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I realize the impending Facebook IPO and the resulting soon-to-be-minted millionaires have been covered ad nauseum the past few weeks as we inch closer to their offering, but I still cannot get over David Choe’s potential $200 million payday once this all takes place.  By wisely taking Facebook stock over dollars in exchange for decorating the interior of Facebook’s office, David now stands to cash in on Facebook’s success in a very big way.  If only I had been around in Facebook’s early years to take on random odd-jobs and handy work … maybe I would be planning my first extravagant purchase too.

After snapping out of this momentary daydream and the ensuing depression knowing that I in no way stand to benefit from their success story, I came back down to earth and realized there are always lessons to be learned from these type of scenarios.

Now, I cannot put myself in David’s shoes and insinuate that I know what his thought process was at the time. Perhaps he did have a strong belief that Facebook was heading down the road to great things and wanted to take advantage of a rewarding offer. On the other hand, maybe he was already financially stable and could afford to take a flyer on a situation like this. Whatever the case may be, for someone looking at a new role/job with a compelling startup, there is plenty to be gleaned.

To begin with, I would hope that when taking a position with a startup one would do so because they believe in the company, its vision, its team, etc. Otherwise, what is the point of accepting? Therefore, if someone is going to accept an offer and going to help try to build something big, than why not bet on yourself and the company and seek that stock-based compensation if and when it is an option? It just another reason to push yourself everyday and make sure you are working hard to add value…something OpenView prides itself on and looks for in both its investments and its people.

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Vying for an entrepreneur’s attention is no easy task.

They are tirelessly focused on execution and growing their dream into something exceptional. This, in turn, results in one of the more hectic daily schedules known to man. Pulling 15+ hour shifts is nothing unusual and you can pretty much guarantee they always have a half-dozen people tugging at their shirtsleeves, vying for their attention. Whether they are running into client meeting or sales pitches, settling into a strategy or product planning session or simply getting caught up on the 900 other things on their agenda, free time is a luxury many do not have. Therefore, for someone in my shoes who is trying to connect with entrepreneurs for venture capital investment purposes, we need be sure we are maximizing your chances of connecting while also accommodating their schedules.

Simply hunkering down at your desk every day, mindlessly pounding away on the phones is akin to trying to push a rock uphill, as you won’t get far.  With any luck you will end up breaking through over time, but at what cost and after how many man hours wasted? Now, I am not saying good cannot come from this approach, as I do mix in a very healthy dose of active, phone-based outreach every day, but it is far more effective when coupled with a little foresight and planning. It may be far easier for these entrepreneurs to chat live for a few minutes at the beginning of the day before the awaiting whirlwind of activity hits, or perhaps later in the evening once they have had the chance to unwind. Therefore, a more concentrated effort during these hours could produce great results.  Also, you can always express your interest in connecting via email or LinkedIn, allowing them the chance to reach out once they have a minute to themselves.

If they are up to something special, there is no doubt that they are being contacted by numerous other parties, so they will most likely pick and choose whom they wish to engage with in the interest of time savings. At this point, it becomes a question of standing out in the crowd, and hopefully your prep work and planning allows you to get that foot in the door. With a well-crafted introductory note that really explains your interest in the business and sector, hopefully the entrepreneur will realize you are not just calling to ask about random revenue figures and statistics, but out of a genuine interest in the business.

In the end, it all boils down to results. So while working hard is great, you also need something to show for it.

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As 2011 winds down and I wrap up my last blog entry of the year, I figure what better way to close things out then by putting together a little New Year’s wish list for 2012. Here it goes….

• Continue to help our portfolio companies build something great and be an ongoing resource for their development
• Do our best to deliver as much value add as we can to everyone in the portfolio
• Great exits and investment results!
• Make some great new additions to the portfolio!
• Continue to grow the OpenView brand in the venture community and continue to grow the existing, kick a$$ team we already have in place.
• Lose 10 lbs

OK, the last one isn’t OpenView related but oh well. Enjoy the holidays everyone!

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Even though I connect with a long list of startups on a weekly basis, there are always those that stand out from the crowd. Unfortunately, in many cases it is not because said companies are growing like a weed and looking to raise money from OpenView. While these interactions get the team excited and kick off a diligence process on our end, some of the conversations I remember most do not result in an investment and instead leave a rather sour taste in my mouth.

My colleagues and I completely understand that being on the management team of an expansion stage company can be stressful to say the least. You are consumed with growing your company into something special, and at any given moment you can have 10 people tugging at your shirtsleeves vying for your attention, if only for a few minutes … there is budget work to be done here, we have key positions that need to be filled, there is a big client in the pipeline that we need to lock up…..the list goes on and on. With all of these tasks building up, I understand that fielding calls or meetings from potential investors can be a big distraction from what matters most to the business at a certain point in time. Furthermore, in many cases these CEOs have been burned by VC funds in the past, thus leaving a sour taste in their mouth. Other funds have perfected the art of not following up with prospects after that initial interaction as well, another sure fire way to give the venture industry a bad rap.

That being said, let me stress to you that we are not all the same, and I am here to explain why OpenView strays from the norm in so many ways!

As it is often said, you only have one opportunity to make a first impression. Therefore, I am quite surprised when these individuals’ responses to our queries are filled with nothing but harsh words mixed with a little spite. While I completely respect that your time is precious, a courteous “thanks but the timing is off” will certainly do. Also, in many instances I have referred prospect companies to other funds that may be a better fit given their particular stage, or even potential clients or partners that could prove beneficial to one another.

My point is, if you go into a meeting with the right attitude and mentality, there is plenty to be gained if you keep an open mind.

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Bill Maris from Google Ventures recently did an interview that was posted in the WSJ Venture Dispatch. It was a forward-looking piece focusing on what lies ahead in 2012 for the venture community. While a variety of topics were touched upon, a few in particular really mesh well with OpenView’s mentality and aspirations as we scour the landscape for the next addition to our portfolio.

When asked about issues facing the venture industry as we head into 2012, Bill has a direct, straight forward answer: it is crucial that we know “how to find and partner with the entrepreneurs who will create the most impactful business in the years to come.” If it were an easy task, every venture fund would be hitting a home run with every check they write, but there is an art to the process and a lot of legwork to be done at the outset.

Bill also alludes to the need to identify those entrepreneurs that are committed to building something big. Often times, when chatting with expansion stage CEOs, we connect with some very talented folks who have grown rather successful business to date, but the spark and hunger isn’t immediately noticeable. They may be happy with a very profitable business that allows for a comfortable lifestyle and, due a degree, a far less stressful day-to-day existence. However, at OpenView we want to see that desire to go above and beyond. These entrepreneurs immediately start asking pointed questions about how, if they were to partners with our fund, we can assist them in their goal to continually push the limit, get the most out of their resources and build something special. These types of questions are music to our ears and are proof that we are talking to the right individuals

With those type of founders on board, it then becomes a matter of executing and reaching that lofty potential.