund probably expects its LPs to put multiple millions to work.

These late stage funds are often the ones that get crunched in market downturns—because they find themselves over their skis quickly on valuation—whereas early stage funds have longer time horizons anyway. Seed investments made now are expected to exit sometime after this next recession will have likely played itself out.

I also think seed and early stage managers are more aligned with their LPs. A $10mm, $25mm, or even $50mm fund isn’t generating enough management fees for anyone to get rich off of just taking your money—so they’re out looking for big outcomes.

A multi-billion dollar megafund that is investing in the late stages of companies like WeWork makes a lot of fees and can afford to treat late stage rounds like options. They’re going in at high valuations using preferred securities—meaning they’re the first money out in a downside exit. Sometimes they have various ratchets and other bells and whistles that protect their downside further, like when Square IPO’d.

They also have lower upside, since they’re going in so high to begin with—so the percentage of money they’re ever going to make on fees is higher versus a smaller, earlier fund that really needs upside to cash in.

The other area to consider is the timeline. WeWork is under 5% of all of the commercial space in NYC—its home market. If all real estate goes the way of server infrastructure, with no one ever signing a commercial lease except for larger campuses like Google and Apple, then WeWork hasn’t even scratched the surface of its potential. Today, Amazon’s AWS product is probably worth hundreds of billions of dollars because who buys their own server anymore—but when they first started, people thought of it as a money losing distraction. If WeWork, like Amazon, is betting on a much longer term view of the market, the price could be justified.

One thing is for sure—there does seem to be a lot of hair on this deal. The IP transfer from the founder, his family’s underlying interest in some of the real estate—it might end up being all square, but it just gives people pause.

I’m convinced WeWork is part of a sea change in how business think about real estate, and from great disruption comes great economic opportunity. Companies like Lina (a BBV portfolio company), which creates joint spaces for medical practices, will pick apart other segments of the market created by this disruption and lots of winners will be created.

How big these winners will be is not a game I’m in. When you operate out of a $15-20mm fund, a winner is pretty much a winner at almost any size.

Make All the Asks

“I didn’t want to bother you.”

“I didn’t want to impose.”

“I didn’t want to show up with my hand out.”

“I feel like if you were interested, you would have said something already.”

“I wasn’t sure if it was ok to ask.”

“I haven’t spoken to that person in a while—it might be too random now.”

Do any of these lines sound familiar? Too often, I meet founders that need something, and feel awkward about asking for it for a variety of reasons. Disproportionately, the ones who hesitate to make the ask are women or people of color—at least in my experience.

Speaking from a position where I often get asked a lot, what I don’t think people realize is what the other half of the exchange is in an ask. If a startup pitches me, for example, they’re not asking—they’re selling their equity. That’s a fair tradeoff (at least, if they don’t think it is, they probably shouldn’t have quit their job to start this company.) If no one ever pitches me, then I’ll have no companies to invest.

And if I know the person, I’d so much rather get a pitch from them than someone I have to get to know from scratch (although I’m happy to take cold pitches anytime, too!).

Pitches, while asks for the founder, are potential opportunities for me. Even if I don’t find the company, it’s an opportunity for me to learn about a new space, or just to be helpful enough where you might recommend a founder come and pitch me later on—and maybe that founder is the next big thing.

Most people like feeling helpful—it makes them feel less alone and more useful to others. An ask is really an offer of purpose to someone else.

“Here’s something you can do to help me,” can be a welcome interpretation of an ask if someone is feeling low on self-worth.

You should never be scared to ask for something you need—because the worst thing that can happen is that someone says no. Anyone who dings you just for making an ask, saying perhaps that you’re too needy, probably was never really going to help you with much of anything anyway, and probably doesn’t add much value to your life.

No person is an island—and getting ahead means getting help from others. An ask is a very simple way to direct those who are interested how they can help—because you probably have a lot of people in your life who would help you, but aren’t sure what you need.

I wouldn’t have gotten my first job in venture capital had I not asked to extend my internship part-time past its original deadline. I wouldn’t have gotten that internship if I hadn’t asked if there were other opportunities after interviewing for a few that I didn’t love.

And if you’re ever concerned about making too many asks, you can ask just one more—ask how you can help someone that you’ve asked for help from.

Social Media and Thought Leadership for Founders

Running a startup consumes a ton of time. Just the immediate priorities seem to take up more than one person’s potential working hours—so it’s no surprise that when it comes to something like social media, many founders have trouble making it a priority.

The consequences of failing to position a founder’s profile aren’t always obvious—and it’s usually all about missed opportunities. Some founders get more press, get speaking opportunities or have an easier time fundraising thanks to leads that started with social media. Does just randomly posting on Twitter mean an automatic Series A?

No, of course not.

But if you have to start your VC list from scratch when you’re thinking of who will fund you next and all of your PR outreach is just a bunch fo cold e-mails, you’re starting from behind the eight ball in a way you wouldn’t have had to had you just participated in the public square that is social media in small amounts daily.

Here’s a primer on manageable things a founder can do to create and take advantage of social media driven opportunities for the benefit of their company.

The Base Layer

The very basic level of participation on social media isn’t posting—it’s listening. There is a public conversation going on around people who need to know about what you’re up to and that you ultimately benefit from having a professional connection to. Being unwilling to listen to that is foolish, because it’s good information—and it’s networking 101. Any relationship you build should start with listening first, and social media, despite what you might think, is no different.

Where you can outsource some of this to interns, researchers, a PR firm, your team, etc. is figuring out who your top 250-500 list is. Take the time to understand that if there was a conference full of people that would be highly relevant to what you were doing, who would they be? It’s some combination of industry leaders, other founders, academics, media, big company folks, etc., but in the end you should know exactly who your best few hundred (or more) potential networking leads are, and follow them. Conferences are actually a good place to start to find these lists of folks, as someone has done the job of curating a list for you. You can also look at the list of who other people in similar positions follow. For example, if you were the founder of a self-driving car startup, checking out who the founders of the other dozen self driving car startups follow might be a good place to start.

Generally speaking, I think Twitter and Instagram are good places to start. Twitter feels like a given, whereas Instagram is a bit more personal, but as long as people don’t have private accounts, they’re fair game. It’s often a good way to figure out if there are hobbies or interests you share in common with someone.

Now that you’ve got your follow lists, I would think about perhaps 10-15 minutes per day as a pretty good investment of time checking out what’s going on around you. Share or retweet what you find interesting, ask questions, comment, etc., but do it authentically. Don’t comment just for the sake of commenting—comment only when you have something to say.

If you took the time to pick out 500 industry people who are ultimately the right people for you to connect to given what you’re doing, and you follow them for 10 minutes a day for the next 30 days, but still have nothing worthwhile to say in response or can’t find anything worth sharing—I think maybe you need to reconsider whether you’re really passionate enough about this industry to be in it for the next eight years.

The Angle

Think about an angle—some unique insight—that you bring to bear into these conversations as you start to post. For example, if you were the founder of some new home workout device, posting about fitness isn’t unique enough. Posting about how hard it is to fit fitness into your routine as a parent of three kids—that’s something unique to you that you could imagine being a magazine article.

It doesn’t always have to be about you and your company either. Maybe there are some people you follow who have created great little routines to squeeze into your day doing everyday things—like doing calf raises stepping up and down from your tippy toes as you wait for elevators. Sharing that type of thing helps build your narrative but it also curries social capital with others—because sharing is a currency you can build up.

Long Form

Medium, LinkedIn and various contributor networks like Forbes are great places to get extended stories out. What is it that you would share if you had the opportunity to give a talk at a conference—this is where that kind of message goes. The best way to write long form articles is to keep your reader in mind—what is the interesting thing you’re giving them that is going to be conversation-worthy for them later. Can you imagine them talking about it later at a networking event? Probably not if you’re writing a post on “An Overview of the Banking Industry” but probably yes if the article is “Is the Fintech Startup You Just Signed Up for Worse than Your Bank?” This would be a good way to talk about ethical issues around money and data, and how your company has made a promise never to sell its user data.

Video

A lot of opportunities for founders to be on panels and on TV come from posting video clips. Just because someone writes well doesn’t mean they’re well spoken and perform well on camera—so showing off your speaking skills on video can go a long way to creating more interview opportunities for you.

If you don’t have the money or time to setup a video studio (Who does?) you might check out a company I invested in called Openreel. Openreel allows you to capture HD quality video from your phone, tablet or laptop with all of the controls available to someone using a professional setup with a director. You can even have someone else do the capturing and controls remotely and it comes with a teleprompter feature as well. It’s a fraction of the cost of rolling in a video crew everything you want to shoot something, and an order of magnitude higher quality and more professional just doing selfie videos on your phone.

With this kind of solution, posting a video once a week isn’t a big ask—especially if you just spend an hour banging out three or four at a time. Similar to the longer form posts, try to think of sharing something meaningful that you want people seeing when they search for you—like why you started your company, what’s important to you about this business, or something specific about your leadership style.

Obviously, when you’ve got multiple types of posts—long form on Medium, videos, etc. you’ll cross post across your various channels. This is also a good spot to outsource. Put someone else in charge of making sure your LinkedIn connections know you wrote a Medium post and vice versa.

Engage Others

One way you can build up your following is by engaging others. Write posts where you pose interesting questions to others—giving those people a reason to share things that you compose, along with your profile. If you’re eventually going to be fundraising for a wellness startup, it might be worthwhile to ask 50 investors about their own wellness routines—or, if you’re looking to stir the pot a little, measure the wellness routines of the founders that those 50 investors backed and point out the likely differences.

Interviews other others are a great way to punch above your weight as you build your profile. Most people are willing to have content composed about them for SEO purposes or even to have something to share to their own audience if you’re willing to do the editing.

Authenticity

Not everyone is comfortable posting every last intimate detail of their lives on social media. The good thing is, no one is asking you to do that. However, it’s not an unreasonable ask that there’s some human semblance of you on the internet that a potential hire or funder can find if you’re asking them to commit several years of effort to helping you. When you post about what’s important to you outside of your professional life you build not only a multi-dimensional image of yourself that might give others a better picture of whether they want to work with you, but it also increases the potential ways to connect with key stakeholders. Maybe there’s a VC that also plays the sport you do, likes puzzles, or who can relate to stepping on their kid’s Legos in the middle of the night—and when you’re a founder, you could use any inroad you can into a conversation.

Bonus Points

Here are three next level media strategies that I think have a significantly high ROI and might actually take less resources than you think:

Podcasts

You can use a tool like Zencastr or even a video capture tool like Openreel to create interviews for podcasts very easily—and a basic suite of Apple software like Garageband can get you pretty far in terms of basic editing. A single interesting podcast interview can hook an investor’s attention and running a show can excellent excuse for connecting with high level stakeholders. Running a logistics startup? Interview the GM of North America for UPS. Got a new parenting app? Interview an influential or celebrity mom or dad.

When you’re starting out, much of the value of doing things like podcasts isn’t necessarily in the building of a big following—although that can happen over time. It’s all about having a reason to connect with someone that isn’t so transactional and that gives them some value, too. Instead of grabbing coffee to pick someone’s brain, which is particularly one-sided for them, invite them to an interesting podcast conversation they can share with their own audience. Instead of cold-pitching the media, bring them onto your podcast to share their expertise.

Surveys

Getting a professionally done survey from a real firm costs about the same as one month’s worth of retainer from a PR firm—but is bound to get you way more in terms of press hits. There’s nothing more sharable on social media than data—so let the numbers make your case for why you’re starting a company in this space. Moreover, why not let customer surveys create leads for you? Google “indoor farming data” and you’ll find Artemis Ag’s (formally Agrilyst) State of Indoor Farming Survey, which added a windfall of leads to their sales pipeline. You can work with a media outlet or professional society to get a whole bunch of potential folks in your target market answering questions that they all want to know the collective answers to.

One Day Conferences

You can book a space and feed everyone in a nice space for less cost and effort than you think—and create a lot of content and connection in the process. In fact, if you just need to break even, you can often get sponsors to cover much if not all of the cost of it. It’s also a good excuse to invite interested investors and get into a conversation with them. You could literally script an entire day of panels that fit with your company’s narrative for a higher ROI than trying to get in front of someone else’s audience for just one panel. It’s more work, sure, but it’s potentially a much more valuable outcome. Besides, if you really are the industry leader you say you are, shouldn’t you be running the go to industry conference?

Newsletters

The most valuable career asset I have is my weekly newsletter that goes out to the NYC tech community. It’s mostly just a collection of events, but it has grown to include a fair bit of preamble and perspective. Imagine you were going around telling everyone that there’s a new revolution happening in the dating world away from just a solitary swipe right/swipe left perspective—and that there’s going to be a backlash about how dating works today. Then isn’t there at least a week’s worth of articles, links, essays and content being put out there already to fill up a newsletter, not to mention what you yourself might have to say about it? Having a weekly, consistent curated stream of news and becoming the industry’s source for your narrative is invaluable—and can also be turned into an asset for others. You can post events, conferences, and links to what others are saying and doing too.

Setting Expectations

Participating in social conversations and thought leadership as a founder isn’t something that is going to pay off overnight—but consistent contributions to this area has a high likelihood of paying off for your company. On the other hand, being a founder trying to raise money when no one’s ever heard for you or what you’re up to, nor have they ever read up on what you’re saying is going to happen in the industry is starting from less than zero.

Plus, if you never invest in serendipity, it’s never going to happen to you. You’ll never get that speaking opportunity at a conference or you’ll never get that inbound from an investor asking “Hey, I read your piece, let’s meet the next time I’m in NYC” if you’re not contributing to your thought leadership profile. I can’t promise when, where, or how it’s going to pay off, but the best time to plant a tree is twenty years ago, and the second best time is now. Trust me what you’ll wish you had been doing this for the past year when you need something to happen to your company that’s a bit out of your control like fundraising, hiring or launching.

Thoughts on my Wedding Day

I’m getting married today.

At least, if she says yes.

But, assuming that all goes according to plan, I have a few thoughts on how I got here—given that dating and relationships seem to vex a lot of people.

I would say that the most important factor that went into both of us finding someone to marry was that neither one of us felt like we had to find someone to marry to be content. We both spent time developing ourselves and our lives as complete and we weren’t waiting for someone to make us whole—so we entered this relationship not as gap fillers for each other, but as two independent people who chose to be together because it was better, instead of trying to avoid being single.

You don’t need anyone to be content—but it’s very nice to meet someone you want who wants you back.

For me, winning her over was an exercise in self-awareness, patience, and respect. In the past, not only had I been pretty unaware of the other person’s perspective in a relationship, but I thought that getting to the finish line was a function of effort. There were times when I thought I could get someone to like me by trying super hard—by proving I could be the best boyfriend ever, when that wasn’t anything close to what the other person was looking for.

When you find someone who is content with themselves, most of what they’re going to look for in you isn’t how you treat them—I mean, it’s important, but it’s not the only thing. It’s going to be about how you treat others. Aja and I appreciate each other just as much if not more for how we treat our families, our friends, and the authenticity we put into our work than for what we’re doing for each other.

Don’t accept someone that is nice to you but a jerk to everyone else.

A few years ago, I dated someone for whom therapy was an important part of her self development. As part of my development, I decided that if anyone was either critical of me or made a suggestion to me that I would start from a position of acceptance before I was dismissive of it. When we broke up and she suggested that I might get something out of therapy, I went ahead with it. I felt fine and didn’t necessarily have something that I thought I’d get out of it, but I was doing this thing of non-dismissiveness, so I tried it out.

I did one session and in talking about relationships, I realized that while I had tried very hard in prior relationships, I never shifted my perspective to try to understand what it was the other person was looking for in a relationship.

Like, never.

I was too busy trying hard to be nice, to be romantic or loving to focus on being understanding and empathetic. No one wants a bigger version of a gift that they didn’t want in the first place or two of that gift.

It totally changed my approach to relationships (and frankly, was the best free introductory anything I ever did, since I didn’t go back).

Things become a lot clearer when you ask yourself the question, “Am I honestly the person that this person is looking for?” versus “How much do I like this person?” It works really well for someone who, at 39, doesn’t really feel like changing who they are that much—because it’s much easier to answer than trying to figure out if you like someone “enough”.

The last thing that I feel is really important is a realistic sense of what’s important to you.

I’m obviously pretty athletic and into sports—but I don’t really need anyone to do them with me. What I do care about is that it’s going to be ok when I roll out of bed on a Sunday morning at 6AM to go on a ride or do a half marathon.

What I’ve found with myself is that Aja is so accepting of the things that were a part of my life before she arrived, like sports, that I’m more willing to give them up, because it doesn’t become a proxy war for balance in our relationship. When I got asked to play on an ice hockey team this summer, I only signed up for half the games not because she would have had a problem with me playing on all of them—but because it would have been ok.

Frankly, I’d rather spend more time with someone who thinks it’s ok for me to play more hockey than actually playing more hockey.

Aja, I am incredibly lucky to be marrying you today. I love you and I cannot wait to see you later…

… after my bike ride.