Monday, March 3, 2014

Help me distribute $100,000 to new entrepreneurs in Africa

I love the idea of microlending, small loans of a few hundred dollars made to entrepreneurs in impoverished areas so that they can start or grow businesses of their own, helping them to achieve financial independence. The unfortunate reality though is that many microlending programs charge surprisingly high interest rates, pushing entrepreneurs deeper into debt. This is because early microlending sites such as Kiva outsource loan management to local banks, which charge interest rates that average 35%, and go as high as 88%! I would be uncomfortable charging those rates to wealthy Americans, but asking poor people in Africa to pay that makes me feel like some kind of third-world loan shark.

That's why I'm excited to have Zidisha as one of our most recent Y Combinator funded non-profit organizations. Zidisha uses modern technology and a global network of volunteers to enable direct person-to-person lending, cutting out the middle-man and bringing loan overhead down to a more affordable 5% interest rate. Just as Airbnb connects travelers directly to hosts, Zidisha connects lenders directly to borrowers, providing not only an affordable loan, but also a personal connection, so that people are able to exchange progress updates, photos, and more. I'm a big believer in the idea that personal connections across economic and cultural divides can go a long way towards uniting all people in peace and prosperity. It's one of the big reasons that I've invested in AirBnb, Watsi (our first non-profit startup), and now Zidisha.

Zidisha is already changing lives and transforming communities. Here's a photo of Pherister Ndoge, who used a loan from Zidisha to help expand and improve her school in Kenya.



But Zidisha is still relatively new, and although they now have a record number of fundraising entrepreneurs, most people have never heard of them. We need your help raising awareness, so I've offered to donate $10 for every tweet, retweet, or Facebook share linking to Zidisha and using the #zidisha hashtag, up to a total of $100,000. That $10 goes towards funding the entrepreneur of your choice, and all of the loan repayments will be donated towards continuing to grow the Zidisha platform.

Here's how to help:

Go to Zidisha and choose an entrepreneur you think deserves support, click on the entrepreneur's photo to open their profile page, then click on the Zidisha campaign banner at the top of the profile page to share the profile URL via Facebook or Twitter.

OR

Simply tweet: Help send $100,000 to new entrepreneurs in Africa with @ZidishaInc. $10 donated for every tweet or RT: http://bit.ly/1jMsV3P #zidisha

OR

View our post on Facebook, then click the "Share" link.


You should also check out the Zidisha website and read the inspiring story of why Julia Kurnia founded Zidisha.


Join the discussion on Hack News.

Monday, December 17, 2012

The Gift

It's often said that you should live every day as though it's your last. That always seemed a little impractical to me. But when my brother died, I felt like I had missed my chance. Life could never be the same again. Part of me was already dead. I had always understood death intellectually, but now I felt it at a visceral level, and that's completely different. Death was inside of me now. 

Steve was 33 when he died, and I was 27. Statistically, there does not appear to be much of a genetic component to pancreatic cancer, but still, I worried. How much longer do I have? Could there be a tumor growing inside of me at this very moment? 

These doubts led to an interesting question. What would I do if I had only six year left to live? 

You can live a lot in six years, but you can just as easily waste six years doing things that don't really matter. I wanted to make the most of whatever time I had left. At first I thought that meant pursuing some audacious goal, like curing cancer, but over time I learned that it simply meant being mindful of how I'm living my life. The question evolved. It may not be six years. I could die at any moment.

Is this how I want to spend the rest of my life?

The answers can be surprising. Cleaning the kitchen is relaxing, and it creates a pleasant and healthy space for my family and friends to gather. Not a bad way to live. But sitting in a windowless conference room while people I don't really love debate things that I don't really care about? No, that's not how I want to spend my life. Of course others may find meaning in that. It's very much a personal decision.

Death strips away everything that doesn't matter. It's incredibly painful, but it also brings a kind of clarity. People matter. Everything else is noise. Several months after Steve died, we made a big life decision. It was time to have kids. 

The pregnancy went smoothly. My wife, April, seemed so happy that she glowed. I was almost envious of her. She was experiencing a kind of closeness that I never could. We were taking the opportunity to go on a couple of final vacations before the baby arrived. Then, around midnight, she started to bleed. We were in a small town in northern New Mexico. We went to the local hospital, then waited while they called for a doctor to come in (there weren't any there that night). The doctor immediately saw that she was in labor, and said that if there was any chance of saving the baby, my wife would need to be airlifted to Albuquerque.

The doctor also remarked that I seemed unusually calm. I didn't bother to tell him that I was still processing my brother's death, and that this seemed relatively small in comparison. I had never met the baby. April didn't even look that pregnant. I was a little surprised to hear that survival was even a possibility.

There was no room for me on the helicopter, so I had to drive several hours through the night, alone, not having any idea what I would find when I arrived at the hospital.

The nurses took me in to see the baby. There she was, 1 pound and 10 ounces, on a ventilator, her eyelids still fused, born 100 days early. But I felt her energy. She was a little ball of fire. The attachment came on like I never could have imagined.

The doctors said it was still too early to know if she would survive or not. Every time we saw her, and every time we left, we knew that it may very well be the last time we ever see our daughter alive. I never knew what it meant to live every day as though it's my last, but suddenly I was living every day as though it might be her last.

I finally understood the meaning of unconditional love. This little person couldn't even breathe on her own. She may not survive the day. The future was more terrifying than hopeful. All we had was now. All we could do was to love her, and to expect nothing in return.

A few days after she was born, the doctors did a head ultrasound to make sure everything was ok. The results were not what we had hoped for. There was bleeding in her brain. The doctors said that if she survived, she would most likely be disabled. The next week I noticed a disturbing trend in her charts -- her head was growing too fast. The bleeding in her head caused hydrocephalus, an accumulation of fluid in the brain. She would need brain surgery. 

The following months were the most terrifying ride I have ever experienced. The complications kept having complications. First she had to be flown to San Francisco, because there are no pediatric neurosurgeons in New Mexico. Then she had surgery. Then more surgery. Eventually she came off the ventilator. Then she got meningitis and stopped breathing. Then more surgery.

The hole was deeper than I ever could have imagined. Sometimes, the fear and darkness were unbearable. It felt like death would have been easier. It was all I could do to breathe. Inhale. Exhale. Repeat. The future was too terrifying to imagine. The past was a reminder of all that I had lost, a life of hope and joy. But most moments, on their own, were ok. I could sit in the hospital and hold my baby. I could appreciate every moment with her. I could love her unconditionally. We were together, for now, and we were both breathing. 

Eventually she was well enough to go home. The first year was very difficult, but in time she grew strong, and today she is a healthy, beautiful, and fiery seven year old girl. Every day, her presence is a reminder of what truly matters.

In every tragedy, there is a gift, if we are able to see and accept it. From my brother, I received a personal understanding of death, and a constant reminder to live my life as though it may end at any moment. From my daughter, I learned what it means to love unconditionally, without expecting anything in return, a true gift.

These gifts were delivered at great cost, but still I often struggle to retain them. Life gets busy, and I forget what matters. But the reminders are all around us, if only we can open our eyes.

When our lives are smashed to bits, and it feels like the ground has disappeared from under us, we look for guidance, for our North Star, for a light that can provide meaning and direction to what remains of our life.

For me, this light lies in unconditional love. This is something that I wish to remember not only at an intellectual level, but at a more visceral level as well. I want to feel truth.

So I made a simple story, a fable. Stories are powerful because they engage our imagination, bringing abstract concepts to life inside of us. This one uses the familiar characters of God and the Devil, but you needn't believe in anything supernatural to understand it.

Long ago, the Devil boasted that he could easily gather more followers than God. God's way of gathering followers was simple: give everyone Unconditional Love and Forgiveness, nothing more and nothing less. Naturally the Devil was more devious. He knew that most people would not knowingly follow the Devil, so his plan was to lie and claim that he was the One True God, promise his followers a great reward in the afterlife, and threaten that those who didn't worship him would be sent to hell when they died. God was betting on Love, but the Devil believed that Greed and Fear are stronger than Love, and therefore even good people could be tricked into following him.

The God of Unconditional Love and Forgiveness brings union through love. The false Gods bring division through fear and greed. If a God promises to reward you with 72 virgins in paradise in exchange for flying an airplane into a building, it's a false God (or a false image of God, if you prefer). If a God threatens to send you to hell for loving the wrong person, it's a false God. If a God tells you to coerce people into worshiping him, it's a false God. If a God promises protection in exchange for doing his bidding, it's a false God.

Genuine, unconditional love is a gift that must be freely given and freely accepted, with nothing expected in return. Love can not be delivered at gun point, or with the threat of eternal damnation.

In this winter of fear, suffering, and division, the God of Unconditional Love gives comfort and direction. His spirit is reborn in our hearts when we give the gift of unconditional love and forgiveness to others and, most urgently, to ourselves.

Friday, March 9, 2012

Eight years today

The car in front of me kept hesitating. The driver couldn't seem to decide where to turn. Up ahead I could see that the light was green, but that I wasn't going to make it through in time because this car was in my way. I started to feel slightly agitated, but reminded myself to simply accept the current situation. I can't even see the other timelines, maybe this one is somehow better. It's a practice that I had started while my daughter was in the hospital. Accept. Accept. Accept. Slow drivers are a rather minor stress relative to a having a baby that may not survive, but the practice is remarkably similar. And the key to practice is repetition, every day, every moment. Traffic provides me with plenty of opportunities to practice. 

Finally she turned in to the parking lot at Trader Joe's and I proceeded to the light, which was now red. It soon turned green, I crossed El Camino, and then stopped for the passing train, which was immediately in front of me. After it passed, I saw his body on the ground just to the other side of the tracks. I saw other things there too, but I'll spare you the details. I tried calling 911, but I got a recorded message saying that they were busy. Obviously I wasn't the only one calling. The police soon arrived, and directed us to turn down a side street, away from the scene. 

I then turned left on Waverley St, and slowly drove past my brother's old apartment, pausing to remember all that had transpired there. But my mind was still preoccupied with what I had just seen, and it didn't even register what day it is today. 

The winter of 2004 felt so cold and rainy, the coldest I can remember it ever being here in California. The cold had a kind of depth that you can't quite escape. But on March 9th it was sunny and starting to get a little warm. Winter was over, and my brother had just died that morning. We left the hospital and returned to his apartment in Menlo Park. It felt so wrong. He was gone, but his belongings were still there. Eventually we would have to pack them all into boxes, keeping some for ourselves, and donating the rest. It does not feel good to pack up the remains of your brother's life.

It had only been three months since he found out. We had dinner Sunday night at a Chinese restaurant in Mountain View. Afterwards, he was feeling a little nauseous and went home early. After a few days of not being able to keep any food down, he went to the doctor. He had an intestinal blockage. Caused by a tumor. Pancreatic cancer. The very bad kind. It eats you alive, and in his case, it also blocked his own food supply. Although his death was rather quick, it was also very slow. Three months of torture, but I'll spare you the details. He was only 33 years old. Steve was a very good person. He did not deserve that. Nobody does.

After the funeral, I returned to work. Sometimes, it's wonderful to be able to focus my mind on something simple, something I can control, like computers. A few weeks later we launched Gmail. Later that summer Google had its IPO. Life is unfair. Very unfair.

Eventually my parents finished packing up Steve's apartment and drove back home to New York. I didn't even begin to understand what they had gone through until the following year, when my daughter was born 100 days early. There were many complications, and it often seemed like she wouldn't make it, but I'll spare you the details. The pain is worse than you can imagine. It's worse than I can now imagine. Luckily she survived and is doing well. She has the strongest spirit of anyone I've ever met.

And that brings me back to today, March 9th, 2012. Eight years since Steve died. I keep looking for meaning, but all I've found so far is that in order to be at peace with the present, we must be at peace with the past, because the present is a product of the past. Accept. Accept. Accept. Learn to love the present moment. What happened, happened. It's difficult to understand the big picture when our lives are mere brush strokes on the canvas of reality. Trusting that it all fits together to form something beautiful is the purest form of faith. Anything else is a dangerous distraction. No contracts with God, no expectations of reward, just trust.

On a more practical level, what matters most in our day-to-day lives is that we're good to ourselves and to each other. It's actually not possible to only do one or the other -- we must do both or neither, but that's a topic for another time. Sometimes, when I write about startups or other interests of mine, I worry that perhaps I'm communicating the wrong priorities. Investing money, creating new products, and all the other things we do are wonderful games and can be a lot of fun, but it's important to remember that it's all just a game. What's most important is that we are good too each other, and ourselves. If we "win", but have failed to do that, then we have lost. Winning is nothing. This doesn't mean that we can't push ourselves or stretch our own limits. Those things can be very healthy, but only when done for their own sake. Ultimately, the people who learn to love what they do who will be the ones who accomplish the most anyway. Those who push only for the sake of some future reward, or to avoid failure, very often burn out, sometimes tragically. Please don't do that.

Please be good to each other, and your self.


Saturday, August 20, 2011

I am nothing

On a scale of one to ten, how good of a cog are you? How well do you function in your assigned role? How much of a man or woman are you? How do you rate yourself as a son or daughter, father or mother, wife or husband, heterosexual or homosexual, liberal or conservative, black or white, winner or loser, shark or sheep, introvert or extrovert, Christian, Muslim, atheist? How smart are you? How rational? How emotional? Do people like you? Are you getting ahead, or falling behind?


How do you know? Are you keeping an eye on the others in your category, comparing to see how you measure up to your peers? Is it more important for a man to be tall, or to have good hair?


This is, of course, the path of insanity, and not the good kind of insanity.


What will you do if you're too tough to be a good woman, too sensitive to be a good man, too selfish to be a good husband, too lazy to be a good employee, too shy to be a good friend, too caring to be rational, too fat to be pretty, too effeminate to be straight, too introverted to be a good leader, too smart to be kind, too young to be taken seriously, too old to make a difference, or too far behind to even get in the race?


These are all false standards and false dichotomies, but they are so common and so ingrained that we sometimes believe in them without even realizing it. And this leads to a mountain of insecurities, because nobody measures up to these crazy standards (and nobody should). But even if we don't believe in these things, it still matters what other people think, right? What will the neighbors think? Or how about our co-workers, or the people at church? And so everyone works to hide their insecurities, and they look around at their peers for comparison, and maybe they feel bad because everyone else seems to have it easy, to have it all figured out. The truth is, nobody can see the truth anymore. They are all working to hide the truth, because the truth is that they are afraid of who or what they really are. So they all put on a show, and they pretend to be a good whatever. Or maybe they rebel, and make a point of being a bad whatever, but then they are still under the control of that false standard, and they are still not being themselves.


That is all so exhausting. 


I am nothing. It's simple. If I were smart, I might be afraid of looking stupid. If I were successful, I might be afraid of failure. If I were a man, I might be afraid of being weak. If I were a Christian, I might be afraid of losing faith. If I were an atheist, I might be afraid of believing. If I were rational, I might be afraid of my emotions. If I were introverted, I might be afraid of meeting new people. If I were respectable, I might be afraid of looking foolish. If I were an expert, I might be afraid of being wrong.


But I am nothing, and so I am finally free to be myself.


This isn't license to stagnate. Change is inevitable. Change is part of who we are, but if we aren't changing for the better, then we are just slowly decaying. 


By returning to zero expectations, by accepting that I am nothing, it is easier to see the truth. Fear, jealousy, insecurity, unfairness, embarrassment -- these feelings cloud our ability to see what is. The truth is often threatening, and once our defenses are up, it's difficult to be completely honest with anyone, even ourselves. But when I am nothing, when I have no image or identity or ego to protect, I can begin to see and accept things as they really are. That is the beginning of positive change, because we can not change what we do not accept and do not understand. But with understanding, we can finally see the difference between fixing problems, and hiding them, the difference between genuine improvement, and faking it. We discover that many of our weaknesses are actually strengths once we learn how to use them, and that our greatest gifts are often buried beneath our greatest insecurities.


Letting go of your identity can be difficult and takes time, possibly forever, but as with any change, moving in the right direction is all that really matters (which is why you shouldn't compare yourself with others -- you didn't start in the same place or with the same challenges). Fortunately, we have a variety of emotions that can help us: pride, anger, fear, jealousy, insecurity, unfairness, embarrassment, bitterness, etc. These are sometimes portrayed as bad emotions, but there's no such thing as a bad emotion, just bad responses to emotions. (For example, torturing children is a very harmful response to fears about your own sexuality) If we instead use these emotions as a cue to remember, "I am nothing", let go of our identity, and examine why we are feeling the emotion (typically because something has threatened our identity) then these emotions are actually beneficial. They point us towards the buried truth.


True self improvement requires becoming a better version of our selves, not a lesser version of someone else. But without self acceptance and understanding, how can we even know what that looks like or whether we're headed in the right direction? It would be like putting the final touches on the Mona Lisa while picturing some celebrity you saw on the cover of People magazine -- the result would be a mess. Until we let go of our mental images of who we are or who we should be, our vision remains clouded by expectation. But when we let go of everything, open ourselves to any truth, and see the world without fear or judgement, then we are finally able to begin the process of peeling off the shell of false identity that prevents our true self from growing and shining in to the world. And it starts with nothing.


Wednesday, February 2, 2011

The two paths to success

The recent WSJ article on the supposedly Chinese style of parenting has generated a lot of interesting discussion. The most amusing commentary comes from The Last Psychiatrist, who also points out that Amy Chua, the "Chinese" mother, was actually born in America. There were also claims that the WSJ misrepresented her views, which may or may not be true, but is ultimately irrelevant since it's the ideas that are being debated.

Here's the part of the article that interests me:
What Chinese parents understand is that nothing is fun until you're good at it. To get good at anything you have to work, and children on their own never want to work, which is why it is crucial to override their preferences. This often requires fortitude on the part of the parents because the child will resist; things are always hardest at the beginning, which is where Western parents tend to give up. But if done properly, the Chinese strategy produces a virtuous circle. Tenacious practice, practice, practice is crucial for excellence; rote repetition is underrated in America. Once a child starts to excel at something -- whether it's math, piano, pitching or ballet -- he or she gets praise, admiration and satisfaction. This builds confidence and makes the once not-fun activity fun. This in turn makes it easier for the parent to get the child to work even more.

She has two main points here: 1) Learning is not fun and 2) It's important to make kids dependent on praise and admiration.

One of the problems I've faced throughout life is that I'm kind of lazy, or maybe I lack will power or discipline or something. Either way, it's very difficult for me to do anything that I don't feel like doing. If I try to force it, my energy disappears, and I hate life. Furthermore, not only were my parents not Chinese, but they had five kids, so there wasn't time for Amy Chua's style of parenting. I kind of had to figure it out on my own.

My strategy can be reduced to two rules: 1) Find a way to make it fun and 2) If that fails, find a way to do something else.

For example, I didn't really like school, and I especially hated homework, so I turned it into a game to see how little time and effort I could possibly waste on it while still getting "good enough" grades. I barely made it into the top 10% of my public high school class, so I probably wouldn't be accepted into whatever college Amy Chua has picked out for her kids, but I find that I really don't care. Instead, I went to a "good enough" college, slept through most of my classes, then got a "good enough" job after graduation. Meanwhile, I taught myself how to program and build all kinds of things, which to me was much more fun than school.

I'm not going to claim that my approach is superior to Amy Chua's, or that it will work for everyone, but I do think it provides an interesting contrast.

Amy Chua's approach is based on extrinsic motivation. Children must do exactly what they are told to do, and they must not be happy unless an external authority gives them praise and admiration. They must learn that their own internal motivations and judgement are worthless and not to be trusted. They are successful when an external authority, such as an Ivy League school, tells them that they are successful.

The extrinsic path to success is to focus on being the person you are told to be, and put all of your energy and drive into fitting that mold.

The approach I stumbled into is based on intrinsic motivation. To the greatest extent possible, do whatever is most fun, interesting, and personally rewarding (and not evil). External constraints, such as the need to go to school or make money are simply obstacles to be hacked. Be skeptical of external authorities, as they are often manipulating you for their own benefit, or for the benefit of the institutions they represent (often unknowingly, as they were already captured by the same systems which are attempted to ensnare you). Your identity comes from within -- external recognition such as degrees and awards are only of tactical importance -- don't allow them to define who you are.

The intrinsic path to success is to focus on being the person that you are, and put all of your energy and drive into being the best possible version of yourself.

Of course this leads to the question, "What is success?" Someone who spent his life working 80 hour weeks, living in hotels, and fighting his way up the corporate ladder to become VP of toilet paper marketing would probably consider himself more successful than a sandwich shop owner who spends his nights and weekends playing with his kids and working on hobby projects, but maybe the sandwich shop owner would be happier and healthier. Ultimately, it is up to each person to decide what success means to them, but I think it's important that everyone be mindful of the decision they are making. 

It's often said that people become entrepreneurs because they can't handle a regular job. Perhaps these people are simply too "defective" to fit into any mold, or maybe they lack the extrinsic motivation necessary to care about bosses, performance reviews, and other things which are so important for success in the corporate environment. However, what they do have is the creativity and natural sense of direction necessary to run their own business. I doubt that this is a coincidence.

As explained in this TED talk by Dan Pink, extrinsic motivation is a great way to get people to do boring and repetitive tasks, but it actually harms performance on more creative tasks. Creativity is a surprisingly fragile thing. It comes from deep inside, and external concerns (most especially, "What will people think?") seem to scare it away. But that's a topic for another time.

Of course, intrinsic vs extrinsic motivation isn't a completely black and white distinction, and we probably can't survive entirely on one or the other (I aim for 90% intrinsic). I also doubt it's possible to simply "switch" from extrinsic to intrinsic motivation. It's a skill like anything else. It takes time to find your internal voice, learn when to trust it, and stop fearing outside opinion (closely related: ego-fear).

Amy Chua's book was about parenting. Her style is based on extrinsic motivation. How do we raise successful, intrinsically motivated children? I'm sure someone will leave book recommendations in the comments -- Alfie Kohn comes to mind. However, I suspect that one of the most important factors is how we live our own lives. If we demonstrate that work and creativity can actually be fun and enjoyable, that at least sets an example. If we first solve the puzzle for ourselves, we have a better chance of helping others to find their answer.

Monday, January 3, 2011

Angel investing, my first three years

I started investing in startups with the assumption that I don't know what I'm doing (which is always true), but that the only way to actually learn anything is through experience. Therefore, my goal was to invest in a variety of startups, learn from the experience, help some startups, and hopefully not lose too much money while doing so. I don't have any single criterion for investing. Sometimes, the idea seems good, sometimes the people seem good, and other times I'm just curious to see what will happen. No matter what though, I want to be helpful and learn something interesting from the experience.

I've definitely learned a lot, but the recent Heroku acquisition (for a reported $212 million) made me wonder if I've also reached the point of "not losing too much money", so I did the math. From 2006 (when I started investing) through 2008, I invested about $1.21 million in 32 different companies. About half of those companies were either acquired or are dead/mostly-dead. The other half are still alive and seem to be doing well. The current acquisitions total about $1.34 million, only about a 10% gain, which isn't great, but at least I'm not losing too much. Fortunately, the "still alive" category includes a number of very promising investments, such as Meraki, Weebly, and Wufoo, so I expect the final return will be much better than 10% (which is all gravy anyway, since my primary goal was to learn more and be helpful).

Of the current acquisitions, only two have yielded a greater than 10x return: Heroku and Mint. Unfortunately they were also two of the smaller investments, proving that I don't know what I'm doing, or at least showing that I need to make a point of investing more money into the best companies (Mint was oversubscribed, but I don't remember why I didn't put more into Heroku -- edit: apparently it was also oversubscribed).

It's worth noting that the highest return was from a Y Combinator company (Heroku, winter 2008). I've been investing in the YC companies almost from the start (Wufoo was winter 2006), and they keep getting better. YC is attracting the best founders, and Heroku is just the tip of the iceberg. The more great YC companies there are, the more reasons there are for other smart founders to join YC, and I find myself asking non-YC companies why they aren't yet in YC. This trend definitely contributed to my decision to join YC as a partner.

There were also a couple of medium-sized acquisitions (AppJet/Etherpad and 280North) and several smaller but still nice (2x-3x) exits such as Auctomatic, Parakey, and Zenter. Sometimes people complain about these deals, but as much as I'd like to get a nice 10,000x exit, I'm certainly not going to complain when someone doubles my money!

A few companies (such as ScanScout) were acquired by other private companies, so I include those in the "still alive and doing well" category, since it was not an exit from the investor perspective (no liquidity). Only two companies are officially dead, but there are at least four "zombies" that still exist, but in a minimal form and are almost certainly worthless.

The two bits of advice that I always give to people looking to get started with angel investing are: 1) Assume you'll lose your money and 2) Plan on investing in a large number of companies. (my third bit of advice is to attend YC demo day) I think my experience so far validates this advice. It's important that investors have the right motivations (helping out startups and learning how to be a better investor) and the right expectations. Anyone doing it with the idea that they can simply find the next Google, invest a bunch of money, and then get super-rich is going to be very disappointed. That said, finding the next Google and buying a 1% stake is my current billion dollar plan :)

Tuesday, December 21, 2010

Four reasons Google is still Awesome

My recent predictions about which Google products will succeed (and which won't) are causing people to think that I'm anti-Google, which makes me sad since Google is probably still the best company of its size, and I really enjoyed my time there. 

Unfortunately, positive stories are never as popular as negative ones, but regardless, it's worth highlighting some of the things that continue to differentiate Google as one of the best companies in tech.

1 - They take big risks. People often point to projects such as Wave as evidence that Google has "lost its magic" or something. To me, it's evidence that they are still willing to take risks on new ideas and new ways of doing things (Wave was run as a completely autonomous project in Australia). If everything you do works, then you're not taking many risks and probably aren't innovating either. Obviously, if everything you do fails, that's not good either, but there's a sweet-spot somewhere in the middle. Google has enough big successes, such as Chrome and Android, to show that they are somewhere near that sweet-spot.

2 - They are willing to build new technology seemingly unrelated to the core business. When we started work on Gmail, many people said it was a distraction and that Google should focus on web search. Now nobody questions email, but they wonder why Google is developing self-driving cars. From a market perspective, this looks like a lack of focus, but that's a rather narrow way of viewing things. From a broader perspective, it can be seen as a focus on using technology to improve the world. Did people criticize Edison or Tesla for inventing too many different things?

From an employee perspective these non-core projects are also an opportunity for greater autonomy. Part of what made the Gmail project so fun was that we had a lot of independence and could pursue ideas that other people inside Google thought were "the wrong way to do it". Most other tech companies do not offer that kind of freedom.

3 - They compete in positive ways. Many companies compete in ways that actually destroy value, such as using patent lawsuits to slow down or kill competitors. Google's weapon of choice is more often open source and open standards. There's no question that projects such as Android and Chrome have strategic value and work to weaken Microsoft and others, but they also happen to be good for the world. Google has managed to keep their interests surprisingly well aligned with the interests of their users.

4 - They don't seem to mind honest criticism. I'm currently reading a draft of a forthcoming Google book, and was amused to find that it includes an email that I sent back in 2000 trashing our then most recent product launch. It's painful for me to not tell people what I think, so for the most part I try to find people who don't mind hearing the truth (or my take on it, rather). Much of my interaction with startups consists of me telling them everything that I don't like about their product (and then they thank me!). I've worked for a lot of different companies, and Google was the only one where me speaking my mind never seemed to cause a problem. I'm not claiming that I'm always right, because obviously I'm not, but systems (or individuals) that don't welcome negative feedback are doomed. Cultures that don't laugh at themselves are cults.

Talking about Google is always a little tricky for me given my background, but they continue to be a fascinating company and a great source interesting lessons, so I'm going to keep trying. Hopefully I don't come off as a hater or a fan boy, but simply an honest observer.