Steve Jobs
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In business, there’s nothing so valuable as having the right product at the right time. Just ask Zoom, the hot cloud-based video conferencing platform experiencing explosive growth thanks to its sudden relevance in the age of sheltering in place.
Having worked at BlackBerry in its heyday in the early 2000s, I see a lot of parallels to what Zoom is going through right now. As Zooming into a video meeting or a classroom is today, so too was pulling out your BlackBerry to fire off an email or check your stocks circa 2002. Like Zoom, the company then known as Research in Motion had the right product for enterprise users that increasingly wanted to do business on the go.
Of course, BlackBerry’s story didn’t have a happy ending.
From 1999 to 2007, BlackBerry seemed totally unstoppable. But then Steve Jobs announced the iPhone, Google launched Android and all of the chinks in the BlackBerry armor started coming undone, one by one. How can Zoom avoid the same fate?
As someone who was at both BlackBerry and Android during their heydays, my biggest takeaway is that product experience trumps everything else. It’s more important than security (an issue Zoom is getting blasted about right now), what CIOs want, your user install base and the larger brand identity.
When the iPhone was released, many people within BlackBerry rightly pointed out that we had a technical leg up on Apple in many areas important to business and enterprise users (not to mention the physical keyboard for quickly cranking out emails)… but how much did that advantage matter in the end? If there is serious market pull, the rest eventually gets figured out… a lesson I learned from my time at BlackBerry that I was lucky enough to be able to immediately apply when I joined Google to work on Android.
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Peacetime CEO/Wartime CEO by Ben Horowitz is one of the most commonly cited management think pieces of the last decade.
And for good reason; Horowitz surfaced a fundamental distinction in operating philosophy that is necessary for companies to survive, reinvent and ultimately win when macroeconomic environments shift. The framework is especially useful given how counterintuitive the advice is — behaviors of a peacetime CEO and wartime CEO are often on diametrically opposite sides of the spectrum; it is rare to find a CEO who can successfully emulate both personas.
While in concept it is easy to understand these principles, as with most things in life, nothing can replace the visceral comprehension that comes via learned experience. We are at the onset of enduring the most challenging startup environment of (at least) the last 15 years. COVID-19 is an indiscriminate event that is systematically wiping out businesses, whether “atoms” or “bits.”
For most startup operators, this is the first taste of true systematic adversity. The undercurrents of frothy valuations, the social milieu of early-stage investing and stores of excess capital are coming to a grinding halt as the bull market of the last 12 years is dramatically disrupted. We have an entire generation of founders/CEOs who may conceptually understand the peacetime CEO/wartime CEO ethos, but now, they’re going to actually live it. At the same time as every other founder/CEO. Brutal.
Since the onset of COVID-19, we have spoken to more than 100 founders and CEOs. Naturally, we are hearing frequent allusions to peacetime CEO/wartime CEO as a framework to help navigate the landscape. We’ve even used it over the last few months. While we believe it is a helpful framework, it is also incomplete. Further, we believe its application can lead to deeply problematic outcomes.
At a micro level, the misplaced application of peacetime CEO/wartime CEO can fundamentally change a company for the worse. A wartime CEO, as Horowitz notes, is “completely intolerant, rarely speaks in a normal tone, sometimes uses profanity purposefully, heightens contradictions, and neither indulges consensus building nor tolerates disagreements.” In the strictest application, we are seeing this align with a common false trope that has plagued the tech industry: “To change the world like Steve Jobs, I need to emulate all aspects of Steve Jobs’ personality.” A classic logical fallacy many founders/CEOs have learned the hard way — if you emulate all aspects of Steve Jobs’ personality, it doesn’t mean you will change the world like he did.
Each company is driven by its own unique culture and values — in a crisis situation, while it is important to be adept and agile, it’s equally, if not more important, to triple down on the strongest elements of your culture established pre-crisis. Many of the strongest founders/CEOs we have had the pleasure of coaching and investing in are uniquely world-class in their patience and tolerance, their ability to make the abnormal normal and their commitment to inspire with clarity. It is the adherence to these principles that will help carry their companies through this time.
At a macro level, peacetime CEO/wartime CEO conjures outdated themes that are at best inaccurate, and at worst, counterproductive. War implies “destruction, ruthlessness, blood, death;” there is an innate sense of machismo and bravado in this language reinforcing a homogeneous tech community. This type of vernacular and attitude increases barriers to a more inclusive community excluding women and underrepresented minority participation.
Now is the time for us to propagate community, resourcefulness and generosity.
One of the most common takeaways we have heard in reference to the framework is, “now is the time when real founders are made.” If Rent the Runway, ClassPass, Away, the Wing and the countless other women-led/minority-led startups that have been adversely affected by COVID-19 are not able to bounce back, we highly doubt it is because “they weren’t able to cut it as real founders,” a ridiculous assertion to make under any circumstance.
The peacetime CEO/wartime CEO framework is clearly valuable — it forces us to dissect the behavioral shifts necessary to survive in a crisis. That being said, it needs to evolve. Being firm, decisive and staring down an existential crisis is not mutually exclusive with applying empathy, gratitude and generosity. You can be an intense, laser-focused and paranoid CEO without losing yourself or fundamentally changing the culture of your company.
We know dozens of leaders who are leading their companies through these challenging times without leaving a wake of carnage or damage to the foundation they have spent years building. They are leading with their heart and values and will be remembered for how they carried themselves, treated their employees and guided the company through the crisis. COVID-19 presents us with a unique opportunity as an industry. Now is the right time to retire the false dilemma of peacetime CEO or wartime CEO and empower the rise of the human-centric CEO:
There’s no way to mince words. COVID-19 is having a devastating impact on the startup community. The inevitable is unfortunately occurring every day — many startups will never come back from this. As eternal optimists, however, we see opportunity in this crisis for the broader industry: the rise of the human-centric CEO. Now is the time for us to propagate community, resourcefulness and generosity. It’s the time to be ever thoughtful about employees, colleagues, stakeholders and fellow founder/CEOs in need. Individual startups may not survive this crisis, but it is our hope that an everlasting mentality does.
By no means is this list exhaustive, but it captures the behaviors and attributes from the top leaders we are working with. We believe CEOs should strive to become human-centric. Not only because it’s the right thing to do, but also because we believe it will lead to healthier organizations and better results over time.
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NASA has selected Houston-based Axiom Space, a startup founded in 2016, to build the first commercial habitat module for the International Space Station (ISS). This module will be used as a destination for future commercial spaceflight missions, potentially housing experiments, technology development and more performed by commercial space travelers taking rides up to the ISS via human-rated spacecraft like the SpaceX Crew Dragon and Boeing Starliner, once those start regular operational service.
Axiom Space was founded in 2016, and is led by co-founder and CEO Michael T. Suffredini, who previously acted as program manager for the ISS at NASA’s Johnson Space Center. The company boasts a lot of ex-NASA talent on its small team, and eventually it plans to make its in-space modules the basis of its own private space station, after first attaching them to the ISS while it’s still operating. NASA has extended the planned service life of the ISS, but the plan of the agency’s current leadership is to eventually encourage private orbital labs and commercial facilities as an ultimate replacement.
In 2018, Axiom teamed up with designer Philippe Starck (yes, the same one who famously designed a luxury yacht for Apple founder Steve Jobs) to provide a look at what their future space station modules might look like, including crew quarters with interactive displays and a cupola that provides a breathtaking view of Earth and surrounding space.

This ISS module may not be a full-fledged private space station, but it is a step in NASA’s goal of further commercializing the existing space station and ultimately paving the way for more commercial activity in low Earth orbit. Axiom’s mandate also includes providing “at least one habitable commercial module,” with the implication being that it might be awarded extensions to build more in the future. Next up for the new partners is negotiating terms and price for a contract for the module, which will also include a timeline for delivery.
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In Marc Benioff’s book, Trailblazer, he tells the tale of how Steve Jobs planted the seeds of the idea that would become the first enterprise app store, and how Benioff eventually paid Jobs back with the gift of the AppStore.com domain.
While Salesforce did truly help blaze a trail when it launched as an enterprise cloud service in 1999, it took that a step further in 2006 when it became the first SaaS company to distribute related services in an online store.
In an interview last year around Salesforce’s 20th anniversary, company CTO and co-founder Parker Harris told me that the idea for the app store came out of a meeting with Steve Jobs three years before AppExchange would launch. Benioff, Harris and fellow co-founder Dave Moellenhoff took a trip to Cupertino in 2003 to meet with Jobs. At that meeting, the legendary CEO gave the trio some sage advice: to really grow and develop as a company, Salesforce needed to develop a cloud software ecosystem. While that’s something that’s a given for enterprise SaaS companies today, it was new to Benioff and his team in 2003.
As Benioff tells it in his book, he asked Jobs to elucidate on what he meant by an application ecosystem. Jobs replied that how he implemented the idea was up to him. It took some time for that concept to bake, however. Benioff wrote that the notion of an app store eventually came to him as an epiphany at dinner one night a few years after that meeting. He says that he sketched out that original idea on a napkin while sitting in a restaurant:
One evening over dinner in San Francisco, I was struck by an irresistibly simple idea. What if any developer from anywhere in the world could create their own applications for the Salesforce platform? And what if we offered to store these apps in an online directory that allowed any Salesforce user to download them?
Whether it happened like that or not, the app store idea would eventually come to fruition, but it wasn’t originally called the AppExchange, as it is today. Instead, Benioff says he liked the name AppStore.com so much that he had his lawyers register the domain the next day.
When Benioff talked to customers prior to the launch, while they liked the concept, they didn’t like the name he had come up with for his online store. He eventually relented and launched in 2006 with the name AppExchange.com instead. Force.com would follow in 2007, giving programmers a full-fledged development platform to create applications, and then distribute them in AppExchange.
Meanwhile, AppStore.com sat dormant until 2008, when Benioff was invited back to Cupertino for a big announcement around iPhone. As Benioff wrote, “At the climactic moment, [Jobs] said [five] words that nearly floored me: ‘I give you App Store.”
Benioff wrote that he and his executives actually gasped when they heard the name. Somehow, even after all that time had passed since that the original meeting, both companies had settled upon the same name. Except Salesforce had rejected it, leaving an opening for Benioff to give a gift to his mentor. He says that he went backstage after the keynote and signed over the domain to Jobs.
In the end, the idea of the web domain wasn’t even all that important to Jobs in the context of an app store concept. After all, he put the App Store on every phone, and it wouldn’t require a website to download apps. Perhaps that’s why today the domain points to the iTunes store, and launches iTunes (or gives you the option of opening it).
Even the App Store page on Apple.com uses the sub-domain “app-store” today, but it’s still a good story of how a conversation between Jobs and Benioff would eventually have a profound impact on how enterprise software was delivered, and how Benioff was able to give something back to Jobs for that advice.
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As I wrote for TechCrunch recently, immigration is not an issue always associated with tech — not even when thinking about the ethics of technology, as I do here.
So when I was moved to tears a few weeks ago, on seeing footage of groups of 18 Jewish protestors link arms to block the entrances to ICE detention facilities, bearing banners reading “Never Again” in reference to the Holocaust — these mostly young women risking their physical freedom and safety to try to help the children this country’s immigration service is placing in concentration camps today, one of my first thoughts was: I can’t cover that for my TechCrunch column. It’s about ethics of course, but not about tech.
It turns out that wasn’t correct. Immigration is a tech issue. In fact, companies such as Wayfair (furniture), Amazon (web services), and Palantir (the software used to track undocumented immigrants) have borne heavy criticism for their support of and partnership with ICE’s efforts under the current administration.
And as I discussed earlier this month with Jaclyn Friedman, a leading sex ethics expert and one of the ICE protestors arrested in a major demonstration in Boston, social media technology has been instrumental in building and amplifying those protests.
But there’s more. IBM, for example, has an unfortunate and dark history of support for Nazi extermination efforts, and many recent commentators have drawn parallels between what IBM did during the Holocaust and what companies like Palantir are beginning to do now.
I say “companies,” plural, with intention: immigrant advocacy organization Mijente recently released news that Anduril, the company founded by Palmer Luckey and composed of Palantir veterans, now has a $13.5 million contract with the Marine corps for their autonomous surveillance “Lattice” towers at four different USMC bases, including one border base. Documents procured via the Freedom of Information Act show the Marines mention “the intrusion dilemma” in their justification for choosing Anduril.
So now it seems the kinds of surveillance tech we know are badly biased at best — facial recognition? Panopticon-style observation? Algorithms of various other kinds — will be put to work by the most powerful fighting force ever designed, for expanded intervention into our immigration system.
Will the Silicon Valley elite say “no”? To what extent will new protests emerge, where the sorts of people likely to be reading this writing might draw a line and make work more difficult for their peers at places like Anduril?
Maybe the problem, however, is that most of us think of immigration ethics as an issue that might touch on a small handful of particularly libertarian-leaning tech companies, but surely it doesn’t go beyond that, right? Can’t the average techie in San Francisco or elsewhere safely and accurately say these problems don’t actually implicate them?
Turns out that’s not right either.
Which is why I had to speak this week with Cornell University historian Louis Hyman. Hyman is a Professor at Cornell’s School of Industrial and Labor Relations, and Director of the ILR’s Institute for Workplace Studies, in New York. In our conversation, Hyman and I dig into Silicon Valley’s history with labor rights, startup work structures and the role of immigration in the US tech ecosystem. Beyond that, I’ll let him introduce himself and his extraordinary work, below.
Greg Epstein: I discovered your work via a piece you wrote in the Washington Post, which drew from your 2018 book, Temp: How American Work, American Business, and the American Dream Became Temporary. In it, you wrote, “Undocumented workers have been foundational to the rise of our most vaunted hub of innovative capitalism: Silicon Valley.”
And in the book itself, you write at one point, “To understand the electronics industry is simple: every time someone says “robot,” simply picture a woman of color. Instead of self-aware robots, workers—all women, mostly immigrants, sometimes undocumented—hunched over tables with magnifying glasses assembling parts, sometimes on a factory line and sometimes on a kitchen table. Though it paid a lot of lip service to automation, Silicon Valley truly relied upon a transient workforce of workers outside of traditional labor relations.”
Can you just give us a brief introduction to the historical context behind these kinds of comments?
Louis Hyman: Sure. One of the key questions all of us ask is why is there only one Silicon Valley. There are different answers for that.
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Google’s vice president of finance, has joined Postmates’ board of directors, the latest sign that the on-demand food delivery startup is prepping to take the company public.
Postmates announced Friday that Kristin Reinke, vice president of Finance at Google, will join the San Francisco startup as an independent director.
Reinke has been with Google since 2005. Prior to Google, Reinke was at Oracle for eight years. Reinke also serves on the Federal Reserve Bank of San Francisco’s Economic Advisory Council.
Her skill set will come in handy as Postmates creeps towards an IPO.
Earlier this year, the company lined up a $100 million pre-IPO financing that valued the business at $1.85 billion. Postmates is backed by Tiger Global, BlackRock, Spark Capital, Uncork Capital, Founders Fund, Slow Ventures and others. Spark Capital’s Nabeel Hyatt tweeted the news earlier Friday.
Happy to welcome Kristin to the board of @Postmates.
Great times ahead. https://t.co/nEqu3A2YkE
— Nabeel Hyatt (@nabeel) June 28, 2019
“Postmates has established itself as the market leader with a focus on innovation and route efficiency in the fast‐growing on‐demand delivery sector. Given their strong execution, accelerating growth, and financial discipline, they are well positioned for continued market growth across the U.S.,” said Reinke. “I’m thrilled to join the board.”
The startup has been beefing up its executive quiver, most recently hiring Apple veteran and author Ken Kocienda as a principal software engineer at Postmates X, the team building the food delivery company’s semi-autonomous sidewalk rover, Serve.
Kocienda, author of “Creative Selection: Inside Apple’s Design Process During the Golden Age of Steve Jobs,” spent 15 years at Apple focused on human interface design, collaborating with engineers to develop the first iPhone, iPad and Apple Watch.
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About 13 years ago I faced an excruciating decision: whether to sell my company, Pinnacle Systems, to a private equity firm or to another large public company. I felt that both suitors would treat my employees well (and I negotiated hard to make sure that was the case), and both offered a good asking price well above our value on NASDAQ.
After raising what at the time felt like my first child, born in my living room and nurtured into a publicly traded entity, I was ready for it to take its next step and for me to take mine. I ultimately opted for the strategic sale, but I left the process intrigued by what was already an evolving dynamic between private equity firms and tech exits.
In years past, stigma often accompanied private equity sales. I know I felt that way, even under strong deal terms. Plus, private equity exits were only available to companies generating substantial annual revenues and often profits, making this exit option inaccessible for many startups. Today, private equity buyout firms can provide a solid (and on occasion excellent) exit route — as well as an increasingly common one, accounting for 18.5 percent of VC-backed exits in 2017.
Private equity firms are investing in a broad array of technology companies, including highly valued unicorns, but also early- to mid-stage profitable and unprofitable companies that a few years ago would have been unable to secure interest from these buyout firms.
In addition, the lines between venture capital and private equity are increasingly blurring, with more private equity investments in tech, and several-late stage VC firms creating large, billion-dollar plus late-stage growth funds. Further blurring the lines, some of the late-stage VC firms are taking controlling interests in startups, a strategy typically associated with private equity. Recently, one of our portfolio companies received an investment from a late-stage VC firm that acquired a majority stake by providing liquidity to some existing shareholders and investing in the company, utilizing a strategy typically associated with PE buyout firms.

The rise of private equity buyouts within the tech sector presents a viable exit option for founders, given the reality that most startups won’t ultimately IPO. (According to PitchBook, only 3 percent of venture-backed companies in the last decade eventually went public.)
If an IPO is not a realistic long-term option, the remaining primary exit option has typically been a sale to another company (a strategic buyer, in venture parlance). However, in the past few years, private equity firms have become aggressive buyers of private companies, sometimes bidding as high as or higher than strategic buyers. With one of my portfolio companies, a private equity buyer placed the second highest bid ahead of all but one strategic buyer and helped raise the final price from the strategic buyer just by being in the bidding process.
Founders who find themselves in negotiations with strategic buyers should also reach out to PE firms to optimize the outcome. Silver Lake, Francisco Partners, Thoma Bravo and Vista are a few technology-focused PE firms, and PitchBook’s annual liquidity report lists other firms. Vista has been especially active, acquiring many technology companies, including Infoblox, Lithium and Marketo. Not all PE firms are the same, just like not all VCs and strategic buyers are the same.
Years ago, when private equity buyouts were typically only large deals, new management teams were almost always brought in to tweak the edges of already successful companies. Today, each private equity firm has its own strategy — some only buy large profitable companies, others focus on mid-size acquisitions and some only buy early-stage (typically unprofitable) companies, which brings us to the next point.
Even early-stage startups can explore a PE exit, especially if things are not going well
While most readers are familiar with private equity buyers at later stages, what’s new is the emergence of PE activity at early stages. These firms acquire majority stakes in startups that have only raised early-stage investments but are having trouble scaling or raising the next round.
After a buyout, these private equity firms typically provide value by adding the missing elements, such as marketing or sales know-how, in order to kick-start the business and achieve scale. Their goal is to increase the value of the underlying asset by augmenting founder teams with the buyout firm’s own operational experts, sometimes combining newly acquired assets with already existing assets to create a stronger whole, or doubling-down on promising products (while shedding less promising offerings) to unlock potential.
Typically, these PE firms then sell the company to another company (usually a strategic buyer) for greater value. In some cases, these early-stage PE firms sell to another PE buyout firm further up market. In some of these acquisitions, founders can maintain minority ownership in the company (though not a controlling stake), which they can carry through to their “next exit.”
Unlike PE buyouts at later stages, PE buyouts at the earlier stages are not usually high-value exits; they are mostly an avenue to provide the founders some return for their hard work, rather than the disappointing returns they can expect from an acqui-hire or, even worse, a shutdown. If negotiated correctly, a private equity deal can give founders an opportunity to play another hand to the next exit.
Few founders create companies in order to flip them. Strong entrepreneurs create companies to transform their missions into reality and positively impact the world. Steve Jobs said, “I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” An acquisition — particularly to private equity — may not have been the original goal, but it may fuel the continued pursuit of the founder’s mission. Or, perhaps it will enable the pursuit of a new and worthy mission.
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How should you feel to know your employer is far, far richer than Croesus?
As Apple CEO Tim Cook tells it — in a memo to staff, obtained by BuzzFeed News, re: yesterday’s news that the computer company Steve Jobs founded back in 1976 is now worth more than $1,000,000,000,000 — you should feel A) pretty stoked that your labor has helped achieve a significant financial milestone but also B) know it’s not a success metric to get hung up about because it’s the passion for innovation and creation (not the towering mounds of gold) that really counts and so C) please, after taking a moment, remember to get back to work.
Here’s what Cook actually wrote to Apple’s global “team” of circa 123,000 employees:
Team,
Today Apple passed a significant milestone. At our closing share price of $207.39, the stock market now values Apple at more than $1 trillion. While we have much to be proud of in this achievement, it’s not the most important measure of our success. Financial returns are simply the result of Apple’s innovation, putting our products and customers first, and always staying true to our values.
It’s you, our team, that makes Apple great and our success is due to your hard work, dedication and passion. I am deeply humbled by what you do, and it’s the privilege of a lifetime to work alongside you. I want to thank you from the bottom of my heart for all the late hours and extra trips, all the times you refuse to settle for anything less than excellence in our work together.
Let’s take this moment to thank our customers, our suppliers and business partners, the Apple developer community, our coworkers and all those who came before us at this remarkable company.
Steve founded Apple on the belief that the power of human creativity can solve even the biggest challenges — and that the people who are crazy enough to think they can change the world are the ones who do. In today’s world, our mission is more important than ever. Our products not only create moments of surprise and delight, they empower people all around the globe to enrich their lives and the lives of others.
Just as Steve always did in moments like this, we should all look forward to Apple’s bright future and the great work we’ll do together.
Tim
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Apple is preparing a couple of updating models of AirPods, according to Bloomberg. The popular fully wireless earbud-style headphones that Apple introduced last year are currently on track for a refresh in 2018 with the addition of a new version of the “W” line of chips that Apple created specifically to manage and improve Bluetooth-based connections between gadgets. The 2018… Read More
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