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The top five “I, too”s of 2019

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Hello readers! Of the yr As we process the conclusion, we’ll have a few posts looking back on the year that was (and maybe one on the decade too; stay tuned for that.)

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This week, a fun post I’ve been looking forward to writing for some time: a look back at my five favourite “I, too, think ____“ moments on Tech Twitter this year. (As you know, “I, too, am contrarian” is to me the iconic line for the tech community, hands down.)

Enjoy as we count down five great times this year that the entire tech community swarmed together to collectively insist, “I, too, believe that ____”, what has been the complete history that encouraged it, and what was the backdrop - the underlying anxiety, performance, or ultimate subtext behind the swarm.

#5: “I, too, believe that the Pitch Memo is a superior format to the Toss Deck.”

What happened? In April Back, Parker Conrad’s new startup Rippling raised their $45 million Series A with a written “Pitch Memo”, of the traditional pitch floor manufactured of powerpoint glides instead. (You can study the memo in this article.)

For the next few days, Review Memos had been the subject of the moment on VC Twitter. Behind the obligatory lip service and obvious posturing, there was an undeniable undercurrent of, “if this captures on essentially, we’re in so much trouble.”

What’s the subtext? Let me be clear, first of all, that I like the idea of pitch memos. I’m generally in favour of forcing functions that make you clarify what you believe, and what you’re trying to convey. (Amazon’s famous six-page memos are a classic example.) I like them, certainly not because they help to make daily life less difficult for VCs or create the originator/VC connections runmore efficiently perhaps, but because they demand better thinking.

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But here’s the problem with that. If you in a location where a toss memo will assist your circumstance, rather than hurt it, then it probably doesn’t matter what you use, because you’re a good investment anyway. Otherwise? Uh oh. Pitch memos don’t improve your case as an investment; they clarify your case as an investment, and your skill as an investor. They’re kind of threatening, to be honest. If you’re founder, Pitch Memo discourse is a bit unsettling: if written memos actually get adopted as a new fundraising standard, you’re also in all probability heading to acquire away from with a great deal significantly less handwaving in the probable.

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Investors have a different kind of challenge. Well, even more considering and posting about the package, most probably - but you can’testosterone restate what the creator previously had written simply just, since in that case you triumphed in’w not appearance clever in front side of your peers. But after that what will be the VC intended to take to the stand on Tuesday? So on the one hand, having the entrepreneur come to you with a memo that’s already written is really helpful. As Conrad appropriately directed out, VCs write up memos anyway for deals they want to present to their peers at partners meeting.

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So it forces the VC to also engage in more critical thinking, and write it down in a way that exposes whether they really know what they’re talking about in front of the other partners - and the founder themselves. Well, I mean, founders want the VCs to do it, and VCs prefer the founders and their other partners to do it, but several folks happen to be in all honesty keen to get under the microscope themselves, and forced to write down something coherent actually. We’d love a better process, but not necessarily one that causes us seem worse individually. No one wants this!

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So instead we did the sensible thing: we praised pitch memos for three straight days, made sure we were all seen as thoughtful writers ready to embrace a new standard of clear thinking, and then gone ideal back again to the identical previous, properly fluffy slide products that we recognize and love.

#4: “I, too, think it’s irresponsible that we all uploaded our faces to Russia.”

What happened?FaceApp, the app where you upload a new photograph and you will be made simply by it outdated, or another gender, or even a ba goodby, or whatever, has viral popularitb peaks from time to time whenever a new filter comes out or simply when people are bored and the time is right. September seemed to be one of those proper moments, as Twitter and Instagram have been total of aged faces - until artificially! A software developer named Joshua Nozzi tweeted out:

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The internet lit up into panic mode, even after Nozzi deleted his original tweet and apologized for creating the strain in a blog post. It became a huge deal, perhaps heading as considerably as the US Senate, where Senator Chuck Schumer and others demanded “answers” about why everyone was uploading their faces to Russian servers. You know how it is.

What’s the subtext? Look, no one is usually in fact all that worried that the Russians possess their deal with. Perhaps some people were genuinely concerned about their whole camera roll getting uploaded to some St Petersburg server, which admittedly could end up being reducing. But everyone obtained worried about searching such as a level in open public really.

Internet security is one of those aspects of everyday life that’s just baked into almost everything we do now. If you loved this post and you would want to receive more info concerning Short Hair Grandma Nude kindly visit our website. It doesn’t help that the world has technologically become so complex, and so opaque, that very few people can honestly articulate what “good stability” actually entails anymore, or what they are or aren’t doing to protect themselves. Getting hacked, or unexpectedly discrediting yourself often, is a perpetual worry. It’s hard genuinely. It’s had some a major epcan be normallyodes in the American cultural zeitgeist for a while - from the 2016 election to celebrities’ leaked nudes to the ransomware crisis hitting hospitals, schools and other institutions.

But then something like this happens, where all of a sudden a collective panic sweeps through everyone as we realize, folks may click on on anything literally. I am the idiot.” Individuals will download anything, and fall for anything. And when something as popular as FaceApp (which, by the looks of it, at least half of my friends and Twitter follows played around with) gets cast into doubt, you see these two shockwaves of recognition blast through the internet: the first being “Oh no, this is bad, people are such idiots” and then immediately afterwards, “Oh no, I did this.

This go-around of FaceApp discourse felt particularly stupid - not the Russia part but the “always assume the worst” part, as if it’s a collective moral failing. We’d already gone through a similar sort of rumour a few months prior, when the idea got tossed around that FaceApp was actually a ploy by Facebook to get us to upload our pictures so that they could train their AI models. (Listen, I’t rather Facebook previously possesses our images.)

So what happens, inevitably, is this huge tidal wave of fake-introspective “tHe pRoBleM iS Us” sermon-ing that helpfully absolves any one person from looking like a mark - the only way to not look silly is to inject fake gravity into the situation, and that’s exactly what we did. Can’t say we don’t look after each other!

#3: “I, too, am concerned that Superhuman puts tracking pixels in its emails without asking consent.”

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What happened? Superhuman, the email productivity tool best known for reinventing the “Sent from my iPhone” flex for a new digital generation, became a Silicon Valley Darling over this past year as VCs and operators alike fought to get past its waitlist.

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Then in June, Mike Davidson (a respected blogger, founder & former VP at Twitter) dropped this tweet that shattered those good vibes in a single shot:

If you somehow missed all of this, one of the features that Superhuman built for its users was read receipts - the ability to see whether a recipient has opened your email. Nice, useful feature that you see in many communication tools.

However, Superhuman went a step further by providing its clients with a running log of every time that email was opened, along with the moment and position of each illustration. They used something called a tracking pixel to do this, which is standard practice for websites and online analytics but not something you’d expect in a personal email. This will be quite negative exercise, for a bunch of reasons that Mike outlines. Not afterwards long, Superhuman founder Rahul Vohra issued an apology, and Superhuman made some changes that helped quiet the uproar.

What’s the subtext? Reporting on people’s locations without their genuine consent (getting them to open an email does not count) isn’t ok, and that was a real concern that surfaced immediately. But there was another nervous undercurrent coursing through the discourse over the few days where this was a big issue, which is that an awful lot of people had to pretend for a few days that they know what tracking pixels are, how they work, and when they’re used.

I mean, look, We’m one of those people. I can kinda explain what a tracking pixel is: it’s a tiny image that the user never notices, which when opened (automatically by your browser), sends the image server back some data about who’s opening it - what’s your IP address, what kind of OS or browser you’re running, what’s your screen resolution, that kind of thing. They’re used as a basic but effective way to follow users around the internet, and get out if they’ve long been anywhere - like whether they’ve opened up an e-mail actually, for instance.

But I can’t actually hold my own in any kind of sophisticated discussion about how online analytics ought to be used, what are best practices, what’s ethical versus irresponsible, and what we’ve accepted as a component of existence on the internet simply. I can’t contribute to a real debate around ad targeting actually, analytics, and the digital footprints all of us online depart. So are 99% of people on VC twitter. And you know what? I just’n want a new young baby wandering into that talk.

But everyone had to pretend otherwise for 3 days, as the outrage cycle swung wildly back and forth between “how dare Superhuman do this” to “how naive are you to not understand how the internet works” to “this is why the internet has become so terrible” to “your own newspaper’s online website loads 49 pixels and tracking scripts when I visit it, get a clue about where your paycheck comes from.” It was so tiring. Anyway, we’ve on moved, and no one right now understands it any far better, either.

#2: “I, too, think it’s outrageous that Adam Neumann and his family are WeWork’s landlords.”

What happened? Of course you knew that WeWork was going to make an appearance in this list. If I had to pick, though, my favourite WeWork outrage cycle was relatively early on in the story: when we learned that Adam Neumann and his family were acting as landlords to WeWork, leasing buildings that they’d purchased with money on loan from WeWork back. So many things took place with WeWork this year that it’s really hard to only go with one.

Remember, this was before the collapse. ) The dominant tone here was “I can’t believe they’re going to get away with this; this can’t be okay.” At this point in time, most people believed (or, at least, assigned a reasonable chance) that WeWork was going to pull off their IPO. (JP Morgan and Goldman Sachs certainly thought so!

What’s the subtext? Believe it or not, men and women in technology may learn a whole lot about some issues, but they don’t know everything. They understand how a VC-backed cap table works, because that’s what they have experience with, but a VC-backed cap desk is actually sorta simple: a startup will be a stack of different levels of preferred equity, the whole thing loses money, and preferably one working day it will cease undertaking that. Specifically, tech people don’t know everything about capital structure.

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But WeWork is not a typical tech company; it’s a lot more like a real estate company. In doing so, it had to somehow pull off two irreconcilable things: engineer its capital structure to keep richly-valued and poorly-valued assets and cash flow streams in their optimal boxes, while rising at 1000 mls per hr furthermore. It has to deal with actual assets, which throw off actual cash flows. It enjoyed a very attractive valuation relative to how much lease income it brought in, thus it desires to optimize for that naturally.

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You know what’s a great way to get this done fast? Have the founder and his family own the buildings, and lend them the money to buy them! It’s worth it to WeWork, because the benefit of being able to do all of this financial engineering quickly instead of slowly is just massively worth the sweetheart deal. I find out that in hindsight WeWork’s board looks pretty bad and ought to be held accountable for a number of decisions, but this isn’t one of them. So what if the founder is getting a great deal.

Now, when Tech Twitter discovered out about this entire report, it became an immediate outrage case - but as we’ve seen before, part of what fuelled the narrative is the fact that fairly few people in tech have ever actually spent time learning how the sausage gets made in real estate or other mainly becauseset-heavy industries. The complete discourse has been genuinely peculiar, because it had been about this concern that technical twits nearly by no means shares about, and really doesn’t understand that well. (Not like that stops anyone.)

The result was that as soon as Newmann’s family leaseback arrangement became common knowledge, everyone immediately jumped on it as an example of egregious founder overreach - but then slowly, and uneasily, got uncovered to the idea that potentially, maybe just, they’d misunderstood the situation. Kidding Just! We all lost our minds and it seemed to be great fun. Eventually, most everyone reached a reasonable, nuanced and good comprehending of the funds framework arbitrage in WeWork’h company unit, and proceeded from there civilly.

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#1: I, too, think that startups should pay more attention to being profitable.”

What happened? Uber took place, basically.

Here’s a prediction you could have made at the beginning of 2019 (and many did) that would’ve been 100% guaranteed to be right, one way or another: whatever happens with the Uber IPO will dominate the whole narrative of tech for the entire year. If Uber had crushed their IPO, 2019 would’ve been the year that software ate the physical world, the 12 months that Funds as a Moat dined on the startup planet, and the calendar year that legally forced San Francisco real estate over its last cliff.

Instead, 2019 had been the yr where low margins mattered, where bits-to-atoms companies came under intense scrutiny, where Stripe took over as the most aspirational tech company, where the Softbank Story turned into a catastrophe, and above all, season where all opinion was initially nowhere to be found seeing as to what defines a good technical corporation anymore the. (Bay Area Housing is still a genuine tragedy though.)

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Relatedly, 2019 marked a turning point for one of tech’s new favourite parables: where Bill Gurley’s “Selling Dollar Bills for 95 cents” story officially jumped the shark.

What’s the subtext? I know I say this every episode, but startups are hard. You can’t recognize the economic value of what you’re building, because you’re also playing that the outlook will end up numerous in a significant and basically unknowable approach. You can’t really know the gross margin of something you’ll sell in ten years, or how elastic it’ll end up. You can’t understand how much it’ll cost to get there, and you can’t realize the value of your own equity.

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Amidst all of this uncertainty, you have to figure out how create positive momentum - if that involves spending money, raising money, or any type or kind of guesswork with money in between, so be it. But it’s althus true that bicycles let you get places you never could before. Want to burn hot? Everything is a tradeoff, and managing that momentum is like riding a bicycle. It’s true that you can over yall, and the faster you go, the harder you’ll land. End up being better to constructive dollars stream You’ll, but you’ll possess a harder time creating customers and a harder time competing. Want to burn cooler? You’ll grow more rapidly, but you’ll be at the mercy of future capital raises.

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That’s part of why this year’s overwhelming tech narrative - profitability, profitability, profits - simply sensed thus tiring and disingenuous. “Watch your cash flow” used to be important advice that made you unpopular in tech; if you have been declaring it in 2014, you were doing something important. But now it’s like a fashionable catch phrase. “I, too, believe that will startups need to help make funds of eliminate funds instead.” Oh interesting!

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This year was just so full of “Hello, startup who’s raised $200 million from ruthless growth funds, has seasoned executives on board, and knows their landscape better than anyone - have you ever considered that there’s something called a gross margin you might like to know about? I’g believed about that before - that probably never ever, rather of shedding cash on each item we market, we simply help to make cash rather. ” Oh, how useful! Thank you, Expert Twitter! Ah! Genius.

2019 was the year that Profitability and Gross Margin Discourse turned away from “what is the right amount of risk to take” and turned towards this bizarre kind of performance, a bit like telling a group of professional cyclists who’ve crashed in a race just, “you know, you really should have on training wheels if you’re going to crash like that.” It seemed to be also the year that a whole new batch of people started repeating the 95 cent dollars story, unaware of the 4D chess game being played in the meantime by its author.

But more than anything else, 2019 was a year where “I’m the person who pays attention to gross margins” became a sought after kind of label or self-image. It permanently earned’testosterone levels end up being this method, but for the appropriate moment getting, it’s been hijacked as a performance given by people with the least at stake, who are the most desperate to sound like competent insiders.

And that’s why this year’s first place award for “Most exhausting Tech Twitter Discourse” goes to Profitability. Congratulations! Ideal of success shielding your subject subsequent calendar year against some latest up and comers, “I, too, think this antitrust case is overreach”, “I, also, would like to weigh in on this free speech debate”, and most usingly, “I, too, consider that the Bay Area is a monoculture.”

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