Tag Archives: vc

5 tech challenges I’m thinking about today

fast fish

Technical operations & startup tech are experiencing an incredible upheaval which is bringing a lot of great things.

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Here are some of the questions it raises for me.

1. Are we adopting Docker without enough consideration?

Container deployments are accelerating at a blistering pace. I was reading Julian Dunn recently, and he had an interesting critical post Are container deployments like an oncoming train?

He argues that we should be wary of a few trends. One of taking legacy applications and blindly containerizing them. Now we can keep them alive forever. 🙂 He also argues that there is a tendency for folks who aren’t particularly technical or qualified who start evangelizing it everywhere. A balm for every ailment!

Also: Is Amazon too big to fail?

2. Is Redshift supplanting hadoop & spark for startup analytics?

In a recent blog post I asked Is Redshift outpacing hadoop as the big data warehouse for startups.

On the one hand this is exciting. Speed & agile is always good right? But what of more Amazon & vendor lock-in?

Related: Did Dropbox have to fail?

3. Does devops automation make all of operations a software development exercise?

I asked this question a while back on my blog. Is automation killing old-school operations?

Automation suites like Chef & Puppet are very valuable, in enabling the administration of fleets of servers in the cloud. They’re essential. But there’s some risk in moving further away from the bare metal, that we might weaken our everyday tuning & troubleshooting skills that are essential to technical operations.

Read: When hosting data on Amazon turns bloodsport?

4. Is the cloud encouraging the old pattern of throwing hardware at the problem?

Want to scale your application? Forget tighter code. Don’t worry about tuning SQL queries that could be made 1000x faster. We’re in the cloud. Just scale out!

That’s right with virtualization, we can elastically scale anything. Infinitely. 🙂

I’ve argued that throwing hardware at the problem is like kicking the can down the road. Eventually you have to pay your technical debt & tune your application.

Also: Are SQL databases dead?

5. Is Amazon disrupting venture capital itself?

I’m not expert on the VC business. But Ben Thompson & James Allworth surely are. And they suggested that because of AWS, startups can setup their software for pennies.

This resonates loud & clear for me. Why? Because in the 90’s I remember startups needing major venture money to buy Sun hardware & Oracle licenses to get going. A half million easy.

They asked Is Amazon Web Services enabling AngelList syndicates to disrupt the Venture capital business? That’s a pretty interesting perspective. It would be ironic if all of this disruption that VC’s bring to entrenched businesses, began unravel their own business!

Also: Are we fast approaching cloud-mageddon?

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Is AWS enabling AngelList to boil the VC business?

aws logo

Just finished listening to Ben Thompson & James Allworth discuss how Amazon Web Services is impacting the venture capital business.

My mind is blown!

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I heard all about AngelList getting 400m from China’s csc. I didn’t really understand the significance until I saw Fred Wilson’s post Outsider vs Disruptor.

Are VCs nervous, I wondered?

The argument goes, as it takes less capital to get started, way more people can step in to help you get going. Startups don’t need a VC from their first day.

1. Is Amazon boiling the VC frog alive?

As the story goes, if you turn up the temperature slowly, the frog won’t notice that he’s being boiled.

Ben Thompson at 9:30 in the podcast:

“I think the real enabler of this is Amazon. Back in the 90’s you had to go buy Sun servers, Oracle databases, and you had to spend hundreds of thousands if not millions of dollars. And they were all up-front costs. And that’s what Venture Capital is good for.”

Indeed, with the advent of AWS, startups can build their application in the cloud with *ZERO* upfront costs, and only dollars per hour. This is truly a seachange.

Also: A history lesson for cloud detractors – January 2012

2. Dell’s 67 billion dollar buy of EMC

o largest acquisition in tech history
o enterprise tech & enterprise storage

At 50:36 in the podcast, James Allworth says:

“I have this mental image of what used to be this massive land mass, and all these companies fighting it out and eventually the ocean is rising, aws is rising and it’s leaving an increasingly small amount of land mass and there are fewer & fewer of them and it’s going to be very interesting to see whether any land mass is remains when aws is finished with it, and i guess this DELL EMC thing, the argument is well there’s gonna be a little bit left & we’re going to take whatever it is because we’re the biggest but it remains to be seen whether there’s gonna be anything left for anyone at all”

Dell buying EMC is apparently the largest acquisition in tech history at 67 billion according to Bloomberg. That sure does say a lot about Amazon’s downward pressure & commoditization.

Though I didn’t know EMC would be bought by Dell for such a ridiculous sum, I was arguing this back in 2011 – the New commodity hardware craze .

Related: Is Amazon too big to fail?

3. Wework & the disappearing server room

Ben Thompson makes a really fascinating point at 46:30 of the podcast:

“There’s been a big shift from the valley to san Francisco all the big companies of yesteryear are in the valley and almost all of the unicorns are in san francisco, and this is also because of AWS…

You can’t afford to pay square footage for servers in San Francisco, but if your startup is only some people, a desk & some computers… suddently it’s much more viable you have companies running businesses out of wework offices… the only reason wework can exist is because you don’t need to have servers because all the servers are housed by amazon the fundamental fabric of the silicon valley is changed because of aws”

Yet again, Amazon has impacted the valley in a huge way.

Also: Are we fast approaching cloud-mageddon?

4. Google & iphone scale

“You could make the argument that AWS is right up there with Google & right up there with the iPhone in it’s fundamental transformation of industry after industry.”

And while Amazon is fully enabled by Linux, and didn’t invent utility computing, they have surely

Read: When hosting data on Amazon turns bloodsport

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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.

Also: Are generalists better at scaling the web?

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.

Related: 8 questions to ask an AWS expert

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.

Also: Are SQL databases dead?

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.

Also: 5 Things toxic to scalability

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What can NYFW teach Chad Dickerson about net neutrality?

net neutrality

Here we are again discussing Net Neutrality… Chad Dickerson CEO of well renowned Etsy.com, has come out strongly in favor, and wants everyone to take action.

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Honestly when I read his wired piece Etsy CEO to businesses: If Net Neutrality Perishes, We Will Too, I was struck by one statement:

The FCC proposal will threaten *ANY* business that uses the internet to reach it’s customers.

Any business? Quite a sweeping statement. Strikes fear into me that’s for sure… And if you read through the comments, the debate is equally fierce. One side says net neutrality is socialism! The other side says anyone against net neutrality is a shill for Comcast or Verizon! Battle lines drawn!

1. Are all businesses at risk?

Isn’t the idea that ETSY will perish overstated? Are they a high bandwidth company? Are they trying to stream video?
Is the entire Etsy community alarmed? Isn’t that a rather broad statement?

To be sure ending net neutrality will impact some businesses. Perhaps one reason VC’s like Fred Wilson are so concerned about Net Neutrality isn’t for the freedom of millions of internet users, but the threat to disruptive businesses, the startups that VC’s directly invest in.

Read: Which tech do startups use most?

2. Will all internet users be impacted?

Here again some of this debate seems overstated. I remember using the internet on a dialup modem. 300 baud, was about the speed at which you can type. Then along came 14.4, 28k and upward speeds climbed. All the while the internet was usable. Could I do all the things I can today, nope.

Even if these horrible Comcast’s & Verizon’s reduce speeds by 100 times, they will still be plenty fast for most internet users. Sure streaming video would be impacted, and yes streaming music would be impacted. But for end users, I would argue most would not be impacted. It is rather the disruptive startups & businesses that would be most impacted.

Also: Is automation killing old-school operations?

3. Are there anti-EDU parallels

In the mid-nineties, before the dot-com bubble, there was a huge raging debate about even having commercial entities on the internet at all. Enlightened internet cognoscenti considered it an abomination.

But the real world pushed it’s nose in, and today we take as a given.

Check this: Is Hunter Walk right about operations & startups?

4. Is google right about millisecond delays?

“Research from Google & Microsoft shows that delays of milliseconds result in fewer page views and fewer sales in both the short & long term”. Yep, that’s a fact. The research shows this. But what do we take away from that?

As a performance and scalability consultant I see a *TON* of websites that have huge delays, well over tiny millisecond ones that Google frets over. Internet startups struggle with performance every day.

What’s the irony? Slowdowns that Comcast or Verizon might introduce to end users pale in comparison with these larger systemic problems.

Also: 5 Ways startups misstep on scalability

5. Any lessons from sites of New York Fashion Week?

I like the Pingdom speed test tool. I used it to track the speed of some of the websites & blogs that are big for NYFW. Here’s what I found:

nyfw speed test results

What do you see? Take a look at the SIZE column. Notice something strange? The LARGEST sites, in terms of images, css & assets aren’t necessarily the SLOWEST! That’s a funny result if you consider net neutrality. If you think the network speed is the same for all websites, shouldn’t the smallest pages load fastest?

Not true at all. It’s a very simplistic way of viewing things. Fashionista.com for example is doing a ton of tuning behind the scenes. As you can see it is making their site far and away the fastest! Network bandwidth and net neutrality be damned!

Related: Are SQL Databases Dead?

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Is Dave Eggers right about the risks of social media?

eggers the circle

I have to admit, though Egger’s is a pretty famous author, I wasn’t familiar with his work. I do however read AVC regularly, the writing of renowned VC & Union Square Ventures partner Fred Wilson. So when one of the commenters pointed to the book as a great read I grabbed a copy on my Kindle.

Flipping through to the back of the book, the further reading section is telling. Bradbury’s Fahrenheit 451, DeLillo’s White Noise, Huxley’s Brave New World & Orwell’s 1984 are just a few on the list. All books that I’d read & enjoyed not only for their story, but for their cautious warning of a dystopian future.

The Circle story takes place at a fictional Silicon Valley company “The Circle”, whose campus includes wings such as Old West, Renaissance, Enlightenment, Machine Age & Industrial Revolution. The main character Mae, has just been hired in customer experience. Employees at the circle are all but *required* to socialize together. There everything is ranked, from customer satisfaction, to employee participation, comments, likes, posts & shares.

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I came away with five major themes from the book. As the characters march through the pages, watch them sacrifice their morality, free will & eventually human rights too.

1. social media is like snack food

What I loved most about the story, was how extreme the social media use had become. It was as though every moment had to be captured, every interaction “shared”. And with that, others then comment, favorite, and interact.

But as we found later, social media became something of lesser value. It was like eating snack food, a simulation of real food, missing in nutrients, but masquerading as the real thing. The metaphor holds together well, as we see people become fatigued with Facebook in the real world, and the constant sharing of everything.

Also: Is quality journalism dead? What I learned from Ryan Holiday

2. Egger’s fictional technologies are close at hand

At one point in the story, Mae does a search to find out about her family history. What turns up is more than she bargained for. It turns out that her parents had a rather odd affinity for yearly baccanalian partying, and the photos shock & embarrass Mae.

Turns out some neighbor had scanned a whole shoebox full of photos, and from there the internet crawlers took care of the rest, indexing the photos complete with facial recognition & identification. Once that was complete, a simple search revealed pictures even her parents didn’t know exist.

Facial recognition technologies in fact already exist, though are not widely used quite yet. Governments are obviously beginning to use them for law enforcement, but facebook & google are certainly getting into the act too. What’s more the SeeChange cameras described in the story, parallel Google Glass for example, which is maturing quickly.

Related: Do consultants need to balance conflicts of interest?

3. secrets are a real human need

After Mae begins wearing the SeeChange monocle, everything she does is streamed to an online audience. It begins as an exercise in transparency, but we quickly see the trouble it brings as Mae has no moments of privacy.

In this world, moments of intimacy become shorter & harder to find. And we see then how Mae begins to crave those moments, and they become more precious too.

Check this: Why Oracle won’t kill MySQL

4. monitoring changes our behavior

Much of the monitoring and transparency in the Circle story comes from a new technology called SeeChange, a camera monocle worn around the neck, perhaps paralleling Google Glass that we have all heard of.

Surveillance can surely help prevent crime, or provide evidence after the fact. But one other affect of the technology is in warping people’s natural behavior, as though we are all on a stage, all on camera all the time. In Mae’s case she begins to act for the camera, and those around her do too.

Read: Why devops talent is in short supply

5. how social media warps our sense of time & human scale

Another interesting scene occurs when Mae follows up with a friend via text. Her friend doesn’t respond back, so she sends along another text a few minutes later asking if “everything is ok”. By Mae’s fourth & fifth message, she’s sure she’s been kidnapped, and by the tenth message she’s just angry and declares their friendship is over! All this in the span of 25 minutes.

I think Eggers uses a sort of extreme example, but really to illustrate an important point. In the world of always on communication, these types of misunderstandings are more and more common. Our sense of time changes, and we may feel that others are in slow motion.

Also: Are SQL databases dead?

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31 Essential Blogs for Startups & Scalability

So many blogs, so little time! Here’s our list of the best we’ve found. Currently our favorite reader is Pulse pictured left. Starting to play around with flipboard too.

Nuts & Bolts Technical

One of the original tech blogs, that still covers lots of breaking news, and difficult topics. Very technical, with probing commentary. Beware the actual comments though, as they’re often full of immature and childish rants.

Planet Mysql
An aggregator of many MySQL blogs, it hits on topics from benchmarking, and advanced tuning, to new technologies on the horizon. Drupal and LAMP topics are often also covered.

mysql performance blog
Percona’s technical blog never disappoints. There are endless posts about a myriad of topics related to deploying, tuning and optimizing MySQL and all it’s variants.

Hacker News
You may not like Paul Graham, he’s easy not to. But his YCombinator News site is an awesome collection of always surprising technical topics that are sure to keep you busy.

Netflix Tech Blog
You might have read about Chaos Monkey before, that

Our very own Scalable Startups
You’re already reading us regularly of course! Why not grab our newsletter?

Programmable Web
Mashups & APIs. What more do you want? Very cool stuff here.

Also take a look at our best of compilation.

Business & Economics

HBR Blog
If you’ve ever read Harvard Business Review, you know how in depth and on point the material is. More thorough discussions than many other blogs, and excellent discussions in the comments.

Marginal Revolution
Tyler Cowen’s endlessly interesting and provocative take on the world through the eyes of economics. Like using science to analyze and solve the worlds ails, this blog always has a reasoned take on things.

NPR Planet Money
I’ve been listening to this podcast religiously since the financial crisis of 2008. It continues to intrigue and educate me in ways that college finance never did. You’ll learn a lot.

Bloomberg Businessweek
BBW despite it’s name is like Wired back in the 90’s before it got taken over by Conde, and the cutting edge writers and risk takers left. That’s right this magazine is full of analysis, creativity, and color. It’s what you’re looking for in a print magazine. One of my favorites.

Inc. Magazine
Real articles for your small business needs today. Thoughtful and topical.

Forbes Magazine
Banking, finance, politics, news.

You might also check out our Scalable Startups newsletter archives.


Fred Wilson’s iconic blog is always on the cusp, with a thoughtful and participating audience of readers.

John Greathouse is a VC with a very readable blog on startups and investing.

Chris Dixon
This guy invested in tons of great startups that are household names now. With a very readable blog to match, he’s a man with ideas that we all benefit from.

As they call it, your “Essential Fix of Entrepreneurial Ideas”.

Feld Thoughts
Brad Feld is another big VC with an excellent blog on topics relevant to Venture Capital & Startups.


Andrew Chen
Consumer internet, metrics, and user growth. Brilliant idea guy. I learn from this guy’s blog everytime I check it.

The smarties behind the book of the same name, this is essential reading for bloggers who wanna make a dent in the world.

Blog Tyrant
How to build successful blogs that make real money. Learn from Ramsay Taplin who’s done it already. Whether your blog sells products, widgets or services, there’s stuff for you here.

Kissmetrics Marketing Blog
Very good stuff on marketing, twitter, facebook and all the other good social topics.

Mixergy Blog
Business tips & startup advice with a bent towards marketing and social.

Mark Schaefer Marketing
Mark’s the brains behind the great book Return on Influence which we reviewed. His Businesses Grow blog is full of helpful ideas and insights.

Figaro Speech
You may have read my review of Word Hero and seen the earlier review of Thank You For Arguing. His blog is a real gem, extending on the wonders and lessons of word hero, you’ll be writing witty and memorable one-liners and titles that will go viral tomorrow!


Om Malik started out writing about the bandwidth boom and bust of the 2000’s. His blog has grown wildly to cover the industry as a whole, and contrary to the stuff you get on business insider, this is quality journalism.

Another industry site with a great selection of journalists writing on the internet & startup industries.

Another excellent industry blog with slightly overlapping coverage to gigaom and allthingsd, but worth scanning each of them for different perspectives.

Possibly a bit more venture and investment oriented than the others, but still mainly an industry coverage blog site.

Slightly more focus on business, and entrepreneurs, but also internet & startup industry topics.

Trying to broaden my horizons by adding this one into the mix. Some very interesting topics, and plenty of overlap with internet industry and startups.

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