The Exchanges

Q do want to start today because you have, I think, the best story I've ever come into in VC ever. Uh, so talk to me about how you arrived in Silicon Valley with, with 700 dollars and a few words of English, and now you're, you're one of the ultimate power brokers and connectors of the Valley, and now a leading investor. So how did that come about for you?

A You know, maybe I should give a little background that, you know, I grew up in Iran, and, you know, I was a big soccer fan. I played professional soccer in Iran, and, you know, my teenagers went through a really difficult time of revolution and war, so I think when I look back to those days, it just made me who I am today. When you, when you face so much challenges over there, then when you immigrate to a country like America, you really realize the opportunities you have. You know, fast forward, I went to Germany. My parents lived in Germany, and continued my education, and played professional soccer. Actually, Waldhof Mannheim, which was in Bundesliga at that time, offered me to play. But my brother, who left Iran before me, and he had this American dream, and was denied visa every month, just pushed me to go to U.S. Embassy. I didn't speak the language, but somehow, the counselor said, and I exactly remember, the woman said, I don't know why, but I want you to see my country. So I got a visa when I was 22 years old and took a chance to came here to, to come to the United States. Didn't know what to do. As you mentioned, I didn't have money much, and I didn't speak language, and actually the 700 dollars was just gone the first few weeks because I was in love with the girl in Iran, and I thought I'm gonna lose her. So I started to, to call her every day from payphone, and, and…

AI assessment note: “So I got a visa when I was 22 years old and took a chance”

Q with regards to this characteristic, uh, and he was obviously the founder that you backed with Danger, and you invested 400 K of dollars of Amidzad money into Danger, and eight years later, you received a two extra ton, despite the sale for five hundred million to Microsoft. Was that a big learning curve for you, and how did it alter your approach after this, when you saw this happen?

A That's actually a really good question. I think Danger was really, was ahead of its time. I think it was the first smartphone came in, but the broadband was really not there. The penetration of mobile phone was not there, and as a hardware software Software company, they had to raise a huge amount of money, and that's where we got diluted. And this is the problem you have as an angel investor, because you don't have infinite money to invest and keep your parada. So, so basically, we got diluted after eight years. Had we participated and kept our ownership after the initial investment, we would have made a lot of money through a half a billion dollar acquisition of Danger by Microsoft. But I think, What is important today, as I manage two funds with my partner, Mark Hershenson, you know, keeping these provata rights and making sure that we have the ability to maintain our ownership in the companies are growing is really, really important.

AI assessment note: “What is important today... keeping these provata rights and making sure that we have”

Q do want to start today because you have, I think, the best story I've ever come into in VC ever. Uh, so talk to me about how you arrived in Silicon Valley with, with 700 dollars and a few words of English, and now you're, you're one of the ultimate power brokers and connectors of the Valley, and now a leading investor. So how did that come about for you?

A You know, maybe I should give a little background that, you know, I grew up in Iran, and, you know, I was a big soccer fan. I played professional soccer in Iran, and, you know, my teenagers went through a really difficult time of revolution and war, so I think when I look back to those days, it just made me who I am today. When you, when you face so much challenges over there, then when you immigrate to a country like America, you really realize the opportunities you have. You know, fast forward, I went to Germany. My parents lived in Germany, and continued my education, and played professional soccer. Actually, Waldhof Mannheim, which was in Bundesliga at that time, offered me to play. But my brother, who left Iran before me, and he had this American dream, and was denied visa every month, just pushed me to go to U.S. Embassy. I didn't speak the language, but somehow, the counselor said, and I exactly remember, the woman said, I don't know why, but I want you to see my country. So I got a visa when I was 22 years old and took a chance to came here to, to come to the United States. Didn't know what to do. As you mentioned, I didn't have money much, and I didn't speak language, and actually the 700 dollars was just gone the first few weeks because I was in love with the girl in Iran, and I thought I'm gonna lose her. So I started to, to call her every day from payphone, and, and…

AI assessment note: “As you mentioned, I didn't have money much, and I didn't speak language”

Q with regards to this characteristic, uh, and he was obviously the founder that you backed with Danger, and you invested 400 K of dollars of Amidzad money into Danger, and eight years later, you received a two extra ton, despite the sale for five hundred million to Microsoft. Was that a big learning curve for you, and how did it alter your approach after this, when you saw this happen?

A That's actually a really good question. I think Danger was really, was ahead of its time. I think it was the first smartphone came in, but the broadband was really not there. The penetration of mobile phone was not there, and as a hardware software Software company, they had to raise a huge amount of money, and that's where we got diluted. And this is the problem you have as an angel investor, because you don't have infinite money to invest and keep your parada. So, so basically, we got diluted after eight years. Had we participated and kept our ownership after the initial investment, we would have made a lot of money through a half a billion dollar acquisition of Danger by Microsoft. But I think, What is important today, as I manage two funds with my partner, Mark Hershenson, you know, keeping these provata rights and making sure that we have the ability to maintain our ownership in the companies are growing is really, really important.

AI assessment note: “keeping these provata rights and making sure that we have the ability to maintain our ownership”

Q And you said about the pattern recognition there with regards to the founders that you built up over time. Uh, you've said before that you never invest without meeting the co-founder. How do you assess then the kind of early stage founding relationships of the incredible founders that you've backed in the likes of the Dropbox and the Danger team? And how do you kind of strength test these relationships?

A You know, there are a few things as important for me and for us today as a firm. So we look at founders who have history together. So basically people who went to college together, who played basketball in high school together, the rock climb, rock climb every weekend, things that they have in common. So really good relationship there. It's very important for us. We like the teams who are very close to the problem they're solving. You know, often people who are passionate about solving a problem and they're really close to it, they have history with that problem, end up building product that people love. I think we are the teams that, founding teams, that they believe company is above them. So I think humbleness for us is really important. We love the team who can attract talent. We love founders who are captain of their ships. They, they leave the ship at last. I think we like founders who are paranoid in a healthy way. I mean, those people who have a vision, they know exactly where they're going, but the questions themselves and the team and these decisions every day, getting to know the founders is just very important. I don't think in half an hour or an hour meeting with a deck or presentation, you can really, I mean, you get a lot from the founders. I don't get me wrong. I think most of the companies we pass, we get to know the founders, how they think, Their relationship …

AI assessment note: “So we look at founders who have history together. So basically people who went to college together”

Q called today. Uh, and Mike Moritz has said before that your calls are cool. He will always take. I have to ask them, what do you think made you so, and I'm going to make you blush here, made you so brilliant at networking with those elite of tech society? Was it The fact that meetups were rarer. What was it about you that, that made the ecosystem come together?

A First of all, thanks, thanks Mike Morris. I have so much respect. I learned so much throughout the years interacting with him and, and reading his, his writings. And these days reading the book he, he wrote with Sir Alex Ferguson leading, which I think is just phenomenal book. And I recommend everyone managing people to read it. You know, I think, um, you know, I developed, um, Um, a kind of a pattern recognition to spot entrepreneurs early on, and this is by just meeting a lot of people. I think many venture capitalists recognize that. I think I reach out to them at the right time, with the right context. I just making sure to respect their time, and I think I'm, I'm showing that in action. But you have to, you have to realize one thing. University Avenue, where the Medallion World Gallery was, was, and perhaps is, the most important street in the tech world. So just, you know, Medan Regular is like, three 20 university avenue. One 65 university is where Google, PayPal started. On adjacent street, Yahoo started. If you walk three miles to Stanford is where Sun Microsystem, Cisco, and most recently Instagram and Snapchat started. So I had two choices. Just witness what's going on around me and pass by and be the rug salesperson or really capture the opportunity I had. And become one of the players. Just participate in this community. Create a network. Helping people. Be kind to…

AI assessment note: “I developed, um, Um, a kind of a pattern recognition to spot entrepreneurs early on”

Q And you said about the pattern recognition there with regards to the founders that you built up over time. Uh, you've said before that you never invest without meeting the co-founder. How do you assess then the kind of early stage founding relationships of the incredible founders that you've backed in the likes of the Dropbox and the Danger team? And how do you kind of strength test these relationships?

A You know, there are a few things as important for me and for us today as a firm. So we look at founders who have history together. So basically people who went to college together, who played basketball in high school together, the rock climb, rock climb every weekend, things that they have in common. So really good relationship there. It's very important for us. We like the teams who are very close to the problem they're solving. You know, often people who are passionate about solving a problem and they're really close to it, they have history with that problem, end up building product that people love. I think we are the teams that, founding teams, that they believe company is above them. So I think humbleness for us is really important. We love the team who can attract talent. We love founders who are captain of their ships. They, they leave the ship at last. I think we like founders who are paranoid in a healthy way. I mean, those people who have a vision, they know exactly where they're going, but the questions themselves and the team and these decisions every day, getting to know the founders is just very important. I don't think in half an hour or an hour meeting with a deck or presentation, you can really, I mean, you get a lot from the founders. I don't get me wrong. I think most of the companies we pass, we get to know the founders, how they think, Their relationship …

AI assessment note: “I typically spend time outside the office. The ones we are really excited”

Q called today. Uh, and Mike Moritz has said before that your calls are cool. He will always take. I have to ask them, what do you think made you so, and I'm going to make you blush here, made you so brilliant at networking with those elite of tech society? Was it The fact that meetups were rarer. What was it about you that, that made the ecosystem come together?

A First of all, thanks, thanks Mike Morris. I have so much respect. I learned so much throughout the years interacting with him and, and reading his, his writings. And these days reading the book he, he wrote with Sir Alex Ferguson leading, which I think is just phenomenal book. And I recommend everyone managing people to read it. You know, I think, um, you know, I developed, um, Um, a kind of a pattern recognition to spot entrepreneurs early on, and this is by just meeting a lot of people. I think many venture capitalists recognize that. I think I reach out to them at the right time, with the right context. I just making sure to respect their time, and I think I'm, I'm showing that in action. But you have to, you have to realize one thing. University Avenue, where the Medallion World Gallery was, was, and perhaps is, the most important street in the tech world. So just, you know, Medan Regular is like, three 20 university avenue. One 65 university is where Google, PayPal started. On adjacent street, Yahoo started. If you walk three miles to Stanford is where Sun Microsystem, Cisco, and most recently Instagram and Snapchat started. So I had two choices. Just witness what's going on around me and pass by and be the rug salesperson or really capture the opportunity I had. And become one of the players. Just participate in this community. Create a network. Helping people. Be kind to…

AI assessment note: “I reach out to them at the right time, with the right context.”

Q And then when you were establishing yourself in the ecosystem, when you were in it, when you were investing the initial two million dollars and, and in your kind of formative years investing, were there any other real shocks to the system that changed the way you viewed startups and then the way you invest personally?

A You know, I think the first thing, um, the arrival of, of blogs and, and getting more information was just really phenomenal for me as an engine investor. I think then, you know, Y Combinator started to do an amazing job to, to change ecosystem on the ground zero, and, you know, Paul Graham in particular, and Jessica Livingston built an amazing practice to get really talented people, and that, that was pretty amazing. I had always been fan of, Meeting people face to face and get to know them, and that's the essence of fun today. If you look at our, what we do at Pear, our venture capital firm today, we do a lot of social events, we do a lot of gathering with our founders, so I continue to believe that's where you can meet people, and you know, sometimes the whole ecosystem forgets that all of us are human beings, we need to get to know each other, and that's really, really important. You know, I remember when I started, actually this is a good story to share, when I started to do an angel investing, so I said, I We need to start to have deal flow, and one of the areas that I thought I'm really strong in being Iranian-American, you know, I knew a lot of Iranians, and I said that maybe I should expand that, that network, so I was going through the list of PhD students in Stanford Computer Science Department, and every other engineering school at Stanford, and seeing any Persian n…

AI assessment note: “actually this is a good story to share, when I started to do an angel investing”

Q And then the biggest mentor to you and how it came about?

A You know, I think in the tech business, Bobby has, Donnie has been an amazing friend and mentor to me. He took Saba from his garage public, and then he was a seed investor in Google, Dropbox, Uber, and many others. So I think, as I mentioned, I think he, he mentored me, I think, but he took really personal interest to me in making sure that I grow as a person. But I, I tell you, I mean, some people, um, I was asked, who, who, who is the inspiration? To me, just normal people out there. You know, there's a coffee shop. I get my coffee sometimes when I don't have Persian tea, and the barista, it's a, it's a source of inspiration for me. The way he puts so much love and effort to make the best coffee possible is just so inspiring to me, and I wish I could do in my work the way he makes coffee. Um, sometimes it, my kid's Teacher, when I hear a story about them, it's just so inspiring.

AI assessment note: “Donnie has been an amazing friend and mentor to me.”

Q And then when you were establishing yourself in the ecosystem, when you were in it, when you were investing the initial two million dollars and, and in your kind of formative years investing, were there any other real shocks to the system that changed the way you viewed startups and then the way you invest personally?

A You know, I think the first thing, um, the arrival of, of blogs and, and getting more information was just really phenomenal for me as an engine investor. I think then, you know, Y Combinator started to do an amazing job to, to change ecosystem on the ground zero, and, you know, Paul Graham in particular, and Jessica Livingston built an amazing practice to get really talented people, and that, that was pretty amazing. I had always been fan of, Meeting people face to face and get to know them, and that's the essence of fun today. If you look at our, what we do at Pear, our venture capital firm today, we do a lot of social events, we do a lot of gathering with our founders, so I continue to believe that's where you can meet people, and you know, sometimes the whole ecosystem forgets that all of us are human beings, we need to get to know each other, and that's really, really important. You know, I remember when I started, actually this is a good story to share, when I started to do an angel investing, so I said, I We need to start to have deal flow, and one of the areas that I thought I'm really strong in being Iranian-American, you know, I knew a lot of Iranians, and I said that maybe I should expand that, that network, so I was going through the list of PhD students in Stanford Computer Science Department, and every other engineering school at Stanford, and seeing any Persian n…

AI assessment note: “the arrival of, of blogs and, and getting more information was just really phenomenal”

Q And then the biggest mentor to you and how it came about?

A You know, I think in the tech business, Bobby has, Donnie has been an amazing friend and mentor to me. He took Saba from his garage public, and then he was a seed investor in Google, Dropbox, Uber, and many others. So I think, as I mentioned, I think he, he mentored me, I think, but he took really personal interest to me in making sure that I grow as a person. But I, I tell you, I mean, some people, um, I was asked, who, who, who is the inspiration? To me, just normal people out there. You know, there's a coffee shop. I get my coffee sometimes when I don't have Persian tea, and the barista, it's a, it's a source of inspiration for me. The way he puts so much love and effort to make the best coffee possible is just so inspiring to me, and I wish I could do in my work the way he makes coffee. Um, sometimes it, my kid's Teacher, when I hear a story about them, it's just so inspiring.

AI assessment note: “Bobby has, Donnie has been an amazing friend and mentor to me.”

Q What perspective did he give you when you saw him?

A Hino was, was few things. I think was the way he was seeing the future, the way he was interacting with his team. I was at his office a few times. His confidence, he was basically captain of the ship, and the way he was just solving the problem, I think was, I've never seen it before, and I still is. I think Andy Rubin sees future before most of us. And that's why he created Android and now he's the playground and the other things. So it was kind of a turning point for me, but very early on in my career, I started to build that really close relation with venture capitalists. I remember at night, sometimes I was inviting a hundred, a 150 entrepreneurs to the rug gallery. I was wanting the entire, I was inviting the entire, uh, senior parties of Sequoia capital. And this never happened at that time. It wasn't like today. And today, every night there is something happens. Around the world, especially in Bay Area and Silicon Valley. But at that time, it was really rare. So Silicon Valley and venture capitalists got to notice I have a very strong deal flow. I started to help entrepreneurs. They noticed I'm for real. I'm there to help them, and I matched them with the right people and really helping, you know, sharing a lot of experiences. So fast forward, I was very lucky to me that, you know, through NRA, I actually became one of the first investors in In Dropbox and fast forward t…

AI assessment note: “the way he was seeing the future, the way he was interacting with his team”

Q What perspective did he give you when you saw him?

A Hino was, was few things. I think was the way he was seeing the future, the way he was interacting with his team. I was at his office a few times. His confidence, he was basically captain of the ship, and the way he was just solving the problem, I think was, I've never seen it before, and I still is. I think Andy Rubin sees future before most of us. And that's why he created Android and now he's the playground and the other things. So it was kind of a turning point for me, but very early on in my career, I started to build that really close relation with venture capitalists. I remember at night, sometimes I was inviting a hundred, a 150 entrepreneurs to the rug gallery. I was wanting the entire, I was inviting the entire, uh, senior parties of Sequoia capital. And this never happened at that time. It wasn't like today. And today, every night there is something happens. Around the world, especially in Bay Area and Silicon Valley. But at that time, it was really rare. So Silicon Valley and venture capitalists got to notice I have a very strong deal flow. I started to help entrepreneurs. They noticed I'm for real. I'm there to help them, and I matched them with the right people and really helping, you know, sharing a lot of experiences. So fast forward, I was very lucky to me that, you know, through NRA, I actually became one of the first investors in In Dropbox and fast forward t…

AI assessment note: “it was kind of a turning point for me, but very early on in my career”