I spoke to Chris Sacca, one of the youngest self-made billionaires in the United States today and the founder and chairman of Lowercase Capital. In the interview, Sacca talked about the leadership lessons he learned while at Google, why you need to pair the right leader with the right business idea for success, how to best pitch him, his experiences as a guest Shark on ABC's Shark Tank and gives his best advice.
Sacca has the most successful venture fund in history, with early investments in Twitter, Uber, Instagram and Kickstarter. His impact in the realms of technology and entrepreneurship led The Wall Street Journal to once cite Sacca as “possibly the most influential businessman in America.” In parallel with his investing accomplishments, Sacca is a very active supporter of charity: water, working hands-on to bring clean water to the world’s poorest families. Before Lowercase Capital, he served as Head of Special Initiatives at Google, where he led the alternative access and wireless divisions. You can follow him on Twitter to stay updated on all of his insights and investments.
Dan Schawbel: What leadership lessons did you learn, and what skills did you develop, while at Google that has made you a better VC?
Chris Sacca: Larry & Sergey taught me the beauty of unbounded ambition. The only way you could get laughed out of the room with those guys was to bring them an idea that was too small. Eric Schmidt, the CEO, had a principle that "Thou Shall Not" clauses in deals were usually ineffective and showed a lack of trust. Overall, Google trained us in a skill they called "Management Without Authority." Most of the people working on a project don't actually report to the project lead, so it requires a lot of soft power skills to move anything forward. I call upon these lessons daily.
Schawbel: We've heard countless time that the operator of the business is just as, or more, important than the actual ideas. Do you believe this and if so, what do you look for in startup founders/leaders before you invest?
Sacca: A great idea can't succeed without a great operator. But rarely can a great operator squeak by with a bad idea. So, as pithy as it sounds to say "It's all about the people," I only invest when I think I have found the right team for the right business. Travis Kalanick was and is the perfect person to lead Uber, a product I knew from day one was going to be big.
Schawbel: How can an entrepreneur prepare for a meeting with you and your team?
Sacca: Nothing works better than a cohesive narrative. Meaning, a compelling story that links the opportunity to the solution and is convincingly illustrated by the numbers to date. Effective storytelling is the key to getting users to understand and adopt your product as well as imperative to recruiting team members and future investors.
Schawbel: Tell us about your experience as a guest shark/investor on ABC's Shark Tank. What did you learn about the other sharks, yourself and how have you benefitted from the exposure?
Sacca: Shark Tank has been a sincere joy. As our traditional venture-backed companies get bigger, the investing side tends to get more political and complicated. Shark Tank takes me back to my early days working with ambitious founders in their earliest and scrappiest days. The show reminds me of what I deeply love about this business.
Schawbel: What are your best three pieces of advice for future leaders?
Sacca:
- Know when to ask for help. It makes those around you feel empowered and valuable.
- Read. Read. Read. History is an oft-ignored mentor.
- Eat well and exercise. You can't perform your best if you treat your body like a rental car.
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