Deconstructing the saga: David Ulevitch
In the latest episode of The Career Circus podcast, David Ulevitch - General Partner at Andreessen Horowitz - shared stories from an entrepreneurial journey that spans founding his own company, selling to Cisco and then becoming a venture capitalist investor.
Let’s unpack what made his stories so compelling.
Setting the Scene
David’s stories are laden with surprises.
The first surprise is a correction. He points out that Cisco credits him with 13 years at the company, but in reality it was 10 years at his own company - OpenDNS - and then 3 years at Cisco after OpenDNS was sold to the firm.
This correction helps to establish authenticity, communicates insider knowledge and subverts the polished executive persona that listeners expect.
The second surprise is how he got into VC: he wasn’t seeking a career in venture capital. Instead, he fell into it through his entreprenerial journey. This helps to challenge conventional perceptions the perspective that VC investors have.
The third surprise is how he demystifies the VC industry by noting that venture capitalist firms sell cash for equity. This revelation is then paired with an insight - that venture capitalists compete not by investment volume but by culture and values.
We basically sell cash for equity. It’s like the ultimate commodity business. - David Ulevitch
This works because most listeners won’t have raised capital from VC firms and so gain a valuable insight into how GPs at VCs think and approach investing.
Human Connection
David creates a human connection by emphasizing the people aspect of his journey as an entrepreneur and investor.
People are the most important thing. We often will invest in ideas that sound absolutely crazy and ridiculous. But if that founder is just so incredible and so magnetic it makes you want to believe. - David Ulevitch
Rather than focus on game-changing ideas or ground-breaking technology, David focuses on people and reveals that the founding team’s sense of belief is vital to attract capital, talent and customers.
To bring this philosophy to life, he tells a story about a well known figure: Elon Musk. David notes that when Elon raised finance for SpaceX and convinced people to quit their cushy jobs at NASA to join his mission to Mars they were buying into Elon’s vision more than any specific outcome or salary.
Storytelling through geopolitical conflict
Great stories are driven by conflict and resolution. David taps into this universal truth by telling the story of how his work impacts and is impacted by the geopolitical tension between the United States and China.
He shares that at Cisco, he was bidding on win multi-million dollar contracts from European clients. Huawei would offer a similar bid but outcompete Cisco by offering 40 year interest free financing from the Bank of China; something Cisco could not match.
This anecdote draws listeners in by revealing how multi-faceted the competition between the United States and China is. Even though European businesses are pre-disposed to buy from fellow Western companies, they’re picking Chinese enterprises instead.
The stakes are then dialled up when David explains why this is a problem: Huawei is controlled by the Chinese Communist Party which is known for its surveillance of civilians.
The stakes are then raised further as China is not just out-competing the U.S. in networking equipment, but up and down the supply chain.
We’ve increasingly seen is that American companies have stopped doing things in our supply chain; we need to do our own manufacturing and building. - David Ulevitch
This issue is brought to life by breaking it down. David points out that drones need motors which are mostly made in China. Motors need copper and magnets which increasingly come from China.
This helps paint a picture of U.S. economic vulnerability - China has a dominant position across the supply chain.
The stakes are raised further still when David notes that this issue isn’t limited to a particular industry but instead extends to every sector of the economy from aerospace to healthcare.
By consistently raising the stakes David paints a picture of U.S. economic vulnerability mired in conflict with China.
A lot of the precursor required ingredients are increasingly coming from China because it’s easier to manufacture there. It’s easier to refine there. - David Ulevitch
Audiences yearn for conflict resolution. David provides this by noting that his VC efforts aims to address U.S. supply chain vulnerability by investing in software companies that improving mining and mineral extraction, chemical companies and explosive manufacturers.
This also creates sense of intrigue by revealing how deep the conflict between the U.S. and China runs.
Key Factors Making These Stories Compelling
Rich Character and Relatability: Stories focus on influential personalities, from engineers to founders, making successes and failures feel tangible
Narrative Arc and Tension: Each tale is structured with conflict and resolution that keep the listener engaged and invested
Reflective Wisdom and Lessons: David offers actionable insights and analogies, encouraging listeners to apply and adapt to changing circumstances
Human element: David’s people centric approach creates a sense of inclusion; after all everyone has an idea for a killer product
David’s stories interweave authenticity, risk, and vision which challenge assumptions about careers, innovation, and society.
For more from David, follow him on Linkedin.