3 Ways Entrepreneurs Can Psychologically Prepare for a Venture Capital Ice Age

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Since initially publishing this newsletter to subscribers two days ago there have been two additional touchpoints worth highlighting:

* firstly, a comprehensive piece has been published on TechCrunch, After the Gold Rush, which lists a number of views from other pundits that back up my prognosis;

* secondly, reports from New York City of a young startup founder who appears to have jumped to her death.

These two incidents may in no way be connected, but the point of this piece is that entrepreneurs should prepared themselves psychologically for the rigours of startup life, which may become a lot harder in coming months.

Here is the original piece I wrote:

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I’ve never been much of a doomsday kind of person. I’ve been through two venture capital ice ages and definitely would not wish one on anyone. That said, the signs are there that we may well be heading into another one – it may be a gradual cooling rather than an overnight freeze, but entrepreneurs need to prepare.

The facts first:
In Q4 financing of startups fell by 6.6% to $17.13bn. This is still high, but it is the lowest in five quarters.

Venture capitalists in Silicon Valley are reigning in the throttle. New financing rounds are being done at lower valuations.

Startups are being urged to cut their cash burn even if they may not yet need to. 10% cuts are now becoming common place. Thanks to John Furrier of SiliconANGLE for this data.

Stats from WSJ/Dow Jones VentureSource point out that the number of US startups valued at $1bn or more for the first time has tentatively dropped by 50% for Q1 ’16 in contrast to Q4, which itself was over 50% down from the Q3 peak. They also point out that 35 of the 48 US tech venture-backed IPOs are trading below their IPO price.

We all know that most startups fail. In the currently cooling climate the number of failures may well skyrocket. Entrepreneurs should continue to listen carefully to their advisers and VC investors regarding trimming back on burn rate and shoring up resources. But what about their emotional side? The pressure of a cooling market can lead to significant psychological stress on founders.

I want to highlight 3 areas that may well help entrepreneurs psychologically prepare with excerpts from my upcoming book, Be Fierce: The Leaders Guide to Unleashing Your Potential:

– Dealing with Failure
– Dealing with Success
– Being Resilient

1. Dealing with Failure
For some people the fear of failure holds them back from doing things. At best such fear is self limiting, at worst it can be debilitating.

Mick Ebeling (of Not Impossible Labs) was able to progress beyond his fear of failure through learning to jump first and making the assumption that the net would appear. He believed things were going to work out even though when he leapt he had no idea how.

You can follow that belief, or you can follow the fear.

He puts it philosophically. We don’t know why we are here, on earth, but it’s not just to make money or have fun. He visualises us all on rickety little boats that are motoring across the narrow of expanse of time that is our lifespan. If we want to be successful then we’ve got to leave a way behind us. If we take life too slow and steady we don’t create a wake and then what’s the point.

The secret to success, for Mick, was the realisation that failure isn’t a big deal.

We tend to find ourselves entangled in what we should and shouldn’t do. When we unravel this we formulate constraints on what can and can’t be done.

They appear fact-like, but they are far from it. They only amount to conversations that we have in our heads, but so often they seem to crystallise into facts.

That’s not a bad thing, as long as the solidifying conversations are motivated by positive, motivating thoughts. It’s when we view fear-induced inner conversations as fact that we limit ourselves.

Without training and mindfully creating a different set of thoughts we can default to that negative conversation.

And so we need to do all we can to banish negative thoughts, banish fear and focus on having a positive conversation in our heads.

You can change reality through the power of what you say to yourself. As your positive thoughts and conversations crystallise into facts, you change reality by having these positive facts guide you, instead of the fearful ones.

By imagining a “Yes” when you’re expecting a “No”, by acting confident when you’re feeling nervous, you can become the person you want to be. Act like the person you want to be and success will triumph over failure.

Success and failure are far from random. They live within the very DNA of our character and personality. They are expressed through our thoughts and actions.

We choose which side of the fine line we find ourselves on – success or failure – by our courage in the face of both adversity and uncertainty and also how we choose to visualise ourselves. Do you see yourself as failing or succeeding?

2. Dealing with Success

Success can come with a dark side.

Loneliness and depression affect everyone in all walks of life. Successful people are more prone to it and entrepreneurs even more so.

Mark Suster, a venture capitalist at Upfront Ventures, believes that success breeds loneliness. It can be a depressogen and in some studies the rate of depression in successful people is higher than 1 in 3.

Mark identifies four reasons success can be a lonely place:
1) the expectations don’t stop – they get higher
2) there is so much more at stake and so many more livelihoods and legacies that you plan for
3) it is only a heartbeat away from failure and the press love a rise and fall story
4) you find yourself surrounded by a bubble and often a bubble with vested interests in your actions.

As leaders you can be thrust into the spotlight of success with far more impetus than other people and are therefore susceptible to the sudden onset of loneliness and depression, many times with no experience in how to identify or cope with it.

One moment Jim was a struggling entrepreneur. His mother kept yelling at him to get a real job. His friends told him that he was crazy. The next moment his company was valued at over a billion dollars and some guy he’d only ever previously seen on the cover of magazines was thrusting a very, very big check into his hands. He spent six months mastering golf and travelling the world. Deep down he began to feel more and more hollow inside. He was becoming detached from his former entrepreneurial self and didn’t know how to identify himself anymore.

What can you do to deal with the dark side of success? There are two avenues you can take.

Explore the dark

Your life exists as a narrative, a story arc with a past, present and future. In order to truly achieve well-being you need to delve into parts of your past and present that you may feel much trepidation about. There may be dark times when your arc dipped low and this darkness cannot be avoided. It must be explored as it leads to the next point.

Tackle the triggers

Loneliness is often exacerbated by triggers. Things happen in your life that for most people would be viewed as slightly negative, but you view them as off-the-charts negative. Having explored the dark you become aware why these things have such an effect on you. You can identify very early on, even before the trigger starts having an accentuated impact on you, that it is there and you can act.

3. Being Resilient

You want to achieve your best, you want to stand out from the pack. We all do.

And so you push yourself. Nothing wrong with being driven, it can help you attain your stretch goals. You equate stress with success. There is nothing wrong with this on the face of it.

Pushing yourself to overcome a challenge with the awareness that you may well have too few resources at hand to do so is the very definition of stress. And in many instances this stress is the very thing that drives you over the edge and empowers you to overcome that challenge. Cultivating short term stress can only lead to better performance, but it can also protect you through a boost to your immune system.

The issue, though, is that you don’t stop there. You push yourself continuously. You don’t give yourself time to decompress.

Isolated stress turns into chronic stress, and that is deadly.

And yet, as a society, we take pride in how hard we work, in how much stress we are under.

Have you ever asked someone how they are and they’ve replied, “Great, very relaxed, taking my time to complete a few projects.”

You are more likely to get the response, “I’m so stressed. I’ve been working like crazy and I’ve got so much to do.”

Take note of a person’s body language when they give you such a reply. They will puff out their chest with pride, their eyes will widen in excitement and they will smile at you. All is right in their world, this is how it ought to be.

And yet it isn’t ok. Annual stress-related healthcare costs have soared into the hundreds of billions of dollars. Chronic stress will weaken your energy reserves, it will reduce your ability to think and ultimately it can kill you.

Stress, like happiness, lives on a continuum. At one end stress is short-term, it is good. At the other it is chronic and bad. To cultivate stress and optimise your performance you need to determine what your stress limits are. Just the right amount and you are in the zone. Too much and you cross the point of marginal returns and the efficacy of stress in boosting your performance degrades.

The most reliable measure of your particular place on the stress continuum is your resilience: how quickly you recover from a stress event. It translates directly from Latin: “to jump or leap again”.

Resilience measures how long it takes you to revert to your restorative state in which you charge up your strength for your next challenge.

You may undergo a major stress and feel like you have recovered quickly. Feeling fine you take on another stress almost immediately. Again, you feel like you’ve made a quick recovery so you dive into a new challenge. However, each stress can build up a level of resistance to reverting to your restorative state. The end result is that you don’t ever fully restore your energy levels. And then one day you suffer a cataclysmic health issue.

When I was an analyst I saw the effect of this firsthand. My colleagues would step off the plane from a particularly gruelling few weeks travelling, only to literally turn around and do it again the next day. Meanwhile, they were pushing themselves to keep up their writing regime so that could meet their publishing deadlines and also working on keynote presentations for looming events. While they thrived on the stress of each one of these activities, it was their cumulative effect that wore them down.

Besides the constant barrage of challenges that we rise to, you may also be depleting your resilience simply by thinking or participating in routine events like reading a magazine or watching the news on TV. Our default though pattern is to think negatively and so the more we engage in activities that are open to being viewed in a negative light, such as emails and interactions with work colleagues, the more likely we are to stress over them and wear ourselves down. Similarly, marketers and the media are well aware of our how stress-inducing stimuli seize our attention and the daily deluge of ‘act now’ messages we receive have a similar affect.

How can you reduce the effect of stress and build up your resilience?

You come home from work after a busy day and decide to destress with a glass of wine. You try to drown out the thoughts that are stressing you by escaping into a reality program, the latest serial on Netflix or a novel.

But then you have to come back to reality. You do this day after day, night after night until the weekend arrives and you find that you are even more stressed.

This is because constant suppression of negativity leads to an increase in negativity. Not only does it cause you to have more negative emotions, but it can also reduce your self-esteem and lead to depression.

The most effective method to build up resilience is to breathe. By controlling your breathing patterns you alter your emotions and induce stress reduction.

When I was in the military I trained myself to take in a deep breath and let it out slowly. This would help to reduce my anxiety about a stressful situation and also increased my clarity of thought so that I could determine how to deal with the situation in the most effective way.

Taking in slow and deep breaths can stimulate your vagus nerve, which acts against your stress-induced fight or flight response to a stressful situation.

Extending your inhalation and exhalation for just 10 minutes a day can noticeably relax you. This in turn reduces your heart rate and lowers your blood pressure. It can also reduce inflammation, improve digestion and brain function.

Deep abdominal breathing involves expanding your diaphragm, the muscle that sits lengthways between your stomach and chest, and reducing your number of breaths by 50% per minute – long and slow, 4-5 seconds in and then 4-5 seconds out.

If you want an even quicker method to activate your vagus nerve, you can immerse you face into a basin of cold water. This method is best done after vigorous exercise. You mainly want to ensure that your eyeballs are completely submerged in the water as they are one of the key vagus nerve stimulation areas.

CEO Richard had a predominantly negative internal dialogue. “We are going to use up all our cash and have to shut down, what will you do then?” Such statements came in waves and at times it seemed like a constant barrage. He delved into one of these times, which has been triggered by a marketing campaign that his internal dialogue told him would fail. What Richard realised is that before the negative thought train left the station there was a primal feeling in the middle of his chest. Feeling always precedes thought. For Richard this was a sharp twisting, squeezing feeling that he best described as crippling anxiety.

He was able to work with this feeling through the practice of meditation. While sitting in his quiet place and meditating, one of these thoughts hit him. Instead of letting it take a hold he decided to explore the feeling itself rather than the accompanying thoughts. He asked himself, “What does it look like? If it were a real thing how would it feel to the touch? What would it smell like?”

These interstitial questions created a major shift in his thought processes. He was able to create a gap between the feeling and the thoughts. Ordinarily, he would notice the feeling and ask himself what was causing him to be anxious. Reasons would flood in. Over a period of months he worked in that gap and strengthened his ability to notice and separate it out.

This enabled him to realise that his anxiety did not stem from any one thing. Instead he had an overarching sense of dread, a feeling that many people experience purely as a result of being conscious.

The act of trying to push that feeling out of his mind had been heightening his anxiety. He decided to accept that it was there, it was a part of him and this acceptance helped ease its affect on him.

By doing so he was accessing his deep well of resiliency, which was as much a part of him as his struggle with anxiety. He did so by essentially standing still, feeling the feeling and not pushing it away with a justification for its existence. From this position of strength he could then return to focus on his purpose, what was driving him to build his company. Coming back to that purpose and holding to it increased his resiliency to the negative barrage.

Remember these three areas, Dealing with Failure, Dealing with Success and Being Resilient, when things get tough for you in your leadership role. Apply them regularly and they will help you deal with the pressure.

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At EXOscalr we work with our clients to unleash their potential and make a difference. We draw on decades of experience, including insights gained in venture capital, corporate innovation, building high growth organizations and advising the Fortune 1000 on transformation.

As a professional coach and adviser I constantly focus on the trends in achieving exponential growth and how you can make more difference.

I read all my email at rand@exoscalr.com and I’m also at +1-650-529-4181 and +1-646-480-0205. Feel free to reach out.

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Unleash Your Potential

Pain (1)

Your dreams are too big to be handled flippantly.
Your bar is out of reach to all but the most determined fingers.
You don’t want to be average, good enough or ok. You don’t want better.
You want best.
But pain precedes potential. It hurts to be great.
So rip away your comfort zones.
Open yourself up to being criticised, ridiculed and sucker punched.
Be your fiercest self yet.
And unleash your potential.

How to Increase Your Capability for Consistently Achieving Exponential Growth

Plan

Think about all the vagaries of running a high-technology venture – as executive leaders you need to be setting the vision, formulating strategies for success and operationally attracting and retaining top-level talent, leading and managing teams, sourcing and deploying scarce resources and negotiating ongoing funding rounds, all while building a sustainable platform and compelling products.

Some CEOs and executive leaders have an innate ability to juggle all these balls, keeping them up in the air and constantly moving their business forward. But for every one such person they are 10 others who become increasingly overwhelmed by the level of chaos that surrounds them.

How can you ensure that across your business, or if you are a venture capitalist across your portfolio, there is a constant capability to harness this chaos and turn it into a proactive force for directionally-correct and exponential growth?

At EXOscalr our mantra is:

No plan, No progress

We have developed a comprehensive Exponential Growth Engine & Operating System designed to support a company and a portfolio of companies in executing and operating at optimal efficiency and performance levels, both individually, as a company and as a portfolio.

The Exponential Growth Engine consists of a set of growth levers, algorithms and methodologies for consistently achieving greater scale. The first step is putting in place a bespoke Exponential Growth Engine for each company and then constantly applying granular methodologies for measuring, monitoring and progressing their rate and direction of growth.

The second step is implementing a companywide, team and individualOperating System (this can be applied consistently across a portfolio as well) that is comprised of three core parts:
1. planning – a cascading set of directionally correct personal and business activities,
2. data – methods for ongoing monitoring and the production of rich data,
3. progress – data-driven refinement designed to keep people, teams, companies and portfolios directionally correct to their overall goals.

Our data points show that such a complex system approach greatly enhances and significantly increases collective capability for achieving high levels of growth.

Should You Become an Angel or Venture Capitalist? Transitioning from Operational Executive to Portfolio Player

ANGEL-VC

Leading executives can become totally focused on their operational role. Yet at some point, a trigger results in them losing their mojo for working in one business. What type of role is better suited to their next phase in life?

I posit that it is a meaningful transition for them to coach entrepreneurs and manage a portfolio of startup investments.

I’d like to illustrate my hypothesis by exploring two case studies.

Finding His Creative Mojo: From Ad Agency to Angel

David is a successful CEO of a world leading advertising agency. He has been focused for the last 12 years on growing the business, its reputation and its people. When he first approached me he felt that something wasn’t quite right. he had used an executive coach for many years, so understood the paradigm. Yet he realized that he needed to work more with a transformational coach. A coach who not only understood the business landscape, but also had firsthand knowledge and understanding of and empathy with people going through a transformational journey.

He loved to sing in the shower, especially on mornings before a big pitch, or when he was traveling on business. But he found himself no longer singing. This was the initial signpost for him to realize that it was time for him to go on a different journey. Many people ignore these early warning signals until it’s too late for them to change.

We spent our initial time together exploring what had excited him before. We delved into what areas he most feared. We explored if there were deep, unresolved issues that could stand in the way of him making a transformational shift. It is always best to work through such issues in the early phases of a transformation. They may cause blockages in your ability to perform. They could also act as blinkers to you discovering what you find purposeful.

We started the process of getting him to hear his inner voice. It had been suppressed for many years by his ego. This voice is always there in every one of us. We may suppress it to the point were it is so faint that we cannot hear it. What we were looking for from his inner voice was a deeper understanding of what resonated for David. What was his true soul work? In his 20s, he had worked with some start up companies on their market positioning. He had also been active in creating a technology spin out from his advertising agency.

He came to the realization that it was time for him to move on from running the operational, day-to-day side of his agency. It was time for him to get back into the world of creating. At his core he was a creative, which is why he had been so successful in the advertising arena. In particular, though, it was time for David to move deeper into the world of startups. Meaning and purpose for him was about building companies that were making a difference in the world.

This was never going to be a binary process, with him being an operational executive one day and a startup portfolio player the next. We had set that expectation early on. He knew it was a significant journey. It would have many moments: some positive, some negative.

A thought leadership position can benefit the move from operational CEO to Non Executive Chairman. David had no interest in writing books, but was keen to do outreach activities. He joined the board of a not-for-profit organization in the medical health arena. He was invited to be be a regular on a well-known, news-related television show. This significantly raised his profile. He took two further board seats of large companies. This positioning helped him make the mindset shift from single focus to portfolio player. It also ensured the right circles noticed when he made the announcement of his transition to Chairman and startups.

The next transition activity was a robust succession plan within the advertising agency. He identified two executives who had the skill set, drive and passion to step up into joint CEO roles. They were both positive about taking over the operational aspects of the agency. They began working with executive coaches to assist them in this process. David also began the discussion with his Chairman about his decision. They mapped out a plan for him to transition into the role of Non Executive Chairman within 24 months. The Chairman volunteered to take a less active board role.

We then began exploring the role that David should play within the start up space. He didn’t want to take on a CEO or other operational role in any one company. Instead he wanted to build a portfolio, working closely with startup CEOs as a coach. He wanted to ask the hard questions. He wanted to accelerate their growth and keep them on track as they scaled up. He preference was to invest into these companies, rather than consult to them. Their upside would be his upside.

He was comfortable working as an independent agent, as a lone wolf. Although he could see the benefit of teaming up with other investors when it made sense. He was suited to becoming an angel investor. He had significant net wealth at that point. His financial investment portfolio was diversified and included properties and blue-chip stocks. He could afford to allocate a few million dollars towards his initial startup portfolio. He was also of the mind that this was risk capital. He wanted to deploy his capital into companies taking bigger risks that had above average goals. He was mentally prepared for the fact that he may not receive a positive return on investment from this activity. It was to be a learning experience.

We worked closely on how to place him within the entrepreneurial ecosystem. He began to get a feel for how he could determine whether a startup was worth looking at closer. He crystallized his Investment Charter. This set out his strategy for the kinds of companies, types of technologies, geographical preferences, stages of development and many other factors that assisted him make investment decisions. The aim was to ensure he was targeting the right kinds of businesses that could deliver him significant return on investment.

As he started doing meetings and due diligence on potential investee companies, we continued with his education in this area. The aim was to make sure that he was not making emotional investment decisions. It was also to ensure that he was able to draw on his significant business experience. He became comfortable that he could add significant value to the companies that he chose to invest in. He wasn’t keen to join a formal angel group. Nor did he want to become part of the herd that chased investments at pitch competitions.

Some of the companies that he was targeting already had angels circling them. In some cases he had a meeting of the minds with these investors. This was one way he was able to start growing a network of angels he was comfortable to invest with. He also reached out to senior executives were either already active, or wanted to get active, as angel investors. Within a matter of months he had four different informal networks that he was teaming up with.

David went on a three year journey from operational CEO to having a portfolio of board seats and angel investments. He has not only found his inner voice but is also singing in the shower again.

Adventure Capital: A Venture Guy’s Journey

Tom was the CEO of a large communications service provider. He had been in this role for six years, having worked his way there from inside the organization.

Similar to David, he reached a point where he no longer saw colors. Tom’s world became black and white. He approached me with the realization that he needed to make some significant changes in his life. He had worked with an executive coach for a number of years and so understood the power of coaching.

He wanted to explore how best he could get excitement back into his life. He had also become enamored with the entrepreneurial fervor that was sweeping the world. He initially sat on the investment committee of his company’s corporate venture capital group. He found that he enjoyed spending time with their investee companies.

His company had already created a succession plan and there was no need for us to revisit that. He was also well known in the business arena. He had a high profile thought leadership position that we could leverage. We could move forward at a fast pace.

Tom decided to make a clean break from his company. We explored the best positioning for him within the entrepreneurial ecosystem. He didn’t want to operate as a lone wolf. He was more comfortable being part of a formal group that had significant track record and a brand name. He preferred to work with a group of partners from whom he could learn the ropes.

Through his corporate venture capital exposure he realized that he didn’t want to work with very early stage companies. He found this time in a company’s development frustrating. He was well suited to work with companies that had already reached product market fit and were experiencing rocket ship growth. For example, startup companies that were about to receive a significant Series A investment.

It became evident that the best place for him to play would be as a partner in a venture capital firm. He had discussions with venture firms that his company had done deals with. He got on well with some partners of these firms. He started receiving offers from VC firms. He chose to join a well-known firm. They were raising a new fund. This meant he could both participate as a limited partner in the fund and as one of the general partners deploying the capital they raised.

I continue to coach him in his position as a VC. There are many VC nuances he is finding a deeper understanding of – for example,

* the healthy tension between being an individual VC and a partner within a partnership;

* the potential for conflict between a venture guy and their investment companies.

* how best to coach portfolio CEOs – what kinds of questions he should be asking, what signs he should be looking for that they are on target and on track both operationally and emotionally.

Both David and Tom have not only stepped up through their transformations. They have also proven the power of having a virtuous circle by referring some of their portfolio CEOs to me and some of their former colleagues have also expressed interest in coaching.

LESSONS LEARNED:

1. Be aware of trigger signs that a transition is imminent. You may miss the signs and find yourself in a trough – it is significantly harder to catalyse a transformation the deeper you fall into a trough. Heeding the signs earlier is better. This ensures there is no urgency to your transformation journey.

2. Be prepared for significant change. Transformation is never linear and this organic journey may take you places you didn’t initially imagine. Go with that flow.

3. Be prepared to listen to your inner voice. You may have a tussle with your ego not wanting to let go. Eventually your inner voice will win out.

4. The world of startups is not for everyone. Nor is being an entrepreneurial investor. Go there for the right reasons – it resonates deeply with you, you enjoy creativity, you have the right risk appetite and profile. Don’t go there because you’ve read in a business or in-flight magazine how hot startups are or how much money you could make in the space.

5. Don’t burn bridges. Once you’ve made your mind up to transition, do so gracefully. Ensure the right succession plan is in place. Leverage your current position to create your thought leadership position. This will ensure you optimize your transformation trajectory. You already have a solid network in place, they want to help.

[Note: Names and situations have been altered for confidentiality reasons]

Finding Your Soul Work: A Journey from Near Death to Nirvana

EXO1Rewind back to early 2014 and I was enjoying working for the world’s leading research and advisory firm as an executive leadership and innovation analyst. I spent my days flying around the world advising Fortune 500 Boards, CEOs and CxOs on growth, leadership and disruptive innovation.

On a Sunday night, mid-February, I’d prepped for an international flight in the morning and then…I dropped dead from a sudden cardiac arrest. I was able to revive myself, but was in a state of conscious ventricular tachycardia, a severely life threatening condition in which the heart beats at an extremely rapid rate.  I was rushed to hospital and spent several weeks undergoing a number of surgeries and also had a mini stroke, which was terrifying. I’ve detailed my health journey over this time (here and here), but in summary after an initially positive response my health deteriorated from mid 2014 leading to a further operation in December. Since then my health has improved dramatically.

Coming out of hospital for the first time in March 2014, I felt extremely grateful for being alive, for breathing fresh air and I saw the world through fresh eyes. I felt at the time that I had to make use of this opportunity to do something world changing. How could resuming the status quo be sufficient?

As Joseph Campbell puts it, “Only birth can conquer death – the birth, not of the old thing again, but of something new.

But what was it that I would do that was new? As the months passed, I spoke with many people, considered diving into a few opportunities and also went back to my work as an analyst. I realized that I’d been given a very rare second chance at life and to honour that I needed to do more than what I had been doing. I also realised that what I did had to resonate within me, deeply.

Steve Jobs explains this so eloquently, “Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

Even though I had some very trying times over the course of 2014, I was enthused by the journey I’d embarked on to search for my soul work, my calling. I came to realise that during my time as a VC and previously as a coach, I found most joy in helping great people transform themselves into being extraordinarily great – asking the right questions, guiding them to make the right decisions and acting as a trusted advisor. In this regard the role of a VC and a coach are very similar. As Roelof Botha of Sequoia Capital points out, the role of a VC is to help entrepreneurs navigate and solve problems on their own, to provide perspective and ask the right questions, and to provide frameworks for decision-making.

And so I’m super excited to announce that I’ve left my high flying analyst role and set up EXOscalr, the elite performance and transformational coaching and advisory firm. Our moonshot is to help create $1 trillion in value over the next ten years while also positively impacting 2 billion people. To achieve this goal we are working with entrepreneurs and leaders who have the capability to build exponentially scalable or exoscale companies, leaders who we can guide through a transformation into elite performers.

I invite you to join me on this journey.

Achieving Flow In The Face of Near Death: My Recent Experience

Flow

I had one of those major mind focusing events over the past three weeks.

I collapsed on the evening of Sunday, 16th February for 15 seconds and then went into an extraordinary conscious ventricular tachycardia at 200 bpm. The ambulance crew were astounded that I was conscious. The trick was flow – I’ve been a proponent since my youth when I was an elite athlete and serious surfer. I managed to pull myself into the zone and maintained this on the journey to the hospital. En route a code 3 had been called and I was greeted at Royal North Shore Emergency by a crack team of 15 doctors. I was still at 170 bpm and they were literally just about to stop my heart and try to shock me out of the tachycardia, when to their amazement I self reverted down to 70 bpm. I’d like to say it was flow again, but my humility refuses and I dare not say I purposefully did that all myself.

I was very lucky. This conscious VT event took place at home and my quick thinking family called 000 immediately. That morning I’d done a stand up paddling training session alone and in the dark, with no safety devices. And the next morning I was scheduled to fly to New Zealand on business. If this event had happened in the air or out on the water I’d very likely not be having this dialogue.

After a series of extensive tests, the specialists determined the best course of action for me would be the insertion of an implantable cardioverter defribrillator. The plumbing of my heart reflected my super fit status, but for some reason the electrics were out of whack.

I had the device installed on Thursday, and on Friday afternoon I walked out of intensive care for the first time in a week and into a private room for recuperation. I felt like a new man, but this feeling was shortlived. Unfortunately a clot had developed and within fifteen minutes my speech slurred and I lost all feeling on my right hand side. Again I was very lucky, as my wife noticed the signs of a stroke immediately and called the medical staff who jumped into action. It was a very scary feeling and not one I’d like to repeat. Within about 20 minutes I began to get feeling back, again to the amazement and relief of the medical staff and my family. I’d had a mini stroke or transient ischemic attack and the clot had moved through my brain.

I again found myself in Emergency and it was established that while I had about 85% recovered from the stroke there was still a strong possibility of further clots. I was given a thrombolysis – a very powerful procedure that reversed all effects of the stroke and broke up any other clots. This was a very intense six hours as there was the possibility of a haematoma developing on the brain.

I made it through that phase, but a haematoma did develop around my defib wound site. I spent another week in intensive care and returned home on Saturday 1st March. The haematoma developed some complications and a week later I was operated on to drain the site – the fear being infection. I remained in hospital on intravenous antibiotics and was discharged on Monday, 10th March.

All through this experience I was thinking about flow, performance and optimizing human development, aided in part by reading Steven Kotler’s book, The Rise of the SuperMan.

Commenting on my experience, Steve says, “It  did seem like you’ve moved through fight or flight and into flow – a very difficult thing to do, so you have some mad skills!”

This whole episode has got me really thinking hard about what I do with my life once I’ve recuperated. I know I have been given a gift, a second chance, and I also know that I’ve adopted a new mantra, GO BIG.

I’m still working this all through, processing and thinking about what I do next. I’m going to have some interesting conversations over the coming weeks.

FounderTalk: Pic-See’s Yen Lim discusses apps with a purpose

Pic-See

Sydney-based Yen Lim has developed Pic-See, an incentive-driven visual communication system for children with early learning needs. She was inspired to embark on this journey by her experience working with a 3 year old boy with autism while she was completing her Honours Degree in Psychology at The University of Sydney.

As a passionate psychologist she believes that research and technology can, and should, be integrated into widely accessible solutions that improve quality of life. Through this filter she observed how special needs teachers were taking many hours to source and create libraries of visuals to use in day-to-day therapy. It struck her that there must be thousands of parents, carers, teachers and therapists around the world laminating paper-based visuals and she thought, “Surely, there has to be an easier way!”

This is so often the catalytic event that launches entrepreneurs into action!

The original concept behind Pic-See was to make it easier to construct and implement visuals, so valuable time and energy would not be wasted. Yen felt that time should rather be invested in what matters most to dedicated parents, teachers and therapists, namely engaging and connecting with those they care for.

In developing Pic-See Yen wanted to utilise touch-screen technology to reduce the long-term labour-intensive, environmental and monetary costs associated with producing visual communications systems.

Pic-See not only replaces outdated paper-based systems, but also captures the imagination of users to make visually-based learning fun. The app is packed with images and animations designed by graphic artists, purposely created sound effects to enthral users, an drag-drop interface to build visual sequences, the ability to customise visuals with imported images, the ability record audio to promote verbal communication skills, an emotions centre, a choice board, and a data centre to capture the achievements of users and areas in need of further development.

 

Yen’s key lessons learned in embarking on this adventure are:

  •  It’s a full time job. Surround yourself with people who can help.

What she thought would be a straightforward app to develop, soon turned out to be a highly complicated technical project. Being new to the world of entrepreneurship she had a steep learning curve. She says, “Be prepared to dedicate yourself as it’s a full time job. Surround yourself  with people who can make the journey easier. If I could go back in time, I would definitely seek out a mentor who can guide me through the app space and the broader ecosystem, not just to survive but to thrive.”

  • Once the app is developed it’s just the beginning

The market moves quickly. App-spaces are dynamic environments. You have less than 18 months to take your product to launch, listen and respond to the ecosystem, keep your ideas fresh and turn your brand into a household name. This is a process that requires time, perseverance, a lot of hard work and a willingness to venture into the unknown.

  • Marketing is everything

A strategic marketing plan is essential. It’s one thing to have a great product, but if no-one is benefiting from it your app can get swept away by a flooded market.

  • You need  a strong business model

Thomas Edison said, “Many of life’s failures are people who did not realise how close they were to success when they gave up.” Having a great idea for an app is definitely the first step, but deciding to take the plunge, backing yourself and growing a startup, is arguably the most difficult. A strong financial and business plan is needed for your idea to realise its true potential.

  • Secure funding

Passion has driven the development of this app. Yen invested her personal funds into Pic-See. She strongly suggests seeking government grants (if available) and skilling up on how to approach investors.

Raising Capital: How To Prepare The Perfect Pitch

I’ve sat on both sides of the table countless times in the fundraising process. I’ve seen some great pitches and I’ve seen some terrible ones. My highlight was doing a pitch to a venture firm in Steve Jobs old boardroom in Cupertino. One thing is constant in the world of pitching – everyone has an opinion on what makes the perfect pitch.

The guys at Incubate are hard at work preparing for their Demo Day later this month and my recommendation to them and to anyone else getting ready to pitch is to watch this video by Nathan Gold. He walks through a solid, yet simple deck of slides and gives great advice on how to pitch as well:

 

 

Here is the deck of slides Nathan refers to: