ScribbleLive

Question: How do you maintain entrepreneurial spirit/enthusiasm?

Garrett: Same atmosphere, same employees. Everything the same except %ownership. Maintain conditions you have before.

Garrett: We are more discovery/entertainment, they are more annotation/productivity. They are trying to make something fun, interesting. That's what they personally want.

Question: Did you have a business model in mind during 1st couple of years?

Garrett: Did a patent fairly soon, but didn't do advertising until 3-4 years. Didn't make sizable amount of money until they did the ad network which is when they got funding. Was product oriented.

Question: Did you guys spend time thinking about flow of experience? To give ppl ability to immerse themselves in experience?

Garrett: There's a random nature, but it's quasi-random. If you don't really know what's really coming next, you're more compelled to use it.

Moderator: Did VCs reach out to you?

Garrett: A couple before we were really looking (to his partner). One was Canadian.

Moderator: What is your take on culture of capital between Canada and US?

Garrett: More risk in US in general. Not much experience with Canadian capital. Didn't have a pitch ready until they had 1st 3 Angels.

Moderator: How many rounds involved?

Garrett: All came as same time. VC really just getting going in a lot of cities.

Moderator: Every week there's a Founders brunch in the Valley. Not so much here.

Garrett: Good to have those mixers to get ppl founding companies, funding companies together in the same room in an informal setting.

Question: Always impressed by levels of innovative thought in the Valley. When you're there, do you ever step back and say "I wish ppl knew what was happening here"?

Garrett: There's interesting ideas everywhere. Valley just does a better job of fostering them.

Moderator: More drive to tell the story in the Valley?

Garrett: Ppl always informally pitching. Get to know you socially, not just pitching in a VC's office. You'll like it if you're a networking fan.

Question: Category of financing doesn't get much play on StumbleUpon, why?

Garrett: Prob have to change the feature a little bit to make it more functional. Probably a result of their userbase (younger ppl not really thinking about that). Definitely more geared to entertainment right now.

Moderator: What advice to entrepreneurs?

Garrett: Try to make something with mass appeal, but that you want to use. He is one of top users on StumbleUpon.

Moderator: What do you do to stay in touch with community?

Garrett: All sorts of things e.g. top person became moderator. Beta group. Thinking about starting a wiki.

Question: Are you solely focussed on StumbleUpon?

Garrett: 95 %on Stumble (for next year at least), 5 %thinking about other stuff he could do later. Still feels like he and Jeff haven't passed on all knowledge to team yet (team can do basic stuff, but they are still needed for big new features).

Moderator: How long will you keep doing this?

Garrett: "a while", "i don't know what 'a while' means (in Internet time)"

Moderator: How can you set a valuation on a company? How get an exit?

Garrett: Acquisition was 15X for investors. Also, what you think it's worth. Also, cost per user. Also, how many ppl are interested.

Moderator: If Angel was interested in helping you out, would you have gone to The Valley?

Garrett: Flying there once a month would have been good. Would have done half-and-half in The Valley

Moderator: Started with 4 founders. Whose still there?

Garrett: 1 left to go back to school. he and Jeff in SF, 1 in Canada.

Moderator: Getting support from operational mindset?

Garrett: Spend more time in meetings, less time hacking. Nice having "budget support" to buy more equipment, etc. to go faster

Question: What would you have liked to know before being bought by eBay?

Garrett: Better: can focus on product stuff, not the budget/$ stuff. Worst: less purchasing flexibility (just winging it)

Question: Ever wish you staying in Calgary?

Garrett: For web stuff, "I'm kinda happy I went...I'm glad I went"

Moderator: What's next?

Garrett: Biggest focus = growth. How do we hire really good ppl? Pass on knowledge? How do we construct the technology team to get from 5M to 50M? Thinking about hiring more than he did before. Focussed on operation-type stuff.

END/applause