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Posts from the ‘Blogging’ Category

The Executive in Residence (EIR) Series

It’s hard to believe, but it is now exactly six months since I left my role as an Executive in Residence at Greylock Partners, and joined Weathfront as COO.

Diving into a startup is all encompassing, but over the past few months quite a few people have asked me questions about the Executive in Residence (EIR) role.  Some of these people have had offers to become EIRs, others are curious about the role and whether they should pursue it as a career option.  For most, however, it’s just genuine curiosity  the EIR role is largely a low volume, undocumented role that is very unique to the private equity & venture capital ecosystems.

One of the guide posts for this blog has been a dedicated effort to take the questions that I receive regularly, and translate them into thoughtful and useful content to be broadly shared.  So before my experiences of 2012 fade into the shrouds of history, I’ve decided to write a quick series about my experience as an EIR, and the most common questions I’ve received.

The series will cover the following questions:

  1. What is an Executive in Residence (EIR)?
  2. Should I be an Executive in Residence (EIR)?
  3. How do you get an Executive in Residence (EIR) role?
  4. Challenges of being an Executive in Residence (EIR)
  5. Did you like being an Executive in Residence (EIR)?

As always, I’m hopeful that the information will be both interesting and even useful.

First Day at Wealthfront & Disclosures

Tomorrow is my first day at Wealthfront, and I couldn’t be more excited.

WF Logo New

As many long time readers know, personal finance has always been a passion of mine.  However, now that I’m moving from this being a personal passion to a professional role, there are some important disclosures that have to be made.

First, it needs to be stated that Psychohistory is my personal blog and is not written in my capacity as COO of Wealthfront Inc.  Nothing on this blog should be construed as, nor is it intended to be, personal investment advice.  The content of this blog represents my own views and/or opinions and does not represent the views and/or opinions of Wealthfront Inc.

Second, I’ve added a Disclosure tab to this blog, to ensure that at any time, any new visitor will have quick access to this information.

Third, none of the historical content of this blog is being modified from its original.  Those articles were written for purely personal reasons, and are appropriate for the time they were published.  That being said, going forward, I’m only going to publish content related to personal finance and investing through the official Wealthfront blog.  Wealthfront has published a fantastic series of articles on a wide range of topics, and I feel privileged to be added as one of the contributing authors there.

I will continue to blog here about personal topics of interest, including product management, design, software development, Silicon Valley, startups, tech tips, science, and of course coins.

Can’t wait to get started tomorrow.

2012 in Review

The WordPress.com stats helper monkeys prepared a 2012 annual report for this blog.

Here’s an excerpt:

About 55,000 tourists visit Liechtenstein every year. This blog was viewed about 310,000 times in 2012. If it were Liechtenstein, it would take about 6 years for that many people to see it. Your blog had more visits than a small country in Europe!

Click here to see the complete report.

Apple & Dow 15000: Update

In February 2012, I wrote a blog post that indicted the Dow Jones Industrial Average for including Cisco in 2009 instead of Apple.  At the time, Apple had just crossed $500 per share, and that simple decision had cost the US the psychology of an index hitting new highs.

I was driving home on Sunday, listening to the radio, and it occurred to me how different the financial news would be if Apple ($AAPL) was in the Dow Jones Industrial Average (^DJI).

Of course, being who I am, I went home and built a spreadsheet to recalculate what would have happened if Dow Jones had decided to add Apple to the index instead of Cisco back in 2009.  Imagine my surprise to see that the Dow be over 2000 points higher.

Update: AAPL at $700

With the launch of the iPhone 5, we find ourselves roughly 7 months later.  For fun, I re-ran the spreadsheet that calculated what the DJIA would be at if they had added AAPL to the index in 2009 instead of CSCO. (To date, I’ve never seen an explanation on why Cisco was selected to represent computer hardware instead of Apple.)

Result: Dow 16,600

As of September 17, 2012, AAPL closed at 699.781/share.  As it turns out, if Dow Jones had added Apple instead of Cisco in 2009, the index would now be at 16,617.82.  Hard to think that hitting all new highs wouldn’t be material for market psychology and the election.

Anyone up for Dow 20,000?

The Combinatorics of Family Chaos

For those of you who read this blog regularly, you’ve likely noticed a lull in my posting.  That’s because, about two weeks ago, my wife & I welcomed a new addition to the family.  Given that the most common response to our decision to add a fourth child to the family has largely been “borderline insanity”, I felt it was appropriate to share some of my thinking on the complexity that comes with every new addition.

The Wrong Model: Linear

When a couple decides to have a second child, you are quickly inundated with advice on how to manage the complexity.  The most common refrain you hear is: “Don’t worry, you can still field man-on-man coverage.”  Another popular version of this advice is: “At least you’re not outnumbered.”

The implication here is that managing the family is fundamentally a relationship between parents & kids, like this:

Parental Ratio = # of Parents / # of Kids

With the implication that somehow, as long as the parental ratio is greater than or equal to one, you’ll be able to manage.

Unfortunately, I’ve found that this description of complexity dramatically understates the drama of real family life.

The Right Model: Combinatorics

Instead 0f focusing specifically on the number and types of nodes in the family graph, I think it’s more useful to think about the nature of emotional entanglements (aka “drama”) and understand that they tend to require at least two people, but can easily involve more.  As a result, the complexity of family life can be more accurately modeled as the number of two-party relationships in a family that can engage in drama.

Initially, a couple has exactly one potential pair:

  • Adult 1 <-> Adult 2

However, once you add a single child to the mix, you immediately add two more vectors of potential drama:

  • Adult 1 <-> Child 1
  • Adult 2 <-> Child 1

It’s worth noting that it’s sometimes unclear whether a three-party argument is truly a single argument or actually a combination of two or three two-party arguments, but let’s just roll with the simplified assumption for now that all drama can be decomposed to pair-based drama.

Pascal’s Triangle actually makes calculating this number for any size family trivial.  This means that:

  • Two family members (0 kids): 1 drama pair
  • Three family members (1 kids): 3 drama pairs
  • Four family members (2 kids): 6 drama pairs
  • Five family members (3 kids): 10 drama pairs
  • Six family members (4 kids): 15 drama pairs

It’s combinatoric, specifically in the form of:

family complexity  = # of family members  choose 2

Which is a fancy way of saying each new child adds a new relationship to the mix for every existing family member.  This sequence is also known as the triangular numbers.

For those of you who have or come from large families, let me know if this lightweight graph theory matches your experience.

Julia Elizabeth Nash

Julia Elizabeth Nash
Born 10.0 lbs, 21 inches
Single handedly increased Nash family complexity by 50%

Psychohistory: 2011 in Review

The WordPress.com stats helper monkeys prepared a 2011 annual report for this blog.

Here’s an excerpt:

London Olympic Stadium holds 80,000 people. This blog was viewed about 460,000 times in 2011. If it were competing at London Olympic Stadium, it would take about 6 sold-out events for that many people to see it.

Click here to see the complete report.

Joining Greylock

Today, John Lilly put up a really nice note on the Greylock Partners blog officially welcoming me to the firm.  Needless to say, I’m both honored and excited to be joining such a great team.

We’re fortunate to be witnessing the explosive growth of not one but two incredible new platforms for consumer products and services: social and mobile.  Both are literally changing the fundamental ways that consumers interact with devices, and are rapidly changing the dynamics for building successful new products and services.  After spending the past four years helping to build out social and mobile platforms, I can’t wait to partner with entrepreneurs to help them build out the next generation of products and companies over them.

Over the past few years, I’ve shared a number of insights here on this blog about building great products and companies.  Here are a few that are worth reading if you are curious about how I think:

And of course, the most appropriate for this announcement:

For now, I just want to say thank you to Reid, David, John and the entire Greylock team.  I can’t wait to get started.

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