Takeaways from AngelList Radio’s Podcast with Tyler Willis and Jason Calacanis
Recently, I re-listened to Tyler Willis have jason Calacanis on the AngelList Radio podcast. Despite the fact that the episode was recorded a few months ago, I couldn’t stop listening to it. In fact, I was about halfway through it the second time when it occurred to me that I should take a few notes on it to summarize the incredible amount of information that Tyler and Jason discussed (it is an hour and a half long, after all).
The sheer amount of important information covered makes summarizing all of it challenging, but I’ll give it a try. I should note, though, before delving in, that some of the most poignant things covered were in the form of life stories and philosophies from Jason — a summarized transcription of which does not do them justice. To really soak up the underlying meaning of what’s listed below, you really need to listen to it for yourself. Possibly multiple times.
Moving along though. The points which Tyler and Jason hit can most aptly be placed within a number of areas of thought and consideration.
- Entrepreneurs and Founders
- (Angel) Investing
I’ll do my best to tackle each one of these, but keep in mind that these are just a few of the points which struck me as the most powerful. I will discuss some in more depth than others, as a number of them are self-explanatory.
Jason’s view of people in my mind basically splits into three main veins:
- Human calculation
- and Empathy (arguably the most important one)
This goes to “Jason’s Law of Angel Investing,” which according to Jason is: “I don’t need to know if the idea’s going to win, I [just] need to know if the person’s a winner.”
Jason looks for and reads the things that other people might miss: body language, personality, and interactive cues. As he mentions, he will talk about the [founder’s] idea through the lens of trying to figure out if [s/he’s] a winner or not. This sort of human calculation sets Jason up for the long game, something which he discusses as being a part of his overall strategy.
Jason is extremely bullish on his relationships, wanting to be the first call a founder makes when things are going wrong, when the situation looks dire, or just when founders are having a hard time. He discusses understanding that being a founder is lonely, and sometimes all one needs is an ear to vent to; someone to “shoot the shit” with. Perhaps this goes back to Jason’s major in psychology — certainly his ability to read people and situations benefits from such a thought process.
Life is relationships, pure and simple. Everything else is secondary, and Jason aspires to (almost obsessively) cultivate his relationships. (That’s a good thing, by the way).
This however, leads into what I consider to be one of the central theses of the discussion: empathy.
Startups are hard. Actually, that’s a lie; startups are fucking hard. And sometimes the best thing is when someone will just sit and listen while you vent and fume for a little while. Loneliness kills, and having a friendly ear can make all the difference on those tough nights.
One quote seems to capture what Jason’s mentality would be during those nights on the phone with a founder having a hard time:
“When I invested in you, I knew the odds were against you, and I still believed in you.”
That pretty much sums up all that needs to be said.
Jason’s philosophy of building close relationships simply by being a nice human being — “buying [the founder] a cup of coffee, buying them dinner, or just saying ‘I believe in you’” — is exactly how I see the world as well. Cultivating relationships means doing what you can for other people because you can do it, not because you see some reward at the end of the tunnel. In the long run, good relationships do tend to reward people in often unexpected ways, but that should never be the crux of the relationships. Relationships are empathy and positivity. It’s about being magnetic.
Within the context of mentalities, Jason hits on a number of notions, though the one that sticks out to me the most is his focus on the “journalistic mentality.” Clearly a holdover from his time as a journalist, Jason discusses how he looks for people who exhibit great journalistic skills: an inquisitive mind, good communication skills, and being able to read situations well. In many ways, this connects with a lot of his poker metaphors. (There are lots of poker metaphors).
As he points out:
“What happens when you interview [people] for a long time is you start to understand when they’re full of shit and you start to tell…who’s full of greatness…”
Bluntly put, this is very true. I experienced it a lot during my time as a music journalist, speaking with artists and other industry professionals. Being a journalist is one of the best ways you can get to know the industry you want to be in.
“[A journalist] equals an inquisitive person who can communicate well.”
Entrepreneurs and Founders
Jason spends a lot of time talking about how he identifies great founders and what anyone should be doing and/or thinking about if they want to be an entrepreneur.
First and foremost, know “why.” Why are you doing this, what is the underlying reason?
For Jason, answers like “the market seems open” or “I wanted to try being a founder” don’t cut it. It speaks to the authenticity if a founder is doing it for a larger reason than just trying to take advantage of a particular market situation. There needs to be a certain inevitability to what they’re doing, and how they see the world (something which Chris Sacca has also touched on).
As Jason sees it, there needs to be a real sense of purpose in the founder(s) — a mission: “The world needs to evolve in this way, and we have the solution, and we NEED to implement our solution to change the way the world works.”
Jason: “Really talented people tell you where the world is going, and then you get to be part of it. And then you get to help them launch the rocket.”
Don’t Screw Your Supporters
They need to have the integrity not to screw the people who supported them early on. This is exactly in line with a well-known adage in the music industry which I always quote: “For those who forget us on the way up, we’ll see you on the way down.” Don’t forget the people who made your rise possible.
Be a Punk
Founders need to be punks.
Ok so Jason didn’t actually use this word, but as I explained in my post here, that’s really the type of mentality he is describing when he articulates what he looks for in people.
Additionally founders need:
- To have an armor; a relentless drive, and be relentlessly resourceful
- Have maniacal execution skills
- Unstoppable determination
Jason relayed a lot of information about investing and investment strategy. He discussed a lot of his personal strategy as well as how new investors can get in the game and start to learn the ropes.
For the sake of time (and because a lot of this is fairly self-explanatory), here’s a rundown of what he discussed:
Tips (for Angel Investing)
- Spread your bets
- Start by making investments slowly over a year
- Even if you lose money, you’ll learn something
- Always try to learn before diving in head first
- Join syndicates
- Get in the game and start
- Double and triple down on your best bets
- Meet with founders as much as you possibly can
- Play the cards of the best investor at the table if you’re new to investing
- Do the work, be proactive
- Play the long game
- Be patient and learn
- Financial performance will come; focus on a portfolio strategy
- Investing is a fight/struggle
- Don’t ever discount anybody
- Make a 5-year plan
- Pro-rata rights
- You want the “difficult” people; these people “mix it up”
- Focus on being the most valuable and helpful person to the founder
Need to Have
- A comfort losing a lot of your money (which you invested)
- A comfort with the “shitshow” realities of investing
Don’t Be an Investor If
- You’re annoying
- You’re a control freak/obsessive person
- You can’t remain cool and calm
- You can’t remain classy in the face of defeat
- You can’t deal with bad news
- You can’t be a mensch
As Jason articulated:
“I have to be the most valuable [person] to the founders. [I ask myself,] ‘Am I doing the most for that person?’”
How did Jason get to this thought process? When he started investing he made a list of all the things he could do for founders to provide value to them. Then he did them.
The last major point which Jason discusses is democratization. In this case, he’s referring to the democratization of knowledge and power, and how dynamics have totally shifted in the last 10 years, allowing for entrance into entrepreneurship for tons of people who previously had very little recourse.
Interestingly enough, as he’s discussing the democratization of knowledge which can be used for growth, development of new skills sets, and other such things, I’m just reminded of an article I wrote a few months ago on the democratization of music. True, Jason is describing a different type of democratization process, but the parallel works. In the same way that scarcity has become an obsolete mentality for music, so too has scarcity of startup and entrepreneurial knowledge become obsolete in the worlds of business and tech.
I said it once and I’ll say it again: scarcity is obsolete; democratization wins.
“[Entrepreneurship is] stumbling around in the dark room, fumbling around, until your hand hits the wall, and flicks on the light switch.” — Jason
Jason also briefly touched on the differences he sees between his LAUNCH incubator and Y Combinator, but that’s a whole other discussion for another time.
All in All
All in all, the podcast was intriguing enough for me to listen to it twice all the way through, and then take notes on it for a post. I give it up to Tyler Willis for conducting a great interview, and look forward to a hopeful follow-up with Jason again.
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Originally published at adammarxsmind.wordpress.com on March 18, 2016.