Cryptocurrency firms fell from grace (Chain and Lightyear merged to form Interstellar) as valuations and expectations got too far ahead of themselves for both the various “coin” firms as well as for blockchain – the distributed database technology that enables digital currency transactions. We are long-term bullish on each – particularly blockchain.
The crypto space isn’t the only sector that grew overheated as reality has set in to the autonomous vehicle space. Apparently robot cars won’t be shuttling all of humanity to and fro by 2025. We expect that autonomous vehicle startups will suffer a materially adverse impact to their respective valuations.
The two technology hype scenarios got us thinking about previous technology hype cycles. Thus, we created the TEK2day, CEORater “Technology Hype Curve” to visually represent an all too familiar pattern as it relates to hyping new technologies. Click HERE to download the Technology Hype Curve graphic.
Every founder CEO begins as a “creator”. Not every founder CEO graduates from “creator” to “builder”. Creators eventually self-implode (Elon Musk, Tesla and Travis Kalanick, Uber) whereas other founders are able to scale over the long-term. For example, Microsoft founder Bill Gates and Amazon’s Jeff Bezos are builders (We provide a list of Builder CEOs…
We created the CEORater Technology Founder CEO Index in 2017 in large part to illustrate our strong belief that founder CEOs are better qualified to lead Technology companies than are “hired” CEOs/ professional managers. The CEORater Technology Founder CEO Index returned 13.0% and 10.5% on a Weighted and Unweighted Return basis respectively (click here for detail) during the January 2nd 2018…
Often the best advice one could give an entrepreneur is to “just do it“. “It” could be an idea/project/NewCo or it could be a discreet task. As entrepreneurs our business is our baby. As such, we want perfection. Perfection – while a noble aspiration – is not practical. Entrepreneurs must take action with imperfect information and limited data points – particularly if that which we are creating is paradigm-shifting. People won’t “get it” initially. Thus, it’s critical to get “it” out there. Let people use it, poke it, try to break it, have fun with it. The entrepreneur and team may then collect feedback, refine “it” and repeat the cycle (i.e. the feedback Loop) continuously. In my experience I’ve found that when I’m physically moving (left foot, right foot, walk, jog, run) I’m most creative. Ideas for new opportunities, creative solutions and everything in between rush through my temporal lobe like San Francisco 49ers fans rushing for the exits. Below is a link to a recent CEORater Podcast that took place this summer with fellow entrepreneur Greg Walls of PE28. Enjoy: CEORater Podcast Ep. 21 Movement & The Entrepreneur
For those whom don’t know, the photo is of late/great Intel early employee (technically not a co-founder) and former CEO Andy Grove.
What is the most important factor in identifying companies that will be successful over time? Answer: the senior leadership team.
Quality leaders should be offended when they are referred to as “managers”. Effective senior leadership teams don’t “manage” – they “lead”.
Quality senior leadership teams have a greater influence on a given company’s success (however you want to define it) than any other one variable.
End market you say? Quality teams will capitalize on strong end-markets and have the courage to exit weak end-markets even when it may be politically difficult to do so.
Quality teams set the culture. Quality teams insist on hiring quality people and won’t sacrifice quality to satisfy a growth expectation.
Quality teams will push back on board members who have overly aggressive growth expectations that may jeopardize the company’s foundational core.
Quality leadership teams will pursue new, exciting product initiatives that have promise – even when data points and milestones are few during the early days of that product’s life cycle. Even when doing so may mean cannibalizing the core and pissing off investors.
Nobody said it was easy.