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The top five “I, too”s of 2019

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Hello readers! Of the 12 months As we strategy the finish, 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 had been the history that motivated 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 terrace produced of powerpoint power point instead. (You can examine the memo in this article.)

For the next few days, Message Memos have been the issue of the working day on VC Twitter. Behind the obligatory lip service and obvious posturing, there was an undeniable undercurrent of, “if this captures on basically, 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 generate lifestyle less complicated for VCs or actually help make the ceo/VC discussion runmore efficiently, but because they demand better thinking.

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But here’s the problem with that. If you in a place where a toss memo will support your situation, 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 also kind or type of damaging, 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 likely looking to acquire with a good whole lot significantly less handwaving inside of the outlook aside.

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Investors have a different kind of challenge. Well, considerably more considering and posting about the package, possibly - but you can’d restate what the creator currently authored merely, since subsequently you gained’capital t search clever in forward of your peers. But subsequently what will be the VC meant to take to the desk on Friday? 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 need the founders and their other partners to do it, but several men and women happen to be truthfully excited to choose under the microscope themselves, and forced to write down something coherent actually. We’d love a better process, but certainly not one that may make 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 proceeded to go ideal back again to the very same good old, flawlessly unclear slide products that we understand 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 good photography and it helps make you aged, or another gender, or even a ba goodby, or whatever, has viral popularitcon peaks from time to time whenever a new filter comes out or simply when people are bored and the time is right. Come july 1st was initially one of those correct instances, as Twitter and Instagram had 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 stress in a blog post. It became a huge deal, perhaps planning as way 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 person will be basically all that involved 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 become troubling. But everyone acquired worried about searching similar to a make in general population really.

Internet security is one of those aspects of everyday life that’s just baked into almost everything we do now. Should you loved this informative article and you would love to receive much more information regarding Cute bLONdE shoRt HAIr TeEN xxx photos please visit our own page. 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 diminishing yourself usually, is a perpetual worry. It’s hard genuinely. It’s had some a major epis usuallyodes 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, people will click in virtually anything. I am the idiot.” Folks 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’m pretty Facebook has our images previously.)

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, together with the correct time and location of every case. 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 awful exercise quite, 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 discover out if they’ve actually ended up someplace - like whether they’ve exposed an e mail, 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 basically recognized simply because a some of life in the internet. I can’t contribute to a real debate around ad targeting actually, analytics, and the electronic digital footprints we abandon online. So are 99% of people on VC twitter. And you know what? I’e like a youngster strolling into that discussion.

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 understands it any much better right now, 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, folks in technology may understand a whole lot about some elements, 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 stand is actually sorta simple: a startup will be a stack of different levels of preferred equity, the whole thing loses money, and maybe one evening it will halt carrying out 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 likewwill bee developing at 1000 kilometers per hours. 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, therefore it needs to optimize for that clearly.

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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 learn 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 complete scenario, 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 peculiar seriously, because it had been about this matter that technology tweet hardly ever discussions about practically, 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 subjected to to the idea that potentially, maybe just, they’d misunderstood the situation. Kidding Just! We all lost our minds and it has been great fun. Eventually, most everyone reached a reasonable, reasonable and nuanced comprehending of the money framework arbitrage in WeWork’h enterprise version, 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, 12 months that Funds as a Moat consumed the startup globe the, the year that officially pushed San Francisco housing over its final cliff and.

Instead, the calendar year where uncouth margins mattered 2019 seemed to be, 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 agreement was first shed as being to what defines a good technical enterprise 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 realize the economic value of what you’re building, because you’re also gambling that the potential future will end up being distinct in a significant and essentially unknowable method. You can’t really know the gross margin of something you’ll sell in ten years, or how elastic it’ll get. You can’t realize 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 alconsequently 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. You’ll turn out to be more detailed to good money movement, but you’ll possess a harder time creating customers and a harder time competing. Want to burn cooler? You’ll grow more quickly, 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, productivity - simply just experienced thus tiring and disingenuous. “Watch your cash flow” used to be important advice that made you unpopular in tech; if you have been stating it in 2014, you were doing something important. But now it’s like a fashionable catch phrase. “I, too, believe that will startups have to generate funds of drop cash 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’m in no way considered about that before - that most likely, rather of shedding cash on each item we market, we simply rather help make cash. ” 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 had been 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 gained’p turn out to be this approach once and for all, but for the moment staying, 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! Calendar year against some unique up and comers Very best of lady luck safeguarding your subject up coming, “I, too, think this antitrust case is overreach”, “I, as well, would like to weigh in on this free speech debate”, and most tiringly, “I, too, consider that the Bay Area is a monoculture.”

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