7 schizophrenic traits every startup CEOs must adopt

CEO PSYCHOSIS The role of CEO is often described in gauzy, glowing terms espousing passion mingled with ambition that runs deep enough to change the world. All this noble ambition belies the uncomfortable reality that the inner world of a start-up CEO is often a constant state of conflicting realities that can distract from the mission at hand.

This list reflects my personal experience as the CEO of a social commerce startup. I can tell you – the dual reality can be disconcerting at first but after a while it gives you a certain edge that makes you tougher and smarter the longer you stay at it.

1) Your vision must be out there enough to generate investor interest but not so out there so as no one knows what you’re talking about. We’ve heard it from the pundits a lot – be different, don’t just iterate on another idea. Gotcha but then when you truly do go out on the limb – you may not get investor interest because you’ve too far out on that very limb they asked you climb out on.

2) Being 100% committed to do the best you can do but realizing that it might not be the best that can be done. As CEO, people want to believe you know more than you do – especially if you are chartering new territory. Unfortunately, you know that your best is probably not close to the best that can be done. You have to hope that it good enough to get by.

3) Truly believing in your vision yet living with the reality that the odds are definitely against you. I heard Brad Feld of Foundry Group remark recently that they get about 1,000 pitches a year but only invest in about a dozen ventures. So do the math. Your chances of getting funded are very small and even you do get funded – your chances of success are not in your favor. It’s a miracle anyone actually takes the plunge.

4) You are constantly recruiting even though can never afford most of the people you would love to hire. I learned never ever recruit when you urgently need to fill a job. That increases the chances for a bad hire because hiring in a moment of need won’t bring the best candidate forward – it will merely bring the most convenient one to the table. Instead, you should be recruiting ALL THE TIME. The trick is keeping the candidates you want on simmer until you are ready.

5) You must be a perennial optimist yet become exquisitely good at “productive worrying.” The grind of a startup requires a positive, upbeat attitude to get the team through the inevitable tough times. Yet, a Pollyanna attitude won’t get the job done to overcome the inevitable stumble that’s to come. For that eventuality, it best to be prepared with a Plan B and a Plan C too. In my case, I’m such a good worrier that my Plan B’s have Plan B’s (ya – I know – that’s extreme worrying).

6) You want to be fully transparent but realize there are some things you should NEVER EVER tell your VC. There is great serenity in knowing that you have been totally open and trustworthy in all your dealings with your people, your customers and your investors. Despite that – never confuse transparency with “true confessions” when dealing with investors. You need to convey confidence with a healthy dash of cautious optimism. Keep the deeper “what if’s” worries to yourself unless you have a specific ask of your VC.

7) People call you “Brilliant” and a “Visionary” but you feel like you are faking it. If you are a half articulate and just passionate enough – people will use the “B” or “V” word around you a lot. They hang on your every word waiting for the inevitable pearls of wisdom to trip off your tongue. Yet, often people confuse “Brilliance” with deep experience and a “Visionary” for someone who has a good grasp of history. Truth be told though, often you feel like you are just muddling through. That’s OK because if you admit you don’t know then others can step in to help. Otherwise the visionary, a.k.a. prophet must always have the answers. Not.

There you have it – the seven habits that are vital for any startup CEO.  I guess ya’ need just a touch of crazy to pull it off.

The real effect of The Facebook Effect.

The last few days were eventful for Facebook and its ever so precocious young founder.

First, Facebook went public to much fanfare. Here is how the Mercury News summed it all up:

“After opening at a price of $42.05, shares of Facebook’s wildly anticipated initial public offering closed a mere 23 cents above its pre-set price of $38. The failure of Facebook’s shares to rise well past $38 was seen as a disappointment by some observers. Nonetheless, it remained the most successful technology IPO in history and set a record for the number of shares sold — more than 567 million — in a company’s stock market debut.”

Then before we could absorb that news we learn, in stark contrast to the hullabaloo of the IPO, our young CEO-HERO gets married before a humble gathering of 100 people ostensibly there to celebrate the bride’s graduation.

With two such momentous events surrounding our CEO-HERO, we saw endless stories about Mark Zuckerberg as the driving force of Facebook. Even more stories were written about whether Facebook was a good investment for individuals.

But what interested me more was really understanding what was Facebook’s secret sauce that made it worth a $100 B (“B” stands for breathless also – ya’ know). Why did this stock seem to defy all rational evaluation?

No one seemed to really answer that question well.

I knew early on (by about 2010) that social marketing and Facebook were going to be powerful when I observed: “social media was not just a tactic to be tacked onto the backside of a traditional campaign”. Yet everyone, me included, was surprised at the speed of Facebook adoption. It was breathtaking.

Many ascribed that stellar growth to the brilliance of Mark. Yet, it just did not feel right to me to assign Facebook’s unprecedented growth to his vision or drive alone. I give the kid credit – but giving him so much credit just left me unsatisfied.

And because everyone ascribed Facebook’s stellar growth to some alchemy borne of CEO-HERO brilliance, people are willing to suspend critical thought to its value and its future.

For me, the Facebook mystery deepened. At a most fundamental level, why was Facebook worth so much?

The answer came to me in a blinding flash from a recent Harvard Business Review article (“Your brain on Facebook” ) that describes the neuroscience behind Facebook’s meteoric rise. In fact, “a decade’s worth of work reveals some unexpected quirks of the brain that all link to one big idea” – we are social creatures with a “social brain” and that drives a lot of behavior in a lot of unexpected ways.

“Here’s how the social brain works. There is a “default” brain network that is always “on” and it is involved in thinking about yourself and other people.  When not doing anything else, the brain’s favorite pastime is to think about people. We actually have to suppress the activity in this region when we want to do any active processing, such as doing math.” But in the absence of any other cognitive activity – our social brain kicks in!

This explains why Facebook can capture so much of our attention because, neurologically speaking, we are wired to be addicted to being social and “connecting” and “liking”. And like any other addiction, the reward centers in our brain seek ever more satisfaction just to stay “normal.” If you spend a lot of time on Facebook, you are basically “high” all the time. That makes it really hard to focus, think deeply, or perhaps learn something new.

Now that gives a new spin to the term The Facebook Effect because we are, in effect, wired to become Facebook junkies.

That explains, for example, the irrational exuberance the market places in Facebook’s future. It also puts a new spin on Mark Zuckerberg’s success. No doubt he is clever but maybe his real luck was that he became the first efficient digital distributor of social addiction.

Gives one pause – doesn’t it? As well it should and you would not be alone. More and more “resisters”, people to who shun Facebook, are coming forward as an emerging trend. More and more, people are getting ready to kick the Facebook habit:

Over 82.2% of people would not pay for Facebook according to a HuffingtonPost poll – April 25, 2012

-  As Facebook grows, millions say, ‘no, thanks’ – USAToday May 16, 2012

-    “Facebook Loses $10mm From General Motors – HuffingtonPost May 17, 2012

-  Silicon Valley Can Do Better Than Facebook – TechCrunch May 20, 2012

What’s next for Facebook as it starts business Monday morning as a public company? I have no idea but while many of us may be hooked on Facebook now – it only takes one disruptor to knock the addiction from our system.

The only question is who or what will that be.

Judy Shapiro

Why the “cha ching” of the $1B Instagram sale might actually bankrupt Boomer parents.

By now, most of you have heard of Facebook’s $1Billion sale of Instagram, an app developed by a bunch of young 20 somethings that lets users post photos. Today, Instagram has about 50 million users which works out to about $20/ person. “Cha ching” for anyone involved …

Punditry aside about whether it is a shrewd deal for Facebook – instead of “cha ching” – all I hear is hissing as the air escapes from Boomers’ retirement funds.

It is alarming and here’s what I mean.

You see, I have worked with tech ventures for over a dozen years, starting at Bell Labs New Ventures and continuing to this very day. In that time, I have worked with many startups, often gratis, because it’s so rewarding when my expertise can really make a difference in the early days of a venture. CEOs have the product vision but they rarely have marketing know-how to get the product to market.  That’s where I step in. I help startups assess their market potential so they can monetize.

And in the dozen years or so I have been doing this, I see an alarming new twist to the never ending parade of venture dreams that haunts me. I liken it to the disturbing “Gold Rush” era where many more prospecting failures bankrupted folks versus the rare, outlier successes.

In today’s day and age – here is how it goes down.

Johnny or Jane are in college and – wham – they hatch an idea for a company often inspired by the innovation incubators on every campus. The idea grabs their passionate attention because at least they can try and make it happen versus trying to get a job which is tough and depressing.

Mr. and Mrs. SupportiveParents are happy their kids have found something that inspires them, so they cover more of their kids’ living expenses so the kids can commit themselves to their “passion.”

After about three or four months, their idea has some substance and the kids realize they need some money to create a “demo”. Of course, there is no cogent business plan (if a business plan even exists) but Mr. and Mrs. SupportiveParents kick in the $10,000 or $20,000 to create said demo –  on top of the extra expenses they are already incurring to keep their kids in school. (This is when you can start to hear the air escaping from Mr. and Mrs. SupportiveParents 401K accounts!)

A couple of months later said demo is “almost done” but not quite because the kids did not really do a business plan and as they worked, the idea kept changing (translation = more cost). “But I only need another $20,000 to finish it off. Then it will take off because it is so cool. Please …” Again, as we would expect, Mr. and Mrs. SupportiveParents step in and shell out what their kids need.

Slowly but surely, over time, as their kids refine their idea; there is steady attrition of the parents’ savings plans because startups need constant funds. This tableau is playing out again and again and I know it because I have met too many Mr. and Mrs. SupportiveParents in the last few months who have depleted their savings by $150,000 or more to help their kids live their passion.

It is frightening to see since most new ventures are “high risk” in the best of circumstances, making them wholly unsuitable investments for most any Boomer given their proximity to retirement.  And if that’s not bad enough, it’s even worse once you understand that kids’ ventures, proportionately, have a higher mortality rate because they are borne of 90% enthusiasm and 10% practicality despite their parents’ 100% support 100% of the time.

This is a dangerous combination – especially in frothy times like ours where opportunities for kids are limited yet perversely, the potential for untold wealth is tantalizingly possible.

And this brings me back my point. The Instagram sale was an aberration – a fluke – an outlier event – possible because of a unique set of circumstances. Yet it infused a new level of Gold Rush fervor into the passionate hearts of ambitious young entrepreneurs despite the reality that the chances of striking it rich today are about equal to striking it rich in the Gold Rush of 1848.  And just as sadly, their loving parents are funding these ventures despite the improbable odds.

So while many people hear the “cha ching” of $1B, all I hear is the air escaping from parent’s retirement funds. It is not a happy sound. Not at all.

Judy Shapiro

P.S. – I am posting this as my personal Mother’s Day present to Mrs. SupportiveParent. Be careful – please!

The surprised entrepreneur – The last moment I can allocate GRATITUDE Grants

I am surprised how fast shares go in a startup company that people are excited about. Our plan is mostly done and the investors have begun to make overtures. My total ownership has been happily whittled away to include the wonderful talent this company will need.

I gratefully allocated shares to our president who is deeply experienced as both an entrepreneur and a VC. I was deeply honored when our CTO, who gets hundreds of business ideas in a year but only considers “one or two,” signed up.

Ever so carefully, I identified the key talent we would need and one by one each person on this amazing team is coming onboard with their allocation. Yet until we officially close our first round (scheduled for February), I’ve still got ability to allocate shares pretty much as I want.

But not for long.  

Now, much to my surprise, I realized how very quickly my ability to make unequivocal awards of shares will be gone. Now is the last moment I have to express my gratitude to people who have believed in my ability to create a new way forward in marketing.

So with the urgency imposed on me by our first formal funding round, I have barely a few weeks to share these gratitude grants.

I get to tell my dear gentle creative storyteller, a giant in the business of video, how valuable his lesson was in the meaning of video to create a powerful experience.

I finally get to ‘give-back’ to my “hard core” (hehe) entrepreneur, investor and civil liberties activist friend. She taught me perhaps one of the most important lessons in this space – the focus needs to be about creating shared experiences using content rather than solely focusing on the content. It is a powerful mind-bending insight that has deeply shaped how engageSimply develops its concept.

I can go back and reconnect with some of my ex-colleagues and CEOs who, over the years, inspired me, instructed me when I just didn’t get it and generally invested in me by teaching me ever so patiently. I can’t imagine how I would be doing this without their support and faith.

In the end, each gratitude grant is my way to repay the gift of confidence that each person so unselfishly gave me. It helped me turn a blind eye to the limitations imposed by stereotypes about what a tech CEO looks like (age or gender) or should do.

Over the next few weeks, I will have the distinct privilege and (one time only) opportunity to award these gratitude grants – without justification or encumbrance. To those of you on the list – stay tuned.

Lots of people track “firsts” (e.g. first investor, first alpha) – I want to note the “lasts.” I want to acknowledge these last few precious moments when I have full control of my company and I can still allocate equity as I want. This privilege is fleeting likely not to be ever repeated.

I best be sure I don’t leave anyone out. What a happy chore.

Judy Shapiro

The Surprised Entrepreneur – Why Me?

These posts about my journey with this new venture are often characterized as a surprise. In fact, it’s a surprise on so many levels that the unlikeliness of this enterprise is, in itself, a pretty big surprise.

So in this sea of surprises – the biggest surprise rests in the unlikeliness of me as the one to coalesce this vision; only useful to ponder so that we know what makes us different from many other marketing tech companies out there today.

Clearly I am an outlier given my age, gender, training and temperament causing even the casual observer to wonder: “Why me?”

On the surface, one could point to my diversity of experience spanning B2B and B2C marketing. I’ve been fortunate to have worked in a diversity of industries spanning advertising (NWAyer), technology (Bell Labs, CloudLinux), software (CA, Comodo) and telecommunications (AT&T, Lucent, and Paltalk). The combination means I have a quirky understanding of how to look at a marketing situation from the brand point of view as well as the end-user perspective at the same time.

O.K. – That begins to answer the question but doesn’t wholly get at it since many of my colleagues are tech savvy too. While they express curiosity about the new marketing technology, they aren’t going off and creating new businesses.  Instead, most of my friends leading marketing agencies or marketing departments (like I was) are banging their heads against the marketing brick wall trying to figure out how to incorporate the “new” technologies into the “old” system profitably. In the chaos of “creative destruction” (a term coined by economist Joseph Schumpeter), my peers can’t see the marketing forest for the financial trees.

So again I ask; Why me?

In digging deeper, I then realize that my experience with communications networks gave me a unique understanding about social networks. Both types of networks serve a similar purpose – the efficient transport of a call or a marketing message from the network edge (the initiation point) through the switching stations along its way to its ultimate destination.

Side by Side Comparison: Telecom vs Social Media Network

It also became clear to me that as social networks evolved into a powerful marketing network – it urgently needed system architects. But I saw no hint of any serious understanding of the issue or how to address it – not at the agencies or the social network companies or even the armies of consultants who offer insights but few tactical road maps.

When at first I noted this architecture gap back in 2010, I wondered out loud in Ad Age about the impracticality of integrating new technologies into existing marketing systems in posts like “Five Trends That Marked TechCrunch Disrupt Conference 2010.”  Then, my wonderment continued unabated at the lack of system attention when I wrote: “Has Facebook jumped the Shark”. Actually, I was writing mostly in the hopes of uncovering the technology companies that were focused on solving this system gap. I knew someone had to it…

But all I heard was deafening silence. I seemed rather alone in recognizing the utter futility of trying to retro-fit the older marketing system with the newer technologies. The sheer tonnage of all these new marketing “platforms;” so defined because they incorporated some combination of the mighty  local, social, mobile triad; were built by technologists (usually under 30) and not marketers. This meant they were long on cool but pathetically short on practicality. Yet as slim as many of these businesses seemed, they were getting valuations disproportionate to their real world usefulness (think Groupon), further highlighting the underlying weakening of the business of marketing.  It was an ominous echo from a decade ago.

This explains “Why me.” It takes depth of experience to see beyond the buzz to the potent marketing model evolving. I wanted a role in that evolution largely because it seemed few of us with any real world marketing experience were doing the heavy lifting of operationalizing the brilliance of all this new technology.

The journey to understand “Why me” is useful in that it defines the business we are in – creating the system upon which the rich marketing innovation engine can flourish.  It’s a surprise that it is me – but perhaps, this is the sweetest surprise of all.

Judy Shapiro

The surprised entrepreneur – I’m having the time of my life.

I am not sure what I expected to be doing at this point in my career. I have been blessed to have been at the center of the changing, blossoming technology landscape of the last 20+ years.  My earliest days were at an advertising agency called NW Ayer which gave me a broad perspective on Corporate America’s practices, problems and possibilities for triumph. I then gracefully made my way into the tech stars of Corporate America itself with stints at AT&T, Bell Labs, Lucent Technologies and Computer Associates. I also had the great good fortune of working at small innovative technology companies led by visionary innovative leaders. Two prime examples include Melih Abdulhayoglu, CEO of Comodo and Jason Katz, CEO of Paltalk.

This unusual combination of corporate marketing experience coupled with the feet on the streets training born of working at tech startups, gave me a balanced perspective of how the marketing business is evolving in this technology driven world.

So here we are.

The marketing business is going through a fundamental shift that throws into question almost every tactical practice built over the last 20 years. And, amazingly, it seems that just as marketing becomes this new discipline that weaves creativity into an interactive user experience that is tech heavy – it’s a perfect fit for my peculiar type of networking meets technology marketer experience.  

This seems nothing short of extraordinary. Which is why I am all the more stunned at the work I am doing today. I had not planned on any such seismic move in marketing, so I certainly did not plan on launching a marketing tech venture.

But here I am.

My journey has been one of surprising excitement at the possibilities in marketing excellence that was simply not possible before. The vision of this venture, therefore, is to take advantage of these new trends to deliver a sustainable and productive “marketing machine” (a phrase I attribute to Melih) that can turn the tables on how marketing gets done.

In our vision, we don’t approach monetization like Google or Facebook’s who are about pushing more accurate marketing messages to consumers. We are looking to deliver a marketing platform that lets consumers decide what content they see, what ads they see, how their social networks are managed, how they conduct commerce, even how they communicate within the social networks. The organizing principle for this platform is not ad-driven monetization but oriented around Judy Consumer. Our vision is to create the kind of system that we want to live with for the next 10 years . In effect, we want to give Judy Consumer the tech power to create her own personal “Trust Web.”

To the few friends we have shared our vision with – all have come to a similar conclusion – it is an ambitious (maybe too ambitious) vision. They are correct. But as I entered marketing in the 1980s most of marketing at first was human powered with marketing systems emerging later on.  

And here we are – again.

This next generation collection of marketing technologies is rich in creativity but is not organized for sustainable marketing programs for brands. This is work that I, among others, are focused on – creating v1.0 systems to operationalize the business of social marketing.  

We are all at just at the beginning of this journey and it’s a journey I didn’t expect to be taking at this point.

But here I am – and much to my surprise – I am having the time of my life.

Judy Shapiro

The surprised entrepreneur (entry #5):

The great talent hunt yields an unexpected gift that keeps giving. 

Hiring is tough on all companies.

Hiring is brutal for new companies.

One bad hire could spell irrevocable disaster.  You have to pick people who can get the job done today, have a passion for the work we are doing, be a mensche, be creative and be just quirky enough to add to the color of our community. But I also know enough though to know, practically speaking, there’s a thin line between a “quirky” and a high maintenance team member.

No wonder it scares me to death.  No wonder I put if off. I’d rather have oral surgery. Honest.

But in the past few weeks, I could avoid the truth no longer. I needed to balance out our team and I needed to find the perfect tech architect. In my view, every tech venture needs three architects – the vision architect,  the business architect and the tech/ product architect. Sometimes this is all one person, but not in our case.

So with a deep breath  - I began what I thought would be a painful process.  I was wrong.  In fact, I’ve learned much to my surprise, that the hiring process was the best gift I could give my business because I got to learn about the very essence of my venture itself.

I began the process hesitantly knowing that the type of talent I wanted can be highly selective about where they go. Quickly, I was lucky enough to get the chance to chat with the head product guy at a large, very cool social media company. He was thinking of leaving and he graciously agreed to hear my story. Then a few days later through another contact, I was put in touch with an “ex-Microsoft guy who was looking for his next project.”   I talked my heart out to convince him to see the vision.

Both of them gave generously of their time and advice. Both reminded me how much I love to talk to developers. I love how their individual creativity is reflected in their choice of languages. I love the quirky, binary-colored way they see the world.

But in talking to them during this process, I also realized I could not really express my vision with the technological crispness to satisfy these folks. I was horrified and I knew from experience, any hint of uncertainty would send the best talented developers running from the virtual room.

It was a surprisingly painful lesson I needed to learn. I thought I had created the elevator pitch suitable to satisfy any audience. I was wrong. I thought long about how they reacted and it was then I had a breakthrough. All of a sudden I could see where I had gone wrong in how I described the platform, and thus the venture. Through my openly sharing with talented people during this process, I vastly improved our architectural vision.

I confess. I would never achieved this revelation on my own or even with the team I have now.  My aversion to hiring could have deprived the company of this precious gift of clarity of technological vision.

I’ll end with a note of gratitude. To any candidate we are talking to now – my deepest thanks. To all future candidates – I can’t wait to meet :).

Judy Shapiro

P.S. – Wanna help architect the next big gig – (hey – optimism is part of job req’s :). We are working on creating The Trust Web. Interested? Drop me a line.

 

The Surprised Entrepreneur-Diary of new venture (Entry #4): A tale of two VC meetings.

For the last 3 months I have been very focused on sales of our Interaction Engine system and we are doing well on that score. As a result, though, I have not really shaped the business plan and the structure of our company for the inevitable VC round to come. Getting funding has not been an urgent requirement and it seemed far better to generate real revenue and then go for funding.

So as we are chugging along, our work has gotten the attention of two VCs who reached out for a meeting. This was my first introduction to the world of VCs and I confess, the meetings were startling and sobering; leaving me strangely ambivalent about the journey ahead on this front.

VC meeting number 1.

It was a rainy, NY winter day and we decided to meet at a coffee shop. I knew that this fund was more an incubator type which offered me the potential of being part of a startup community. It seemed like a good idea that I perhaps become part of the NY “Tech/ CEO club” since now, I am an outlier. I don’t hang out in Meetup sessions and I am not trekking across the country chasing the cool tech conferences (OK – I confess I am going to SXSW but only because they asked me to speak).

I enter the coffee shop with only the vaguest sense of what the VC looked like (his Twitter pix was decidedly not very useful). It took me a solid 8 minutes to spot him. As I approach I see this 30ish guy with a quirky winter cone hat that was just 2 degrees “off” – IMO wandering into “silly land.” It was hard not to laugh out loud at the effect – but I held my composure.

I sit down and we start chatting.  I was curious to understand his investing philosophy. His focus decidedly was on individual technologies – why Foursquare will be huge or how this new app model will revolutionize some trend or other. When I wondered with him about the lack of a clear business model which limits their practical use for marketers, he dismissed that concern with a wave of the hand. “Well, that’s won’t be a problem for long – once the old guard is gone.”

Wow. Clearly that meant me. I took his comment to mean that only the “newer” generation have the depth to understand new marketing technologies. I was dumbfounded and I was shaken. The gap between us was, technologically speaking, generational – perhaps never to be bridged. But mostly I was stunned at how immature his thinking was about how the business of marketing really works. I was shaken knowing his company was helping drive the evolution of marketing without a clue about what marketers really need.

The rest of the conversation was a haze TBH. I left traumatized and angry at how dismissive he was of the impracticality of his vision of marketing technology evolution.

VC meeting number 2

This CEO leads a well-respected large VC shop that does $2- 5MM deals. I had been introduced to this VC through a mutual colleague and we met at his office one snowy day.  He sat down in comfortable business casual attire that was in keeping with his experienced CEO role.

We started by talking about his company which was relocating to the East Coast from the West Coast. Interesting move and I asked him why. “Increasingly the smart money is coming to NY as this where many of the major new media and marketing operating business trends are evolving,” he said.

This was my dream VC – he understood the space and the problem my company was trying to solve – how to practically create the “many to many” marketing model. We compared notes on how the technology in this space was similar to CRM in the 1990s – full of possibility but lacking in coordinated systems to activate the technology. I suggested that we are a bit like what Siebel who, at the time, integrated all the telemarketing technologies into the system we now know as CRM. I feel that is what we are doing for the emerging “many to many” marketing model. We met for a solid 90 minutes at which point he asked me “What next?” Shockingly, I had no “ask.” I had been so traumatized by the first VC, that I had not really expected a question like that. I stumbled around and just admitted – “I don’t know.”

But then I turned it around and asked him: “How would you categorize my company? We are part system integrator, part content and media company. We are a “creative shop” in that we create customer interactions with technology. Are we a tech company, a services company?”

I could see he was sensitive to the dilemma of my question. Finally, he said, “I would put you in the digital media space.” I was shocked until he hastened to add: “You need to be defined somehow so people know to work with you and help you.” But in his gentle smile I could see his answer left him unsatisfied as well.

We parted agreeing to keeping up the dialogue. As I walked out of his office, I felt cautiously optimistic that the work we are doing is needed in the market.

One thing I learned from both meetings – the journey of starting a company will continue to be a journey of surprise. I never expected to have so dramatically divergent experiences as I tentatively start down the path of funding my company – even if I don’t know exactly what type of company I am creating.

All I know is that the “smart investment money is going towards the business operating companies” and that’s me. Cool – right?

Judy Shapiro

Congratulations CES for becoming the hottest, consumer advertising buy on the planet

(Author’s Note: Originally written Jan 5, 2010 – but even more true today.)

CES has descended upon the psyche of the tech world so that it dominates most reports and tweets and attention.

We all wait with bated breath for the declared best new product, most innovative game, most outrageous consumer electronic gadget. We are, in effect, like kids with our noses up against the window pane of the biggest toy store in the world.

I should say that the hyper cool nature of CES is a fairly recent phenomenon. Back when I worked at AT&T, CES was an annual ritual that, frankly, rather inconveniently put a crimp on holiday festivities since many of us had to go the Las Vegas a week before to setup. There went New Year’s plans *sigh*. Sure it was fun to see what ingenious gadget was coming into the market, but make no mistake about it; CES was a serious B2B trade show where manufacturers worked hard to woo retailers into carrying their stuff. While there was some consumer coverage, mostly it was confined to the B2B press.

Then, somewhere in the last 4 years, I think driven by the gaming industry, Google, Apple and social media, it took on the glamour of the Oscars for tech set. If a product was even mentioned in a “from CES” report, that was cause for celebration (“I am so honored even to be nominated” kind of thing). CES went from being a B2B event to the event that plays itself out directly to consumers. That shift, in effect, caused CES to become the biggest consumer trade event of all time – even if every consumer is attending by proxy via social media.

But there’s more to it than that because at the current level of consumer exposure to the show, CES has transcended the trade show segment and was elevated to become a premier consumer media buy, kinda like SuperBowl. Think about with me. A media buy in SuperBowl was a strategy companies used to catapult themselves – think GoDaddy. This media buy cost a few million bucks, but if played right – you were made. I think CES has taken on that same level of media potential if you account for all the primary, secondary and tertiary coverage that live streaming and social media provide. And instead of a few thirty second spots, you get three days to strut your stuff. Make no mistake about – doing CES right is a multi-million affair. But the pay-off could be huge. In fact, it would not shock me if I learned that CES exceeded SuperBowl in the number of impressions delivered.

That’s awe inspiring. Never before has a trade show had that kind of reach and coverage. It seems cosmically fitting that new technology, e.g. social media, would elevate the very essence of CES itself.

Welcome to the year of living intelligently with technology.

Judy Shapiro

 


The Surprised entrepreneur – Diary of a new tech venture – Entry #2

The roller coaster ride feels thrilling and yet …

Last week I had some ups and downs. I was happily surprised to be asked to speak at ad:Tech NY this November and I got my press credentials approved for the Clinton Global Initiative. The Social Media Technology Resource Guide is coming along and the team is working hard on creating the Sports Community of Interest for a few properties. On the sales front, we closed a small client that is doing interesting things with their mobile site. On the product front, our CTO – Louis Libin ideated for a way to provide an “overlay” to existing sites using a combination of social media technologies that we put together. It’s a great way to capture our “systems” approach to social media within a marketing environment. This is all good :)

On the down side – I have to cancel a Sept 28 Meetup event we scheduled to launch the Social Media Technology Resource Guide site. We are delayed by about two – three weeks :(. I developed this free guide as a directory of social media technologies since I could not find one anywhere (and my apologies if one exists – I could not find it). I am more bummed about this than I should be. After all, the delay was because we are pitching some really excellent clients. That is always good. But I am disappointed that I am delayed nonetheless.

At a more philosophical level, though, this set-back triggered one of my bigger challenges — managing the extreme highs and lows. Good things taste almost too wonderful – disproportionate to their “real” good news-ness. And inevitable bumps that occur feel more extreme than they should. I know not all CEOs suffer from this – they are more even-keeled. Some compartmentalize to keep things in check. I see why that might work – but it’s not me. Still groping around on that one.

But on the positive side,  more than anything, this time of year is special to me. Yom Kippur is just over and with it comes a potential for a new start. It is a time for refocused purpose, re-organized thinking and re-energized gratitude for all the people that are helping/ rooting for me. It is incumbent on me to hang onto to the intense feeling of positive potential that characterizes this time of year for as long as possible. I hope to rise to the occasion but I credit myself with a fair amount of talent in that department.

Now – onto the “what keeps me up” list:

  1. Creating a simple way to communicate what we do -this is a carry over from last week and it remains a top priority. Some good progress on one hand but nothing substantive yet.
  2. We have quite a few follow up conversations coming up soon. This is good news but they want to see “under the hood” which leads me back to point #1.
  3. I see an undercurrent of “downsizing” already going on in the social media space. Bigger companies are buying up smaller companies if they are in any way related to social media, especially on the technology side. On the one hand – these roll ups don’t worry me at the moment because they lack a cogent system for integrating the technologies (programmatically if not literally), but I worry that there will be too much consolidation too fast leaving just really big guys and then lots of tiny fish. Hmm.

Now, how am I doing against the milestone list I posted last week:

  • 3 page executive summary of engageSimply with financial outlook – some progress but not as much as I would like.
  • 1 signed client using the entire new Interaction Engine platform – new “sports” channel may be first one to launch or Trust Web – but tantalizingly just out of reach (a note of frustration intended here).
  • Initiate discussions with at least 2 possible funding partners – no progress
  • Get website up to date – no progress
  • Expand sales funnel to having 20 active leads in pipe – added 2 more
  • to write in this diary a minimum of once a week or 8 entries (hey – I need some wiggle room J) – so far so good.

OK – all. I am off for now. As always your comments are welcome.

Judy Shapiro

This is post #2 in a series on the life of a new tech venture (and its CEO). Wish us luck. .

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