In the previous articles in this series I write about my experiences as a 50+ entrepreneur and advocate for later-in-life workers.
Taking the better part of a week to attend a conference is a big commitment. There is a list of critical to-dos waiting in the office. But, when given the opportunity for a free pass to Jason Calacanis’ Launch Scale Conference it did make sense to make the time. The exposure to other founders, investors, and the whole startup ecosystem can’t be done as efficiently in other ways.
Working in focused isolation doesn’t always move the needle or open the door for other points of view. You have to get out there and interact with people who are going through what you’re going through. You can also meet people who can make a big difference in what you’re doing.
I wrote about Calacanis’ history and style so was happily surprised that my simple observation was very off. The guy is a brash New Yorker, no doubt about it, but that is countered with a sincere interest in helping founders. It quickly became obvious that while doling out real-world realness, he wants the young companies to succeed. The straight-forward feedback is the nicest thing he could do.
Calacanis exhibited a lot of energy in a program that was tightly produced and fast-paced. He has a knack for interviewing people honed through his podcast ‘This Week in Startups’, which he’s been producing for 5 years. He also has been around the scene long enough to have a historical perspective and a broad understanding of the startup scene.
Jacqui Deegan is the Executive Producer for the conference, the podcast, and other events from the mothership Launch.co. Her experience in Emmy winning television at Boston’s PBS affiliate WGBH is obvious. The pace and rhythm kept the days moving along and interesting.
Facebook Is Way Out Of Favor
The topic of the toxicity and laissez-faire privacy policies at Facebook was a recurring theme. You could feel the collective disgust with what social media has become coupled with the intentional manipulation of users at any cost.
When the topic of whether Facebook (and Twitter) would wither away with the regulatory scrutiny and general ‘outrage fatigue’, the speakers had a few points of view.
Hunter Walk a partner at Homebrew suggested that each generation will want their own ‘turf’ or social network to claim as their own. Walk was the product lead for YouTube during the big growth period there, so he knows a thing or two about community effects.
Chamath Palihapitiya (more on him later) of Social Capital was less optimistic. As the former head of growth at Facebook, he famously said that social media as we see it today is “ripping apart the social fabric of how society works.”
Given the amount of money that keeps getting poured into the Facebook ad product from startups, it raises the question of who all is complicit in nurturing the FB juggernaut. Facebook management or the companies that keep contributing to their bottom line?
Venture Capital Is A Ponzi Scheme
Palihapitiya joined Calacanis for a one on one talk about the state of venture funding, but it quickly turned into a personal outpouring of Palihapitiya’s personal journey. His wildly successful firm and hedge fund was the darling of the investment world. He could be found around the world growing the biggest funds and investing at a head-twirling pace.
He described a growing sense of ennui and ‘a hole in his soul’. He took a good look at what was driving him. It exposed legacy insecurities: I’m not white enough, I’m not educated enough, I’m not good enough. So he pulled the reins in tight and slowed down the whole circus he had created.
It was a startling confession in a setting that promotes faster moves for more financial success. It was also authentically from his heart and experience.
Without missing a beat, he then launched into his theory that the venture industry is a ‘big ponzi scheme.’
"We are, make no mistake … in the middle of an enormous multivariate kind of Ponzi scheme,"
Palihapitiya slammed the start-up cycle of raising funding rounds and spending money to boost user growth to attract bigger funding rounds.
"It's all on paper, but it looks amazing," Palihapitiya said. "You've been told to grow, so you're growing. You're doing your job."
Wow! I wasn’t expecting that, but I have to admit, there’s some truth to what he’s saying.
There’s More
Next I’ll report a few more highlights from the conference: Next Door CEO Nirav Tolia, Craig Newmark of Craig’s List, Investment Syndicates, Funders For Change.
Previous articles in the series:
- A Conference Talk Leads To What’s ‘Next For Me’
- The Story, The Advisors And The Team
- Putting A Legal Structure In Place
- Spreading The News And Early Investments
- Testing The Facebook Ad Waters
- The Modern Elder Academy
- Can Your Startup Start A Movement
- Meeting Matter.vc
- Becoming A Caregiver Statistic
- Talking To Our Audience
- Making Assumptions And Forming Hypotheses
- How To Cope When You're Alone Again On The Startup Journey
- Developing The Brand Architecture
- Raising An Angel Round and Perception
- A Fellow Entrepreneur Offers Guidance
- The New Pitch
- Gracefully Radio Interview
- Ready For Anything, Even Wait And See
- Always Be Publishing
- Getting Out Of Your Head
- Activating A List Of Investors
- In The Details Of Subscriber Growth
- Interview: StartOut
- Keep On Connecting
- Backing Away From Facebook And Twitter
- Sell Your Product, Not Stories To Investors
- Building An Event Business
- Finding Comfort With Agility
- The Zen Of My Company
- I Got This
- Mapping Our Business Plan
- A Coaching Session and Going Bigger
- Meeting The Competition
- How Writing Boosted My Confidence
- Attending Jason Calacanis’ Launch Scale Conference
- San Francisco Here I Come
