How Early Obstacles Changed the Lives of 3 Prominent DC Innovators
Originally appeared on DC Inno
Success is not predictable. Heads down in our own domains of expertise can make us become prisoners to our own prototype. Sometimes you just need to make little bets and view yourself as a startup of one.
Former VC Peter Sims has studied a variety of innovative leaders and companies in his bestselling book, Little Bets: How Breakthrough Ideas Emerge From Small Discoveries. Sims offers accounts of such innovators like the late Apple CEO Steve Jobs, comedian Chris Rock and prize-winning architect Frank Gehry. On how these leaders in their respective fields became successful, Sims writes:
“They make a methodical series of little bets about what might be a good direction, learning critical information from lots of little failures and from small but significant wins.”
In some cases innovation comes down to career capital — the rare and valuable skills you acquire over time. In order to get value you must create value. If you connect the dots going backwards, these accumulated assets are apparent, especially with regards to the iconic business leaders in Washington, D.C.
With entrepreneurship comes change, which entails the inevitability to adapt and often-times fail. Failure is an intricate part of growth and a preceding feature of nearly all successes. The same can be said for the various positions, career paths and failed startups entrepreneurs leave behind before landing on an innovative concept. Below is a list of successful innovators who took little bets and evolved over time through multiple startups, obstacles and life pivots of their own:
Fredrick D. Schaufeld
Many people might not be familiar with Fredrick Schaufeld, but he is one of the more innovative figures in D.C. Schaufeld is managing director of Swan & Legend, a multi-stage venture capital firm that includes José Andrés’ restaurants, Kind snacks and CustomInk T-shirts, among other great companies in its portfolio.
Schaufeld is undoubtedly successful, however his path to venture is quite atypical. Schaufeld, while a junior studying government at Lehigh University, began his career in unfortunate circumstances following the death of his father. This event triggered Schaufeld to develop at an accelerated pace. Motivated more than ever, Schaufeld ran for Lehigh’s concert chairman enabling him to schedule shows in their arena.
“The only thing I had to lose was embarrassment,” he told The Washington Post. “I would never have run for that election prior to losing my father.”
As Schaufeld became more familiar with business from hosting nationally promoted concerts and graduating from college, he matriculated into selling extended car warranties to dealers while taking evening law classes at American University. Schaufeld intended to be in the warranties business forever. These years proved to be tough, but formative. What otherwise might be considered an uninspiring industry, Schaufeld soon realized the potential of applying the warranties business model to the consumer-electronics industry. At the ripe age of 23, Schaufeld launched his new venture, National Electronics Warranty Corp, in 1983. He would go on to become the biggest provider of warranties to some of the largest consumer-electronics retailers. Schaufeld would eventually sell his company for $1.2 billion to a Boston private equity firm.
It is with these experiences that Schaufeld has been able to develop such a compelling career as a VC. Collectively, Schaufeld and his partners have raised over $5 billion of institutional financing and participated in over 150 private investments. Due to his unexpected path in selling warranties, Schaufeld developed deep domain expertise in consumer passions and retail services. Today, he and his partners invest wisely in entrepreneurs that exhibit the same traits he showed as a young entrepreneur.
Adam Vitarello
Probably unbeknownst to you, Adam Vitarello, co-founder of cloud-based technology company Optoro, might have served you delicious Indian cuisine circa 2009. Vitarello and other high school friends ran Fojol Brothers. Fojol Brothers, one of the pioneers of D.C.’s new generation of mobile vendors, won the hearts of many and was even featured on the Food Channel’sFood Paradise.
Unfortunately, Fojol Brothers would have to shut down due to increasing costs to maintain operations. However, Vitarello was concurrently working on Optoro (originally named E-Spot). Vitarello and company spent each day on theentrepreneurial grind maxing out hundreds of credit cards just to keep the business afloat. This was all while sharing an eight-person house and reselling high-end personal items on eBay for relatives. Fast forward to today after a decade in business, Optoro now employs over 100 people and has raised roughly $120 million from private investors, including cash from local firms such as Revolution and Grotech Ventures.
The art of the transaction became a tremendous skill acquired over time by Vitarello. Whether piloting food trucks across D.C. or helping people resell items on eBay, Vitarello tirelessly pursued both ventures with a craftsman mindset. In order to keep moving forward, Vitarello knew he had to continue providing value to his customers.
Kevin Plank
As co-counder, CEO, and chairman, Kevin Plank has led Under Armour from the basement of his grandmother’s house in Georgetown to a $3.9 billion giant in the apparel industry. As the Under Armour careers page describes, “The organization demands individuals to act as a global citizen, think like an entrepreneur, create like an innovator, and perform like a teammate.” Plank, an innate entrepreneur, has developed a culture that mirrors his tenacious upbringing and unpredictable path.
Growing up the youngest of five brothers, Plank had to fend for himself, which occasionally landed him in trouble. Plank was kicked out of Georgetown Prep and soon matriculated into St. John’s College High School. It’s at St. John’s where Plank formed relationships with football teammates that would later go on to promote Under Armour in NFL locker rooms. “One door closed, and another opened,” Plank states in an interview with Thomas Heath.
Plank launched startup after startup, parking cars and selling flowers on street corners, until eventually launching and self-funding Under Armour. Additionally, Plank’s network that he was able to grow while playing football in high school and at the University of Maryland continued to provide new opportunities for him. He’s been able to rise to the top due, in part, to people who were there from the beginning like lacrosse buddy Kip Fulks who is now the CMO.
Plank’s relentless pursuit of innovation and little bets proved to be a significant win for Under Armour. Under Armour’s 20 years of growth from two people generating $17,000 in revenue in 1996 to $3.96 billion with over 13,000 employees worldwide in 2015 is quite amazing. Adjusting and adapting to change drives Plank and Under Armour’s will to become great.
Everyone has to experience failure before they make something great. Sometimes that means taking scientific and artistic skills from one career and combining them. Cal Newport, professor of computer science at Georgetown University and author of So Good They Can’t Ignore You, refers to this as deliberate practice — a method for building skills by ruthlessly stretching yourself beyond where you’re comfortable.
By taking what they’ve learned across disciplines in multiple industries and applying them to new ventures, the D.C.-based innovators mentioned above are a reflection of persistence and perseverance. Change, with deliberate practice over an extended time frame, should be encouraged and these entrepreneurs are a testament that any obstacle can be turned into an opportunity.
