DeepSummary
The episode features an interview with Ilya Strebulaev, a professor at Stanford Graduate School of Business, who discusses the concept of the 'venture mindset' - a decision-making approach inspired by how successful venture capitalists operate. Strebulaev explains that this mindset involves looking for reasons not to proceed with opportunities, embracing failures as learning experiences, and thinking long-term.
Strebulaev shares insights from his research on venture capitalists, such as their ability to 'swing for the fences' and take calculated risks, as well as their willingness to let teams pivot after initial failures. He highlights principles like asking 'why we should not proceed' rather than 'why we should invest', and seeking diverse perspectives through networking.
The conversation also covers Strebulaev's experiences teaching a popular venture capital class at Stanford, where he aims to impart lessons on thinking differently and building diverse networks. He emphasizes the importance of listening and shares his passion for descriptive communication around topics like wine tasting.
Key Episodes Takeaways
- Adopt a 'venture mindset' by looking for reasons not to proceed with opportunities instead of reasons to pursue them.
- Embrace failures as learning experiences and opportunities for growth, like successful venture capitalists do.
- Think long-term when making career and life decisions, rather than getting caught up in short-term pressures.
- Seek out diverse perspectives and build a diverse professional network outside your typical circles.
- Strive to think differently and approach problems from new angles, getting out of your 'four walls'.
- Listen actively as a key ingredient for successful communication and understanding different viewpoints.
- Use descriptive, thoughtful language to engage others when discussing your passions or areas of expertise.
- Continually assess and apply principles that can help you make smarter, quicker decisions, especially in uncertain situations.
Top Episodes Quotes
- “Venture mindset, simply put, is just a new way of thinking, a new mental model, how every leader can and in many situations should approach decision making to make smarter, quicker decisions, to make decisions in unusual situations, when especially the world is uncertain, when there are a lot of unknown unknowns, when there is disruption.“ by Ilya Strebelev
- “Let me start with a story about twelve years ago, gaming was a very hot topic. In fact, it is a very hot topic today. And at the time, two young entrepreneurs, their names were Stuart Butterfield and Cal Henderson, started a company, and they raised money from a famous venture capitalist. One of the venture capital firms that invested in them was excel Partners. That is the venture capital firm that was behind Facebook and many, many other famous startups. The company got a lot of money, millions of dollars, and then they developed a game called glitch. Well, and the truth to be told is the game was very glitchy. It didn't work properly, the fans did not like it. And very quickly they realized that's that they had some money left in the bank, about $5 million, non trivial amount of money, Matt. So they wrote to the investors and they said, you know what? The game is over. Tiny spec is no more. It's a sad day for humanity. We're going to return you the money. And the investors, including Excel partners, replied back, we don't want your money. And the reason is because Andrew Brachio, who was an excel partner, who was leading this investment in in his investment memo that he proposed to invest in in tiny spec, said, we invest because of the team, because of the founders. They are in it together. We observe them. They failed together. So when I say VC's are failure champions, it means that the real smart venture capitalists and venture minded people, in fact, not only are not afraid of failure, but they know that in some situations you have to seek constructive failure. So exile decided to proceed with investment, and Stuart Butterfield and Karl Henderson developed a new game, which turned out to be not a game, but one of the most successful companies around. And maybe, Matt, you're using it. It's called slack.“ by Ilya Strebelev
- “Listen, listen, and listen.“ by Ilya Strebelev
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Episode Information
Think Fast, Talk Smart: Communication Techniques
Stanford GSB
5/21/24
In choosing who to date, what job to pursue, or how to invest our money, most people are just looking for a reason to move forward. But according to Professor Ilya Strebulaev, we should be looking for something else: a reason to bail.
"The smartest venture capitalists ask a very different question from what most of us ask," says Strebulaev. Instead of asking “‘Why should we invest?’, venture capitalists approach every new opportunity with [the] question: Why should we not proceed?” This contrarian mindset is at the heart of Strebulaev's new book The Venture Mindset, which reveals how the strategies of top VCs can help anyone make sharper decisions.
In this episode of Think Fast, Talk Smart, Strebulaev joins host Matt Abrahams to discuss how the venture mindset can help anyone — investor or not — weigh alternatives, make decisions, and move forward without looking back.
Episode Reference Links:
- Ilya Stebilaev: Website
- Stanford Profile: Website
- Ilya’s Book: The Venture Mindset
- Venture Capital Initiative
- Article Ilya & Alex Dang wrote: 3 Things VCs Do That Can Help You Land Your Dream Job After Getting Laid Off
- Ilya’s co-teacher for his Venture Capital class: Brian Jacobs
- Ep.41 Speak Like a Founder: How Successful Entrepreneurs Communicate to Their Teams YouTube / Website
- Ep.56 Lean Messaging: How Simple Messages Really Stick YouTube / Website
Connect:
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- Think Fast Talk Smart >>> LinkedIn Page, Instagram, YouTube
- Matt Abrahams >>> LinkedIn
- Stanford GSB >>> LinkedIn & Twitter
Chapters:
(00:00:00) Introduction
Host Matt Abrahams introduces guest Ilya Strebulaev, founder of the GSB's Venture Capital Initiative and professor at Stanford Graduate School of Business.
(00:00:53) The Venture Mindset
Insights into the venture mindset as a new mental model for making smarter, quicker decisions.
(00:02:22) Embracing Failure
How venture capitalists embrace and learn from failure to achieve success.
(00:05:21) Decision-Making in Venture Capital
A unique approach to decision making based on what successful venture capitalists do.
(00:07:34) Applying Venture Principles in Personal and Professional Life
Venture mindset principles that can help individuals in job transitions and personal growth.
(00:10:05) Lessons from Teaching Venture Capital
Ilya outlines key takeaways he hopes his students learn from his class, including thinking differently and networking effectively.
(00:13:25) Passionate Communication
Using descriptive language to engage others, including mixing familiar terms with unique ones to enhance communication about passions
(00:15:29) The Final Three Questions
Ilya shares how he has grown from writing his book, a communicator he admires, and three ingredients for successful communication.
(00:18:59) Conclusion
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