Thriving Startup Community in Raleigh-Durham

There’s something about Raleigh-Durham’s high-tech startup scene that’s reminiscent of how the greater Boston area’s high-tech startup scene felt to me in the late 1990s and early 2000s. While I was 15 years younger then, and certainly more naive than I am now, that energy in Boston and Cambridge in those days was unmistakable and those who were part of the scene then will remember it as fondly as I do. Raleigh-Durham feels very much like that to me now and I suspect that other smaller markets comparable to Raleigh-Durham might feel the same way, as they each go through their own startup renaissance.  There are high degrees of enthusiasm, passion, and intelligence with very little arrogance, inferiority complexes and entitlement. While the startup ecosystem here has all the right pieces in place (world class educational institutes, state and local policy, public and private investments, infrastructure, talent, etc.) some for longer than others, the area needs a bit more time and cultivation until it gets to the next inflection point. There’s even a (mostly) friendly competition between Raleigh and Durham that adds to the area’s development.

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You Can Be Very Abrasive!

That’s what she said to me. It was around 2004 and she was a mentor to me. I held her in such high regard, I admired her and when she spoke I listened. We were having lunch on a beautiful spring day in Harvard Square, dining on a restaurant patio. She was cultured, she had the pedigrees, she’d been around the world and back, and she’d totally kicked ass over her highly entrepreneurial career. Now, in her early 60s, she was as wise as she was inspiring. And she said, “you know, you can be very abrasive sometimes.” My fork stayed steady in my hand while I paused and humbly and sheepishly responded, “I know.” I sat back to hear her out.

A few years later I find myself far from the guy I was then, yet very much still that guy. I feel like I’ve come full circle in many ways. And only when you go on that journey do you really learn. A pattern has been revealed.

Today I start a new stage of my career. After two and a half years at Litle & Co., as their Vice President of Marketing, and through their late 2012 acquisition by publicly traded Vantiv, I’m getting back to what I do best – startups and entrepreneurship. My experience at Litle & Co. was nothing short of educational and enjoyable. I learned so much. Most of all, I proved something to myself, and that was the biggest gain.

For the most part I’m taking time off, to enjoy spring and summer, to see friends and family, to enjoy life, but also to make my next move a smart one. The next stage of my career is an important one. At 37 it has to be wise. Not conservative, mind you, but wise. I often fantasize about a totally different career path, one of journalism, or of science, always something that might make real change in the world. As one of my best friends often says, “the last thing we need is another app to help me find the pizza, review the pizza, get a deal on the pizza, take a picture of the pizza, and clip recipes of the pizza.” I’m often frustrated by the lack of real innovation out there, truly transformative stuff, specifically in the digital space. Stuff that really makes a difference. But it’s not enough to be frustrated, that breeds apathy. Instead I’m embarking on something new here. I’m also often frustrated by what I’ll call the cult of personality that’s come out of and surrounds the Internet’s entrepreneurial scene, here in Boston, in NY, in Silicon Valley. Scenesters, hipsters, hangers-on. Me toos. That stuff is just such a turn off. And none of it even really matters. But again, it’s not enough to be frustrated and annoyed by it.

So with that I’m launching an experiment, if you will. I call it Sure Shot Labs. Sure Shot Labs will be the vehicle that helps me navigate this transition, these bumpy roads. Through Sure Shot myself and a few trusted and passionate colleagues will try something new for all of us. We’ll build products and invest in ideas we have, on our terms. The traditional start-up model is gone. The lean startup is here. We will consult, yes, we will make our clients happy indeed, and we will take the proceeds from those engagements and invest them in the lab, in our experiments, in innovation and in products. This will be fun.

When I think about that conversation with my mentor nearly 10 years ago, I think about the young man I was. I think about how “abrasive” I was. It was unearned confidence and it was fear. Back then I had to compete with others who were smarter, bigger, stronger, more experienced, more wealthy, more well connected, and more educated. Today I still have to compete with those people. And they still might be bigger than me, stronger than me, smarter than me, wealthier than me, more well connected and more educated. But what they lack, and have never been able to compete with, is my endless tenacity, my ability to wear them out, like a wolf and its prey. And the street smarts, the innate will to work smarter, to work harder, to out-think and out-smart, to out-play, to outwit and out-will. I’ve always been out of my league. I’ve always been in over my head. I’ve rarely done things their way. I don’t plan on starting today.

 

Founder Institute Comes to Boston

In early 2007 a new website was founded by someone only known as Ted. The website was simply called The Funded. Simply put, The Funded allows entrepreneurs to rate and review venture capital firms and angel investor groups. While the site, and its founder, has been highly criticized, The Funded took off. For the first time ever, entrepreneurs had a place to go and rate and review investors, and for those searching for potential financing, a place to read those ratings and reviews. The Funded has, in it’s own small way, leveled the playing field and has served the entrepreneurial and VC communities well. For the first time ever, VCs were publicly being held accountable. For example, see here for the most loved VCs of 2009. Some say it’s a one-sided forum, and many just don’t care. Most entrepreneurs agree though – The Funded is a good thing.

The whole idea of The Funded really intrigued me, and had something in common with a little side project of mine called The Founder’s Quandary. But I had no idea who was behind The Funded, so I had no idea who to contact about getting involved or at least offering a virtual high-five.

For it’s first six months it was unknown who “Ted” really was. That is, until Ted unveiled himself as Adeo Ressi, a well known, somewhat controversial, entrepreneur. In the past couple of years Adeo and I have exchanged a number of emails, mostly about how I might help The Funded and perhaps even help with something here in Boston. Well, the good news is that The Funded has announced Founder Institute, and it’s arrived in Boston!

The Funded Founder Institute, a four month program to help founders build the next generation of world-class technology companies, is launching a new semester in Boston from July, 2010, until October, 2010. The program is run by founders for founders, providing a structure for successful entrepreneurs to share their experiences and to provide guidance. Everyone that graduates from the program is invited to join a pool to share in the equity upside generated from the success of their peers. This adds a unique camaraderie to the program and creates a long-term peer support group with a vested interest in your success. If you have a new company or if you are thinking to start a company, take a moment and apply to the program. The program has an early acceptance deadline of May 23rd. Apply here.

Founder Institute has already lined up great mentors for Boston, including;
  • Phil Libin, CEO, Evernote
  • Craig Kanarick, Cofounder of Razorfish
  • Dan Shapiro, CEO of Ontela
  • Eric Melin, CEO of Philanthropist.org
  • Stephen Hau, CEO of Sharable Ink and Patientkeeper
  • Doug Brenhouse, Cofounder of Metacarta
  • Ryan Alfred, Cofounder of Brightscope.com
  • Roger Yee, Former CEO of ShadowLogic
  • Matt Johnson, CEO of OmniStrat
  • And more…
The Institute training and apprenticeship program is complimentary with other incubators, such as Y Combinator and TechStars, both of whom have history in Boston.  “Several people have suggested that the program is competitive with TechStars… However, I just don’t see it that way and encourage all kinds of programs like this in the entrepreneurial ecosystem,” states Brad Feld (TechStars Co-Founder) on his blog, encouraging entrepreneurs to apply to the Institute.
Boston is the third East Coast location, eighth U.S. location, and 10th chapter of the Founder Institute worldwide. The Institute now expects to enroll 800 founders per year in a four-month training and apprenticeship program, differentiated by shared equity upside of all participants. Apply here today!

If you’re an entrepreneur in Boston I hope you’ll take a look at this opportunity and get involved! I’m just thrilled to see this happen, and I’m eager to see Founder Institute nurture and provide fertile ground for entrepreneurs!

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Kill Section 926

If you read this blog, you don’t need to be reminded that I’m an entrepreneur, or that CitySquares has been funded by angel investors from eCoast Angel Network, to Jonathan Kraft, and Mark Cuban, among others. The bottom line is that CitySquares would not be here today if it were not for our angel investors, but more generally if it were not for Angel Investing as a whole. Most importantly though, angel investing is good for America, that simply cannot be disputed. So why is Senator Chris Dodd trying to make it harder for entrepreneurs and companies to raise angel financing, and why is he going to raise the minimum requirements to be an accredited investor, and on top of it all make the SEC review every angel deal before it can get done?

Is the Democrat from Connecticut out of his mind? What is he trying to achieve here, raising revenues for the federal government? I don’t get it – where’s the logic in this provision? Maybe someone smarter than me can help me understand, but in the meantime if you are for entrepreneurship, for innovation, for job creation, for small business, then go here and sign the petition to stop this nonsense.

More information can be found here on The Huffington Post, in a well penned piece from Robert Litan. A quote follows:

Various studies published or sponsored by the Kauffman Foundation have made it abundantly clear how dependent the U.S. economy has been and will continue to be on the formation and growth of new companies. Angel investors are important funders of new companies. There is no good time to make it more difficult for them to invest in startups, and now — when the economy is struggling to recover from what may be the deepest recession since the Great Depression — is the very worst possible time to discourage angel investment.

Sign the petition here.

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Four Years

iStock_000002119635SmallToday is a special day for CitySquares. It was four years ago today that Bob and I launched the CitySquares.com website. We launched it with only 7 neighborhoods: Porter, Davis, Harvard, Central, Kendall, Union, and Inman. We actually held a launch party in Davis Square, invited local businesses, residents, artists, musicians and others to come and join the festivities. It was a blast! Check out the CitySquares.com Launch Party on YouTube.

When I look back at the entrepreneur I was four years ago and compare that guy to the entrepreneur I am today, I see two very different people. The entrepreneur in 2005 was much more naive and immature. I was so much more of an idealist, so much more pie-eyed, and I had a sharp tongue and quick trigger-finger that I had a hard time controlling. I’m still an idealist, I’m still pie-eyed, and I’m still naive and probably still a bit immature, but today I’m much more rooted, more grounded, more focused, and much more thoughtful about how I communicate and how I handle stress. That’s been a real battle for me – balancing life, making sure that my work does not define me, and hence dominate me.

So much has changed in the local search arena too. When we started many of the players we hear about today were as small as we were. Citysearch was really the only major player. We hardly knew what we were stepping into and local search is a more crowded and competitive space than I ever anticipated, and rightfully so, the market opportunity is massive. That kind of competitive environment has only kept our edges sharp and kept our eyes keenly focused.

The business itself has matured in many ways yet the model itself is still largely intact. That’s a real testament to the market opportunity and do our original business model. While the economy has presented a number of substantial challenges, we’ve been able to navigate our way through the choppy waters and in some ways its actually helped us sharpen our tools. It took us a few years to understand a number of the most fundamental parts of our business model and test them, and now, through some amazing partnerships and alliances we’re about to unleash some powerful solutions to a core problem in the marketplace.

Some of our identity changed over the past four years too. Unfortunately, as a small business with limited resources, there are only so many things we can accomplish. Our heart is big here at CitySquares, and we want to do so many things, want to give and contribute so much to society. If we were a non-profit, we could focus all of our time on these things, but we’re not – we’re a business. We’re in business for a reason, to tackle the market, solve a problem, deliver value for our customers, and along the way make money and provide a return for our investors. It’s not complicated, but realizing that took some time. I look forward to returning to those ideals at some point, be it through CitySquares or other channels.

My partnership with Bob has grown so much, and it’s just been awesome to watch him grow as a professional in parallel to my growth. Bob has stepped up, challenged himself, and done so through some very difficult circumstances. Not only has my partnership with Bob grown and blossomed into a very solid and loyal one, but our friendship has strengthened immensely. We may not hang out as much as we both would like but we don’t need to. I see Bob more than I see my own wife, and our friendship is evident to those who work with us and evident in our ability to work together through thick and thin.

I’ve also had the pleasure of seeing my colleagues grow as people, as life inevitably happens, and see them grow as professionals. Start-up life is not for everyone! That’s a fact! People who I work alongside, like Justin, Kim, Michael, Amber have proven themselves not just as contributors to the business and the company, but as loyal companions who continue to illustrate every day what tenacity and perseverance is about. They are the embodiment of these characteristics. They’ve also become friends and I’m so proud of them, and I’m excited to work with them in the months and years to come, and be able to provide for them and support them as they grow.

I’d like to point out some of the folks who’ve joined the team, stuck it out, and supported us in any number of ways. These people are not all necessarily employees, they’re friends to CitySquares too and their contributions to the company and the business have just been awesome. These folks continue to support us. The list is long, they know who they are. I’m not sure that this anniversary merits thanking them publicly, not quite yet – that day will come, I’m sure of it.

Along the way over the past four years we’ve made friends in the business too, with competitors, industry experts, vendors, service providers, consultants, press and media, and fellow startups and entrepreneurs. They’ve all added to the fun and the experience of CitySquares. Along the way we’ve also seen companies fail to succeed, entrepreneurs see their dreams crushed, and see the underbelly of entrepreneurship, startup life, and even see unethical behaviors by people and companies. These things have all taught us, made us stronger, and made us wiser. No different than a person going through life – learning lessons and becoming wiser in the process.

We’ve made mistakes, of course. I’ve made mistakes, no doubt. But today, on our 4th anniversary I can proudly admit that we’re doing something right. It takes a team to make that happen. No one person is responsible – everyone and everything listed above, and more, is just one of the puzzle.

So while an anniversary such as today’s is special, its just a milestone. There’s still so much work to be done. We can celebrate briefly, but the work continues. Every day is another day in the trenches and we need to advance our lines.

Onward and upward we climb, into our fifth year, heads held high, humbled, courageous, wiser, and focused more than ever.

Thank you for reading.

Angels are Good, Right?

6a00d83421dda453ef00e54f2e25558833-640wiFinally, someone is calling attention to those angel investor groups who charge entrepreneurs unfair amounts of money to pitch to them, and it’s not someone with a small microphone or with no following. Jason Calacanis has announced a “jihad”, as it seems, and is stirring things up. This topic is not a new one for many entrepreneurs but many more don’t know what all this means or what the fuss is out, and could use a bit of a primer on Angel investing and how it works. Given that most of the people who read my blog are aspiring entrepreneurs and those doing it for their first time I thought I’d shed some light on the subject. This is a bit lengthy, and not for vanity – I think it’s important to cover the subject thoroughly.

In our great country, the US of A, there is an overwhelming spirit of capitalism that trickles down to every street corner and school yard. Over the decades that spirit has become what it is today – the spirit of entrepreneurship. Once upon a time “entrepreneurship” was actually a rare thing, but today it seems that everyone knows an entrepreneur in one form or another. People like Bill Hewlett and David Packard, Bill Gates, Paul Allen, Larry Ellison, Steve Jobs and more recently Larry Page and Sergey Brin, among countless others, have made entrepreneurship what it is today – something that many actually aspire to become. It’s a radical new time, a very different one than those my parents grew up in.

One of the most misunderstood part of entrepreneurship is also one of the most critical parts – the part of fundraising. Over the past few years as CitySquares has raised money, it never ceases to amaze me how many people ranging from self proclaiming “entrepreneurs” to family and friends just don’t have the slightest concept of what raising money for a start up actually means. I’ve often heard some people inquire “wait, you got so-n-so to just give you money?” Just the tone of that question makes it sound like an entrepreneur is like a street corner pan handler begging for charity.

There are primarily two types of investors in the entrepreneurial and start-up worlds – Angel Investors (and Angel groups) and Venture Capitalists (and venture capital firms, a.k.a. VCs). I won’t be discussing VCs, just Angel’s, as they’re affectionately called. Angels are indepenently wealthy individuals who invest their own money in a business and usually do so in exchange for equity (usually Preferred Stock) in the company, or sometimes in the form of a Note – effectively a loan that will convert into Preferred Stock – loan companies help a lot (visit their website here). It’s not that complicated really. Some angel investors are professional angel investors, others are current or former entrepreneurs themselves. For example, one of my Angel’s built and sold his high-tech company to Yahoo! in the late ’90s for several billion dollars in stock. Another of our Angel investors has been an executive at several multi-national high-tech companies and did extremely well along the way as these companies exited (went public or were merged or acquired). Angels are also “accredited investors” as defined by the Securities and Exchange Commission. Sure, anyone with some money can make some investments and call themselves an Angel Investor, but to truly be an legitimate investor they really need to be an accredited investor (SEC definition, Wikipedia definition). I should also briefly note that the term “Angel Investor” is not a legal term, it’s more of a term of endearment that seems to have stuck throughout the years.

The most famous angel investment that I’m aware of is the $100,000 check that Sun Microsystems co-founder Andy Bechtolsheim cut to Google after watching Larry Page and Sergey Brin demonstrate their technology. The funniest part of this story is that the founders couldn’t do anything with the check for weeks because they didn’t have a legal entity formed under which the check was made out to.

There are other famous Angel investors like Andy, including Mark Cuban, Mark Andreessen, Ron Conway, and others. There are thousands of mostly unknown Angel Investors too. At the end of the day they all want the same thing – a return on their investment. Fair enough.

Some Angels work together, in what are known as Angel groups. These Angel groups typically form out of a shared sense of fostering entrepreneurship in a specific city or region or industry, among other reasons. The Angels might meet once a month to discuss their investments, invest together in companies, and invite startups to pitch them.

Here’s where it gets sticky. Imagine, for a minute, that you’re a young and budding entrepreneur. Let’s even say that you dropped out of college (like so many famous entrepreneurs have), you live in a house that you share with seven other young people, and you barely make ends meet. You make enough money waiting tables to cover your share of the rent and bills, to go out with friends, to take your girlfriend out, and afford yourself a cell phone and other bare essentials (by today’s standards). In addition to your part time job waiting tables at a nearby restaurant, you, in your spare time, have an affinity for cars and technology. And in this spare time you conceived a new technology that can power automobiles using carbon dioxide and have a very simple prototype designed. Pretty cool right? Probably a market for this? Maybe sell it to GM, if you can just prove that it works well, and that it’s affordable? Solve a climate problem? OK, so you need money. Your Mom and Dad are tapped, and they’re also pissed because you dropped out of college. Your uncle is good for $2000, so is your girlfriend’s parents. But you need more than $4000 to really build a working prototype, to hire someone to help you market it to car manufacturers, to hire a patent attorney to help you protect your Intellectual Property, etc. Sitting alone at a local pub you put some numbers on the back of a napkin and calculated that you really need $200,000 to get this idea off the ground and build a product and go to market. So… where do you go?

You have some friends who know people that have raised money from investors and had some success – you get the introductions and before you know it you’ve gone from playing Wii at home with your roommates to being thrust into the world of entrepreneurship, IP, angel investing, venture capital investing, business models, business plans, etc etc. But you need capital – plain and simple. Where are you going to go? You need to meet some Angel investors.

How do you move forward? You need to present your technology and business model to an Angel Investor, or more likely to an Angel group. There are many of them out there. A quick gander on the ACA website shows that there are actually a few right in your city. So you email an executive summary to these groups at their general email address and hope for the best. What usually happens at this stage is that you receive some responses from the Angel groups asking you to fill out an online application. The application process is a tedious but excellent exercise, forcing you to refine your concepts into just a few sentences, and to present your financial forecasts and capital requirements. The application process isn’t fun, especially when you have to do it for 4 or 5 different groups. Then, you wait. You wait while your information is being circulated among the angels or a committee. Then, after a few weeks (yes, weeks) you get an email telling you how wonderful your idea is, how excited some investors are, and you have an invitation to present to a committee representing the Angel Group. This is very exciting! But there’s a catch… you need to pay $750 first.

Now you pause, and you think long and hard. You ask yourself why you, a bootstrapping, young, starving entrepreneur who’s living off of peanut butter and jelly sandwiches, who’s put so much on the line, should have to cough up $750 just to present your idea to a committee! Absurd right? But what choice do you have… either you pay it and maybe raise some money, learn in the process, make some connections, or you don’t and hope something better comes along.

This is not unusual. Most angel groups want you to pay something to present to them. And they have their reasons, usually good reasons. But doesn’t it seem unfair? Absolutely! Despite their reasoning, it’s just unfair!

When CitySquares was barely six months old we paid to present to an investor group. It was our first time. It was almost the same scenario as I presented above. It cost us about $750. It was a total waste of money. We had a bunch of old timers vet us through their committee, and blow smoke up our asses. So far so good, or so we thought. Two months later we finally presented our business to a room full of 50 or so Angel investors. As it turned out, 90% of the people in the room had no idea what we were talking about. Zero, zilch, nada. They were in completely irrelevant industries, and in the twenty minutes or so that we were allotted, with a ten minute Q&A, it became painfully obvious that not only was our idea way over their heads, but that we’d just wasted $750 and a whole lot of time. And to make matters worse, it was soon made clear to me that this specific angel group had made very few investments and had zero successful outcomes.

How did that leave me feeling? Angry, frustrated, mislead, and a bit more broke.

This not just my story, but the story of many many other entrepreneurs who just don’t know better, who don’t know where else to turn, who have to learn the hard way. This is so much more common then most people realize. But it’s just part of the territory. Just as with any advisors I’ve attracted to the company, the best people I’ve come to work with are those that don’t ask for anything up front. They are genuinely interested in you and your business, and they want to help.

Now let’s get something straight – Angels are investors, and they’re in business as investors for one reason – to make money. Any other reason is secondary. So then, it seems that charging entrepreneurs a fee for pitching them likely has some justifying, right? Sure! But the entrepreneur doesn’t care what about those things. The entrepreneur is in business to make money, but he/she is not rich! And there’s the discrepancy. That’s where it becomes “unfair” – that’s where it’s skewed. Some Angel groups charge a lot more than $750. And there are even some people out there, predators, who prey on entrepreneurs and charge them for introductions to Angel investors. Fred Wilson points this out on his blog as well.

Generally speaking, Angels are not bad people and they’re are not milking entrepreneurs. I think its safe to say that this statement applies to 99% of angel investors and angel groups. It’s a scary place out there for entrepreneurs, especially when you’re being taken advantage of by wolves in sheeps clothing – and there are a lot of wolves and no shortage of sheepskin. The key, as with so many other things in life, is to sift through the bullshit, the noise, and use your instincts and intuition. That’s not easy, because all the signals can be confusing. In addition to using your basic human intuition is associating with the right people, good people, people who from the start do not want to take advantage of you, and people who are genuinely interested in helping you move to the next checkpoint. CitySquares was fortunate enough, after learning some of these lessons, to meet these of people. These folks guided us in the right direction, brought us into the right meetings, made the right introductions. And they didn’t do any of this for a fee.

My advice? Do your homework. Find out if the angel groups have had success, and if there’s a genuine interest in your kind of business or industry. Find out if they’re the right profile of investor you’re looking for. If not, then move on – don’t waste your time or money. Another piece of advice is to find a back door into an Angel group. Don’t follow the same protocol as every other company. Find a way inside the angel group through a connection – perhaps one of the angels in the group is active in your industry!

I think Jason Calacanis is doing a great thing by calling some of these groups out, because some charge a very unfair amount, and some of them have developed reputations for being egregious in these regards, and for wasting entrepreneurs time and doing little to nothing for the entrepreneurial scene. And Jason has a great platform to do this. These Angels and/or Angel groups definitely have a knack for ruining it for the others, and spoiling the bunch. That’s a damn shame.

Angels are fantastic resources beyond their financial capital. They’re intellectual capital is often priceless. They contribute a lot to the economy, providing financial capital for hiring people, for creating industries, and much more. Don’t let the bad ones spoil what can and should be a wonderful entrepreneurial experience for you and for the world.

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The Founder’s Quandary

After three and a half years running CitySquares, and after an additional six years running another company prior to CitySquares, I’ve learned quite a bit about starting a business and growing it. I had a bit of an epiphany a few days – I realized that I am in a quandary, caught between a rock and hard place, as a company founder, and especially as a founder running a funded company, actively on a board of directors, and working with investors. This has resulted in a new side project, a community that I am starting, along with a few others. This community is conveniently known as The Founder’s Quandary.

I’m going to spare you the details here, and let you learn about them here…

The Founder’s Quandary – the blog
The Founder’s Quandary – the Ning community
The Founder’s Quandary – on twitter

If you are a founder, please join us.

Boston Startups Looking for Office Space

Back in May of 2007 CitySquares moved into TechSpace here in Boston’s South End. Unfortunately, TechSpace closed down their Boston location a few months ago. But we’re still here! We, and the other tenants, just have a new landlord. Some things have changed a bit but if one things for certain – the price has dropped substantially and we’re as happy as ever.

It’s quiet here though – there’s lots of empty offices and we’d love some company! There are small offices that are perfect for just one or two people, and there are larger offices that can accomodate a dozen people. There are conference rooms here that we all share, there’s even a pool table.

If you’re a Boston area business looking for a real office space with all the fixin’s of a business environment, let me know and I’ll send you over to the new landlord and make sure you get special care! I have nothing to gain here except having more neighbors!

Oh, the space is very funky too – great for Internet companies, media companies, startups, non-stuffy businesses.

Some of our awesome and friendly neighbors:

SCVNGR– SCVNGR is an interactive texting scavenger hunt that uses proprietary cellular technology to send out clues via SMS (short message service). The SCVNGR service enables the players to access several useful features such as texting SCORE to receive real-time results on how they are faring against other teams or texting HINT to SCVNGR’s short code to receive help solving a particularly tough clue.

Advantage Reprographics – Advantage Reprographics is dedicated to eliminating the cost and headache in managing document histories, printing and delivery. We focus on tailoring custom software to help streamline print output. We have State of the art printing and scanning equipment by Oce and HP, used to turn around the highest quality, right away! Give us a call and we’ll be right there to help you out.

PFL Printworks – CD & DVD duplication, Posters, Flyers, Press Kits

Exxcel Model & Talent – Exxcel Model & Talent is a full service model/talent agency representing models of all types such as female/male fashion, commercial print, child and plus size. Talent representation includes actors for film, television, commercials and theater, as well as singers and dancers.

Brand Networks – “If your Brand is ready to hit the social scene, we’d like to help. Our BrandFans methodology will ensure you network with the right people. Our BrandSolutions are social technologies that connect you with your fans. And we surround it all with BrandServices from social and creative humans just like you.”

SEEDA – The South East England Development Agency (SEEDA) is here to assist companies looking to set up and grow their UK and European operations from a base in the South East.  Our purpose is to promote the growth of the economy and creation of jobs in this dynamic region of the UK.  We provide professional, free and confidential advice and our service can save your company valuable management time and money.  SEEDA works in conjunction with UK Trade & Investment.

Jetpack – Jet Pack is a comprehensive web marketing package for small and medium sized businesses. Each account gets a dedicated internet marketing specialist to setup, manage and optimize for the best results. Our hands-on approach drives more traffic and provides higher conversion rates at an affordable level than full-time marketing agencies.

Getting it Done

This week ADP stated that 693,000 jobs had been lost in the month of December, and the U.S. Department of Labor stated this morning that unemployment has reached 7.2%, a 15-year high. Those are some gigantic numbers – terrifying actually. And the Fed says it’s only going to get worse this quarter, and potentially longer. Is it any surprise? Americans have been spending spending spending for years now, piling up debt, and living their lives on a credit score. Is it because of deregulation? Who knows. The fact of the matter now is that we’re now paying dearly for this recklessness in the form of job losses, bankruptcies, foreclosures, homelessness, and much more to come.

Everyone needs to smarten up, fast. Individuals, companies, no one is excluded fro this. If you weren’t aware of this a few months ago, in late Q3, you better damn well wake up! I was shocked the other day to learn that a friend of mine is actually quite clueless about all this. He’s a bit insulated from it where he lives and in his line of work, but no one is really insulated from this. My wife works at Harvard University, which recently saw its endowment cut substantially, losing 8% or $12B. For the first time in a long time, people are losing their jobs at Harvard, seeing their pay cut, seeing bonuses and scheduled raises off the schedule. Harvard, one of the most stable employers in Massachusetts, is having these kinds of problems. Again – no one is insulated.

This applies to startups too, of course. In fact, I’d say it hits us harder and faster than most other businesses. And that brings me to my point. CitySquares has been hit by all this. Sales are down as small businesses were reacting to the news in September and October, and as they refocused their energies and also smartened up. Sales are down, cash flow is down, some of our customers have gone under, some have been unable to pay their bills. Nevertheless, we’re seeing our way through this. We have an amazing tribe here at CitySquares – some extremely dedicated and passionate people. These qualities were demonstrated this week when I asked everyone to take a pay cut. The result? Some people took bigger pay cuts than they were asked to! And another thing – everyone stayed. Attitudes are great, everyone is as committed as ever. It’s just amazing to me.

I learned so much this week, as a CEO and as a Founder. I learned about employee psychology, I learned about my own abilities as a leader, as a CEO, as a founder. I learned even more about buy-in, about the difference between a decision and a choice.

So, CitySquares underwent pay cuts this week and I can honestly say that on this blog with pride, and with my head held high. Because I know that our team is prepared to do what it takes to weather this storm. Because they understand that paycuts for everyone means no one gets let go, everyone stays. And this tribe is aware of the same goal we’ve had for the past two years – the goal that’s now within 5-6 months from happening – the goal of cash flow positivity. The only way we can make that happen is if everybody here is on the same page, and that has not changed. Everyone here must work towards the same goal! Cash flow breakeven, in this market? In this economy? Outstanding! Show me a business that’s within 12 months of cash flow positivity, and I’ll show you a business that gets it. But show me a business that’s not making changes, not making the necessary cost reductions, not doing everything to ramp revenues and I’ll show you a business that’s in a lot of trouble.

Another thing, we wouldn’t even be here talking about this right, nor ever even arrived at this moment in time, if it weren’t for our investors, our angel investors from eCoast Angel Network and other outside investors like Jonathan Kraft, Mark Cuban, even my own father, among several others. We’re truly fortunate to have such fantastic individuals behind this company. Angel investors are special and its easy to forget how important they are to the economy, to the capital systems, and to the world of entrepreneurship. Angels make it happen.

So, there you have it folks. The truth as bare as it comes! And that’s what my blog entry from earlier this week was about – the difference between decisions and choices. Decisions I had to make, and choices that I had to give to the staff. There were difficult, very difficult, decisions that I had to make, along with our board of directors. These decisions lead to other decisions, and choices, for the tribe – and this week they all chose to help each other, to make the necessary personal investment, to protect each other.

Monday was one of the hardest days I’ve ever had at CitySquares. Today is one my proudest.