for the
thanks
I so nice to be here and down so I always had entrepreneurship in my blood
so I was that kid in six grade you
sold the Jolly Ranchers for 10 cents three for core
I was me and I you know I on this could be a little bit my
story I get the slide right which is I been a banker at lehman brothers
you now living the dream 120 hours a week and really are
you know was kinda thought I was ridiculous that they have your college
graduates stay up all night
you know get some numbers out some all these documents from a spreadsheet and
then
make some analysis and use my brain so I
had this idea for capital IQ's some you may have mom
seen that product so
started that business in 1998 everyone thought I was completely insane
the black archive %um in a hurry and automate that
and %uh so I just started building it names really like me in my twelve people
in a room
like now 10 feet by 10 feet started entering in building
and so ventrally worries about forty million dollars from banks
to build that product and you know
ran it in a very difficult environments outside some like I'm here today to
basically tell you
all not all my failures by many as many as I can remember in 17 minutes
so save you may be a lil bit a pain on your journey
at sold that business in 2004 to the stamp or division mcgraw-hill
and started relationship science about
three years ago and raise
$88 million dollars to build this business information service private him
about it later but basically the common theme was
I was a bank I knew the business problem inside out
and so I could develop the product for and then with a commercial product
basically became a client development person I had all my own
techniques in spreadsheets to basically maximize my own personal selling
and that sort of how it transitions relations science
so inside my own little gift dove you know we're
information mind it was problems but I completely understood and a
and I so basically
star way since I it's about three years ago I
raise this money spent at two and a half years building I raise my money very
uniquely
new venture capitalists all individuals very high net worth individuals like
Andy Kravetz can linger own
stand druckenmiller stand Ron Burke all other people
and I was getting pretty nervous for those you seen Capital IQ its monster a
product right so
play should science demonstrably information proctor
800 people months three years to build and I was getting really nervous about
last december because if I hadn't gone prod working
and happy in witness protection I mean I was scared so the thing came together
and there we started commercializing yet
I'm in February this year and as a testament to the are
own product which you know I current for for two as the Death Star
business development we've %ah you know gained a mystery clients in the first
nine months is selling
its I mean I don't know Stabenow what firms might mention but many of the
largest consulting firms banks
hedge funds private equity funds law firms cetera
so basically you know question I get asked like 10
is what is it like to be an entrepreneur so
basically it's like getting hit in the face every day okay and I would say
you up I skipped my my good slide
there's my good slide is it's really tough
you to our in Ashburn I'd say if you don't have an iron got
you know I would think twice about you know starting a business
it is I it is grueling
and you know you are every day on the verge of you know
success and failure are like two sides of the same point on any given day
and Tom interestingly is just
trapeze interesting from issue I actually
do box a bit and the best fighters in when the most relaxed fighter
whens and so you gotta have to be able to not react emotionally to everything
but so these are just kinda woke you still remember a few things to tell you
about
and so one thing you know when I started Capital IQ I used to hate it when
venture capital would say
what's your market size and I would say you know big
you're a jerk me some money and you know
and and you know and i really
I am and so but but actually
years later I came to appreciate this question because I think
and a large furs I talked to don't size their market
and here's what's going to happen you start a business
five years have your life for gonna go by your not gonna sleep
much you're gonna worker of your but of
and you know why do that if it's a tiny opportunity
okay so you know I rule a farm with its not a billion-dollar
global full potential market size I
no I'm thats me as servile larger scale on for wouldn't really go into that
because
if I just get five China market fifty million dollars nice business if you get
a hundred percent a five million dollar market
and have nowhere else to go it's not really such a great a great way to spend
your time
you know the thick skin part I mean you guys which is a little bit my slide
before
I mean you gotta have thick skin and I have had
so many people say no to me every day of my life
you know every investor in Capital IQ said no
okay multiple times and I
you know no dozen part my side also 0 no doesn't mean now
no means not now maybe later come back to me
even the just say no so really you know as
an entrepreneur who at that point did not have the success like Apple IQ 2.2
had no
you know real relationships no real capital
the thing that I did have was execution skills and so if I saw an investor
and this is actually good point what I did was raising money as I picked
the five metrics that I would talk about to investors and I made sure no matter
what happened was when
up okay and so the next time I saw the might be like
this went down last you know when I talk about it and use or to give people this
is
chemical Park people's brain that makes them want to give you money and I like
hearing about things going out
and so %ah still literally everyone said no
and I P everyone who I thought would give me money didn't give me money
I and I give you up that the first outside capital this is how crazy
raising money is
was on I you know is running around talking everybody
and I and I met this guy
and he says he went to a boarding school with the at prince of Bahrain
and came over the office we spent an hour you know looking at this prototype
he said this looks pretty interesting I think we like to sing in the next the
wired five hundred thousand dollars
without any documents okay and
has like Adler laid on the floor like that awesome
right on and %ah
you know I'll tell you another story about fundraising sort of like the
you know what's by eyes you have to have so
you know we're raised a also first got some I
house of start beginning the fundraising story
people say you know I don't want to raise money from my friends and my
family
here's the story you're dead okay you there are no friends and family of
potential investors
for stop because if you're not gonna talk to people every person you know
you're not gonna raise your money and by the way your friends your family if you
don't hassle me successful they're gonna be mad at you
why didn't you ask me right so so I
salty another fund it fun fundraising story is you know we arm
I then want to raise couple million dollars and I thought this business
would be cool to have a buncha bankers who knew
Wall Street with potential clients and so I am
II qot I basically wanted to get a godfather
okay there's a there's a firm known if you've ever called with capital
discuss Bob lesson had become chairman had been chairman if I dot
smith-barney and I said I need a bob listen so what do they do as I called up
every disenfranchised senior bank on Wall Street I literally spoke to Jamie
diamonds house
okay ice was a true story when he just conserve
booted out of Citigroup II I called his office at City
and they say is not here I said you have a number for me gave me his home number
I call
I left a message with his you know housekeeper
and he called me back and we talked and I asked everyone to come and be
now CEO or chairman of my company has like now no revenue in 10 people
and here any say you know he was very gracious as you I think I might do
something a little bigger
which he did our balter
but but to and I'll tell you really have to be a sleeper online you know when I
was raising that money
I'd literally write a one-page letter I put in a FedEx envelope and I sent it to
the
20 CEOs on the above the top 20 banks
an actual meetings with Prime 9 a.m. and I mean I just figured like it was
physical that have to open in the FedEx important back then
and you know I was you just have to leave it on the field and I'll tell you
about that the fundraising I mean
so I then really wonder is a whole bunch of money from banks
and I like thirty million dollars
and I had a buncha banks had interested but you know nobody would take the lead
and so I had this great attorney with the time I gave me tremendous
credibility because he was served like this
the chairman of the the corporate partner Proskauer
and I and I said here's what we do said
put together the documents put up a memo on top of that
about that the closing happening and send it out Proskauer envelope
and what's in let's see what happens in actually two people funded
is amazing and Sonia Merrill Lynch and Credit Suisse
Kretschmann five million dollars and we can like mine mail them into investing
so it's kinda quite a
complicated processor raising money
on you know so I guess a couple his other bullets
a as a look at my take down here is your prior decision
I would say this is one of the most important I
things when you're managing a business starting a business you everyone wants
to take you in another direction right
some potential client I mean everyone has the idea of where you should go and
and you have to think about that and part is Asian isn't really just
order in which you do things it actually starts with
you make to list the stuff you gonna do and stuff you're not gonna do
and the stuff you're not going to SB bigger and what you're going to do
let's first stop because you know if you wanna go ice fishing it's better to head
100 times in one place than one time 100 places near focus
and %ah you know now Capital IQ not many of you may know this actually started as
an investment bank
I we were you know built the school system and and pop the way we make money
was be the american express at the small deal market
and I you know we're doing the small deals and literally went to raise that
money from banks
guys who ran big banks like joe joe perot is now an investor in our company
was running Morgan Stanley at the time and who fell asleep in my fundraising
mark my
meeting which was held how good I was then but he said I
he said in its current things banking thing but to
you know I'd love to have this from my bankers who work in the time where a
well bill
and so is benchley when I heard that so many times
we became decided with a huge decision to become an information platform
now here's the story I probably could come into college
so I worked in banking but it was sort of a at something in between I could
have gone in
interview okayed credits reason meryl giving us money let alone
imagine that they would all work on this platform and put their documents were
contaminated zone it was
a crazy idea but we basically went for it again I maximize the credibility of
mine disasters and I would
I guess one common theme there is I also
have have sought investors that sort of were useful to my business purpose
I you know bankers were Capital IQ ives to raise money from a lot of very
you know people who were exceptionally successful and who use their
relationships to
to create their career and and by the way I hustle them every day of the week
with you now can introduce me this person that person
and relationship marketing and so I'll tell you a little story or two just a
funny story Managing Board investors
so I have so many stories I'm never gonna make it through this but here's a
story
I R %uh true story okay I'm we were
who was a investors can invest and I
you know we got down to the week before closing he stopped returning our calls
and were freaking out I and so then I
about I two days later I got a call from the guy runs the funny goes up
hey I and understand that there were supposed to make an investment
I don't really know if you buy a business key tell me that it's on like
holy crap right leg you know the %uh start from scratch from
so I didn't like the pitch like on the phone once wedding
this is okay okay we're gonna fun so I found out later that the guy who's going
in vast
totally coked out scarface style on the trading desk like blood in Co
streaming in like basically was fired but while my deals closing
and strange story and then um so this this this fun
drops a an investor in char board who'd never been a VC before
okay so first of all josh is selling her ears a
is a very good bc I will tell you that they are very rare
okay the sea is we've never operated business think if you change cell C 32
Himalaya MW profits next year
have no idea what you what's going on okay so this person had not been a VC
NRK a story he on he was on a compensation committee is
I and on missus on
post-9/11 we were kinda very you know tight on expenses
and Dom it was I'd I'd work this very a
clear and concise memo when I put some schedules behind it the really
explain compensation how we're doing it and I
the meeting time arrived and he was not here there
and so I've called his office in and and has
spices to put me through demand said is the No I forgot
and I said well why don't we just a telephonic leaders from other members I
said
if you turn to page 2 Eagles what would memory talking about answer fish it out
I told them I sent you this time
and I struck making my present issues stop
he goes you too many people make a run two thousand dollars you should fire
them all
as traders get back I Kevin just fire him
as like I am let me explain to you
you know how what his value is and how are actually came a lot less is
guaranteed salary and I
and Anne style care fire him and so I said I'm
I said look I think we should I applause and we can be in this meeting
another time and had more time attire s the story but
but are okay was great news I I then had to basically
you're up for a fight my way around all my other investors
individually and said on I got someone might be a problem and I just want to
tell you about it now
flap your support and on the guy then calls me later that week on the phone
gonna try to work it out behind the scenes any calls me up and he goes
yours is you know what your job is I said what's that
as his your jobs do what I tell you to do
and I said really I said I don't think that's the case I think actually
my job is to you know what try to explain to them
to the border to various committees what I think is in the best interest the
company and you might wanna check with your attorney
about breaching their fiduciary obligation means when you tell someone
that youth or you don't just a little side note my check into
anyway it worked out in my favor and our
me know just to cover few points here is you know selling
you know people say I'm not good at selling I'm a total introvert
came here I am with you seriously you gotta sell your product
your showed everybody and anybody who wants to see it and you know
generating revenues the best way to cover your expenses
and I would say 42 her outset
order to order to
outside to ask things in our character quick applied for something is
so fortitude as you know I think the best quality you can have
the dome it is a mountain the you have to move
everyone in the world Stace a summit is operating
against you it takes monumental effort and you know what and
and what happens though is when you get that train moving everyone wants get a
moving train
and you're gonna get beaten you're gonna you have good days bad days
he's just a with a gift outlast everyone
okay so that's forger and I will give you
the best piece of advice anyone ever gave me I'm which is
when you're in a hurry take your time
and to come to go a little deeper on that is every most mistakes I've made
I've made time and my personal and professional life
is when I thought the wrist tremendous Matt time pressure I had to act
and it was really in reality used by me
imposing that time pressure on myself and I would make mistakes
at the moment so what I punched nor would I be if I didn't plug my company
for three minutes
I just wanna tell you about Sarel side basically as I mention
is we nap together
all the most relevant influential people in the world I across an array of
industries
everything about them professionally relevant things about them personally
however on into relates
this is not user-contributed contributed data
this is Paul publicly available but we disagree dated re aggregated
and we put together an extremely clean interface so the people who sell
anything by very high nature configure who do I need to talk to
how can I get from when I get to happen develop a personal relationship with
them
and so just give you a sense of what that is a couple slider to
is I wanna meet this person I could figure out who do I know in common with
them
and we tracked everything who year brother is
pictured together did deals with whatever the case may be and so what
this is showing is
I wanna meet her skin I know David is my neighbor upstate and
you know they know each other this way in Psych and asking hey
he introduced me all the relationship someone has
you can see for their family members education
donations career you know nonprofits political donations coming up and get a
flavor for their passion about
events they've attended or are attending case you are super stock them
and you know an example an example love one is you know
let's say I'm a young entrepreneur really want to go talk to people Cornell
when scorn our the new york city or in venture capital
I can run that search all that I could figure out who do I know who to my
friends now
and then who might one degree from which it so basically this right hand screen
the top example the saying of I want to meet reggie I know
a whole host the people can introduce me to the cut for ideas in your contacts is
a tremendous amount of power
and none of us real dirty contact we don't know where r
people we know are working let alone all the extracurricular things they're doing
so we tracked looks retract that for you and your people serve
mash their own contacts up against that so
I that's basically I are slight so
thank you and up thanks for having
thanks okay so we have to i think i deleted post questions
and then you'll have the directions right there on the screen
K and I'm are kicking off quickly
and so you talk about the importance of sales which is i mean you're selling
investors are selling
customers you're selling someplace to join you but they don't teach sales in
school
how do you develop sales skills and higher for sale skills
if this is so important I'll has a really great question I would just say
look you have to be fearless I mean
no entry me specifically in sales you just have to be fearless
unrelenting and willing to go to just that point
the issue of how high emotional intelligence channel just that point
where it's
almost annoying and you know in PB persistent
and you know you have to look for people I think people
after he also them to handle yourself with people and be able to
deal with an array of situations and just they need to sell your stuff
you know you gotta feeling ever proctor value talk to people by the way
not your you know it's it's a mathematical equation right
ultimately you're going to get a lot a nose rain so
one in 10 says yes know is a good thing because I just 39 more and I'm gonna get
a yes
right and so you just have to have you know
willingness to go out there and and and sell
I don't know more than that Nate mystery but an important one
how it sees a couple couple questions here when question is how did you
conquer your interviewer nature
d are you entered I i'm i'm a secretly
the secret introvert I I think that you know what my
my this situations they put myself in
from business contacts required me to
develop certain skills and you know
that you know I did not sell either I solvency have to be
able to adapt and I mean I used to be you know I would
would have you made a mess in my pants speaking from above a group
you know 10 twenty years ago and a little early so I took I mean I'd
you now I think I took a public speaking class and got some
you now startin' or am I'll just gotta do it a base here's another thing
so I you're gonna be an entrepreneur
you basically have two eliminate procrastination
and I actually used to train my brain anything that actually I didn't wanna do
I made it make a red flag in my mind and I meant I should do it right away
and basically so you know you have to
adapt to our to survive
you know entrepreneur knowing assertion in some ways is a masochistic
skill set is kinda very junior self to two senate very true
agree I am what major lessons did you take from founding
Capital IQ and and how there is informed outside
on one don't take venture capital money
sorry I to on you know I
I think that no I actually do think that I i was very fortunate
in I was able to pic investors I had my pick up investors and
and this business and so I pick people I follow incredibly smart incredibly
kind-hearted and people I wanted to work with his post just had money and I'd be
uphold into to him I think I am I
you know I also built this business a little differently which is
you know venture capitalists have a time frame
which they won and ask and so I'd start certificate in money that had that time
frame I think that person why talk before
part of his strategy as investors to make me so uncomfortable that I want to
get out of that situation which you know
kinda food make people anciens for sale situation came
go this when I kinda it up to
me in the team to the side what we're gonna do the business and there's
actually
and no puts know anything like that people have to control the business so
you have investors
still I do we've got I got a 100 on credible 1988
million dollars with them so how do you interviewed as investors were the things
you ask now to make sure you don't get honest
you know use be people in a sense of common on you now
to us and people I don't give them control yes
I yeah people you know literally is like and I approached it a little bit
I like I don't need your money Here I am
I get a great story i mean i i we have a lot of I love a TD billionaires for
investors like a
sure we were pressed for time out a simple area stories
via specific people that hookah
and and and the crazy meetings I had with them
not enough for the off-the-record percent chance yes
have your yes I'm what about a
one quick question and you turn it on it here had
so big data is big and obviously you're lis prisons capitalize installers data
that's out there and then there's the question of privacy
and in all the stuff being out there how are you not only how do you think about
that but also where do you think we're going
as a society in terms of openness and transparency
so so I would definitely not call us big data I would say we're medium data
median payment upon the trademark a so we you're not
you know if you guys use Capital IQ I mean it is clean
write the date has to be clean for to get a professional
at a you know you know 10 plus billion dollar hedge fund user product
your information has been freed accurate and so you're not crowdsourcing this
you're not scraping information
and so relations science we got your 600 people
who basically sit around the database for click data
from tens of thousands sources but we we integrate is incredibly fine is actually
a
way that you develop you know streams at work for people basically yes yes no no
yes yes
neural information excision so I'm big fan meeting David Salisbury specific
business problems for people who
whose time is very valuable and they will pay for you to help save them time
or help them make some money I'm your privacy was out I interestingly we have
a lot of creepy stuff in our product begin with
and we had some a some you feedback sessions with our investors we had like
everyone's kids read net worth estimates and things that
so base anything that made an increasingly stripped out and we for
instance we don't show
your minor children we show chilled gradual show anybody
their family members unless otherwise relevant to the database at a concert
pricey so we just tried to
be very respectful we built this product and I don't know where we going
transparency is
you know it's funny you know ken Ken Langone who's on our board member
Nationals in a great guy and he said i
I think actually when our first interview the reporter said that he said
you want to be in the papers you know what i mean there's a
don't get your picture taken don't give money in your name you know don't talk
to the press don't you know
but it's just a the world we live in yeah
are probably more used to it as time passes what about a
soon 5 your goals you know where the reissue
already see the business in five years at just
for me or for the cup white my personal is to stay upright
okay and for the company a lot still alive
and I you know is is lucky I think that any entrepreneur you got a couple major
hurdles
like one is you know you get a raise money to is you gotta get your product
on
three gotta get a break even you know and then you can go from there and so
in this particular type a business or by the way I love this particular business
model in which is
a annual subscription if you delight your customers
you know you don't have to develop the new cool widget next year
the new cell phone its people love it the key buying and occurring revenue
and so in this business have yet to break even you're basically home free
cousin just as all and by the way to fixed cost business with you know
it's almost a hundred percent variable gross margin very bopping margin
what you cover your costs so basically just grow the business and I
hope you know everyone here hopefully everybody here you know we can change
the trajectory of your life you know
I think and what's my passion is building tools
that help people you know do their work better and be better be their best
and I this product gives access to
relationship maximization that was like a black heart
before before for us yeah
congratulations and thanks I so far in the fighting me off
all I I'll