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My Entrepreneurship Class at Barnard's Athena Center for Leadership Studies

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I was asked recently if I would teach a class entitled "What You Need to Know When Starting a New Business" on Sept 27th at Barnard College. Having had a chance over the last year to get to know some of the great people at Barnard's Athena Center, I accepted with enthusiasm. I'm a big supporter of their mission.

The evening class is part of the many offerings Barnard College's Athena Center for Leadership Studies which is dedicated to the advancement of women leaders.

So if you're a woman who is starting her first business this may be of interest for you. Details are below. The class costs $199, all of which goes to support the great programs at Barnard- I do not accept compensation. So, if you are interested click on the link below where you'll be able to regoster and I'll see you soon.

Launching a new business can be daunting. What are the steps you need to take to maximize your chances of success? What are the typical mistakes you need to avoid?  In this class we focus on getting fledgling entrepreneurs prepared to get through this difficult process with every advantage possible.

Date: Tuesday, September 27, 2011
Time: 7pm - 9pm
Location: 5th Floor, Diana Center, Barnard Hall

 

Venture Studio (2): Professor Evan Korth of HackNY

This is Episode (2) of Venture Studio

Get to know our guest, a huge figure in NYC's technology ecosystem, Professor Evan Korth

In this conversation we discuss HackNY at length, the role of the University in New York's technology ecosystem, some of Evan's student teams (including Diaspora!), NYU's Innovation Fund, and his passion for teaching, mentorship and NYC.

(This excellent piece was released today on TechCrunch about HackNY 2011)

Click for Venture Studio (3) w/ Mark Loranger of Square 1 Bank

         Square1Bank-rectangle-ese-shadow        Small_logo_startup-gp_color 

VENTURE STUDIO 2                 Nyvc_200x100-1

I Am Incubator

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This is part of my Series on Entrepreneurial Culture.

The leading dramatis personae of the early-stage tech ecosystem are well established by now in the mainstream collective consciousness. High-tech wunderkind entrepreneurs are of course the most recognizable of the various archetypes, but nowadays once obscure protagonists with strange appellations such as hacker, combinator, seed-stage VC and angel no longer generate quizzical looks and raised eyebrows when others point them out at cocktail parties or gush about them in the mainstream press. The newest hero/villain cast member is of course the so-called “superangel” who one immediately associates with Silicon Valley Olympians such as Ron Conway, Jeff Clavier, Aydin Senkut, Keith Rabois, Chris Sacca, Dave McClure, Mike Maples and others. If the production were an opera, these men would certainly be the tenors and would be seen furiously making out checks by the hundred to web-native entrepreneurs, enjoying great feasts (sometimes replete with petty human dramas) at restaurants like Bin 38, and occasionally hurling lightning bolts at one another in fits of pique, (or thunderous indigestion).

There remains, however, another sort of actor altogether in this early stage landscape of ours. He dwells far from this rarefied air and his profile is yet obscured and shrouded from public view.  In the aforementioned operatic production, he would most certainly play the the phantom.  And what is it that he does? Ensconced in dank subterranean forges these Hephaestus-like practitioners hammer-out out from the mute schist of their environments the vaguest and earliest impressions of ideas and technologies some of which will one day appear as these same companies that superangels will foist with lavish checks. Yet the work of these shadowy figures is so nascent as to sometimes resemble the proverbial cave-art of our most ancient forbears.

I am one such troglodyte.

Another appellation is of course, “Incubator”. Or, as I thought I heard Russell Crowe say to the very Emperor’s face at the center of the gladatorial arena:   

“I Am Incubator”

Among my brethren and sistren in incubation I count the folks working at places like idealab, betaworks, alleycorp, as well as certain current and former university venture lab specialists I hold in high esteem. These modern-day alchemists are constantly mixing, tweaking, stirring and coalescing the incipient ideas, technologies, nascent teams and pre-seed capital that form the raw ingredients of what they hope will become valuable companies one day.

In this mini-series I will be shining a light on the sorts of activities with which we are engaged. I’ll be sharing some lessons learned from my own entrepreneurial life, which, between my solo ventures and work within Columbia University, has led to the incubation of a few dozen companies by now. But I’ll mainly be drawing from conversations I'll be having with some of the real heavyweights in this field who have achieved great things and have some remarkable stories to share.

With this said, I shall now retreat to my lair from whence I shall write my next piece. :)

For Part 27 in in this Series, click here

Mark Suster Brings Down the House at Columbia University

Last night I had the pleasure of conducting a wide-ranging interview with Mark Suster at Columbia University's Business School. The event was organized by the Columbia Venture Community and co-hosted by Columbia Tech Ventures and the New York Venture Community, although we had many guests from the Silicon Alley community at large. Mark spoke candidly about his life experience and insights gleaned over the years from being a 2x entrepreneur, mentor, and more recently as a venture investor in front of a packed crowd of entrepreneurship enthusiasts from the student body, faculty, alumni ranks and from the venture capital and angel communities alike. The video, which was shot by Tobin Schwaiger-Hastanan, is posted just above. 

It was a special evening, not just for his candor and insights- but also for the fact that Mark ended up staying with us for hours- late into the night, meeting and talking with everyone who wanted to chat with him after his talk had ended. The Columbia community has been abuzz about his appearance since then- and people were was still raving about him today at Steve Blank's talk. Ironically, I had posted my appreciation for people who give so much of themselves to the community just yesterday!

If you can't listen to the entire 2 hours of the talk itself, I highly recommend you go to the following sections of his talk:

Minute 33: What he's looking for in an entrepreneur. "Someone who can go right up to the line"... "Something you can't teach people"

Minute 37:27: "Life in a startup is a lot of fighting"

Minute 40: Co-founders and Compensation

Minute 42: On Mentorship and Mentorship Programs  

Minute 49: On the NY and LA entrepreneurial ecosystems

Minute 50: The Importance of "Patron" Companies

Minute 56: Super-Angels: "They don't exist, it's an extinct species" .... "It's Bull#*%!!"

Minute 57: New Class of Early-Stage VC's 

Minute 59: The Signaling Problem: "Complete and Utter Bull$%@"

Minute 59: VC's of all types

Minute 1:06 The Importance of Learning from Other Entrepreneurs

Minute 1:13 Awesome Q & A Begins!! 

Hope you enjoy!

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(Suster prior to "bringing down the house" at Columbia University)

John Kluge Redux: Entrepreneurial Life Lessons

This is part of my various Series on Entrepreneurial Culture and Mentorship.

I recently wrote this post about the passing of the entrepreneurial giant, John Kluge. 

Today I want to share excerpts from this piece in the Columbia Forum that relayed some delightful stories and experiences from John Kluge's life. These priceless anecdotes and pearls of wisdom were originally relayed by Kluge's own son in a piece entitled John Kluge: Stories.

Entrepreneur or not, I am certain you will fund these vignettes enjoyable and perhaps instructive. I know I did.

My stepfather didn’t believe in education.

He wanted me to stop going to school after the eighth grade. That was all the education he thought necessary for a young man. He wanted me to go into the painting business with him. He already had his own children working for him, so I knew I would always be a second-class citizen. I would always be under his thumb. I convinced him to let me go on to high school, at least for one year. And so I skipped part of eighth grade and went straight to high school.

I left home at fourteen.

After my first year of high school, my stepfather still wanted me to quit and join his business. I wanted to get more tools for bettering myself and he didn’t believe in that, so I left home at fourteen.

There was no big scene. I still stayed in contact with my mother, and I never had any dislike for my stepfather. I was never really mad at him, because if it weren’t for him, I wouldn’t have come to this country and I would have been in Hitler’s army.

Over the years, I don’t know whether I was looking for a father, but I had a number of older men who were very generous with their time and advice. I listened to them, and they were good substitutes. Allen Crow was one. Teddy Prentiss was another. Elmer Auden, Judge [Allan] Campbell. These were all men I respected and learned a lot from. But my stepfather, after I finished my first year in high school, said, “No more schooling.” I either had to go into business, or I would have to leave home. I chose to leave home.

I was never afraid of making a decision.

It was an immediate decision, even though I didn’t know where I was going to sleep the first night. I was never afraid of making a decision, regardless of the consequences. For a few days, I slept at the school and washed cars for food money. I waited until after dark so I could shower with the hose. Then I went to the home of one of my teachers, Gracia Gray DaRatt. She taught typing and shorthand in high school, and I took her classes and became quite proficient, which served me well.

James Lin and John Kluge, with three of the Detroit civic leaders who organized their tour of the city. (Lin, center front; Kluge, back, to the right of Lin.)James Lin and John Kluge, with three of the Detroit civic leaders who organized their tour of the city. (Lin, center front; Kluge, back, to the right of Lin.)I washed Mrs. DaRatt’s car, and she asked me what I was doing. I said, “Well, I’ve left home,” and I told her why and she took me in. She was a great woman but not someone to make a show. She said, “Here’s the refrigerator, here’s your bedroom, here’s your bathroom,” and that was it.

At fourteen, you’re a boy. Between fourteen and eighteen, I became an adult. I grew up very fast. While there was never any pressure, I wanted to be what Mrs. DaRatt wanted me to be, and that was an outstanding student who would go to school beyond high school. She was a remarkable woman, and she encouraged me. She opened up my world. Remember, I was still rather constricted, in every way — in language, in religion, in education. She taught me manners, “the graces.” She even introduced me to American foods, such as the baked potato. Corn. She was a very bright woman but quite pragmatic. Not a lot of warmth on the surface. If I had a cold she wouldn’t say much, you know. She didn’t pamper me at all, and that’s good. She hoped that I would be an independent spirit, which she was. Tough American stock. She was all black and all white, nothing in between, and as you’re growing up that might be a very good influence.

I listened to them and I learned.

I remember Mrs. DaRatt would have people over — doctors, businessmen, judges. I listened to them and I learned. Allan Campbell was a friend of hers. He was a judge, the founding dean of the Detroit City College Law School, and one night Judge Campbell was talking to a realtor about a piece of property he owned. You have to remember this was during the Depression, and the judge was going to lose some money on this property. And I remember this distinctly. The realtor said, “Well, you can do so and so and save some money.” The judge said, “Oh, yes, I can do that legally — but not morally.”

Things like that, these were sign posts to me. It’s not how successful you are. Did you do it without being either a con artist or a person who was so burned up with success that anything goes? I don’t feel comfortable with “anything goes.” Never have, never will.

You know, the teacher said an interesting thing to me once. She said, “John, you’re one of the few people I know who can learn from other people without going through the experience yourself.” I felt that what they said — the judge, all these others — was so important, so meaningful, I could and should apply it to myself. It became important to do that.

Living with Mrs. DaRatt, little by little I formed a conclusion that I wanted to be somebody but not on the basis of cheating or fooling people. It’s been a principle I’ve lived with; I’ve always been much more interested in substance than perception. If the substance is right, I feel that everything is right.

What difference you can make, you should try to make.

In the sands of time, individuals make very little difference. But what little difference you can make, you should try to make. That’s what I’m going to put on my tombstone, because there’s too much avarice in the world, I think. There’s too much competition for things that don’t mean much in the long run. If you make a contribution that makes the world better, not only are you somebody, but you’re implementing. I don’t want to hurt anybody, and I don’t want credit for it. I am not oriented toward getting credit. And so much of that came from the teacher.

In 1953, I was in St. Louis. I’d just closed a deal, buying a radio station in Clayton, Missouri, and I got the news of Mrs. DaRatt’s death. I was the only person at her funeral. It was in the winter time, in Fairhaven, New York, and cold. I had to really take the gravediggers to task, because it was so cold they didn’t want to get out of their hut. I remember so distinctly driving away, and I cried but the tears just froze, it was that cold. Bitter, bitter cold.

She was an inspiration for me. All my life I keep her memory.

I wanted to go to Columbia because it was in New York.

And not because it was Columbia. I knew I’d need a scholarship so I called Allen B. Crow, who was head of the Detroit Columbia Club.

[The following is Mr. Crow’s recollection of the conversation, many years later.]

I received a phone call at home one evening. The caller asked, “Is this the president of the Columbia Alumni Club?”

I said, “Yes, it is.”

“Do you have a scholarship available?”

“Yes, we do.”

“Well, I want it.”

“Do you have any money at all?”

“No, but I’ll earn the rest. I’m willing to work my way through. But I want your scholarship.”

Well, I admired the boy’s pluck.

“These hands will pull me through.”

I applied for the scholarship and it came down to two fellows: Ed Litchfield and me. Ed was on the debating team, and he was very well-versed in the English language, while I really was not. I wore rough clothes and he was very refined. We both went to Mr. Crow’s house for the interview and I said to Mr. Crow, “I’d like to be interviewed second, if you don’t mind.” So Ed was interviewed first. When Mr. Crow got to me, he asked various questions, the usual things. We were in his sun parlor. Then, as I’m walking to the front door, I turned and walked back. I said, “Mr. Crow, I don’t know whether I’ll get this scholarship, but I want you to look at my hands.” They were very rough because I did a lot of work with my hands. I said, “I don’t know whether I’m going to get this scholarship but even if I don’t, these hands will pull me through.” Well, I think that took Mr. Crow so by surprise.

I still think Litchfield should have gotten the scholarship. But he didn’t get it. I did. Litchfield went to the University of Michigan. You know, he became president of Carnegie Tech at a later time. He was an outstanding fellow, certainly better material than I was.

I had little chance to get the scholarship but I did.

The point is, I always felt that I could work my way through, and I did. I didn’t feel the world owed me anything. As a matter of fact, I consider that, even today, a weakness. The world doesn’t owe anybody anything, because it’s all within yourself. I can’t remember where I ever complained about my life. I always thought my life was wonderful. I really did, even when I didn’t have a penny.

But I can’t understand, even today, why anybody in this country who has his health can complain, because there are always opportunities. If somebody wants to work in this country, they can find work. Oh, sure, it may be cleaning windows, maybe cleaning sewers — whatever — but you can find a job.

When I got the scholarship, I wrote back and said it wasn’t enough.

I was realistic enough to know that I needed an increase for me to go to New York. If they wanted me, they would do that; if they didn’t want me, they’d say no and I would have to live with it. Mrs. DaRatt said, “You know, they’re just going to tell you it’s been nice to have made your acquaintance, but you go somewhere else because you’re too rich for our blood.” But that’s the chance I took.

Well, they gave it to me, but it took a month or so to find out. That schoolteacher, she and I would stop at the post office every day — Box 63 at the Ferndale Post Office — and I would look into that little window for a white envelope with blue printing, and one day there it was. I came out to the car, a little Ford, and I showed the letter to Mrs. DaRatt. She said, “I’ll bet they turned you down.” I said, “I’ll bet they didn’t.” And they didn’t. They gave me the double scholarship.

I learn every day, even now.

Going to school is predominantly to discipline your mind. It’s also to encourage you to go on learning throughout your life. I learn every day, even now. Children have a sense of awe and that’s something we should never lose as adults. The people who have the attitude of knowing everything are sad cases. A scholar knows that when he knows everything, he shuts his mind to anything new.

I think a person needs curiosity, and a sense of enthusiasm. It doesn’t matter what you’re enthusiastic about. To be enthusiastic is to be a participant. It’s a sign you’re alive.

I remember getting ready for Columbia.

Mrs. DaRatt said, “You’ve got to have a tuxedo, and even tails,” and she found some for me. I was standing at the tailor’s as they were downsizing the tuxedo and the tails when I heard one of them say, “Isn’t it too bad that so-and-so died?” So I knew these clothes had belonged to someone who was dead. I could never wear them.

My first roommate was Henry Galbraith [’37] , from El Paso, Texas. I kept telling him, “Henry, you go to dances and all this, you really ought to have a tuxedo and tails.” I finally sold him the whole outfit for twenty dollars: five dollars down, five dollars a month. I didn’t need a tuxedo after all. Beautiful material in it, though. The lining was pink.

I came to Columbia with fifteen dollars, and I left with seven thousand.

To get my scholarship, I had to really work — get all A’s and that sort of stuff. When I went to college I didn’t care. I didn’t care about the Phi Beta Kappa or any of those things, because I had three or four jobs while I was in school and a lot of times I wouldn’t sit down to my studies until midnight. I came to Columbia with fifteen dollars, and I left with seven thousand. I guess I got a B-average. That didn’t bother me. I got what I wanted, and it wouldn’t make any difference what my grades were, as long as they were passing.

I was always selling something.

At graduation they had a cemetery full of headstones for everyone in the class, with quotations on the stones. On my stone they put, “I’m wiser. I sold my body for fertilizer.” I was always selling something.

I was a pricer at the John Jay Dining Hall, so I got my three meals. I had a stationery business. Every freshman who comes in wants to write to his friends, or his girlfriend, or his family, on the stationery of Columbia, with his name or his initials and the year he graduates. Being a pricer at the dining hall, I was able to say to students, “Is this your first year?” Yes. “Have you got any stationery?” He might say no. I’d say, “Give me your room number. I’ll be up to see you.” So being a pricer also gave me a place to sell stationery.

I gave personal service. I brought the stationery to them when it was finished. I did that, also, to collect the money. The printer wanted to get paid right away, so I had to collect the money right away.

Gracia Gray DaRatt with what may be the car Kluge bought for her with his contest winnings.Gracia Gray DaRatt with what may be the car Kluge bought for her with his contest winnings.

In 1938, the Detroit Times had a contest, and I won second prize — $2,000. That was a lot of money then! I used part of it to buy Mrs. DaRatt a car.

I also cleaned motor rooms in boats on the river. I would work cleaning engine rooms on Saturday and I’d have grease all over me. It took half a day to get rid of the grease. I didn’t want to come up to the Columbia campus with all that grease.

I represented a shoe company, and I would go around the campus with one shoe under my arm. A guy said, “That’s a good-looking shoe,” and I’d say, “Come on up to my room. I’ve got the other one there.” I represented a clothing store on 114th Street, and I got my clothes at a very deep discount.

Nothing really bothered me, because I needed the money to exist. Being a pricer, I got my meals. With the scholarship, I got my room and tuition and books. Any clothing I needed, any other money I needed, I got from the stationery or the odd jobs. And all the ways I raised my money were honest ways.

I was a gambler.

I gambled with sugar heirs from Cuba, anyone who wanted to play. One day the dean of Columbia College asked me to come to his office. He said, “You know, we don’t understand you. You’re gambling all night and you’re here on that scholarship.” I said, “Dean, you’ll never catch me gambling again.” That’s the first time I realized the dean of Columbia College didn’t understand the English language. I didn’t say I wouldn’t gamble again, I said he’d never catch me again.

I remember playing stud poker and five card, with the first card down and the next four up. One night I had a five up and the next card was a five. The two after that didn’t mean much but the third card was a five — three fives. Just as the betting was really getting hot, there was a knock on the door. We had all agreed that as soon as there’s a knock, all of the cards will go under the table and be cancelled out. So the cards went away and I opened up a book. The door opened and believe it or not, it was a guy who had a headache and wanted some aspirin. I never knew that a headache could be transferred that quickly. So ever since, there have been three fives always landing in my mind.

When I bought the DuMont television stations, they had a Channel 5 in New York and they had a Channel 5 in Washington. I went up to Boston to buy their Channel 5, and I borrowed the money, two hundred and twenty-two million. I said, “You’ve got a week to decide,” because I didn’t want them to shop the station and run up the price. And that’s how I got the three fives together for Metromedia.

They took my appendix out for no reason.

My roommate introduced me to beer. I was pretty woozy from that first drink. We came back to the dormitory and I went to the lavatory — there was just one common one on each floor. Well, I looked in the bowl and there was blood. I ran down to our rooms and I said to my roommate, “I’m dying!”

We went directly to St. Luke’s Hospital and they took my appendix out. I was there ten days and when I came back, we had a powwow on the floor. This one fellow asked me, “Why did you go to the hospital?”

I said, “I was bleeding, the night of so-and-so.”

He took me down to the lavatory and he said, “Which stall?” I showed him. He said, “That’s the night I had a nosebleed.” They took my appendix out for no reason. But while I was there, I met a very nice young woman, a nurse there, and we went out for some time. So something good came out of it.

“Outstanding people want to be with outstanding people.”

Columbia, I think, is a great institution. Nicholas Murray Butler [Class of 1882] was president of the university while I was there — both before and after, until the 1940s. One time, I asked him, “Dr. Butler, how is it you’re able to keep some of these professors here?” He said, “I’m going to tell you. Outstanding people want to be with outstanding people. They don’t want to be alone. It doesn’t stimulate them.” I think he’s right, and Columbia’s had some great people.

When you have nothing, why not take a risk?

There was a professor, Armin K. Lobeck, and he was in geology. He mesmerized me, my second year at Columbia. He made geology so interesting, I thought I would become a geologist — specifically, a paleontologist —and would probably work for an oil company, traveling the world. But in my third year and then, reinforced by my fourth year, I thought it over and I decided I wanted to go into business. I think basically I always wanted to go into business, but this geology course was so interesting, Professor Lobeck made it so interesting, that I darned near changed my mind. If I’d gone in that direction, I can tell you one thing — I would have been a wildcatter. My instincts are always to take a risk. I like taking risks. I guess it’s like an addiction. My addiction is taking a risk. When you have nothing, why not take a risk? You can only fall on your face.

I know this sounds crazy, but I don’t really like a sure thing. It doesn’t give me any excitement. As I got older, the risks became more calculating. I felt they would be worthwhile, they would succeed, and it often turned out that way.

And though I like risks, I don’t go into them unprepared. I think about them a lot, and I try to read as much as I can. I’m an information junkie, a news junkie. I paid nine dollars once for a New York Times in Iran. I gather information and I consult with my people but then I have to make that decision.

Most often, I make it on the basis of — will we add something to this business? I am oriented to improving a product or service. Just me-too business, that’s not interesting to me. Every business I’ve ever been in, my thoughts were always to improve what they’re doing. It might not be successful, but I love taking a risk. I really don’t like a sure thing. That doesn’t give me any thrills.

© 2009 Winterhouse

The photographs that accompany this piece are drawn from the papers of John W. Kluge ’37, held by the Kluge Center at the Library of Congress.

Attention NYC Students and Startups: Time to Gear-Up for HackNY October 2010!

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Hackny_winners

I was talking to my friend and colleague Chris Wiggins today about the upcoming Hackathon. Chris, Evan Korth and Hilary Mason as you may know are the visionary founders of HackNY. If you haven't heard of it, it's perhaps one of the best opportunities for student hackers to dive into the startup scene and for startups to identify super-talented student hackers. Read all about it below and check out this awesome video to get a taste of what these hackathons are all about. Here's what you need to to do to apply:

ATTENTION ALL NYC-AREA STUDENTS AND STARTUPS:

hackNY is thrilled to announce the fall 2010 hackNY student hackathon October 9-10!

In April, more than 200 students from almost 40 NYC-area schools participated in the first ever NYC-area student hackathon. Some of NYC’s hottest startups presented their APIs, shared their datasets, and helped organize students into teams of coding monsters to work on projects of their own design. 24 hours of pizza, caffeine, and intense hacking later, teams demo’ed their code for appreciative judges from the NYC startup community. Winning teams presented at the New York Tech Meetup in front of an audience of hundreds of NYC area technologists, and several participants went on to join the 2010 class of hackNY Fellows, interning at NYC startups. For more about the Spring 2010 hackathon, see the FAQ or the movie by Eric Wu, official hackmeister of the Yahoo Developers Network.

The Fall hackNY hackathon will be October 9-10, back at NYU’s Courant Institute; we look forward to seeing what members of the NYC-area student hacking population will create!

Hackers: please hack on whatever you want but if you’re competing, we
are only accepting hacks based on APIs or datasets presented at the start of the hackathon.

STUDENTSRegister here.

STARTUPSApply here to present at the Fall 2010 hackNY hackathon. You will be asked for your startup’s name, a description of the API or dataset or other tech you’d like to demo, and availability to help organize teams among the student hacking population.

ABOUT HACKNY: hackNY is an initiative founded to federate and mentor the next generation of NYC tech all-stars. During the summer we organize the hackNY Fellows program, including internships with NYC-area startups as well as a lecture series and housing. During the school year we organize student hackathons to introduce students to fellow members of the hacking population and to the exciting startups in NYC where their skills are enthusiastically needed. For more information just email info@hackNY.org.

ABOUT HACKING: note that all hacking will be of the awesome variety, not the evil variety. Thanks.

 

John W. Kluge, 95, RIP. Entrepreneur, Benefactor to Columbia University

John jluge

John Kluge, entrepreneur extraordinaire and one of the great benefactors to Columbia University, the University of Virginia, and the Library of Congress has passed away. 

Of modest means and son to a family of  immigrants from Germany, (where he himself was also born), Kluge was given a chance at a college education by Columbia University in the early 30's- receiving a scholarship that allowed him to attend and receive an Economics degree in 1937.  He was never to forget this opportunity and its significance to his life.

The cumulative donations he has made to Columbia during his lifetime, and now, upon his passing, total in excess of $500 Million. All of this money was donated by him for the express purpose of providing financial aid.

There are  many stories today that cover his extraordinary entrepreneurial career in the press. You can find a few of them  here, and  here. The best one, however, can be found here, and was written by his son.

I will simply leave you with a few references to quotes he made in the rare interviews he granted over the years. I need not also elaborate on how important I think it is for Universities to do all they can to encourage and cultivate the entrepreneurial spirit in their student body. 

"Work isn't really work for me, I didn't think I've ever really 'worked' in my life, because 'work' to me means that you're really doing something that you don't like. I hate to tell you this, but I've never liked the weekend in my life. I was enthusiastic about Monday morning from the day I left college."  

John Kluge (as told to Forbes Magazine in a 1990 interview)

“Young entrepreneurs should spend an awful lot of time thinking about what they want to go into,” he added. “The last thing you want to do, unless it’s a very unusual situation, is to invest money. You should have a fund of knowledge of something and out of that you make up your mind. Money is not a fund of knowledge.”

Source: Bloomberg

"Kluge “wasn’t particularly a man who wanted to be rich or enjoy a grand life,” Patricia Kluge, one of his ex-wives. “He took a small idea and turned it into something grand.”

As told to Washingtonian Magazine by Patricia Kluge, one of his ex-wives, in 1990.

“In 2007, Kluge pledged a $400 million donation to his alma mater, Columbia University in New York City, designated for financial aid to students. The gift was the largest in Columbia’s history and, according to the Chronicle of Higher Education, the largest ever to be earmarked exclusively to help students afford tuition.”

Source: Bloomberg

Map of Boston's Early-Stage Tech Investor Ecosystem (Updated)

This is part of my Series' on Venture Capital and Angel Investing.

After I posted the recent map of Silicon Alley's early-stage venture ecosystem, a healthy number of people found it to be very helpful and several suggested I do the same for Boston.

Well, here's my first stab at capturing what is just a massive early stage venture ecosystem! Until you lay it out on a map, you just have no idea of the sheer sweep scope of the venture/tech community. Amazing stuff really.

Though I lived and ran my first business from Boston for a number of years, I'm going to ask for your help again- especially from the Bostonians among you! I'm sure I have made plenty of errors, I definitely need the twitter addresses of those investors that tweet- and I'd love to hear from the angel groups and angel investors in Beantown. Please keep the twitter addresses coming!

I'll be updating the map periodically based on people's feedback and will eventually put all these maps on an interactive and hyper-linked template.

As the print is currently quite small due to the sheer size of the map, simply click on it and it will open in a separate window. You may then use your zoom feature or simply click it again to enlarge once more at that point.

Looking forward to your feedback!

Boston Early Stage

For the next post, a crowdsourceable map of the global entrepreneurial ecosystem, click here.

Columbia University Hosts Hatch Match 2010

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Join us at Columbia University for an evening of facilitated networking with New York’s leading web/Internet/IT investors and advisors.

Thursday, June 3rd 2010
5:00 – 6:00 pm  Registration + Networking
6:00 – 8:00 pm  Investor Meetings + Networking
 
The Event will be held at Low Library on Columbia University Campus

Register: Here

HOW THE EVENING WILL WORK:
We’ll have two rooms, a general networking forum in the Low Library rotunda and a private back room area where investors will be set up at individual tables.  After checking in at the event registration desk, head to the private room to sign up for your investor meetings.  Sign-up is on a first come, first serve basis, and each one-on-one meeting lasts 5 minutes, so arrive early and have your elevator pitch honed!  After your investor meetings are over, return to the general networking forum where advisors and other entrepreneurs will be mingling.  Light refreshments will be served.
 
WHAT IS COLUMBIA HATCH MATCH?

What defines a great networking event is meeting people you want to meet and having great conversations that stimulate action.  Columbia Hatch Match is designed to help you do just that!  Through active, facilitated networking, Columbia Hatch Match makes introductions and provides you with access to more than 30 advisors and investors in a format that’s convenient, efficient, and fun.

Columbia Hatch Match is an annual event, organized by Columbia Technology Ventures and The Hatchery.  Columbia Hatch Match aims to bring together entrepreneurs, investors, and other parties interested in growing and being part of New York’s vibrant internet/web/information economy.  This year’s event is being co-hosted with the Center for Technology, Innovation, and Engaged Community at Columbia University's School of Engineering and Applied Science, by Columbia Business School's Lang Entrepreneurship Center, and by the Center for Advanced Information Management.

Columbia University's Lang Fund Selects Four Companies for Funding

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This is part of my ongoing Series on University Entrepreneurship.

Fourteen years ago, Eugene Lang '40 endowed a Fund at Columbia Business School intended to help foster student entrepreneurship at his alma mater. Today the Lang Fund is part of a robust year-long process at the business school's Lang Entrepreneurship Center that culminates in the most promising ventures receiving seed funding. Our most recent venture-backed high-flier is Recycle Bank, which is backed by RRE, Kleiner, Sigma Partners, Coca-Cola, and others:

"RecycleBank is a company focused on recycling rewards. It does this by measuring the amount of material each home recycles and then issuing RecycleBank Points based on the amount of materials recycled. These points can be used at participating local and national rewards partners. These partners include Regal Entertainment Group, Green Mountain Coffee, CVS Caremark Corporation, Whole Foods Market, Starbucks and ActiveCause."

Hearty congrats to this year's recipients, all of whom worked incredibly hard. Below I am re-posting the announcement which was made here:

Olapic LLC Olapic helps brides and grooms easily collect all the pictures taken by the guests during their wedding. Pau Sabria ’10, Luis Sanz ’10 and Jose De Cabo ’10

RightsCube RightsCube is the standardized source for all of the world's film and TV rights information. More purchasing power for buyers. More monetization for sellers. Josh Brody ’10

FSA-Store.com: A new website for Flexible Spending Accounts (FSA’s) that allows employees to spend and manage their FSA funds efficiently and with ease.  Jeremy Miller ’10

Peartree Preschool: Peartree Preschool is the first eco-healthy preschool in New York City. Denise Adusei ’10

The four selected were chosen from 26 ventures submitted by students, who presented their ideas at The Annual Spring Venture Showcase (formerly The Lang Fund Final Event) in April. A group of evaluators comprising over 60 mentors, faculty advisers, alumni, and administration heard business plan presentations and made recommendations to the Lang Fund Board regarding final funding decisions.

The Fund makes an immediate initial investment, typically in the amount of $25,000-50,000, in the form of a convertible demand note, in ventures that meet its investment criteria.

Evening Tidings: 5-17-2010

Avoiding Typical Pitfalls with Founder's Equity

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This is part of my Series on Entrepreneurial Culture.

In meeting after meeting with first-time entrepreneurs I see many variations upon the theme of what can charitably be called unfortunate decisions about equity splits between the early participants. It is of course always a relief when I'm able to catch the entrepreneur before he or she commits this typical sort of blunder. Sadly, all too often, it is already too late and there is hair on the deal.

If you are an entrepreneur launching a new company, you really have to think long and hard about who your co-founders should be and how to involve them. 

It is most likely the single-most important business decision you will ever make.

Here are some realities and rules of thumb to go by:

  • Most poor decisions made in the allotment of founder's equity are made by first-time entrepreneurs in the atmosphere of euphoria created by 'taking the leap' and starting a company for the first time with so-called 'buddies'. If you are in this category- take heed!
  • Blindly going in "50-50" with someone you don't know all that well is just ludicrous.
  • In most cases you should only bring on one other co-founder, (at most a second), and that founder absolutely must offer singular value and expertise to the venture.
  • If you do bring on a co-founder, make sure you put their equity on a vesting schedule. (Four year vesting with a one year cliff is standard).
  • With this sort of vesting in place, if they end up taking off after a dispute or a change of heart, they don't end up leaving with a huge chunk of equity in your company! Your cap table thus will remain attractive to potential investors if you execute well.
  • Only partner with co-founders that are as driven and passionate about making this successful as you are. Do not partner with people who enjoy just "hanging around the hoop". Remember, every founder must be totally committed to the venture.

 

For my video conversations with great entrepreneurs go to: Venture Studio