M. Andrew McConnell - Get Out of My Head

As a world-class distance swimmer turned successful entrepreneur, Andrew McConnell knows what it takes to keep your cool under pressure. As an author, he knows how to get you fired up about Stoic wisdom. Thanks to his engaging stories and practical advice, you wont have any trouble getting out of your head and into this book.

Adam Grant, #1 New York Times bestselling author of Think Again and host of the TED podcast WorkLife

Get Out of My Head offers an authentic solution for those struggling to cut through the din of overly busy modern lives and accomplish more.

Dr. Bernice A. King, CEO of the Martin Luther King Jr. Center for Nonviolent Social Change

Get Out of My Head will help you overcome stress and let you feel in control of your mind. If you follow the ideas in this book, your life will become substantially better. A fantastic read that will make you more focused and productiveI highly recommend it.

Chris Bailey, international bestselling author of Hyperfocus and The Productivity Project

This book is designed to provide accurate and authoritative information about Stoicism and business. Neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services by publishing this book. If any such assistance is required, the services of a qualified financial professional should be sought. The author and publisher will not be responsible for any liability, loss, or risk incurred as a result of the use and application of any information contained in this book.

Get Out of My Head copyright 2022 by Andrew McConnell

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission of the publisher, except in the case of brief quotations embodied in critical articles or reviews.

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First E-Book Edition: June 2022

Library of Congress Control Number: 2021057344

ISBN 9781637740750 (trade cloth)

ISBN 9781637740767 (electronic)

Editing by Rachel Phares

Copyediting by Jennifer Brett Greenstein

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To the Llama and my Sweet Pea. You inspire me every day to work to become the person you already believe me to be.

O n a brisk October day in 2009, David Cummings, an Atlanta software entrepreneur, made the fabled pilgrimage to the heart of Silicon Valley. In the tech world, Sand Hill Road is the Mount Olympus of venture investing, and the man David and his cofounder, Adam Blitzer, were there to meet was Zeus.

David and Adam arrived at Bill Gurleys office at the venture capital firm Benchmark with the hope of securing funding for their software company. Bill was an imposing figure, both as a titan in the VC world and by virtue of his sheer size: a former basketball player at the University of Florida, he stood six feet and nine inches tall. Bill stepped into the conference room and introduced himself to his guests, towering over the slender software entrepreneurs, their concave shoulders a product of countless hours spent in front of their computer screens. Once the awkward pleasantries were out of the way, the three men sat down around a mahogany table, as sturdy and imposing as Bill Gurleys handshake.

David had woken up that morning feeling good about the pitch; he knew he had a compelling story to tell. He was a serial entrepreneur with a number of revenue-generating companies under his belt. His latest venture, and the reason he and his business partner had come to Silicon Valley, was a software company called Pardot that was bringing in more than $1 million a year in revenue, having quadrupled in size over the past year alone. Even better, Pardot had managed this without raising a single dollar of outside money. But for all of his confidence upon entering the meeting, now that he was there, in the large conference room across from an imposing venture capitalist, David could not shake the nervousness that came with feeling like he did not belong. This was Davids state of mind as he dove into his presentation, hoping the trembling of his hands and voice was not apparent to Bill Gurley.

When the pitch was finally over, David waited expectantly for Bills response, praying for the validationand the investmenthe had come all this way for. The venture capitalist remained silent, taking a sip from an espresso cup that looked like a childs teacup in his enormous hands. Davids heart was racing and the sound of blood rushing in his ears was so loud that when Bill finally spoke, David had to read his lips to understand what he was saying.

Are yall sure you want to raise money? After a beat, Bills thick Texan drawl came through to Davids senses.

The answer to Bills question seemed so obvious. Of course, David wanted funding. He was here, wasnt he? David sat silently. His confusion must have registered, because Bill Gurley proceeded to break down the question with actual numbers. Unfolding a napkin on the table and grabbing a pen, Bill held court.

He went on, Pardot grew by four times last year and thinks it will grow another three times next year, and another three times the year after that. Now, Pardot cant keep that up forever... so lets assume it slows down to doubling the year after that, and then growing 50 percent the year after that. At Pardots current margin, and the multiples such a business is likely to attract, Pardot should be able to sell for $50 million. And if you do that without raising any outside money, you wont have to share the proceeds with anyone.

The entrepreneurs nodded, not wanting to interrupt this master class in venture math. Bill continued, On the other hand, lets assume Pardot goes down the path of raising venture capital. Once Pardot is on that treadmill, it is almost impossible to get off. In each round of financing, Pardot will have to sell 20 to 30 percent of its business. Every round is geared toward getting Pardot to the next round faster, thus accelerating how soon it will again have to sell an additional chunk of itself. Yes, the eventual exit value of the company might be bigger, but the founders take is likely to be much lower. And you are going to start losing control of the company you founded the day you take that first outside money. Is that really what you want?

Bills question stupefied the entrepreneurs.

This was not what David or his cofounder wanted at all: that much was now obvious, written in black ink on the white paper napkin in front of them. In a daze, the entrepreneurs thanked Bill for his time, surrendered their hands once more to be engulfed by his, and walked out of the office, leaving Bill Gurley, Benchmark, and Sand Hill Road in all their majesty behind them.