Josh Kopelman

The founding of the UT Discovery Fund

The founding of the UT Discovery Fund

When I was an undergrad student at the University of Texas at Austin I very much wanted to become an entrepreneur. During those years (1990-1994), however, there was almost no support for entrepreneurship at the University. I didn't feel "developed" enough to pursue my dream, so I decided to go into consulting instead and became an entrepreneur a few years later, while I was earning my MBA.

In September 2013, I began my tenure as Entrepreneur-in-Residence at the University of Texas at Austin. I was proud to follow in the footsteps of my grandfather, who taught at UT Austin his entire career. Instead of imposing what I thought the community would be need during my time as EIR, I took a lesson from building Bazaarvoice and Coremetrics. I created a team of four very influential and entrepreneurial student leaders and asked, “What does the student entrepreneur community need?”. The four were Taylor Barnett, Verick Cornett, Dan Driscoll, and Jonathan Van. We became the “Office of the EIR”. Nick Spiller joined our team later and right after graduation he joined UT to continue the charge as an entrepreneurial catalyst across the school.

How to leverage advisors and investors as your extended team

As an entrepreneur, I fostered an unusual communication practice with our investors and advisors. I treated them as I would have wanted to be treated if I were in their shoes. This is the Golden Rule in action.

You need to have empathy for those that you raise money from. They aren't the "man in the arena" (one of my favorite quotes from Theodore Roosevelt), but they can be very supportive - should you choose to treat them as part of your extended team. They are putting their money (if they are angel investors) - or their investors' money (as is the case for venture capitalists) - into your venture and you should treat that capital as if it were your own. And if it were your own capital ask yourself, "What kind of updates would I want?" My guess is you would want to always know how the business is doing and how you could help the business - and therefore help your investment. Part of the thrill of investing is to see the entrepreneur succeed - both changing their life and many other people's lives in the process. Investors enjoy telling their friends - other investors and family - about the success of your business. The journey is more important than any return they get (although to be clear they don't want to lose either their money or their investors' money). The more they help you, the more they live vicariously through you - and their fingerprints are all over your business. This is called a "helper's high" by my good friend and CEO coach, Kirk Dando (you can read more about Kirk and the value of CEO coaches in my Lucky7 post about the 7 lessons learned on the journey from founder to CEO).

7 lessons learned on the journey from founder to CEO

Two days ago I had the honor of keynoting at the First Round Capital CEO Summit in San Francisco. The event was held at the Jewish Contemporary Museum. During my speech, I promised to put my notes up on my blog and so here they are.

My talk was about the 7 lessons I've learned on the journey from founder to CEO. First Round Capital invested in us when Bazaarvoice was under 10 people; they came in alongside Austin Ventures - where I am now a Venture Partner - in our Series A. First Round has been an incredible partner in our journey from startup to public company. Personally, I think they are the best first round investor in the U.S. with the portfolio to show for it. Josh Kopelman, a fellow Wharton grad, is especially strong and he has helped me many times along the way.

I started off my talk emphasizing that the journey matters most in your transformation from founder to CEO. It is both a beautiful journey and also at times a gut-wrenching one. As Kirk Dando, my CEO coach of four years, says, "the path to heaven goes through the road to hell". This couldn't be more true. You aren't born knowing how to either found a company or be a CEO. You aren't born knowing how emotional this journey can be. But it is a journey that I've cherished and, in my opinion, the most profound journey that one can take in a career. It is a journey that led to me being recognized as Austin's best CEO for the large company category last year. This doesn't mean I have done everything right or that I don't make mistakes (hopefully less of them are repeat mistakes).