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How much HR does a scale-up need?

Nora Jenkins Townson
Contributor

Nora is an unconventional HR expert based in Toronto. After helping successful startups like FreshBooks and Wealthsimple grow, she founded Bright + Early, an HR consultancy focused on helping scaling companies build impactful people programs.

There is a special chaos that happens when a startup reaches 30 employees. People have a harder time tracking what’s going on, and it’s easy for some to feel left out or ignored.

Right when you want employees focusing on taking the company to the next level, they’re suddenly focused on their own futures. Insecurities and politics can abound, and the work can suffer.

How to stop the madness? In my experience, it all comes down to structure. It might seem early, or scary to a company used to succeeding on grit, but 30 is a key time to begin putting processes into place.

You’re no longer 10 people sitting around a table together, and communication can start to break down. Looking to large companies is no help either. It’s easy to get lost in a sea of frameworks, and you don’t want to overwhelm your team.

What steps can you take to keep things on track and scale effectively? How much is too much?

My company, Bright + Early, works with companies at exactly this stage, helping them grow up without losing the culture that makes them special. For a company just on the verge of scaling, here’s what I recommend.

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10x Ascend aims to help tech talent with job negotiations

10x Ascend is a new firm that helps software development, cybersecurity and data science professionals negotiate for better deals.

Founders Michael Solomon and Rishon Blumberg started out in talent management for the music industry (their clients still include musicians like Vanessa Carlton), then moved into representing tech freelancers with their firm 10x Management. More recently, they decided that there was an opportunity to provide similar services to full-time employees.

Given the rising demand for tech talent (the Bureau of Labor Statistics projects that software development roles will grow by 31% through 2026), you might think that developers and engineers can get anything they want when they’re looking for a job.

However, Blumberg suggested that many of these prospective hires simply don’t feel comfortable asking for what they want or what they’re worth — whether that’s more money, more equity, more flexibility in working from home, more vacation or anything else that’s important to them. He also pointed out that there’s no one else representing the employee’s interest in these discussions, since the recruiter ultimately works for the employer.

“Even though technologists are data-driven people who work in data-driven environments, they don’t negotiate that much,” Blumberg said.

So 10x Ascend can help, either by getting directly involved in the negotiations, or by advising prospective hires on things like counter-offers. (It’s not doing this in secret — Solomon said that either way, “We want the employer to know that we’re involved.”)

The firm is spinning out of 10x Management, and it’s been testing the model through a beta program. It says it’s already helped nearly 50 senior tech executives negotiate their job offers, increasing their compensation by an average of 35% — and as much as 100% in some cases.

In exchange, 10x Ascend collects between 6% and 8% of first-year salaries (the percent is lower for high-level jobs), starting with a $3,500 retainer.

Even though the firm is compensated based on salary, Solomon said that was simply the “cleanest” approach, and he emphasized that 10x Ascend isn’t just pushing clients to take the highest-paying offer. In fact, it’s created a free lifestyle calculator that helps people identify their priorities, whether that’s salary, job logistics, work-life balance and so on, which then informs the negotiations.

Blumberg also acknowledged that there’s been an “education” process with employers. He suggested that while engineers are sometimes nervous that they’ll blow a job offer by asking for too much, it’s actually helpful to have a third party who can take some of the heat.

“They can say, ‘That was my stupid advisor,’ ” Blumberg said. “We’re happy to be the bad cop.”

He also said that in some cases, employers are ultimately grateful to have 10x Ascend involved, as it helps them figure out packages that are more likely to attract and retain talent — which may mean offering more money, but could also mean creating more “bespoke” deals that provide flexibility or compensation in other areas. (You can read more about some of the negotiations on the 10x Ascend website.)

Given the name of the firm and the timing of the launch, I had to bring up the recent discussion around “10x engineers,” which led to some delightful social media backlash. Blumberg said he hadn’t been aware of the latest controversy, but he pointed out that this is a longstanding discussion. And inasmuch as 10x engineers exist, he suggested that they have team skills and emotional intelligence as much as technical skills.

“That doesn’t mean writing 10x lines of code or being 10x as fast,” Solomon added. “But we have definitely seen people who produce 10x results.”

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Verified Expert Growth Marketing Agency: TrueUp

It was the perfect storm when CEO and Founder Liam Reynolds finally decided to start TrueUp, a data-driven growth marketing agency/consultancy based in London. After decades of working for large creative advertising agencies, Liam quit his job right around the beginning of Silicon Valley’s growth hacking trend and plunged headfirst into running growth for early-stage startups.

TrueUp has since evolved from a one-man shop into an award-winning agency with a team of dedicated data, paid marketing and conversion specialists. Learn more about how they collaborate with clients and help them develop short- and long-term growth frameworks.

TrueUp’s approach to growth marketing:

“Rather than just saying ‘Look at these amazing results we’ve achieved,’ we would say, ‘Look, these are your growth opportunities, this is the process you need and here’s the framework unlock your true potential,’ We would build business models around this to show the opportunity in numbers, revenue and ROI.

Our approach to growth is anchored in delivering the right message to the right target audience in the right channel at the right time. It sounds simple but we’re amazed at how wrong people get this.

So we’ve created our own bespoke methodologies and frameworks to really explore and identify these hidden killer messages that drive action. We’ve built our own tools that allow us to do a lot of high-tempo, high-intensity testing.

It’s quite common that we have 500 to 600 tests running concurrently on Facebook for any given client. We’re continuously testing, learning, iterating, improving. As a result we’ve achieved some amazing results for our clients.”

Advice to founders:

“We approached True Up to help us establish and scale a UK paid marketing function. The team was highly professional from their initial pitch through the end of the project.” Maninder Saini, SF, International Operations Manager, Quizlet, Inc.

“For earlier stage startups, it’s to focus on achieving product-market fit and having awesome user experiences before worrying about growth. We worked with and mentored a lot of startups that immediately jump to, “Look I need to get X number of customers in X months.” However their products/services are often seriously lacking. This creates very weak foundations for growth. So their efforts would be better spent on creating products that genuinely meet a customer need. Once they’ve achieved product-market fit, it’s to communicate benefits not features. There’s always at least one killer message that cuts through but more often than not it’s hidden and not what the founders think it is. So a structured test program to explore this is also very much needed!”

designer fast facts 31

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already. 


Interview with TrueUp CEO & Founder Liam Reynolds

Liam photo

Yvonne Leow: Tell me about how you got into growth marketing and why you decided to start TrueUp.

Liam Reynolds: I started my career at a data marketing company called Dunnhumby. They were famous for managing the data science and intelligence behind TESCO’s Club Card, a very large loyalty program in the UK.

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‘The Operators’: Understanding your user – The art and science of UI/UX behind Facebook, Google, Mint, and Edmodo

Welcome to this transcribed edition of The Operators. TechCrunch is beginning to publish podcasts from industry experts, with transcriptions available for Extra Crunch members so you can read the conversation wherever you are.

The Operators highlights the experts building the products and companies that drive the tech industry. Speaking from experience at companies like Airbnb, Brex, Docsend, Edmodo, Facebook, Google, Lyft, Mint, Slack, Uber, WeWork, etc., these experts share insider tips on how to break into fields like design and enterprise sales. They also share best practices for entrepreneurs to hire and manage experts in fields outside their own.

This week’s edition features Gülay Birand, UX Lead and Product Design Manager at Facebook, and Tim Rechin, Head of Design at Edmodo, the leading education technology company. Gülay and Tim share their experiences and explain design, UI/UX, how to build a career in these fields, and how entrepreneurs should think about them.

Gülay and Tim bring experience from other great companies including Google, Amazon, Mint, and SAP. Having seen and grown in their disciplines from a variety of companies and customer types, they share deep insight from across tech.

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Neil Devani and Tim Hsia created The Operators after seeing and hearing too many heady, philosophical podcasts about the future of the world and the tech industry, and not enough attention on the practical day-to-day work that makes it all happen.

Tim is the CEO & Founder of Media Mobilize, a media company and ad network, and a Venture Partner at Digital Garage. Tim is an early-stage investor in Workflow (acquired by Apple), Lime, FabFitFun, Oh My Green, Morning Brew, Girls Night In, The Hustle, Bright Cellars, and others.

Neil is an early-stage investor based in San Francisco with a focus on companies solving serious problems, including Andela, Clearbit, Recursion Pharmaceuticals, Vicarious Surgical, and Kudi.

If you’re interested in becoming a designer, doing UI/UX research, furthering your career in that field, or starting a company and don’t know when to hire or how to manage this discipline, you can’t miss this episode!

The show:

The Operators highlights the experts building the products and companies that drive the tech industry. Speaking from experience at companies like Airbnb, Brex, Docsend, Edmodo, Facebook, Google, Lyft, Mint, Slack, Uber, WeWork, etc., these experts share insider tips on how to break into fields like design and enterprise sales. They also share best practices for entrepreneurs to hire and manage experts in fields outside their own.

In this episode:

In Episode 3, we’re talking about design and UI/UX. Neil interviews Gülay Birand, UX Lead and Product Design Manager at Facebook, and Tim Rechin, Head of Design at Edmodo.

Neil Devani: Hello and welcome to The Operators, where we talk to the people building the companies of today and tomorrow. We publish every other Monday and you can find us online at Operators.co.

Today’s episode is very special, we are talking to two UI/UX experts who have designed and researched products that have been touched by billions of people. I’m your host, Neil Devani and we’re coming to you today from the Vault of Joi here at Digital Garage in downtown San Francisco.

Joining me is Tim Rechin, Head of Design at Edmodo, the leading classroom and education community with 100 million users globally. Also joining us is Gülay Birand, a UX lead and product design manager at Facebook.

Gülay works on the newsfeed product used by billions of people every day. Thank you for joining us, if you could tell us more about yourselves and your work it would be great to hear more.

Gülay Birand: Thank you, my name is Gülay Birand. I’m a product design manager at Facebook . I’ve been at Facebook for about three months. Prior to that I was at Google for about 8 years, and I led a horizontal team on Google Cloud Platform for about four years, leading growth and engagement, support, and product excellence initiatives.

Prior to that I did a bit of a tour to Google, so I worked on search, identity, a couple of other areas like mobile ads, and before that I was at T-Mobile where I was building mass market and franchise home experiences, mainly on Android. And prior to that I was at Amazon leading experiences for the very first Kindle, so that was a lot of fun.

Devani: And Tim tell us more about yourself and how you got here.

Tim Rechin: Yeah, so I’m currently at Edmodo, leading up design and that’s really across the entire platform that serves our teachers, students and parents in the US and globally. And before Edmodo, I was at Facebook, and I was on the Feed Ads team and responsible for the lead ads product that we launched that year. Before that I was at Mint, so doing personal finance and some of you may be using Mint.

Devani: I’m definitely using Mint, its great, I love it.

Rechin: And then before that SAP, Yahoo, eBay, and then Elance very early on which is now Upwork.

Devani: Very cool, all companies that I’ve used, products that I enjoy, thank you for helping create them.

Birand: Thank you.

Devani: So it’d be great if you could tell folks more about what you do every day. Who are the folks in your company that you are interacting with, what are your responsibilities, what does it mean to do the job that you do?

Rechin: That’s a good question, it’s a bit mixed. Just for some context, Edmodo is a company a little over 100 people and so our product teams are in the 6-7 product managers range. I lead a team of 3 designers. So my day to day is really getting to work and really trying to figure out what’s going on, so this year is a particularly busy year as we get ready for back to school.

And so we have a lot of concurrent projects going, so one of the things I like to do when I get in is level set, kind of see how my day is and I’ll go check in with the different teams. That’s part of the work I do, working with the different product teams and the strategy.

So like I said, we are working on lots of different projects, so it’s really just keeping everyone aligned and making sure that designers are delivering things on time, that any issues or gaps are being filled and we can go answer those questions that are coming from product managers and designers. In some cases too, there is a project that is about to be kicked off, so everything is not clean, phased, there are always these things that kind of pop up.

So I will find myself in meetings in talking about strategy to figure out how to kick off those projects or what our go-to-market is for back to school.

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Is blitzscaling killing early employee equity opportunities?

Silicon Valley has many dreams. One dream — the Hollywood version anyway — is for a down-and-out founder to begin tinkering and coding in their proverbial garage, eventually building a product that is loved by humans the world over and becoming a startup billionaire in the process.

The more prosaic and common version of that Valley dream though is to join an early-stage company right before its growth kicks into high gear. Sure, those early employees might only have a smidgen of equity, but that equity could be worth a whole heck of a lot if they join the right startup.

Every startup has a window of opportunity, a timeframe in which early employees can join while the stock option strike prices are low and the equity grants are high. Join before the big uptick in valuation, and suddenly what might have been an otherwise nice couple of hundred K dollars in the coming years becomes actually, well, in the Bay Area, a reasonably-sized domicile.

Yet, that opportune window seems to be shrinking in size, making it harder for potential startup employees to nail the timing necessary to garner their own best financial return.

For every Roblox, which as we profiled in-depth this week, took almost two decades to reach its current apotheosis, there is a Brex, which seems to reach unicorn status in no time at all. And such stories — while certainly anecdotal — seem to be more commonplace than ever.

Part of the reason for that fast early valuation growth is that Silicon Valley has simply learned how to grow even faster, even earlier. As venture capitalist Reid Hoffman and Chris Yeh discuss in their book Blitzscaling, there are now frameworks and tried-and-true techniques to not just grow a startup, but to grow it at a dizzying rate. Through better marketing channels, growth strategies, and product development, we have indeed made progress at cutting at least some of the time to better valuations.

That rapid transformation from nothing to everything though gives very little time for early employees to discover a startup through the grapevine when the financial conditions are still interesting.

Half a decade ago, I wrote about the plight of early employees in an article I entitled “The Problem with Founders.” I wrote then that:

The secret of Silicon Valley is that the benefits of working at a startup accrues almost entirely to the founders, and that’s why people repeat the advice to just go start a business. There is a reason it is hard to hire in Silicon Valley today, and it isn’t just that there are a lot of startups. It’s because engineers and other creators are realizing that the cards are stacked against them unless they are the ones in charge.

My reasoning then was simple: early employees take on pretty much just as much risk as their founders do, but for a fraction of the equity. Now, with startups jumping to unicorn status in sometimes as short as a handful of months, that risk-reward ratio seems to be even more off-kilter for those early employees.

And it doesn’t just have to be a Brex -scale transformation either. The rapid increase in the size and valuation of series A rounds of financing the past three years means that engineers and salespeople who might have an employee number in the low double digits are suddenly seeing their options struck at a couple of hundred million in valuation. Exits, meanwhile, aren’t suddenly getting richer to compensate.

I started to notice this pattern over the past few weeks in the course of several conversations with software engineering friends of mine who had gotten excited about very early-stage companies — say, just a handful of employees — but who walked away from their offer letters due to already sky-high company valuations.

Now, there is an argument to be made that joining these sorts of companies is precisely where the best opportunities lie. Sure, the valuations are already high, but these are startups with the financial resources and the backing that might allow them to compete effectively. So maybe the equity is smaller and more expensive, but ultimately, if the startup is more likely to be successful, the expected value function might actually be favorable.

Maybe. Yet it is also hard to see how these startups, which despite their rich valuations have barely laid any foundation for success, are a safer bet than a similarly-valued startup with years of experience under its belt and a growth strategy based upon dependable results. Even worse, early employees are perhaps taking even more financial risk, since the preference stack of the venture capital could mean that smaller exits are particularly unfavorable to them.

Plus, the shrinking opportunity window for leading startups means that the difference in financial outcome between two early employees — what could be millions of dollars upon an exit — could have been decided based on who joined the week before the other. That doesn’t seem fair or right, but is increasingly widespread in our industry.

As with most macroeconomic structural changes, there’s not much for anyone to do. Founders aren’t going to take lower valuations or less money just to make the lives of their early employees a bit more rosy, and certainly venture capitalists aren’t going to lowball their offers in a hyper-competitive investment environment. Indeed, the very excitement of a sudden unicorn may be the best attraction for candidates to hear a startup’s pitch and ultimately join.

But when it comes to that Silicon Valley dream of a nice house from a decent return on exit, it’s getting narrower and less widely-distributed. Blitzscaling is making a lot of people a lot of wealth, but early employees? Not so much.

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Minimum investment for EB-5 investor green card expected to more than double

While not a startup visa, the EB-5 investor green card offers many entrepreneurs a path to a green card by investing money and creating jobs in the U.S. Under the EB-5 program, an entrepreneur’s family is also eligible for green cards.

Imminent regulatory changes to the EB-5 program are expected to make obtaining an EB-5 green card a whole lot more expensive. The minimum investment is anticipated to more than double to $1.35 million from the current $500,000. And with individuals from India expected to face a backlog for EB-5 green cards shortly, the opportunity to obtain an EB-5 green card at a relatively low cost and in a timely manner is closing.

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Verified Expert Brand Designer: Studio Rodrigo

Ritik Dholakia worked as a startup product manager before he co-founded Studio Rodrigo, a branding and product design agency based in NYC. Unlike traditional branding firms, Studio Rodrigo is proud of its product design chops, especially when it comes to helping early-stage startups build version one of their product. It’s not an easy balancing act since most companies eventually want to bring their product design talent in-house, but it turns out, Studio Rodrigo can help with that too. Learn more about the studio in our Q&A with founder Ritik Dholakia.

Studio Rodrigo’s unique approach:

“Studio Rodrigo listened to all of our goals and dreams, concerns and uncertainties, and created a brand identity, website, and marketing materials that were true to our vision but better than anything we could have imagined.” Tze Chun, NYC, Founder, Uprise Art

“Basically, we’re a full-stack product design team. We have people who can do brand identity from a pure graphic design and visual communications standpoint, and who can also connect the dots between design and technology, business, and customer needs. We don’t have a traditional agency model with a project and account management overhead. You work directly with our designers.”

On Studio Rodrigo’s ideal client:

“We like working with clients that are solving big, meaty, challenging problems. We’ve got a smart team that likes to wrap their heads around the kinds of technologies that are pushing industries forward. For us, that’s currently technologies like machine learning and artificial intelligence.”

designer fast facts 30

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup brand designers and agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already. 


Interview with Studio Rodrigo Co-founder Ritik Dholakia

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Yvonne Leow: First things first, how did you get into brand design and product development?

Ritik Dholakia: I’ve been in digital design and product development for about 20 years now. I actually started my career as a product manager at a startup. I worked for two venture-backed startups as the first product manager. I was part of the Series A team, managing product development, acquiring initial customers, and building market traction.

The first startup was an enterprise software platform for customers doing triple bottom line reporting. The second one was one of the earliest social networking platforms, pre-Facebook, and around the same time as Friendster, LinkedIn, and Spoke.

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Bird plans to hire 1,000 people in Paris

Scooter startup Bird is betting on the French market in a significant way. The company plans to open up its biggest European office in Paris. Eventually, Bird wants to hire 1,000 people by mid-2021, which is a meaningful number for a company that has been around for a couple of years.

Paris is an important market for Bird, and all scooter startups in general. It’s a relatively small city — when it comes to footprint, Paris is smaller than San Francisco. But it’s also a dense city. And of course, there are a ton of tourists who come to Paris just for a few days.

That’s why 12 different companies launched a scooter-sharing service in Paris (yes, twelve). But Les Échos recently reported that many of them have already left the city. Lime, Bird, Circ, Dott, Jump and B-Mobility are still around.

It’s a capital-intensive industry, and Bird has already raised a ton of money to outlive the competition. But money is just one thing.

Opening an office in Paris is also important to show city officials that Bird is serious about this market. Last month, the City of Paris announced that it would limit the number of scooter companies in Paris. They will hand out two or three licenses to operate. And Bird certainly wants to be one of them.

Bird will also use its Paris hub to educate users about safety. The company plans to hand out free helmets if you attend a safety training session.

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How a martial arts gym trained me to build an inclusive culture

Ken Kao
Contributor

Ken is an engineering manager at Airbnb building products that enable entrepreneurs to provide hospitality on the platform. Outside of work he enjoys Muay Thai, Pekiti Tirsia Kali (Filipino sticks & knives fighting), cooking, and writing.

A wave of unease immediately swept through my body. Constant puffing and growling echoed around me as heavily-tattooed fighters threw forceful punches into the heavy bags. This was the scene I encountered when I stepped into Five Points Academy, a martial arts fighting gym in New York, for the first time a few years ago. Having grown up in a sheltered environment — the last time I had gotten into a fight was in kindergarten — I wasn’t sure I would fit in.

Emily, one of the instructors, immediately introduced herself and showed me some basic Muay Thai movements. The class focused on pad work, so students paired up and held Thai pads for each other to practice their moves. Emily rotated me through different partners during the class, offering me a taste of what it was like to hit pads, and I was hooked.

A year ago, my friend, Diane Wu, wrote a wonderful post arguing that “inclusion is the cause, and diversity is the effect. When an inclusive mindset is in place, diversity naturally follows.” My experience at Five Points reflects this sentiment. Despite being in a traditionally male-dominant field, roughly 40% of our instructors, half of our fighters, and half of our members are women. It’s not a coincidence that they are also widely regarded as one of the most inclusive and least “bro-y” fighting gyms in New York.

Tech has only been male-dominant in the last few decades — the first coders in the 1940s were women — while martial arts has been male-dominant for the last few millennia. If a martial arts gym can overcome systemic obstacles, we, in tech, can do better. After interviewing the owners, coaches, fighters, and members of the gym, here is what I learned about how they created an inclusive community.

Culture starts from the top

Studies have shown that culture stems from leadership, and this is demonstrated by the three owners of Five Points, Steve, Simon, and Kevin. Multiple members noted that Steve’s laid-back demeanor, Simon’s British humor, and Kevin’s always-friendly attitude were a big part of what made Five Points feel like family. As Steve explained, “People learn better if you’re encouraging as opposed to intimidating.” This welcoming culture from the top certainly encouraged a wider range of people to join and prosper, especially among more recreational fighters.

Companies are no different when it comes to establishing cultures from the top. If inclusivity is a priority, executives have to demonstrate that.

I’ve seen cases where the CEO created a committee to collaborate on establishing core values for the company, only to scrap that conversation and send out a survey asking employees to rate cultural values the CEO personally came up with. Over time, people with different viewpoints left the company, and the ones who stayed were predominantly from the same backgrounds in terms of work experience, gender, and ethnicity. Ultimately, building a culture of inclusion requires both executive buy-in and genuine follow-through actions, or else it will be hard to sustain.

“Inclusion” includes everyone

Five Points didn’t start out aiming to achieve gender parity or market to certain demographics. Instead, they focused on creating a community where everyone was welcomed. Simon summarized it well, “An inclusive culture includes everyone. By not having the right culture, you might turn away a person — not just women, but also other men — that can potentially help improve your gym directly.” He further elaborated, “We don’t want an asshole culture not just because women might be turned off—but men would, too.”

This is an important distinction. For example, it is tempting to generalize that a frat-house gym culture could keep women away. However, many men dislike such a culture as well. Instead of lumping people into groups, we can look at each individual and ask ourselves, “what environment would be welcoming for him or her?” For instance, Kevin always makes sure to take time to understand each prospective new member, give them a tour of the facilities, and discuss how the academy could cater to their needs.

We can extend this idea further: surface-level characteristics are often times just a proxy for deeper attributes, so why not go straight to the root? When I took Muay Thai classes at other gyms, the instructor would often remind everyone, “Guys, if you are paired with a girl, please go lighter.” This gender-based generalization is just a proxy for the root attribute: size. At Five Points, the instructor would instead say, “Guys (and gals), if you are paired with someone a lot smaller than you, please adjust your power to keep your partner safe.” Safety is a concern for anyone facing a bigger opponent, regardless of the gender they identify themselves with.

In tech, there has been a lot of discussion around creating a more inclusive environment for underrepresented demographics. I believe we can be more effective by augmenting this effort. In addition to asking “how can we make women feel comfortable contributing to meetings?”, we can also ask “how can we help all employees feel comfortable contributing to meetings?”[1] In addition to discussing “how can we provide support mechanisms for minorities?”, we can also discuss “how can we provide support mechanisms for employees who are not well-versed in mainstream corporate America culture?” I believe this hybrid approach can cover more ground and ensure that help is delivered to the people who need it most [2].

Treat everyone equally

A common theme among the female coaches and members I interviewed was that they felt that gender was something that did not cross their minds during class. Multiple members have commented that the instructors treated everyone equally. For example, if you were late, independent of what demographic or skill level you were, you had to do 30 pushups [3]. Giving everyone the same standards ensured that people couldn’t pick on others or make snide comments such as “Amy got off easier because she was a girl.”

One of the rules during Muay Thai drills class is to lower the power level and focus on technique. One time, Steve took Emily’s Muay Thai drills class and hit his partner a bit too hard. Emily immediately reminded Steve, “that was probably a bit too hard.” It didn’t matter that Steve was an owner and Emily was an employee — as the instructor of the class she made sure everyone followed the same rules.

Likewise, treating everyone equally starts from the beginning: the candidate experience. A common question I get is “how do we improve diversity without lowering the bar?” What I propose is to define a set of capabilities that all candidates need to demonstrate. For example, if a productive software engineer needs to be good at algorithms, system design, communication, teamwork, and breaking problems down, we should evaluate each of the five areas fairly during recruiting.

Unfortunately, many companies only look at the first two, which not only results in a non-diverse group of employees, but also those with skillsets that don’t fully map to their jobs. By communicating the standards transparently, we ensure that all employees understand that they belong, and are equally a part of the community.

Pay attention to details

Details often reflect the thoughtfulness put in to creating a culture. Ting, a Kali (a weapons-based martial art) instructor and former fighter, explained, “Many martial arts gym are dirty and smell like sweat. Five Points pays attention to details: there are hair ties and multiple hair dryers for women’s locker rooms. The mats are mopped every hour in between classes. This removes one extra stress for a lot of women who want to try out martial arts.”

Needless to say, the attention to detail applies to classes as well. A new member shared the following story with me: “Once I was getting ready to do a private session with Steve after Emily’s Muay Thai class. Emily went to Steve and said ‘she needs more work on her left roundhouse kick.’ Of course Steve then made me do left roundhouses for 30 minutes straight.”

While the member was cursing inside, she was also grateful for the attention Emily paid to her. Sonya, a long-time Kali student, also recalled that Simon would often notice when she’s flustered with a particular drill. With his classic British humor, he would remark “too much water in the bucket?” before proceeding to break down the drill further to ensure she could absorb the information.

There are many zero-cost things companies can do that could make the employees feel taken care of. For example, in the early days, Palantir, my former employer, would proactively offer employees the option to early-exercise their stock options. They also brought in tax accountants to explain how to handle the alternative minimum tax (AMT). However, I’ve also seen companies with 60+ employees where no one was given the option to early-exercise, even though it financially costs the company practically nothing.

Be adaptive to change and proactively improve

When Five Points first started, they followed the Western boxing mindset where members sparred hard. The mentality was to identify fighters who were tough and wanted it so bad they’d return after getting beaten up. Over time, as Steve and Simon traveled to Thailand, they witnessed a different style of sparring, where fighters sparred lightly and focused on technique and timing.

They revamped their sparring classes to “Thai Style Technical Sparring,” and had a few designated “hard sparring” classes. Although a few fighters were upset, Steve and Simon were convinced that this was the right approach. As Steve explained, “the old style can help you find tough people but not necessarily the best people.” Furthermore, the best fighter can come in all shapes, sizes, genders, and backgrounds, not necessarily the “tough person” who comes in day one wanting to fight.

This open mindset certainly uncovered many great fighters they wouldn’t have found otherwise, increasing the diversity of the community. One of their fighters, a former model and actress, came to Five Points never thinking she would fight. The welcoming environment and emphasis on technique during sparring made her feel safe as she leveled up her skills. Three years in, Steve asked her if she wanted to do a fight. She ended up getting hooked and went on to win multiple US Kickboxing Association International Championships.

This adaptive mindset is applicable to other areas as well. When I interviewed at Google, one of my interviewers told me that for a long time Google focused heavily on brain-teasers and algorithmic puzzles. As a result, during lunch with his team, the predominantly white and Asian male engineers with backgrounds in coding would discuss brain teasers and algorithmic puzzles.

Over time, Google’s leadership realized that brain teasers and algorithmic puzzles have little correlation with one’s performance. They then restructured their interview process, and the diversity of the team improved. Obviously there are still areas for improvement, but being able to recognize issues and adapt to new findings is critical to fostering an inclusive culture.

Enforce the rules fairly when needed

The journey to building a diverse and inclusive martial arts community is not without the occasional bumps. As a community grows bigger, there will inevitably be bad actors, and how a leader responds to them will set the tone for how the culture develops.

Emily has kicked students out of her class a few times when a bigger or more experienced fighter beat up on a smaller or less-experienced student. It did not matter if the bully was highly skilled or fought for the gym — she enforced the rules fairly with everyone. Similarly, after a 200+ lbs experienced man repeatedly beat up others during Muay Thai sparring and refused to let go on locks during Brazilian Jiu Jitsu classes, Steve asked him to leave the gym.

On the contrary, in a work environment, I have witnessed situations where someone would repeatedly yell at colleagues in front of everyone — including executives — during meetings. It got so toxic that four people from various departments requested to switch projects because they did not want to work with the person anymore. However, because the employee was deemed important by executives, they continued to let him yell at others during meetings with no repercussions.

Culture is not just slogans hung on the walls of your conference rooms. UCSF Psychiatry professor Cameron Sepah says, “Your Company Culture is Who You Hire, Fire, and Promote.” One of the triggers for a recent employee walk-out at Google was because the company paid ex-executives tens of millions of dollars after discovering allegations of sexual misconduct. Ensuring improper behavior is dealt with immediately and fairly is vital to fostering an inclusive culture.

Success breeds success

When an initiative has early traction, it is much easier to continue the momentum. Culture is the same way. When Five Points first started in 2002, they already had three high-level female fighters—one of them, Emily, even went on to win the Muay Thai World Championships. Having diversity early on helped provide role models for members from underrepresented backgrounds who were interested in fighting.

Once an inclusive culture is established, the community members will continue to be inclusive and others will want to join. One of the coaches and fighters, Gianna, explained, “Nobody made me feel like sh*t when I was new, so I want to make sure other noobs don’t feel that way either.”

Another Kali student, Sonya, who describes herself as a “girly girl,” had to work extra hard honing her skills because she did not come from an athletic background like most of the other members. However, Simon was always patient with her, continually breaking down techniques until she grasped them. Looking back, she is extremely appreciative that Simon tried very hard to make her feel comfortable, and now she recommends all her female friends to try out Kali. Her motivation? “I want girly girls to know that they’re welcome here.”

The same applies to the tech industry. I have seen series A companies with 50 employees struggle to hire women due to their gender imbalance (15% female), only to see the ratio further decrease as the company grows (10%). On the other hand, Flatiron Health, also a former employer, focused on diversity & inclusion from the get-go, including hiring senior female leaders across all functions early on. When I was there, they had roughly 50% female employees and 50% female managers.

From inclusion to diversity

Five Points Academy never started with the intent of building a gym with 50% women and members from all different ethnic and socio-economic backgrounds. Instead, the owners simply wanted to build a gym where anyone can belong, and anyone can enjoy being part of the community. By starting with inclusion, diversity followed.

I am not at all advocating for halting initiatives on diversity. It is important that we focus on diversity, and many companies are doing just that. However, just like Five Points Academy, we also need to invest in building an inclusive culture to help people thrive and grow at the company, which will further attract more diverse employees.

Footnotes

[1] Studies have shown that a man’s ideas are often taken more seriously than a woman’s. As a result, many women choose not to participate in meetings but ask a male colleague of theirs to present their ideas.
[2] For example, according to Ascend Research, Asians score the lowest in executive parity index, doing worse than Blacks and Hispanics. However, they are not considered an “underrepresented minority,” so relatively little has been done to mentor young Asian professionals on career progression.
[3] If you had physical limitations, you could substitute them with pushups on knees or another exercise.

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The boring genius of how Atrium kills legal busy work

Law firms have little incentive to build or buy software that will save their lawyers time because they often bill clients by the hour. Tasks like tracking down legal documents, extracting key information and drawing up hiring offers or funding term sheets add up to make lawyers expensive, even if they’re constantly repeating mindless busy work.

That’s why legal startup Atrium is so exciting — even though it’s developing tech that might seem boring on the surface. After raising $75 million from Andreessen Horowitz and General Catalyst while growing to 400 clients, today Atrium is announcing its first customer-facing products.

Atrium Records creates a collaborative file locker for you and your lawyer so you always have access to the latest versions of corporate documents. Atrium Hiring automatically generates hiring offers and contracts from details you add to a form, and tracks everyone’s approvals and signatures.

Atrium Records

Rather than having to pay for these tools separately, they come as part of a subscription to a bundle of Atrium’s legal services, with special projects like counsel through an acquisition costing extra. This business model incentivizes Atrium to work as efficiently as possible instead of bilking hourly rates, and build tools to eliminate less-skilled work or assist with common corporate duties. That’s allowed it to speed up legal work on incorporations, financings, M&A and contract negotiations.

“One of the reasons we partnered with Andreessen Horowitz on the last round [a $65 million Series B] was we really align with the way they approach venture capital,” Atrium co-founder and CEO Justin Kan tells me. “Marc’s initial observation was . . .  let’s not just provide capital but also other services like a talent network. We have kind of done the same stuff. Not only are we helping people with the legal stuff they want to get done but with the other stuff surrounding it.”

Atrium CEO Justin Kan at TechCrunch Disrupt SF 2017

For example, Atrium’s Fundraising Concierge service provides assistance to startups for defining their narrative, setting up investor meetings and generating fair term sheets. Atrium has to date aided startups with raising more than $1 billion, from seed rounds of $200,000 to huge $50 million rounds

Developing drab but useful software for enterprises is a drastic shift for Kan. He pioneered life vlogging by strapping a camera to his head at his startup Justin.tv that eventually blossomed into Twitch and sold to Amazon for $1 billion. It’s been quite an adjustment for Kan going from making video-game-streaming consumer apps and angel investing to Atrium. “Two years. It has been an interesting and crazy ride. I wanted to get back to starting companies. That was the fastest learning I’d ever had. But I forgot learning means failing a lot,” he says with a wry smile.

Whatever tribulations they required seem worth it now that Atrium’s new products are ready. Atrium Records improves on the clumsy status quo where clients have to dig through emails from their lawyers hoping to find the most up-to-date versions of important corporate documents. If they can’t, they wait around after emailing their lawyer who has to hope they remember where they buried that term sheet or cap table in their firm’s file tree. This messy process can rack up billable hours, lead to data mismatches and let important signatures or approvals fall through the cracks.

Atrium Hiring

Kan says he’s seen some grisly situations. “You never signed your equity documents so you actually have no equity in this company. And now that there’s financing, there could be a taxable event. There’s often surprisingly serious problems that happen.” Atrium’s senior product manager Sahil Bhagat walks me through how Atrium can help clients avoid an issue like, “Maybe you hired 10 employees but didn’t update your cap table and then you’re hiring the 11th employee but you don’t have any equity to grant so you have to go through the hassle of increasing your options pool.”

Atrium Records acts like your searchable legal Dropbox. The startup works with your last law firm to ingest your documents around equity, taxes, employees and IP, and make sure they’re all up to date. Machine learning extracts critical data about financings and cap tables so that’s instantly available in the Atrium dashboard and you don’t have to dig into the original docs. Plus, you don’t have to pay for lawyers or paralegals to do that manually. And your lawyer can build a task list of documents for you to edit or sign so you always know what to do next, which is a relief when you’re wrangling approvals from all your existing investors.

Atrium Hiring operationalizes one of the biggest founder time-sucks. Instead of writing hiring contracts from scratch each time, you fill out a form and use menu selections to set the salary, share count, vesting schedule and offer expiration. Looking across its anonymized data set of contracts, Atrium can recommend the best clauses and most common set ups, like four-year vesting with one-year cliffs. You can see the status of the contracts every step of the way, from drafting and finalizing to getting employees to accept.

Kan tells me Atrium’s goal is to continue building on its archive of more than 100,000 legal documents to develop aggregated pools of data clients could opt into. If they’re willing to share their salary data, vendor contract pricing and more, they’ll get access to that of Atrium’s other clients. “You’ll be able to see if you’re on the high end of being paid by Salesforce for a contract,” Kan explains. That’s a much more data-driven approach than when most lawyers just think of the last few salaries they saw for that position and give you a rough average.

“Being able to tell what the market norms are is a powerful negotiating tool.” The startup has even been offering its tips for free as part of fundraising workshops it uses to attract clients. The challenge for the company will be ensuring efficiency doesn’t mean cutting corners.

Atrium has grown to 150 staffers split between legal practitioners and its product team in its two years since launch. Kan is trying to build a culture where everyone cooperates, unlike infamously cutthroat law firms where partners can compete for cases. He hopes that talent will stick with Atrium because it’s deleting the most tedious parts of their jobs. “No one wanted go to law school to review 1,000 hiring docs.”

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