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How Can Health Clubs Benefit From Wellness Initiatives?

How Can Health Clubs Benefit From Wellness Initiatives?
Earlier this year I wrote an article for the CCD News Update about how the Affordable Care Act is affecting the health club industry. The article summarized how new incentives and public policy changes put forth through health care reform are opening up great new possibilities for health club operators who want to boost membership and improve their club’s bottom line. The simple truth is as the cost of health care goes up, employers that self-insure are bearing most of the burden. Many have turned to wellness programs and employee incentives as a way to lower their costs and encourage their employees to stay (or get) healthy.

We are also now seeing doctors and allied health professionals start to work more closely with health clubs as a way to encourage their patients to make positive changes in their lives. Overall there’s an increasing trend toward prescriptive wellness — and this positive trend, and the opportunities that come with it will undoubtedly continue to increase in the coming years. As an extension of my prior article, this quarter we take a little closer look at examples of how clubs in California are benefiting from this rising tide in the hope of fostering ways your club might be able to benefit too.

Health Care Reform and Health Clubs

So where does your health club fit into this changing landscape? In the first article, I highlighted that the Affordable Care Act (ACA) includes provisions addressing two kinds of wellness programs: participatory programs and health-contingent programs. Participatory programs can potentially subsidize the costs of a club membership across an entire employee base. Health-contingent programs, on the other hand, require participants to meet specific health-related criteria. An example of this type of program in California is California WorksWell (for more information visit: http://www.calhr.ca.gov/employees/Pages/wellness.aspx) , which provides state employees with discounted memberships at health clubs across the state through a partnership with GlobalFit, as well as free guest passes at partnered health clubs. It is no secret that major corporations in California are increasingly offering wellness discounts for its members. If you are club operator on the MINDBODY platform it may behoove you to learn more about their Exchange program (for more information visit: https://www.mindbodyonline.com/exchange/get-listed).

Focusing on Health-Contingent Wellness Programs

Among health-contingent wellness programs are physician-referred exercise programs (PREPs). These programs have several potential benefits. First, physicians are an often-untapped source of prospects. Doctors and allied health professionals are increasingly encouraging their patients to get more active (reference: http://www.cdc.gov/nchs/data/databriefs/db86.htm). Second, if you convert these referrals they are generally more likely to be intrinsically motivated, couple this “drive” with effective economic incentives from their employers, and the data supports that your are likely to retain these members for longer than your general member based (for the supporting data visit: http://exerciseismedicine.org/documents/ACSMRoundtable_GlobalizingEIM_MegBouvier_webversion.docx).

Finally, these programs can also benefit your staff by reconnecting them with a higher purpose. With PREPs, the goal isn’t just selling memberships – it is about helping people change their lives for the better. For general managers worried about employee morale, reminding your staff about the positive change they create every day is a great way to get them reengaged your club’s “why”.

If you want to try to use PREPs as a way to improve membership, try these tips for connecting with the medical community:

  • Make friends with the office staff of local medical centers
  • Host an event for medical professionals at your health club or find other creative ways to encourage them to visit your club
  • Attend events you know will attract medical professionals and network
  • Hire a liaison to help you make connections with physicians
  • Have a knowledgeable staff member provide guest content for a local medical website and negotiate some sort of reciprocity agreement

Boost Business by Targeting Key Demographics

You can also boost your club’s business by targeting underserved demographics. For example, SilverSneakers (http://www.silversneakers.com) is a nationwide program available through various health care providers, including Medicare, that encourage senior citizens to focus on their health. It empowers them to get fit by providing free memberships for seniors. And the market holds plenty of potential for this segment. Consider these statistics:

  • People 55 and over control more than 75 percent of America’s wealth
  • Baby boomers, the people born between 1946 and 1964, spend more than any other generation — $400 billion more each year — on goods and services

By offering special programming targeting this group you can draw in an otherwise underserved demographic. SilverSneakers provides compensation to health clubs based on participation, along with additional opportunities for revenue from supplemental programs. You also get access to program and marketing support, free class equipment, and free training to better serve your members. You can attract SilverSneakers members by emphasizing benefits such as fewer hospital admissions and lower medical care costs.

It is important to note that these opportunities transcend the baby boomers demographic. The ACA also needs low-risk populations to buy health care coverage from their exchange. Covered California, the state’s health care exchange, is awarding millions of dollars in grants for outreach programs that educate young adults about the benefits of health and encourage them to enroll.

More to Come

There are many more ways health clubs can use health care reform to their advantage. If you are willing to deal with the often-complex regulations of HIPAA, you can collaborate with employers to offer health screenings and track biometric data. This biometric data can be used by employers to offer discounts on health care premiums. There are California startups like Jiff (http://www.jiff.com) that you can partner with to make it easier to offer these type of services at scale.  

Furthermore, in 2018, health insurance benefits exceeding a certain threshold ($10,200 for individuals and $27,500 for families) will be subject to a 40 percent excise tax. High-end employers will start looking to wellness programs to help further reduce their costs and alleviate this particular burden. Given this segment has significant disposable income it could be an advantageous group to target if your club is properly set up to cater to a high-end demographic.

Interview with Ben Rubin about New Product Development

Ben Rubin is the cofounder of Change Collective, a new innovative platform to assist users in changing their behavior. Prior to Change Collective Ben cofounded Zeo, a sleep management company that helped users track their sleep. Ben also blogs about life hacking and other topics at BecomingAwesome.com.


1) The MOOC (Massive Open Online Courses) market has almost reached saturation; what is (or will be) the secret sauce that makes Change Collective different than other online educational platforms?

When you think about different types of learning, you can think of different types of learning and how they might benefit from different course networks: the type of learning like you might find in history classes or second-grade math, maybe knitting or even graphic design and Photoshop. Platforms like Coursea, Khan Academy and Udemy… each of these takes a slightly different approach in terms of the type of learning and the way the content is created.

This type of learning is split into two axes: one axis is user-generated content versus professional content. What we see is that within the didactic learning section, most of the market is well covered. In behavior change however, there’s a bit of a different game going on; it’s no longer just learning a skill and having knowledge. It’s about changing a behavior and learning things is actually just a very small part of the process.

Where we see the next technological shift — in terms of being able to serve this market — has been the pervasiveness of smartphones, the pervasiveness of availability of health data through wearables. The enablement of technology allows us to build a course platform that’s geared towards behavior change. Since traditional educational platforms are not specifically or necessarily native to mobile they cannot be with you, can’t remind you, or can’t stay there with you. Individual change fundamentally has to be accomplished in your everyday life, as you are walking around the world.

We see ourselves differentiated in three ways. The first is content type: we are specifically geared toward behavior change. Second, our delivery mechanism is mobile. The third way is in the product experience and design. We are firmly grounded in change science: from psychology, to behavioral economics, to community, and how all of these interact.

2) With regards to change you have said that, “when change matters, identity must shift.” What does that mean and how will you use technology to support this idea?

When you go back to our primal understanding of behavior change, we believe change generally occurred because someone you looked up to did that thing: If you were training to be a hunter, farmer, or woodworker there were role models, village elders, who would show you the way. Their behavior was passed down and modeled. In modern times, the idea of “role model” has shifted into the idea of world-class experts. Instead of mentors being chosen from a small group of people around us, these experts now have a global reach. We can match an individual to a mentor or an expert that has “been there – done that” for a specific aspect of what a person wants to change and/or improve.

When we were interviewing consumers about change and asking them what worked, again and again they would mention community and the community’s respective leader. It became very clear that one of the key aspects of behavior change is actually shifting your identity to become associated with the view within the group. This concept/idea is supported by academic research, too.

Vegetarianism is a great example of this. Someone who has a moral objection to eating meat is very unlikely to choose an expedient and tasty the hamburger, because their identity and their morals are tied up in that position.

Our realization was we could use technology to bring great expert content and actual change facilitation to a wide audience. The experts can now better tell their stories, create communities in a scalable way and enable user identities to shift (which will help effect change).

3) You have spent significant time on product development since announcing your new project at the 2013 QS Conference. What have you learned about your customer segment and product during the process?

We have been talking a lot with experts, and talking with consumers. The process really boiled down who our target customer is. We describe them as one of two personas: The first is the Healthy Achiever. This person tends to be 20 to 55, female, interested in holistic life change, interested in sustainable change across a broad range of avenues from physical life, to raising kids, to household products, to her spiritual life.

The second persona is the Performance Optimizer. This person tends to be male, in a similar age range as the Healthy Achiever, and interested in optimizing risk. He prioritizes career over the rest of his life, but is interested in hacks across the board, and really wants to apply the minimum amount of effort in order to get the maximum amount of the gain. He is less worried about sustainability and a holistic approach.

So we really had a chance to dive in deep, understand those personas, understand who we are going to cater to and then talked to the experts who have already served those market segments somewhat and are well-respected by those consumers. So we have learned a ton about both the consumers in this market and the experts who serve them.

4) Given you are an avid life hacker yourself, what are three “hacks” you have successfully implemented in your own life that have yielded significant desirable results?

I will give you four because I know them well.

1) Sleep: Get 8 to 9 hours in a dark cool room, with black out curtains. You need the appropriate amount of REM and deep sleep. If you sleep right, the rest of your life will follow.

2) Nutrition: For me, the hack is Paleo, but there’s good reason to believe that lots of different approaches work for different people, so you need to discover what works for you.

3) Physical activity: Specifically, for me, it’s a combination of CrossFit and Olympic lifting that works. That will not work for everyone. However, I do tend to suggest some form of resistance training or other type of weighted work.

4) Meditation

5) What is the most valuable takeaway from your experience building and winding down Zeo?

I will give you two:

1) Listen to your customers. We always knew they didn’t love wearing headbands. We also knew Zeo was a great product — the device gave amazing data quality — and we projected that consumers would get over their objections (to headbands) because the product was so amazing. That never happened. Had we listened to our customers more, gathering stronger intelligence earlier in the product lifecycle, we would have more quickly shifted to non-contact sensor products.

2) The importance of building a corporate culture based around shared values. We started Zeo when we were 20 years old, just a couple of college kids who got together and started building something, perhaps without a truly defined shared purpose. When I look at the thing that has really worked for us at Change Collective, it is unity and shared values and really being mindful of building those shared values into the organization and company culture.

Interview with Craig DeLarge about Digital Mental Health

With a career in health and wellness spanning two decades, Craig DeLarge has held significant leadership roles for Johnson & Johnson, Communications Media, Inc., GlaxoSmithKline and Novo Nordisk. Craig recently left his management role with Merck, serving as the Global Leader of Multichannel Marketing Strategy & Innovation, to pursue opportunities in the digital mental health space. In addition to Craig’s pursuits in health and wellness, he is also a successful business coach and blogger. Craig’s coaching blog can be found at WiseWorking.com.


1) After a long and successful career in pharma, what are the major factors pulling you to now focus your energy on digital mental health?

There are 2 major factors that have contributed to my pivot. The first is that I have fortunately reached a period in my life where I have the luxury of taking a sabbatical. During this sabbatical I am bringing together my 15 years of digital health care experience with my personal interest in mental health as a professional coach/trainer and mental health advocate. I am not a psychologist, but I have experience helping people with change and personal growth. I also have a personal interest because I am a caregiver and due in part to that personal journey I have done extensive work with the National Alliance on Mental Illness (NAMI).

The second is there a major paradigm shift in health care from a pay for service model to a pay for outcome model. I am interested in playing a part in the evolution of this change. I realized I need to contribute to commercial models focused on health outcomes.

2) What has impressed you so far about the budding digital mental health space? What has been a disappointment?

As I have surveyed the space of digital technologies focused on the prevention or treatment of mental health/illness, I have been impressed with the breadth and variety of available technologies.

I won’t call this a disappointment, but what I would like to see more integration of individual technology solutions. Although there is clearly a lot more out there in digital mental health, I have yet to see many players integrate their offerings and create a holistic solution to the benefit of the patient and caregiver.

3) Given your unique vantage point, what role do you believe pharma plays in supporting digital mental health initiatives succeed?

Pharma can help integrate these products with their core product – drugs – to get a synergistic 1+1-3 safety & efficacy effect. For instance, drugs are only effective if you take them. In mental health there is a lot of non-compliance. There is a chance for digital health tech to have a complementary effect strengthening compliance & support. There is also the opportunity for better use of patient’s data to create win-win therapy & outcome situations.

Another point is Pharma has the money to invest to support digital health in a venture capitalist & scale up role. Most of the big Pharma players already have innovative investment funds, and have mechanisms for investing in budding digital health technologies.

Lastly, Pharma is skilled at influencing public policy. In that respect, Pharma can help assure there is room for relevant digital health technologies to grow in their beneficial application and use.

4) One of the early assumptions about wearables specific to digital physical health was that data in and of itself would be a change agent. There is growing evidence that to improve physical wellness, the human element is still required and that digital monitoring is simply another tool to augment mentorship and coaching. Do you think the same will be true for digital mental health?

The simple answer is yes, but not in the short-term. There will come a day where artificial intelligence will be smart enough to help mental health patients. I am confident of that, but we are not close yet for two reasons. One, the technology is simply not sophisticated enough yet. Two, my generation does not possess the comfort level with technology that they would see their phone as their therapist. However, our children and grandchildren are growing up in a new world where their generation might be able to have that type of relationship with technology. There is a degree of acceptance that needs to occur for technology to supplement the human element at that level and that will not come quickly, but it is coming. In the short-term although I do not believe digital health tech can replace human mediation, I do think there is a good chance that the right technology will be great at augmenting traditional therapies. These technologies today have an opportunity to act as supplements and/or amplifiers to the experience a person has with their healthcare providers and caregivers.

5) Playing the role of an optimist but tempered by the current results of activity tracking and cognitive brain training (thus far), how much do you think can be accomplished regarding digital mental health over the next five years?

This might be out of bounds regarding the specific questions, but I would hope simply we are more accepting, less judgmental, and have erased much of the stigma around mental health and mental illness that currently exists in society.

Going back to a previous answer, I hope in five years developed comfort with these technologies allows us close the gap between our view of physical health and mental health as separate things. The two are interrelated and it is damaging to separate them. There is a rising tide of awareness, and through social media it is amplified, which is bringing awareness to mental health issues. As a leader, I want to make sure this momentum is supported and progresses.

Additionally, I think wearables will become ubiquitous and invisible, and improved in their ability to reliably measure for outcomes. Its digital health adoption will grow exponentially. As a caveat, I don’t think you will see people who suffer from hallucinatory illnesses (such as schizophrenia) really benefiting from these technologies, but other mental illnesses, like depression, bipolar, anxiety, borderline personality disorder, etc., where increased mindfulness, awareness, and social support can be an important intervention should benefit greatly. 

Lastly, I would love to see technology help the caregivers of the mentally ill. There are opportunities to support this groups and especially in the face of comorbidities they face as part of the caregiver role. My hope is that innovators can find ways to help caregivers and create technologies that works for them too.

Interview with Bob Summers about HealthKit and Fitness Apps

A long-time digital entrepreneur, Bob Summers has founded several startups over the last twenty years. His current endeavor, Fitnet, helps individuals achieve their health goals by providing easy-to-access fitness sessions through their mobile device (currently available in the App Store). Some of Bob’s previous startups include TechPad, EnergyWare and the nanoCom Corporation. Aside from being an online entrepreneur, Bob partakes in community and economic development as a member of the Board of Directors for the Roanoke – Blacksburg Technology Council and Virginia Tech Entrepreneur Club. Bob also led the installation of gigabit fiber access into Blacksburg, making it the world’s first free open access gigabit Wi-Fi network.


1) As a developer of health and wellness apps, what excites you by the recent announcement of HealthKit at the 2014 Apple Worldwide Developers Conference (WWDC)?

The conference has been a lot of fun and the energy has been really high. 5000 developers, all picked by lottery and the result is that 75% of the developers are new. The rumor mill was that Apple was going to announce a wearable but that wasn’t the case. Instead, they announced HealthKit, which I believe is the first step in that direction, because Apple needs a piece of foundational software like this in the ecosystem before they can really execute well on a wearable so that any device they come out with can be built on top of it. Any good application needs to have a good software ecosystem, and HealthKit makes sense for them given the proliferation of health and wellness apps in the App Store. There are now over 40,000 health and fitness apps and it is a terrible user experience that each time you try a new wellness app you have to fill out the same health information. The same frustration that we have when we have to fill out new paperwork with a new doctor… telling them the same stuff we have time and time again… that same experience is true for health and wellness apps. A good app may not get used just because the user doesn’t want to have to go through the process of answering the same questions they just did for an inferior app. HealthKit means this type of information is now portable, stored locally in the HealthKit repository, and users don’t have to rely on apps to talk to each other through APIs and the Internet. This will now all happen locally within the user’s phone. All of these individual apps, with unique APIs, have stifled innovation for too long. It’s exciting stuff. There are some limits since it is new. It is not yet available for the iPad, but I’m sure that will resolve itself in short order. There is clearly a lot of excitement about it so I’m sure it will evolve quickly. It excites me too because it means I’m in the right space.

2) Outside of HealthKit, what other big takeaways excited you from Apple’s Worldwide Developers Conference and the unveiling of iOS8?

The introduction of a new programming language, Swift, is the most exciting thing at the conference in my opinion. It is a programming language that is more approachable, less noisy, and extremely powerful at the same time. Why this is so exciting is it is going to bring in more developers and create more inclusivity within the developer community. Objective C, which is what a lot of folks currently develop in, is a difficult language for people to get their hands around. In my opinion, Swift is a game changer in regards to efficiency, which will allow developers to iterate more quickly, test more things, which in the end will lead to better products. It is going to bring in more developers and lower the cost of development. This is really a big deal because more competition in this space is ultimately going to benefit the end user. In my view, this is going to have a massive effect on the marketplace.

3) You have an impressive success rate at technology competitions, are there any sharable keys to your success that have helped stack the odds in your favor?

One, there is some serendipity regarding my story because I’m in the health and wellness space and that’s just a hot market right now, so one key to share is either through luck, or by choice, pick a hot market. I can take credit for really paying attention to my presentations. In competitions (pretty much all competition not just technical ones) the best presentation is going to win, right? You can have better elements than anyone there but if they’re not passed along to the judges properly then how are they going to know? So there is some salesmanship that for better or worse is important to hone before you get in front of judges. Also, experience is going to help. I’ve been at this awhile, but that said, that doesn’t mean I don’t practice each time either. Just because I have a good track record doesn’t mean I can now go in and win these things easily. I do the work (through practice, prototyping, etc.) and I’m sure that is a major component to my success. Also, I go into these situations with an open-mind, but I will then quickly focus. This is important in two ways. One, I don’t get stuck on anything preconceived. For instance, I have a great idea, but it does not fit the parameters of the competition. I spend the whole time trying to figure out how to jam a square peg into a square hole. That’s just not going to work. Two, I kill ideas quickly. Understand the challenge, brainstorm a lot of ideas, then pick the right one – not a few – but the right one and spend time making that idea great. If you pick a few ideas to consider you start to dilute your energy (and time) thinking about multiple pathways. These strategies have worked for me.

4) In your opinion, specific to health and wellness apps, where do you believe people are currently getting it right, and where is there room for improvement?

I’ve been really inspired about what Nike was able to do in the sense that they made my data usable. They took what I provided and did not just spit it back to me but gave me suggestions and added value to it. Innovators that are going beyond just collecting metrics and data are getting it right. Mobile competitors like Android will come out with their own version of HealthKit and soon applications that don’t enhance your collected data will quickly fade away anyway.

Where I think there is room for improvement is there are all these great platforms out there and none of them are really talking to each other. What a terrible experience for the general consumer, right? I am tracking my food intake over here, and my activity over here, and doing mindfulness exercises over here. Not very much out there is integrated even though, and I truly believe this from my interaction with competitors, we all want to help our clients and users. We don’t want to get in their way. We want what is best for them. Yet, we do little to make it easy for them to correlate their data and look at their health in a holistic way. In that regard, we could be doing a lot better to unify in a way that doesn’t hurt our respective businesses, while making our products work better (in collective) for the end user.

5) Your app has seen impress growth. What are your top three growth hacking strategies?

There is no secret sauce here. One is persistence. You got to want it and work at it every day. Without this strategy, I’m not sure how you make it. I don’t have any shortcuts that replace hard work. The second would be find great partners. What can you offer other people (you must give first to receive), and once you have that established how can you use what you have (and offer it through partnerships) to expand your reach and/or benefit from a competence that you might not inherently have yourself. For instance, I have partnered with fitness celebrities. For them, I have an innovative vehicle for which they can deliver content in a unique way. For me, I gain a content expert pertaining to health and fitness. It’s a win-win. Lastly, make meaningful contacts and connections and keep them updated. I do keep a list of valuable influencers and advisories and make sure I stay engaged with them. If you want a successful endeavor you need a promoter. If you are not that person, then you might need to acquire that expertise through someone that knows public relations. It’s not a secret that good PR will assist you with growth, but some forget it is a strategy that you can do well or poorly… where perhaps hoping something goes viral is more of a wish than a strategy. 

Interview with Brad Bowery about Coworking Space

Brad Bowery is the former Chief Executive Officer of SRECTrade, a company that provides software to solar energy traders. He has recently become a partner of Founders Den, which is an innovative shared coworking office space helping other entrepreneurs take their companies to the next level.


1) Considering the economics of bootstrapping a startup, when does it make sense for a budding entrepreneur to consider moving their idea from their home (and/or coffee shop) and incurring the additional cost of a “coworking” space? More directly, how can an entrepreneur rationalize the return on investment?

I need to clarify that Founders Den is primarily composed of entrepreneurs who are introduced to the space through personal networks. They usually already have some sort of funding and money for office space. In my experience, they tend to be in a little bit different position than other founders who might be on the fence about taking office space. So companies that come through us are funded and have office space in their budget.

So to answer your question, let me take a step back and talk a little bit about my own personal experience. This type of decision is really going to depend on your respective circumstance. I bootstrapped my first company for the first two years, but I did this because I had the luxury of having a dedicated room in my apartment. I had a roommate who was never there and I had a lot of space. My environment was ideal. However, there came a point where more space made sense. I was also fortunate that my company had early cash flow. My decisions about what to invest in would have been different if we were burning cash.

In short, the return on investment in the context of your question is subjective. There are many things to consider: Is your living environment such that it can adequately support your entrepreneurial endeavor? Is using precious cash on renting working space the best investment, or could you get a better multiplier by investing in technology or more head count? Lastly, does the new workspace make sense for your company? Does the culture of the space match yours? There are a lot of choices regarding space, especially here in the Bay Area, will the environment help support your mission, culture, and values in ways that working somewhere else would not?

2) When an entrepreneur is considering picking a coworking environment vendor, what should she/he consider when making a decision about which space is the right “fit”?

This is an interesting question, because there is definitely a growing focus on the importance of one’s work environment. You have places like Facebook and Google that have made their campuses fun, and places that in a lot of respects are inviting. You are seeing people new to the workforce shy away from traditional work environments and levitate towards more dynamic ones.

At the Founders Den, we are really trying to create a curated experience for founders that come into our network. Our goal is to provide a lot of resources and a curated work environment for our entrepreneurs during a very crucial time of building their company. These entrepreneurs are able to cohort with a lot of other companies, all coming together, who are all going through similar challenges and feeding off of each other’s energy and skill sets. They also benefit from our network of advisers that include some of the top entrepreneurs in Silicon Valley. For Founders Den, it is really about a community. There are benefits that go beyond a standard coworking space.

There is a fairly large spectrum of choices for startups. Like most decisions, you will make the best choice by shopping your options and weighing costs against the value you will get. Cost is not just money, there is opportunity cost if the “fit” isn’t right, if there is dissidence between the culture of the company you are creating and the culture of the space in which you are doing it, you could be wasting energy. A bad decision is not without consequence, this new space is likely where you are building your company’s foundation (i.e. new hires, social norms, etc.).

3) There are possible pros and cons to a “coworking” space. For instance – potentially on the negative side – there are the inherent risks of distraction in a collaborative work environment. On the positive side, these type of arrangements are meant to be temporary so this type of engagement might provide motivation for a desired amount of growth by a certain period of time. What strategies can you recommend for someone to make the most out of their experience using a “coworking” space?

Let my start by clarifying that this comes from my own experience, but I believe there is certainly this idea that all the founders in Silicon Valley are networking all the time, and partying, and that’s all they’re doing. The reality is the people who are successfully building companies are going through a completely smothering experience. When you are building a company, you are living and breathing it. As a startup, it’s so easy to just put your head down, put the blinders on, and wait for months before coming up for air. That is something I experienced with my business. In my opinion, some healthy distraction is probably a good thing. In my experience, if I can get out of the weeds and sit and talk with someone smart it starts to trigger things in my mind that relate back to my business. It’s a great time to step back and look at the bigger picture. Since we are selective about the entrepreneurs invited to the Founders Den, I’m not worried that our entrepreneurs will have a problem putting their head down and getting work done. I worry they might not take full advantage of the opportunities to interact with other people, to sit in on talks, and take advantage of other resources that they can get in a well-designed coworking space. There are easy ways out there to get a desk, computer, and phone. In that sense, I guess one of the negative aspects would be that you could over pay for simple amenities by overpaying at a sophisticated work space (if you are not going to take advantage of all they offer when all you wanted was a phone).

So continuing along with the same theme, the upside is you are probably surrounded by a bunch of high performing entrepreneurs. I believe the great entrepreneurs will never have trouble focusing on their businesses, getting them to come up for air and refreshing the perspective from which they are thinking about their business is what we are challenging them to do. That is where a coworking environment can really be a benefit. You have the opportunity to cohort with other really smart people sharing the same journey but with different skill sets. You are surrounded by people that potentially see the world differently than you, as well as access to unique resources only available to the collective. Our entrepreneurs generally are accommodated for six months because we want them to get in, take advantage of the resources at a unique time in their growth and then graduate on to bigger things. It also helps us create an environment that is dynamic and constantly being updated with new faces and perspectives.

4) Moving to you personally: regarding Dunbar’s number, in my experience you are the exception that proves the rule. Your innate ability to stay connected to a large and diverse body of friends and associates, while still maintaining a high degree of authenticity is extraordinary. Given there are only so many hours in the day, what strategies do you use to maintain meaningful relationships with so many people?

I am a firm believer that you get what you give, and that is what has worked really well for me. I try to take the lead by being authentic and vulnerable when getting to know people… even if I’ve just met them. I lay my cards on the table early and often and, in turn, I have found it gets easier for others to reciprocate. I don’t create a high bar for getting to know me personally and it has helped me feel connected to people in a short period of time. Personal disclosure and trust is important to deeper relationships, and I suppose the way I communicate speeds up this process. This inherent style is not without its drawbacks. Put me in a networking event with a bunch of strangers and I’ll struggle not because of social anxiety, but because everyone there has been socially conditioned for small talk. It’s tough to really connect with someone in that environment. I like situations where you can have deeper conversations with people and move very quick past small talk and get into substance quickly.

I really do enjoy making connections and staying connected, and there are few things I do that probably help me feel connected to friends who I may not get to see as often anymore. For instance, I love taking photos. I’ve had a blessed life and I’m constantly documenting it so that I never forget it! I love going through old photos and will often come across a gem that I just can’t help but send to someone. It’s quite spontaneous and it always leads to some good back and forth. Those shared experiences will never go away, even if the new ones are fewer and farther in between.

Lastly, I love bringing people together. I’ve thrown some fun parties in the city, co-hosted a few charity formals, organized a few kitesurfing trips and co-hosted a couple huge Rose Bowl tailgates in Pasadena. People tell me I should be an event planner, but I could never do that for a living. It just wouldn’t be fun anymore if I were doing it for money. I love creating great situations that bring all the wonderful people I know, and the ones they know, together in meaningful ways. And there is nothing better than seeing people who are good friends, colleagues or even married because they met at something I put together. I have been to at least three weddings where I played a role in making the connection. How cool is that? Aside from being fun and rewarding, creating events is simply a great way to scale keeping in touch. There are no expectations and there is no hidden reason to why I like doing it, but there is no denying that it is a scalable way to stay connected to old friends and meet new people (within your network).

5) Men’s Fitness had an article earlier this year titled Silicon Valley’s New Social Network and the first line goes, “It’s an open secret in the technology industry: If you want to score a deal, learn to kiteboard.” The overarching theme was that deal-making is moving out of the country club and traditional office spaces and has become more adventurous and accessible. Knowing you are an avid kite-boarder, and in line with the theme of this interview, do you see the way entrepreneurs succeed at building businesses changing? Similar to the way open technology is being touted as creating a “Cambrian moment”, do you think the way we are accessing each other is a trend, or alternatively a paradigm shift that is forever changing the way startups will be built moving forward?

I think few would argue it’s a little easier to get an idea off the ground and get a company started than it has been in the past. I am not sure I would make the same assertion about later stage funding/financing, but I don’t believe that addresses the spirit of your question anyway. Also, I have heard things like, “kitesurfing is the new golf.” I’m not sure that is true. Are there more avenues to make connections and get things done through crowd-sourcing, coworking environments, meet-ups, events, etc.? Yes.

Focusing on kiteboarding is a red herring. Yes, it has some visibility right now in the Bay Area. However, for an entrepreneur looking to make connections, just getting to know new people through common interests is more important than getting involved in the latest fad. I got my business school internship through my involvement with pole vaulting. It was an awesome internship. I traveled around the world and got to do some really cool stuff working for an investment fund. I successfully partnered with someone to start my first company through a softball league. My Founders Den involvement did come through kiteboarding where I met Michael Levit during a summer kiteboarding trip I organize each year. Are the ways startups are being built changing? Yes. Are the ways we are accessing each other changing? Maybe. However, putting yourself out there and developing relationships through common interests is timeless, the popularity of certain activities just changes from time to time.