What’s the best way to raise money?

Henry Ward (Founder & CEO at eShares)
eShares Series A — Medium

And below is five lessons learned (especially for fin-tech startups). Fundraising is a filtering exercise, not a popularity contest. If you are a fintech startup, go East! Ask for feedback other than “the market size isn’t big enough.” Avoid VCs who ask for unit economics. Success is harder than failure.

What’s the best way to compensate employees?

Henry Ward (Founder & CEO at eShares)
eShares 101 — Medium

1. Compensation (salary + equity) is determined by the market for your skill set, and your skill level. That means there is no automatic annual raise of 2-4%. 2. Increase compensation by increasing marketability. 3. You will be marked-to-market at your 9-month anniversary and every 12 months thereafter. 4. We target being in the 75th percentile for your compensation.

What’s the best way to be a good manager?

Henry Ward (Founder & CEO at eShares)
eShares 101 — Medium

[at eShares we say… ] You will do a 1-on-1 walk with your manager every 2–3 weeks, with your manager’s manager every 4–6 weeks, and with me every 4–6 months. Go for a walk for 30-40 minutes. Have fun — this is your time. Talk about what’s on your mind. It doesn’t need to be work related.

What’s the best way to raise money?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
The Role Of Personal Chemistry In Investment Selection – AVC

There are four phases to this process. The first impression, Subsequent meetings, Reference checking, The negotiation

Paul Graham (Co-Founder & Partner at Y Combinator)
The Hacker’s Guide to Investors

Investors always say what they really care about is the team. Actually what they care most about is your traffic, then what other investors think, then the team. If you don’t yet have any traffic, they fall back on number 2, what other investors think.

Paul Graham (Co-Founder & Partner at Y Combinator)
Default Alive or Default Dead?

If you have steep revenue growth, say over 6x a year, you can start to count on investors being interested even if you’re not profitable

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
College and Entrepreneurship – AVC

I believe 21 founders out of a total of 72 that we have backed in the history of USV did not graduate from college. That’s about 30%.
However, I believe 17 founders have advanced degrees, including a few PhDs. So roughly a quarter of the founders we’ve backed have invested heavily in their higher education.
There are no specific credentials required to get funded by USV or most other VC firms. You need to be credible as an entrepreneur. That me… (read more)

Bruce Gibney (Former Partner @ Founders Fund)
Peter Thiel’s CS183: Startup – Class 8 Notes Essay

There’s a romantic notion that the only thing that matters is product and that you can devote yourself to that entirely. That is false. In fact, fully half of your job is selling the company because the CEO is the only one who can actually pitch effectively (no VC wants to be pitched by the VP of Sales).

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
What Seed Financing Is For – AVC

The first step you need to climb is building a product, getting it into the market, and finding product market fit. I think that’s what seed financing should be used for. The second step you need to climb is to hire a small team that can help you operate and grow the business you have now birthed by virtue of finding product market fit. That is what Series A money is for.
The third step you need to climb is to scale that team and ramp revenues a… (read more)

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
In Between: The Tough Place To Be – AVC

Entrepreneurs need to understand this. There are a ton of options out there for early stage funding. And if you get to the stage where you need a growth round from a big fund, there are plenty of options for that too. But if you are looking for a Series B round to help you grow from early revenue status to true growth status, you are going to find that challenging.
To put it another way, there are plenty of us who fund hopes and dreams. And plen… (read more)

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Revenue Based Financing – AVC

A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenues to the investor. For simplicity, you can think of it as a revenue share type of arrangement. Investor gives capital to company in exchange for a small percentage of gross revenues. RBF lives as a hybrid of bank debt and venture capital. This kind of financing has been around for a while in non-tech industries … (read more)

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

If you have multiple founders, pick one to handle fundraising so the other(s) can keep working on the company. And since the danger of fundraising is not the time taken up by the actual meetings but that it becomes the top idea in your mind, the founder who handles fundraising should make a conscious effort to insulate the other founder(s) from the details of the process. The founder who handles fundraising should be the CEO, who should in turn b… (read more)

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

Most companies in a position to grow rapidly find that (a) taking outside money helps them grow faster, and (b) their growth potential makes it easy to attract such money. It’s so common for both (a) and (b) to be true of a successful startup that practically all do raise outside money. But there may be cases where a startup either wouldn’t want to grow faster, or outside money wouldn’t help them to, and if you’re one of them, don’t raise money.

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

Because fundraising is so distracting, a startup should either be in fundraising mode or not. And when you do decide to raise money, you should focus your whole attention on it so you can get it done quickly and get back to work.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
The Other Benefit Of Fundraising – AVC

Treat your fundraising process as two things. First and foremost, it is about getting the capital you need to operate and grow your business. But it is also a fact finding mission about the things you need to address to make your business better. Don’t forget to do the second thing because it is a fantastic opportunity to improve your business for the long haul.

Henry Ward (Founder & CEO at eShares)
eShares Series A — Medium

And below is five lessons learned (especially for fin-tech startups). Fundraising is a filtering exercise, not a popularity contest. If you are a fintech startup, go East! Ask for feedback other than “the market size isn’t big enough.” Avoid VCs who ask for unit economics. Success is harder than failure.

Paul Graham (Co-Founder & Partner at Y Combinator)
Before the Startup

There are tricks in startups, as there are in any domain, but they are an order of magnitude less important than solving the real problem. A founder who knows nothing about fundraising but has made something users love will have an easier time raising money than one who knows every trick in the book but has a flat usage graph. And more importantly, the founder who has made something users love is the one who will go on to succeed after raising th… (read more)

Paul Graham (Co-Founder & Partner at Y Combinator)
The Hacker’s Guide to Investors

This is how most venture investors operate. They don’t try to look at something and predict whether it will take off. They win by noticing that something is taking off a little sooner than everyone else. That generates almost as good returns as actually being able to pick winners. They may have to pay a little more than they would if they got in at the very beginning, but only a little.

Paul Graham (Co-Founder & Partner at Y Combinator)
Before the Startup

The best way to convince investors [to invest] is to make a startup that’s actually doing well, meaning growing fast, and then simply tell investors so. [Founders] want to know what the tricks are for growing fast. And we have to tell them the best way to do that is simply to make something people want

Reid Hoffman (Partner & Co-Founder at Greylock Partners)
LinkedIn’s Series B Pitch to Greylock: Pitch Advice for Entrepreneurs

Investors see a lot of pitches. In a single year, the classic general partner in a venture firm is exposed to around 5,000 pitches; decides to look more closely at 600 to 800 of them; and ends up doing between 0 and 2 deals. The goal of an entrepreneur is to be one of those deals.

Boris Wertz (Founder of version one ventures)
Nine common things that start-up founders tend to underestimate or overestimate – Version One

No amount of money in the world is going to get you to product-market fit. And raising too much money before you find product-market fit will usually kill your start-up.

Sam Altman (President at Y Combinator)
Startup Playbook

The secret to successfully raising money is to have a good company. Always explain why you could be a huge success. It is a bad idea to try to raise money when your company isn’t in good enough shape to attract capital. You will burn reputation and waste time.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Getting The Deal Done – AVC

Sometimes you just need to get the deal done. When you are burning through cash and need to finance your company, the terms might suck, but the cash doesn’t. So you do the deal and live to fight another day. Marc and Ben did the right thing at LoudCloud and Jack Dorsey did the right thing at Square. If you believe in your business and yourself, take the money and get back to work. A financing is not an exit. The price matters less than the cash m… (read more)

Amir Elaguizy (CEO Cratejoy, YC Alumni)
58 things I learned at YC – Giftshop Scientist

Angels are a LOT easier to get checks from than VCs

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

The number one thing you want from [early] fundraising is to get the money you need, so you can get back to focusing on the real test, the success of your company. Number two is good investors. Valuation is at best third.

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

Over the past several years, the investment community has evolved from a strategy of anointing a small number of winners early and then supporting them for years to a strategy of spraying money at early stage startups and then ruthlessly culling them at the next stage. This is probably the optimal strategy for investors.

Paul Graham (Co-Founder & Partner at Y Combinator)
Startup Investing Trends

There’s a rule of thumb in the VC business that there are about 15 companies a year that will be really successful. Although a lot of investors unconsciously treat this number as if it were some sort of cosmological constant, I’m certain it isn’t.

Paul Graham (Co-Founder & Partner at Y Combinator)
The Future of Startup Funding

A startup will probably get more attention from investors in a Series A round than an angel round. So if a startup is choosing between an angel round and an A round from a good VC fund, I usually advise them to take the A round.

Rob Go (Co-Founder and Partner at NextView Ventures)
Using Capital as a Weapon – ROBGO.ORG

As seed stage investors, we find that we tend to prefer modest sized rounds early on to focus a team and establish discipline around being excellent at one thing and proving things out efficiently. But beyond the seed stage, capital is primarily about winning and winning big. We look to invest in [high potential] companies with capital efficient beginnings, and usually, those types of companies do take in a fair bit of capital and use that capita… (read more)

Sam Altman (President at Y Combinator)
Fundraising Advice for YC Companies – Y Combinator Posthaven

You should care more about good investors than good valuations. Talk to the founders of the companies that investor has funded (especially in cases when the companies haven’t worked out). You should insist on clean terms (in practice, offering messy terms is a sign of being a bad investor).

Sam Altman (President at Y Combinator)
Fundraising Advice for YC Companies – Y Combinator Posthaven

The best investors know that the most important thing to figure out at [the early] stage is how much your users love you. Great engagement and word of mouth growth are magic for fundraising. Growth is obviously still really helpful.

Sam Altman (President at Y Combinator)
Fundraising Advice for YC Companies – Y Combinator Posthaven

It’s important to articulate why the company will eventually be in a strategically valuable position (i. e. a monopoly). It’s important to articulate your mission. Don’t be arrogant–this is a tactic that somehow does manage to work for fundraising some of the time for some founders, but most of the time it doesn’t.

Sam Altman (President at Y Combinator)
Party rounds – Sam Altman

I think the rising popularity of party rounds is bad for companies. Having at least one investor very focused on your company is valuable. A closely involved investor will help coordinate your next round…

Sam Altman (President at Y Combinator)
Fundraising Mistakes Founders Make – Sam Altman

The process is simple: Get intro’s to investors you want to talk to and reach out to them, in parallel [to set up a competitive environment]. Explain to them why your company is likely to make them a lot of money.

Sean Ellis (CEO at GrowthHackers)
Figuring Out Your Way to Startup Success

It is obvious that the effort required to raise VC funds can be a major distraction from executing the business, but few realize that the repetitive discussions about financial outcomes can also shut down your ability to figure stuff out.

Slava Akhmechet (Founder at RethinkDB)
57 startup lessons

Don’t fall in love with the fundraising process. Get it done and move on.

Mark Suster (Managing Partner at Upfront Ventures)
So What is The Right Level of Burn Rate for a Startup These Days? | Bothsides of the Table

The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. In other words, raising $2 million at a $6 million pre-money valuation has always been easier & quicker than raising $20 million at any valuation.

Mark Suster (Managing Partner at Upfront Ventures)
So What is The Right Level of Burn Rate for a Startup These Days? | Bothsides of the Table

When you raise larger rounds there is more “due diligence,” which includes: calling customers, looking at financial metrics, doing cohort analysis (looking for trends like changes in churn rates), evaluating competitor positioning and understanding more of the competency of your executive team.

Mark Suster (Managing Partner at Upfront Ventures)
So What is The Right Level of Burn Rate for a Startup These Days? | Bothsides of the Table

My advice: be cautious, start early, get to know investors before you need capital, do your research on who is a likely good fit and understand that fund-raising is always part of your job – not something you do in “fund-raising season” for 2-3 months every other year

Mark Suster (Managing Partner at Upfront Ventures)
So What is The Right Level of Burn Rate for a Startup These Days? | Bothsides of the Table

People who think of fund raising as a “distraction away from the core business” fundamentally don’t understand that running a business comprises of: Shipping products, selling to & servicing customers, marketing, HR, recruiting, financial reporting AND making sure you have enough money to support operations.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Angels vs. Venture Capitalists – Ben’s Blog

If you are a small team building a product with the hope of “seeing if it takes” (with the implication being that you’ll try something else if it doesn’t), then you don’t need a board or a lot of money and an angel round is likely the best option. On the other hand, if you’ve developed a strong belief in your product or your product idea and you are in a race against time to take the market, then a venture round is more appropriate.

What’s the best way to compensate employees?

Philip Sugar (Founder & President @ SpringActive)
The Management Team – Guest Post From Phil Sugar – AVC

I am in charge of recruiting. I will have somebody managing the process as we grow; departments do the interviewing, but bottom line, if my people are better than your people I win. I go on as many sales calls and customer visits as I can. I’ve been told that once I hire a Head of Sales, I should stay out of the process. I totally disagree. The top producer makes more than the manager. If the only way people think they can make the most money… (read more)

Mitchell Harper (Co-Founder & Board Member @ Bigcommerce)
28 things I’d do differently next time around — Medium

Tie a good amount of everyone’s bonus to a customer success metric

Michael Mauboussin (Managing Director and Head of Global Financial Strategies at Credit Suisse)
Untangling Skill and Luck

Ideally, a compensation program pays an individual for his or her skillful contribution toward achieving a desirable objective. Compensation programs need to be modified so as to strip out as much randomness as possible.

Henry Ward (Founder & CEO at eShares)
eShares 101 — Medium

1. Compensation (salary + equity) is determined by the market for your skill set, and your skill level. That means there is no automatic annual raise of 2-4%. 2. Increase compensation by increasing marketability. 3. You will be marked-to-market at your 9-month anniversary and every 12 months thereafter. 4. We target being in the 75th percentile for your compensation.

Leo Polovets (General Partner @ Susa Ventures)
Analyzing AngelList Job Postings, Part 2: Salary and Equity Benchmarks · Coding VC

[from 2014] Assuming that a startup has two founders, here are some ballpark numbers for engineering job offers:

Salary:
For employee #1:
20th percentile salary range is $70k – $100k
50th percentile salary range is $80k – $120k
80th percentile salary range is $82k – $135k

For employees #2 through #13, salaries rise for higher paying jobs:
20th percentile salary range is $75k – $100k
50th percentile salary range is $85k – $125k
80th percentile s… (read more)

Unknown (who knows!?)
Explore Salary & Equity Data

https://angel.co/salaries has useful information to identify market rates

Aaron Patzer (Founder & CEO of Fountain, Mint)
Aaron Patzer lays bare Mint’s numbers – YouTube

My first engineer at Mint I paid $3,000/mo. That’s what I paid my second engineer as well. [They] got 2% and 1.5% equity. I hired my VP of Engineering who was [previously] making 180k for 90k but I gave him 4% equity.

Jeffrey Minch (Entrepreneur – ‎Littlefield Advisors)
The Management Team – Guest Post From JLM – AVC

A good comp plan includes: Salary; Benefits; Short term incentives (measurable performance based bonus); Long term incentives (equity); and something special (work from Colorado two weeks per year).

David Jackson (Founder, Seeking Alpha)
Promote fast | A Founder’s Notebook

Promote fast. A simple litmus test for promoting someone is: Are there additional, meaningful responsibilities you want to give this person? If so, promote them. If not, don’t. And “promote fast” then means: Don’t be scared to throw extra responsibilities at capable people.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Titles and Promotions – Ben’s Blog

There are two schools of thought regarding this. Marc Andreessen argues that people ask for many things from a company: salary, bonus, stock options, span of control, and titles. Of those, title is by far the cheapest, so it makes sense to give the highest titles possible… If it makes people feel better, let them feel better. At Facebook, by contrast, Mark Zuckerberg… avoids accidentally giving new employees higher titles and positions than bette… (read more)

What’s the best way to be a good manager?

David Jackson (Founder, Seeking Alpha)
Minimize internal co-ordination costs | A Founder’s Notebook

Minimize internal co-ordination costs

David Jackson (Founder, Seeking Alpha)
What makes a great employee — Cameron Purdy | A Founder’s Notebook

There are three areas where VPs should ask their CEO questions: (i) Have I understood my goals correctly? (ii) Have I understood your input correctly? (iii) Can you help me solve my problems and achieve my goals?

Jeffrey Pfeffer (Professor of Organizational Behavior at Stanford Graduate School of Business)
Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting from Evidence-based Management

When a group does creative work, a large body of research shows that the more that authority figures hang around, the more questions they ask, and especially the more feedback they give their people, the less creative the work will be. Why? Because doing creative work entails constant setbacks and failure, and people want to succeed when the boss is watching.

Peter Fenton (General Partner at Benchmark)
Sunday Conversation #1: Peter Fenton, Benchmark Capital – Haywire

My partner, Bob, likes to say, “Be a learn-it-all, not a know-it-all. ” Being a learn-it-all means you have to be very self-effacing around what you do and don’t know, apply critical thinking, and don’t assume that what you’ve been told is right. That trait is a muscle, I think, that you have to continually work on

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Practical advice on how to train your managers | A Founder’s Notebook

Management training is the best place to start setting expectations for your management team. Do you expect them to hold regular one-on-one meetings with their employees? Do you expect them to give performance feedback? Do you expect them to train their people? Do you expect them to agree on objectives with their team? If you do, then you’d better tell them

David Jackson (Founder, Seeking Alpha)
Being metrics-driven leads to brutal intellectual honesty | A Founder’s Notebook

Being metrics-driven leads to brutal intellectual honesty. If your success is defined entirely by how well you achieve your goals and metrics, you’ll care only about which arguments are correct and which ideas are the best, irrespective of who they come from. Getting managers to be truly metrics-driven is far harder than it seems. In my experience, it also requires significant coaching.

John Beeson (Principal of Beeson Consulting)
Let Your Team Help You Manage Your Time

A few years ago I was asked to coach an executive I’ll call Tom. I suggested that Tom give thought to four questions: 1. Where could he add the greatest value to the company in his new role? 2. What were the topics and issues he should be intimately involved in — and which could he off-load to staff? 3. How was he spending his time today — and how would he like to be spending his time six months from now in order to devote adequate time to his v… (read more)

Sam Altman (President at Y Combinator)
Startup Playbook

Extreme internal transparency around metrics (and financials) is a good thing to do. For some reason, founders are always really scared of this. But it’s great for keeping the whole company focused on growth.

David Jackson (Founder, Seeking Alpha)
The best career advice you can give in two minutes | A Founder’s Notebook

People are most successful at what they most enjoy. “What you most enjoy” is determined by types of activities, not domain subject matter. The types of activities you enjoy are deeply related to your personality type. So find what you love doing (by thinking about which types of activities best fit your personality type), and go work for a fast-growing company doing those activities

David Jackson (Founder, Seeking Alpha)
Can you reduce the startup CEO role to a single key talent? | A Founder’s Notebook

You can’t do everything well at once, you have to rotate your focus to whichever aspect of your business needs the most attention.

Laszlo Bock (SVP of People Operations for Google)
Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead

1. Be a good coach. 2. Empower the team and do not micromanage. 3. Express interest / concern for team members’ success and personal well-being. 4. Be very productive / results oriented. 5. Be a good communicator — listen and share information. 6. Help the team with career development. 7. Have a clear vision / strategy for the team. 8. Have important technical skills that help advise the team.

Nick Mehta (CEO at Gainsight)
The Second-Timers: Nick Mehta, CEO of Gainsight – “Never Stop Hiring Reps” | SaaStr

You need to focus on product. You need to be sales-oriented. You need to be customer-centric. You need to be all about culture. The business model depends on all functions working in harmony.

Tony Simons (Associate Professor at Cornell University’s School of Hotel Administration)
The Integrity Dividend: Leading by the Power of Your Word

Where employees strongly believed their managers followed through on promises and demonstrated the values they preached were substantially more profitable than those whose managers scored average or lower. No other single aspect of manager behavior that we measured had as large an impact on profits

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
How Well Do You Take A Punch? – AVC

The best entrepreneurs do this well. They can take a hit and keep moving forward. And they can rally their teams to do the same thing. That latter point is so important. If the leader is down for the count, the team doesn’t have a chance. But if the leader is up and moving forward, with passion and committment to the goal, then the team will follow.

Jack Welch (former CEO of General Electric)
Jack Welch’s Legacy – The Globalist

Giving people self-confidence is by far the most important thing that I can do. Because then they will act.

Geoffrey James (a contributing editor for Inc.com, is an author of the award-winning blog Sales Source)
The No-Nonsense Business Advice You Need to Hear | Inc.com

For bosses, I think the hardest thing is letting people make their own mistakes. Resisting the desire to intervene. It’s the whole question of whether you are controlling people or coaching people. You can’t do both.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Don’t Let A Good Crisis Go To Waste – AVC

When something goes badly in your company, for many the initial instinct is to keep things under wraps as much as possible to avoid freaking everyone out. I would argue that it is better to acknowledge the crisis and use it to your advantage.
Change is hard to bring to an organization and a time of crisis is often a perfect time to make some changes that you have wanted to make for a while. It creates a perfect backdrop and context for doing tha… (read more)

David Jackson (Founder, Seeking Alpha)
How to get stuff done | A Founder’s Notebook

Be clear about what you need to get done. Go for quick wins. A “Quick Win” is a small project you can get done fast which leads to tangible results. Quick wins are crucial because you learn from successes, not from failures. Don’t let small projects become large projects before they launch. Maximize what you can get done on your own. Identify the key person you need to collaborate with, and don’t involve anyone else.

Henry Ward (Founder & CEO at eShares)
eShares 101 — Medium

[at eShares we say… ] You will do a 1-on-1 walk with your manager every 2–3 weeks, with your manager’s manager every 4–6 weeks, and with me every 4–6 months. Go for a walk for 30-40 minutes. Have fun — this is your time. Talk about what’s on your mind. It doesn’t need to be work related.

David Jackson (Founder, Seeking Alpha)
Managers and metrics | A Founder’s Notebook

Owning a metric means taking complete responsibility for success in that metric. In Seeking Alpha, “owning a metric” means taking responsibility for the success of that metric in the medium term. Every manager reports metrics monthly, but we care about medium term success. If you miss a monthly target, the key to medium term success is to take the short term miss seriously. If you explain away your monthly metrics, you’ve thrown away their value … (read more)

David Jackson (Founder, Seeking Alpha)
Managers and metrics | A Founder’s Notebook

It’s the CEO’s responsibility to make sure that every manager personally owns a meaningful metric. Owning a metric means taking complete responsibility for success in that metric. If you justify misses in your metric after the fact, you don’t own the metric — you’re “a best efforts guy”.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
The Scale Anticipation Fallacy – Ben’s Blog

Managing at scale is a learned skill rather than a natural ability. Nobody comes out of the womb knowing how to manage a thousand people. Everybody learns at some point

David Jackson (Founder, Seeking Alpha)
Setting clear goals = empowerment | A Founder’s Notebook

When you give people clear goals and metrics, it releases them from being micro-managed at the task level.

David Jackson (Founder, Seeking Alpha)
Setting clear goals = empowerment | A Founder’s Notebook

In many roles, being given responsibility for a measurable goal also allows employees to manage their time as they want to. That can be particularly important for companies that want to create a culture which is attractive to people who care about family time

David Jackson (Founder, Seeking Alpha)
Saying “no” to good ideas | A Founder’s Notebook

The job of a great manager is to focus the company’s limited resources on what’s most impactful. That means saying “no” to good ideas. Saying “no” to bad ideas is easy. It’s the good ideas that can distract and de-focus you

David Jackson (Founder, Seeking Alpha)
A better way to view people | A Founder’s Notebook

Try to place each person in a role where their strengths have the biggest impact and their weaknesses and flaws don’t matter.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Ones and Twos – Ben’s Blog

CEOs that [insist upon super clear goals and strongly prefer not to change goals or direction unless absolutely necessary], despite their love of action, can sometimes slow decision making in a company to a halt.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Becoming A Boss – AVC

Many artists stick to making and hire a manager to focus on their business. You can devote yourself totally and completely to the manager role and hire people to lead the making effort. The third way is to keep your hands in both efforts. To be both the maker and the manager. The challenge with that approach is you have two full time jobs and I have not seen many who can do both as well as they need to be done. I cannot and will not recommend one… (read more)

Dr. Dana Ardi (Corporate Anthropology Advisors)
MBA Mondays: Guest Post From Dr. Dana Ardi – AVC

Do away with archaic command-and-control models. Winning workplaces are horizontal, not hierarchical.Everyone who works there feels they’re part of something, and moreover, that it’s the next big thing. They want to be on the cutting-edge of all the people, places and things that technology is going to propel next.

Angela Baldonero (Senior Vice President of People and Client Success @ Return Path)
MBA Mondays: Guest Post From Angela Baldonero – AVC

My advice to you is to set your people free to focus on important, high impact work and solve challenging business problems. That’s how companies will win now.

Joel Spolsky (CEO @ Stack Exchange)
The Management Team – Guest Post From Joel Spolsky – AVC

The “management team” isn’t the “decision making” team. It’s a support function. You may want to call them administration instead of management, which will keep them from getting too big for their britches. Administrators aren’t supposed to make the hard decisions. They don’t know enough. All those super genius computer scientists that you had to recruit from MIT at great expense are supposed to make the hard decisions. That’s why you’re paying t… (read more)

Seth Godin (Founder at Yoyodyne Entertainment)
Seth’s Blog: Loose/tight, thoughts on management

But mostly, we need the insight and judgment and leverage that employees bring us. All of us are smarter than any of us, and adding people can, if we do it right, make us smarter and faster and better at serving our customers. It can’t work, though, if you insist that the employees read your mind. If you have to spend as much time watching and measuring your team as the team spends working, then you might as well just do the work yourself. We fai… (read more)

Seth Godin (Founder at Yoyodyne Entertainment)
Seth’s Blog: Volunteer engagement

The key elements are: An agenda, Peer support, A hierarchy of achievement, Better structures lead to better work. People who care can magnify their impact by building structures that bring in more people who care.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Tech Ops As A Metaphor For Building, Running, & Leading A Company – AVC

Blameless post-mortems are the key to learning from a tech ops crisis – fear driven organizations do not scale. Over-reacting to a crisis is likely to make it worse.

David Jackson (Founder, Seeking Alpha)
Two key questions for every manager | A Founder’s Notebook

Managers should ask themselves two simple questions: How many experiments are my team running at any moment? And How rapid is our pace of experimenting?

David Jackson (Founder, Seeking Alpha)
How to ensure that things get done using 3 W’s | A Founder’s Notebook

How to ensure that things get done using 3 W’s. 1. Who (is responsible) 2. What (needs to be done) 3. When (is it due)

Jack Dorsey (Co-Founder, CEO at Twitter and Square)
Jack Dorsey: The CEO as Chief Editor – YouTube

This happens in three ways: tending the team dynamic (adding/removing people), internal and external communications, and minding the money situation (getting money in the bank). That’s it.

David Jackson (Founder, Seeking Alpha)
Mark Pincus’ management advice – make everyone the CEO of something | A Founder’s Notebook

Mark Pincus’ management advice – make everyone the CEO of something. I met Mark for the first time this week. He said he still believes in the principle of “everyone’s a CEO of something”, but only when your company has fewer than 1,000 people.

Tomasz Tunguz (Partner at Redpoint Ventures)
Startup Best Practices 1 – Situational Management

High motivation, low skill: the most typical state for an employee to be in after he has been hired or promoted. He is excited and energetic but unfamiliar with the particulars of the job, or the company, or the culture. Somewhat counterintuitively, the best management technique in this situation is micromanagement… The best way to do this is by frequent check-ins, updates, and feedback. Applied this way, micromanagement provides the employee ver… (read more)

David Jackson (Founder, Seeking Alpha)
How to write a monthly report for your investors or manager | A Founder’s Notebook

In Seeking Alpha, every team leader and “metric owner” writes a monthly report. The Seeking Alpha manager’s monthly report is a Google doc shared with the whole company. It must not exceed one page. It contains four sections: (i) Key Metrics (ii) Candidly, How Successful Was I This Month? (iii) Top Things To Figure Out (iv) Goals For Next Month.

Seth Godin (Founder at Yoyodyne Entertainment)
Seth’s Blog: How to deal with seams

How to deal with seams. a. There is no seam. We’ve finessed the seam so thoroughly, you can’t even tell. This doctor knows everything about the situation as seen by the last doctor, no need to worry about the handoff. You can’t tell where one part of the railing ends and the other begins. Your place in the queue and your records and your status are so clear to the next agent that it won’t matter a bit to you that there was a switch. b. There is a… (read more)

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
How Andreessen Horowitz Evaluates CEOs – Ben’s Blog

[Determine] whether or not the CEO can effectively run the company. To test this, I like to ask this question: “how easy is it for any given individual contributor to get their job done?”

Jeffrey Minch (Entrepreneur – ‎Littlefield Advisors)
The Management Team – Guest Post From JLM – AVC

Do not make changes, conduct experiments. Nobody can resist an experiment. Experiments that work well have a thousand fathers and mothers. It becomes their idea.