• Leaning Tower of PisaLeaning Tower of Pisa (Photo credit: Wikipedia)

    According to Art Markman, A-Hah moments are a myth.  But it is common to tell stories of great discoveries and link them back to a specific event in the inventor's life. 
    "Hundreds of years later, we still talk about Galileo dropping balls of different weights off the Leaning Tower of Pisa to shatter existing beliefs about the way objects fall. Textbooks tell the story of Sir Issac Newton being struck by an apple and having a sudden insight about gravity. We learn about an inspired Charles Darwin developing a new theory evolution while watching finches on the Galapagos Islands."

    The problem with these stories glorifying eureka moments is that some historians believe that they are not true.

    In the book Science Secrets, Alberto Martinez, University of Texas science historian, roots through primary source documents to tease apart fact and fiction in these myths. For example, Martinez points out that 16th-century Italian historian Benedetto Varchi mentions tests of the idea that heavier objects do not fall proportionally faster than light objects in 1544 — twenty years before Galileo was born. Moreover, contrary to usual claims, Galileo later reported that objects of different weights fall at different speeds!

    Corporate cultures also tend to create stories about important events in the life of a company. Individuals within a company are held up as heroes who championed key ideas, fought bureaucracies, and instituted significant changes. Similarly, other people and projects are put forward as examples of key failures.

     In a recent New Yorker article, Malcolm Gladwell describes the development of the desktop operating system that is now so familiar in Apple and Windows computers. He analyzes myths related to the idea that Xerox PARC (which initially developed a version of that operating system) had all of the ideas that were ultimately incorporated in the highly successful Macintosh computer, but failed to capitalize on them. Steve Jobs had to add quite a bit of insight about users when adapting the desktop operating system for a mass audience.

    We often try to learn from these stories of success and failure. We seek the business equivalents of Galileo, Newton, and Darwin — legendary figures who will discover innovative ideas that will revolutionize an industry. It has become trite to repeat George Santayana's quote that those people who do not learn history are doomed to live it again. However, by learning from myths rather than history, we may be doomed to fail by repeating a history that never was.

    The key lesson here is that discovery myths are slanted to focus on great people and decisive events, so people can better relate to them. But by focusing on the individuals, we ignore both the contribution of others who played a role in a new idea, as well as contemporary culture at the time of the innovation. Often, there are many people toying with similar ideas, and it is the collective work of a community that gives rise to real innovation.

    As Isaac Newton himself once said, "If I have seen further, it is by standing on the shoulders of giants" (a statement that wasn't even his!).

    In addition, important ideas develop over time. It is rare that there is a decisive event that triggers significant change. Instead, new ideas typically emerge through discussion, argument, and rigorous testing. The physicist J.J. Thomsen is often credited with discovering the electron in 1897.  As Martinez points out, though, the actual development of the idea of the electron emerged through the collective efforts of a scientific community over a period of more than 20 years.

    The article is interesting but overly general in its assertions, in my view.  I have personally seen or read about too many A-Hah moments in start ups to let them pass unnoticed. Sure, it may take years to have the A-Hah moment come to reality, but often it is these moments that make the difference between success and failure in a start up.

    So I am going to celebrate A-Hah moments in upcoming posts, and  sharing a few fascinating ones from history and some from my current portfolio companies. 

     

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  • A logistics provider's warehouse of goods bein...A logistics provider's warehouse of goods being stacked on pallets with a forklift. (Photo credit: Wikipedia)

    Nomadron is an innovative ground logistics company applying a NOMADIC approach to the B2B logistics industry, making most all components mobile including the pick-up and delivery hubs.  The innovative model has the potential to have a major impact on the LTL industry and transform current logistics delivery models. Founded by a group of MIT logistics graduates, Nomadron would eliminate the need for fixed-location Less-Than-Truckload (LTL) hubs by having specially designed over-the-road trailers come together and form a "virtual" LTL sorting hub in a vacant parking lot, rejigger LTL loads among the trucks and then have the trucks proceed with customer delivery.

    Sound like something out of Star Wars? A bit, for sure. But using advanced optimization technologies to better route LTL freight is certainly feasible. And replacing current fixed location hubs with virtual ones could result in significant reductions in capital and operating expenses for the industry.

    We have a long way to go on this idea. It would required an innovative LTL trucking company or a disruptive investor in logistics businesses to pull together the capital needed for such a bold adventure. but who knows? Look at the ocean container business, which did not exist 50 years ago. It takes industry insiders, revolutionaries for sure, to make ideas like this happen and succeed. Lets see if someone steps up and makes Nomadron happen.

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  • Recently the SEC
    published proposed Rule 506(c), which for the first time will allow companies
    to advertise offerings of securities without filing a registration statement.
    The key limiting factor is that sales under the amended Rule may be made only
    to institutions and individuals who meet the accredited investor definition.

    For many years the
    “accredited-only” offering under Rule 506 has been a useful pathway for raising
    capital, but advertising and general solicitation were strictly prohibited. An
    amendment permitting advance publicity for these transactions is a very
    significant development.

    The proposed Rule is
    in the “comment” stage until October 5. A final Rule along these lines could be
    in effect soon thereafter.

    Verril Dana has written a useful article
    discussing some interesting implications of Rule 506(c). Check it out and see if you want to comment on the upcoming changes.

  • English: YouTube business model canvas sketch ...English: YouTube business model canvas sketch by Alexander Osterwalder (Photo credit: Wikipedia)

    I see a lot of smart young entrepreneurs who have spent many hours fine tuning  their brilliant and disruptive ideas on how they are going to change the world. The reality is that they should spend as much time thinking about their business model and the resources required to make success happen.

    Here are a few thoughts on what that entails:

    1. Get others to share your vision–a "single shigle" entrepreneur, one who has no compatriots that share his or her vision, is immediately suspect. Be sure you have assembled a team of people with the right skills to commercialize your vision before you approach the venture guys.
    2. Try cheap first and again if that fails–too often, I see superexpensive funding requests that build technology before ensuring that the customers will actuall buy it. Find a way to prototype the idea with a few clients, get the right types of feedback and then develop the market rollout plan.
    3. Be realistic— if I see one more billion dollar marketplace slide in an investor presentation, I am going to <fill in the blank, but think stomach upset>. No one believes it and it hurts your credibility. It is better to parse the market and estimate how much revenue  each channel will generate, rather than just one large number.
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  • Conflict minerals will cause major supply chain headaches–and penalties–if not mediated….. http://blogs.wsj.com/corruption-currents/2012/09/14/conflict-minerals-rules-could-reverberate-through-supply-chain/

  • According to Xconomy, several of this year’s YC
    companies are trying to solve problems involving the manufacturing or movement
    of actual stuff, rather than just bits. For instance, more than half of all
    delivery attempts by companies like FedEx and UPS fail because no one is home,
    so BufferBox
    is building a network of lockers at retail stores and other locations where
    shippers can leave packages; recipients can retrieve them using a code received
    by e-mail. Keychain Logistics is working to cut out the
    middleman in the shipping brokerage market by building an online service to
    connect shippers directly with truckers. HD Trade Services is building software to make
    inventory tracking more efficient in warehouses.

    Viacycle, meanwhile, hopes to disrupt
    companies like Bixi and Alta Bicycle Share by building tracking devices that
    make it cheaper to operate fleets of shared bicycles. And in the
    manufacturing realm, Dreamforge is creating software that average
    consumers can use to design their own objects for 3D printing.

    We'll keep an eye on them and feature the most interesting ones in the future.

  • Vegetables in a grocery store, Paris, France.Vegetables in a grocery store, Paris, France. (Photo credit: Wikipedia)

    According to their press release, Door to Door Organics, one of the nation’s leading e-grocers, is receiving a $2 million Series A round investment from Greenmont Capital, an investment fund based in Boulder, Colo., that is focused on growth stage investment opportunities in the $500 billion “Lifestyles of Health and Sustainability” (“LOHAS”) market.

    Now in its seventh year, Door to Door Organics offers one of the largest grocery delivery networks of any e-grocer in the U.S., with operations based in Colorado, Illinois, Missouri, Michigan, and Pennsylvania. The company started out sourcing and delivering the freshest high quality produce, and has added products such as sustainably raised meat, artisan bread, local dairy, and other items to round out the shopping basket for a complete grocery experience.

    “We built this business by delivering fresh, high-quality food that has a positive impact on people’s health, the environment, and our communities,” said Chad Arnold, the President and CEO of Door to Door Organics. “Now we’re focused on integrating the best e-grocery experience for our customers, so people can build a lifestyle around better food choices. With planning, shopping, and cooking tools, like our Shop by Recipe™ platform for e-grocery, we’re bringing together inspiration, simplicity, and personalization for a great shopping experience.”

    We hope they decide to come to Maine someday….

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  • Got a sweet #brovalentines present from @maxst...Got a sweet #brovalentines present from @maxstoller. Thanks @postmates! (Photo credit: talsafran)

    About eight months ago, I wrote about how Postmates was seeking to make rapid delivery in cities less of a hassle for cosnumers. Postmates taps into an existing big network of couriers that, before it came out, just used Craigslist and makes it way more efficient.

    Now Postmates has a new app called "Get It Now," which ensures that you'll get your delivery within an hour. A lot of companies are talking about jumping into same-day delivery, but Postmates is one of the few that is, well, delivering

     

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  • Trimble Navigation has acquired transportation and logistics software maker TMW Systems from Pamlico Capital for $335 million, the companies announced today.
    Beachwood, Ohio-based TMW Systems develops enterprise-level transportation management software that lets businesses manage operations from a central hub, analyze data, and automated important business processes. TMW’s enterprise software already integrates with Trimble’s software — when you combine the two, they serve more than 3,000 fleets worldwide.
    “Trimble’s global presence will provide a strong channel for extending TMW’s reach and scope, beyond its leading position in North America,” TMW CEO David Wangler said in a canned statement. “Together, our complementary technologies can deliver exceptional return on information that improves our customers’ operational efficiencies and allows them to deliver superior customer service.”
    The $335 million deal was an all-cash purchase and it will be financed through Trimble’s existing credit facility. TMW’s trailing 12-month revenue is about $96 million.