Posts in Entrepreneurial Ecosystems

When Confirmation Bias Shapes Your Knowledge

How many people think Tulipmania was one of the first recorded behavioral economics financial disasters? Here is a quote from the crowd sourced Wikipedia page on the event. Tulip mania (Dutch: tulpenmanie) was a period in the Dutch Golden Age …

Thought This Talk Was Interesting

I write this from the left coast.  I am spending some time out here to get away from the Chicago winter and to meet people.  I also do it to get out of my Chicago bubble.  I spent a short …

Do Your Homework

If you want to be successful, you have to put in the time.  Nothing worthwhile comes easy.   This is the same across all occupations and endeavors.  When I talk to millennials a lot of the time I hear, “That’s …

CME’s Speed

You might have seen this article in the WSJ yesterday about how trades are confirmed by CME.  Some traders get confirmation before the rest of the market.  They are able to exploit that information advantage to create a profit for …

Betting On Same Horse, Different Race

One of the tough things about being a fund is you only get a limited number of investments.  Of those, you get to pick one in any particular race.  If you invest in one insurance startup, that investment ought to …

Getting Out of Bubbles

One good thing about getting out of Chicago once in awhile is I get out of routine and the bubble.  I grew up in the western suburbs of Chicago.  I worked and lived downtown.  I am a Chicagoan (minus the …

The Darker The Market The More It Needs Sunlight

There are a lot of nooks and crannies in capital markets.  Exchanges only trade the big ones.  I think it’s important to note that matching trades is super simple.  You can go out and buy a crude automated trading system …

Trade From Twitter

Kind of a cool idea that TD Ameritrade rolled out today. You will be able to initiate trades from Twitter.  Hey, maybe soon you will be able to do it with Alexa and Snapchat. TD already has that sort of …

YCharts Partners With Dynasty

If you read my post about the stock market NOT melting down yesterday, you saw a lot of charts incorporated into the post. I get those from Ycharts.  Today, Ycharts announced a partnership with Dynasty Financial Partners.  They have more …

Is This A Market Melt Down?

Short answer if you don’t want to read the rest of this is, no this is not a meltdown.  It’s not a correction either.  For newbies, meltdowns look like this.  If you believe this is a market meltdown, then perhaps …

The Hard Thing About Small Funds

One of the most difficult things about being in a small fund is how much capital to allocate to an investment.  Many funds put the exact same amount in each deal.  That doesn’t seem right to me because the valuations …

Truss Launches in Washington DC

A company I angel invested in Truss.co has expanded to Washington DC.  Truss started in Chicago.  It uses artificial intelligence to find office space for clients. They developed a chatbot, Vera, that clients can interact with to find the best …

Risks For Audit Are Too High

Ernst and Young did some research on the crypto world.  They analyzed more than 372 ICOs, and found that $400 million of the total $3.7 billion funds raised to date had been stolen by hackers.  How’d the hackers do it? …

Still Struggling With ICO Accounting

There is precious little information on ICO accounting out there.  I blogged about it recently here.  It is a big issue.  Tax consequences can be huge.  The cleanest path to an ICO is not to make the token that is …

Basic Economics and Basic Business

One of my favorite lines is from Professor Paul Magelli.  He said, “If you don’t make a profit, it’s not a business it’s a hobby.”  Another friend, Jeff Minch, who writes at The Musings of The Big Red Car will …

Bitcoin Value Drops But It Doesn’t Matter

Bitcoin futures at the CBOE are trading just above $10,000.  I think they will trade below $5000 and probably settle below there by the end of the year.  Futures markets have a way of disciplining cash markets.  If they add options …