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  • OP #268: Tennis, Tech Mafias, and the Antitrust War on Google: A Week of Courts and Courtrooms

OP #268: Tennis, Tech Mafias, and the Antitrust War on Google: A Week of Courts and Courtrooms

A packed Operating Partner letter covering quite a bit of content. Be sure to read all as this is one of my favorite OPs.

Author

Darren Herman
September 17, 2024

If you are reading this on Tuesday morning, I’m likely driving back from New York to Boston. Yesterday (Monday), we hosted the 2024 Silicon Alley Tennis Invitational which was supposed to be a few months ago but due to weather, we had to postpone it. Over 40 investors, entrepreneurs, tech execs, digital media execs, and ecosystem supporters came out to play tennis, network, and raise a little money for Team Daya. Once I receive the professional pictures, I’ll post a longer form article online.

I spent early last week at the Creativity with a Conscience Conference in Orange County, CA. It was an incredible inaugural conference. The tagline was “Something Good Over Nothing Bad.” That line really resonates with me. Just try and do good. It’s not hard. Keep doing a little good every day and you’ll wake up and find yourself making huge strides. I’ll do a formal writeup with pictures on LinkedIn in the next week or two.

I’m excited about today’s edition of The Operating Partner and hope you enjoy it too. It features a section on the DOJ vs. Google and a thought-provoking piece on what we can learn from tech mafias and the New York Knicks about building winning teams.

Enjoy ☮,
Darren

Why the DOJ's Case Against Google Could Be the Internet's Biggest Turning Point

My friend Chris mentioned the U of Digital newsletter to me about 6 months ago and I immediately subscribed. Shiv Gupta and his team do an excellent job of analyzing what is happening in the digital ecosystem on a weekly basis.  I highly recommend reading their coverage of the DOJ vs. Google antitrust trial over their digital advertising dominance.

I know many of you are testifying in Washington DC on both sides of this landmark trial. I find this whole subject fascinating. I remember the United States vs. Microsoft Corporation case from 2001 where the US government accused Microsoft of illegally monopolizing the web browser market for Windows. We all know who won that trial (hint: not Microsoft).

If you are a marketer, a digital media investor, or involved with pretty much anything on the web, this DOJ vs. Google trial should be something that you follow.

Some articles that are relevant to the case and will be good to get started with:

Building a Winning Team: Lessons from the New York Knicks and Tech Mafias

This one was a fun one to write…

In the world of professional basketball, the New York Knicks have placed a big bet on chemistry. By assembling a team with players who have a history of success together at Villanova University (Brunson, Hart, DiVicenzo, and newly acquired Bridges), the Knicks have harnessed the synergy of past relationships and shared victories. This strategy mirrors the success seen in the tech industry, where groups of early employees from companies like PayPal, LinkedIn, Google, Facebook, OpenAI, and Nvidia have gone on to create successful ventures together. Luckily, this has all been studied before - on the business side at Harvard Business School and on the sports side, at the MIT Sports Analytics conference.

Here are some key lessons on why people do this and what leads to their success:

Lessons from the New York Knicks and Tech Mafias

  1. Trust and Communication:

    • Basketball Context: Players who have competed and won together at Villanova University have developed a deep sense of trust and effective communication. They know each other's strengths, weaknesses, and playstyles, which leads to seamless on-court chemistry.

    • Tech Industry Context: Similarly, teams that have worked together at companies like PayPal or LinkedIn have developed a strong foundation of trust. This trust facilitates open communication, rapid decision-making, and a collaborative culture, which are crucial for the success of any startup​ 

  2. Shared Vision and Goals:

    • Basketball Context: The Knicks' Villanova core shares a common vision of winning and a proven blueprint for success, having won two national championships together. This shared vision translates to a unified approach to achieving team goals.

    • Tech Industry Context: Tech mafias, such as the PayPal Mafia, share a collective vision of innovation and disruption. Their previous success instills confidence and a clear understanding of what it takes to build a successful company, driving them to align their efforts towards common goals​.

  3. Complementary Skill Sets:

    • Basketball Context: The Knicks' strategy leverages the complementary skill sets of Villanova alumni. Players who know how to complement each other's abilities can execute strategies effectively and adapt to various game situations.

    • Tech Industry Context: Successful tech mafias often consist of individuals with diverse but complementary skills. For example, the PayPal Mafia included experts in engineering, business development, and finance, which allowed them to tackle various challenges and create well-rounded companies.

  4. Cultural Fit and Cohesion:

    • Basketball Context: Cultural fit is paramount in sports. The Knicks benefit from the cultural cohesion established at Villanova, where players have already built strong personal and professional relationships.

    • Tech Industry Context: Cultural fit is equally important in tech startups. Teams that have previously worked together understand and appreciate each other's work ethics, values, and company culture, which fosters a positive and productive work environment​.

  5. Proven Track Record and Confidence:

    • Basketball Context: The Villanova alumni bring a proven track record of success to the Knicks. Their past achievements instill confidence and a winning mentality within the team.

    • Tech Industry Context: A history of success, as seen with the PayPal Mafia or early Google employees, provides a psychological edge. Their proven track record boosts investor confidence and attracts top talent, creating a positive feedback loop that fuels further success.

Supporting Evidence

Research and anecdotal evidence support these observations. For instance, a study from Harvard Business School found that companies with high levels of employee cohesion and past collaboration tend to have higher productivity and innovation rates​ (HBS Working Knowledge)​. In sports, the MIT Sloan Sports Analytics Conference found that NBA teams with higher levels of player familiarity perform better in terms of win-loss records.

For me, it’s also held true for the most part.  When I went to Mozilla Firefox, I hired a bunch of folks from my past.  They knew each other (for the most part) and hit the ground running on day one. For me, it’s all about trust. If I have to deliver against a goal, I need to know the people on my team can be trusted to achieve it.

Conclusion

The underlying theme in both sports and corporate settings is that historical chemistry fosters trust, communication, and a shared vision, leading to improved performance. While individual talent is crucial, the synergy created by teams with shared experiences often leads to more cohesive and effective performance.

The below links are articles that I read during the past week. I am sharing them because I think they are interesting. I may not agree with everything in every article. If you come across an article that you might think I or the OP community would like, I encourage you to reach out and share it. I reserve the right to select whether or not it gets shared in the OP.

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