Category: Personal Thoughts

My 2014

Ever since I started blogging, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s200920102011, 2012, 2013). Here’s what I did in 2014.

Like 2013, I rang in the new year on a friends balcony overlooking Santiago surrounded by friends, including my friend Polsky who was visiting from the US. Polsky and I took off for southern Chile, visiting Pucón, Frutillar and Puerto Varas during the first week of 2014. I was back in the south six weeks later when my parents and brother came to visit, adding Chiloé to the list. Every time I go to the South, I don’t understand why I don’t go more. It’s relaxing, stunningly beautiful, has incredible food and, in summer, has amazing weather.

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I always come back from the south with new ideas, rejuvenated to get back to work and this time was no different. While 2013 was a year of starting many new projects, 2014 was the year that I focused.

In January, I partnered with Francisco Sáenz and Diego Philippi to launch Magma Partners, a private seed stage investment fund and accelerator based in Santiago, Chile. Our goal was to bring US style investment and know how to Chile and pair it with Chilean connections and mentorship to help entrepreneurs create successful businesses.

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A year in, I’m extremely proud to say that we’re already starting to see results. Over the course of 2014, we reviewed over 350 startups, met hundreds of entrepreneurs and finally invested in 13 startups. Running a fund has been much more work than I thought it would be. But it’s been worth it.

We’re already starting to see promising results from multiple companies, but 2015 will bring the hard part: helping our 13 portfolio companies make their way from nascent startups to real, scaling companies. I have high hopes and 2015 will be an extremely important year for Magma and our portfolio companies.

In addition to Magma, I started the year with four active projects Andes Property, La Condoneria, Startup Chile consulting and teaching entrepreneurship at multiple universities. By mid year, my head was ready to explode from so many different projects taking up brain space and I started to focus.

First, I realized that I was using the same part of my brain to mentor Magma companies as  I had previously used to teach entrepreneurship at universities. I knew I had to stop teaching because I was getting mentorship overload, so I found other entrepreneurs to take over my classes. Next, I stopped doing Startup Chile consulting, as it was taking up too much brain space and tried to figure out how I could get La Condoneria and Andes Property to run more autonomously.

After a long search, I hired employees to help run La Condoneria and Andes Property, both of which continue to grow quickly month over month. At the start of the year, I was personally picking, packing and taking packages of condoms to chilexpress (chilean fedex) five times per week and was personally showing apartments to foreigners for Andes Property.  I still work on both businesses, but Andres, Gonzalo and Bernadette have really stepped up to the challenge to take responsibilities away from me.

2014 was the year that I finally started to get better at spanish again after feeling like I’d plateaued in 2013. I still speak with a strong accent, but I can say 95% of what I want to say and am now happy making a joke per day, up from one per week last year. Baby steps.

2014 was the first time I wrote an entire post on my blog in Spanish and the first time one of my spanish blog posts went semi-viral in Chile. It was the first year I presented to large audiences in Spanish without notes, just like I do in English. I also did multiple radio interviews in Spanish for the first time. I’m still not as good as I’d like to be and I hate to see eyes glaze over because I’m not as engaging in Spanish and I am in English.

2014 was a great year for travel, as I explored Chile’s south on two separate trips to kick off the year. In February I took an incredible ten day trip to Uyuni, Potosi and Sucre in Bolivia. I’d previously been to Uyuni in 2011, but never to Potosi and Sucre, both of which were amazingly different from anything else I’d ever seen. I took a mile long tour of the Potosi mine, where miners as young as 10 years old use pick axes, dynamite, coca leaves, pure alcohol and their brute strength to try to scratch out a living. Sucre was an amazingly beautiful window into the Spanish Colonial past.

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Cerro Rico, Potosi
Cerro Rico, Potosi

I took an express trip to Lima for the first time when my Aunt Nancy and Uncle Paul decided to come go to Machu Picchu. It was fun exploring old Lima with them and I ate the best meal of my life at Maido, a japanese/peruvian fusion restaurant. I can’t wait to go back to Peru to continue exploring the rest of the country.

2014 was a World Cup year and I made it three world cups in a row, spending three amazing weeks in Brazil. I saw 10 matches in five different cities, traveling over 14,000 miles in the process. My friends Enrique, David, Sandra and Tiago each traveled with me for parts of the trip, making it an incredible trip. I’ll never forget the marathon trips getting to the first three USA games, early and late goals in USA/Ghana, Jermaine Jones’ goal in USA/Portugal and the trip to the jungle, and the incredible spirt of the Chilean fans, even in defeat against the Netherlands and Brazil. I’m so thankful I’ve been able to attend.

USA Germany
USA Germany

I took three quick trips back to the US, one in late May to visit family, another for a friends’ wedding and the third for my group of college friends’ 10th annual Friendsgiving and the holidays with my family. I think I stayed better connected to family and friends by visiting more, but for shorter amounts of time each visit, a plan I’d like to keep up in 2015, rather than one 5-6 week long trip as I’ve done in previous years. It still isn’t fun to miss weddings, bachelor parties, thanksgiving, the Forward Festival and birthdays, but life is all about tradeoffs.

I made it back to Madison on all three trips, including an extended stay where my friends and I reunited for a weekend of Badger football and memories. I honestly can’t believe it’s been ten years since I started college. Time really flies. Madison is noticeably more dynamic each time I visit. The tech scene is on the leading edge of this new dynamism and I’m thankful and proud of Madison’s entrepreneurs for paving the way. Capital Entrepreneurs (made one meeting this year) and Forward Fest (sad I missed it this year) continue to be pillars of he newly emergent startup scene, with other entities and institutions arriving to continue to progress.

2014 saw me focus on two key businesses, continue to explore South America, attend a world cup and still stay connected with my friends and family in the US. I’ve been very lucky that the years keep getting better and better and I hope 2015 is no exception.

Favorite Posts of 2014

2014 was my lowest blog output in the six plus year history of my blog. And even worse, I didn’t make up for the lack of quantity with better quality. I’m not sure if its because I’m writing less or because my brain is getting mixed up because I’m speaking more spanish, but my writing is noticeably worse than in previous years. Last year 10 posts made my list. This year only four made the cut. I need to get back to writing more.

Seeing Things From Other People’s Perspectives

Never Give Up Is Terrible Advice

The Chilean Mindset Needs to Change From Extraction to Value Creation

Lack of Skin in the Game is the Root of Our Problems

My best posts from the Magma Blog

Ten Frequent Mistakes of Chilean Entrepreneurs / Los Diez Errores Frequentes de Emprendedores Chilenos

The Magma Partners Latin America Investment Thesis / Tesis de Inversión de Magma Partners Para Chile y Latinoamérica

The best books I read in 2014:

1493: Uncovering the New World Columbus Created – I learned more from this book and its companion book 1491 than I’ve learned in a really long time. 1493 talks about how things changed after Columbus arrived in the Americas. It busts myths, adds new facts and really made me think.

1491: New Revelations of the Americas Before Columbus – This book completely changed my understanding of what the Americas were like before Columbus and opened my eyes to some of the amazing things that native cultures in our hemisphere had done. Really worth reading and makes me want to explore Peru and Mexico.

Five Days at Memorial – An investigative journalist looks at what happened at Memorial Hospital in New Orleans before, during and after Hurricane Katrina where doctors potentially euthanized patients.

The Everything Store – A Jeff Bezos biography and the history of Amazon.com.

The Boys In The Boat – A history of the US rowing team in the runup to and at the 1936 Olympics. Entertaining story at the confluence of history and sports.

A New Holiday Tradition: Donate to Sonrisas Colectivas and Libro Amigo instead of Gifts

I’m starting a new holiday tradition this year. Instead of giving me gifts, I’d like to invite you to donate to support two of my favorite charities. You can either donate directly or send money via paypal and I’ll make sure the money gets there. For more information on how to donate, send me a message via my contact form.

Sonrisas Colectivas (Shared Smiles)

Sonrisas Colectivas is a social program started by Felipe Rodriguez and Alejandro Matamala, the founders of Deenty, a company that we helped fund with Magma Partners. Sonrisas Colectivas is simple:

1. Someone who can’t afford dental treatment applies
2. A Deenty dentist does a diagnostic exam and quotes a list price
3. The same dentist discounts the treatment, usually between 40% and 70%
4. The patient puts up whatever money they can afford
5. The patient’s family and friends raise money to help cover the treatment
6. Donors cover the remaining cost of the treatment

Please read more below or donate here.

Meet Elcira, a 54 year old woman from La Pintana, one of Chile’s poorest neighborhoods. She’s one of the 14.5m Chileans who haven’t been to the dentist in at least five years. Elcira started to have dental problems over 10 years ago, but couldn’t afford treatment, so she opted for the cheapest solution: extraction.

Dental problems are a huge deal. Many people are ashamed of their teeth and stop smiling, cover their mouth’s when they speak and start to retreat into their shells. Studies say that one of the best things you can do to improve earnings potential is to fix your teeth.

And even worse, poor dental health makes it hard or nearly impossible to eat certain foods. Barbecues, asados in spanish, are an extremely important part of Chilean culture. Birthday? Asado. Graduation? Asado. You got a new job? Asado. You’re bored on a Sunday? Asado.

Chile’s national pastime is getting together, grilling large chunks of meat and enjoying time with family and friends. The asado culture culminates during Fiestas Patrias, Chile’s national celebration. And people with dental problems like Elcira cannot share in the asado like they want: Elcira’s biggest wish when she started to participate in Sonrisas Colectivas was that she could enjoy meat at her family asado. Other patients longed to eat their favorite ice cream flavor, but couldn’t because of raw nerves.

Sonrisas colectivas invites people who cannot afford dental work to get a free diagnostic from a dentist who then agrees to lower his price to cost, usually a 40-70% discount. Then the fun starts. The patient pledges what they can, then asks their family and friends to donate to help out. In Elcira’s case, her coworkers organized a bingo night to raise money and were able to fund 25% of the treatment cost. Then its up to people like us to help cover the rest of the cost, which thankfully happened last week.

elcira

85% of Chileans haven’t been to the dentist in five years and Chileans buy less than one toothbrush per capita per year. If you account for the people who buy a new toothbrush every three months, the numbers show that there’s a significant number of Chileans who never use a toothbrush. At the same time, more dentists have graduated from Chilean dental schools in the past five years than in the entire history of the country combined and dentists have an average of 60% of their bookable time without patients. It’s estimated that Chile has enough dentists to treat 40m people, but only about 3m go to the dentist yearly.

Deenty estimates that about 30% of Chileans truly can’t afford to go to the dentist, while the other 55% either don’t understand the importance of the dentist, lack dental education or would rather dedicate their resources to other places.

Sonrisas colectivas helps the 30% of Chileans who truly can’t afford to go to the dentist get the treatment they need so they can smile again.

You can check out the stories on Sonrisas Colectivas and donate directly via paypal or Chilean credit card or bank transfer. Or you can donate directly to me and I will transfer the money onto Deenty. Help Marisol, Jorge, Sara, Carmen, Elicier and others smile again!

sonrisas colectivas deenty donar

Libro Amigo

Libro Amigo is a social program founded by Sandra Velasco and Camila Carreño that creates small libraries in public hospitals to foment reading among patients, visitors and staff. You can donate used Spanish language books directly to the Libro Amigo team or via paypal to me and I’ll buy used books to donate.

Books in Chile are crazily expensive. A hardcover generally costs ~$45-$60 and a softcover as much as $30. Used books aren’t much cheaper. In a country where 85% of families earn $1500 per month or less and 50% earn less than $550, spending $50 on a book just isn’t in the cards. Partly because books are so expensive and partly because of low quality public education, Chileans don’t have a culture of reading. Public hospitals generally serve families in the bottom 85% on earners and most patients, visitors and staff don’t have access to books on a regular basis. And many children who come from tough backgrounds don’t have parents who are able to read to them on a regular basis.

Libro Amigo helps bridge the gap by offering books at no cost to adults in the hospital to help them take their minds off of the reasons they are in a hospital. The Libro Amigo team also reads children’s books to the kids who are either visiting or are patients in the hospital. As you can see here, the kids love it.

You can donate Spanish language books directly to the Libro Amigo team or donate money via paypal to me and I’ll purchase used books to donate to Libro Amigo.

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Mensaje de Libro Amigo

Libro Amigo, proyecto que fomenta la lectura en hospitales, estamos haciendo una campaña navideña de recolección de libros. Nuestros lectores son los pacientes, las visitas y los funcionarios del Hospital Félix Bulnes de Providencia a quienes les prestamos libros completamente gratis. Si tienen libros por ahí que ya leyeron y están empolvándose en algún rincón los invito a donarlos a nuestra iniciativa, que comenzó a funcionar hace 3 meses.

Si pueden donar, recibimos libros para niños, jóvenes y adultos directamente en el hospital o en la Casa Central UC (donde trabaja Camila). Si tienen problemas para llevarlos, manda un mail a las fundadoras para ver si pueden ir a buscarlos. Nuestra comunidad de lectores, que crece día a día, y el equipo detrás de Libro Amigo se los agradeceremos enormemente.

Seeing Things From Other Peoples’ Perspectives

Note: I wrote this post in a spiral notebook in 2012, on my 27th birthday, when I was on a beach in Isla Baru, Colombia that had no potable water, no electricity and only hammocks to sleep in. I found it today going through old notebooks and decided to publish it.

I’ve been incredibly lucky to have been born into a great family that has always supported the circuitous, non traditional path I’ve taken so far. I’ve never lacked food, shelter or clean water. I’ve never had to fear for my safety. I’ve led a pretty good life so far. I’ve been lucky.

But once my basic needs have been met, is there one characteristic that stands out that’s made me successful and happy? Is it a characteristic I’ve seen in other successful, happy people? I think there is. But it’s not what most people think.

It’s not just intelligence or education. It’s not money. I know plenty of wealthy, educated, brilliant people who are miserable. After meandering through life for the past 27 year, I believe that, after meeting your basic needs, whether its in, friendship, family, relationships or business it comes down to one ability: the ability to see thing from other peoples’ perspectives. To really understand their motivations and truly understand why they react and behave the way they do.

It’s a simple concept, but it can be very hard to master. Humans inherently care about themselves more than other people. We see things from our own perspective. It’s human nature. So it can be hard to really think about what is motivating a person to act the way they do, no matter the situation: family, business, friendships, relationships. Over the past three years, I’ve realized just how important it is to be able to see things from others’ perspectives. And how important it is to me for other people to be able to see things from my perspective.

It’s such a powerful key to success because the vast majority of people are only thinking about what they themselves want. They might give passing though to what other people want, but at the end of the day, they’re mostly about themselves. If you try to see things from other peoples’ perspectives, it immediately sets you apart.

In business nobody cares about what you want. To be successful, you have to see what other people need and build solutions to their problems. The only way to do that is by seeing things from their perspective, not yours. I started to really understand this idea with Entrustet. We built an awesome service to help people access, transfer and delete their digital assets when they died. In the beginning, not enough paying users cared to make it a success.

I’m convinced that they didn’t care enough to use our service because we built a service that appealed to our perspective, young, digital natives, not to our potential users. We took a step back, spoke to more potential users and redesigned everything from their perspective, catering to their needs. A few months later, we were all over the press and our business was growing. It took seeing the problem from our prospective clients’ perspective to have any success.

It really hit home two years ago when I was helping another business get off the ground. Our team was made up of a designer, an engineer and two business guys (one of them was me). We had to both build a business and build a physical product. We were facing a very tough deadline and all four of us had retreated to the workshop to build two final prototypes of our physical product. Our product designer and engineer needed help building the machine and gave my fellow business guy and me tasks like “reinforce the door” or “connect the top and bottom pieces of the machine.” My fellow business guy and I looked at each other and asked tons of questions, finally doing a mediocre job. Our designer and engineer were getting exasperated at us. Finally, one of them yelled at us, “if you don’t want to be here, just go, we’ve given you the simplest tasks and you’re asking simple questions and not even doing a good job!”

What was a fun, simple project for them and their skill set was really difficult for me and my business savvy friend. On the other hand, my business savvy friend and I were apoplectic when our designer and engineer friends, even though on a tight deadline, decided to spend six hours designing a small piece of the project that had no real value, just because they enjoyed it. We yelled at them “how could you be so dense to waste so much time and money on something so trivial when we’re up against a deadline! It’s elementary business!”

It wasn’t until I went out for a walk to calm down that I realized that neither of us could see each others’ perspectives. What was simple common sense for me was incredibly difficult for him. And what was elementary for my engineer friend was complex and difficult for me. Once we realized that we had to see things from each others’ perspectives, things went more smoothly.

Being a “fish out of water” in Chile when I first moved here accelerated my learning curve. I quickly found myself out of my comfort zone. There were so many things I didn’t understand and a seemingly infinite amount of things that people didn’t understand about me. The cultures were clashing big time. People behaved differently than I expected them to in nearly all aspects of life. Two years later, I have a good handle on why people behave the way they do, which has allowed me to create value in business, make more friends and enjoy life more.

For example, one of the most annoying things I’ve dealt with in Chile is that vast majority of Chileans try to teach me spanish. In short, they are terrible at it. They mean well, they want to help, but its very hard to teach something when you cannot see the other person’s perspective. I’ve had countless people try to teach me the difference between ser and estar (two different words that both “to be” in english, but mean different things in spanish) by saying, “but one is ser algo and the other is estar algo” and looking at me earnestly expecting me to get it. Or trying to get me to pronounce the RR tongue roll by saying “just do this” and “rrrrrring” in my face. “No really, just practice it, try it, its easy.” Or saying “why do you say Pedro de Valdivia that way, its so much easier to say it correctly.” Ugh, newsflash, if it were easier for me to say it that way, I would! So frustrating.

I remember when I was 16, my Dad was trying to teach me to drive.  He drove to an empty park and stopped. We switched seats and I buckled myself into the driver’s seat. He said, turn the car on. I turned the key, nothing happened. I tried again, nothing. My Dad, a bit perplexed and a bit exasperated, said “come on, just turn it on” as if I were being dense on purpose. I got annoyed. He was genuinely perplexed as to why I couldn’t turn the car on. We switched seats again and I watched him start the car. He’d neglected to tell me to engage the clutch when I was starting the car. 35 years of driving a car had put him on auto pilot. He couldn’t see it from my perspective as a new driver and remember to tell me all of the necessary steps. The classic curse of knowledge.

In US politics Bill Clinton is a successful politician because he can truly see things from other peoples’ perspectives. He may not agree with you, but unlike many current politicians that seem to believe that everyone outside of this worldview is wrong, stupid or lazy. Nothing will ever get done if people don’t even make an effort to look at why people think and behave the way that they do.

This isn’t to say that we should say that all perspectives are equal and no perspective is better than the other. I think that’s the lazy way out. We should make an effort to realize why people act the way they do. If we want to change something, we must address the triggers that cause the behaviors, not just the symptoms. For example, I think I understand why fundamentalist muslims decided to attack the United States via terrorism. I think what they did was wrong and evil, but I think I understand why they did it: they felt they were oppressed, that the US was besmirching their religion, that they had little to no economic or political freedom and didn’t see another good way to get their voices heard . So they struck back. I understand their thinking, but condemn their actions in the strongest terms possible.

If you can see things from other peoples’ perspectives, you will be a better person, a better businessman, a better friend, family member, husband or wife. It’s why business succeed while others fail. It’s why politicians win and lose. Why friendships or relationships drift apart or endure. It is the most important quality that I look for in my friends, business partners, girlfriends and politicians I vote for. It’s a skill, just like any other. So I try to practice it every day.

My 2013

Every since I started blogging, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s2009,20102011, 2012).

I started and ended 2012 in nearly the same place: on a friend’s rooftop in Santiago, champagne in hand, surrounded by great people, watching a multitude of fireworks explode across Santiago’s expansive skyline. In between, the first part of 2013 continued on 2012’s theme: a time in flux. I started out preparing to become a professor for the first time. My business partner and friend Enrique Fernandez and I completely revamped our entrepreneurship class How to Build a Startup and began teaching at Universidad Católica in Santiago and Universidad Católica del Norte in Antofagasta.

Antofagasta was a real challenge, but it was extremely rewarding. While the two hour flight eight times in twelve weeks was challenging, the hardest part was teaching a class solo, 100% in spanish. I was really nervous my first class and could see from the looks on my students’ faces that they weren’t looking forward to a whole semester with my gringo spanish, but by the second class, I started getting better and by the final class, my spanish was much better and I wasn’t nervous at all.

I’m glad I got to practice in Antofagasta, because in August I taught another class completely in spanish to undergrads at Universidad de Desarrollo in Santiago. It was rewarding to see my students actually learn something each semester, see their self belief growing each week, and seem projects go from ideas to reality.

My blog continues to build traffic and I was featured in multiple international publications again this year on Startup Chile, Entrustet, Chilean Real Estate and the Madison entrepreneurial ecosystem. It was cool to see Google implement their deceased account option that we’d pushed for back in 2009. While I haven’t written as much as I would have liked, I read more in 2013 than I did in 2012.

I traveled back to Wisconsin in August to help organize the fourth annual Forward Technology Festival and was happy to see it keep growing. Matt, Bryan, Forrest and Preston have done an awesome job since I moved to Chile. Forrest continues to grow Capital Entrepreneurs and Madison’s entrepreneurial scene continues to get more national prominence.

While the first half of the year was a year still in flux, the second half was much more focused. After coming back from my trip home in August, I started Andes Property, a real estate investment company focused in Santiago and published The Expat’s Guide to Chile, a book about living, working and doing business in Chile, which has been consistently ranked in the top ten most popular books about Chile on Amazon. I also launched an ecommerce business, La Condoneria, that sells condoms online. It’s been fun to start to build a business from scratch again and to work with two great business partners. In November, I celebrated three years in Chile.

I also made it back to Wisconsin for my family’s Thanksgiving and my group of friends’ 9th annual Friendsgiving. It really was great to get back and see my family twice this year and it was amazing to see our group continue to grow with more engagements and our group’s first kid. I expect both trends to continue in 2014.

I explored more of South America, but didn’t travel as much as I would have liked. I made it to Chiloé and Uruguay, then visited Mendoza when my parents visited Chile for two weeks, and Pucón, Puerto Varas and Frutillar when my friend Polsky came to visit from the US. I’ve done a better job of taking advantage of going to the beach more in 2013 than in 2012, but plan to do it more in 2014.

I didn’t exercise as much as I would have liked, but continued to play squash and increased my soccer. On the sports side, I went to a Chile world cup qualifying match, some chilean club matches and watched the US qualify for the world cup. Overall, it was a year of transitioning into my next projects that I’ve since been able to sink my teeth into. I expect 2014 to be a very interesting one!

Favorite posts of 2013

What Entrepreneurship is Really Like

Your Internet Business Probably Isn’t A Startup

Privilege

Weonomics

How to Deal With A Smart Disruptive School Kid

My Talk From The Forward Technology Festival

How The Future Might Look

Seven Important Books

Siren Servers: Why are we ok with giving away our data?

How to Survive and Be Successful in a Siren Server World