Meditations: Book Review

Author: Marcus Aurelius Antoninus Augustus

Length: 256 pages

What is It: Meditations is a journal of reflections written by the Roman emperor Marcus Aurelius as an exercise in self expression and self development. Despite his personal intentions (arguably), Meditations has become an important public philosophical text. The emperor divided his writings into twelve books based on different periods of his life. Each book contains reflections ranging from just one sentence to a few short paragraphs.

What's Said: Everything and everyone is connected. Nature is the blueprint for all mankind and should be observed, learned, and followed. Everything that exists is natural and only does what it must. Do not give away your power of self control. Whatever you think of constantly you will become. Happiness depends only on you. Nothing that is said or done can hurt unless you let it. Let that which suffers look unto itself. Our time here on earth is impossibly short. Life decays, reason decays. There is nothing and no one that shall always be remembered. Do not waste time doing unnecessary things. Do not concern yourself with what others do. Life at its essence is constant change. Take the time to penetrate beyond the surface. Death is not to be feared. Nothing can happen to you that is not natural. The universe is not concerned with good and evil. Accept that fate is beyond your control. Practice restraint in the face of difficulty. The two most important virtues are ethics and reason.

What's True: Marcus Aurelius seems to have been a practical man, a rational man, and an honest man. With these journal entries the emperor examines (and reexamines) his own mechanisms for coping with the world and himself. He does so poignantly from many (many) angles on such topics as: the brevity of life, the impermanence of fame, nature as the blue print, fait accompli*, and emotional control. While the emperor is very direct, the grammar and vocabulary of the period (as the case with many classical works) requires sustained focus. Marcus structured his writings around these thoughts - accept the world as it comes; protect your mind as your source of power; be dispassionate in your analysis; distinguish fairness from preference; look for opportunities to practice patience; acknowledge death but respect and revere life. Impressively, he demonstrated these by example, which is why he was one of the most revered emperors in Roman history and why his Meditations is considered a foundation for stoic philosophy**.  

So What: This book is aptly named. Meditations is basically a collection of meditations for careful and methodical self reflection. Marcus Aurelius gives you an extensive list of thought exercises that act as a guide towards your more stoic self. In this sense the repetitive nature of the work actually serves to reinforce its themes. Simply put in the emperor's own words, “…our life is short; we must endeavor to gain the present time with best discretion and justice.” Here the legendary leader shows you how he grappled with the task.

Final Word: Worthwhile but Involved Read

*Life having already been decided (i.e fate), there is no option left but to accept this fact.
**The philosophical view that rationalism and emotional control, in line with nature, are the highest virtues for mankind in a deterministic world.

Thus Spoke Zarathustra: Book Review

Author: Friedrich Nietzsche (with introduction by R.J. Hollingdale)

Length: 336 pages (plus a 35 page introduction)

What is It: Thus Spoke Zarathustra is a philosophical novel about destruction and power - the destruction of religious tenets and common morality, and the redistribution of that power to the self. Presented in parable form, Friedrich Nietzsche instructs us on how to overcome these societal limitations and become a Superman*. The work, as told through a solitary prophet named Zarathustra, is loosely constructed in four parts which are subdivided into chapters, subtitles, and progressions. 

What's Said: Earth is heaven. God is dead. There is only man. Man is a bridge to the Superman. He must be overcome. Will to power** is what elevates man beyond himself to become a Superman. Your spirit wants and needs freedom (from religion and conventional morality) to create its own will. Fear, cowardice, and laziness created the gods and an afterlife. "Good" and "Evil" were created by and for those with their own will to power agenda. Freedom from this demands creation. The highest virtue is creating virtue. In order to create you must be willing to destroy - but first you must love. Love of life should be your highest hope. Your passions should be your virtues. There is no single truth, only individual truth. Embrace solitude - all great things flow from it and away from crowds. Learn to love one's self and not go roaming. All men are not equal, the best want to rule. If you cannot create and obey your own self, you will be commanded. So accept the burden of greatness, find the inner strength to overcome your restrictions, and create for yourself. Moderation is mediocrity. The only way to live life is to view it as an eternal recurrence. What is failure in the face of the future where so much is still possible?

What's True: Nietzsche has tremendous wit and a sharp tongue (prompting many high laughter and cringe worthy moments). Thus Spoke Zarathustra is a rejection of Nietzsche's religious upbringing and philosophical knowledge. Obvious structural references include The Bible and Plato. Parable form makes this a much lighter read than many other philosophical works. Language and style still take a while to get used to. Nietzsche repeats himself frequently - this could have been much more tightly written. It is clear Nietzsche recognizes and upholds the supreme power of the individual over the state, over leaders, and over the masses. To him poets are superficial, priests live for and promote death, and other philosophers tell people what they want to hear. Thus, the meaning of life - to continually overcome one's self and become greater and greater - is inward. Success at this is joy. The Superman loves life so much and masters it so well that he is willing to live the same one over and over again.  

So What: This is a book for everyone. In its simplest form, Thus Spoke Zarathustra is a motivational masterpiece extolling the virtues of a better you. Nietzsche wants to you become your best self and walks you past all pitfalls and doubts. He wants you to be free to create your own life, make mistakes along the way, laugh when you fail, and enjoy it all the while, because this is the only thing we know we get for sure.

Final Word: Definite Read

*Ladies, I apologize on Nietzsche's behalf for the domineeringly male focused view of this text.
** Will to power is a central theme for Nietzsche and it is many things: the desire for control over your life - the need to create and set its meaning; the pursuit of power and the removal of fear (i.e., lack of power); the desire to assert yourself; your inner qualities; your self as creator and master; your truth.

Startup Standouts: Runnable

RUNNABLE

Runnable is attempting to create a one stop, searchable library of full stack code for discovering, running, editing, embedding, and sharing code blocks -  in any language, for any developer.

Location: Palo Alto

Website: http://runnable.com/

Size: < 10 people

Funding: $2M Seed

Founders: Yash Kumar (CEO/Founder) 

Why it stands out: 

- attempts to make modular / plug and play programming much more accessible and prevalent
- an organized, searchable, testable environment potentially makes programming faster for professionals, hackers, and possibly  even amateurs
- seems ideal for helping intermediate level programmers move beyond the entry level skills taught on most educational programming sites
- founder's experience in collaborative software and extensive background in all sides of web development bodes well for user experience and core product

Some Best Practices: Crowdfunding

I have been asked on numerous occasions now from friends and acquaintances whether or not they can leverage the power of donation based crowdfunding for their ideas and if so, how to go about doing it - sounds like that is worth a blog post. Here are my thoughts.

Choosing Crowdfunding

Product
Some ideas are better suited for crowdfunding at this stage of the industry's development. The defining market tie is consumer focus. Products and projects that are relatively simple to understand and use work well - creative variations on familiar form. Physical, philanthropic and artistic projects have historically seen the most successful fundraising. Yes, technology/software has had the largest, most advertised wins, but they are not the current market norm.

Platform
Choosing a platform is a nuance of your product/idea. Kickstarter has the largest brand and more internet traffic, and is particularly selective and creative oriented. Indiegogo has a flexible process, an international scope and accepts a broad range of campaigns. Each has its advantages and disadvantages depending on your project. Other platforms are specialized around industry or product. No matter which one you choose, choose one platform and focus your efforts.

Payment
The business model for crowdfunding is still evolving. Make sure you read the terms, conditions and pricing parameters. Some platforms are all or nothing campaigns, others are progressive, where you  keep any portion of your raise. Also payment processing fees may be included in or in addition to platform transaction fees. These parameters are the difference between raising $100k and having up to $15k of it sliced off in total fees or all of your raise "returned" to donors. Finally, be sure that you are satisfied with all of the payment options available to potential campaign contributors.

Managing Crowdfunding

Networking
A successful campaign requires you to be ready to leverage your network - before you even add a project to a platform. Find a couple of friends or donors that will commit to your campaign in order to build momentum from day one. Organize and notify all of the people in your network and in your team's network to set up your campaign for success. In this sense, you can see how it is better when more than one person is involved.

Presentation
Take the time to put together an executive summary of your idea or product, but then distill it to the key points. Use this to create a concise presentation. It should highlight the uniqueness of your idea, its funding schedule, product timing, relevance to the market, the expertise of your team, and passion. A video is a necessary media touch. It is the quickest way to inform, educate and connect with potential donors. I recommend making it about 2-3 minutes. Use it to amplify and personalize the project.

Rewards
The most successful crowdfunding campaigns are donation based right now, but most offer something in return. If you choose one of these platforms, put time and effort into determining attractive rewards for potential donors. Do this before you launch your campaign. Think about your budget in terms of time and money. How much time will it cost you to organize and create these rewards and how much money will they cost? Be creative from a consumer perspective, what would you want?

Social Media
Crowdfunding works well as a social media funnel. You need to actively use it to draw attention to your campaign and keep it in front of potential contributors. Build and use connections to bloggers and journalists to help boost your signal. Entice them with stories on big wins for your campaign or project, and be sure to give your followers on Facebook, LinkedIn and Twitter updates on progress.

Choosing and managing a crowdfunding campaign takes a fair amount of work - as it should. Asking for external funding is a serious undertaking. Take the time and the effort to make sure that your product is right for the market and that you make right moves. Good luck.

Startup Standouts: ZooZ

ZOOZ

ZooZ is a complete and secure in-app checkout solution that makes it easier for mobile application developers to accept payments.

Location: Israel
Website: http://www.zooz.com/
Size: < 10 people
Funding: $1.5M Seed
Founders: Oren Levy (CEO) / Ronen Morecki (CTO) / Eyal Kotler (Product) / Nir Zohar (R&D) 

Why it stands out: 

- ZooZ is a mobile first payments solution; no traditional online commerce focus here

- Product works/links payments across multiple mobile applications (in the ZooZ network)

- Platform is an open solution with broad range of payment options (credit cards, PayPal, Dwolla, Stripe)

- Very developer friendly: built for multiple languages and mobile operating systems (including HTML5) 

- One of the few payments startups with an international team, location and product

Startup Standouts: Startup Genome

STARTUP GENOME

Startup Genome makes software that allows startups to benchmark and compare themselves to others similar in progress and type. The tool collects data and helps startups identify key performance indicators and make data driven decisions.

Location: San Francisco
Website: https://www.startupcompass.co/
Size: < 10 people
Funding: Seed, N/A
Founders: Bjoern Lasse Herrmann (CEO) / Max Marmer (CSO) / Ertan Dogrultan (CTO)

Why it stands out:

- Quality industry and geographical research reports and frameworks based on data collected from a myriad of startups

- Takes the lead on building much needed risk and performance tools for entrepreneurs

- Historical combination of academics and practitioners involved, as founders, employees, and advisers
- Systemizing and synthesizing startup data across the globe is vital to the future of entrepreneurship

A Treatise Concerning the Principles of Human Knowledge: Book Review

Author: George Berkeley (with introduction by Kenneth Winkler)

Length: 87 pages (plus a 36 page introduction)

What is It: An argument against abstractionism*. A philosophical exercise in defense of immaterialism**. An examination of the consequences of success with the aforementioned- on philosophy, science, and atheism. A philosophical basis for the existence of a divine power. Principles is organized in 156 paragraph-like sections, which largely break Berkeley's arguments into digestible blocks.

What's Said: Everything we perceive exists in the mind (ideas and objects). The mind is the only thing of substance. Nothing can exist independently of it. Every thing that is, therefore exists only there. Abstraction of ideas is not directly perceivable and is therefore impossible. This foundation of materialism is the cause of much confusion in philosophy, science and religion. Things cannot cause ideas or vice versa. Cause and effect as we know it therefore does not exist. Things and ideas can only be caused by minds because minds are the only substances capable of defining an intentional purpose. As imagination exists in ours, the real world of sense exists in that of a superior mind. God therefore exists.

What's True: It takes a while to understand the ebb and flow of Berkeley's writing style. This edition is well organized: useful companion notes, reference notes, timelines and a glossary. Berkeley is obsessed with language/semantics and its connection to thoughts and things. His arch enemy is apparently John Locke, whom he singles out several times. Berkeley is a very witty and pithy debater, as a result this book is sometimes very entertaining! Berkeley defends his argument more than he advances it. It is not obvious at first, but he has an agenda - convincing the reader to logically accept the existence of God. Principles is a somewhat challenging read, thus it is not necessarily a page turner. Despite that, when it comes to philosophical texts, this is a very accessible piece of work.

So What: On occasion it is worth reading a book that challenges the way you think. This is a relatively short (albeit dense) treatise that does just that. Principles challenges fundamental views of the world, which means that it pushes you to think: differently, empathetically, and critically. This also makes Principles an exercise in patience and persistence, but these are all of the things that make reading philosophy rewarding.

Final Word: Worthwhile Read



Concrete Examples from Winkler in the Berkeley School of Thought:
* Abstractionism: The abstract idea of "man" [for example] represents every man without representing any man in particular. It is an indifferent representation of all men. [Berkeley's view is that this] "man" must be the product of some kind of mental manufacturing because this would be an image (a kind of object) of a very unusual kind - try to imagine a "man" without all the ideas of particular men derived from experience directly. [It is impossible].
** Immaterialism: If a tree falls in the forest when there is no one around to hear it, does it make a sound? [According to Berkeley], if there is really no one around, then not only is there no sound, but there is no tree, and no forest. [Berkeley believes] there [is] no material substance. [That which we think is], is only a collection of ideas which depends for its existence on the mind.

Mobile Is The New New Internet

Ok. That title is not really saying anything that has not been said before, but wait a second, we can go further. What does a mobile future look like? Now that requires some critical thinking and creativity. Well then maybe we can get somewhere new new.

The future of mobile is:

More Passive 
Mobile at the moment requires a considerable amount of attention and focus. Think about screen face - at the dinner table, driving in the car, walking on the street. The future of mobile is software that increasingly requires secondary effort from the user. It suggests instead of prompts. It learns instead of asking. It more than merely exist for your usage, it does. It is an experience that on net, does not subtract from human interaction. (1)

More Personal
Mobile is physically personal. You move your tablet around with you more than your laptop. You carry your smart phone with you more than any other device. The future of mobile is software that makes your phone as personal to you as the decision you made to always have it. Right now you do the tailoring, but the future of mobile is an experience tailored to you. (2)

More Practical
The explosion of mobile has been primarily social. The internet was driven by enterprise first, social really came later. The future of mobile looks more balanced too. This is more software that helps solves every day problems. This is more software that helps businesses get work done. This is more software that helps educate people. It is an alternating push forward on the productivity front. (3)

More Explorative
The mobile you is active. It is about going and doing. The future of mobile means more knowledge about what you are doing and where you are going. And as a result it is more information about what you could be doing and where you might be going. It is a richer experience layered on top of the real world, on standby for when you are ready to do and go. (4)

More Open
Yes, in the long run we are all dead, but in the long run open wins. It does not look that way now, but there are too many moving parts and too much at stake for it not too. Mobile to too big and unruly. It is sorting out the timing that is the difficult part. That aside for now, the future of mobile is platforms that put control and flexibility in the hands of developers and users the way the internet has done with information. (5)

More Central
Mobile right now is mostly an isolated experience, but there is no reason for it always to be. The future of mobile is seamless integration with other technology devices in your home, your car, your office. This means that other stationary devices start to get applications as well. This would allow you to control your immediate experience here, and your future experiences elsewhere. (6)


Footnotes
1. [This may manifest itself with personal trackers and cross communicating applications. Some current examples include Foursquare's new feature suggesting places based on your likes, Chronos analyzing your time passively based on where you've been*.]
2. [This may manifest itself through the centralization of identification into personal/private clouds and algorithmic learning functions based on your activity. This is our mobile learning curve.]
3. [This is already manifesting itself. Some current examples include getting on the move with Uber, synchronizing your thoughts on Evernote.]
4. [This may manifest itself with augmented reality. Google glasses is a major player effort in this direction.]
5. [This may manifest itself with Android or some other as yet to be developed platform eventually beating iOS. Think about the history of the web/internet with AOL and the browser.]
6. [This may manifest itself through the internet of things and low cost tagging. Examples include applications for your television, home security system or refrigerator.]

* Full disclosure: I know the founders of Chronos.

Founders At Work: Book Review

Author: Jessica Livingston

Length: 453 pages

What is It: An inside look at the creation of some of technology's most popular and most innovative startups, as told by the founders themselves through interviews. 

What's Said: Founders go through the evolution of their startups from conception to execution and often through exit. Difficulties, mistakes and setbacks are disclosed. Turning points and surprises of the businesses and their skills are discussed. Founders share times when they or their product were misjudged/misunderstood. The triumphs and tribulations of bootstrapping and funding are laid bare. Includes direct advice for potential entrepreneurs. Interviews are grouped by company and loosely ordered by relevance to previous interviews or technologies.

What's True: Founders tend to be product and user driven. Absolute persistence is a necessity. Adaptability and flexibility are key because nothing goes according to plan. Constraints on resources like time and money often spur creativity. Trust and culture are incredibly important between (1) startup founders, (1) + (2) first hires, and (1) + (3) active investors. Startups are very often built to solve personal problems or as vehicles for significant impact. Founders deliberately nurture incredible ideas, but they also simply stumble into them. Entrepreneurs create value from depth of experience as well as from naivety. Timing and luck are notable x-factors in the success or failure of a business. Good advice is not necessarily correlated with spectacular success, i.e. do not discount the startups/entrepreneurs you have not heard of.

So What: Each venture has its own solution that must be optimized for, but Founders at Work outlines very timely variables in the startup equation. Beyond the practical, FW can serve as a good motivational guide for frustrated, impatient or weary entrepreneurs. It humanizes these heroes who have often attained mythical qualities from afar (with some exceptions). By the end, Founders seems to ask the question, "Now that you know these things, what are you going to do about it?"

Final Word: Definite Read

Startup Standouts: CB Insights

CB INSIGHTS

CB Insights is a financial services firm that collects private company information (including startups) to power data driven analytics, insights, tools, and statistics for those same companies and the general/investing public.

Location: New York, NY
Website: http://www.cbinsights.com/
Size: < 10 people
Funding: $650k in NSF grants
Founders: Anand Sanwal (CEO) / Jonathan Sherry

Why it stands out:

- Value proposition: aggregates often hard to find/get data on private and early stage companies 

- Provides simple, frequent, digestible data insights at the industry level

- The most consistent and comprehensive private company funding data flow that I've seen anywhere

- Hard won, slow built reputation topped by partnerships with Forbes and Silicon Valley Bank

Shooting Technology Across the Bow

This is a warning shot.

There appear to be many cultural behaviors creeping into Technology that surprisingly look like common practices from Finance during its days as master of the main deck. Here are a few.

Free Agency
You can clearly see this when major players from the hottest firms jump ship to the latest hottest firms, particularly with the more visible companies like Google and Facebook. The discerning question is: what is the motivation? Are these sharp shooters compelled to move because they want to face the next challenge and reap the equity returns or are they being lured because of a good deal on trading up responsibility and a bigger paycheck? If it is more of the latter, beware.

Opaque Screening
Here are the symptoms: Requiring x years experience for a position whose category only came into existence less than x ago. The catch-22 demand of industry specific expertise, when effectively the whole team is learning on the job. Downgrading front door applicants because they did not come through the side door (connections). The lack of clarity or communication on final decisions after interviews. These are all the little details of elitism - a good way to build yourself at odds with the general public.

Mishandled Talent
This is in partial a root cause of the first observation, but deserves to be separated. There is massive demand for engineering talent in the Bay Area, and fierce competition for it. As a result, the perqs and pay have gotten misaligned with contribution - but the ability to code is only worthwhile in the context of other talent. This atmosphere creates a culture where every other skill is devalued or grossly undervalued in the startup context. See: treatment of engineers in east coast finance. As a result you end up with the free agency problem and a talent-inflation problem.

Hollywood Interest
Granted this is a bit more on the frivolous side, but every time finance seemed to get a little heady, Hollywood got a little ahead of itself with a TV show based on the industry. Remember: The $treet, Wall Street Warriors or Traders? Of course not. They got canceled. Bravo now has a reality television show based on the startup life called Silicon Valley. That will get canceled too, but not before reputations and public impressions get formed. You get the point.

How will Silicon Valley hold up against these early encroachments on its collaborative and innovation culture? Let us hope it does much better than Wall Street did over the last three decades.

Startup Standouts: CircleUp

CIRCLEUP

CircleUp is an equity based crowdfunding platform which connects individual and small institutional investors to private consumer product/retail companies with existing products that have national scope or potential. 

Location: San Francisco, CA
Website: https://circleup.com/
Size: < 10 people
Funding: $1.5M seed
Founders: Ryan Caldbeck (CEO) / Rory Eakin (COO)

Why it stands out:
- The highly industry-relevant backgrounds and complementary skills of the co-founders, plus team

- Smart, strategic direction focused on consumer products, accredited investors and revenue generating entities

- Quality of platform: screening by professional investors, revenue minimums, 2% acceptance rate

- Significant partnerships that extend its reach (e.g. SoMoLend [debt], General Mills [exits])

- Clayton Christensen, the voice of disruptive innovation himself, is notable as an early investor

Startup Standouts: Wallaby Financial

WALLABY FINANCIAL

The Wallaby Card lets you carry just one piece of plastic, through which it can maximize the cash back rebates, merchant discounts, frequent traveler rewards, etc on all your credit cards (based on your preferences) every time you swipe. It is as the company says - one card to rule them all.

Location: Pasadena, CA
Website: http://www.walla.by/
Size: < 10 people
Funding: $1.1M seed
Founders: Matthew Goldman (CEO) / Todd Zino (CTO)

Why it stands out:
- Steps towards consumers with a practical use case without significantly changing their current behavior
- Adds next level value by minimizing consumer data overload and simplifying financial decision making
- Great positioning to collect real time, transaction based spending data
- Founders Fund is notable as a seed stage investor

Startup Standouts: SmallKnot

SMALLKNOT

"Smallknot lets you invest in the small businesses in your community in exchange for goods, services, special perks and benefits."

Location: New York City
Website: http://smallknot.com/
Size: < 10 people
Funding: $118k incubation
Founders: Jay Lee (CEO) / Ben Rossen (COO) / Jason Punzalan (CTO)

Why it stands out:
- Fills a very specific and necessary crowdfunding niche by focusing on small businesses
- Really leverages the crowd by taking a geographically local approach to the crowdfunding model
- Beautifully designed product with a fluid user experience
- The quality (and coolness) of the small businesses actually using the platform
- Founding team dominated by lawyers, which should be very useful given crowdfunding's legally gray area
- Had the screening and future benefit of Tech Stars NYC incubation

A New Series on Startups

In a quest to find the next phase of my career that will merge passion with ambition, I have been doing research on a number of startups - mostly in the crowdfunding space but also more broadly in Fintech. Here and there on simmserely so far however, I have written of broader thoughts on the intersection of finance and technology. Today I thought I would add a series that takes a specific look at some of the more interesting startups that I have come across along the way - because why not? I am calling this new series: Startup Standouts. First one after the post, but stay tuned for more.

Le Cousins Dangereux: Coding vs Modeling

I spent a fair amount of time modeling as a banker, sometimes in long enough stretches to see the next day's Wall Street Journal delivered. By comparison, I spent just a few months programming in graduate school. During that same period however, I also enrolled in a financial modeling class as a refresher. By my count I would guess there are relatively few people who have been on both sides of that fence. In doing so, I formed some thoughts on the similarities and differences of coding vs modeling - the two have more in common than at first glance.

Similarities
- the sweet sweet triumph of tracking down an error
 (damn you #REF, //error, etc.)
- the negative correlation between time spent debugging and error quality
- the decomposition of a problem into manageable/blocks before compiling
- the importance of details such as:
(keys, color coding, naming cells, using macros vs documenting, definitions, descriptive variable names, building functions)
- late nights and irregular schedules
- a disproportionate amount of time spent alone compared to the genpop
- copious amounts of food/drink (or the $$ to buy it) if you're on the job
- the increased potential of poundage from being sedentary
- a significant amount of time spent bent over a laptop with screen-face
- the blissful satisfaction of getting a model or program built right
- highly competitive and well paid jobs on their respective coasts
- the true significance of planning and thought in how a model is built
- the high level of intensity and focus required to get things done
- the building of a very specialized skill set

Differences
- a focus on building in coding versus analyzing with modeling
- the high variability of quality in models depending on external inputs
- the exposure of a model once built to manipulation beyond your control
- more human interaction in modeling as it is usually built across teams
- the customary practice of linear logic in modeling vs modular in coding

Make no mistake, we are definitely talking cousins here. That should not be so much surprising as it is revealing. Just be careful, unlike me, that you do not cross them both at the same time. It is not a pretty sight.

Master of The Senate: Book Review

Author: Robert Caro

Length: 1,049 pages

What is It: A thorough look at the inner machinations and accomplishments of Lyndon Johnson's U.S. Senate career as orchestrated by the pragmatic politician himself.

What's Said: The rich history of the Senate, the intricacies of its internal dynamics and rules, and the relationship of the chamber to Congress and the President are illuminated here. That is the backdrop to an examination of Lyndon Johnson's political life - a tale of motivations, ambitions, fears, failures, dealings, compassion, ruthlessness, affairs, manipulations, genius, gruffness, practicality and familial influence. All of which are defined and give full context to or for his actions. MTS is largely organized around LBJ's development and relationship with political power with a secondary adherence to the linear timeline of his life in the Senate.

What's True: The Senate was well designed by the forefathers to withstand the incredible power of the will/whims of the people. It is a body vulnerable mostly unto itself. The struggle of the Civil War lived on in the ideology of the "southern senators" who exacted their revenge upon the union (but really the nation) by their actions and inactions. Effectiveness in bipartisan politics requires an element of practicality - ideology alone is not enough. LBJ's genius lied in his adept attention not only to legislative detail but to the legislator himself, multiplied by an uncanny ability to read and act upon those details. MTS is a full measure the senator, not just as eventual champion of civil rights, but also as a prominent detractor. Like most historic figures who get distilled, LBJ's true being is far more complex in reality. This is a thorough and balanced account of that, and a painstaking deconstruction of how to acquire, maintain and exact power.

So What: History's influence in our affairs comes from the exercise of looking at what has transpired and transposing that experience onto our present and future. The open question is always: Would we want this to be repeated? The trade off between idealism and practicality is real in politics and should be answered carefully by those who practice and we who elect. Lastly - don't be quickly discouraged - this book is a page turner, rich in plot, character development and scenery. It builds and delivers like a literary masterpiece. And if you have any interest in history, power, politics, or the man, you will undoubtedly appreciate this.

Final Word: Definite Read

An Ode to Passion

Does your passion sing or does it talk
Is it worldly or is it cosmical
Does it ebb or does it flow
Is it old soul or newly found
No matter.
It is whatever you choose unless it chooses you

Did you struggle to find this great thing
Forming and molding it in your mind
Listening for its heartbeat amidst the noise in head
Or did it mean you passed on some other thing
Wading through, against the current
Embracing ambiguity, stretching norms

Cause it's about something else
Is it not?
Ambition needs its comfort
Motivation needs companion
Layering, no substitutes
Hand over hand
Freedom on top of authenticity
Progress on top of change
Maximum impact

You can't go back
This future needs you
It's calling now, softly, gently, firmly
Come hither, can't you see
Don't neglect, stay focused
Push, push. Carry on.
Satisfaction lies that other side

So here is to yours
Here is to my own
Fully embrace it before too long

This is an ode to passion, in all its forms.

Venture to Crowdfunding: "You Can't Disrupt This."

With a quick Google search using the right keywords, there are numerous articles describing crowdfunding (CF) as disruptive to venture capital (VC) or at least potentially so. Many take for granted the reader's knowledge of the term and its logic, but it is a lot harder to put together than it may seem. Here is a look at the very specific definition of the word, along with a few supporting arguments that might lead one to draw that conclusion.

Let us start out by clarifying what disruption is not. Disruption of an industry does not cover change (even if it is radically different from the status quo) which improves upon the existing industry product. This is a sustaining development (examples*). Disruption, in the Clayton Christensen sense of the word, defines a change that brings with it (in the form of a product or a new market) a very different value proposition than had existed or mattered previously (examples**). It trades off performance for either convenience, accessibility, affordability, simplicity or some combination thereof and its key often lies in the use case as opposed to an advancement in technology.

Examining the case for crowdfunding using the characteristics of Christensen's definition as a guide:

The value proposition of disruptive innovation is materially different, yet its performance trajectory exceeds market needs.
The main value proposition of venture capital is "smart money", i.e. connections and advice through a filtered loop. Its performance is measured by return and rolodex. Crowdfunding instead is "cool money". Its main value proposition is broad access through social media. It is ranked foremost on other dimensions - the type of entrepreneurs on the platform and their success in raising funding. It would perform poorly on a traditional scorecard based on established market needs, but there is a window. At the lower end of the funding curve (seed stage) venture capital overshoots the market. It provides more at a higher cost than is needed to build a minimum viable product (MVP). Arguably, crowdfunding appears to be on the way to figuring out its shortcomings at that very end of the spectrum. With market needs stable and MVP cost still falling, all that is required are a couple of sustaining technologies to cover the gap. Add a few more over time and crowdfunding could start its ascent upmarket to traditional VC territory. That sounds pretty disruptive.

Disruptive innovations are typically simpler, cheaper, more reliable, and convenient than established technologies.
Crowdfunding is nothing if not incredibly convenient. It allows entrepreneurs to leverage and manage their fundraising efforts through one channel point, turning the venture model on its head. It is cheaper as well. The flat fee or percentage of round being charged by most reward or donation based platforms are significantly cheaper than venture equity stakes and maintenance fees. Crowdfunding has not simplified the process of raising funding however - the basic preparations are still required (plan + pitch + perform + pass). Instead it has simplified access to capital for the average entrepreneur who may not know the intricacies and intimacies of silicon valley. Despite these, crowdfunding is not nearly as reliable. There are still major trust and fraud concerns, important themes regarding brand and quality. Moreover, venture has less capital volatility because of its funding structure. Placing more weight on cost (because of its implications) than the other characteristics, CF still looks pretty disruptive though.

Disruptive innovations are typically not rational or feasible investments for incumbents.
It has already been noted that current revenue streams associated with crowdfunding are not as lucrative as those of venture capital. There are no performance fees based on equity returns (which typically produce the bulk of VC profits) and neither are there any maintenance charges. The business models are fundamentally different. Crowdfunding is transaction based instead of equity based. Transaction based models are powered by volume, and with few exceptions are tied to lower profit margins, which favor low cost operations. These characteristics are uniformly unattractive to or typically unattainable by incumbents. Venture capital is no different. The implication is that the disruptive market will likely not look attractive enough until it is too late. Again, CF looks well placed to be disruptive.

Articles calling crowdfunding disruptive based on similar analysis seem right to draw such conclusions, so perhaps crowdfunding's response to venture's "You can't disrupt this" should be "You're wrong. It's hammer time."

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*Sustaining examples: HD over digital, Blu-Ray's attempt on DVD, DVR over TiVo, Google's search algorithm over Yahoo's, carbon fiber bike frames over aluminium, ipad over the iphone, voicemail over answering machines, CD/DVD over tapes.
**Disruptive examples: digital over chemical photography, Google AdWords over direct advertising, the iphone over laptops, fast food disrupted restaurants, netflix disrupted blockbuster, skype is disrupting telephony, nintendo wii is disrupting xbox/playstation, online brokerages disrupted full service.

Finance is Dead, Long Live Finance

There is a change happening in finance. Lines are being drawn. The regulatory and public acceptance ones have been clear, but here is another. There are a growing number of startups using technology to cross the line into traditional finance territory, populating an emerging area called FinTech.  Most of these firms are setting up in niches - the equivalent of a bowling pin strategy. Get the first pin right, and it increases the likelihood of clearing everything else out, including the incumbents. All the elements are here for disruption and arguably that disruption is happening right now.

Finance has for the last twenty years built up a war chest of talent. It has been incredibly selective, sometimes suffocatingly so, about screening applicants, perfecting the art of enticing bright young students with the promise of money and prestige. In recent years however, there has been a mass exile and exodus of that talent, who, unlike new graduates, are wiser for the knowing. No matter where you look in the wave of industry unemployment you will find a significant number of highly educated, battle tested survivors - with the capacity and motivation to challenge the status quo.

Finance has also long been protected by formidable regulation, but in the past few years, this barrier to entry has been weakened on the back of public dissent and pioneers. Waves of negative publicity over wall street compensation turned from perennial ground powder into the primer for a powerful first strike. Organized public outrage followed, culminating in the swift movement and strength of Occupy Wall Street. Then, helped by the focused interests of forward business thinkers, change went straight for the law books and with bi-partisan congressional action enacted the passage of the JOBS act. This progress has not come without casualties  of course, but it has resulted in an unprecedented encroachment into traditional finance territory.

Both of these elements trace their roots in part to the financial crisis, which is just the point. It has demanded an enormous amount of time and resources from incumbents. The volatility of that breaking point has fallen off its peak, but psychologically the industry is still very preoccupied, and aftershocks like the LIBOR scandal make solid footing a struggle. Meanwhile, waves of financial innovation ripple outward and lap at its heels. FinTech startups are using the power of technology to compress business models, embrace mobile, leverage the crowd, simplify investing, refocus on consumers, integrate social, streamline payments, and tackle a stream of long static issues in the industry. It is still very early, but these startups are slowly prying the door open to a new era in finance.