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to do that after hours so the whole office doesn t smell like burned cheese. Later, we had forklifts and conveyor belts and the whole thing, because we had palettes of software we had to ship around the country. I never had a college class on any of this.
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Livingston: There were no mentors People who had gone through it before Winblad: It was so new. There were many mentors who had gone through
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business we had a great lawyer. But he d never built a software company. He didn t ship booths around the country or shrink-wrap software. Or license software. Nobody had. Rumor has it that Lotus thought it was so cool to have the shrink-wrap machines that, whenever they d ship a new product, they would shrink-wrap the head programmer and unwrap him quick before he smothered to death. I don t know if that s fact or fiction. So for us, it was never stressful because we didn t feel the cadence of competitors on us. It was tiring and it was hard, but it was a lot of fun. It was like, OK, now what
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Livingston: Was there ever a time when you wanted to quit Winblad: No. You also learn how to optimize your time, and you get really good at that. You do it wrong and I see entrepreneurs do this, Let s get up earlier and stay up later. I started putting the stuff I needed to read in my bed so, when I d wake up, it would be there to read, so I d maximize my time. You re young, and you are really sort of superhuman. But you are not very efficient doing that, so that s where people who become your business colleagues start saying, That s not going to work. That s stuff that you do get help from friends and advisors. Like, Hey, you are better off taking a month-long vacation and turning stuff over and getting fully rested and charging at it again than trying to figure out how you might personally live off 4 hours of sleep a night forever. Livingston: Looking back, do you think you were a typical founder Winblad: Yes. I think that I had all the good parts of a typical founder and all the bad parts of a typical founder. You get good at figuring things out so that you don t just view every problem as if it needs a brand new lens, which, of course, it doesn t. And you learn on the job, so you do a lot of things poorly. Unless you ve managed people before, you don t really know how to do that well. So you have to build skills. I think it s really interesting being a venture capitalist because, when you ve got 30 years of experience, then your challenge is how to teach and not tell. Because you want people to figure it out. You want to make sure that you can grab them by the coattails if they are falling off a cliff, but you want them to discover the edges by themselves. That s the biggest challenge of moving from being a business leader to being a business investor. Your job is not to tell, but to teach. Livingston: Do you think you are a better judge of good management teams because you were once a startup founder yourself
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Winblad: Oh yeah. Because you see examples all the time. I do personal refer-
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ences myself. Whenever I m going to join a board, I will ask people for personal references. Your friends, your business colleagues, whatever. I ll address these references as these are not going to make or break this deal, but I want to understand this person. How do they work, how do they think How do they get themselves in corners Or twitterpated What do they need to be surrounded by to be successful You do learn that people get to be fully formed adults fairly early and it s hard to change people s behavior, although it is easy to cushion how they behave with people that buffer their weaknesses. As you go along, you get more microscopic in understanding people before you invest in them if you are going to sit on the board specifically. You can t fully trust your judgment because some people are good actors, but it s always interesting talking to people s personal references.
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Livingston: What kind of mistakes do you see new entrepreneurs make Winblad: One of the big mistakes is that, when you form a company, there s a
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difference between being an inventor and being entrepreneurial to leading a company being the CEO or, especially, the leader. You re not fending for yourself anymore. You re actually fending for shareholders. They can t be fending for their salary; they can t be fending for their net worth. They have to really focus on building value in the company for all shareholders. That sounds very sort of lawyerish, but it s true. Some never can make that jump fully. So engagement is never on building the company while someone is watching to help them along. Just like George Ryan, at CADO, which I mentioned earlier he needed my company to be successful in order for all the software to work for his resellers. He needed me to be successful because I was a core component of the company. So he was not just looking out for me, he was looking out for my company as well and making sure I learned how to look out for my company. And that jump to It s not about you; it s really about a broader thing, the company, which broadly is the shareholders, which broadly is the customers, which broadly is the employees, which broadly is your mission, which broadly is the values you bring into the company. There are some entrepreneurs that never really fully get out of the me thing. And that changes them from being the inventor entrepreneur to being the business leader entrepreneur.
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