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An Archive of the SOS Email Lists.

Is There Nothing Bill Gates Can’t Do???

Is There Nothing Bill Gates Can’t Do???

There’s no doubt that Bill Gates is considered something of a hero. With his wealth, power and influence, he has never shrunk from addressing some of the world’s most pressing problems. And he certainly has the wealth, power, influence – and hubris – to do just that.

The Microsoft Days

Back in the olden days of tech, there was a company called Microsoft, which is still around, but in the olden days, the CEO was the company’s founder – a Harvard drop out named Bill Gates, who stole his operating system from Xerox Parc (as did Steve Jobs). Back in the Bill Gates days of MSFT (before he turned the CEO spot over to Steve Ballmer no doubt due in no small part to the government’s antitrust case against the company), MSFT was known for basically three overarching things: products that didn’t work/were buggy/caused the air-sucking blue screen of death, as they were often released before their time; their predatory habits (in those days MSFT was referred to as the Evil Empire); and their desire to crush all competitors. Their charge was basically to win at all costs and if you believe that Gates has changed, here’s a must read: Bill Gates’s Philanthropic Giving Is a Racket.

Here are some of the verticals on which Gates is focused:

Education: Notes The Federalist (Bill Gates Tacitly Admits His Common Core Experiment Was A Failure), “Since 2009, the Gates Foundation’s primary U.S. activity has focused on establishing and implementing Common Core, a set of centrally mandated curriculum rules and tests for what children are to learn in each K-12 grade, with the results linked to school and teacher ratings and punitive measures for low performers. The Gates Foundation has spent more than $400 million itself and influenced $4 trillion in U.S. taxpayer funds towards this goal. Eight years later, however, Bill Gates is admitting failure on that project, and a “pivot” to another that is not likely to go any better.” Despite the fact that, according to The New York Times (The Common Core Costs Billions and Hurts Students), “It was a rush job, and the final product ignored the needs of children with disabilities, English-language learners and those in the early grades… There is nothing to show for it… Last year, (2015) average math scores on the National Assessment of Educational Progress declined for the first time since 1990; reading scores were flat or decreased compared with a decade earlier.” Read More...

Investors in the Hot Seat

Investors in the Hot Seat

Image by mohamed Hassan from Pixabay

We work with and/or coach entrepreneurs all the time, and recently realized that many founders have no idea how the VC model works, meaning how and why VCs deploy funds – and make decisions – the way they do. So we’re going to shift the perspective to help you to better understand the process.

You go to investors because you need capital in order to get your company to the next level. Time to think about VC firms as companies as well, because they are. Some of them are large companies, re have a bigger war chest of funds to deploy, but truth be told, the majority are more akin to SMBs. Where does the money come from for the funds? Family offices, high net worth individuals, strategics (eg companies/corporations aligned with the investment vertical or thesis of the fund) or institutional investors (pension funds, university endowment funds, sovereign wealth funds, etc), and the funds manage their investments. The fund’s investors invest in specific funds for various reasons: the expertise of the team, the fund’s track record, their spidey sense, alignment of focus, etc.

Like the VCs who invest in your company, those LPs expect a return on their investments. If the fund fails to do that, well, they’re going to have a harder time attracting investors themselves when they go to raise their next fund, or to put it into startup terms, their Series A, B, whatever. Read More...

Jesus Was a Blackbelt: A Lesson in Moving Forward

Jesus Was a Blackbelt: A Lesson in Moving Forward

Image by Artistraman on Pixabay

Last week, Twitter removed US President Donald Trump from the platform, tweeting that “After close review of recent Tweets from the @realDonaldTrump account and the context around them we have permanently suspended the account due to the risk of further incitement of violence.” Never mind that Twitter Allows ‘Hang Mike Pence’ To Trend. Violent groups and terrorists have been using the platform for years to coordinate their activities, but we cover technology, not politics, and are more focused on the implications of Twitter’s move – as well as those of tech cabal members Google, who removed Parler from their app store, as did Apple, and Amazon, which eliminated Parler app from its servers.

As actress Emily Ratajkowski warned: If Mark Zuckerberg Can Shut the President Off Facebook, He Can Shut Any of Us Off. History will remind us that no one is truly immune.

There’s no doubt that censorship is alive and well and spreading – unchecked – and it’s not simply to do with politics but also having opinions that are not in lockstep with those of the cabal or the prescribed talking points. Example: Big Tech censors COVID-19 video featuring doctors, YouTube REMOVES viral video of two California doctors questioning stay-at-home orders  and Facebook declares war on anti-vaxxers as it pledges to remove conspiracy theories, never mind that Hundreds (were) Sent to Emergency Room After Getting COVID-19 Vaccines, and “Thousands of people self-reported being unable to work or perform daily activities, or required care from a health care professional, after getting one of the doses from the first tranche,” as the Epoch Times reported. Read More...

The 2021 Then & Now List

The 2021 Then & Now List

Image by iXimus

2020 was a year that changed almost everything. Brick and mortars’ footprint got a lot smaller as we embraced online shopping. Not necessarily by choice: the former were shut down and/or driven out of business, especially SMBs.

The CDC admitted that deaths from seasonal flu, pneumonia and even heart attacks were included in the Covid numbers, thus inflating the actual deadliness of this flu, yet Big Media ignored these reports, which more or less made fear porn arguably the real superspreader – of click rates and note to self: according to the National Review, Stats Hold a Surprise: Lockdowns May Have Had Little Effect on COVID-19 Spread.

Working remotely became de rigueur, but with K-12 being ‘taught’ remotely, this definitely created problems in River City. On many levels, what with parents working from home, too – or attempting to. Can young children truly learn this way? There is a difference between ‘teaching’ and ‘learning.’ If remote education is going to be the so-called new normal, the basic tenets of effective remote learning need to be seriously re-examined, or the teacher is simply another talking head. Read More...

Antitrust in the Tech Industrial Age

Antitrust in the Tech Industrial Age

Facebook is being sued for antitrust violations and AGs in most of the states have signed on. According to the Chicago Tribune, “Lawmakers of both major parties are also calling for stronger oversight of Facebook and other tech industry giants. They argue that the companies’ massive market power is out of control, crushing smaller competitors and endangering consumer privacy and choice. Facebook insists that its services provide useful benefits for users and that complaints about its power are misguided… The FTC and the Justice Department reportedly have been investigating Amazon and Apple, respectively…and Justice Department prosecutors are pursuing a separate antitrust case against Google, one that mirrors its case against Microsoft 20 years ago. Microsoft lost that one, although it escaped a breakup when an appellate court disagreed with the trial judge’s order.”

Om Malik published this piece (My advice to the attorney generals: It’s not about Zuck) and we agree. His point: the Microsoft case didn’t help much in reining in the company. “I would argue that they are doing what they have always done – using their market size as a moat and expanding into new markets. We don’t realize it just yet. Today, they control two major professional networks that will have as big, if not more, significant impact on society in the future — GitHub and LinkedIn…

“My view is that it is okay for these companies to continue and buy younger companies, but they should be restricted to only buying companies that enhance their core and not allowed to buy into new markets. For example, Facebook should not have been allowed to buy Instagram or WhatsApp… In a previous article for The New Yorker, I pointed out, “This loop of algorithms, infrastructure, and data is potent. Add what are called network effects to the mix, and you start to see virtual monopolies emerge almost overnight…”When it comes to Facebook, I wrote, “The more we use it, the more data we give the company, and the more it is able to control where we turn our attention.” Facebook, as a result, “thanks to this loop of algorithms, infrastructure, money, and data, is a winner-takes-all company. Read More...

Fresh Eyes on the New Normal

Fresh Eyes on the New Normal

Image by Barbara Rosner from Pixabay

To hear the Wall Street Journal tell it, you’d think that the stay at home economy is here to stay.

Frankly, we’re not convinced that the votes are all in yet.

While amusement parks, movie theatres, gyms and many restaurants, et al have closed or have been permanently shuttered, are those verticals truly gone forever? Movie theatre sales had been down for quite some time, thanks streaming services, what to speak of the fact that many A list actors found it incumbent upon themselves to take political stances and lost a good part of their fanbase prior to this flu. The common folk expressed their opinions in box office receipts. Read More...

Thanksgiving in the Tech World…and what better time to flip Big Tech the bird…

Thanksgiving in the Tech World…and what better time to flip Big Tech the bird…

It’s Thanksgiving this week here in America. We know that there are lockdowns in some states, but some of us will be able to enjoy the holiday with friends or family and more likely, both, since we will be joined by friends who are unable to gather with their families due to the lockdowns, and for the records, there is no difference in the number of reported ‘cases’ in states with lockdowns and those without them. But it’s Thanksgiving – one of our favorite holidays – so let’s talk turkey.

This past week, we watched a movie from the late 80s. There were computers in the film or rather, terminals, but not the sort that were social media or surveillance enabled. People who gathered in pairs or groups had conversations with each other. No one pulled out one of those dang disruptive cellphones. And wonder of wonders, people still managed to get sh*t done.

As the industry promised, tech was disruptive, but on many levels and in many instances, is that a good thing (Alexa ruins Christmas by blurting out girl’s gift)? Read More...

Where Founder Pitches Go Wrong

Where Founder Pitches Go Wrong

Heads up! This is a great time to start a company. According to NPR, there’s an Unexpected Boom In Startups. “Most of these new businesses are seizing opportunities created by the weird coronavirus economy — an economy where people don’t really want to do stuff face-to-face anymore… Economists have a term for this…”creative destruction.”… Harvard University economist Joseph Schumpeter… described it as a process of “industrial mutation … that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” He placed it at the center of capitalism, arguing that it was a force that made capitalism much more innovative than socialism.”

We know that many of you are working on newcos. We hear this from you all the time and our online investor breakfasts are certainly proof of it: everyone briefly pitches and everyone has a newco. We receive your decks and executive summaries and, since we do investor breakfasts semi-monthly, we must know all of the investors (we do know literally hundreds of them), so we’re often asked can we please send out your enclosed deck to the investors for whom we feel it might be appropriate? Happy to! But we get paid for our time. Read More...

The Broken VC Model: Suggestions for a Hollywood Ending

The Broken VC Model: Suggestions for a Hollywood Ending

Image by skeeze from Pixabay

This just in: Twitter Co-Founder Ev Williams Believes All Startup Advice Is Wrong (Yet it is valuable anyway).

“Why is it wrong?…Deep down we know we can’t possibly apply everything we read and often even if we could, we shouldn’t.”

Ditto to investors. We often hear that investors look for newcos focused on big markets (fair enough – everyone wants a unicorn/substantial ROI); were founded by successful serial entrepreneurs (again, fair enough: less handholding; potentially lower risk/known entity). Still, again, they can’t possibly apply everything they hear or read and even if they could, they shouldn’t. Which may contribute to why the VC model is broken. Read More...