movie premier at Stanford<\/a>: Something Ventured. If you’re a cs major, I pay you $20 if you show up. Gawd, I am a hiLarryAss.<\/p>\n It leads me to my next point…<\/p>\n
-3- I Develop a Farm System.<\/p>\n
VCs talk Moneyball but who executes Moneyball.<\/p>\n
No one.<\/p>\n
VCs that are false-ly in the ‘know’ are seeking to get their equivalent stat to ‘on base percentage’. Plot spoiler: OBP doesn’t correlate in entrepreneurship. <\/p>\n
The right way is to develop a farm system of possible tech co-founders. You see, the best founders are currently employee number 4-12. Before you are employee #9, you probably were an intern. I hack and execute the Moneyball theory by helping CS majors engineer three internships in a row. Yes, I also fly cs majors out to tech conferences like SXSW in Austin or Austin City Limits.<\/p>\n
God, I am so fun to be with on a boondoggle.<\/p>\n
This dovetails into my alpha seeking smart bomb…<\/p>\n
-4- I invest in sub Seed Stage<\/p>\n
You can’t make a return when you’re doing an $800k no cap note rounds with zero board seats.<\/p>\n
Instead… Invest in sub seed stage.<\/p>\n
Ya know how I used date the hottest coolest smart women right here in the bay area?! I used the pepper and pass lead generation system to build up my ‘sales funnel’. My sub seed stage is just like my farm team. My sub seed stage is just that. It is before your seed and way before your a-round. <\/p>\n
I calculate that 8 years before a 24 tech founder started something, they were 15.9 years old.<\/p>\n
Think about it.<\/p>\n
Remember, you can’t violate COPPA if you get a kid not old enough to have a drivers license to text message you. My lawyer has me carry parent guardian waivers on my iPad 5.<\/p>\n
-5- Landlord and Tenant Maneuver.<\/p>\n
When you’re landlord and tenant, you benefit. <\/p>\n
Majority of business value comes from the land that the business sits on. I never forgot this pattern that I recognized. I replicate this pattern not by getting founders to buy land, I pattern replicate by doing the opposite of a Pyrric Victory. You see, I collect together team of CS majors to copy-paste 80% of an existing business. I teach them to sell. <\/p>\n
If they fail, then I have a team of 3-5 CS majors that I can sell into another one of my portfolio companies. They get an exit under their belt. Later, even if they fundraise with a different firm that tries to invest in everything I do, I can still wedge in some money because I was the guy that gave them their big break.<\/p>\n
This is me:<\/p>\n
Larry Chiang
CEO, Duck9
Stanford Entrepreneur in Residence<\/p>\n
Duck9 = Deep Underground Credit Knowledge 9
https:\/\/www.duck9.com\/blog
125 University Ave Suite 100
Palo Alto CA 94301
650-566-9600<\/p>\n
****************
Editor of the BusinessWeek Channel “What They Don’t Teach at Business School
https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog
***************
NY Times Bestselling Author
“What They Don’t Teach at Stanford Business School” https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/<\/p>\n
![\"\"](\"https:\/\/www.duck9.com\/wp-content\/uploads\/2011\/05\/cropped-head-shot1.jpg\" "\\"cropped-head-shot1\\"")
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