Interview With Bill Gurley: The Guy Who Backed OpenTable, Yelp, GrubHub, Twitter, Zillow And Uber

What do OpenTable, Yelp, GrubHub, Twitter, Zillow, and Uber have in common? Bill Gurley, and of course his firm Benchmark.

In my opinion, Bill’s at the top of the top venture capitalists today. With a deep background in engineering, capital markets, and venture (not to mention basketball), he’s got all the bases covered when he talks to entrepreneurs about building great companies that will be successful for decades – not just years.

I was pleased that he was willing to answer some of the questions that most fascinate me about his biography and how he advises the companies he backs.

His answers follow below:

http://www.forbes.com/sites/ericjackson/2014/08/26/interview-with-bill-gurley-the-guy-who-backed-opentable-yelp-grubhub-twitter-zillow-and-uber/

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13 Questions Every Leader Should Think About (Often)

Do you keep 50% of your time unscheduled?

This sounds like a strange question—in fact, for those of us with back-to-back meetings and to-do lists a mile long, it might sound downright silly.

But if you’re a manager, leader, or entrepreneur, it’s one worth pondering. As Dov Frohman explains in his book, Leadership the Hard Way, leaders with sufficient “slop” in their schedules can reflect on lessons they’ve learned and strategize for the future in a way that people with jam-packed schedules simply can’t.

This is just one of the incredibly insightful questions posed in Inc.’s compilation of “100 Great Questions Every Entrepreneur Should Ask”—a list featuring successful business leaders’ recommendations on what leaders of the future should be asking themselves regularly. While the quotes in the list can help entrepreneurs think through everything from competitive strategy to product innovation, we thought that some of the best tidbits were helpful takeaways for managers at any company and any level.

Here’s a quick a roundup of our (adapted) favorites from the list—to ask yourself today.

  1. What is it like to work for me?
  2. What prevents me from making the changes I know will make me a more effective leader?
  3. If no one would ever find out about my accomplishments, how would I lead differently?
  4. Did my employees make progress today?
  5. If I had to leave my organization for a year and the only communication I could have with employees was a single paragraph, what would I write?
  6. What did I miss in the interview for the worst hire I ever made?
  7. How is the way I think and process information affecting my organizational culture?
  8. Do my employees have the opportunity to do what they do best every day?
  9. Do I see more potential in people than they do in themselves?
  10. Why should people listen to me?
  11. How do I encourage people to take control and responsibility?
  12. Do I know what I’m doing? And who do I call if I don’t?

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Inside Google’s Secret Drone-Delivery Program

After two years of development, the Silicon Valley company reveals to The Atlantic that it has substantial research effort into building flying robots than can deliver products across a city in a minute or two.

A zipping comes across the sky.

A man named Neil Parfitt is standing in a field on a cattle ranch outside Warwick, Australia. A white vehicle appears above the trees, a tiny plane a bit bigger than a seagull. It glides towards Parfitt, pitches upwards to a vertical position, and hovers near him, a couple hundred feet in the air. From its belly, a package comes tumbling downward, connected by a thin line to the vehicle itself. Right before the delivery hits the ground, it slows, hitting the earth with a tap. The delivery slows, almost imperceptibly, just before it hits the ground, hardly kicking up any dust. A small rectangular module on the end of the line detaches the payload, and ascends back up the vehicle, locking into place beneath the nose. As the wing returns to flying posture and zips back to its launch point half a mile away, Parfitt walks over to the package, opens it up, and extracts some treats for his dogs.

The Australian test flight and 30 others like it conducted in mid-August are the culmination of the first phase of Project Wing, a secret drone program that’s been running for two years at Google X, the company’s whoa-inducing, long-range research lab.

Though a couple of rumors have escaped the Googleplex—because of courseGoogle must have a drone-delivery program—Project Wing’s official existence and substance were revealed today. I’ve spent the past week talking to Googlers who worked on the project, reviewing video of the flights, and interviewing other people convinced delivery by drone will work.

Taken with the company’s other robotics investments, Google’s corporate posture has become even more ambitious. Google doesn’t just want to organize all the world’s information. Google wants to organize all the world.

During this initial phase of development, Google landed on an unusual design called a tail sitter, a hybrid of a plane and a helicopter that takes off vertically, then rotates to a horizontal position for flying around. For delivery, it hovers and winches packages down to the ground. At the end of the tether, there’s a little bundle of electronics they call the “egg,” which detects that the package has hit the ground, detaches from the delivery, and is pulled back up into the body of the vehicle.

The Google delivery drone releasing a package (Google)

Read more : vhttp://www.theatlantic.com/technology/archive/2014/08/inside-googles-secret-drone-delivery-program/379306/

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    Forget the delivery drones and TV deals. Jeff Bezos’ stealthy foray into the unsexy world of B2B distribution is likely his most disruptive move yet — and it has an $8 trillion swath of the economy running scared. In recent months global Internet retail behemoth Amazon.com   has green-lit six new original TV shows, announced…
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AMAZON: NOT AN E-COMMERCE COMPANY

Let’s start with the premise that Twitch, the video-game watching network, is the next ESPN – you know, the jewel in Disney’s crown that, by itself, is worth $50.8 billion. Like ESPN, Twitch is about live competition, and, like ESPN, Twitch does exceptionally well in the highly desirable young male demographic.1 Obviously this is the best possible outcome, far-fetched though it may sound. It is certainly an outcome that would make Amazon’s purchase of Twitch for $970 million an amazing deal. It would not, however, have anything to do with e-commerce.

http://stratechery.com/2014/amazon-e-commerce-company/

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This Guy Is Launching 12 Startups in 12 Months

Can’t get enough of that animated GIF where Oprah unleashes a swarm of bees on her studio audience? Or the one where some guy gets hit in the face by a trashcan? You’re in luck. Soon, a new startup called Gifbook will sell you some flip books that recreate your favorite animated GIFs, so that you can enjoy them even when away from your computer. Three books will set you back just $25.

That may sound like a gag from Silicon Valley, the spot-on TV parody of the tech world, but Gifbook is a honest-to-goodness internet service. It was founded byPieter Levels—a 28-year-old Dutch programmer, designer, and entrepreneur—and it’s just one of several unexpected online services Levels has unleashed on the world.

Levels is on a quest to launch 12 “startups” in just 12 months, and he’s a third of the way home now. One, called Play My Inbox, gathers all the music it finds in your e-mail inbox into a single playlist. Another, called Go Fucking Do It, gives you a new way to set personal goals. Basically, if you don’t reach your goal, you have to cough up some cash to Levels. Gifbook, due to launch by the end of the month, is his fifth creation.

LEVELS REPRESENTS EVERYTHING THAT’S RIGHT ABOUT THE STATE OF THE TECHNOLOGY INDUSTRY—OR EVERYTHING THAT’S WRONG.

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A Theory on Long-Term Economic Trends and a Sudden Crash

Employment losses during the Great Recession may have had more to do with factors like the rise of Walmart than with the recession itself, two economists say in a new academic paper.

The paper, presented Friday morning at the annual gathering of economists and central bankers at Jackson Hole, Wyo., argues that the share of Americans with jobs has declined because the labor market has stagnated in recent decades — fewer people losing or leaving jobs, fewer people landing new ones. This dearth of creative destruction, the authors argue, is the result of long-term trends including a slowdown in small business creation and the rise of occupational licensing.

“These results,” wrote the economists Stephen J. Davis, of the University of Chicago, and John Haltiwanger, of the University of Maryland, “suggest the U.S. economy faced serious impediments to high employment rates well before the Great Recession, and that sustained high employment is unlikely to return without restoring labor market fluidity.”

http://www.nytimes.com/2014/08/23/upshot/long-term-trends-in-economy-more-worrisome-than-sudden-crash.html

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38 maps that explain the global economy

Commerce knits the modern world together in a way that nothing else quite does. Almost anything you own these days is the result of a complicated web of global interactions. And there’s no better way to depict those interactions and the social and political circumstances that give rise to them than with a map or two. Or in our case, 38. These maps are our favorite way to illustrate the major economic themes facing the world today. Some of them focus on the big picture while others illustrate finer details. The overall portrait that emerges is of a world that’s more closely linked than ever before, but still riven by enormous geography-driven differences.

http://www.vox.com/2014/8/26/6063749/38-maps-that-explain-the-global-economy

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This time is not that different, long-term unemployment edition

If we were asked to make the Great Recession look radically different from all other postwar US recessions, we would point to this chart:

It looks as if people who lost their jobs in 2007-2009 are much more likely to remain unemployed — 5 years after the recession officially ended — than their predecessors. On top of that, of course, is the massive and sustained decline in the share of working-age people with a job:

But an intriguing paper by Jae Song and Till von Wachter presented at this year’s Jackson Hole symposium suggests that the impact of the most recent recession on long-term unemployment was not actually that unusual given the number of jobs lost at the outset. The paper also presents some encouraging evidence that many of those who appear to have given up hope of finding a job could rejoin the labour force if the economy keeps expanding, as well as sobering demonstrations of the permanent costs of being laid off.

http://ftalphaville.ft.com/2014/08/26/1942831/this-time-is-different-long-term-unemployment-edition/?

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The Fed Is Not As Powerful As We Think

This past week marked the annual gathering of bankers, financial officials, and other economic experts hosted by the Kansas City Federal Reserve Bank in Jackson Hole, Wyoming. On Friday, Fed Chair Janet Yellen and European Central Bank head Mario Draghi both spoke; in a slow week for the markets, these speeches received the bulk of the econ media’s attention, and Yellen’s remarks were heralded for days as the week’s major financial event.

Zachary KarabellZACHARY KARABELL

Zachary Karabell is an author, money manager, and commentator. His most recent book is The Leading Indicators: A Short History of the Numbers That Rule Our World.

This emphasis on the utterances of the Fed chair is only one aspect of a deification of the Fed and whoever heads it. The elevation of the Fed chair to current heights is not benign. It fosters an unhealthy dependency and excuses policymakers and market participants from making their own judgments, as well as their own mistakes.

More problematic, however, was the topic of Yellen’s speech: the labor market. Don’t get me wrong. The labor market is a crucial economic topic. But the notion that the Fed should be responsible for the labor market is both new and flawed. The so-called “dual mandate” of the Fed is to focus on price stability and on employment. But the idea that the Fed can do much to affect employment is, at the very least, questionable.

The pronouncements of the chair of the Federal Reserve now occupy a special place in the financial ecosystem. The Fed chair regularly appears before Congress to give an assessment of the economy, and these appearances receive considerably more attention in media and financial circles than equivalent briefings by the Treasury secretary, let alone the chairpersons of the National Economic Council or the Council of Economic Advisers.

 

http://www.slate.com/articles/business/the_edgy_optimist/2014/08/janet_yellen_jackson_hole_speech_let_s_stop_deifying_the_fed.html

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Surging U.S. Stocks Echo Dot-Com Rally With Cheaper P/E

Every day, the American bull market looks more and more like the dot-com bubble of the late 1990s. Except when it comes to valuations.

The Standard & Poor’s 500 Index (SPX) jumped above 2,000 today and the Nasdaq Composite Index is within 10 percent of a record reached in March 2000, a time when Pets.com Inc. was worth more than $150 million. Investors have seen annualized returns of 24.5 percent since March 2009, compared with 27.1 percent over an equal amount of days ending March 24, 2000, the peak of the Internet rally, according to data compiled by Bloomberg.

Stocks are catching up to the pace of more than a decade ago amid record profits, near-zero interest rates and economic growth that’s expected to accelerate. While the dot-com bubble peaked with the S&P 500 trading at close to 30 times annual earnings of its companies, the valuation is about 19 times now, data from S&P Dow Jones Indices show.

“We’re on the expensive side of fair value, but certainly not in the bubble place they were in the 2000 period or in a place that concerns us,” Ed Hyland, an Atlanta-based global investment specialist at JPMorgan Chase Private Bank, said in a phone interview. The firm oversees about $1 trillion. “There is potential for the market to go higher.”

Durable Goods

The S&P 500 rallied 0.3 percent to 2,004.16 as of 10:57 a.m. in New York after a report showed the biggest ever jump in durable-goods orders and consumer confidence unexpectedly increased. The Chicago Board Options Exchange Volatility Index, known as the VIX, added 0.9 percent to 11.81.

Five years of gains have driven the S&P 500 up 195 percent, compared with a 236 percent advance over the comparable period ended in March 2000. With the Federal Reserve calling valuations in smaller biotechnology and social-media companies “stretched” and mega-deals resurfacing, concern that prices are too high is growing.

Over the past three years, investors have seen a flood of technology and Internet companies go public, including King Digital Entertainment Plc, Yelp Inc. and Twitter Inc. Alibaba Group Holding Ltd., the Chinese e-commerce company, is working on an initial public offering that may be the biggest in U.S. history.

The dot-com bubble was marked by unprofitable Internet companies selling shares for the first time, such as Pets.com, which had a sock puppet mascot and raised $82.5 million in February 2000. The company has since gone out of business.

http://www.bloomberg.com/news/2014-08-25/record-gain-driving-u-s-stocks-with-speed-of-dot-com-era.html

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