Entrepreneur Myths (49 page)

He's sat on the boards of 11 companies, served as editor-in-chief of Futuredex, a private equity magazine, and works with ventures internationally including Europe and Asia Pacific.

Born in Yugoslavia, Perge immigrated to the U.S. in elementary school. He became a U.S. citizen at age 16 and represented the U.S. on the National Soccer Team. He was a McDonald’s Soccer All-American and received a full scholarship to play at Southern Methodist University.

Damir is co-founder of Madman Pictures, with Jana Arnold. They have written more than 20 scripts in the action, animation, adventure, romance and comedy genres.

Damir’s hobbies and interests include continuous study and practice of complexity science, Toyota Production System and JIT manufacturing, analog and digital business modeling, film script writing, animation, and TV production, social media, venture capital and finance, mathematics, drawing and playing soccer barefooted.

Damir is the author of three upcoming books:
inspîredex| > believe in impossible
(2011),
Investor Myths (2011),
and
Strategydex|: The Anatomy of a Business Model
(2012). Contact him at [email protected].

ACKNOWLEDGE
MENTS

I have had many great mentors. I worked with some, funded some and studied others. I am a continuous student and disciple of Professor John Holland, Nikola Tesla, Taiichi Ohno, Shigeo Shingo, Walt Disney, Professor Jerry White, John Welsh and Michael Porter.

Professor John Holland, the father of complexity and emergence, influenced me to see the world in a non-linear way and apply it to life, entrepreneurship and investing. Thanks to Professor Holland, I see investing as a non-linear, unpredictable and chaotic system. Who would have thought studying ants and bees would profoundly influence me in the dynamics of investing?

Nikola Tesla is my hero. We are both from Yugoslavia and share Croatian and Serbian blood.  From Tesla, I learned that anything is possible with imagination, obsession and passion. He invented many important technologies including wireless, AC motor, transformers and the current electric grid.

Walt Disney influenced me so much that I co-wrote more than 20 films. He taught me that anything you dream can be converted into reality and money. Who would have ever thought that a little mouse would create a billion dollar empire?

Professors Jerry White and John Welsh introduced me to the wonderful world of entrepreneurship while I was a student at Southern Methodist University. Michael Porter, acclaimed author and professor at Harvard Business School, taught me that business strategy and analysis is critical for entrepreneurs who just want to “ready, fire, aim.”

Kevin Howe, co-founder of DacEasy, Inc. and partner in Mercury Ventures, influenced me greatly. My senior year at SMU, I heard Kevin, a SMU grad school alum, speak at an entrepreneur club function. Before his speech was over I told myself, “Hey, I want to work for this guy and learn to become an entrepreneur.” I quit college and joined DacEasy a few months later. I learned a lot watching Kevin grow, manage and sell his company. I also learned the most important skill in any startup -- sales, from Charlie Kirkpatrick, former VP of Sales for DacEasy. Charlie and Kevin allowed me to work with the utmost freedom and opportunity. I still can’t believe the shit they let me get away with as a young ambitious punk.

I learned so much from many. Kevin Jones, co-founder of Net Market Makers, taught me to look at business as an organic and ecosystem. Kurt Abrahamson, former President of Jupiter Media Metrix and now CEO of ShareThis, allowed me to wheel and deal as a consultant while raising capital for Futuredex. Rob Snyder, a successful entrepreneur and former soccer teammate, showed me how to build a billion dollar company almost overnight. I watched Rob Snyder and Pierre Koshakji start Stream Energy, out of Rob’s home. You see, not every billion dollar startup comes out of Silicon Valley or Silicon Alley.

From interviewing Elon Musk, founder of PayPal, Tesla Motors, and SpaceX, I learned to question the structure and foundation of any industry. Devin Watson, founder of ScreenIQ, taught me that brain power can beat money power in developing cutting-edge software. Bob Ellis showed me the power of persistence.

W. Randall Jones, founder of Worth magazine and author of
The Richest Man in Town
, taught me four things: think big; never, ever, give up; stay positive; and keep going. Craig Wichner, managing director of Farmer LP, taught me to think more analytically, to become more organized, and to think outside of the box — I mean circle. Robert Stenger showed me multiple aspects of finance and business modeling and deal structuring. Robert has been an incredible idea sounding board and exchange over the years as well.

Every great entrepreneur has energy. Rick Citron of Citron and Deutsch Law Firm, an energetic and intelligent entrepreneur and attorney, taught me the positive power of mental and physical energy. Pierre Koshakji, co-founder of Stream Energy, illustrated that patience and emotional control is critical — especially in startups. Peggy Gan, founder of 8billionbuyers.com, proved that belief is the most critical foundation for any startup. Mike Goldstein taught me frugality and thinking outside the box go hand in hand. Stephen Kaffee showed me the art and nuances of a term sheet.

Rodger Bailey demonstrated the art of the bootstrap startup. Woo Jin Kim taught me that battles are won through strategy followed by relentless execution. Curtis Lockey, CEO of Lockey Capital, proved to me it is possible to raise a few hundred million dollars over lunch. Alan Lattanner, former CEO of Blue Iguana, showed me the value of honor, integrity and class. Steve Cinelli, founder of Primarq, taught me about merchant banking, marketplaces and exchanges. Daniel Harris demonstrated that innovation happens anywhere at any time. Scott Prevost, former CEO of HeadPedal, inspired me for his frugalness and imagination.

Dalen Harrison, co-founder of Ensequence, taught me that good things in life and entrepreneurship can happen at any second if you only believe. Bill Roberts showed me that powerful financial models can be simple. Ed Sullivan of Sullivan Media Group, a marketing wizard, influenced me to rethink branding. Tim Clark, partner of Fact Point, taught me about B2B exchanges. Rick Denny of Net Market Makers taught me about marketing strategy and branding.

Other entrepreneurs and investors who influenced me along the way include Jeff Broudy, Michael LeBlanc, Tom Ruppanner, Eric Van Gestel, Werner Scott, Emmitt Smith, Michael Ritz, Jay Ruffin, Surendra Saxena, Norm Schifman, Eric Hebel, David Deutsch, Johan Schotte, Kristen Kennedy, Gary Herman, Stephen Lyle, and David Teichner, Shelly Schaffer, Bobby Napiltonia, Allison Parks, Don Kelly, James D. Gardner, and Daniel Berns.

Our entire staff at Futuredex showed me that applying the principles of complexity science to management actually works in the real world of startups. Many thanks for the dedication and talent of Tri Tran, Tavis Perez, Stephanie Sakmar, Michael Pih, Phong Nguyen, Norma Zimmer, Michael Bryzek, Lee Brockett, Laurent Castillac, Kara Shell, Jackie Searles, Eric Reyes, Christine Calcaterra, Catherine Dale, Bob Searles, Beckie Smith, Anisha Kumra, Adam Phipps, Lori Colivas, Len Freeman, Keith Newman, Natalie Calderon, Jeremy Arviso, Kristy Rogers, Randall Gremillion, Michael Molinski, Usha Mishra, Luke Anderson, Marko Gargenta, Brett Goetschius, Aya Hutchings, Lindsay Gravette (consultant), Mark Leonardi (consultant), and many others.

And many thanks to the Swarm Team — a group of specialists and investors who participated in Futuredex’s Match-a-Million funding competitions where we awarded one startup among hundreds of entrants a $1 million term sheet. Swarm Team participants included Mary Kelley, Bob Berquist, Peter Cowan, Norman Schifman, Rick Citron, Don Fowler, and many others.

My previous partner in Tesla Capital, Ravi Kumra, taught me that (1) simple math plays a more important part than calculus or differential equations in the chaotic and non-linear state of early-stage investing, (2) nature enables entrepreneurs and investors to understand investment risk if we study it diligently, (3) speed and boldness are critical in entrepreneurship and investing, and (4) it is impossible to predict the future. He was bold enough to risk big money on the science of complexity.

In closing, always remember where you came from and who supported you along the way.

My uncle Michael Radojevich, a successful entrepreneur in the energy efficiency sector, influenced me to become an entrepreneur when I worked for him as a teenager. And if it were not for my uncle, my aunt Nada Radojevich, my grandfather, Paul Radojevich and my grandmother Goldie Radojevich, I would have never made it to America. I am extremely grateful to them. My twin brother Dejan and my sister Helen, my sister-in-law Angela, and my brother-in-law Slavko Bandulaja, always believed in me and encouraged me to continue the entrepreneur journey — even during my ups and downs.

My parents Mira and Ivan Perge encouraged and enabled me to chase my dreams. They still do. They took the largest risk in life by coming to America from a communist country with their children and just a few suitcases. I am most and forever grateful to them.

My five children, Paul Jacob, Michael Damir, Jon Dylan, Mira Paige, and Damir Isaac taught me how children, teens and college students view and think about entrepreneurship in today’s business environment and to see the world from the eyes of youth.

My friends Kristen Dautreme and Kyle Ragan fueled me with caffeine at crucial moments while writing and when I needed to catch my third wind.

My friends Norman and Janice Arnold taught me to not
always
be a workaholic — to stop and smell the roses, to sit and enjoy a glass of wine and watch the hail come down while petting their tail-less Manx cat.

My entrepreneur, investor and friends over the years taught me so much — Sven Crone, Professor Shivaram Malavalli, Vish Mishra, Steve Anderson, Peter Brockelsby, Kenny Coplan, Christopher Sweeney, Ken Morrison, Paul Booth, Louis Pollaro, John Blair, Salah Boukadoum, Alem Boukadoum, Monti Smith, Deb and Dave Bridwell, Michael Hanks, Cameron Lee, Jeff Whitton,  Dirk Jonker, Candice Dahlgren, Guy Maltese, Irene Moore, J.B., Cecilia Thorfinn, Jeff Brady, Eric Sacks, Cathy and Derek Scott, Eric Van Gestel, Dean Knight, Murray Bodine, Steve Harshbarger, Joseph Harrod, Scott Prevost, Randy Williams (founder of Keiretsu Forum), Dr. Silva Manuel Mateus, Michael Holthouse, and Barrie Bergman (author of
Nice Guys Finish First: How to Succeed in Business and Life
), plus all the fine members of the entrepreneurdex community.

My ex-wife, Cheryl Hammer, has been a great business mentor for years. She was there experiencing it all too when I failed and succeeded. I became an entrepreneur by working with her in numerous high-tech startups. She took a great amount of time to suggest changes and edits to the book.  Her comments were helpful because she observed me when I was living on the edge of investor chaos — applying the principles of complexity science to startups. Cheryl co-founded Futuredex in 2000, an online marketplace for emerging companies and was a limited partner in Tesla Capital through Futuredex. She experienced firsthand the ups and downs of my complexity investment journey.

I gained something priceless from interacting with all of these great people: the faith to “believe the impossible.”

I want to give credit to the following business writers for inspiring me to write this book and other books in the future. I have met two of the six and hope to meet the rest in my journey of being a business author. They are as follows: Michael Arrington (founder of Tech Crunch), W. Randall Jones (author of
The Richest Man in Town
), Seth Godin (author of
Unleashing the Idea Virus
,
Permission Marketing
, etc.), Guy Kawasaki (author of
Enchantment
), Kevin Kelly (
Out of Control
), and Malcolm Gladwell (
Tipping Point
).

My next books coming up over the next 12 months are
Investor Myths, Strategydex: The Anatomy of a Business Model
and
inspîredex |> believe in impossible
. There are a few more but I’ll let those be a surprise for the readers.

Michael Arrington and my Alaskan malamute dog, Zeke, inspired me to write
inspîredex
. I lost Zeke in 2011, but he lived a good, long life. Although I wrote
inspîredex
for entrepreneurs, innovators, investors and inventors, it’s for anyone, at any age, who wants to be inspired to achieve their dreams.

Entrepreneur Myths
is the beginning of my second journey into the principles of complexity science investing. This time it will be different. I made sure. I went back over my investor experiences about entrepreneurs and their beliefs. An experience can be priceless if you reflect and learn from it. I hope this book is of help to you as you pursue your entrepreneur dream. My goal was to make it an entertaining, educational and useful reference.