Archive for May, 2008

Avoiding the Shareholder Rep Problem

My partner, Jason Mendelson, had a post yesterday on AskTheVC about our view on the problem of figuring out who will have to serve as the shareholder rep following the closing of M&A deals.  For anyone who doesn’t know what this shareholder rep issue is, Jason does a good job of briefly explaining it. 

We’re pretty much done serving as the rep on these transactions.  It’s been a problem for us for years, but we’re now working with and advising a company called Shareholder Representative Services that professionally manages the post-closing process so that we no longer have to get stuck with this job.  We also get better information and results when SRS is our rep than when one of the other stockholders takes the job.

See Jason’s post more background on what this shareholder rep issue is and why we try hard to avoid it.

Pinch Media

We’ve made an early stage investment in a company called Pinch Media which launched their first tool for iPhone developers today - free analytics for iPhone apps. My partner Brad, who has joined Pinch’s board, posted our reasons for making…

Graduation Day

I had breakfast with Reverend Jesse Jackson about two weeks ago. He was in New York City to visit foundations, trying to secure support for the fall launch of a program designed to reverse the dire drop-out rates of African American males from high schools. In fact, one third of all Americans drop out in the course of high school and half graduate without adequate skills for college or a “decent job” according to the Alliance for Excellent Education. Fifty five percent of African American males did not receive diplomas with their cohort, according to the Schott Foundation. Also in New York City, Miami, Detroit and Chicago, 65-75% of black males do not graduate with their class. White males are twice as likely to graduate from high school as black counterparts in New York and Wisconsin (76% and 38% in NY, 84% vs. 38% in Wisconsin).

For global comparisons, the Alliance for Excellent Education says the US ranks 18th for high school graduation rates, 15th in reading rates and 25th in high school math. Even worse, according to Rev. Jackson, 90% of the 1.1 million African Americans presently serving time in US prisons are high school drop-outs. Janice Hale, author of Learning While Black, says “For many black males public schools are a one way ticket from the school house to the jail house.”

Reverend Jackson attributes this malaise to a “crisis in effort.” He believes that there can be a virtuous circle created, starting with Attendance, then Attention in the classroom, Graduation then Employment. “The foundation of this must be the parent,” he contends. “I want parents to sign a pledge with teachers to do the following:

• Parents take their children to school at the beginning of the year to show the importance of education in the home
• Parents and teachers exchange home or cell phone numbers
• Television is off in the home for three hours a night
• Parents are involved with homework, making sure it is done and done well
• Parents pick up the report cards from school
• Parents take children to church or synagogue

What can be done by the PR community to reverse this dynamic?

Bob Herbert of the New York Times wrote on May 17, 2008 about a $100 million gift by the AT&T Foundation that aims to “address high school drop-out rates and improve the readiness of American teenagers for college and the real world of work.” The CEO of AT&T, Randall Stephenson, said he was having “trouble finding enough skilled workers to handle the 5,000 customer service jobs he had promised to bring back from overseas.” Whether initiated by the internal PR team or by our worthy competitor Fleishman Hillard, this program is a perfect example of PR leading through good purpose.

Another alternative, albeit at a lower price point, was when Edelman began offering paid after school internships for high school students through the Inner City Scholarship Fund in the early 1980s. Never have I been so proud as seeing Lazaro Benitez, who began his career in PR as one of those interns, running the communications office for NYC 2012, the city’s bid for the Olympics. Last year, more than 60% of Edelman’s summer interns were minorities. Whether through our creativity or our job creation, by tying in with Rev. Jackson’s fall initiative or initiating others, we have a responsibility to be part of the solution, not simply bystanders on the sidelines. I appreciate your suggestions on how we can help.

Doriot Quote Of The Day

At early board meetings, I would try to give an accurate accounting of the profit and loss. He would look through me and ask what I really thought about when I was shaving. High Voltage Engineering CEO Denis Robinson, about…

Web Discussions: Leaving The Instigator Out

I know that this has been discussed in great detail already. And I have a vested interest in this debate with our firm’s investments in the disqus third party comment system and also twitter which is part of the problem….

One Way to Help the Troops: Send Them to Vegas

The war in Iraq war spawned all sorts of charities to help returning soldiers. But Sheldon Adelson, the billionaire casino king, has decided to help the war effort in his own way: by bringing wounded soldiers to Vegas.
According to this Associated Press article by Oskar Garcia, Mr. Adelson brought 40 wounded soldiers from Walter Reed [...]

Doriot Quote Of The Day

The hardest part is to help a company through it’s growth pains. That is particularly hard because we have to work with others. He was talking about the venture business and it’s true. There is nothing harder than watching a…

What Do You Suck At?

The concept of "sucking" has been a recurring theme in my work that I’ve co-opted for the good of the universe.  I’ve written about it plenty on this blog, including the origin of the concept - the motto of my first company - We Suck Less. 

At last night’s TechStars orientation, one of the exercises that David Cohen had everyone in the room do was talk about one thing they suck at.  Mine was portion control.  I eat too much.  If there is a full plate of food in front of me, I will eat it.  I like to live an abundant life and I have trouble limiting my abundance when it comes to eating.

We only went around the room one time, but as David noted we could easily go around ten times and have everyone self-identify nine other things they suck at.  The meta-message was that we all suck at some things; understanding them and being able to articulate them is the first step to addressing (or managing) them.

Ironically, I had done a pretty good job on portion control all day until I showed up at the orientation. I had a nice modest dinner at The Kitchen beforehand that I topped up at TechStars with a nice big plate of Noodle’s Mac and Cheese.  I did manage to stop after one plate.  Fortunately I ran for two and a half hours in the morning.

Intense Debate on TWiT

Intense Debate founder Jon Fox is a huge Leo Laporte / TWiT fan so it’s super cool that he ended up on net@night with Amber MacArthur talking to Amber and Leo about Intense Debate’s commenting system.  The interview with Jon and Intense Debate CEO Tom Keller is about halfway through the show.

I’ve been really pleased with the progress Jon, Tom, and team have made with Intense Debate.  A year ago when Intense Debate showed up at TechStars, Jon and his co-founder Isaac had an idea for an online consumer debating site.  This morphed into the comment replacement system that is Intense Debate.  I’ve long talked about comments being the dark matter of the blogosphere; Intense Debate helps to make them (and the ensuing conversations) much more relevant and useful. 

Features are coming fast and furiously.  Last week Intense Debate integrated with Lijit (so you can now include your comments in your Lijit search profile) and the reply by email feature is now out - I’ve been using it for about 60 days and it’s awesome.  Look for Twitter integration this week along with maybe another magic special thing depending on how many all nighters Jon pulls.

Intense Debate is growing like crazy.  If you have a blog and are still using your native commenting system, take a look at Intense Debate

As a special bonus, Jon has a blog and have been putting some of his startup thoughts out there.  You can follow along at home at Jon Fox: The ramblings of a young, web entrepreneur.  His latest - Those dreadful early decisions.

Discussing Web 2.0

There are two web 2.0’s. There’s the mantra that has come to define the second “up move” of the Internet. Every run needs a name and this one has been called web 2.0. That’s nice enough and if this run…