Why Did I Invest In Pose?

What a sweet feeling it was last week to see the launch of the photo sharing site Pose, whose application targets shoppers of apparel.  If you don’t know it and own an iPhone (soon Android) please check it out.

What I’d like to do is tell you the story of how the investment came to be, what my thesis is / was and share some thoughts on macro trends.

I always try hard to make this blog a place where you can learn lessons rather than an advertisement for portfolio companies.  I hope you’ll excuse me when I do the latter in combination with the former to try and explain how I see macro trends and help you think about the mind of a VC.

The Team – I’m on record as saying that 70% of my investment criteria are team related.  I’m also on record as saying I invest in lines and not dots.  If you haven’t read the post the thesis was that I care way more about watching the trajectory of your performance as a team (or individual) than I do about how good you “pitch” on the first day you come to see me.

Pose is no different.  I first met the founder of Pose, Dustin Rosen, when he was a junior person with an LA-based venture capital firm called The Mail Room Fund.  The MRF was a committed fund of Accel, Venrock, ATandT and William Morris (one of LA’s largest talent agencies).

Dustin was junior but I’m not hierarchic so we spent a bunch of time together.  I learned that he was originally with William Morris as a junior talent rep but wanted to be more in the business of helping digital startups.  The guys who ran the MRF – Richard Wolpert and Paul Bricault – are guys I hugely respect so anybody that they chose as part of their team already had a degree of “social proof” that they were smart, disciplined and achievement oriented.

I later learned that Dustin was an undergrad from Wharton.  My wife is an MBA from Wharton and she always tells me that “the really smart people are the Wharton undergrads” so I had a positive bias going in.

Despite working for one of the top 2 talent agencies in LA, despite having had VC experience, Dustin chose another route.  He wanted to be an entrepreneur.  He quit the MRF and quietly amassed nearly $100,000 in angel investment to build a company.  The people who invested were all the people who knew Dustin the best – obviously a positive “signal.”

Still, I didn’t chase the deal.  I registered it in my background consciousness.  Great guy, I wonder WTF he’s up to?

He waited to pitch me until he had a strong sense of what he wanted to build.  He researched his market, he thought hard about how he thought it might ultimately monetise, he built a prototype and he created a very compelling vision for where he thought his market would head.

The Deal – I instantly loved the idea for the application, the market and Dustin’s vision.  I will describe this in a moment.  I asked him to present to my partners.  They loved his vision, too.  Our firm invested at a very early stage in retail brands including CostCo, Dick’s Sporting Goods, Ulta, Starbucks and many more.  I point this out because they instantly got why Pose resonated with both consumers AND the retailers.

Boom.  Within 48 hours of meeting him we had a term sheet agreeing to fund $1.6 million (his seed / A round money) and a commitment to take the entire round.

I have a philosophy that my goal is to maximise the potential for success in a company rather than maximise my individual ownership in any single deal.  So while I was ready to take the entire investment I was also willing to share.  I contacted some of my favourite VCs and told them I was willing to fund the entire round but also willing to split it.  I gave them my thesis on the team and market but also told them it was obviously up to them to decide whether they were equally passionate.

My first two calls were to True Ventures and Founder Collective.  When I was an entrepreneur I had a term sheet with True Ventures (my second company) and thought highly of them.  I still do.  I wanted a smart NorCal investor who had done more mobile investments than I had and Jon Callaghan had very relevant relationships and experience.

Jon also loved the idea, the market and Dustin.  The other “first call” went to Founder Collective.  I had spent a great deal of time talking with Eric Paley, one of the founders, as he and I share a common philosophy on company building (we’re both ex founders).  I figured it would be a great outcome if we could get both East Coast money and somebody who viewed startups and the world in a similar way that I did.

I also have tremendous respect for Chris Dixon who is part of Founder Collective.  And despite an occasional debate about whether one should take “super angel” or VC money for an early stage deal (usually said both in jest and in intentional competitive positioning) – I would gladly have Chris involved in anything I’m working on.  In his blog posts and our in-person debates I find myself thinking 98% of the time – I agree with him or he’s got a more insightful perspective on this topic than I do.

I have other VCs that I love to work with but through a combination of desired geography, no known competitive investments and also Dustin’s preferences we settled on these two.

While my investment decision was committed and independent of their decision making – I was delighted to learn that they were both interested as well.  If they said “no” I would have owned a larger stake, but with them saying “yes” I knew I had people that I greatly respected around the table who would help in the inevitable times where we’ll hit bumps in the road.

The Market – OK, enough of your blah, blah, blah about team / co-investor love fest – what really jazzed you up about this opportunity?

I’ve long been a believer in technology that “captures” new media types: photos and video.  I am on record as saying that my opinion is that Web 2.0 was driven largely by the massively reduced cost of media capture through mobile phones with cameras, the Flip Video, the rise of digital SLRs and now the capture of videos through mobile devices.

I said as much in my post about The Future of Social Networking

  • “And importantly Web 2.0 ushered in the era of “participation” – we all know that.  But less considered is the fact that the success of the Web 2.0 companies versus the Web 1.0 ones were enhanced because they coincided with hardware that allowed us to capture more content instantly – namely images and video – otherwide Web 2.0 might have been a lot less differentiated.  Suddenly we were all creating blogs on Blogger.com, Typepad


  • WordPress.  We started uploading images of ourselves to our blogs.


But the masses didn’t want to blog.  They wanted to publish pictures of themselves and their friends, share them, communicate with others, stay connected, have common experiences, find people to date, etc.”

And they still do.  And the devices for capturing images are getting easier and more powerful.  The applications for uploading and sharing the photos are obviously more viral and visually compelling.  I think we’re in the second inning of photo and video capture.  Let’s be honest – the majority of images are still snapped and left stranded on mobile devices.

I recently sat on a panel at a Qualcomm VC day with Rich Wong–  who I consider one of the best thinkers in VC about the mobile sector – and Jeff Clavier,  a friend and VC whose opinion I also great respect.  We were asked about what areas of innovation in mobile interested us.  I laid out my vision for image capture and sharing.

Jeff was obsessed with Instagram at that time as nearly every Silicon Valley VC seemed to be (and still is). Rich shared common views that the explosion in media creation will only continue to accelerate.  I wanted to shout out loud that we had been working on Pose for the past 9 months but, oh, stealthy CEO’s.  Gotta respect their wishes

I know this all sounds kind of obvious.  But let me say that when I invested in Pose there was no such thing as Instagram – at least not as a live product.  There was no live product called Path.  We clearly knew that Dave Morin was working on Path because he chose to invest in Pose also!

Here’s the deal.  Most of us want to share information with our friends and our colleagues.  We also want to discover what our friends, colleagues and people we respect are saying.  That’s why companies like Twitter have been so successful.  The things we share come in the format of text, images and video.

I’ve always  been interested in what people want to share and why.  And I’m a big believer in vertical use cases (in additional to more generalized platforms for sharing content).   Shopping for apparel (and other items like furniture) is an obvious use case the appeals to a large market segment.

Instagram has broad appeal and I can see why people love it.  But I also believe that while they can be a broad sharing platform there won’t be one photo sharing app for every occasion.  That’s dumb.  At Pose we have a very solid use case around people wanting to use Pose to take pictures of what they want or what they bought.  We’re very much a “mobile first, web second” app as outlined by Fred Wilson.

I don’t want to give away all of our future strategy but imagine a world in which the system and your friends know what you have and what you want.  Imagine  a world in which the system knows what items go well with what you bought or what looks good on you.  Imagine a world in which you could look at whether retailers have other colours, sizes or similar outfits.  Imagine if you could tag items and ask to be notified when they go on sale.

What if you could instantly poll your friends on whether you look fat in an outfit.  Or whether a colour palette goes with your skin.  Or whether this end chair would go well in your living room.

And imagine more broadly – your clothing, furniture and other accessories in a private, semi-private or public closet.    Imagine not only your own clothes but being able to discover what other people are wearing, what other people think is hot, how other people have accessorized their outfits.

The Future

Who knows.  We’re in the awesome romance stage of having shipped a beautiful product with our typical minimum feature set and learning how people actually want to use it rather than our hypotheses.  I know we will be retailer friendly rather than becoming the lost-common-denominator comparison shopping engine.  We believe there is so much value in helping consumers with discovery, sharing, the feedback loop, recommendations, inventory management and much more.

But right now I’m just super proud to see what Dustin and his team have created and to watch where it goes.


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