Arnold Schwarzenegger and Ann Miura-Ko — The Tim Ferriss Show

🦸‍♂️ "Arnold says: 'Vision is everything. See it clearly, achieve it confidently!' 💪🏆

Transitioning to the main content of the episode, hello boys and girls, ladies and germs. My job is to sit down with world-class performers from every field imaginable to tease out the habits, routines, favorite books, and more that you can apply and test in your own lives. The podcast recently hit its 10th-year anniversary, which is insane to think about, and passed 1 billion downloads. I’ve curated some of the best of the best, some of my favorites from more than 700 episodes over the last decade. Internally, we've been calling these the super combo episodes.

Discussing Arnold's mindset, he says, "My confidence came from my vision. If you have a very clear vision of where you want to go, then the rest of it is much easier. I see myself clearly on that stage winning Mr. Universe. It took for me to get on that train, the people's train. I wasn't there to compete; I was there to win. I always felt during the pose-off that I had my act together much more than the others did. I'm going to make them feel inferior, and I will win. I will look facially and physically to the judges that I'm the Champion."

🧠 "Arnold's secret weapon? Psychological tactics! Get in their heads, and you'll always have the edge." 🥇🗣️

Transitioning to Arnold's deeper thoughts, he shared, "I always felt that people are kind of really vulnerable in certain areas... I always felt during the pose-off that I had my act together much more than the others did... I'm going to make them feel inferior and I will win."

Shifting to psychological tactics, he mentioned, “I said, well, because your thighs look a little slimmer to me... so but I mean this is, you know, people are vulnerable about those things... so naturally when you now have a competition, you use all this.”

"Use the best posing routine, just really give me a 10 of everything, then you have a shot of winning... psychology was definitely part of that."

Transitioning to his movie career, Arnold said, “I never auditioned... I have to get into the movie business like Reg Park did or like Steve Reeves... they said, well, you know, this time has passed; this was 20 years ago. You look too big, too monstrous, too muscular.”

However, his unique look eventually became an asset: "When people saw me on talk shows, they got inspired—directors like John Milius... I got the contract for Conan the Barbarian, and bang, there we were, a $20 million movie."

Reflecting on his financial independence, Arnold stated, “I did not rely on my movie career to make a living because that was my intention... because I saw over the years the people that worked out in the gym and that I had met in acting classes, they all were very vulnerable because they didn't have any money.”

💪 "Arnold's unbreakable strategy: Build a body, build an empire! 🏋️‍♂️🏡

Reflecting further on his role in the movie industry, Arnold shared a fascinating insight: "John Milius, a first-class director, directing it... even John Milius after he has done the movie he said if we wouldn't have had [Schwarzenegger], we would have had to build one because of the body." This highlighted how crucial his physicality was for the role. He continued, "When I did Terminator, Jim Cameron said if we wouldn't have had Schwarzenegger and we couldn't have done the movie because only because he sounded like a machine was it so believable that he actually played the machine." This uniqueness created iconic moments like, "when he says I'll be back it's totally different."

Transitioning to his career strategy, Arnold explained, "I did not rely on my movie career to make a living because that was my intention." He elaborated, "take my little money that I make in bodybuilding and with seminars and selling my courses through the mail order and ERS I could save up enough money to put down money for an apartment building." Interestingly, he reflected on the high inflation of the 70s, noting, "the inflation rate was very high and therefore an investment like that is like unbeatable... buildings that you I would buy for $500,000 you know within the year were $800,000 and I only put them maybe a 100 down."

As his real estate ventures boomed, making him a millionaire, he stated, "after Conan the Barbarian in 1982... my career took off because people saw... the movie was successful at the box office." This success led to more roles: "I signed a contract to do Conan number two... that led to a contract for Terminator one and then Commander."

Arnold then highlighted the booming action genre of the 80s: "the action Sher that all of a sudden took off in the 80s with Stallone and fundam and all those guys coming in really was terrific... mine I got like a million dollars for terminated too and then all of a sudden by the end of the decade I made $20 million."

On the topic of his mail-order business, Arnold revealed, "the Franco Columbo who for those that don't know is a European was a European champion in powerlifting and also a boxing champion and then became a bodybuilding champion." They cleverly marketed their brick-laying business by "putting an ad in the LA Times creating a company and calling it Europe in Brick Layers and masonry experts marble experts building Chimneys in fireplaces the European style." This European branding was effective because "everything that was European was huge in America."

A major break for their business came from a natural disaster: "a week later we had the big earthquake in Los Angeles and I mean the chimneys fell off the apartment houses and all this stuff and it cracked walls and all this." Describing their unique negotiation tactics, Arnold said, "I would say yes and then I would run around with the tape measure but there would be a tap measure with centimeters... and no one in those days could at all figure out anything with centimeters... I was kind of like set up to be the math genius and that figures out the square footage and that Franco would play the bad guy and I play the good guy."

Reflecting on this period, he added, "we worked like that for two years I mean very successful."

Finally, Arnold transitioned to his desire to explore comedy: "I felt very strongly that I had a side of me that is a very humorous side... I should really talk to Ivan Reitman because I really loved Ghostbusters."

🎬 "Arnold's secret to comedy gold? Think opposite! 😂👯‍♂️

Arnold Schwarzenegger's Film Career and Meditation Practices

On the inception of "Twins":

"Twins came together because I felt very strongly that I had a side of me that is a very humorous side and that if someone would be patient enough and willing to work with me as a director... they will be able to bring that humor out of me... I should really talk to Ivan Reitman because I really loved Ghostbusters... I said I want you to work with me and to direct me in a movie."

Deciding on the concept and title:

"He developed immediately within a short period of time a bunch of ideas... and the one that we both liked the most was called The Experiment which then became Twins... We didn't like [The Experiment] because of my German Austrian background so we thought that it would be better to call it Twins."

Choosing Danny DeVito as a co-star:

"I came up with the idea then of Danny DeVito that it shouldn't be just someone that is acting totally opposite of the way I am but they should also look physically totally opposite of the way I am."

Structuring the deal:

"We made a deal on a napkin and wrote down, you know, this is what we do, we're going to make the movie for free, we don't want to get any salaries and we get a big back end... Tom Pollock said this is great we can make this movie for $6 or $6.5 million dollars if you guys don't take a salary and you get a big back end."

Success of the movie:

"It just went up to $129 million domestically and I think worldwide it was like $260 million or something like that."

On meditation practices:

"I don't meditate now but I got heavily into it in the '70s... I felt like everything is just kind of coming together and I did not find a way or couldn't find a way of keeping the things separate."

Discovering Transcendental Meditation:

"I ran into this guy... who told me that he is a teacher in Transcendental Meditation... I was much more calm about all of the challenges that were facing me and I continued doing that then for a year and by that time I felt like I think that I've mastered this."

Applying meditation principles today:

"I take on one challenge at the time and when I go and I study my script for a movie then that day when I study my script for the movie I don't let anything else interfere in that."

Workout as a form of meditation:

"I also figured out that I could use my workouts as a form of meditation because I concentrate so much on the muscle and I have my mind inside the bicep when I do my curls... it's like again a form of meditation."

🧘‍♂️ "Meditation isn't just sitting still; it's focusing deeply, even during workouts! 💪🧠

Arnold Schwarzenegger's Meditation Practices and Productivity

"I don't feel overwhelmed anymore and I really felt it was one of those things where Transcendental Meditation was kind of anxiety and pressure meeting around the corner, tranquility. So, I was happy from that point and even today, I still benefit from that because I don't merge and bring things together and see everything as one big problem. I take on one challenge at a time and when I go and study my script for a movie, I don't let anything else interfere with that. I just concentrate on that."

Transitioning to different forms of meditation, Arnold elaborated, "I've learned that there are many forms of meditation in a way. When I study and work really hard where it takes the ultimate amount of concentration, I can only do it for 45 minutes, maybe an hour, then I have to kind of run off and maybe play jazz. I play jazz for 15 minutes, then I can go back and have all the energy in the world again and jump right back and continue with my work as if I've not done it at all the day right. It's like I'm fresh. And so that's another way I think of meditation."

On using workouts as a form of meditation, he said, "I also figured out that I could use my workouts as a form of meditation because I concentrate so much on the muscle and I have my mind inside the bicep when I do my curls. I have my mind inside the pectoral muscles when I do my bench press. So, I'm really inside, and it's like again a form of meditation because you have no chance of thinking or concentrating on anything else at that time but just that training that you do."

Reflecting on the benefits, Arnold shared, "There are many ways of meditation and I benefit from all of those. I'm today much calmer because of that and much more organized and much more tranquil because of that. This whole conversation makes me want to go tackle the world."

A brief sponsor message followed, "Just a quick thanks to one of our sponsors, and we'll be right back to the show. This episode is brought to you by AG1, the daily foundational nutritional supplement that supports whole body health. AG1 gives you support for the brain, gut, and immune system. So take ownership of your health and try AG1 today."

Transitioning to the next guest, the host introduced, "And now, An Miro, co-founding partner at Floodgate Venture Capital firm, a repeat member of both the Forbes Midas list and the New York Times top 20 Venture capitalists worldwide, one of Forbes' most powerful women in startups, and a Stanford lecturer and member of the Board of Trustees of Yale University. Welcome to the show."

Introducing her background story, An Miro began, "I had this brother, an older brother by exactly two years. He was always confident with friends and he was also confident on stage. I played the piano, he played the violin, and we would always have to perform. I was painfully, painfully shy. My mother, knowing this, wouldn't let this get in the way of our performing. She would send my brother up on stage to help announce whatever I was playing. I remember thinking to myself, 'This is totally ridiculous,' because I'm sitting there in front of a room full of people. I felt fine playing the piano, but I felt petrified speaking."

Reflecting on her introverted nature, An continued, "I've always been an introvert. I was a strange child. I had a lot of different interests, but I loved to do things by myself. I wasn't really that interested in talking to other people. I used to be this very hostile little child and I would walk by anyone speaking in English and in Japanese, I would say, 'I wish you would leave.' I can't even...my poor mom."

Discussing early learning experiences, An shared, "We had this summer school program. My mom said you have to pick two classes. One class was a math class, obviously, and she said you could pick your second class. And I picked a negotiations class. It was an adult class. I picked it because I remember the book was 'Getting to Yes.' I said it's because they're teaching you how to get to yes, and I want to know how to get to yes."

Transitioning to overcoming fears, she reflected, "I felt okay speaking up, but then on stage, I didn't still. It was sort of these small steps that felt like I was getting closer and closer to realizing I need to actually be able to speak up. I decided to dive into speech and debate. It was a really great way to get to know other kids from other schools but in a pretty structured environment where I felt comfortable. It was kind of a slow process, though, and I would say I was still pretty scared for most of high school, but by the time I got to the end of it, I felt like I had made a lot of progress."

🎤 "Fell in love with debate - proving even high schoolers can tackle big issues! 📚🔥

An Miro's Journey in High School Speech and Debate

"I get to high school and, as every High School freshman does, I was looking for different activities to participate in. I decided to dive into speech and debate. I just fell in love with the idea that you could seriously get up in front of an audience and talk about really important issues, even as a high school student," she shared with a sense of nostalgia.

Reflecting on her early challenges and motivations, An noted, "The first thing is just the people. I found that the actual activity itself challenged me in a way that I hadn't been challenged before. But the piece that I did love, that came very naturally, was competition."

An even recalled a memorable and somewhat controversial moment from her debating days, saying, "Oh yeah, I feel like I'm not succeeding in my desire to humanize myself and make myself seem less of a dragon lady. There were points in time where I remember people would cry; they would crumble in the middle of cross-examination and run out of the room crying. And there were moments where they had courtesy points too, so it wasn't just about winning, it was also whether you were courteous during that. I remember at least four or five occasions where someone cried and left the room before the round was over."

Transitioning to how she turned her debating record around, she described her dedication, "This is where I think it's the Love of the Game. I said to them, 'Point taken, give me the summer and I'm going to just work on it.' I just studied those topics; I lived in the library. Then I emerged that year to start competing. I had this distinct impression walking into my very first round of debate that fall and feeling, as I looked across at my opponent, that there was no way they could have out-prepared me. And it was like that; it just never stopped after that."

Summing up the main difference that led to her success, An stated, "The main difference was that I was willing to outwork and outdo every competitor who walked in through that door."

Describing the debate competition format, she added, "It's a bunch of nerdy kids dressed in suits, holding briefcases, and maybe that's changed, but that's what it was back then. Then you have a resolution that's been announced."

An Miro's journey from a shy, introverted child to a confident debater underscores the transformative power of perseverance and passion.

💡 "Hard work beats luck - you make your own success! 🌟💪

An Miro's Journey in High School Speech and Debate

"I get to high school and, as every High School freshman does, I was looking for different activities to participate in. I decided to dive into speech and debate. I just fell in love with the idea that you could seriously get up in front of an audience and talk about really important issues, even as a high school student," she shared with a sense of nostalgia.

Reflecting on her early challenges and motivations, An noted, "The first thing is just the people. I found that the actual activity itself challenged me in a way that I hadn't been challenged before. But the piece that I did love, that came very naturally, was competition."

An even recalled a memorable and somewhat controversial moment from her debating days, saying, "Oh yeah, I feel like I'm not succeeding in my desire to humanize myself and make myself seem less of a dragon lady. There were points in time where I remember people would cry; they would crumble in the middle of cross-examination and run out of the room crying. And there were moments where they had courtesy points too, so it wasn't just about winning, it was also whether you were courteous during that. I remember at least four or five occasions where someone cried and left the room before the round was over."

Transitioning to how she turned her debating record around, she described her dedication, "This is where I think it's the Love of the Game. I said to them, 'Point taken, give me the summer and I'm going to just work on it.' I just studied those topics; I lived in the library. Then I emerged that year to start competing. I had this distinct impression walking into my very first round of debate that fall and feeling, as I looked across at my opponent, that there was no way they could have out-prepared me. And it was like that; it just never stopped after that."

Summing up the main difference that led to her success, An stated, "The main difference was that I was willing to outwork and outdo every competitor who walked in through that door."

Describing the debate competition format, she added, "It's a bunch of nerdy kids dressed in suits, holding briefcases, and maybe that's changed, but that's what it was back then. Then you have a resolution that's been announced."

An Miro's journey from a shy, introverted child to a confident debater underscores the transformative power of perseverance and passion.

The Turning Point and Mastery of Debate

"They announced that first topic I knew... I had already done this research and I remember going into my very, very first round... I had this distinct impression walking into my very first round of debate that fall and feeling as I looked across at my opponent that there was no way that they could have out-prepared me... I knew that whatever they said I would have five arguments against and it was this incredible knowledge that it's not that you can be lucky and turn your luck around; you actually make your own luck."

Reflecting on the turning point in her debate career, she continued, "I placed in that tournament and I placed in the next tournament and it was like that, it just never stopped after that... I had a losing record all through my freshman and sophomore year and it's like I turned it around junior year very suddenly. The main difference was that I was willing to outwork and outdo every competitor who walked in through that door."

Describing the Lincoln-Douglas debate format, An explained, "It's one person against one person so it's individual and it's value-based and so you're really debating philosophy... you have to have cases ready for both the affirmative and the negative... the affirmative goes up and talks about this resolution and says all the reasons that they support it and then there's a short cross-examination... then the negative gets up and talks about all the reasons that they're against the resolution and then goes point by point against all of the arguments that the affirmative made... then the affirmative gets up for a rebuttal, the negative gets up for a rebuttal, and then the affirmative does closing arguments that's sort of shorter and shorter speeches towards the end."

Regarding the judgment criteria for debates, she noted, "You only have two debaters that you're judging and you vote for one of them... in the breakout rounds, the semifinals, you might have a panel of judges... they're just sort of voting individually on who wins."

For those looking to improve their debating skills, she recommended, "Getting to Yes I thought was always really good... I actually found the philosophical texts to be extraordinarily informative... anything where you have that Socratic method in a book I found really a great way of learning how people debate... the greatest philosophers, Aristotle and Socrates... even you know when you get into more modern literature around Justice... you have people like John RS writing that is actually a dialogue and a real logical debate."

On how to engage in the process of debate, An advised, "How do you engage in the idea, how do you read and research both sides of an argument and what do you believe on both sides... one way to do that would actually be to take a fairly controversial topic and then actually read a lot of literature on both sides of the argument and then understand where actually the conflict happens."

Concluding with a personal note, she shared her husband's advice, "My husband has said to me in the past... life is not a debate."

💡 "Hard work beats luck - you make your own success! 🌟💪

The Importance of Empathy and Outcomes in Debate and Life

"Life is not a debate... life isn't about winning the argument and... it's not about being right," I reflected, drawing from personal experiences and learned wisdom. "People have a tendency to have an inner dialogue where they're right and instead of really listening to the other person, they're coming up with the next argument that proves that person wrong. By developing true empathy for the other side, you actually create bridges, you create commonality, and you create situations where you can actually work together."

I emphasized the importance of focusing on outcomes over simply winning arguments, referencing key negotiation literature: "The book you mentioned, Getting to Yes, which is part or byproduct of the Harvard Negotiation Project, is all about achieving a very particular outcome or arriving at a desired result, as opposed to just proving that you're right."

Reflecting on personal life lessons imparted by my father, I shared, "He would always push me, he would always say, 'Is this really the best that a 5-year-old could ever do?' It was a constant message. I remember standing in front of this photocopy machine with a stack of papers, thinking to myself, 'What is world-class in this situation?' and I decided it was really crisp copies where you couldn't tell that it was a photocopy."

These reflections underscored the transformative power of empathy and the drive for excellence, shaping both my debate career and personal growth.

💡 "Turn every tiny task into a masterpiece! ✨🖨️

The Importance of Empathy and Outcomes in Debate and Life

"Life is not a debate... life isn't about winning the argument and... it's not about being right," I reflected, drawing from personal experiences and learned wisdom. "People have a tendency to have an inner dialogue where they're right and instead of really listening to the other person, they're coming up with the next argument that proves that person wrong. By developing true empathy for the other side, you actually create bridges, you create commonality, and you create situations where you can actually work together."

I emphasized the importance of focusing on outcomes over simply winning arguments, referencing key negotiation literature: "The book you mentioned, Getting to Yes, which is part or byproduct of the Harvard Negotiation Project, is all about achieving a very particular outcome or arriving at a desired result, as opposed to just proving that you're right."

Reflecting on personal life lessons imparted by my father, I shared, "He would always push me, he would always say, 'Is this really the best that a 5-year-old could ever do?' It was a constant message. I remember standing in front of this photocopy machine with a stack of papers, thinking to myself, 'What is world-class in this situation?' and I decided it was really crisp copies where you couldn't tell that it was a photocopy."

These reflections underscored the transformative power of empathy and the drive for excellence, shaping both my debate career and personal growth. Would be writing something and if the handwriting wasn't neat enough he would say, 'Is this world class?'...he would always push, he would always say, 'Is this really...the best that a 5-year-old could ever do?'...I had a moment where...my financial aid package included...10 hours of work-study and I had the opportunity to work in the office of the dean of engineering...I called my parents...my dad said, 'Make sure you do a world-class job.'...I said to my dad, 'I'm photocopying and I'm filing, there's no such thing as world class there.'...He said, 'Well, I'd still think about it.'

I get to the office and...I remember standing in front of this photocopy machine...thinking to myself, 'What is world class in this situation?'...I decided it was really crisp copies where you couldn't tell that it was a photocopy...I spent a lot of time on the details...every step of the way it was, 'What can I do to make this experience...a delight moment?'...It was a case of real ownership...I felt so much ownership of the job I was doing even though from the outside...most people would have thought it was just sort of a grunt job.

The story transitions to the dean of engineering, Alan Bromley.

He had no idea who I was...he barely knew my name...One day he...said, 'Who are you?' and I said, 'I'm Mera, I'm your...student assistant in this office.'...He said, 'Oh, I've heard of you. I need you to go and give this friend of mine a tour of the engineering facilities.'...I take this gentleman and...we just had a great conversation...he said, 'Hey, what are you doing for spring break?'...I said I was going to go back home...he said, 'Well, that's great because...I'm wondering if you want to come and shadow me and see what I do for a living.'...In my complete self-centered moment...I hadn't asked this guy what he did for a living...He said, 'I’m CEO of Hewlett-Packard.'

Lou Platt invites me to just shadow him...I am going around...he drove himself around in a Ford Focus...One of the days actually Bill Gates came to make an announcement about DOE with Hewlett-Packard...Lou Platt then invited the photographer to come in and actually take a picture of me talking to Lou...After the fact I get back to my dorm and Lou Platt has sent me a thank you letter...There’s two photographs...One is a picture of me...and then the second picture is Bill Gates sitting exactly in that spot that I was sitting in talking to Lou Platt.

Discussing mentorship, the speaker reflects:

He just sort of took this girl and said, 'You know what, you have something I see it, and I'm going to show you something even greater.'...I met Ann Livermore who was an executive...It’s a life-changing moment...I came back from that with my mind completely blown.

Recalling earlier experiences, the speaker says:

My first job was literally helping my uncle and grandmother sell office supplies in Kanazawa, Japan, at our store Taido...I used to man the cashier register at the office supply store so I know my pens and notebooks and stamps like nobody's business...I love the Juice Up 04...and for notebooks, it's the Nuna...any notebook that has the dot matrix on it.

These experiences shaped my work ethic and approach to opportunities, instilling a commitment to excellence and a deep appreciation for the value of mentorship.

Teach what you love and watch the magic happen! 🌟📝

Capturing the Essence of Heritage and Modern Wisdom

Living in Kanazawa, Japan, was a unique experience. It's one of the few cities in Japan that was protected by historians. During World War II, the US did not bomb it because of its historic elements. It's almost like a smaller version of Kyoto, and it boasts a historic Japanese garden called Kenrokuen. Kenrokuen is unbelievable. Summers, I would spend time just two blocks away from Kenrokuen, working at my family's office supply store. I used to man the cashier register, and I know my pens, notebooks, and stamps like nobody's business.

Speaking of stationery, do you have any favorite notebooks or pens? I certainly do! For pens, I love the Juice Up 04, and for notebooks, it's the Nuna. Any notebook with the dot matrix on it is fantastic—the paper quality is really great.

Switching gears to my office setup, I have some unique items that hold sentimental value. I have the original Lyft pink mustache that used to go on the front of the cars, which I adore. Additionally, there's a picture and a set of laser-etched metal plates given to me by the class of 2013 Mayfield Fellows group. These plates are inscribed with words like "thunder lizard," "badass," "inspiring," and "mother," which always bring a smile to my face.

Teaching at Stanford has been one of the most fulfilling aspects of my career. After completing my PhD, I realized that I loved teaching more than anything else. Stanford has given me the opportunity to teach several classes, where we cover basic concepts behind leadership and entrepreneurship. It's often the first exposure that juniors and seniors get to the startup ecosystem.

Recently, we've introduced a new class focused on what I would call "intelligent growth." My hypothesis is that, just like fake news in politics, there is something called fake growth in business. A great example of intelligent growth is Qualtrics. Ryan Smith, the CEO of Qualtrics, reached $50 million in revenue before raising a single dime of venture capital. Lyft, one of my companies, also exemplifies this kind of discipline early on.

There's even a Harvard Business case on Floodgate that you can purchase from the Harvard Business Review website. Just search for Floodgate or Qualtrics, and it will come up. We often invite people to speak about their experiences growing businesses from zero to one and then one to ten. We've had incredible guests like Michael Seibel, now a partner at Y Combinator and formerly part of Justin.tv and Socialcam, and Stephanie Schatz, who was a fearless leader on the sales side for Xamarin. These speakers share invaluable insights on making trade-offs and deciphering real growth from the superficial.

Find your unique path, not the predictable one! 🚀✨

Capturing the Essence of Heritage and Modern Wisdom

Living in Kanazawa, Japan, was a unique experience. It's one of the few cities in Japan that was protected by historians. During World War II, the US did not bomb it because of its historic elements. It's almost like a smaller version of Kyoto, and it boasts a historic Japanese garden called Kenrokuen. Kenrokuen is unbelievable. Summers, I would spend time just two blocks away from Kenrokuen, working at my family's office supply store. I used to man the cashier register, and I know my pens, notebooks, and stamps like nobody's business.

Speaking of stationery, do you have any favorite notebooks or pens? I certainly do! For pens, I love the Juice Up 04, and for notebooks, it's the Nuna. Any notebook with the dot matrix on it is fantastic—the paper quality is really great.

Switching gears to my office setup, I have some unique items that hold sentimental value. I have the original Lyft pink mustache that used to go on the front of the cars, which I adore. Additionally, there's a picture and a set of laser-etched metal plates given to me by the class of 2013 Mayfield Fellows group. These plates are inscribed with words like "thunder lizard," "badass," "inspiring," and "mother," which always bring a smile to my face.

Teaching at Stanford has been one of the most fulfilling aspects of my career. After completing my PhD, I realized that I loved teaching more than anything else. Stanford has given me the opportunity to teach several classes where we cover basic concepts behind leadership and entrepreneurship. It's often the first exposure that juniors and seniors get to the startup ecosystem.

Recently, we've introduced a new class focused on what I would call "intelligent growth." My hypothesis is that, just like fake news in politics, there is something called fake growth in business. A great example of intelligent growth is Qualtrics. Ryan Smith, the CEO of Qualtrics, reached $50 million in revenue before raising a single dime of venture capital. Lyft, one of my companies, also exemplifies this kind of discipline early on.

There's even a Harvard Business case on Floodgate that you can purchase from the Harvard Business Review website. Just search for Floodgate or Qualtrics, and it will come up. We often invite people to speak about their experiences growing businesses from zero to one and then one to ten. We've had incredible guests like Michael Seibel, now a partner at Y Combinator and formerly part of Justin.tv and Socialcam, and Stephanie Schatz, who was a fearless leader on the sales side for Xamarin. These speakers share invaluable insights on making trade-offs and deciphering real growth from the superficial.

People like Michael Seibel, who is now a partner at Y Combinator but also was part of Justin.tv and Socialcam, and Stephanie Schatz, who was the fearless leader on the sales side for Yammer, have brought diverse perspectives to our discussions. We have a lot of different types of people, whether they're CEOs, CROs, or venture investors, coming in to talk about the kinds of trade-offs they had to make and how they decipher growth to ensure it's genuine and not just purchased.

One crucial aspect of growth metrics that we emphasize is the potential for inflating or manufacturing numbers with paid acquisitions to raise funding or achieve other goals. It's relatively easy to spot once you know the symptoms, and understanding these nuances is key to fostering real growth.

Reflecting on my career aspirations, it’s funny to think about how they’ve evolved. When I was four, I wanted to be a farmer. Somewhere along the line, I thought I’d be a doctor. But then I realized—hey, I hate hospitals, I'm not fond of being around sick people, and I don’t love it when people are always complaining to me. That might get in the way of being a doctor.

The predictability of the medical path initially attracted me. I knew that it was a clear, structured path: you take classes, pass exams, apply to school, then move on to residency and fellowship. It felt like a really predictable thing to do. But deep down, I knew I was doing it because it seemed like a safe bet, not because it was my true calling.

I remember failing the IQ test multiple times, to the point where the school district insisted I wasn’t gifted or talented. I was one of those kids picked up in a short yellow bus and taken to a state-run program for special children. Meanwhile, I looked at Kathy, who was destined to be world-class. She loved helping people from a caretaking perspective, which wasn’t my strength.

Growing up in Palo Alto, I was exposed to a lot of startups even as a kid. I used to babysit for a serial entrepreneur who was always tinkering in his garage. I remember thinking, “Oh, he works for himself,” which I found incredibly cool. This early exposure ignited my interest in entrepreneurship and set me on a path that diverged significantly from what I had originally envisioned.

Curiosity about people fuels true connections! 🤝💡

A Journey Through Personal and Professional Growth

Growing up, a question my dad often asked me was, "Can you be world-class?" I knew I couldn't because, compared to Kathy, who was destined for greatness, I felt there was something else I could excel at. Having grown up in Palo Alto, I was actually exposed to a lot of startups as a kid. I used to babysit for a serial entrepreneur who was always tinkering around in his garage. I remember thinking, "Oh, he works for himself, which is very cool."

A significant transition occurred when a friend suggested venture capital. At a time when I was still struggling with what I should be, my friend said, "You know, you're really good at technology and you're now interested in business because of this exposure to Loop plot. Have you ever thought of venture capital?" This suggestion led to a pivotal interview.

During the interview, we didn't talk about technology or my work experience. Instead, he wanted to know what books I was reading and the music I loved. I remember not even hesitating, knowing that I wanted to work with this person, the human being sitting across the table from me. I jumped at that opportunity, not just because it was in venture capital, but because I wanted the chance to work around someone like Ted ders Smith.

Ted ders Smith had a unique approach to networking. He was deeply curious about the human being sitting across the table. He tried to understand how my mind worked and what I was interested in. I've taken that as a real lesson because I love the way he would network; he learned so much about people in that process, and that's how he ministered to his entrepreneurs.

A significant event marked the beginning of my time at CRV. My second day of work at CRV was 9/11. They reduced their fund from $1.2 billion to $450 million. By shrinking the size of the fund, you shrink the size of the management fees pretty dramatically. This experience taught me valuable lessons about handling economic downturns.

I learned how to shepherd companies through difficult times and how to be a true partner to an entrepreneur. I know how to get through such challenging periods, and I don't think a lot of people do. These experiences and lessons are crucial as I navigate leadership in startups.

The most difficult thing for a startup founder or CEO is witnessing multiple phase changes in a business. You're going from absolutely nothing to something—that's what I call the zero to one phase.

Focus on one direction to ignite success! 🚀🔥

Navigating Through Economic Downturns and Business Phases

2001 taught me that 2008 was a blip compared to a real downturn. I understand how to navigate through those tough periods, and I don’t think many people do. The most expensive words in investing are, "This Time It's Different."

The most difficult thing for a startup founder or CEO is witnessing multiple phase changes in a business. Imagine you're going from absolutely nothing to something—that's what I call the zero to one phase. You're searching for product-market fit, which is a very different business process and truth-seeking journey than when you're going from one to X.

Being comfortable with your fundamental job shifting every three months is crucial. You need to adapt to massive shifts in focus and development needs. A company is not just an organization; it's a category you're building, a business model, and a team.

One of the hardest challenges is distinguishing between a winning strategy and a strategy not to lose. It's about not losing to a competitor, not losing talent, and not losing out on revenue. You need to determine where to double down, what actions to take to capture ground, and how to be aggressive to play offense, not defense.

The urge to hedge might manifest itself by targeting two very different customer segments, such as large enterprises and small-medium businesses. You're afraid to pick one because you have some revenue in both, but this causes confusion within your team as you're heading in two completely different directions.

All these factors contribute to essentially "lighting money on fire." You need to focus and be offensive. The minute you lean forward, suddenly you're just gliding, and it’s scary, but it gives you so much more control.

He came to our class and was mentoring this team, but he was actually being too nice.

Surround yourself with incredible mentors! 🤝✨

Navigating Through Economic Downturns and Business Phases

2001 taught me that 2008 was a blip compared to a real downturn. I understand how to navigate through those tough periods, and I don’t think many people do. The most expensive words in investing are, "This Time It's Different."

The most difficult thing for a startup founder or CEO is witnessing multiple phase changes in a business. Imagine you're going from absolutely nothing to something—that's what I call the zero to one phase. You're searching for product-market fit, which is a very different business process and truth-seeking journey than when you're going from one to X.

Being comfortable with your fundamental job shifting every three months is crucial. You need to adapt to massive shifts in focus and development needs. A company is not just an organization; it's a category you're building, a business model, and a team.

One of the hardest challenges is distinguishing between a winning strategy and a strategy not to lose. It's about not losing to a competitor, not losing talent, and not losing out on revenue. You need to determine where to double down, what actions to take to capture ground, and how to be aggressive to play offense, not defense.

The urge to hedge might manifest itself by targeting two very different customer segments, such as large enterprises and small-medium businesses. You're afraid to pick one because you have some revenue in both, but this causes confusion within your team as you're heading in two completely different directions.

All these factors contribute to essentially "lighting money on fire." You need to focus and be offensive. The minute you lean forward, suddenly you're just gliding, and it’s scary, but it gives you so much more control.

He came to our class and was mentoring this team, but he was actually being too nice.

Mentoring at Stanford and Major Career Decisions

This actually happened in one of the classes that I was teaching at Stanford. He was one of the mentors for a bunch of teams. Diane Green, now the head of Google Cloud and former CEO of VMware, was also involved. Big deal, big, big deal.

Transitioning to the mentoring experience: "Well, I think they're going to get an A+," he said. I pointed out that they were not tracking well so far. The team did turn it around and ended up getting an A+ in the class. I actually take full credit for the turnaround because, had I not pointed it out to Mike, the team would have just imploded.

Discussing the PhD focus: My research was really in risk management of computer security.

Transition to Mike's proposal: He calls me to say, "Hey, I have this great idea. I think that you should drop out of your PhD program and join me." I actually thought he was crazy because first of all, you know, I was literally a nobody.

Mentors' opinions: Some of them said, "Why would you go to a no-name VC? Why won't you go and be an associate at Kleiner Perkins or Excel or Sequoia?"

State of venture capital: At the time that Mike had proposed this, micro-cap venture capital was barely a thing.

Sensing major changes: All of the students around me at Stanford didn't need $5 million to start a company. We suddenly had open-source software, what was starting to look like cloud computing, and shared resources. $500,000 was the new $5 million.

Mike's unique skills: He was this incredible marketer. I used to believe you either built things or you sold things; everything else just seemed like an extraneous skill set to have. He was incredible at storytelling and positioning, and strategy—real strategy for how you create a new category, build that category, and create the king of that category.

Compelling combination: Not only was it a great skill set that I was learning from, but he was also genuinely one of the best human beings that I've ever encountered. A couple of months into it, I said, "Sign me up."

Balancing PhD and Floodgate: I did not quit. I was waking up at like 4:00 in the morning, doing research until 7:00 when my daughter woke up, then taking her to daycare, and then working from like 8:30 to 6:30 at Floodgate.

You can do more than you think! 💪✨

The Magic of Category Creation and Joining Floodgate

To me, the magic of category creation almost felt like magic. I looked at Mike and thought, "I really need to learn from this person." Not only was it a great skill set that I was learning from, but he was also genuinely one of the best human beings that I've ever encountered. It was this magical combination of someone whose values really aligned with mine and how I wanted to build a firm and treat entrepreneurs. So, a couple of months into it, I said, "Sign me up."

When asked if I quit my PhD program upon joining Floodgate, I clarify: I did not quit. That first year and a half of my life at Floodgate was crazy. I joined Floodgate and had an 18-month-old child, my daughter Abby. I was waking up at 4 in the morning, doing research until 7 when my daughter woke up, then taking her to daycare and working from 8:30 to 6:30 at Floodgate, then coming back, doing dinner, and working on my PhD again. I got pregnant with my second child a few months into that and decided I was going to defend my PhD. They set the date for six weeks after I gave birth to my son.

Reflecting on this challenging time, I share: Not only did I manage my first set of investments, but I also gave birth to a child, cared for another one, managed to stay married, and finished my PhD, all between 2008 and 2009. To me, that's the most creative and probably productive period of my life ever. It also showed me that I can actually do a lot of things that everyone around me said, "Why would you do all of those things at the same time?"

Struggling with feelings of inadequacy, I confess: I struggle with this still today. Am I doing anything well? Am I a good mother today? There were many places where people said I was distinctly average, maybe not even that smart. For me, it's been about learning to tune out the naysayers and knowing that while there are certainly things I'm not good at, there are things I can actually be great at.

Regarding prioritizing tasks, I note: It is this constant battle of figuring out what my priority is so that I make minimum viable progress on some fronts. Then, for the thing that really matters, I'm going to make massive progress on it.

Discussing a significant realization during my PhD, I recall: I remember looking at him and being in one of his seminars, thinking to myself, "That is world-class as an academic." I would have moments where I thought, "I'm actually not even good at this." I realized, "This isn't the path." There's a place where I can use the skill sets that I do have and be really good at the things I'm doing.

Finally, when asked how Mike would describe my strengths as an investor, I respond: My superpowers are a fewfold. Because of my technical capabilities, when someone is describing anything that has to do with math—math, which is having this incredible resurgence in artificial intelligence and cryptocurrency—I get that piece better than probably 99% of the investors out there.

Math can be your secret weapon! 📊🧠

The Magic of Category Creation and Joining Floodgate

To me, the magic of category creation almost felt like magic. I looked at Mike and thought, "I really need to learn from this person." Not only was it a great skill set that I was learning from, but he was also genuinely one of the best human beings that I've ever encountered. It was this magical combination of someone whose values really aligned with mine and how I wanted to build a firm and treat entrepreneurs. So, a couple of months into it, I said, "Sign me up."

When asked if I quit my PhD program upon joining Floodgate, I clarify: I did not quit. That first year and a half of my life at Floodgate was crazy. I joined Floodgate and had an 18-month-old child, my daughter Abby. I was waking up at 4 in the morning, doing research until 7 when my daughter woke up, then taking her to daycare and working from 8:30 to 6:30 at Floodgate, then coming back, doing dinner, and working on my PhD again. I got pregnant with my second child a few months into that and decided I was going to defend my PhD. They set the date for six weeks after I gave birth to my son.

Reflecting on this challenging time, I share: Not only did I manage my first set of investments, but I also gave birth to a child, cared for another one, managed to stay married, and finished my PhD, all between 2008 and 2009. To me, that's the most creative and probably productive period of my life ever. It also showed me that I can actually do a lot of things that everyone around me said, "Why would you do all of those things at the same time?"

Struggling with feelings of inadequacy, I confess: I struggle with this still today. Am I doing anything well? Am I a good mother today? There were many places where people said I was distinctly average, maybe not even that smart. For me, it's been about learning to tune out the naysayers and knowing that while there are certainly things I'm not good at, there are things I can actually be great at.

Regarding prioritizing tasks, I note: It is this constant battle of figuring out what my priority is so that I make minimum viable progress on some fronts. Then, for the thing that really matters, I'm going to make massive progress on it.

Discussing a significant realization during my PhD, I recall: I remember looking at him and being in one of his seminars, thinking to myself, "That is world-class as an academic." I would have moments where I thought, "I'm actually not even good at this." I realized, "This isn't the path." There's a place where I can use the skill sets that I do have and be really good at the things I'm doing.

Finally, when asked how Mike would describe my strengths as an investor, I respond: My superpowers are a fewfold. Because of my technical capabilities, when someone is describing anything that has to do with math—math, which is having this incredible resurgence in artificial intelligence and cryptocurrency—I get that piece better than probably 99% of the investors out there.

Embracing My Superpowers and Future Visions

One of the superpowers I have is my technical capability. When someone is describing anything that has to do with math, I can grasp that piece better than probably 99% of the investors out there. If I get a math paper, it's something I love to dig into, and that technical insight is something I think I'm better at than most other investors.

This technical insight significantly influences my investment decisions. I can start to piece together what a company will look like around that technology. It's not just about finding great R&D projects but those that are ripe to be "Big D and little r." For instance, one of the companies I invested in back in 2010 has now secured over $100 million in financing. I discovered them when they didn't even have a business plan, just four math papers they sent to me.

Another less evident superpower I feel I possess is a good sixth sense about the people dynamics within an organization. I can tell when there's infighting happening or sense when an executive is starting to disengage.

I'm also passionate about engaging with the fundamental data behind businesses. I love looking at cohort analysis and really engaging with data because decoding and encoding that piece of the puzzle is something I’m good at.

Introducing the concept of a Thunder Lizard in entrepreneurship, I explain: A Thunder Lizard is inspired by Godzilla, born from radioactive atomic eggs. The DNA of that entrepreneur is already fundamentally different, leading them to crush their industry, create disruption, and build something remarkable from it.

Looking forward, I’m excited about several areas, particularly artificial intelligence. AI is on the brink of disrupting many types of enterprise software. For example, why do we spend millions on Oracle or NetSuite when the CFO still has to make a budget for the next year? Why can't financial planning automatically generate itself based on historical data and external world inputs?

I believe that the scientific method might be evolving in today's data-rich environment. We should gather all the data, analyze it, and let that lead us to a hypothesis or belief system to test further.

Considering the philosophical challenges posed by new technologies like autonomous vehicles, I ponder: When programming for autonomous vehicles, how do they make decisions? What logic is embedded into the machine?

It's crucial to audit algorithms in AI. There's a growing demand to understand what's happening inside the black box, especially when lives or billions of dollars are at risk. We need to be able to audit these algorithms.

Finally, I underscore the role of the private sector in solving societal problems. We face so many incredible societal issues that need addressing—whether it's energy, health, waste management, or providing clean water. I believe the private sector is most capable of tackling these challenges.

Effort truly matters, really does! 💪✨

The Ramifications of the Future and Societal Challenges

I'm intrigued to see how all these emerging developments will coalesce and what the ramifications will be five years down the line. The future holds immense potential to build great businesses while solving major societal problems. Whether it's in the realms of energy, health, waste management, or providing clean water, these are not just challenges but also exciting opportunities.

Reflecting on my mentor, Ted Dent Smith, I share: Ted recently wrote a book called What School Could Be. He embarked on a 50-state tour to explore educational innovation and discovered that many solutions are already being implemented by incredible school teachers across the country. They are equipping our kids with the essential skills they need for the future.

On a different note, I recommend reading A Thousand Splendid Suns. It's probably one of the most beautiful books I've come across in a long time, especially in the realm of fiction writing.

For any parent who's spent hours at a swim tournament, I found a game-changer: a foldable chair with a flip-over sunshade. It’s a life-saver. These small innovations can make a big difference in our daily lives.

I believe in finding your world-class life. It's important to remember that not losing isn't the same as winning. Professionally, you can follow me on Twitter where I go by Animaniac, or on Instagram as am mi Ur a.

To share a personal story, my nickname means "a small round bell." When I was born, my face was so perfectly round that it reminded my family of a perfectly round bell. This kind of personal touch enriches our journeys.

We like to think we're at the forefront of the headwaters of innovation. It may sound big and audacious, but that's where we want to be.

As a parent and a mentor, I'm very protective yet also driven to push my kids and those around me to be their best. Effort truly matters. Even if people tell you that you can't do something, with enough preparation, you might as well have the talent to achieve it.

For more information on everything we've discussed—the books, the foldout chair, and much more—you can find links in the show notes.

Watch: youtube.com/watch?v=OobjdM0mHcM