just started writing a venture capital eBook

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launching new blog johngannonblog.com

Hey all -- I have just launched a new blog (http://johngannonblog.com) that will be focused on VC, technology, innovation, and probably include a bit about my life as well. I hope you all continue to stick with me and follow along with the new blog. I won't be updating this blog any longer but I will keep responding to comments here, so feel free to reach out if one of my old posts seems interesting and you want to discuss!

Evaluating startup offers and comp packages

The guys from Venture Hacks just posted regarding how individuals can evaluate job offers from startups. There are two parts (Part 1 and Part 2).

I thought this post was interesting because this past year I fielded similar questions from classmates who were evaluating opportunities with startups versus bigger, established companies. One thing I have seen fairly frequently in the past (and something I myself have done) is people who over-value their options. Most startup companies do not sell for Google or VMware-like prices, so you have to assume a moderate outcome (and therefore a moderate payout). Heck, some of them never sell and just go under. Just the nature of the game.

BTW, if you are really fired up about going to work at a startup after school, you might think about taking a VC class. It helps you understand the financing side of the startup world, and also comes in handy when you are thinking about how to value a startup's offer of employment.

Tech careers post-CBS

There was a comment made on my last post and I thought I would devote a post to the comment. (Thanks for reading and for asking the question, mystery commenter! :)

Here is the comment:


Hi John,

How are you doing Big Daddy? I have few questions about CBS. I am a technology professional working in West Coast. I want to apply to CBS for fall 09. I am looking to move into business development in Technology firms. I am fascinated by CBS for its New York location. Any inputs on "how often do you see CBS students pursuing career in technology? even if they write technology in essays, does adcom suspect that applicant is seeking an admit through back door and finally wants to go to IB because we are in NY?"


And here is my response:

Big Daddy is doing great, thanks for asking :) We're at 32 weeks and counting.

CBS does have a strong, core group of folks who are pursuing careers in new media and technology. Admittedly, that group's size does not rival the number of future i-bankers and management consultants, but it is a pretty vibrant group and one that in my experience is very passionate about the sector.

I can't really comment on what the adcom is thinking related to your admissions essays, but I would recommend to just be yourself and be truthful about what you want to do once at CBS, and afterwards. If you're able to tell a logical account of "why CBS, why now, and why the future career path given your past experiences" I think you will be fine.

What you end up seeing the 1st year is that many people decide that what they came to school to do (i.e. in their app they said they wanted to become a management consultant) was not as exciting as something else they were exposed to early in the 1st year (i.e. they change their mind and decide they want to work at a hedge fund). I think that potential for change is somewhat expected and understood, although you definitely want to go in with a fairly defined vision and plan of what you want to do at CBS in your application.

There are a variety of classes that are tech and new media focused as well as activities (like the Silicon Valley Trek) that cater to applicants and students who are interested in taking that kind of career path.

Does this help? Feel free to post some follow up questions in the comments and I'll try to answer them as best I can.

Some big news to report

After much consideration (and interviewing!) I have accepted an offer with a venture capital firm here in NYC, L Capital Partners. I will be focused on investments and portfolio companies in the wireless, IT, and digital media sectors.

So what's with the picture you might ask? It's one of the catchphrases that an artist in our neighborhood (De La Vega) often uses. It rang pretty true for me given that I've been working for a long time to reach this point.

While I'm philosophizing, here is another one of his quotes that I really like:

"THE PRESSURE OF SURVIVAL IN THE BIG CITY WILL MAKE YOU LOSE SIGHT OF YOUR DREAM...HANG IN THERE."

I am glad I didn't lose sight of mine, and thanks to everyone who helped me to keep it in focus.

Amen to the Cold Call

Mike Hirschland, a VC at Polaris in Boston just posted about how he got his job at the firm. He had a very non-traditional background but was able to make a connection with one of the partners, and as they say, the rest is history.

I remember Mike came in to see us at RecordMyCalls.com at the beginning of our fundraising. I remember him as a real nice, laid back guy who was enthusiastic about trying the product and someone who seemed great to work with.

Again, I think the key takeaway here is that you can't be afraid to make that cold call. They are often uncomfortable but you really don't have anything to lose in making them. So do it!

Even Darth Vader sucks at Powerpoint

(Image courtesy of this link)

One of the bloggers I follow just posted about his experience in Edward Tufte's class. Tufte is one of the foremost authorities on the art and science of presenting information, and a big opponent of Powerpoint.

Given that MBAs are going to be doing many presentations in class and outside of class (in their jobs, internships, etc), it really pays to hone this skill. I have rarely seen strong presentations and presenters, but let me tell you that it is a real joy when you come across one (or both). I think its also a great way to stand out from the crowd and your peers.

Check it out when you have a chance.

Bringing passion to your job hunt

I just read this post from a guy who was just hired by Amazon to be their Web Services evangelist in Europe. Loved it.

Although he's doing something dramatically different (from a career perspective) than what most people who read my blog are seeking to do, he shows how passion can really help you stand out in the interview process.

Give it a read.

How I'll try handling "unproductive" meetings

Fred Wilson, ubiquitous VC blogger just posted about taking and managing "unproductive" meetings. By unproductive, he means meetings that are typically one-sided (i.e. guys like me coming to talk to him about getting into VC) where there is a fairly good chance that only one party is getting value right off the bat.

This got me thinking as I go back into the workforce. Just as I got on the phone, LinkedIn, did informationals, etc with a variety of CBS and non-CBS related VC folks during my search, I need to return the favor, especially to the students who are at CBS now. However, in trying to kick butt in a new job, taking care of my growing family, etc there is not going to be alot of time in the day for these sorts of things. I think Fred's tips are useful ones and probably ones I'll have to put into practice to stay sane.

This tip was my favorite ('Jimmy' is Fred's friend who is not in the VC biz):

5) Try to do it right in the meeting if you can. A quick email or phone call right during the meeting can be a great way to get the thing done you agreed to do. Jimmy told me he does this a lot and I agree that it's a great trick if you can pull it off.

I had an informational a few weeks ago where the VC I was meeting with did just this. Not only did it save him time because my follow-up would be limited to a 'Thank you' versus a 'Can you', but it made a hugely positive impression on me because you're actually seeing someone who you hardly know spring into action on your behalf, right in front of you. Pretty powerful stuff if you ask me.

Great tips for those starting internships

This is a post from my friend Marquis, who I used to work with at Scient (my first job out of undergrad). Marquis later went to Stanford GSB and then on to McKinsey (and he is still there).

He gives a bunch of tips for those of you MBAs starting your internships. Take a look.

Never too late for career services

I went up to school today to speak w/Regina Resnick, who is the head of career services at CBS. I wanted to talk to her about how my job hunt was going and also get her opinion on how I was going about things. While I was at school, I also hit the Career Resource Center and took a look at some of the 3rd party compensation surveys they keep on file. Very useful stuff.

On my way into Uris I bumped into one of my classmates who is starting a luxury mobile phone company. He was coming to campus for a business meeting with a potential partner. I also saw a couple of guys from my cluster, one who was heading back to his home in Morocco at some point today. Once my kids get a little older we'll have to pay him a visit! :)

After spending an hour or so at Uris I had lunch w/a former colleague of mine who finished the HBS MBA program a year ago. I was curious as to how the other side lives so I asked him about his HBS classmates and how they were liking the jobs they took post-MBA.

Turns out that there are a bunch of folks (mostly folks who went the consulting/banking route) who ended up leaving their jobs within a year and going to do something else. I thought that was interesting.

The friend in question definitely took his own path and started a company post-MBA, which I am (not surprisingly) very psyched about. I wonder how it will be for my class?

I guess with the economy a bit iffy, I would anticipate some more people gutting it out at jobs they might not be happy with, but I dunno...

Fred Wilson got lucky

Fred Wilson, the well-known NYC VC and blogger, just posted to his blog the abbreviated story about how he landed in VC. I think it's illustrative of the kind of luck and timing that you need to get into the business (outside of connections and just raw talent, which help, but aren't guarantees).

I remember Fred came into our Business, Technology, and Innovation class in the fall and shared with us some of this story as well. He was looking for a job in the days where you had to physically mail resumes to a hundred firms and then follow up the old fashioned way. Luckily, we've got tools like LinkedIn to help us out these days, but as you know from reading my blog, its still a hard (one of the hardest?) nut to crack.

Also, as the CEO at the company I interned with this summer said (an HBS grad, although I don't hold that against him), back in the day you wouldn't even dream of contacting VCs as a lowly business school student, or even have any expectation that you'd get a meeting. Times have really changed, and I can imagine Fred was knocking (literally) on alot of doors back then.

I wish more VCs would share their story. It's certainly conforting to know that its hard for most people to get into the business, and it definitely displays some humility and self-awareness to share that with others. If I've missed other examples of posts like Fred's, please feel free to comment and add links here.

By the way, I added my two cents with a comment on another guys's comment on Fred's post. Here it is.

Back to job hunting

I was in Baltimore this weekend with my wife and her family and came back up to the city yesterday for a friend's wedding. The wedding was at the Museum of Natural History. Although I'd been there to see the exhibits, this was the first wedding I attended there. Not a bad place to get married, I'd say! Food was great as well as the atmosphere.

Tomorrow it's back to the job hunt. Right now I've got a couple of meetings set up with a venture firm here in the city but other than that, nothing else is cooking this week. I should also be hearing back from the west coast firm that I had been speaking with.

One of those days

Got bad news from one of the firms with whom I've had several interviews with. They don't want to hire me. This sucks (pardon my language) but given the competition for any of these jobs, I know I have to pull myself up and keep going. I did like the group alot and hopefully I'll have a chance to work with them in some way in the future.

The good part of today was going to commencement. I didn't actually participate (due to an interview I had this morning) but I went up towards the end to pick up my diploma.

I caught some of the degree-conferring action, which was kind of interesting. Basically each dean (of the various schools within Columbia U) gets up and tells the President of the university how smart, talented, etc the students in their school are and requests that their degrees be conferred. It was pretty funny and meant in gest (Dean Hubbard referred to our class as "Sarbanes-Oxley compliant" among other accolades :) By the way, the thing to do in the stands during commencement if you're in business school is to wave money (seriously)...

Other highlights included the dental school dean talking about everyone's great teeth and some of the grads waving huge toothbrushes. I have to admit, I kinda wish I was in the stands today versus sitting on the sidelines. It looked like fun.

VC wannabes: learn how to size markets...now!

If you are planning to pursue VC after business school, a word of advice: get experience doing market sizing (OK, market estimating is probably more like it) and practice, practice, practice.

By market sizing, I mean taking a given market (like the market for HD Televisions, Widgets, Oatmeal cookies) and slicing and dicing it based on a series of assumptions.

I have had some time to practice this through my internships (looking at market sizes for purposes of business plans or VC investment) and to a small degree in classes, but you can always improve - and improvement means practice.

If I could rewind to the summer, I might have spent some time doing practice management consulting case interviews (even though I didn't want to go into consulting) for that very reason.

Why?

Well, in case interviews, you need to quantitatively walk through a business problem and figure out the magnitude of profit, revenue, etc that guides your decision-making. More importantly, it forces you to develop your own analysis process.

Doing this repeatedly is bound to make you improve in that area.

Bonus VC job tip: Pick an industry you know little or nothing about and spend about 10 hours (give or take) during a 1 week period looking at the industry trends, value chain, competitive landscape, market sizes, value proposition for key players, and think about who you would like to invest in (if anyone). After doing this, you'll know yet another space, and have yet another set of insights to share during your informational and formal interviews.

VC job advice

Here is a good post by a VC regarding finding a job in VC.

Puerto Rico was great, in case you were wondering. I plan on posting more about the trip in the next day or two between Dis-O events and the like.

Also found out today I will be having a 2nd round interview this week with a venture firm. Very exciting and I'm hoping I can get over the finish line w/these guys.

T-minus 2 days til Puerto Rico

Only a couple days left until the trip to Puerto Rico. It looks like besides the typical beach action, we will be taking a full-day sailing trip on a catamaran complete with food, drinks, snorkeling, and (hopefully no) sunburns. This is the first trip I have taken w/CBS people since last year's Rugby tourney at Duke.

People are finally done with the various projects, classes, finals, etc and are starting to kick back. I think tonight is the end-of-semester party and I know that tomorrow one of the guys in Cluster Z is having a big pool party at his house in NJ. I'm going to skip it since I've got to get ready for the trip, but I know that a bus was rented to take folks from CBS to his house, so it sounds like it will be a good one.

Also, today is my 2nd wedding anniversary! My wife and I will be babysitting a friend's daughter as said friend is going into labor w/her second child and they don't have any family around to help out. So, I'll pick up a movable feast and bring it over to the friend's house.

On the job front, still having a bunch of discussions but nothing has germinated into later stages...yet. Just got invited to fly down to meet with a firm in the mid-Atlantic region, so I will probably be doing that the week after graduation. Speaking of graduation, I think my goal of having a job by that time is in jeopardy :) Hopefully something will happen soon. However, I know that there are plenty of others that are in the same boat (including some of those who will be chilling in Puerto Rico with me) so I have others to commiserate with!

one down, four still alive

Was down in the Washington DC area yesterday interviewing with an early stage VC firm. I think it went OK but you never know. Actually, I should know more by early next week on this one. One of the guys I interviewed with introduced me to the 99/1 rule (as opposed to 80/20) - his theory on venture is that 1% of the people generate 99% of the returns. And you know, he is probably right. It also puts a huge spotlight on why these jobs are so tough to get. These guys get a ton of resumes and need to find that 1% guy that is going to help them build a great firm (with great returns).

Also got a 'ding' from one of the west coast firms I had been speaking with. They just hired another guy and so they no longer have an immediate need. They said they may start looking again in a few months but this may have just been a nice way of letting me down easy. In any case, it was good to get the call so I know where I stand. Gotta keep on truckin...

MBA CIA

If you ever wanted to get in touch with your inner spy after b-school (and are of US descent), apparently the CIA recruits MBA students. And they are coming to CBS next week!


Central Intelligence Agency
National Clandestine Service

Be a part of a mission that's larger than all of us. You can make a world of difference.

Please join us for a candid and informal discussion with NCS Officers regarding available career opportunities.

Please bring your resume and be prepared for a potential interview the following day or at a later date.

National Clandestine Service careers offer fast-paced, varied work environments that will challenge you to find innovative solutions to complex problems, to travel internationally, and to use your business skills as well as existing or new language capabilities in ways that will make a positive difference to you, your family and your country. This is more than a job. It is a way of life for professionals who demand the highest personal satisfaction from their work.
For more information and to apply, please go to www.cia.gov

1st and 2nd year students are invited to attend.

The NCS is an intelligence service with positions available primarily overseas. However, the NCS requires training in Washington DC and nearby areas prior to working overseas.

US Citizens and Dual Citizens are eligible to attend.

Back in NYC

Got back to class today after my west coast swing. Good to be home, but I ain't gonna lie - Cali was pretty nice. :) Today i had an in person interview with Glocap and a phone interview with a VC firm. I think both of them went well. I've got 4 more informational interviews this week (I don't slow down, do I?), mostly via phone.

Glocap is probably a company you should get to know if you want a post-MBA financial services job that is off the beaten path of typical MBA recruiting stuff (like i-banking). They do alot of placements for PE/VC firms, hedge funds, etc. Other firms that focus on PE/VC placements include Pinnacle and Polachi.

BTW, I haven't been seeing many comments lately. I'm not sure if this means people are bored with hearing of my interminable job hunt or if they're just doing something more interesting than reading my blog :) Let me know if you're out there...