Interview with Danny Warshay, Managing Director at Dew Ventures, LLC

BrownHEN interviewed Danny Warshay, Brown '87, Managing Director at Dew Ventures, LLC, Providence, RI.

1. Danny, when you were an undergraduate, you co-founded a software company that became part of Apple. Looking back on that experience, what do you believe undergraduate entrepreneurs need to know most?

I’m often asked about that experience and about whether it makes sense to start something as an undergrad or soon after or get some “experience” first. My answer is that it depends mostly on whether you have an idea that is a legitimate opportunity. If you do or think you do, in many ways, there’s no better time to pursue it than when you are young–free from other responsibilities like a family, a mortgage or something else that make you much more conservative later in life.

When we started Clearview, I had nothing to lose, and could afford to live on no salary and eat a lot of macaroni and cheese. My wife and kids these days would get sick of macaroni real fast. The other benefit to pursuing something early is that in some ways, knowing too much can be a hindrance.

When I was graduating from Harvard Business School, I began to realize that I had learned a ton of ways to find fault with businesses and ideas, and had been trained over those prior two years to be critical of the thousands of cases we had studied. One of the voices that I paid the most attention to at that time was that of my entrepreneurship professor, Jeff Timmons, who reminded us to ask, “What can go right.”

When we were starting Clearview, I had virtually no business experience and could barely turn on a Macintosh. A couple years later, I think partly because of our naiveté, we had developed a successful Macintosh applications business whose acquisition by Apple I was helping to negotiate. I hesitate to say this too strongly, especially because I am teaching entrepreneurship at Brown these days, but I sometimes do wonder whether knowing or at least thinking too much can cloud your judgment.

The bottom line about whether to start something when you’re young, though, is that the decision is not like a typical career decision and question, "Should I take a job at McKinsey or start a software company?" The alternatives, a normal job or doing a startup, are much different. If you have a passion for creating a business and a compelling idea for a product, go for it. If you don’t have both the passion and the idea, then the decision is made for you until you do.

2. Please tell us more about your website RoundOne.com and what it intends to accomplish. Will it meet some of the needs you described in Question 1?

RoundOne is a platform that empowers aspiring entrepreneurs to take a few key first steps. Its content (now well over 3000 blog articles by entrepreneurial experts and supportive RoundOne community members) covers a wide range of critical topics, in easy-to-read, practical bite-sized pieces. To avoid the information overload and analysis paralysis I referred to in the previous question, the pieces are not a dissertation on the subtle distinctions between an LLC and an S-Corp, but the practical “dummies” version.

The networking platform enables you to meet fellow aspiring entrepreneurs from all over the world. We have members from dozens of countries–even places I had never heard of—and I cannot imagine how they would have connected with each other without an online platform like this. Finally, we have a suite of collaborative project management tools that enable a newly formed team to take a few substantive steps together (e.g., develop a business plan, upload and store documents, schedule team meetings and even conduct them online). We conceived all of this functionality with a focus on aspiring entrepreneurs, people who for the first time are looking to start a business but have never done so before. According to Capital One and Consumer Action, over 54% of Americans are interested in starting their own business but “don't know where to begin.” Our mission is to help them do so.

3. Most of your professional life you have been associated, successfully, with startups. However, you did spend a few years at Procter and Gamble. Were they valuable years for your present career? Do you recommend aspiring entrepreneurs work at a large company for a time?

I learned a lot in a short time at P&G. As my wife, Deb, smartly reminds me from time to time, the most important thing I learned was that a place like P&G is not for me. And that is a valuable life lesson—to figure out what is for you by experiencing what is not. Even beyond that, I learned a lot about how to build and run consumer businesses on very large scales, and about how to sweat the details. In subtle ways, I find those lessons expressing themselves in my entrepreneurial work more often than I might have expected. So for me, P&G was valuable, and while I would not want to prescribe any one type of experience for everyone, I do think that in general, especially if you go into the experience being clear about what you want out of it, that employment at a big company can teach you a lot.

4. You were a leader in creating the magnificent new Hillel Center at Brown. What are your aspirations for that building?

That it inspires the next generations of Jewish community leaders.

5. You have taught entrepreneurship in Israel. How did the students there differ from Brown students?

In ways that surprised me. Since they were Executive MBA students, I expected them to catch on to the HBS case method quickly, and to my surprise that approach threw many of them at first. I am still not exactly sure why, but I think one reason is cultural. At the risk of generalizing too much, my Israeli students tended to be very professionally focused and tended to think black and white. Many of them initially wanted to dispense with the ambiguous process of a case discussion and cut to the chase. “Just tell us the answers” was literally what many of them said to me in the first couple of classes. I resisted and by the end of even the condensed course, most had caught on and appreciated the “no right answer” approach.

That experience made me even prouder of my Brown students who tend generally to catch on to the case approach quite well. I think one significant reason is that Brown students are used to dealing with ambiguity in a liberal arts environment. I also saw some of what I discussed in question one above (thinking about what could go wrong) although in some ways the Israelis were able to apply their years of professional experience to the cases. For many, that experience inhibited their creativity, while the inexperience of my Brown students sometimes enables them to think more freely.

6. You are well known for the effort you put into teaching at Brown. What makes teaching rewarding for you?

First of all, I owe all of this experience to Barrett who knew me better than I knew myself, and detected a latent passion for teaching. Simply put, I love everything about it. I love motivating and inspiring my students to work their tails off and grapple with challenging problems. I love using the Socratic method, which feels a little like tight rope walking without a net. Although I have a general sense for the issues I want to cover, I never know exactly how the discussion is going to flow, what issues students are going to find worthy of interest.

In their course evaluations, some of my students have referred to me more as a coach than a professor and I can see that. I work hard on their behalf to make sure their experience in the classroom is worthy of Brown, and I advocate for them far beyond the classroom (e.g., finding them internships while they are still students, finding them jobs when they graduate, helping them with startup ideas, writing them recommendations). My core, advanced COE course, “The Entrepreneurial Process: Innovation in Practice,” is demanding, rigorous, and challenging. And those students see how much effort I put into it on their behalf and they respond accordingly. By the end of the semester, we have been through a lot together, and we all feel a sense of accomplishment. Finally, I am sure I learn from the students as much as they learn from me. It’s an honor to be able to teach them.

7. What are the top five qualities you would ascribe to an entrepreneur?

Mostly I think of qualities relating to execution more than breakthrough thinking:
• Ability to prioritize
• Ability to get things done
• Persistence: not accepting setbacks or failures, and
• The classic quality from Howard Stevenson who is an entrepreneurship guru at Harvard Business School: ability to pursue an opportunity without regard to the resources one currently controls.

8. As you know, the entrepreneur’s path is filled with trials and errors, and also failures. What’s a valuable insight for entrepreneurs to keep in mind when they’re experiencing setbacks?

I guess I’ve adopted more of a Zen-like approach to success and failure, as I have gotten older. Sometimes, what at the time I thought was a supreme success later paled compared to other more important things and even seemed like a detriment. And in contrast, what at one time seemed like a horrible failure later seemed like nothing or even a valuable experience. Perhaps it’s all the yoga I’ve been doing, but I try to have a more balanced opinion of what may seem like success or failure.

9. What is the latest insight (about life, work, play) that you picked up and would like to share with BrownHEN? If not, do you have a motto that you would like to share with BrownHEN?

I think we can all learn a lot from Curly, Jack Palance’s character in City Slickers. He says that the most important thing in life is for each of us to find our "one thing"—our passion. For some that’s their family, for some that’s intellectual achievement, and for some that’s about inventing new things. I guess like Curly, what I’ve found over the course of my career is that everything else falls much more easily into place once I have figured it out and can focus on that “one thing.”

10. How did the name "Danny" come to be?

Short for Daniel.  I’m definitely not a Daniel or a Dan – just Danny.

Note: Danny is currently in Cairo, teaching a condensed version of his Brown entrepreneurship course to a group of Egyptian executives, heads of NGOs and entrepreneurs.

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