Posts by Mark Suster


There’s an old joke in software development, “How much time does it take to design software?” Answer: As long as you have scheduled for the design phase.

I know. Not funny, “ha, ha” but pretty apropos.

If you’ve been involved with a number of software projects you already have an intuitive sense for this. We’ve all been involved with projects that seem to drift and drift and make progress. There’s a healthy balance between allowing a design team to dream up functional requirements, talk with customers, analyze competitors and for technical projects – research the latest cool-kid tools to play with.

Design with no constraints becomes a research project.

You see there is a creative tension along the spectrum of  time and scope. If you pull too hard at the scope end of the chain your time drifts. If you pull hard at the time end of the spectrum you end up shipping inferior product. As obvious as it seems I assure you that many projects I’m involved with don’t sit down and have hard enough conversations about the need to hit time-based deadlines – so dates slip.

CEOs are time-driven creatures. We feel pressure to hit milestones for a variety of reasons: Investor presentations, conference demos, customer sales meetings, competitive pressures, a need to drive revenue, business development commitments – whatever. CEOs who are tough but fair-minded set aggressive targets on “time” and communicate clearly with engineering why there is a deadline.

We live in an era of more product-dominant companies where a perfection complex for features and design delay business realities of shipping products.

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If you’ve watched any industry in the last 20 years where technology has begun to transform how the industry works the results are always predictable driven by what Clay Christensen appropriately called “The Innovator’s Dilemma” (one of the most influential books that changed my thinking about markets).

Young startups claim they are going to change the world, large companies that dominate that sector scoff at how low quality these new entrants are, until like frogs boiling in water they come to the realization that “this shit is real.” The next step is the industry tries to fight back.

TrueCar is the first ever Internet service that tells you exactly how much other people in your area paid for the car you want to buy. You enter your make, model, trim & year and out pops a price curve of purchases in your area and in most states you will then be offered a fixed price to purchase that car.

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One of the hardest things for most entrepreneurs to know is how hard to push in situations where people tell you “no.”

But then again most entrepreneurs fail. There is that rare breed that doesn’t accept “no” for an answer. It is impossible advice to give because there is such a fine line between being persistent and being annoying and it’s something you probably can’t teach. I often describe “chutzpah” as being able to skate right up to the line of acceptability without crossing over it.

And being persistent I believe is the most important attribute for success in an entrepreneur (assuming of course that you have all the other requisite skills).

Years ago I started using the term “politely persistent” to remind people that you still need to be likable even if you have gumption.

I’d say less than 20% of of entrepreneurs fit into that bucket.

Of course at one end of the bucket are entrepreneurs who are persistent but just aren’t polite.

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I become a venture capitalist in September 2007 – exactly 6.5 years ago.

I spent my first year developing proprietary deal flow and learning the business and then the Sept 2008 / Lehman Bros collapse / financial meltdown happened.

As a result I didn’t write my first venture capital check until March 2009 – exactly 5 years ago. That company was Invoca, which just announced a $20 million fund raise led by Accel.

I remain a huge supporter and am very proud of our accomplishments and hugely optimistic about our future.

5 years ago. It turns out it actually takes time to build a high-growth business with differentiated intellectual property and roll out large, enterprise-class marketing solutions. I remember a few years ago people (LPs mostly) used to ask me why I didn’t have any realized returns to show.

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We all intuitively know how important human connections are in business but for many people it’s like exercise or eating well – one of those things you keep meaning to get around to.

It reminds me of a line my wife and I often jokingly say to each other after seeing the awesome film “Notorious” about the life of Biggie Smalls

“I know mothafuckas who know mothafuckas.”

Please just take 8 seconds to listen to this clip on YouTube – it’s priceless. It always struck a chord with me. The critical skill is not just your immediate network but the network beyond that you can tap into if you’ve earned the right through nurturing your 1-degree relationships.

After

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