Archives for 2011

Loch Ness, Unicorns & The First-Mover Advantage

When they are asked about the defensibility of their businesses, I regularly hear entrepreneurs cite “first-mover advantage” as the basis on which they will compete and defend their margins. It has come up several times recently, both in class discussions and at a recent MassChallenge panel I moderated on working with angels. Since everyone loves a good myth, I figured I would take a moment to examine this one.

Myth is actually a misnomer here because myths generally relate to the supernatural or nonexistent. First-mover advantage does occasionally happen in real life, just not very often. And not in the way entrepreneurs generally understand it.

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The Solar Project – Equipment Economics

Design Schematic

Early design schematic used to plan the panel layout on our project.

[This post is part of a series about our net-zero residential solar project – see a list of links to the full series here, a list of frequently asked questions here or click here to bring up all Green-related postsNext Post in Series / Previous Post in Series.]

Once you’ve determined your site is viable, the next set of questions surround what your system will cost.  The first step in assessing this is looking at your historical energy consumption from past power bills (or your account summary on the electric company’s website) to get a sense of what your annual consumption and expenditure is.  Next you look at the amount of roof space available for panels and the expected production of those panels given the site orientation.  Now you have the target, and a sense of the resources available to meet it.

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Are Entrepreneurs Wild Risk-Takers?

When I wrote my post about What I Look For in an Entrepreneur, I did not include a gigantic appetite for risk on the list of desired attributes. Ben Smith recently wrote a great guest post on peHub suggesting that great entrepreneurs need to take big risks: Why Great Entrepreneurs Take Risks and Get Fired.  In it, Ben points out that thinking differently, taking risks and being unafraid of failure are the essence of entrepreneurship.  So what gives?

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The Solar Project – Site Assessment

[This post is part of a series about our net-zero residential solar project – see a list of links to the full series here, a list of frequently asked questions here or click here to bring up all Green-related posts. Next Post in Series / Previous Post in Series.]

Once the economic arguments grip you, the next question you have to face is whether your site is appropriate.  This is determined by a site assessment.  Free site assessments are commonly offered by solar installation companies, and they are your first real opportunity to interact with and evaluate a prospective solar installer.  The company I had chosen to work with was called Independent Power Systems.  I chose IPS for four reasons:

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Pincus is a Greedy Dirtbag (Zynga)

Mark Pincus is screwing his employees and the Valley.

I’m already on the record with my profound lack of respect for Mark Pincus and his stop-at-nothing greed and selfishness. His pursuit of personal wealth as CEO of Zynga is well-documented. He’s looking out for himself, regardless of the impact on the other stakeholders around him. I outline the fundamental issues in this post. The speech he gave to an audience of new entrepreneurs about how he used every dirty trick he could think of to trick early customers and grow Zynga revenue (captured here on video) was certainly a low point.

But I think he has hit a new, even lower, low.

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The Solar Project – This Might Actually Be Possible (Federal & Macroeconomic)

[This post is part of a series about our net-zero residential solar project – see a list of links to the full series here, a list of frequently asked questions here or click here to bring up all Green-related postsNext Post in Series / Previous Post in Series.]

After reviewing the regulatory situation for solar power in Massachusetts, I looked at the federal side.  On the national front, I learned that, on top of the Massachusetts State incentives, there is also a very decently-sized federal tax incentive, which can offset as much as a third of the system cost in the form of tax credits over a five year period.

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The Solar Project – This Might Actually Be Possible (MA)

[This post is part of a series about our net-zero residential solar project – see a list of links to the full series here, a list of frequently asked questions here or click here to bring up all Green-related postsNext Post in Series / Previous Post in Series.]

So after letting this dream of going solar rest for a few years, I finally got things cooking again last Spring (2011) as a result of discussions with a friend who was in the tortuous process of building a LEED Platinum-certified house not far from mine. Heads-up: this is one of two wonky posts without much of a narrative thread – bear with me.

An engineer by training and a thoughtful and deliberative guy by temperament, my friend had put a great deal of careful research effort into both the consumption and the production of power for his house. What got me excited was his overview of the recent changes hitting the market.

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Localytics CEO on Steve Jobs, Raising Capital, Mobile Apps & TechStars

Here’s a short video interview with the Founder and CEO of one of my portfolio companies, Raj Aggarwal (@analyticsraj) of Localytics.  Raj sat down for a few minutes with Keith Cline of VentureFizz.  In this short video interview, Raj talks about the origins of Localytics, his experience raising money from Launchpad Venture Group and others, his pick axes & shovels strategy for Localytics, and his experience working for Steve Jobs on defining the early iPhone business model…

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The Solar Project – Where It All Began

[This post is part of a series about our net-zero residential solar project – see a list of links to the full series here, a list of frequently asked questions here or click here to bring up all Green-related posts. Next Post in Series / Previous Post in Series.]

I’ll never be able to explain my deep and abiding fascination with photovoltaic cells.  Most kids used big magnifying glasses and bright sun to burn leaves or ants.  I used them to make my solar-powered toys go faster.  Ever since those initial experiments in the early 1970s, my fascination has steadily grown.  Solar calculators.  Solar watches.  Solar chargers.  Given how crude the technology was at the time, and how my expectations always crept forward, every device was inevitably a little short of the performance I had hoped for.

But I never lost interest,…

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LinkedIn’s Snowball Effect

Am I alone in noticing a pronounced snowball effect with LinkedIn lately?  As I noted in my post on their 100M member milestone in the Spring of 2011, I was an early-adopter of LinkedIn, joining before approximately 99.8% of the current members (I was member number 231,537 out of the 100M+ current users).  I attribute this to the fact that I was working in a technology company when LinkedIn started, and I was generally interested in the nascent social networking area, so I received early invitations and ended up fiddling around with the new site.

And as a result of my joining early,…

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