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Schachter: I have never had a great deal of trust for people who don t execute on core ideas. I understand the value of needing someone to deal with that kind of stuff someone s got to do the VC pitch and there s got to be a CFO, etc. But the guy who says, I have a great idea and I m looking for other people to implement it, I m wary of frequently because I think the process of idea-making relies on executing and failing or succeeding at the ideas, so that you can actually become better at coming up with ideas. It s something you can learn. It s a skill, like weightlifting. That failed; that worked; continue. You begin to learn how to make ideas. So if you are someone who can t execute and all you can do is come up with ideas, how do you know if they are any good You don t really know if it s a good idea until you ve executed it. You need to understand the cost of execution and so on. Also, where I worked at Morgan, they were not hyper-trustful of MBAs. All my coworkers were PhDs in computer science, mathematics, or physics. Livingston: New York City doesn t seem to be a place where too many startups

financial places, there is lots of high-end, high-speed transactional technology. There are a lot of good problems in finance. The technical problems faced there are hard. One issue is that there is a lot of money to be made there and the companies that are doing that pay. Some of the big brokerages pay a lot of money annually for their technology.

Livingston: Why aren t there more good hackers living in New York City then Schachter: There are. They work at banks and stuff and have side projects. Livingston: So the smart hackers . . . Schachter: They re around. They just know when to be quiet and when not

Note Although the Position and Target vectors of the camera point to real points in 3D space, the Up

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You don t want to mislead them On the other hand, this kind of tutorial is easy to edit Just sit someone down at the keyboard who is unfamiliar with your application, and watch them as they read your manual and go through the steps, noting every place they stumble over an instruction Once your user masters the operation of your application, they will have very little need to do the tutorial again However, they ll have questions about how to use certain features of your application At that point, your manual.

Livingston: Who did you learn things from Schachter: Albert, the guy I mentioned. I learned a lot from Fred Wilson of Union Square, certainly. I learned a great deal from my Morgan folks. I learned a hell of a lot about how to understand problems. It was rough sometimes, but they pushed me far. My coworkers at Morgan were smart people. One of the people we worked with won the Nobel Prize for economics while I was there. It was a fast, smart environment. I remember when I interviewed at Google the first time around and they were making derogatory comments about where I worked: Well, here you ll get to work with PhDs and computer scientists. And I m like, I already do. Livingston: So it didn t work out when you interviewed for a job at Google Schachter: I went out there once and was rejected because I didn't know C++. Livingston: Was there ever a time when anyone tried to trick you or take advantage of you Schachter: Yes, but it would not be polite to talk about it. There were several cases of people wanting to get equity in advance of other people, or weird deals. Livingston: As a new startup founder who has never done a deal or negotiated,

Schachter: In general, I found VCs to be significantly politer than the folks I worked with. The worst they did was not call me back. I d never hear from them again. Brad Feld does a nice blog talking about how the VC process works. He says they never call you back to say no they don t want to close the door in case they want to open it again, but they don t want to actually give you a response. Very few VCs actually said, Sorry, we re not interested. Livingston: How did the process of starting your own company and then selling it change you Schachter: It pushes you far. You learn a lot. I did a round of funding, I was

writing code, I was hiring people, chief architect designer, negotiator, you name it. I did all of it, for the most part. When Albert got up to speed and was working full-time, he did a great deal of work there as well.

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