Tag Archives: usv

5 Things I learned from Fred Wilson & Mark Suster

I was recently flipping through AVC.com and saw this interview by Mark Suster of Upfront Ventures. He talks in depth with veteran in the VC world, Fred Wilson.

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Here’s a more in-depth blog post on Mark’s interview with Fred Wilson from Union Square Ventures.

1. I’m not into debt

Around the 20:25 in the interview, Fred is discussing a period in his career before some of his first big investments, where things were financially challenging. He makes a rather candid comment about personal debt:

“I’m not that kinda person. I don’t like debt. I’m not into debt”

I think this is key. I also think it frames the whole way people approach business & career.

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2. Brains & hustle is key

Among the most successful entrepreneurs there are certainly many who are very intellectually astute. Meanwhile there are others who are great speakers, who can sell an idea, and persuade, but perhaps not as deep product wise or deeply technical.

The very best though, tend to have both brains & hustle.

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3. Best technology doesn’t win markets

Around 11:45 in the interview, Mark & Fred are discussing Novell & Banyan.

“That was when I learned that best technology doesn’t win markets”

t’s interesting because as you hear the story of how Banyan lost out to Novell, it resonates today with companies that often have the best tech, but don’t win in markets. Interesting.

Read: Why Airbnb didn’t have to fail

4. Find answers through blogging

“It’s like Venus Fly Paper. When I write about topics that are relevant, suddenly anybody with a startup solution in that field will approach us. This works brilliantly.”

Indeed, I’ve found blogging to be crucial myself to career building. It helps in a myriad of ways.

Blogging brings visibility, as your blog gains in popularity. That is certainly big. But also it helps you craft & formalize your voice & your vision. Blogging asks you everyday to think about your perspective, and share it in a way that appeals to a broad audience. And analytics give you real feedback that you are saying something of value to people.

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5. Listen to the younger generation

Around 1:11:15 in the interview, there’s an interesting point where Mark asks Fred if there were any deals that they regret not getting into. Fred responds that AirBNB was such a deal, as it was a quintessential Union Square ventures company.

As it turns out they didn’t invest because they couldn’t imagine using the service. Meanwhile the younger members of their team had a different perspective.

“We’re not gonna reject anything that we wouldn’t do and the younger team would.”

Interesting point. I think of Venmo as another example of this. I personally wouldn’t use the service, meanwhile it is clearly very popular among teen & twenty something demographic.

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Why Fred Wilson is wrong about Apple


UPDATE: When this article was written in May 2014, Apple’s stock price was $84.65. Today it sits at a comfortable $130.26.

If you’ve followed the tech news recently, you may have heard Fred Wilson’s comments about Apple. In essence he believes Apple is too reliant and rooted in hardware, and that hardware isn’t viable in the long term. Mobile hardware, is becoming a commodity.

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To be sure Androids have come a long way, and they may yet improve a lot by 2020 as Fred says. But the aftermarket value of iPhones really does speak volumes. See below.

1. iPhone has never had the best hardware

If you’ve ever watched a Samsung ad, or talked to someone with the phone you probably know this already. Bigger screens, faster processors, first phones with fingerprint readers, or untethered syncing. The list goes on and on.
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Yes Apple is rooted in the hardware business, but not in a way that a commodity can disrupt it. They’re rooted in the hardware business only in as much as it helps them deliver polish. If it helps them deliver a seemless experience, and a device that Jean Luc Picard would appreciate, then they are in that business. . Just “make it so!”.

2. Users are seduced by simplicity

So how is it possible that an inferior piece of hardware could sell more?

Easy. Those users don’t think that way. They aren’t buying hardware. What do I mean?

I would argue many iPhone users buy for the experience, the simplicity, the ease of use. Designers call this User Experience or User Interface, but end users don’t know these terms. What they know is they don’t have a headache. They’re not frustrated trying to move an image from one app to another, or copy/pasting etc.

User interface is that invisible force that just makes everything on the device better. Call it polish, but it’s much more than a pretty face.

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3. Most users don’t care about “open”

Another benefit touted on the Android side is it being “open”. The OS is open-source, and then extended by manufacturers. While this surely brings down costs to them, it may be all be irrelevant to end users and consumers.

Yes open standards are great for competition, great for markets, and ultimately great for users. But Microsoft is a great case study in why consumers often still choose a closed solution.

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4. Apple is Sexy

That may sound fanboyish, but seriously. Look at the accessories market for blinging your phones.

If that’s not enough, look at the aftermarket value. iPhones retain their value, Samsung’s don’t.

Read: Five things I learned from David Maisterabout trust and advising clients

5. Android is still broken

From where I’m standing, and a lot of experts agree, the Android ecosystem is broken.

For one the AppStore, being historically unregulated, is chock full of malware and dangerous downloads. Most users aren’t computer experts, not good at evaluating security risks, and pay the price.

What’s more many Android phones come stocked with bloatware, slowing down the device, and reducing reliability from day one.

Read: Why the Android ecosystem is broken

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