I’ve been in Mexico City for the last month and it’s felt quite convenient to settle into. Before I leave, I wanted to articulate what made it special and drop some photos.
Neighborhoods: I’ve stayed and stuck to mostly spending time between Condesa, Roma Nte, Juarez, Polanco, Reforma, and Centro. When some friends visited, they went to Coyoacan and Doctors but during the day. These neighborhoods likely represent a bubble of middle to upper-class Mexico with beautiful parks, delightful architecture, tight security, and upscale restaurants. The safety is likely thanks to an overwhelming police presence – you cannot go more than 4 blocks without seeing a cop car idling at the intersection or watching a pickup with armed police standing on the flatbed driving around.
Remote work: My primary motivation of living was to experience a new city and country that was in the same timezone as the US to make it easier to collaborate with the team. CDMX coffee shops have good wifi and have almost been engineered to enable remote workers. You can walk into a boutique shop like Blend Station or a chain like Starbucks and find other people also doing the same. Plus, there’s lots of different Airbnb’s which’ve been optimized for remote-workers as well. I’ve had friends from India & the US both overlap while I’ve been here who’ve arrived with the same goals.
Language: Even without speaking a beginner level of Spanish the experience has been natural though one was to live here permanently, learning the language would be non-negotiable.
Inequality: You know it exists everywhere but like in India the inequality can be much more felt in Mexico City which has made me reflect a lot more. You’ll see small children who’re trying to sell you candy or flowers right as you’re doing outdoor dining which can leave a sense of guilt.
Food: I’ve not been somebody who’s eaten a lot of Mexican food and as a vegetarian there’s been a plethora of options across cuisines including Mexican food. Some highlights on the sit-down end of the spectrum have been Expendio de Maiz Sin Nombre, Rosetta, Pujol, and Sartoria with incredible takes on their respective cuisines and associated desserts. Though my street side adventures were quite limited given my desire to have meat / non-meat not be cooked on the same cookware that’s a sizable part of the Mexico experience. I’ve also pleasantly surprised at the range of non-alcoholic beverages on every menu. And a list about food in Mexico would be incomplete without mentioning hot chocolate and churros which I could have every day. A challenge has been letting people know that bugs (ants, grasshoppers, etc) are not considered vegetarian to me. Here’s our list: Google Maps.
Exercise: The city is incredibly friendly to bicycles and running routes. There’s no excuse to not lace up and head out for the day. Plus, you’ll get to meet 100’s of dogs to play with every day.
Overall, would highly recommend remote working from CDMX if you’re considering it.
COVID-19 is somewhat straightforward to understand as an intellectual idea. There’s a new virus out there, it can infect you, make you sick, and you’ll very likely recover. However, as you start to experience symptoms it starts to become a very different experience. A rollercoaster of emotions and thoughts. I want to make a record of what my own experience has felt like.
I got back to India about 6 weeks ago on a Vande Bharath flight from SFO to BLR. It was a surreal experience to fly across the world with empty airports, no hot foot or entertainment on the plane, and being police escorted to a hotel to quarantine. It all passed by and I was back home to do what every other millennial is doing right now, live with your parents.
My parents run a small business which produces an essential commodity. Apart from a few people who can work from home, almost everyone in their business has to be physically present, including them. This meant, driving back and forth between two cities on a weekly basis. As I had recently come home, I tagged along with them for these journeys given I’m in a transition period in my own life and had time on my hands. We were aware of the risks of being out and about but weren’t really too worried as we were sticklers about wearing masks + face shields, sanitizing our hands, and maintaining 6+ feet in the instances where we had to interact with folks.
We did this trip 3 weeks in a row. Then on our last trip back, we all started falling sick one by one. Initially worried by this we began isolating almost immediately. However, we tried to keep our minds from the worst case scenario. Not just because the virus is a thread but more interestingly because testing positive comes with some amount of social stigma. We let a couple days pass and things didn’t really get better. I was of the opinion that since nobody had particularly bad symptoms that required us to go to the hospital we would just recover if we stayed at home for the next two weeks. Our fevers were mild, our SPO2 levels were not out of the ordinary, and there wasn’t serious bouts of sneezing / coughing. Plus, we were worried about rumors of local diagnostic centers marking people as positive because “incentives aligned”.
However, my sister insisted that we didn’t take this lightly and to get all of us tested right away. This is a point that I dwell on. I’ve read up so much on this. I knew it was the right decision to get tested right away, but I still managed to rationalize that we’d be fine at home without a medical opinion. I value having that outside opinion because we did get tested and all of us were positive.
Then came the first bout of despair, how bad could this get? Would we all recover normally? Would there be any long term damage? We still don’t know all the answers here but the next few days were filled with anguish and endless calls. Calls to family and recent contacts informing them, calls to doctors from across the country on their recommendations, and to our family doctor about our medication course and symptoms monitoring. Of course this also involved marking ourselves as positive in the arogya setu app (india’s COVID tracking app) and getting permission form the local municipal authorities to home quarantine.
We got started on some meds, taking lots of rest, and eating all the food the family began sending us. Now, a week in everyone is in positive spirits and recovering just fine. We’re now a little too happy that we’re recovering fine, buying us more freedom (likely) for at least a few months. Though very, very cognizant of the fact that re-infections are a thing.
Now come the interesting decisions we’ll need to make about continuing to travel regularly for work. What about in the neighborhood to go on runs? I, for one, cannot wait to go on a walk outside the house again. But what’s the signal we’re sending out there. Lots of decisions to make and we’re all making it up on the fly.
NOTE: THIS IS NOT MEDICAL ADVICE. YOU SHOULD GET TESTED FOR COVID IF YOU CAN AND FOLLOW NECESSARY TREATMENT. THIS IS A THOUGHT EXPERIMENT AT THIS TIME OF WHAT HAPPENS IF THE SYSTEMS ARE OVERWHELMED. ITS A SCRIBBLE.
I’m thinking through my thoughts out loud – please tell me why this is absurd to even think about.
One of the top ideas that’s out there is to flatten the curve: which means that we should try and load balance to avoid overwhelming our health care system. This includes testing and treatment infrastructure.
One idea I’ve been thinking about given following information / constraints is if anyone
1) under 30 starts seeing any symptoms and
2) are not known to be at-risk, when
3) the country is lacking infrastructure:
COULD it make more sense for them to start following protocol as if they’ve tested postive to manage from home instead of heading to the hospital and keeping beds and testing kits open for older/at-risk folks?
To thinking through whether this a bad idea or not, I’m trying to find the following info / answers / account for these thoughts:
clearly defined symptoms:
read about body aches, fever, cough, runny nose, chills, and some more
what pre-existing conditions make you at-risk?
find data on mortality / recovery rate for <30 y/o folks
what happens when you test positive for COVID 19 and you get checked-in to a hospital? what treatment do they follow? when do escalations happen?
in the countries where they’re turning away people from hospitals, what’s the protocol of things they’re asking you to follow? eg. drink lots of water, stay away from people, take x,y,z medicine which are available off the counter
by when should you expect to recover? If not recovered by then, how to inform the hospital and get elevated care?
the template for informing people you’ve been in contact with that you’re taking precautions and self-isolating
what if this springs people who don’t even have it to start taking precautions and social distance/isolate preemptively?
will it cause a mass panic / hysteria if people start getting messages from people about their safety?
I know a few young people who’ve had the symptoms, tried to get tested last week and couldn’t, went home – slept for a few days, some some fever & cold medicine, plan to stay isolated for 2 weeks, but feel like the worst is gone and are making a full recovery. Now, of course we don’t know if they had it or not, but it’s encouraging that they feel fit enough to stand up again. could young people staying at home even when sick save lives because nearly all of them will recover anyway assuming we have a protocol for when they escalate and head to a hospital?
Update: It looks like the Ohio Government is recommend this policy as well. and here’s a lot of relevant links to this idea.
Some thoughts on Christmas from a coffee shop. A lot of these are problems I’ve been thinking about or directly encountered.
International Visa Management
If you’re North American/European, this might not be as big a problem for you but if you’re not the process of getting visas is terrible.
If anyone is building a plaid for legal identity/visas, please save me from this hell of entering the same basic information, the set of documents, credit card information, references, etc.
Tourism across the world continues to grow and making this easier to unlock a whole lot more travel.
A key challenge here will be intercepting the monopoly of VFS over this process but do think it’s possible with a few countries to test a pilot with.
Notes/Documents + Task Management + Links
The context for tasks resides in documents. Documents are filled with links. Links are websites or resources/assets in other apps. Making it all work together I think remains a very real opportunity.
So far, dropbox paper & notion come closest to the best. There’s one or two smaller co’s (Roam & Pine) which could potentially become the defaults here.
P.S I want to write a longer note doing some research on the future of productivity
Privacy & Security Management
I’m relatively paranoid and more people should be, especially in the wake of multiple scandals. However, it is cumbersome and very hard to get new people started on the path of trying to secure themselves and do any kind of ongoing monitoring.
Here’s a list of some things I’ve done and I’d love to see tools to simplify this:
Phone Numbers: I maintain a public and private number to reduce attack vectors
Credit Cards: Use privacy.com to generate credit card numbers for payments on shady websites.
Settings on phone / laptop: around notifications, location, sharing, background refresh, camera/microphone, ad limiting etc.
Regular audits of platform apps: removing unwanted apps, disabling web & location tracking on google, etc.
Password management: Continues to be a challenge to get users to adopt. (Either this needs to be done by OS providers or we need to get rid of passwords completely and move to magic links + otp verification)
VPN: Quite valuable for somebody who uses public wifi’s frequently.
One co. that’s interesting for some parts of this is Jumbo which launched earlier this year.
Venture Debt Financing in India
Spending time here in the last few weeks here, there’s a clear opportunity to build a fund focused on venture debt in India. There’s only a companies focused on this (innoven, alteria) and none of traditional banks have any plans to doing anything in this space.
Especially in a world where’s there’s more D2C & SaaS companies being built in the country, the demand for this product is only likely to continue to grow.
OS for SMBs
Growth for small businesses, especially in traditional sectors, remains hard as it’s hard to operationalise and become process driven. In a world where they are not used to paying for SaaS subscriptions you’d likely need to make money in adjacent ways (first: financing) but better tooling
I think of Square doing this well for retail companies (stores & restaurants) but think there’s an opportunity to build in 100’s of other kinds of small businesses including real estate, real-world 1-3 person shops around specific skills (plumbing, furniture makers, etc.), freelance tech talent, etc.
Enabling the sustainable GPD growth via better ERP tooling and process management (eg. Bringing in better metrics visibility, okr accountability, task delegation etc.)
& Freelances?: do think there’s a some overlap with this and helping freelancers manage themselves and their businesses.
Home Financing Products
Homes are getting harder to buy for a variety of reasons in the cities that people want to live with.
Additionally the primary way of purchasing a home remains the 30 year mortgage. I say this caution but do sincerely believe there’s likely many places to innovate here. We’re starting to see the rise of equity sharing/downpayment assistance, fractional ownership, rent-to-town, rent/mortgage splits, etc. and am excited to see the adoption of some of the above services but also many new ones.
Family Account Management
Over the last couple of years, I’ve moved to all things Apple: from music, to storage, to devices, for the entire family as it’s really helped do account management much better.
However, it’s still complicated to get family members onboard on new services, organise the billing, and manage the subscriptions.
I think there’s an opportunity to build an Okta for Families. One that I would pay for but also could be a great way for subscription apps to increase conversion & retention. This one’s a personal problem more so than anything else though.
In the last 3 months I’ve now subscribed to more than 10 Substack newsletters which has me thinking about so many different issues & opportunities. Brings back 2016 memories of medium publications and mail chimp newsletters.
How do you better read the subscriptions without cluttering your inbox. What about unsubscribing and discovery? Does it make sense to integrate with emails clients, potentially? All TBD, but. if personal audiences are having a moment right now then it seems like an opprotune time to solve customer problems here.
If you’re building any of these, let’s chat firstname.lastname@example.org. I’d love to help, if relevant, and invest 🙏🏽 More about me here
B2B Marketplaces around commodities
Contract management tooling
Real estate transaction management
Better financial management at startups: budget, planning, forecasting, ap/ar
Professional feedback & references library for personal growth (analogous to medical records which can be seen by any doctor)
Artist discovery -> TikTok now for music. What other creative industries mighty we be able to improve new talent discovery in a non-direct way.
Over the last couple of months I’ve moved away from leading a cross-functional team to doing IC work remotely (will be a separate post later). As I’m a little more distant from the business (geography & nature of what I’ve been spending time on for the last month or so) I was trying to articulate for myself why I believe Opendoor’s succeeded so far and why to be bullish / bearish about the co. especially as I exercise more options (commit $$ to the co). Harder to share what’s still to be done & what I think the challenges that remain are, I found this a very useful exercise. Particularly so as I’m spending more time with new companies and what’s the must solve hypothesis for them at their earliest stages.
Please note: This is my opinion based on observations. Sharing this but redacting parts that might be considered sensitive.
Customer experience / Customer focus. NPS – word of mouth
Product marketing – “sell your house hassle free”
Complex ops management
Analytics – ops, pick markets, etc
Home entry: Text to enter
Ability to launch markets
Recruit A+ talent. Constantly.
Timing & necessary conditions:
Low interest rates
Macro up cycle
MLS data open with history of transactions
Where the business is yet to succeed:
Adjacent Services (sort of already done but more broadly)
Survive a downcycle
Competition (welcome, public company)
Why I’d still bet on opendoor:
Huge, huge, huge market.
Truly a better experience for customer
Margins at scale
Brand equity & trust in the marketplace
Internal operations tooling ?
It was also an opportunity for me to take stock of where I think I excelled and had the greatest impact.
My impact at Opendoor:
Solving complex problems at the intersection of technology and operations and regulated businesses. Always driving to simplify and using software and ops processes to drive better outcomes
I’ve been a general purpose human more than anything else
Had the chance to original support team in Phoenix: 0 -> 1 -> 5. Original playbook, scripting, tooling. Today team is 50+ people.
Data analytics + bots to drive operational leverage
Brokerage: spec’d & lead building of transaction management platform & ops playbook for compliance in 1st state (AZ). Gold star from regulator. Playbook scaled
Canonical work: winding down Opendoor Mortgage 1.0 (beta), strategy for 2.0 and scrapping, core team to launch 3.0. (Mortgages @ Opendoor needs to be a book, lol)
lFor 3.0: Leading cross functional growth team. 3 eng, pm, 1 pmm, 1 CX ops, and 1 analyst
As a part of my nomadic journey across the world… I was recently in Whistler, Canada. While its usually known for its world-class slopes and pristine nature, one of the highlights was an immersive experience called Vallea Lumina. Initially, I wasn’t sure what it was or what to expect as it was marketed as a multimedia night walk but signed up anyway. It helped that there were little postcards about it all over the city. I didn’t expect much but who wouldn’t get excited by the word multimedia.
Selecting the last show of the night (9:40 PM, I think), I boarded a bus to get to what looked like a trailhead. At the entrance, you’ve got a solid camp vibe with s’mores and hot chocolates for before you get started (or at the end). It took about 45 minutes to walk through something of a cross between the museum of ice cream, a hike, an EDM party with the themes of camping (lights and music), and mystery. There was a projected skit, a preserved tent with artefacts, a morse code challenge, campfire music, talking trees, and immersive lighting. It turned out to be a unique and pleasurable experience unlike any I’ve experienced before and it was worth every $$.
I think we’ll see many more experiences like this that are very interactive and novel. While people might scoff at the idea of the company that did the museum of ice cream raising $40mm, I’m quite bullish about experiences like that, Vallea Lumina, Dismaland (yes, I get it), and more. There will no doubt be so many new experiences that people of all ages do in groups together and I’m excited for all of it — whether out and about in the world or further into your computing devices(eg. Sandbox VR*).
Whether these are to be one-off co’s that are similar to art installations or true venture-funded companies is TBD but this location Vallea Lumina also appears to be a good business. $40 pp and 600-800 people per night on average is what I heard from one of the people manning the shuttle buses and it increases as the sunsets become earlier. This though does get me thinking what’s Disneyland 2.0?
Some of you might be familiar with a monthly hiking group that I organized for most of 2018. As a part of organizing anything you tend to get a good amount of requests, comments, and questions. For the hiking group, one of the common comments / requests has always been: “this hike looks so hard, could we do a easier one.” Sometimes I would pick a shorter one or one with an easier elevation gain and sometimes I’d be like come anyway and if it gets too hard we can always turn around earlier / cut across to the other side of the loop. When choosing to do the latter, I don’t think we’ve ever turned around. The 1-2 people who were anxious challenged themselves and always pushed through to the end. Something I’ve always been fascinated by: giving yourself an escape hatch but not giving into it.
This past weekend, I was in Whistler with plans to checkout Garibaldi Lake. The hike is pretty daunting: 20km and a ~900m elevation gain. However, there’s another way to do it: go all the way up to Panorama Ridge and enjoy the lake from above. Only problem: 30km and a ~1600m elevation gain. Having not hiked for most of this year, I was anxious to even do the former but knew I could make it if I pushed myself. But getting to Panorama Ridge seemed too hard to even think about let alone committing myself to making it to the top. But the views from the top were too irresistible to not try. You know where this going…I gave myself the same talk: I’ll do the trail to the lake and at the fork between the two, I’ll make the decision on which way to go. I could choose to only do the lake or if I was feeling comfortable — I’d go all the way.
I ended up going all the way. It makes me think about two important things: splitting daunting goals into smaller ones and giving yourself an out (but rarely using it). Both have tended to be helpful tools for me. Though the cynic in me always wonders why I need to play these little games with myself but hey, it’s worked well?
How do you approach challenging tasks. Do you ever find yourself with some some tricks too?
For some time there have been Indian companies building SaaS products and selling it across the world (Zoho/Freshworks/etc.) but we’re now starting to see global companies thinking about how to sell and price their products in India.
While India’s nowhere near the next top destination for selling SaaS in terms of short-term revenue opportunities, rough ordering being the US, EU, ANZ, then rest of the world, it must be falling on folks radar to build a presence and more so a brand here. If India’s Slack and Segment are indeed Slack and Segement then there’s lower likelihood of a local company to having fertile grounds to build solid foundations in a relatively incubated fashion which could then leverage to compete with across the world.
What’s gotten me thinking about this is stumbling upon Slack’s India pricing. If your company is located in India, then you only pay 40% of their regular plans (60% off!). That comes out to to about $3.2/mo or about ₹220 per employee per month or ₹2200 per employee, annually. Even at Slack’s margins I cannot imagine this being “worth it” so to speak.
I look forward to seeing how this plays out in the next couple years. In which sectors do companies take the market in India and if Indian which markets do they take across the world. I have hunches on how this will play out but look forward to watching it closely.
This has roughly been my take away from the last week where I’ve been in and out of the hospital 🏥 on what I need to do to deal with my situation but also most health related ones:
Last Saturday night, my body broke out in rashes without an apparent cause. Something that I had never experienced before. It was annoying at first but eventually turned painful. I barely slept over the rest of the night attempted to temper the sensation by scratching my burning body.
On Sunday morning, we went to the hospital and got some shots for an allergic reaction which provided temporary relief.
By Monday, my body was going crazy and once again I felt extremely fatigued. Once again, I was back at the hospital getting more shots still treating it as an allergic reaction. Only this time, it made things worse.
Yesterday, Tuesday, I woke up with my entire body red in rashes and unable to look at myself in the mirror. Back at the hospital again, the doctors were beginning to suspect more and ordered many tests and then gave me more shots. I waited for the test results to arrive which would give us clarity on whether it was something worse (viral infection, bacterial infection) or still something more benign, an allergic reaction. By the late afternoon, the test results arrived and much to my relief the doctors went back to suspecting just the latter: an allergy attack. Specifically, being allergic to food colouring and certain additives combined with my body having a very high IGe levels (~388 vs the normal cutoff being below 100) which roughly translates to when you have a reaction you’ll have a severe one. What made it worse was likely a low immunity due to poor sleeping and eating habits, and being in a new environment.
The immediate change that was recommended was to eat only home-made food for the foreseeable future until we confirm the hypothesis and allow my body to heal.
However, the long-term recommendations from the doctor aside from double-checking for certain ingredients was to 1) ensure I sleep enough, 2) eat healthier (and at home), and ) exercise regularly, to lead a healthier life with reduced chances of allergy attacks in the future and better chance to fight them off.
Of course, I had another new reality about myself to live with but as I read that part of the the doctor’s advice on my way home I couldn’t help but sit astounded at the magnitude of the impact doing those three things have on one’s physical and mental health.
The advice sounds so simple but are relatively hard to follow. One part of me worries that the reason it is so hard to follow is because it is so simple. So easy to dismiss while looking for a more complex ways to achieve healthier outcomes. This week’s episode was a great reminder for me that sometimes the best advice is the simplest and must try hard to follow it.
As for me, I’m on medication this week and next to kickstart my body again and have been advised to only eat home-cooked meals. Excited to be back at full-health again and getting better at being looped into a healthier routine.
Also, I feel so lucky to have been at home while this happened because I am not sure things would’ve been so smooth without the support of my parents.
When somebody mentions “audiobook” there’s a high probability you’d probably think of the Amazon-owned entity, “Audible”. I, too, did for the longest time. I didn’t even think anyone else offered audiobooks. Plus, I’ve been on an Audible annual subscription for about two years now. Tweeting on something related to this, Jackson tweeted back basically saying: Scribd > Audible.
Scribd: My last memory of this site wasn’t much. My memory extended to needing to upload a document to get credits which you then used to download a different document…and it not having a great interface. That was probably back when I was in college. I didn’t know they did anything else. Visiting their website, it looked like they’ve added significantly to their offering: Unlimited books & audiobooks for $8.99? Plus a clean inteface? I’m intruiged.
Essentially if I read more than 1 book a month it was cheaper than the Platinum Annual plan (~$9.5/book). Plus, it would give me the flexibility to abandon any books I didn’t like. It made sense to sign up.
I signed up for the service last month (Jan) to test out the service and test the depth of the catalogue. About 70% of the titles I had previously purchased on Audible were available and the same with the next 10 titles I had hoped purchase, 7 of them were available. Good enough for me to switch behaviour and potentially unlocking some latent demand to consume even more…maybe more than 1 book a month.
Hence, I didn’t renew my subscription to Audible with the plan of using Scribd + purchasing any titles it didn’t offer directly from Amazon. The only downside to this remains not owning the title and being locked into the subscription for as long as I’d like to use their audiobooks — not dissimilar from the expectations you’d already have from subscribing to a Netflix.
If you currently subscribe to Audible, I’d encourage you to look into Scribd (#not-an-ad). They’ll even throw in an annual subscription to Pocket & Blinkist.
All of this got me thinking a bit more about (non-music) audio in general. Here’s a loose collection of links/unstructured thoughts.
Audio drives consumption. Voice is the complement that drives creation.
We’re seeing audio become more and more mainstream as potentially the next big platform. We’re already seeing the growing numbers for increased consumption of audiobooks and podcasts and could extend further.
Audio – Demand:
One part is no doubt driven by the growing popularity of AirPods – personal consumption. See “AirPods Have Gone Viral” – LINK (High visibility, social signalling, and something different). “AirPods Are Now One of Apple’s Most Important Products” – LINK
Another part via the in-home voice assistants: Alexa, Siri, Google etc. LINK, LINK
Growing podcast revenue proxy for increased demand from consumer. LINK Efficacy of listening: NYT Op-ed LINK Industry report on Audiobooks LINK.
Dive deeper into Sirius to understand more about the biggest audio platforms of yesteryear: radio. Radio is a $40b ad business. LINK What’s the transition here. Maybe there isn’t one Sirius bought Pandora…x-sell users and maintain base?
Voice – Supply:
We’re also seeing an increase in creation tooling eg. Anchor acq Spotify (Podcasts) and Voiceflow (bots).
More picks and shovels will be built. including ad tooling, analytics, content moderation, user verification, etc.
As all of this happens: owning exclusive content and apps (skills) will start to become more and important. Ben Thompson (aggregation theory) has more which touches on this topic in his post about Spotify acquisitions LINK.
Audible has Originals already. Spotify has Gimlet. What’s the equivalent for Scribd?
Are original audiobooks similar to super in-depth podcasts like Hardcore History?
Would such titles ever make it to being in a book format? Will they become more interactive: either with the screen as the second medium or via interactions?
Certain skills will be available on one device and not another. I cannot find any good examples of this right now.
Will we see more dedicated production houses? Is Serial an equivalent to Game of Thrones for HBO? How many more podcasting production houses will we see?
There was the crazy $500mm deal for Howard Stern back in 2004 LINK when he joined Sirius. There’s Joe Rogan. Who’s next? Will they go to a platform?
v1 is most obvious here: a social network for audio books (a la GoodReads) or for podcasts (a la Breaker).
v2 here will be native to the platform itself: For eg. TTYL (ex-UCLA folks) are attempting to build audio social network and Chai (ex-USC folks 😏) building voice chat for teams.
How will these v2 networks interact with the supply not from friends?
What’s after this? Will we see existing networked platforms build here? Twitter/Fb/Snap/Google/etc?
If you have interesting links on the audio space and/or are building something is this space, I’d love to chat: email@example.com or @varadhjain.
In H2 of 2017, at Opendoor we encountered a problem with came with a small threat: it could force us to shut down a market we operated in (low probability) but not nailing it might potentially disrupt or pause operations in all other states we were “live” in should it not be solved. It had to be a cross-functional effort between the brokerage, EPD*, and compliance teams to solve.
I stumbled upon the project largely because I think nobody else had said signed up for it 😬. The story of this project deserves a post in itself but the project ended up achieving its goal, against all odds. Given various circumstances including needing to staff up resourcing quickly, a hard problem, and a looming deadline, in classic Opendoor fashion we retro’d on why we thought the project had succeeded.
I think applies to any project whether it be for yourself, within a company, or even the early days of a startup. It reminded me a lot of how things were when all of us on the Polymail team were living together and doing YC in the summer of 2016.
Clarity – helps align everyone and convince people to join. Simplify how you talk about what you’re doing.
External Deadlines – force prioritization and a ship. (of course there’s caveats here)
Enthusiasm – this sh*t is hard, be excited for it and find amazing people to work with.
Tailwinds – always be able to answer the why now.
People, people, people 💙
This one turned out to be one of my favourite special projects at Opendoor because of the people I got to work with and learn from, the ownership over the problem, the ability to have a meaningful impact, and learning one more pillar of business complexity that we have. Plus it gave me a chance to do what I love doing the most: managing the product and the operations.
The project also ended up having a much larger than our initially scoped impact as we, hi Tim, Visnu 👋🏾, built a brokerage specific transaction management product (Broker Admin), and sped our path to move to our own contract management software (HelloRito) at Opendoor.
Two years ago, I had a deadline hanging over my head to find a new job and renew my visa. Two years ago, I walked into Opendoor SF for the first time with a new job and mostly afraid of how I’d fit into a 200-person company having just wrapped up an adventure at a company of just 4.
It’s been almost 2 years since I joined Opendoor and what an incredible ride it’s been. Looking at my notes from Nov-Dec’16, here’s the story.
Starting things is my default, whether it was thinking about how to capitalize on the fish wire craze in middle school or starting companies with friends after college. So when I left Polymail after we raised our round post-YC, with no plan, the first thing to do was figure out what should I build next. I spent most of October 2016 thinking about would follow. My notes/sketches show me all the things I thought were interesting: another productivity app 💌, a food-related consumer brand, something blockchain-related, a smart factory, and new retail experiences.
While I was dreaming about the next big thing to build, I also had a constraint—my visa status— that I hadn’t fully grasped the impact until an international student counsellor at UCLA reminded me, in November, that I had under 90 days left on my existing F-1 visa. I had only until Jan’17 left in the US unless I found a job that could sponsor my F-1 visa’s STEM extension. Because this threw a wrench in my plans to start something new again, I needed to find a job (and quick).
In general, job searches aren’t a particularly fun experience but I got started on mine. Back when I initially left Polymail I emailed a few folks asking, “If you see something interesting, let me know” but it was time to ping people again. I didn’t know what role I wanted…I didn’t have any specific career goals other than being entrepreneurial and having an impact. As I thought about roles, I had experience and was excited to work on products, analytics, and growth. However, a role itself didn’t seem like the most important pillar when looking for the next opportunity. Instead, I established criteria of what I thought was important to me knowing it would help me make a decision. I had narrowed it down to:
Joining a full-stack startup: Having grown up around operations heavy businesses in India, I wanted to spend time working on a project that would have the whole stack—build the software and use it too.
Talent & Culture: I wanted to work at a place where people I knew and respected worked. I wanted to learn from them.
Scale: I hadn’t worked at a place yet that found product-market fit, scaled, and needed real management. This was something I needed to experience first-hand. Reading books or medium articles were not a substitute here.
There were a bunch of companies with interesting roles, but nothing really matched all three. Serendipitously, Vedika, my sister, who was then working at Stripe told me she swung by the offices of a hot new startup where her friend Logan worked at a place called Opendoor. I looked up the company and at first glance, it appeared to meet my three criteria. On LinkedIn, I noticed that I knew a few folks who worked there, including Simon who I had last met in NYC when he was fundraising for his company at that time.
Some backstory: Simon and I originally met in 2014 when he was working at Robinhood doing PR and I was running LA Hacks where the founders ended up showcasing their app for the very first time publicly. You could say the demo was interesting—ask him about it.
I swung by the office at 116 Montgomery on a weekend to meet with him. Once there, he introduced me to another PM who was also working the weekend and left us for an impromptu interview…surprise, surprise. To say that the interview didn’t go well would be an understatement. I was later told that the PM thought I was smart, but also thought I spoke too quick. I told him that if the PM I had met wasn’t interested in the next step, I’d still be interested in other roles. He referred me for a different, and more analytics-focused, role. I needed my visa and time was running out. I thought to myself, “Let’s get the job, get the visa renewed, and then see what to do next. I likely won’t last long at a company so big for more than 3-6 months anyway, but at least I’ll have my visa.”
The referral worked on getting an email back from Jac, a recruiter. We spoke on the phone and she sent me a take-home assignment which seemed straightforward enough to do.
One week later, 22nd of Nov, I had somehow forgotten about it in the midst of preparing for a slew of other interviews. I remembered only after I finished the on-site I had that day down in Palo Alto and decided to head to the Stanford coffee shop get this thing done before the end of the day. I finished by around 5 PM, phew. However, given the rush to finish, I didn’t expect a callback. Surprisingly, I heard back and soon found myself scheduling an on-site.
Even with a few offers on the table and the deadline for my visa continuing to approach, I wanted to hold out for Opendoor. Less than 48 hours later, I received a call back telling me more about the offer and the role. However, it came with a hurried deadline and a compensation package that differed drastically from the others. Pay didn’t make it onto the list because it was more of hygiene criteria as opposed to one you could pull the trigger based off of. This would be a bit of a bullet to bite but I was genuinely excited about the company which had satisfied the criteria I set out with and had the opportunity to have a big impact though.
I called back and said, “I’m ready to do this”. My boss-to-be at that time, Ryan Johnson, recommended coming in the next day.
So on Dec 4th, I showed back up at 116 New Montgomery to start my first day at Opendoor. The first project was some product discovery work: call customers and see if they were interested in getting financing. Oh, boy! This was a sign of things to come.
Reflecting two years later, I’m grateful I made the decision I did. I’m lucky that the criteria lead me here to find each of three things I was looking for but also gave, and continues to give, me so much more. Also, the roles basically didn’t matter.
Full-Stack Startup: Opendoor really is a technology and operations business that builds software end-to-end and uses it too. Its fascinating problem set to have an opportunity to take on.
Talent: I’ve gotten to work with people I know, and made lots of friends with people I work with and respect. I’ve gotten also to recruit some amazing folk to come to join us too.
Scale: Opendoor has continued to grow and be successful and it’s amazing to work at a place where we’re impacting the lives of thousands of people every month during the most stressful transaction of their lives.
Thank you, Laura and Saige reviewing early drafts.
When on vacation a few weeks ago I was reflecting on what are some things I love about Opendoor and Transparency as a value rose to the top. Transparency has always seemed like one of those things that’s a no-brainer to follow and I’m grateful to see the steps we’ve taken at Opendoor to put it into practice. More so as a recap for future me, I wanted to outline some aspects of it.
Transparency can be encapsulated into one of our “5 Core Principles”: Build Openness
Productive communication depends on a foundation of trust and goodwill. Approach difficult conversations with curiosity. Avoid hearsay, passive aggression, and snark. Give feedback early and often.
Some activities that enable transparency:
All-Hands Q&A: Ability to ask the leadership team questions that will be publicly answered even though the questions itself can be anonymously asked.
Windows: I didn’t realize the impact of windows until we moved from moved offices. Initially, all the meetings rooms came with frosted windows which added a strange layer of secrecy that felt unnecessary. Within a few weeks of moving in our workplace team unfrosted most of the meeting rooms barring a few which are in the corner of recruiting and legal, and a few private rooms which are understandable.
Public Calendars: Everyone can see anybody’s calendar by default. The onus is placed on the person to make an event private when needed. It also allows for easier scheduling of time with co-workers.
Slack/Company Updates: There’s a healthy default towards posting messages in public channels as more than half the messages are read in public channels. Weekly Update and retros for most teams publicly shared(email and to #meeting-notes)
Documents: Not everything is searchable but if you come upon any link it’s likely that you’d be able to open it without needing to request permissions.
Metrics: Most metrics are now hosted on an analytics portal that everyone can access. Additionally, every morning a performance report of the business goes out.
Feedback: Various channels of customer feedback including reviews, NPS, twitter mentions, and more are automatically posted to slack channels which showcases the impact and experience of the service we offer. Additionally, there’s quarterly feedback from managers to direct. reports.
Financials: All numbers are presented to the entire company which exposes everyone to the ups and downs the business constantly faces. What’s been impressive is that even as we approach a 1000 people this information is held in the confidentiality that it’s shared with and my sincere hope is that this never changes(until the company goes public of course).
An Open-Mind: honestly, this is the real secret. We’ve got an amazing team.
TotalRewards/Compensation: Total rewards are still very hard to understand and I think we’ve gotten pretty good at this now. What makes it more complex is things like what’s the liquidation preference from the latest round, how much is my equity worth if to company exits at these 5 different valuations. I love how we’ve taken steps to create a rewards packet which better outlines this.
There’s transparency for transparency itself but it also allows for tangible value. A few upsides:
It helps builds trust much faster across the organization.
It helps collaboration happen faster as folks are exposed to more information earlier. It also allows ideas to flow across the organization even when people are not in the same business or functional unit.
It allows folks to have less postured conversations and as our core value describes, approach challenges conversations with curiosity as the information about what happened has already been shared.
It allows for a stronger muscle to handle organizational thrash.
It also allows for a stronger muscle to handle a few bad months or years as we’ve seen ourselves bounce back. In my opinion, this helps with talent retention.
Information Overload: As we get bigger availability of constant streams of data vs. synthesized information that’s most important to you might become a challenge. I’m curious on whether there’s a software solution here: AI for notifications.
Criticism: More people can be critical of other people’s work as you can see the short/medium term volatility.
Transparency vs. Oversharing: can introduce people to the sausage making which can be a bit hard on new employees & those with only a few years of experience.
There are some things you likely cannot be transparent about such as legal, recruiting, firings, etc.
What I think we can still improve on:
Context: allowing for a stripe-like email system so that most messages are available publicly. Most messages are still sent via email/DMs, especially as you go further up the organizational structure.
Salary Information: While there have been big strides mad here: I still have a desire to have all comp be on a public spreadsheet though I can understand why no company might ever do this.
Reducing Rumours: though I’ve never been at a company of this size and everyone tells me this is the least they’ve seen of anywhere else. I am definitely guilty if this too. The onus here primarily falls on the individual.
Overall, I think it’s very valuable and gets me excited about Opendoor. Future Varadh looks forward to sharing specific stories. In the meantime, I’d love to hear your thoughts about transparency.
At Opendoor, there’s a healthy default towards transparency. While we are a Slack-heavy company, we still use email a good amount–especially for communicating with external parties. However, email and transparency aren’t something that goes hand-in-hand, unless you’re Stripe III. Luckily, BCC can be used to build openness and keeping relevant internal parties in the loop when emailing external parties. I never really used to BCC or get BCC’d until I worked here but now it’s become indispensable. That being said, getting BCC’d or BCC’ing somebody has also become one of my biggest fears.
The first companies that come to mind as one thinks about users as the gateway into an organization are Dropbox and Slack. While their individual mechanics are different, they’re very good at getting users to join orgs that then pay. In addition to building a 10x better product, they have the strong brand & community that it takes to be installed on day one of a new org; something which is incredibly difficult to nail down and continues to be a holy grail of the fabled land & expand distribution strategy.
Dropbox: Win the user in single-player mode and then become the first option as a user thinks about a service for their org (multiplayer mode).
Slack: Win the org on day one because there’s zero friction to start on multiplayer mode. Get users as the company’s get bigger and people move companies.
(More on Single-Player vs. Multiplayer here on CDixon’s blog)
iMessage is a default messaging service on top of SMS on the iPhone where your messages to a sender appear in blue bubbles as long as the other person has an iPhone (yes, even if you don’t sign into your iCloud). If you message a sender who doesn’t have one, DISASTER occurs–your messages are now in green and you think of the counterpart differently. This stark call out of bad behavior in iMessage is probably one of the one biggest reasons of why people don’t move off of an iPhone. It forces you to think about the pain that the other person might feel when their message goes out in a green bubble should you make the switch away from an iPhone; making iMessage one of the biggest moats that the device has. The blue bubbles of iMessage help justify owning an iPhone as it’s probably your most used app.
One of the hardest things for me to do is playing catch up.
This doesn’t refer to something new that I am curious about or want to become good at–it’s about catching up on things that I used to be good at or something I have lost momentum on. I have always felt a sufficient drive and enthusiasm in making the time to learn, practice, and execute something new. It’s been much easier to stay in the mindset of, this isn’t something I want to be good at any more” (but not always more on that later).
A few weeks ago, I saw an interesting billboard by Wells Fargo near one of the first few exit ramps of the freeway after crossing into San Francisco via the Bay Bridge. The billboard illustrated Wells Fargo’s latest consumer experience/offering – Card Free ATM Access. I was excited because this was one of those product ideas everybody, including me, has probably wondered, “Why it isn’t this a reality yet?”
I believe the first time this thought crossed my mine was right after the time I had encountered Venmo in college. I questioned why everything didn’t just work from my phone – the washing machine, the doors, the lights, the vending machine, the ATM, etc.
I could barely sleep last night so I decided to head to my desk and do a fun project: How much money would you have today if you had purchased the $AAPL stock instead of buying the Apple Product? I do recognize the bias of picking the company that has generated the more shareholder value in the last decade but this is still fun to think about.
There were some really fun/good replies to this tweet that was referring to how recently funded startups but super expensive chairs. The one reply that stood out to me was a link to this post written by Tren Griffin on Things [He’s] Learned From Fred Wilson. #5 on that post talks about how expensive equity capital and the importance of not spending it on expensive toys for your company. He adds another way of looking at this, through a Buffet-ian lens. I have highlighted it below. Overall, the paragraph resembles a similar conclusion, from a personal perspective, I came to a few weeks ago.
Being somebody who’s curious in general, likes to tinker, and always wanting to play with the newest things I end up messing around with a lot of new software, apps, hardware, and gadgets. In general, I think this is super valuable, especially if you want to make build products/make investments as the earliest stages since a lot of new things starts as toys or not mainstream, by definition. Most of those things are usually just time-consuming and cost a marginal amount of money from your personal cash flow except for gadgets. The latest gadgets *usually* don’t end up being the significantly more product than the gadget that they are replacing: the newest iPhone, newest MacBook, Camera, drone, GoPro, wearable, you get the idea… So instead, what I’m experimenting with is: If I think I would’ve bought this item before doing this experiment, I’m going to buy the equity into that company instead. If the stock is not publicly traded, I’m going to buy an adjacent/related stock that is. Not just applying this to gadgets but any ancillary spending that’s not food & transport. If I do need to make the purchase, I’m going to try and match the spend with an equity purchase. Also, if a spend a LOT of time on the service, that to warrants buying equity in the service. In the two months, I’ve bought a few shares of AAPL, TWTR, TSM, LULU, JWN, FIT, SQ, ZEN
The most obvious outcome is that I, likely, own assets that don’t depreciate as fast as the goods I would’ve otherwise. I hope to god that is true because if that isn’t true that would really suck.
Also, I’ve never really traded public equities before this but I think I’ll learn some things about the company and how others (public/bigger funds) thinks about these stocks since their motivation is obviously very different from mine. The reason for my purchase was just intent to buy/interact with their goods and its possible that good products/services (I like) ≠ good businesses (the world values). Looking at things retrospectively should also allow me to build a better filter for instances, in the future, that need independent thinking. I may also be able to evaluate what kind of returns some of the toys/services built by public market companies, that I interact with, have. It’ll also, over time, let me track what structural changes have happened in the industries they operate in .
Again, the main motivation here isn’t extraordinary financial returns because this would be too easy of a way to make money, and anything that is easy has its advantages to competed away as Howard Marks writes here. Additionally, in his words this is a classic example of first-order thinking. I do want to use this as a way to spend less, and skim over annual filings to become familiar before deep diving in the future.
Disclaimer: I am not giving you investment advice of any sort. This is just an experiment I am doing for myself.
In the world of startups and entrepreneurship, we, almost religiously, believe that if we work hard, work with talented people, and get traction, then we’ll come out “victorious”. Given the general optimistic nature of being a founder, when looking forward, we tend to brush the uncertainty under the rug and assume that outcomes are fully in our control. So, when things don’t play out how we imagined it would, we are often left in despair and confusion. It makes it harder to wake up the next day and need to ask ourselves, “How could this happen to me (yes, it’s personal) when things were looking all up and to the right?” I’ve particularly gone through this exact cycle more than once and each time I learn from it. A place where I like to draw inspiration about how others deal with this is by watching elite sportsmen and sportswoman compete. They train their entire lives for something that might last from 10 seconds to a couple of hours. Even though you can be the best and do everything right, you sometimes still don’t win. Yet, you have to pick yourself up, deal with it and go at it again.
Last September, I had the opportunity of spending a few hours with a family friend who had been in the banking industry for over twenty years. I think I met him a once growing up but this particular trip to New York allowed me to spend quality one-on-one time with him. He shared lots of good advice and it was a pleasure to sit across from such a knowledgeable, yet humble, individual. I tried to absorb everything. However, there was one thing he said that resonated with me more than anything else, “People almost always leave companies because of their managers. Remember that in your entrepreneurial endeavours.”
I think this is especially true when working in a startup environment and can be extended to; “People almost alwaysjoin and leave companies because of their managers”. In the case of early-stage companies, managers are more often than not the founders themselves. In the early days, there’s not too much certainty. However, there is one constant day in and day out: the people you’re working with and for. I think this early founder-employee fit evolves into the culture. Culture is upheld the strongest by the founders/leadership and is maintained as a common thread through the company. This not only attracts but also helps retain talent. This invariably helps a company become better.
It’s why VC’s spend time digging into a founder’s ability recruit. It’ll give them a taste of what’s to come. Accordingly, being on a founding team of a company, it’ll be up to us to attract (and keep) the best people. You cannot rely solely on press, metrics, etc when it comes to recruiting in the earliest days. It is quite literally up to you.
I think founders can approach it from a personal brand standpoint; twitter/personal blogs, and or from a technical depth standpoint; technical talks/papers published/previous technical execution, Either way there’s a need to do what’s most authentic to who you are since its most likely to be convincing to somebody looking to join you. Some of this does seem obvious, but I think it is something that needs to actively be done. However, sometimes it can be overdone and doesn’t seem authentic. Plus, people tend to get weary of people who are too charming/smooth. Similarly, its why it makes sense to ask to spend some time with founders before joining a company, should it small enough (<50). You’ll most likely get a taste of what lies ahead.
I’m going to spend some time looking for stories from the first few employees at some today’s larger startups/tech companies. It could give insight into what convinced them to join in the earliest days. I’m curious to see what sold them.
This family friend recently passed away and I write this post in his memory. I hope to not only have the stamina and fitness to climb to Everest Base Camp in my late 40’s like he did but also carry valuable lessons like these that he shared with me.
Assumption: Basic product/market fit, in one’s own eyes, and a need to hire. If not, there should be a focus on getting a point where hiring is necessary.
Two night ago, I attended the 2nd UCLA Student + Alumni Entrepreneurs Dinner. Last time I was here, a year ago, the event was my baby at Bruin Entrepreneurs for which we had raised some money from, the ever supporting, UCLA VC Fund, to host! The only difference was this year, I was back as an alumni*. A good reminder of how far we’ve come, I’ve come, and it encouraged me to write about what we built over the last couple years when I was on campus. Some of you may find nothing new or groundbreaking here, but if you’re interested in my perspective or have thoughts and comments about it, that’d be awesome!
Also, groups on other campuses’ such as BASES @ Stanford, MPowered @ UMich, Harvard Ventures @ Harvard, CORE @ Columbia, Founders @ UIUC, Spark @ USC* have all built amazing ecosystems. I learned a lot from their work and you might be able to as well. I’m going to write another post on how they + campus focused funds have made it possibly the best time to start something when in college.
Earlier today, I tried to sell a few textbooks that had been lying on my desk to see if I could make a few bucks for them before I move up to Mountain View. The process turned out to be harder than I expected.
Given, the incentives of the system don’t encourage reselling of books at anywhere close to retail prices along with the variability in the condition of the books – I shouldn’t have expected this market to be anywhere close to efficient. I must’ve at least spend $200 on these books combined – yet I couldn’t get more than $30 (15%) back.
Option 1: Selling it back to the college. At UCLA, there’s a portal where you can see the value of the book should there are at all be any interest in purchasing it back (presumably to resell at a big markup the next year). Unfortunately, there weren’t looking to buy back most of the books. School Bookstore – At UCLA – https://shop.uclastore.com/t-buyback_inquiry.aspx Price: Low, Guarantee: Low, Difficulty: Low
Option 2: Selling to other students – primarily through Facebook groups. The good thing is that these are walled market places with relative price insensitivity during the first 2 weeks of every quarter. During the rest of the time the demand is essentially zero. You must be willing to wait for the first two weeks of a quarter or right before it to find a buyer (though you may still not find one). This buy is likely to pay somewhere between 50-75% the price. However it is high touch. This is the best option if you have time on your hands. Facebook – Price: High, Guarantee: Low, Difficulty: High
Option 3: Book Finders. So I knew Amazon did trade-ins and as did Chegg. However, I stumbled upon Book finder which turned out to be the best option. It quickly surveys a bunch of trade-in options at the national level and find you the highest *low* price 😛 However, if you include the price of shipping – most books don’t become worth shipping since you need to buy the packaging…. Book Finders – http://www.bookfinder.com/buyback Price: Low, Guarantee: Medium, Difficulty: Low
Funnily enough in college, I was trialling classes for the soon-to-form entrepreneurship minor at UCLA and took a class titled `Business Plan Development taught at the Anderson School of Business. For the class we proposed building something called Textbook Crawler. Good ‘ol days. You can view what our final presentation looked like here.
Option 4: Donate to your local library. They will usually accept most of the books you intend on donating, however I did find out that the Beverly Hills Library doesn’t accept text books. This also happened to be personally very satisfying for me.
Santa Monica Library – Price: Zero, Guarantee: High, Difficulty: Medium
In the last year, I have been quite lucky to have had the opportunity to spend time being on the VC side and the startup side. Particularly, learning about the other side when not being in that role! However, while it is definitely too early to say that I can view things from both sides of the table, this opportunity has lead me to having a greater amount of empathy for both roles. One particular part of the system that I found myself thinking most about was around “passing”. Specifically, investors passing on entrepreneurs/their companies. If you are an entrepreneur passing on investors, kudos to you for being in that position.
Getting passed on is the default in the system; however, you may get passed on at different points of the funnel system  for seed funding. Every investor has their own process but based on what I’ve heard/ see/read, I’ve attached some numbers that I think are not too far off from reality with respect to drop-offs. Depending on when the drop off happens, your take away should be quite different IMO.
An immediate takeaway is that investors spend a large chunk of their time on reading decks and/or listening and meeting with entrepreneurs whom they are going to pass on. So when we went out to fundraise, I knew there would be passes and lots of them, particularly since the funding environment was not so hot and space has a pretty big graveyard. Having been on the VC side and getting to see this first hand, it allowed me to take passes in a non-personal way. Just for the record – every single pass still came with a little bit of pain. Diagram 1 illustrates the different points you might get dropped off by an investor and how best to move in my humble opinion.
1. You need to get the investor’s attention to get passed on. So go get ’em, cause you miss 100% of the shots you don’t take!
2. About half the companies that VCs first encounter for an Introduction, they’re not going to spend any more time with. At this point, if you get passed on, it makes sense to just say thank you for their time and move on. It is unlikely that you will receive any feedback given the sheer volume of companies they see at this point – respect that! Also, as a friend who is an early stage VC points out, “The shitty thing about early-stage investing is that there isn’t always a reason. The reason can be super obscure. Like maybe a VC saw a company in this space 2 years ago, and it failed. So now they are hesitant to look at others”. The good thing is that these people will likely pass early, like right now at stage 2.
3. While there is a pretty high chance you will make it to the Diligence I part, there is a pretty high chance that you will not make it any further. If you do not make it any further, it could mean a few things:
The opportunity is not big enough
The VCs do not believe in the same future that you believe in/ timing
Timing is too early
There needed to be more traction
The VCs do not think you/your team is right for this business or this business is not right for you/your team (This one is personal and usually is not ever relayed back as feedback, but there is a high chance that this is the case.)
It would definitely be worth asking for feedback at this point & keeping a log of that feedback. They passed based on a certain set of information you provided them with and conclusions they drew from there. If there is something they see as obvious, it would be worth it to get their feedback. While you might get generic stuff like “we don’t think you can sell this to enough people to make a big business”, it’s definitely worth not dismissing it at a first glance. There could potentially be a problem that you would need to focus on first to solve, and it is possible that other VCs have the same concern. It might make sense to delve deeper to see if you do indeed run into these challenges and how you can take them on!
4. Now Diligence II is the most interesting part of the process IMO. At this point, your team may think they are close to getting a term sheet and your investor is excited about you as well. (You haven’t been dropped off like the other 90%. ) The investors are taking you/your thesis pretty seriously. If you get passed on at this point, IMO it comes down to one of two reasons:
A red flag showed up that they cannot look past
While everything is looking good, there is not one die-hard reason on why they should commit
I think that receiving feedback at this point is the most valuable. The investors have spent a good amount of time thinking and researching about what you’re up to, so get them to share their thoughts if they have decided to pass. It will help you build a better business 🙂 Also, it makes them more likely to help you out in the future either with this company, your next company, or your friends’ company. The investors that did give us feedback at this point had critical points and were the most likely candidates for us to send future updates regarding, lean on for potential help, and send more deals 🙂 Also, my personal thesis is that these investors are most likely to be helpful on whichever cap tables they are on.
5. Once you get the Term Sheet, the next move is in your hands! GG.
A point to keep in mind is that usually after an investor passes, there’s almost nothing you can do to change that and hence use the feedback constructively. Eric Peckham, an early stage investor and friend, echoes this point from speaking with other VCs over time; “many investors don’t give feedback – even though they might want to because they know it’s helpful – is that founders frequently use the feedback as ammunition to push back against the pass. They send counter-arguments to the weaknesses you raise and think they can still make you change your mind.”
Entrepreneurs: No matter who you are, you are going to get passed on. So use that opportunity to ASK for feedback – period. It does not matter if you agree with it or not, there is a chance you will learn something from it which will only help you in the long run
Investors: If you took a potential investment all the way where you spent more than an hour with them, please allocate at least a couple minutes to give them useful feedback. We are all better for it!
If you disagree with everything I have said here, I would love to hear your thoughts in the comments or at firstname.lastname@example.org!
 – Funnels at some existing venture firms: Homebrew, I will update you with more when I find the links!