Greylock


26
Sep 11

Announcing our Investment in Tumblr

I’m super excited to announce Greylock’s investment in Tumblr.

We knew Tumblr was big when we started talking with David and John over the summer — over the last year or so, it’s practically exploded onto the scene — it seems like every piece of interesting content and expression you see today has been posted on someone’s Tumblr. The numbers back that up — last month the 30 million blogs on Tumblr generated 13 billion page views.

As we got to know the team there more, it became a more and more obvious decision for us to get involved. We love entrepreneurs who are product visionaries, who have a strong point of view and who want to build great products that affect hundreds of millions of users. David is clearly one of those — a founder with deep character and a desire to build a meaningful, enduring set of products and a company that users love.

What we didn’t know when we started, but learned as we went is that in addition to the ubiquity of Tumblr today, the engagement of users and posters and rebloggers is absolutely off the charts. Good content gets surfaced and spread incredibly rapidly — more quickly than any other network I’ve ever encountered. Lots of reasons for this incredible engagement — the team at Tumblr has done a wonderful job of figuring out some fundamental and novel avenues for self-expression. I’ve found so many interesting posts and perspectives on Tumblr that I never would have found without it — and it’s clear that that’s been the experience for millions of other users.

At Greylock, we’re always looking for the breakout companies — because we’ve each been involved in building and growing some of the companies with the broadest reach in history (Facebook, LinkedIn, Pandora, Mozilla, and more), we have a huge respect for founders and teams that have gotten to real scale like Tumblr has.

So Greylock and I are thrilled to be involved with Tumblr now, and we’re excited to help the company take the next steps forward into becoming an even more powerful platform for self-expression and discovery.

And you can find my own Tumblr at lilly.tumblr.com. 🙂


16
Sep 11

Figure Out Who’s On Your Team

I haven’t written much yet about my experiences during my first year on the VC side of the table — I’ve been pretty busy just learning, doing, trying to process everything as I go.

Along the way I’ve met a LOT of new people — entrepreneurs, investors, designers, scientists, on and on. I’ve always had a pretty large network of friends and colleagues, but this year it’s pretty well exploded — I’ve gotten to spend some time with amazing, amazing people I hadn’t really spent time with before.

But the interesting, and maybe counter-intuitive thing I’m finding is this: as I’m meeting so many more capable and awesome people, my core group of collaborators — the folks who I’ve built companies and careers together with over the last 20 years — while I see the core group less often, I’m finding that the interactions I have with them to be much more valuable.

One of the best pieces of advice I ever got, back when I was 23 and newly out of school, is this: look around and figure out who you want to be on your team. Figure out the people around you that you want to work with for the rest of your life. Figure out the people who are smart & awesome, who share your values, who get things done — and maybe most important, who you like to be with and who you want to help win. And treat them right, always. Look for ways to help, to work together, to learn. Because in 20 years you’ll all be in amazing places doing amazing things.

That’s turned out to be true for me. Knowing who’s on your team — or as Reid likes to say, who’s in your “tribe” — has been critically important for me, even though I don’t see them all as much as I’d like.


15
Aug 11

Google & Motorola

Very very interesting news about Google buying Motorola Mobility this morning. It’s got so many implications it’s tough to take in all at once, so wanted to capture a few thoughts quickly.

First thing worth pointing out, though, is this: we don’t actually know the shape of the whole deal at this point. Will Google keep the MOTO hardware business? Keep the patents and sell the hardware side? Keep both? It’s hard to know how their internal evaluation went, and what they’ll do from here, so a lot of this is really hard to speculate about.

Having said that, a few thoughts:

– it’s another instance in a long history of software (and now Internet) business devouring the previous generation’s hardware businesses. Internet business are inherently more leveraged: distribution power trumps almost everything else, especially in a phase where the technology portion is maturing.

– along those lines, it’s interesting to think about what happens next for Samsung, RIM, HTC, Nokia, but I’m way more interested in what the software players do. All eyes in that regard are on Microsoft, but I think the more interesting long term questions are for Facebook and Amazon.

– 2 things it’s clear that Google didn’t buy MOTO for: its margins or its ~20k employees.

– seems like Google definitely wanted the IP portfolio.

– and it seems to me that, assuming they keep the hardware business, that they want Motorola because it gives Google full control over the hardware and software stack, which is the only way that they’ll ever be able to even approach the excellent UX fit & finish of the Apple offerings. I feel like that’s one of the top drivers, and maybe the most important one over the long term.

– One other thing that this merger is decidedly not about is distribution — if anything, Google’s distribution power with respect to Android is somewhat weakened, at least in the short-to-medium term, as they’re undoubtedly going to cause some grief with partners Samsung and HTC. Feels like Google has calculated that control over getting the experience right trumps any distribution help they might get from their handset partners.

All of this lines up pretty well with my post about Screens, Storage & Networks last week — the last 60 days have seen Google push hard to get in the top tier on Screens (MOTO) and Networks (Google+).

My most esoteric point I’ve left for last, though: one of the unfortunate consequences of this development is that I think it will move perceptions of big corporations building open software (and in this particular instance, I’m specifically talking about open source software) at least a few more notches towards the cynical. The question that everyone will ask anytime a company tries an open experiment like Android in the future, the inevitable line of questioning will be: “Sure it’s open now, but for how long?” Whether premeditated or not, the path of Android has been from wide open to asserting more and more control — and this is another data point on that path. I’m not criticizing or indicting anyone for this — I think it’s essentially just a natural evolution and response to market conditions that require tighter integration. I think in a lot of ways it’s inevitable in technology networks for this to happen. (And I’ve written about it a bit before.) My only real sadness here is that it’ll move cynicism on corporate open source efforts up one more notch, and that’s not good.

Overall, though, fascinating day, fascinating time. Big moves!


9
Aug 11

Design like you’re right…

It’s impossible not to think a lot about data these days. We’re generating it all the time, constantly. On our phones, on our televisions, on our laptops, in public spaces. And increasingly the best startups and Internet giants are using data to make better and better product decisions and designs.

Today at Greylock we announced that DJ Patil is joining us as Data Scientist in Residence, as far as I know the first time any VC has had a position quite like that. It’s a huge addition for us, and the expression of a bunch of deeply held beliefs about the state of the art in designing great products.

But as I talk about using data for design, I find that there’s a lot of misunderstanding about it — some people have the sense that it somehow makes designers less powerful, that you’re basing decisions based purely on mechanical measures rather than designer intuition and genius.

In my view, however, data is what makes designers not only strong, but primary. It’s what turns designers from artists into the most important decision makers in a company, because it’s understanding the data that lets you understand what your users are doing, how they’re using (or not using) your products, and what you can be doing better.

It made me think back a bit to my own training as a UX designer (we called it HCI then) at Stanford in the mid-nineties, when the field was just starting to develop. We would spent a lot of time on ethnography, need finding, doing paper prototypes and then doing basic mockups and user testing. And we’d get 80% of the way there then go and build it.

Nowadays, the state of the art is to still do need finding and some mockups early, but to get to a working prototype as quickly as you can, that’s instrumented so that you can tell what’s happening and figure out whether you’re on the right track or not.

I think that’s generally the right approach, but it’s worth noting: instrumented prototypes can really only get you to local maxima — they can help you find ways to tweak and optimize the basic design you’ve got, but they can never help you find a radically different and better solution.

So when I talk about using data — and I talk about it a LOT — what I’m talking about is a mixture of the artisan/designer-led designs along with using data to figure out what’s best.

Thinking about it the other day, I was reminded of one of my favorite sayings that I learned from Bob Sutton: “Fight like you’re right, listen like you’re wrong.” Bob’s an organizational theorist, and what he means is really a paraphrase of something that I think Andy Grove said, which is that he wanted all his people to have strong beliefs, loosely held. In other words, he always wanted people to come in with a point of view — a design, as it were — but to be willing to moved off of that point of view in the face of data.

So the modern, design oriented framing is this:

“Design like you’re right. Read the data like you’re wrong.”

In other words, you should always design the product you think/believe/know is what people want — there’s a genius in that activity that no instrumentation, no data report, no analysis will ever replace.  But at the same time you should be relentless in looking at the data on how people actually use what you’ve built, and you should be looking for things that show which assumptions you’ve made are wrong, because those are the clues to what can be made better. We all like to see all the up-and-to-the-right happy MBA charts, and those are important. But they don’t help you get any better than you already are.

I wish we taught more of this blend, because all of the products we use would get better.

So: design like you’re right; listen like you’re wrong.


31
Jul 11

Screens, Storage & Networks

I’ve been thinking a bunch about platforms lately, and how they’re evolving very very quickly. Generally, there are two categories of thing that people talk about as platforms. Traditionally, they’ve been computer operating systems: Windows, OS X & Linux, now iOS & Android. Lately people are talking about cloud platforms: services like EC2, but also web services with APIs that other apps are built to integrate with.

But more and more, that’s not the way I’m thinking about my own systems; as devices proliferate at my own home, and as I tend to use tiny connected computers in more numerous and varied contexts.

I’ve been interested in what I call “4 screen & a cloud” products for a while: products that help us unify and take advantage of our laptop + phone + tablet + tv — but it all became a little clearer to me a few weeks when a wave of devices entered the house all at the same time. In the space of a few weeks, I upgraded to an iPad2, got a Samsung Tab to experiment with Android Tablets, got an Android phone in addition to my iPhone, and got a WebOS phone from the D9 conference. So we had all those devices in the house, plus our iMac, Kathy’s set of devices, and my mom’s as well, since she was visiting. Oh, and 3 Kindles between the three of us. Screens were everywhere.

Now, I’m the first to recognize that we’re somewhat atypical in our technology consumption in normal times; add to that the devices that I’ve picked up lately because of work and my house is a jumble of operating systems, devices and power adapters. Exciting!

When you get that many screens and devices, what happens is interesting: when you want to do something, communicate with someone, remember something, schedule an appointment, read a book, or whatever, you just pick up whatever screen is nearest to you and work from that.

Well, you do that if you can. Because in our current platform chaos, not all devices are fungible, not all activities are available from all platforms.

So that got me thinking some about what I need, and where, and in what contexts and on what devices, and now I think about platforms this way: I have a set of screens, a set of stuff, and a set of people that I want to do things with — and I want those sets available to me wherever & whenever I am.

By screens, I mean something more than just pixels: I really mean input & output systems, of which screens are the most visible parts; really it should probably be screens, sensors & speakers. In other words, it’s the displays of each system, the audio systems, and the ways that we indicate intent, be it typing, swiping, speaking, remote-button-puching, smiling, waving, running, or just being.

By storage, I mean something more than just bits: while Dropbox and iCloud and Clouddrive are important, I want to do more than just store and share my files with others. It’s about more than having a place to put my music. It’s about having the context of my life: my apps, my reading material, my history of shopping & interest intent. It’s really the things I’m creating, consuming, sharing, saving, working on and just thinking about. One of the things that’s probably non-obvious about this formulation is that for this to work, the storage is going to be pretty keyed to my identity. Without knowing something about who I am, it won’t work.

And by network, I mean something more than just my Facebook graph: what’s becoming clear is that we’ve all got many and diverse groupings in our lives, ranging from the very intimate groups of a nuclear family to the wide-ranging groupings of Twitter followers. The short version, though, is that it’s becoming increasingly clear that, just like in the offline world, people online want to do things with each other. Shocking, I know.

That’s the definition of platform that’s relevant to me: a combination of screens, storage and networks that help me do my work and live my life. The companies that see that true platforms transcend any one particular technology stack will be the ones that prosper — you can already see some interesting ones emerge.

As a side note, I think screens, storage & networks is one way to look at the landscape of the giants competing: it’s where Apple, Google, Facebook & Amazon are slugging it out (and to some extent it’s the evolution now of my old stomping ground, Mozilla). I would argue that each of the giants has a super strong position in 1 or 2 of the three areas, but none has a lock on all three, and most of the interesting initiatives of each are about strengthening the places where they’re historically weak.

Apple is obviously terrific at screens, okay at storage, and not very good at networks.

Google’s now strong at screens (although probably not as strong as Apple) and could be great at storage, and finally has a credible start on networks.

Facebook is incredibly strong at networks, has some weakness in screens, and is pretty good with storage (at least for things like photos).

And Amazon is very strong on storage, weak at networks, and weak (at the moment) on screens.

I’d argue that their relative strengths and weaknesses are  important for startups to understand as well, as that gives you a bit of a map of one set of opportunities.

Anyway, that’s how I’m thinking about things lately. What do you think?