Hola Charlie, A 50K Opportunity

Fred, How About Some Money?

Charlie, here's what I believe an opportunity of a lifetime for you and your firm. This is First Round Capital's chance to step into FinTech.

Fred, How About Some Money?

Image by Randy Stewart via FlickrCharlie O'Donnell At His Inspiring Best

Hi Fred. Looks like you are back from your Middle East Peace Tour, aka vacation. (1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26) And so this might be a great time to bother you. Chances are you are not cranky.

I am writing this at three in the afternoon but shall schedule post it for four in the morning when people are asleep, and no one quite sees it. That is how JFK first wanted to announce that it was Bobby for Attorney General: around midnight. He feared accusations of nepotism. If you do give me money, people might think it is because I am a member of the AVC community. Accusations of nepotism might fly.

Going To Kickstarter For My Microfinance StartUp

Image via WikipediaSome of my friends have been urging me to go to Kickstarter to raise the first 100K that I need to raise for my microfinance startup, a for profit, high tech proposition. And I am getting excited by the day about the idea. Actually I think I am going to go ahead and do it.

With this 100K I should be able to do enough work to be able to raise a few million dollars from the microfinance fund that Vinod Khosla is working to set up.

I know Kickstarter best for Diaspora. I believe Diaspora also raised 100K - it might have been 200K - when Facebook was mired in a major privacy controversy.

My microfinance startup is way more promising than Diaspora. I am not even in the same league.

Microfinance: Cutting Edge Like Clean Tech, Bio Tech, Nano Tech

Image via WikipediaMicrofinance: A Zero Trillion Dollar Industry
Microfinance, Nanotech, Biotech, Software/Hardware/Connectivity
Vinod Khosla's Green Tech Sweep

I put microfinance in the same league as the sectors touted as the next big things: clean tech, bio tech, nano tech. People in the industry keep referring to the challenges in the last mile. When it is time to dole out the money, it gets complicated.

Web tech is relevant to all these emerging sectors. You are going to need specific kinds of software for specific tasks in nano tech, for example, although many generic web tech stuff will do just fine. The big minds in nano tech will still be on Facebook and Twitter, will they not?

Education Is Media, Action Is Thought

Watch live streaming video from paleycenter at livestream.com

(Source: AVC)

In this video that I first came across here, and then the money quote - like Fred Wilson might put it - that I came across here first, Fred Wilson says Education is media.

Microfinance: A Zero Trillion Dollar Industry

Old Media, New Media: Man Bit Dog, Dog Bit Man

That is an old dictum from journalism school, that man (sic) bit dog is news, but dog bit man is not. How new media has changed that and turned it upside down! If a dog bit man, and that man is your friend, that is not only news, that is big news. If that man walked his dog, and sent out a tweet about it, that is still news, to you. How things have changed!

Vinod Khosla's Entry Into New York City

Image via Wikipedia

AllThingsD: Khosla Wins the Bidding War for GroupMe, New York’s Startup of the Moment GroupMe, a New York startup that lets users send group text messages to to their cell phones, didn’t exist in April. Now it’s worth about $35 million..... Original investors including First Round Capital, Betaworks, Lerer Ventures and Ron Conway’s SV Angel, who put some $850,000 into the company earlier this year, are all slated to invest again. ..... a bidding war for the right to fund GroupMe broke out in the past few weeks. The company ended up with multiple term sheets to pick from before signing with Khosla Monday. ..... GroupMe works on any run of the mill “dumbphone”, and part of the company’s pitch is that salt of the earth folks (Church groups! Hunters!) have been using it since it opened up in August. ..... Hecht and Martocci left jobs at very red-hot startups — Tumblr and Gilt Groupe, respectively ..... The two formally hatched their plan at TechCrunch’s Disrupt Hack Day event in May. .... what investors are really hoping for, at least right now, is that GroupMe follows the same trajectory of another zero-to-hero New York startup — Foursquare. It’s worth nothing that Khosla tried very hard to fund that company’s last round, but missed out.

Vinod Khosla: For Profit Poverty Alleviation

Image by brettwayn via Flickr

New York Times: Sun Co-Founder Uses Capitalism to Help Poor: commercial entities can better help people in poverty than most nonprofit charitable organizations .... an increasingly popular school of thought: businesses, not governments or nonprofit groups, should lead the effort to eradicate global poverty..... Rich Indians “are more into temple building and things like that” ..... moneymaking versions had grown much faster and reached many more needy borrowers. ..... He said he wanted to help create a new generation of companies like SKS, which started lending as a commercial company in 2006. It now has 6.8 million customers and a loan portfolio of 43 billion rupees ($940 million)..... CashPor, a nonprofit Indian lender to which Mr. Khosla has also given money, has 417,000 borrowers and a portfolio of 2.7 billion rupees ($58 million) even though it started operations in 1996. ..... Besides growing faster, SKS, India’s largest microfinance company, has become a stock market darling. The company floated its shares on India’s stock exchanges in mid-August, and they have risen 40 percent since then. .... Khosla’s 6 percent stake in SKS is worth about $120 million, about 37 times what he invested in the firm in 2006 and 2007 ..... Khosla said it might take at least a year to set up his new venture fund. ..... these “social enterprises,” as they are sometimes known, cannot be solely relied upon to address the many entrenched causes of poverty. ..... “I am relatively negative on most N.G.O.’s and their effectiveness,” he said. “I am not negative on their intentions.”

I have admired Larry Ellison over the years. The guy's biography reads like fascinating. Now I have found a dude who is less dramatic, but not less towering. Khosla speaks to me. He came to America as an international student
Image by ptufts via Flickr like I did. He thinks of where he came from. The idea is not to go back, but to take back, to give back, to do. His clean energy drive over the years has been about all those cars he sees crowding the roads in China and India over the next 50 years.

The Microfinance Fishing Net

"Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime.”

Microfinance is magic. It is the ultimate fishing net. Poverty is artificial. Microfinance proves that.

Vinod Khosla's Green Tech Sweep

TechCrunch: Khosla Completes The VC Triumvirate At Disrupt: In 2004, he created Khosla Ventures to invest his own money and began to dive deep into greentech, while still keeping his hand in infotech. Always known for being a risk junkie and identifying big opportunities early, he started to build one of the deepest portfolios of greentech investments in the Valley. Last year, he finally took outside money, raising $1.1 billion for two new funds, including a seed fund.... His greentech portfolio covers everything from power generation, batteries, and advanced hydrocarbons to water, plastics, and chemicals.

Big Churns In The VC Industry

Image via Wikipedia

Paul Graham: The New Funding Landscape: After barely changing at all for decades, the startup funding business is now in what could, at least by comparison, be called turmoil..... the previously sharp line between angels and VCs has become hopelessly blurred. .... Super-angels compete with both angels and VCs. .... most of the changes will be for the better.

To those who have been regular readers of the blogs of the major venture capitalists, this churn is not news. The fact that there has been some major churn has been talked about for months. But what people make of the churn, now that's a different story. The best minds have been overall positive with the developments. Looks like entrepreneurs now get to shop around more. There is much more early money available. And that money is not blind money. Early stage investors tend to be more hands on.

To: Brad Feld, Subject: Iran And Me (Digital Ninja/Commando)

Happy July 4 Fred Wilson, Brad Feld
The Germans Called Me Robin Hood
An Immigrant Story For Brad Feld
Paul Graham, Brad Feld, Me, BBC
Me @ BBC
Iran: The World Has Wasted A Year
The First Major Revolution Of The 21st Century Happened In Nepal
The French Revolution And DFNYC

Hello Brad.

What you do, what I do is ultimately about people. I read a quote from you a few weeks back where you are saying show me a web service that has major user engagement and I will show you a way to monetize it. If enough people show up, it will work.

Thank you for the rapid response to my blog post email yesterday. Here are some more details.

There is a concrete mathematical theory called the butterfly effect. A butterfly flapping its wings in the Amazon forest could be the reason a cyclone hit Bangladesh. What happened in Nepal in April 2006 was a political cyclone. I was the butterfly flapping my wings in New York City. In April 2006, over a period of 19 days, about eight million people out of the country's 27 million came out into the streets to shut the country down completely to force a dictator out.

Nepal: Background

Nepal is the poorest country outside of Africa. More than 75% of the countries on the planet are smaller populations than Nepal. So it is not that small a country. There are as many people in Nepal as there are in Iraq. You could have introduced democracy into Iraq the Nepal way and saved a trillion dollars in direct costs and more in indirect costs.

Nepal has been the most popular destination among Peace Corps volunteers for some reason during the half century of that program's existence. I don't really know why because I have not traveled the world.

Nepal is situated between India and China. Those two economies are growing at double digit rates. There are forecasts that show the Chinese economy will be bigger than the American economy by 2020. The democracy work in Nepal has implications for China and hence has larger geopolitical implications disproportionate to Nepal's size, especially when you take into account the Maoists of Nepal, the deadliest ultra left group on the planet since the end of the Cold War, and the Maoists of India, the number one security threat to India, as stated by the Indian government, affecting one third of that country's districts.

9/11 was a flashpoint, just like Pearl Harbor was a flashpoint. You don't want a third flashpoint in Taiwan. The Arab world and Africa and China are the three large chunks where democracy still is not in full play, but China stands out in that I don't think the American political system is what the Chinese need to convert to. The truth lies somewhere in between. America needs total campaign finance reform so it can truly become a one person one vote democracy. And China needs multi-party democracy and federalism and Tibet and Taiwan as states in that federal China. And the fermentations inside of Nepal going on right now in terms of mainstreaming the Maoists have implications for China and India. If Nepal can be turned into a multi-party democracy of state funded parties in the constitution that country is scheduled to write for itself within a year, then we will be on our way.

Iran

Just like Nepal has implications for China, Iran has implications for the entire Arab world. That country for Africa could be Zimbabwe. What is exciting about Iran is what success there could mean for Saudi Arabia and Egypt. When I see people out in the streets in Tehran I get visions of people out in the streets in Cairo.

After success in Nepal, I have witnessed wastes in Bhutan, Tibet, Burma and Iran. I have watched helplessly. The people on the ground have been doing the hard part - coming out into the streets in the face of immense brutality - and the world has been failing them in each case. A democracy movement is science, it can be made to work every single time. But you do have to mutate faster than the virus does. And you do have to take a holistic, global approach. There are basic principles that worked in Nepal that could work anywhere.

There are a few steps that the democracy movement in Iran needs to take, the most important is to shift the goal post. The goal can not be to get the existing regime to hold the presidential election all over again. The goal has to be regime change. The goal can not be to take the brutality lying down. The goal has to be to document every act of brutality to bring the perpetrators to justice once a new, interim government takes over power. The goal can not be to keep coming out into the streets. A democracy movement is supposed to last a few weeks at most, not months and years. You shut the country down completely until the regime gives way to an interim government with the mandate to hold elections to a constituent assembly within a year of taking over power. That assembly would have two years to write a constitution. The democracy movement in Iran needs a leadership change. The current leader has not been able to think outside the box. He is boxed in. He is committed to functioning within the current mullahcracy in place.

My Work

It will be transparent, it will be digital, it will be political. My blog Barackface will be the hub of much of what I do. We are counting on the fact that the world is connected enough by now that everyone and every organization I need to reach out to and communicate with I can do digitally and in a massive way because a blog scales on its own. Social media is magic. And we are counting on the fact that I did this for Nepal, I can do this for Iran all over again.

After there is regime change and an interim government takes over, I will be done, my project complete. I will no longer need to give full time involvement, although I can't imagine not maintaining part time involvement all the way to the country getting itself a new constitution. After so much and such intense emotional involvement you don't just walk away.

Democracy For Nepal: April 2006

Your Role

You put in 5K of your personal money into this now, like today, like yesterday. Fred Wilson puts in his 5K once he is back from his Italy vacation in less than a week. And you two find me 18 other VCs who will put in 5K each by the end of July. Marc Andreessen 5K, Ben Horowitz 5K, Albert Wenger 5K, Brad Burnham 5K, Vinod Khosla 5K.

I start with 100K. It comes to me at the beginning - not in monthly installments - like you would do with a startup. If I can show success by September 2011 - in 15 months - each of you put in another 2.5K each for a total of 50K as a bonus payment to me. If I can do the whole thing in less than 15 months, the 150K deal still stands.

Tech

You are a VC. I am a tech entrepreneur. Why would we do this? Because ultimately it is all about people. It is about impacting lives. When the Iranians first took to the streets it warmed our hearts as to their use of Twitter as a tool. It is all related.

I am about 15 months away from my green card, and I am about 15 months away from launching my tech startup. My tech startup will be to do with the last mile of the ISP business. And from working on democracy in Iran to working on the startup is not going to feel like a career change to me. I think of democracy as the Big Bang in a country's life. It is a starting point of sorts. Once a country gets its democracy, it is on its way. But democracy alone does not put food on the table. And universal broadband is that magic wand that will help bridge the huge gulf between the West and the Global South. I had to come to America. Others like me don't have to if they can have broadband.

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TED Talks

Nina Khosla's Notes.
TED Talks

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4:16 PM @ FourSquare

Not Union Square Ventures

I am in a job mood and I have decided to show up at the FourSquare office later today. 4:16 PM sounds like a good time to show up.

FourSquare HQ
36 Cooper Sq
at E 6th St
New York, NY 10003

• Marketing Director
• Business Development Director
• Jobs: Everything Else .... Dying to join foursquare and a rock star in an area not listed above? Send your resume to jobs@foursquare.com anyways with a note on how you can help!

I am not a developer/coder although I think you should check out my LinkedIn page to see all the languages I have picked up along the way, only two of which I was ever formally taught. Some of my strengths I have talked about here: Union Square Ventures Job Opening: I Am Applying. Fred Wilson thinks I am "overqualified" for Union Square Ventures, or at least for the two open positions, so I must be just right for FourSquare, I figured, the hottest tech company in town.

I Have Been Quoted In Fast Company
2010: Location, Random Connections, The Inbox, Frictionless Payments
Selling FourSquare Would Be A Mistake, Partnering Would Be Genius
Dennis, Fred, Scott: Tweet Boom Tweet Boom
4/16: I Found Myself A Party: Tonight's Gonna Be A Good Night
If The Tweet Is The Atom, What Is Location?
The iPhone, Nexus One, Or Droid?
Silicon Valley Vs. New York City
The Foursquare Rap: Badges Like Us
Location! Location! Location!
Social Media Week: The Best NY Tech MeetUp Ever
Craig Newmark, Dennis Crowley, Jennifer 8 Lee: Koreatown
Dennis Crowley: I Underestimated Him

What can I do for FourSquare?

• I see FourSquare going IPO, (Selling FourSquare Would Be A Mistake, Partnering Would Be Genius) and I see the intermediate steps. I see FourSquare in the big scheme of things: Fractals: Apple, Windows 95, Netscape, Google, Facebook, Twitter.
• I am outstanding when it comes to group dynamics. 
• I am not a coder, but I could pick up some of the language fast, enough to be able to deal with coders. Teams of coders need big picture people like me. 
• I would be good at tactics, strategies, negotiations, deals.  FourSquare needs this more than most things right now to grow to new heights. 
• I have a thing for digital fights. "I believe in being nice, but that does not apply to my enemies." Larry Ellison. Sometimes you need that, like when Yelp decided to copy FourSquare. I liked how Dennis came swinging back. 
• Reference: Fred Wilson. 

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