Tuesday, May 22, 2012

Los Angeles Startup Events

I recently posted about the Increase in Early-Stage Startup Activity in Los Angeles.  In that post, I mentioned how one of the signals is the big increase in number of startup events and the number of attendees at those events.  I realized that it has been a little while since I posted about the Los Angeles Startup Community and so needed to update my list of startup events that will be out of date almost before I finish publishing it.

SoCal Startup Event Calendars

The following three sources are great at finding a lot of the startup events going on in Los Angeles and SoCal:
Even with all of those, they still often don't have all of the different meetings, especially smaller events listed.  So, you may also want to go look at:

Los Angeles Startup Events

Here are some of the events and meetups that I've spoken at, attended or at least interest me.  Of course, given the size of this list and having kids, I really can't attend a lot of these.  So, if you happen to read this and want to meet me, just reach out directly.

Monday, May 21, 2012

Startup CTO Speaking

Over the past several years, I've done lots of presentations around a wide variety of topics.  I was recently asked by an organization, "Tony, what topics can you cover?"  I realized that I've never captured topics that I've covered (I'm always willing to look at other topics), nor have I put up my speaker bio.  So, here goes:

Dr. Tony Karrer

Karrer-Tony-large-portraitOver the past 15 years, Tony has been a part-time CTO for more than 30 startups.  Most notably, he was the original CTO for eHarmony for its first four years making him partly responsible for more than 4% of the marriages every year.  He's also led  significant technology projects for a very impressive list of companies including Citibank, Lexus, Microsoft, Nissan, Universal, IBM, HP, Sun, and the list goes on. 

Tony has a Ph.D. in Computer Science and taught computer science for 11 years.  He is a frequent speaker at trade and industry events.

Select Startup CTO Speaking Topics

Ten Lessons from Working on 30+ Startups Over the Past 15 Years

Tony looks back over his experience working with startups and extracts elements that have led to success or failure.  Many of the factors are not obvious and include building mystery to drive margin, why boring B2B companies often win but are challenging in other ways, how bootstrapping wins, integrating metrics from the start and many other similar lessons.

Startup Feedback Panelist

Tony has participated on many panels where he can provide real-time feedback to startup founders.   Startups provide introductions and Tony and fellow panelists provide feedback in real-time.  These are exciting and fun experiences for everyone involved.

Evolving Role of Social Networks for Startups

In this talk, Tony traces the evolution of how startups have leveraged social networks and social media as part of their solutions over the past ten years.  Tony provides specific models and suggestions for how startups can leverage social networks for viral growth yet maintain their independence so as not to limit themselves long-term.

Matching for Startups

Having been involved in eHarmony from the start, Tony has naturally consulted with startups who are making matching a core aspect of their product including matching for social networks, careers, clothes, jobs, projects, college, tutoring services, doctors, service companies, investments, and many more.  As the web has led to exposure of every increasing numbers, people need ways to filter the possible options.   In this talk, Tony looks at where and how matching algorithms can be applied to give significant value to startups.

How Startups are Winning by Wiring into 3rd Party Services and Data

Probably the biggest change over the past 15 years in working with startups is the availability of 3rd party services that can be leveraged as part of a solution.  Its common for startups to think about services like hosting/computing, storage, analytics, maps, email delivery and tracking, and eCommerce.  However, there's really been an explosion of services over the past few years that gives even greater leverage and opportunity.  Possibly even more interesting is the rapidly growing data sources. In this talk, Tony first looks at the landscape of 3rd party services and data.  Then, he explores how several startups have leveraged those services and data in interesting ways.  He ends by looking at how this might help startups in the room.

Why Software Development Goes Bad So Often and What You Can Do About It

Most likely you've heard the staggering statistics on failure of software projects with different reports showing 28% success rates.  Tony is often called in after projects have reached a critical situation to try to help fix the problems such as blown budgets/schedules, poor quality code, never quite getting the last 10% done and other symptoms.  Unfortunately, for startups, the situation is often dire.  Development dollars have been spent and the system is not going to be able to be used for the business.

As a Startup, you have one shot.  What are you going to do to reduce your chance of problems and maximize your chances of real success?  What is the root cause of all of these problems?  How do you know if you may have issues?  What parts Agile addresses and the big problems with Agile for early-stage startups?

This presentation may make the difference between success and failure in your startup.

Metrics-Driven Startups

Virtually every startup has a model that has critical aspects to it that will make or break the business.  What is our lifetime customer value and how can we drive that up?  What does it cost to acquire a new customer?  What is our viral spread coefficient? 

The key for most early-stage startups is to understand the core metrics for your business, ensure you have visibility into those metrics, and then optimize the business around those metrics.  In this talk, Tony talks about the importance of these metrics for you and your possible investors, how startups typically gather these metrics without spending a fortune on reporting, and provides examples from eHarmony and other startups that may surprise you.

Stupid Things Founder Say - How to Work More Effectively with Techies

Software developers and other technical people are part of a very interesting club that has its own language, very specific rules, secret handshakes and, yes, they definitely talk behind your back and laugh at things that you say.  Unfortunately, once you've lost the respect of your technical team, it makes it hard to get work done and frankly becomes frustrating.  If you are not part of the club and don't speak the language, how can you work effectively with them?

Tony has been bridging that gap for 15 years with companies of all shapes and sizes.  In this talk, he helps you understand what you might be doing wrong today and how to change things to work with techies more effectively by understanding their motivation and getting yourself smart enough on critical items.

Monday, May 14, 2012

Startup Surge in Los Angeles

Ben Kuo just posted on SoCalTech:

Are the good times for startups back?

That seemed to be the mood running through the cloud at the more-than-sellout crowd at the Fairmont Miramar in Santa Monica Thursday at the first LA Demo Day. At the event, the enthusiasm for startups was palpable. The crowd of more than 1,500 spilled out into hallways, and would-be investors were turned away from the doors, as a crush of entrepreneurs, investors, service providers, wanna-be entrepreneurs, and others looked to be part of the surge of startups emerging in Los Angeles.

Certainly it feels like there's been a recent surge in Startup activity here in Los Angeles and as well nationally.  My two big data points are:

  1. What's happening in the Los Angeles Startup Events such as popular events like LA Demo Day.
  2. Increase in the number of inquiries I've been getting for: Free Startup CTO Consulting Sessions and/or other similar kinds of inquiries.

It has gone from 2 or 3 a week about a year ago to more than 5 per week. 

A lot of this action is early-stage startups and it's not clear to me how all of this will shake out given how hard it is for VCs to raise capital right now.

Are others seeing this as well?

Wednesday, April 18, 2012

CTO Salary and Equity Trends 2009-2011

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data). Even better, my good friend and data visualization guru Steve Wexler of Data Revelations was able to create visualizations of the data.

Here's a live version of the data and below it is a bit of analysis of the trends.


I'm showing snapshots below. I would be very curious to get reactions to what people find in the live data.

CTO Salary and Equity Comparison

My guess is that most people who come here are going to be Founders, CEOs and CTOs who want to compare salary and equity of the CTO Position in their organization vs. their peers. Or they are looking at Hiring a CTO and want to see what salary and equity ranges look like.

Well the easiest visualization to use is to go to the Benchmarks Tab.

image

You then make selections around aspects like Founder Status, Job Title, Headcount, Revenue, Development Stage, Capital Raised, Funding Round, etc. If you get too specific, then the counts will get very small and may not be the best comparison. You can also enter salary and equity data to see where you stand.

As was pointed out in last year's post, generally there's as companies get older, have more funding, revenue, headcount, maturity:

  • Salaries go up
  • Equity percentage goes down

Trend #1 - Sizable Salary Increases

I've been talking for a while about the increasing demand for CTOs the past few years and a similar challenge in finding developers in Los Angeles. What I had not realized is that this had translated into escalating salaries for CTOs and VP Engineering. I was expecting that over the past few years, the pressure on VCs maybe had translated into lower salaries. It has not.



CTO-Salary-Trends-Overall-2011

I tried slicing this a few different ways, but in virtually every case the trend is clear. CTO salaries are escalating quickly.

Trend #2 - Early Stage Companies Lower Salary and Higher Equity (for Founder CTOs)

The one exception to Trend #1 seems to be for Startup CTOs at earlier stage companies. If you look at the year-over-year trends from 2009-2011 for companies that have raised less than $10M:



image

and another chart that is only startups with Seed or Series A according to development stage:

image




To me this is a very interesting set of trends that I would not have guessed without seeing the data.

Anyone else a little surprised? Or seeing something else that's interesting?

Monday, April 2, 2012

Hiring Developers Before Product/Market Fit?

Using my StartupRoar as a radar, I came across a great post by Gabriel Weinberg Do you really need a full-time hire for that?

Hiring seems to be the preferred use of seed funds (by investors and founders), whereas I'd prefer a focus on customer acquisition.

....

The problem is you don't yet have product/market fit, and until you do, you don't really know what to build. And that should be the focus of the founders -- to find the special fit that will make your company take off. When product vision is truly clear, then it makes sense to execute it, and hiring follows.

In the mean time, if you need some extra help, get some contractors to test out specific things. You may end up hiring these people eventually and you'll know more about them when you do.

I'm not sure I'd carry the argument quite as far as Gabriel does, but I completely agree with his central premise.  When I talk with early-stage companies, often the discussion starts with them asking me about Hiring a CTO for Your Startup, or  Finding a Technical Cofounder for Your Startup or How to Find Programmers for Your Startup.  In other words, they come in asking for help with sourcing and hiring.  These companies are very early-stage and definitely have not shown product/market fit.  Far from it.

In many cases, during my Free Startup CTO Consulting Session with them, we discuss where they are in in the process.  They are very early.  They need to determine product/market fit.  They need to conserve cash.

image

The startup founder is definitely not ready to hire a CTO.  And in most cases they are not ready to hire developers either.

Instead, what they should be considering is how to bridge the  Startup Founder Developer Gap and exactly what they need in terms of Startup CTO or Developer.

They most often really just need either a Part-Time CTO or Technology Advisor, and then some combination of hiring and/or outsourcing (on-shore or off-shore).  The Part-Time CTO or Technology Advisor will be able to help make that determination.

Of course, there's still hard work to be done to as the bad news is that its hard finding good Web Development in Los Angeles and certainly its tough  Finding Developers Here in Los Angeles

Great post Gabriel!

Monday, March 12, 2012

Finding a Technical Cofounder for Your Startup

I've recently received several emails from people looking for a technical cofounder for their startup.  I promised I would write this post with some thoughts and ideas on the topic.  Here's an example of that kind of email.

"I'm looking for a partner / cofounder who can not only head the technical aspects and build a working model of the site, but someone with the connections to put a great development team together when we need it. "

Typically, this requires quite a bit more information for me to be able to respond and provide real help.  I've talked about that in lots of other posts, so you can visit some of these to help determine what you specifically need:

Key ingredients in the equation are:

Okay, so now you have it narrowed down and have determined that you need:

  1. Part-Time CTO or Technology Advisor to help guide you and close a bit of the Startup Founder Developer Gap, and
  2. Equity-Only Cofounder Developer - the first real developer that will work for equity and produce the bulk of the application.

Of course, you will want to figure out a bit more about the specifics of what this developer needs to know vs. can learn.  Your technical advisor can likely help.

Before you go out looking for your Cofounder, you should also be thinking about what will motivate them as I talk about in How to Hunt Programmers for Your Startup - A Field Guide.

The bad news is that Finding Developers is Tough Here in Los Angeles and even people willing to pay have a hard time finding Web Development in Los Angeles.   Of course, you are looking for something a little different - a technical Cofounder.  The bad news is that they can get a good paying job anytime.  The good news is that likely is not what they want.

Where to Search for the Technical Cofounder

So where might you run into the right person?  Here are some ideas:

In your company or other companies.  Find the developers in your current company and other companies that you can get inside.  Get to know the developers.  Find out who is good.  Ask your friends to do the same.  Take lots of them out for free coffee, food, beer.  Ask them about your concept.

Tech Events / Meetups - In Los Angeles, There are lots of Networking Events in Los Angeles and Southern California that are techie oriented.   You should definitely hit up the Startup Weekend events as well.  And look at StartupDigest.com for lots of startup oriented events.

Make sure you meet the people who run these events.  They often can help a lot in navigating to expertise and to possible resources.

Student Groups - Go to the local university and find out what student groups there are for programmers.  Ask around for ideas on where they hang out.

LinkedIn - This remains one of my primary tools.  It's a bit hard to use to find a cofounder, but I would certainly go ask everyone I know to introduce me to programmers they know.  And then use them to get to even more.  

Twitter - You can run searches for various types of techie terms being used in a given geography.  Follow them and reply to introduce yourself.

Befriend Recruiters - Most recruiters will not be happy I say this as they generally don't like talking to people in this situation, but they still often will have lots of ideas for where technical people in your geography hang out. 

Sites - There are a bunch of sites out there aimed at this or similar issues.  Most of them suffer from lack of activity, but it's worth a shot.  Some sites to check out:

You can try finding folks via

Oh, and often there are forums for particular technologies where you can look.

Here are a few perspectives on the topic of finding technical cofounders:

In Building a sweat equity team, Joel on Software tells us:

You simply need to network. Go to user groups. Go to tech (or other relevant industry) events. Refine your elevator pitch. Eventually you'll catch the ear, the vision, of someone who would like to jump on board, and has something you need in return.

A great post by Elizabeth Knopf , FounderDating: How I Found My Co-Founder where she breaks down the process much like how you think about a sales process.  I'm focusing on the sourcing ("lead gen" on her slide) aspect.

image

In Please, please, please stop asking how to find a technical co-founder, Jason Freedman tackles this a different way and suggests how you "earn a technical cofounder" along the lines of:

  • Learn to Code
  • Build the Front-End
  • Test on Paper
  • Build a Following
  • Spend Some Money

Here are a bunch of other articles on the topic of Cofounders.

  • How Much Equity a Technical Cofounder Should Get
  • 6 Ways to Find A Technical Co-Founder
  • Places to Find Developers in Exchange for Sweat Equity
  • How To Find A Programmer To Build Your Startup Idea
  • Bootstrapping a Lean Startup
  • Finding a Technical Partner for Your Startup
  • Finding Your Co-Founders
  • CTO Equity - Negotiation After Funding
  • Startup CTO Salary and Equity Data
  • Hiring a CTO for Your Startup
  • How to Hunt Programmers for Your Startup - A Field Guide
  • How I Found a Great CTO
  • We have a CTO, and so can you!
  • Why Your Startup Can’t Afford To Hire a CTO
  • Advice for CTO Founders: Don't Let Business Kill the Business
  • The Different CTO Roles
  • Why Your Startup Can’t Afford To NOT Hire a CTO
  • HOW TO: Hire the Perfect CTO
  • Finding a technical co-founder: You’re doing it wrong
  • How to find a technical Cofounder
  • Technical Cofounders are Overrated
  • A Minimum Viable Team is more important than a Minimum Viable Product
  • 7 Startup Co-Founders That Can Lead to Conflict
  • What is the best way to divide up ownership in a startup?
  • Ten Steps in Choosing the Right Startup Partner
  • Lockboxer CEO: You Don’t Need A Technical Co-Founder To Start A Web Business
  • How to pick a co-founder
  • The Co-Founder Mythology
  • Finding Your Co-Founders
  • Spencer Fry — Picking Your Co-Founders
  • Do I Need a Co-Founder: The 90/50 Rule of Startup Founders
  • How To Work Better with Your Co-Founder
  • How Do I Know You Are Mr. Right (Co-Founder)?
  • Why you can('t) recruit a technical cofounder
  • AskBob: Where do I find developer cofounder?
  • Things to Avoid When Recruiting Co-founders
  • Finding Technical Cofounders Is Hard
  • Need a Technical Co-founder? Hire a Product Design Lead First
  • Nailing that elusive technical co-founder
  • Thursday, January 5, 2012

    StartupRoar Adds Personalized Subscriptions

    Aggregage, the platform that powers StartupRoar has added a powerful personalization engine.  That means that the site now allows users to sign-up and have their content personalized based on their interests.

    You can sign-up via the "Personalize Your Content" button on the right side of the interface shown to the right of the red arrow below. 

    image

    By the way, I should point out that the four top articles on the site when I took the screen shot were all great:

    It's what I love about the site.  It always has great, fresh content from a wide variety of industry professionals.  Every time I visit it, I find something that I missed that was really good content.

    Now with personalization it's even better. The picture below gives a sense of what's happening:

    Aggregage-Personalization

    Curators handle finding the best sources of content.  The system then uses social signals such as those coming from Facebook, twitter, LinkedIn, delicious as well as clicks and views.  These are compared to averages for the source and also looks at who is providing the signal, how often they signal things, how often they signal for that particular source, etc.  Those aspects existed before and it does a good job of finding great content. 

    What's new now is that the site allows you to sign up and provide your Twitter and LinkedIn information.   The site will look at your activity on these sites and the content of what you share.  It will use that to find interests as well as to cluster you with other users who are like you based on interests and sharing.  You can partially control your interests via the Subscription page as shown below:

    image

    This will change over time based on your LinkedIn and twitter activity.  You can always visit and manually select interests as well.  You can read a bit more here: Personalization Explained.

    The system then can combine three pieces of information to figure out what will be most interesting to you:

    • Social signal score – are people in the audience finding it interesting
    • Topic match – does it match up with your interests
    • Like sharing – are individuals who are like you sharing this

    The system uses these to both rank things on the site and to generate Daily and Weekly newsletters.

    The reason that I'm most exited about this is that I partly use StartupRoar to make sure I don't miss things that is good content that is relevant to me.  Now with personalization, it is even less likely that something will sneak by. 

    I also personally like the format of the new newsletter.

    Give it a try and let me know what you think.