Jeff Raider of Warby Parker and Harry’s Stops By

This week we had Jeff Raider come through for a Lunch n’ Learn. He talked about his days at Wharton, founding Warby Parker and the early years of hitting the pavement. Finally, he introduced us to his newest venture, Harry’s! There are a few highlights from his ride so far that I think are worth sharing.

First, Warby Parker began with a well-known startup story – bootstrapped from the dorm room. The idea came about when a friend was frustrated by the high cost of prescription glasses. There market was somewhat of an oligopoly, dominated by a few companies who got away with crazy markups. They found a spot to play and went against the big dogs. The four friends put their savings together and starting building the product. They sourced the first customer service rep from a classmate’s wife, who would answer calls while they were in class. Eventually, they were missing class and exams and working on the project full time.

Growth was organic – WP didn’t spend a dime on marketing for quite some time. Since Jeff was sponsored, he felt obliged and loyal to friends at his office to return and work for them. So two of the four left and now sit on the board while the other two still devote themseleves full-time to WP. Jeff, knew this wasn’t all and was waiting for another idea to catch his eye.

A friend called him one day after feeling ripped off from buying razors at a convenience store. They cost what, 0.40 to make? And he’d spent roughly $20 on all the supplies. He knew then there had to be a better way and the two began work on what now is Harry’s.

Jeff emphasized that Harry’s is a brand, not an ecommerce play. Ecommerce, he noted, is selling other people’s brands and products through your vehicle. Harry’s however, communicates a clear message to its consumers to resonate with them in a more personal manner. They sell directly and use a one-for-one model (or one-for-”value of one” model to give back to people and organizations that help people “look and feel great.”

I had a chance to meet with the Harry’s team in NYC a few weeks ago and they are doing great things! It will be really exciting to watch them over their first year.

Intersection of Fashion and Wearable Computing

Just as UX/UI for web development skyrocketed to popularity in the last decade, the point of intersection between fashion and wearable computing is a growing sweet spot that is likely due the same course of action.

The difference here is that instead of just aiming to ease use of interaction with technology, there is an additional physical layer (fashion) added on top. I’d argue that fashion isn’t just a subcomponent of UX in the case of wearable computing, but rather a deserving element of its own. There are both artistic and individuality breaths that need to be cared for when creating fashion. For some it’s irrelevant, for others it’s their strongest form of personal expression.

Just another space I’m particularly psyched about…

Google Glass Explorers Progam…eeeek!

I write this post from the skies somewhere between MIA and LGA. Seems fitting for the excitement that ensues.  Although there are dozens of great startups tackling bringing AR mainstream, I have to admit that the hype surrounding the Google Glass Explorer Program bit me in the ass. But with the wait over I can finally say, I’m in!!

Now that I know I’ll be using them by this summer, I can’t wait. Think I’ll rent them out to my friends to cover the purchase price ha. Any first takers?

A World With Mainstream AR

Augmented reality has reached new heights both in technological progression and a level of hot-off-the-press exposure this year. Sure, Google Glass has been a major catalyst for some of the hype and although I didn’t win the #ifihadglass contest I’ll still make sure to get my hands on an early version so that I can be one of the awkward people walking down the street talking to myself with no cords or phone pressed to my face. But it’s not just Glass. Apps for our smartphones and tablets are helping to integrate AR into our lives in a tangible and meaningful way. Check out Wikitude, Layar, and Jumio all of which are making good early strides in hacking this path for us.

I wanted to post a collection of videos that highlight both where we are today, and where we’ll be in I’m sure just the blink of an eye. Surfaced in some of the videos is the growing privacy and social impact concerns that AR will undoubtedly be forced to face. Some Asian countries I presume will be faster to allow more of this technology freely integrated into our daily lives. The US and many European countries I’m sure will be quick to ban AR in many places (fine dining establishments  movie theaters- for however long they will continue to exist, etc). But like many other technologies, I believe the benefits of AR will start to outweigh the negatives (or at least we’ll refine/enforce/adapt to the negatives) and boom pow – mainstream!

Early areas of disruption I see being obviously 1. social – messaging, video, posting, sharing; 2. cultural – museums, galleries; 3. retail/shopping – advertisements, previews; and 4. education – enhanced content. Now for the videos. Sit back, relax and enjoy the ride…

Sight

How It Feels [Through Glass]

AR Chipset: Metaio & ST-Ericsson

Glass

Matt Mills – TED Talk – Aurasma

Digesting thoughts from an expert

In the midst of Chicago’s snowstorm last week, we got to meet with Rishad Tobaccowala, marketing extraordinaire, who shared some insightful views on the shape and future of several industries. I’ll broadly hit some of them and sprinkle on my own views and experience. Let’s dig in.

Effect of the Internet on Marketing – First, let’s go back to the 90s when the internet started to become mainstream. Individuals could publicly support, or perhaps more with more effect, criticize companies with a broader audience and on a higher stage. As people became empowered, marketing became more difficult, as it was increasingly necessary to have a two-way conversation between the company and consumer as opposed to the earlier “talk at not with” approach that sufficed. Companies were forced to address problems with products/services, quench claims and rumors or be faced with the public consequences that would impact the top line.

Where Not Who – For a long while now, who you are has been important. And I’m not trying to belittle individuality and a self-love that we’ve all grown to have through continually enhancing the plethora of global profiles we have across various platforms. But Rishad suggested that “where you are” is now becoming more important. To know that you’re a 50 year old white male is great. Maybe we can target you now to sell socks. But to know that you’re at a golf tournament in Palm Beach on a Tuesday in May might reveal more information than what we could find on your drivers license.  Or, what could you do with knowing that there are 4,000 people at a beach jazz concert in Miami in April? A lot.

The Rise and Fall of Industries – I agree, it’s a pretty thick title for the light discussion here, but I want to keep it broad. It’s captivating to watch whole markets and industries be birthed and then crumble as others take over. Take the camera industry, for example. No longer are people buying cameras independent from their phones save the wannabe and true professionals. But the under $200 camera market will look less and less enticing in the coming years as the capabilities of built-in cameras in smartphones continue to improve. So, what industries are ripe for disruption now? Medicine, finance, and education. All three need massive overhauls and there are some great startups proving to help shape the future landscape of these spaces. I did a study on etextbooks a few months ago and find this sector to be particularly appealing. Also, the notion of education being taken from the physical to online world is nothing new. In fact, one of my brothers received college credit while in high school for taking an online class at UPenn in the late 1990s. But now there’s a growing tide of using local talent and skilled people to teach local classes sourced online – fostering more resilient community relationships. There’s one such company in Chicago that has a class I’ve signed up for and will attend next week, so I’m excited to experience the product end-to-end!

While Rishad discussed many, many more engaging trends and concepts, I’ll leave this post at these. He is certainly an incredibly astute guy who knows his stuff!

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Coq au vin, anyone?

Food is one of the few things everyone has in common. You have to eat. Kitchensurfing is running with the airbnb/couchsurfing concept, this time for kitchens. You can book a chef to come to your house to teach you how to cook anything from foie gras to an ancient family recipe. Or you could just use it to impress your friends with a chef-prepared meal at a dinner party. This is probably the route I’ll go since I currently have budgeted about 7 minutes in my day for cooking. Look them up on an empty stomach and you’ll likely be their next client. For now they’re only in New York and Boston – can’t wait for them to get to Chicago!

Also in the space: Kitchit

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The Digital Home

In the 1890s Edison brought electricity to the home. In the 1940s women lightened their loads in the home with the vacuum cleaner. And in 1950s the color tv became a staple item in the living rooms of millions. The home has been a constant place of innovation. We’ve watched over the past decade as app after app change how we use our phones and connect with family, friends, and strangers alike. Now it’s time to turn the home around again. There are a number of innovations pushing to make the home come alive.

Nest  - an obvious favorite with a lot of recent press and attention. Founded by the makers of the Ipod, this learning thermostat is an easy-to-use thermostat that you can control remotely, that learns as you use it, and tailors to your lifestyle.

Taapi – this one is an interesting take on energy conservation. Taapi uses gamification to let others turn of your lights. After beating a game, you can see what lights are available (on) and tap them off. Of course, you don’t necessarily have to open up your home to the world, and can play privately controlling just the lights in your own home.

Lockitron – also a big name, Lockitron came on the scene with a widely publicized remote locking device. Have visitors or need to let the dog walker in? You can remotely unlock the front door for them or give them access of their own. It is also blue tooth enabled, connects with any smartphone, or by text message for older phones.

Ube –  with a smartphone and a wifi router you can control all of the IP-enabled smart devices in your home. Ube also allows you to measure and track the amount of electricity you’re using and estimate cost savings for keeping the lights dimmed or off.

Over the next few years, what most of us today still consider sci-fi will become a mainstream reality and will significantly transform our daily lives as we know them. We will have greater control of our home at any time from anywhere – from your downtown office to a hammock in Fiji.

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Takeaways at 24th and Fifth

24th and Fifth. Having spent the last two days visiting with seven of New York’s finest VC firms as well as General Assembly, I found my way to Eataly (a fab Italian market pleasing both tourist and local palates) to recap all the insight that had been shared. These are my takeaways.

1. Team + Idea + Timing

Entrepreneurs often ask themselves what does it take to get a VC to turn his head (yes, most likely his head) towards a startup? Did they reach a revenue threshold? A certain number of users? Just what is the magic sauce? One of the VCs we met with put it this way. We invest in the Team + Idea + Timing. I think he summed it up perfectly. Some great ideas come about when consumers and markets aren’t ready for them (e.g. WebVan, the 1990′s version of today’s Peabody – online grocer/delivery). And more often than not, teams are built today that could use a lot more umph. In the same way that you wouldn’t think to buy a car with an amazing exterior but no engine, you wouldn’t buy an idea without a superior team and the perfect timing for them to turn it into something successful (10x-like successfulness).

2. When the table turns

The VC-entrepreneur relationship is an interesting one. Typically everyone views the entrepreneur as the one with the struggle of getting VC attention. And this struggle is certainly true. But how does this relationship change when a deal is a particularly good one? One VC we met with noted that, after some acceleration there is a tipping point when more then a handful of VCs become interested and the table turns. Thinking carefully not about which VCs to TARGET, but which VCs to CHOOSE from, becomes the question. Not a bad problem to face.

3. NYC, a giant in a toddler’s body

The NYC start up scene is on the rise – no doubt. There is engineering talent, there are good ideas, and there are capable people building some of the most innovative companies in the country. But NYC is still in the growing stages. It of course has taken home field advantage exploiting its expertise in media, fashion, and marketing. But what will happen when zillions of startups dilute this space? What will NYC be known for next?

I’ll end this post with a few cool companies that are keeping my love:

  • PoshMark – I find myself, like I did this morning, waking up early and this being the first thing I hit on my phone. I can spend for-ev-er on this app, continually scrolling down finding all sorts of jewelry, clothes, and accessories finds from the high-end, low-end, and everything in between. Funded and moving on up!
  • 42Floors – hello, genius. office space search made easy. point. blank. period. Also just received a surprise Series B.
  • GoSoapBox – I LOVE them. They’re not new, but they are great. Interactive meetings (and classrooms) are now for real. As a speaker/moderator, you no longer have to deal with the dumb questions or get a surprise/weird/inappropriate question when the mic has been regretfully handed to one of “those” attendees.
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