Latest / The Inspired Stories Podcast / Building Glowforge: Dan Shapiro's Journey from Personal Crisis to Reinventing an Industry
Transcript
- 0:04Welcome to another edition of the Inspired Stories podcast
- 0:08where leaders share their experiences so we can learn from
- 0:11their successes and be inspired by how they've overcome
- 0:14adversity. My name is Anthony Kotaspodi and
- 0:17today's guest is Dan Shapiro, CEO and Co founder of Glowforge.
- 0:22They create powerful 3D laser cutters, slash engravers that
- 0:26help people transform simple materials into amazing products.
- 0:30They focus on making the technology accessible to
- 0:32educators, entrepreneurs and anyone who loves to create.
- 0:37Dan has a history of turning big ideas into successful ventures,
- 0:41including developing Robot Turtles, the best selling board
- 0:45game in Kickstarter history, and leading projects at tech giants
- 0:50like Google and Microsoft. Under Dan's leadership, Glow
- 0:53Forge raised a record-breaking crowdfunding amount of nearly
- 0:57$28 million. He also holds more than 60
- 1:01patents and wrote Hot Seat, the Start Up CEO guidebook, sharing
- 1:06his hard earned insights with aspiring leaders.
- 1:09Dan's passion for innovation shines through in his mission to
- 1:13make design and fabrication available to everyone, inspiring
- 1:17a new wave of creators. Now before we get into all that
- 1:20good stuff, today's episode is brought to you by my company,
- 1:23Add Back Benefits Agency, where we offer very specific and
- 1:26unique employee benefits that are both great for your team and
- 1:30fiscally optimized for your bottom line.
- 1:32Imagine being able to give your employees free access to
- 1:35doctors, therapists, and prescription medications in a
- 1:39way that puts more money in your staff's pocket and the company's
- 1:42too. As an example, one recent client
- 1:45with 450 employees boosted net profits over $412,000 a year.
- 1:50Results vary for each company, and some organizations may not
- 1:53be eligible. To find out if your company
- 1:55qualifies, contact us today at ADD Back benefits.com.
- 1:59All right, back to our guest today, Founder and CEO of
- 2:02Glowforge, Dan Shapiro. Thanks for making time to Share
- 2:05your story today. Thank you so much for having me,
- 2:08Anthony. So Dan, you founded multiple
- 2:12start-ups including Photobucket and Spark Buy, which was
- 2:17acquired by Google. I want to hear a little bit more
- 2:21about that. But curious what first drew you
- 2:23to entrepreneurship initially? Were you just kind of wired from
- 2:27this for birth? You know, my parents are both
- 2:30professors, so the family business is academia.
- 2:33And I was a little bit of the outlier because it was a
- 2:36roundabout high school. I started thinking about, oh,
- 2:39you know, could I do this to make some money?
- 2:40Could I do that to make some money?
- 2:42But things really kind of got started when I was in college,
- 2:46and I wound up meeting a friend who had built a laser display.
- 2:52So think about like Pink Floyd, the wall at the planetarium type
- 2:54thing, like a little one that you could put on your dorm room
- 2:57wall. And I said that's pretty neat.
- 2:59I bet we could make those and sell them on this newfangled
- 3:03Internet thing because this is 1993. 393. 1993.
- 3:09How do you even sell on the Internet in 93?
- 3:11You post in newsgroups and you say made this thing and, and so
- 3:16we would ship them around the country, hand make them.
- 3:18And then somebody said, hey, you know, could we pay you $50.00 to
- 3:22do one of those laser shows at our party, which turned into,
- 3:26since you're here, could you play some music?
- 3:28So we had a DJ business and that DJ business ran through most of
- 3:31my college years. And it was pretty great because
- 3:34it helped pay for college and it kept me out of trouble during
- 3:37nights and weekends because I was working.
- 3:39So it was a, it was a great part of the college experience to, to
- 3:43build that little company. And you know, after school I
- 3:46went to Microsoft, I went to a big company, spent five years
- 3:49there. I was always fascinated by this
- 3:51start up thing and by this idea of entrepreneurship.
- 3:56And so tell us a little bit about the entity that Google
- 4:00acquired. What was it?
- 4:02How did you get it started? Why did they show interest?
- 4:06Yeah. So I the first company started
- 4:08was was originally named Ontela, then we merged with Photobucket,
- 4:13became Photobucket. The company that's called
- 4:14Photobucket today is still that company.
- 4:16And after four years, when that merger happened, I stepped down
- 4:19as CEO and I started playing around with different ideas
- 4:23about what to do next. And the one I wound up working
- 4:25on was just something that scratched an itch.
- 4:28I'm one of those people who does way too much research before I
- 4:32buy things, like way too much. And at the time, I was buying a
- 4:36a Windows laptop, and I was unsatisfied with the amount of
- 4:41research that I could do. And I wound up hiring people in
- 4:44emerging markets to fill out giant spreadsheets full of data
- 4:47about these laptops so I could find the best value on the
- 4:50market. And you know, they're like
- 4:53probably. Spending more on the the labor
- 4:55than what you were actually going to save on the laptop I.
- 4:57Actually didn't. I kept trying because I was
- 4:59curious. I wound up spending only $75 and
- 5:02saved about $200 for like a sort of an experiment.
- 5:06I was like, if I was going to decide now, which one would it
- 5:07be? And I, you know, I wrote it down
- 5:09and then I went through this whole process and came this
- 5:12massive spreadsheet and did like a bunch of sorts and filters and
- 5:15I found one that was better that was $200 cheaper.
- 5:18So I'm like, all right, and, and I, I had a bunch of ideas for
- 5:23start-ups. I, I tell this whole story in
- 5:25detail in my book because like nobody talks about how companies
- 5:28get acquired, but I'll give you the short version was flying
- 5:31down to the Bay Area to go visit with some VCs who I'd met at my
- 5:34previous company, talk to them about the different ideas I was
- 5:38thinking about. And on the way back, wound up
- 5:41chatting with a guy in the seat next to me who said that's
- 5:44really cool that that the thing you're working on or like that
- 5:47third thing that you told me about is really cool the
- 5:49spreadsheet. If you decide to do that, give
- 5:51me a call and gave me his card. I didn't, but I decided to work
- 5:56like I lost the card and didn't think about it again and
- 6:00launched the company. But just.
- 6:02Having that conversation was sort of like enough
- 6:04encouragement to be like, oh, I should.
- 6:06Had nothing to do with it had nothing.
- 6:07To do with it in one ear. Out the other totally randomly
- 6:11and three months, four months later when we launched the beta
- 6:16version, I got an e-mail from him and he says, hey, I'm the
- 6:20guy from the airplane. It looks like you did that.
- 6:22Can we get coffee? Three months later he worked for
- 6:26Google, and three months later Google acquired the company.
- 6:30And OK, so tell in more detail what the product did.
- 6:33So it was basically my spreadsheet with an icy on top
- 6:37of it. It was two different pieces.
- 6:39I see. Why on the back end, it was this
- 6:41huge system for having folks in emerging markets be able to
- 6:46research things, hold each other like a cross check across each
- 6:50other, ensure that you got the right data.
- 6:52You know, like it would be easy to say how much does this laptop
- 6:55weigh? And the answer might come
- 6:57through as being 6 lbs, But actually that's the shipping
- 6:59weight. Because if you go and say like
- 7:01on the website, how much is it? They list the shipping weight
- 7:03instead of the weight of the laptop.
- 7:05Or, you know, if you go to Amazon and try try to sort by
- 7:10CPUs at the time, your choices would be like different names of
- 7:13CPUs. And then some of the entries
- 7:15would be like Intel and some of the entries would be like blue.
- 7:18And you're like, that's not ACP. So they'd actually have to go
- 7:21and find like the source of notch.
- 7:22So that was one thing. Then on the other side was a
- 7:26beautiful UI that made it easy to go find what you were looking
- 7:28for. So you could say I want a
- 7:30lightweight fast laptop that's available in silver and it
- 7:35understood what lightweight and fast meant and what silver was
- 7:38and wasn't. So it filtered to silver and
- 7:40then it would take lightweight, make it the first priority fast
- 7:43and make it the second priority and sort everything
- 7:45intelligently based on what you'd said you you wanted.
- 7:49So it was, it was kind of those two pieces and the way things
- 7:53happened. I was really excited about
- 7:54building the consumer product, but both Microsoft and Google
- 7:59reached out about wanting the back end and to license the back
- 8:02end data. And I looked and said, you know,
- 8:05the direct like I can now see the future of this company isn't
- 8:09a consumer product, it's a data provider and I'm not that
- 8:12excited about it. So when Google said, can we just
- 8:15acquire it outright, I was like, this sounds like a great outcome
- 8:19because my investors get a return and like a happy ending
- 8:23and I got to try something new working at Google.
- 8:25And if I stay with this, I probably have to pivot in a, in
- 8:28a direction I'm not super excited about in order for it to
- 8:31be successful. So it wound up being kind of the
- 8:34right exit, right place, right time, even though it was very
- 8:36fast, 'cause I, I just sort of had that product discovery
- 8:39experience of the opportunity here isn't what I thought and
- 8:42isn't what I was passionate about.
- 8:45That was why, that was why I said, yes.
- 8:47You asked why they why they why they came, but that that was the
- 8:49reason I I agreed to it. And So what did this product
- 8:53ultimately become inside of Google?
- 8:56So I became the CEO of a wholly owned subsidiary called Google
- 8:59Comparison Inc and we made a series of products that helps
- 9:04basically the same thing except for cars and mortgages and
- 9:08credit cards. And as it turned out, over the
- 9:11course of when I was there, regulations changed in a pretty
- 9:14significant way that made us conclude that that wasn't going
- 9:17to be the right product to continue with.
- 9:20And so like we built it, we launched as a test in a couple
- 9:24of States and then we, we folded it back down and it was a
- 9:27fascinating ride, I have to say, being being inside Google in, in
- 9:31the ads team, which is, you know, where Google makes all its
- 9:33money because that's where my team was housed.
- 9:36It was wild. OK, so were you the developer or
- 9:42you sort of kind of like, no, you hired a team of developers.
- 9:45Here's the idea, you don't write code yourself.
- 9:48I am so bad at writing code. I would say, like, it is
- 9:51possible for me to write code, but if I am, something's gone
- 9:53horribly awry. Now that's changed in the last
- 9:56year or two with the advent of generative AI, which is a whole
- 9:59nother story. But at that point, no, I'm the
- 10:02guy who scribbles it on the whiteboard and says, what about
- 10:04this? What about that?
- 10:05And knows just enough to be able to ask the right questions of
- 10:08the developers and say, like, could we do this?
- 10:11Questions like, would it be easier if we did this?
- 10:13Would it be easier if we did that?
- 10:14Is this sort of thing hard? And sort of like to feel out the
- 10:17space of the problem? But my background is product
- 10:20management. So I have an engineering degree,
- 10:21but it was I went to Harvey Mudd College, which gives you a
- 10:25general engineering degree. So you're doing electrical,
- 10:27mechanical, chemical, computer engineering, some of a little of
- 10:31everything with kind of math behind it all and, and not
- 10:35computer science specifically. That said, my dad's a professor
- 10:39of computer science. So, you know, there's some,
- 10:42there's some genetic through line I think.
- 10:45OK, so let's talk, let's take sort of a little tangent here
- 10:49and talk about the generative AI piece because I, I wonder if
- 10:51this ties into sort of this, I don't know, I'm going to call it
- 10:55like a strange blip in your resume.
- 10:57I'm looking at your LinkedIn profile and yeah, I'm seeing
- 11:00like lots of product stuff, lots of tech related, but then I see
- 11:04this senior research fellow for the last seven months at the
- 11:08Wharton School. How does this kind of fit into
- 11:11the picture? What's going on there?
- 11:13I mean, to be fair, I think my whole resume is a series of
- 11:15strange blips because I've done 1 odd unrelated thing after
- 11:18another, but this one is something that came up about a
- 11:21year and change ago. As the modern generative AI boom
- 11:26started. We at Goforge decided that this
- 11:29was something that was a massive threat and opportunity.
- 11:33Threat if we messed it up, opportunity if we did it right,
- 11:36and started to move an experiment very quickly across
- 11:40the entire company. So we launched some pioneering
- 11:44generative AI features, but we also took Tiger teams
- 11:48internally, started building tools to empower our teams in
- 11:53ways that were, I, I think, really new and exciting and
- 11:57innovative. I wound up reconnecting with an
- 12:01old friend who ran the generative AI lab at Wharton,
- 12:04who'd gone to science camp together in high school and, and
- 12:08it sort of reconnected through another friend and, and talked
- 12:11about what we were working on. He was really excited because
- 12:14the generative AI lab at Wharton is really focused on the
- 12:18business impacts of generative AI, specifically things like how
- 12:22do you empower people in the organization and how do you
- 12:25manage culture change when you come, when you are, when you
- 12:28have such powerful tools. And so he asked me to join the
- 12:31lab as as a research fellow so that we could start working on
- 12:36research about how some of those technologies worked and how
- 12:39other companies could learn from the the approaches we were
- 12:42taking and some of the developments that we came up
- 12:44with to drive AI change within their organization.
- 12:48So we've been writing a couple of papers.
- 12:49We've got some really exciting ones coming up.
- 12:51And it's a really interesting sidelight where I get to take
- 12:54some of the best of what we've learned at Glowforge and share
- 12:57it with the world. And I get to see some of the
- 12:59best learnings out of academia and bring them back into the
- 13:01company for us to learn from. So how is it that you're using
- 13:05generative AI internally there at Glowforge?
- 13:08Is this like coming up with, I don't know, creative design
- 13:12templates for your customers to use?
- 13:14That's what we're doing externally.
- 13:16So we have external generative designs to help customers be
- 13:20more creative, to take their ideas and prototype them, draft
- 13:23them more rapidly. As somebody who just like not
- 13:26being able to write code, I can't draw, I can't paint, I
- 13:29have no artistic talent to speak of.
- 13:31When I'm thinking about like, well, I want a box.
- 13:33Like I was making a a gift for a friend, which was going to be a
- 13:37box with poker chips on it. I don't know the design to put
- 13:40on the poker chips. I don't know, like I can't make
- 13:43the design to go on the box. I can make the box.
- 13:45I'm pretty good at that. But generative AI would actually
- 13:49let me go create these designs that were really from me, really
- 13:52felt like authentic from the heart.
- 13:54I'd create, you know, hundreds of designs, come up with them.
- 13:56Nowhere near what a professional designer would do.
- 13:58But I didn't want to bring in a professional designer for
- 14:01something that was for a close personal friend for kind of a a
- 14:04joke gift. I could make something that I
- 14:07was proud of. And so that kind of empowerment
- 14:10for our customers has been incredibly, incredibly popular.
- 14:14It's one of one of the leading features of our our optional
- 14:17subscription services, these generative AI arc tools.
- 14:20But the real transformation is inside the company where we are
- 14:25working to put every, every person of the company put in
- 14:31their hands the most powerful generative AI in the world.
- 14:34So every single one of our employees from the executive
- 14:38team to folks working on the floor in the factory, because we
- 14:43do our own manufacturing in Seattle for for our largest
- 14:46products has access to the most expensive and capable AIS in the
- 14:51world like Claude, Opus, O3 Pro, etcetera.
- 14:56And we do that because internally we build and host
- 14:59infrastructure so that everybody has access to all those models.
- 15:02We use an open source front end called Libre Chat, which gives
- 15:06everybody access to a ChatGPT like experience with all the
- 15:09models, not just one of them. That's the first part.
- 15:13And the second part is we have a Tiger team internally of just a
- 15:17couple of developers. We're building custom AI tools
- 15:20for each team. So our legal team has a custom
- 15:24built for them, AI tool that they use for legal research.
- 15:27Our marketing team has a custom built tool that they use for PR,
- 15:31for example, for researching interesting stories and
- 15:34reporters that they want to reach out to and talk to and on
- 15:37and on throughout the organization, whether it be
- 15:39customer support, finance. We've been building quick and
- 15:42simple little tools to help empower them at their jobs in
- 15:46partnership with those folks, which has led to one of the sort
- 15:49of core findings that we've seen is that for the first time I've
- 15:53seen ever, we're in a place where two week old software
- 15:57beats 2 year old software. So we'll go look at these
- 16:00professional AI products for things like legal research or
- 16:04things like, you know, PR outreach.
- 16:06And then we'll look at the thing we like knocked together in two
- 16:09weeks and the thing that we built, custom built for our
- 16:14needs using the very latest models and techniques that we
- 16:18knock together in two weeks will outperform those very expensive
- 16:21products that are being sold that have been refined over the
- 16:24course of months and years, but consequently can't necessarily
- 16:27keep up with the innovation of the week.
- 16:29And so those internal tools teams combined with the internal
- 16:32tool users has really had this amazing multiplicative effect on
- 16:36our team's ability to get great work done.
- 16:39So what's the benefit of sort of putting your own chat experience
- 16:45over top of multiple models? Why not just give people access
- 16:50to the different models? How does sort of combining these
- 16:53two make a better experience? Yeah.
- 16:55I mean, we looked at it and what we found was if we were going to
- 16:59use, let's just say ChatGPT, ChatGPT would be $20 per person
- 17:04per month minimum and their enterprises more and have users
- 17:09or more in everything else. If we did that, we would start
- 17:12saying, well, does this person really need it?
- 17:14Does that person really need it? Can we afford like that's a big
- 17:17bill when we go use Libre Chat, which uses chat GP, TS
- 17:22technology on the back end, we get two things.
- 17:25Well, several things. First, it costs an average of
- 17:28about $2.00 a month per person instead of 20.
- 17:32So now I can say, yes, everybody in the company can have access
- 17:35to it, which is actually really important to me for reasons I'll
- 17:39get to in a minute, but it's low cost, so I can give it to
- 17:42everybody. Second, sometimes one of the
- 17:44other AI companies will fall behind and one of them will jump
- 17:47ahead. And so for a while, like
- 17:49Anthropic Sonnet was the best thing going for probably six
- 17:53months or more. It was especially good at
- 17:55writing, which is really important for our marketing team
- 17:58who use it to help do drafts and do brainstorming and, and for
- 18:02some of those other things, what we can offer them any and all.
- 18:06And in fact, we give guidance about which models are best.
- 18:09So for that same $2.00, you can use Tropic, you can use Open AI,
- 18:12you can use Gemini. It serves as a front end to all
- 18:15those. And last, it really gives
- 18:18everybody, it gives us a shared tool that we can iterate and
- 18:21refine. So we'll build features that our
- 18:23team needs and we'll add them to the open source and, and
- 18:26contribute them back to the open source project.
- 18:28So we're making it better for us and better for anyone else who
- 18:31uses it too. But I, I touched on something
- 18:34that to me is actually really important and it's I'm not going
- 18:39to come out of here with any like your listener should,
- 18:42except for maybe this one. I guess they should buy a
- 18:44product. I'm not going to say you should
- 18:45read a book. I'm going to say you should
- 18:47really think about this in as we see the transformation that AI
- 18:52is landing upon the world, I am very concerned for the impact
- 18:56it's going to have on folks, particularly folks early in
- 18:58their career. But for anybody who does not get
- 19:02comfortable with and deeply understand what this technology
- 19:04can do. And I think it is imperative on
- 19:08us as leaders to give our teams the opportunity to learn.
- 19:13Not only did I want to give this to all the people who could
- 19:15benefit most from it, I wanted to give this to the folks who
- 19:18are working on the line. I wanted to give this to the
- 19:21junior finance team member or the new hire who's coming out
- 19:25of. Out of so that you're setting
- 19:27them up for long term success in their career.
- 19:29They can get comfortable with the platform, the technology,
- 19:32how to use it. Exactly.
- 19:34So often in companies, the goals of the company and the benefits
- 19:38of the individual are at odds. And you know, when it comes to
- 19:42setting salary and when it comes to deciding benefits, it's the
- 19:44zero sum game. Here's a place where I can help
- 19:48our business and I can help our team at the same time.
- 19:52Because when our team levels up with their skill and use of
- 19:56these products, they're making our company better, We're
- 19:58getting more effective and they are making themselves a a
- 20:01better. They're going to be able to get
- 20:04paid more, find jobs more easily, they're going to be more
- 20:06effective. Wherever they go.
- 20:08So I think it's one of those cases where the business and the
- 20:11team come into tight alignment, and it's really the job of
- 20:14leadership to take that and make those tools available and help
- 20:19support people in their learning.
- 20:22So this has been a really interesting sidebar, and I want
- 20:24to get back to sort of the Glowforge story and even talk
- 20:27about robot turtles. But just for a moment, what
- 20:31could we expect to see from these new research papers that
- 20:35you're working on which you're about to come out?
- 20:36Can you give us kind of a sneak peek?
- 20:38Yeah, there's some really exciting stuff, some of what we
- 20:44are, some of what we're working on that you can.
- 20:48So first Ethan Mulak is the the professor who Co leads the lab
- 20:53along with Lilac Mulak, his wife.
- 20:55They do amazing work together. And if you follow them both on
- 20:58Twitter, you're, you're already your AI game is going to level
- 21:01up generally talking about how do you on board with AI and
- 21:06become more capable. His book Co Intelligence is a
- 21:09great primer on this, how you work with AI, how your team can
- 21:13work with AI for the best results.
- 21:15And then some of the research we're doing specifically is
- 21:18something that I've just been fascinated by and brought to the
- 21:20team, which is the ways that these large language models are
- 21:25oddly like people and how when you interact with them, you can
- 21:30take advantage of that to use them better.
- 21:33And so we're actually doing some research using the tools from
- 21:36psychology and sociology, understand these weird technical
- 21:42alien mind slash programs that we're interacting with.
- 21:47Talking about like applying human psychology to the
- 21:52interaction with your AI to get, so, you know, I don't know,
- 21:56maybe applying the golden rule like, so be kind to the AI so
- 22:00that you're sort of getting better results and a better
- 22:04overall experience. Am I on the right path?
- 22:05Precisely, Precisely. Yep.
- 22:08The effect of different types of interactions, whether it's being
- 22:10kind or being mean or being persuasive and seeing how in a
- 22:15really sort of measured academic sense, see what the impact of
- 22:18that is. By the way, I mentioned that my
- 22:20dad was a professor of computer science, my mom is a professor
- 22:23of speech and communications. So between the two of them, I
- 22:27kind of found a little happy place in this academia side
- 22:30project researching technology and you're.
- 22:33Quite the love child of those two, aren't you?
- 22:36That's awesome. We might come back to to this
- 22:39discussion in a bit, but I, I want to get sort of back to some
- 22:43of the rest of your story before we get into glow Forge.
- 22:46I want to hear about this robot turtles thing.
- 22:51A record-breaking crowdfunding campaign that raised nearly $28
- 22:56million in 30 days. Yes, I have those numbers
- 23:00correct. The no sorry, the the amount
- 23:03that it raised was a more modest, I can't remember low
- 23:07single digit millions. 28 million was Glow Forge.
- 23:09OK, Got. We sort of crossed our wires
- 23:12there. OK, so still millions of dollars
- 23:15for a board game, is that right in the most successful board
- 23:19game sort of at least in the time in Kickstarter.
- 23:23OK, what was the idea behind this?
- 23:25How did you pull this off? Like why was it so successful?
- 23:30Let's see the the Origin store. Hold on one second.
- 23:33I'm going to figure out, OK, no, sorry, we raised $631,000 OK,
- 23:40which at the time was one of the largest fundraisers, but not the
- 23:44largest. The record we set is what I'm
- 23:46much more proud of, which was we had more backers than any board
- 23:50game in Kickstarter history. OK.
- 23:52Because this was like, this was a box of cardboard.
- 23:54They've been folks who'd raised like 1,000,000 bucks for a box
- 23:57of miniatures and you know, sort of like super geek.
- 24:00I mean, I love that stuff. I don't mean to talk down to it,
- 24:02but these very sort of. You had a much lower price
- 24:05point, so you weren't going to hit the record with that, but
- 24:07you did hit the record in terms of number of people you got
- 24:10excited enough to pull their money.
- 24:11Out. And to be clear, I was not
- 24:13trying to hit any record. I was excited about this and I
- 24:16was like, OK, if I can find 1000 people to do this, I think it
- 24:20was 500 people to do this, then I can afford a run.
- 24:24Like it makes sense. I'm not going to lose too much
- 24:25money and, and it'll be this great experience.
- 24:28I, I actually was doing this because I invented this game
- 24:32with my kids and I've twins who aren't who at the time were four
- 24:37boy and a girl and now are driving because it's been a
- 24:40minute. And I was like, I want them to
- 24:44understand some of the most important ideas of coding, not
- 24:47because I want them to be developers, but because whatever
- 24:50they want to be like restauranteurs, you know,
- 24:53ballerinas, I don't care. I want them to be able to put
- 24:55technology to work for them. I want them to be empowered by
- 24:58technology, not intimidated by it.
- 25:01So I started thinking, how at that age could I share some of
- 25:04that? And I started thinking about how
- 25:05I loved board games, but I hated Candyland.
- 25:08And at 4, Candyland was kind of the next stop on the board game
- 25:10train. And I was like, what if you had
- 25:14a game where the the the idea of the game was that the kids got
- 25:21to boss around grown-ups, like programmers, boss around
- 25:24computers. And that right there was one of
- 25:27the things I wanted to teach them.
- 25:28So many people feel like they have to learn computers, that
- 25:32computers are this like this abstract thing that you know,
- 25:35they have that that controls them and constrains them.
- 25:38Whereas the the engineering mindset is that computers are
- 25:41the tools and you control the computer to get it to do what
- 25:46you want. You boss around the computer.
- 25:48So like that was lesson number one that I wanted kids to take
- 25:50away from the game. Programming is bossing around
- 25:53computers or the game is bossing around your parents.
- 25:55That could be more fun. I just say, what kid doesn't
- 25:58want to do that? So, so it was, it was something
- 26:02I invented for the kids. I decided I wanted to learn
- 26:04about Kickstarter, which is kind of a new weird phenomenon.
- 26:07And, and I figured if I could find 500 people, then I could,
- 26:11you know, do I, I think that was the, the, the, the minima I was
- 26:14shooting for. I could get a production run and
- 26:17it would be my degree in Kickstarter ology and it would
- 26:21be a summer well spent. This was I'd taken a summer off
- 26:23from Google to do this, and I was not expecting it to catch on
- 26:27like it did. It wasn't supposed to be a big
- 26:31thing that was going to last for a decade or more.
- 26:33And this master plan with a giant Facebook ad campaign
- 26:37planned. I didn't spend a nickel on ads.
- 26:41There was no advertising. There was no paid marketing.
- 26:43How did it get emailed? A bunch of people and that was
- 26:47pretty much it. I emailed a bunch of people and
- 26:50a bunch. Of people that you knew, were
- 26:51were they media folks? Were they?
- 26:53Literally just went to everybody in my inbox who I'd ever emailed
- 26:57and said, I'm so sorry. I'm never going to do this
- 26:59again. This is the one and only time
- 27:01and e-mail everybody. But there's this thing.
- 27:02Please delete this e-mail if you don't care about it.
- 27:04I just launched it. You know, I hope you'll find it
- 27:06interesting. That was the big, that was the
- 27:09big push. And how many emails do you think
- 27:12you sent out? I had like 1000. 1000.
- 27:16That is literally everybody I've ever emailed my entire life.
- 27:18That was the. That was the.
- 27:19List and from there it caught fire.
- 27:21Some of those people bought. Some of those people told their
- 27:23friends and they bought. And, and the news picked up on
- 27:26it because in 2013, it was not only weird, but controversial to
- 27:31talk about technology education for preschoolers.
- 27:34Like people are like, what do you mean you're teaching
- 27:35preschoolers to code? That's like, that's not right.
- 27:39And, and it, and it became like, you know, it was, it was
- 27:42newsworthy at the time. And so I wound up with a couple
- 27:45of different like periodicals, picked it up and then it started
- 27:48to pick up steam and, and it just passed around a lot by word
- 27:52of mouth. People would forward it.
- 27:53It turned out there was something, there was kind of a,
- 27:56a magic moment that happened that I, I almost missed.
- 28:00I was talking to a friend who runs a small board game company
- 28:04And and I was talking to her about the game and and I showed
- 28:08her an early idea for it and she said, OK, just a couple things.
- 28:11First should be robot turtles, not robot turtle.
- 28:14You need to have four players. That's just the standard for
- 28:17board games. I was like, OK, because I had
- 28:18originally designed this one-on-one with kid and grown
- 28:20up. She's like, yeah, that won't
- 28:22work. And then she said, and just so
- 28:25you know, no board game company would ever pick this up.
- 28:28And I said, how come? And she said, well, the idea
- 28:32that you require a parent to be involved sounds well and good.
- 28:36They've all tried that, and those games bombed because it
- 28:39turns out that what parents say they want is quality time with
- 28:43their kid, but what they really want is to shove the kids in the
- 28:46corner with a board game and get a couple of hours of quiet.
- 28:48And I said, Oh my gosh, could you be the villain of my
- 28:52crowdfunding campaign? Not by name, but I want to say a
- 28:55board game executive told me that this will never be
- 28:59published because parents don't want to play games with their
- 29:02kids. They secretly don't want to.
- 29:04So the only way this game comes into existence is if you want it
- 29:09to exist. So please help me bring this
- 29:12into the world and show that there's a place for this in the
- 29:16Which. So you did switch it from one
- 29:17player to 4 player? But you did switch it from 1:00.
- 29:20Player. But you ignored the other
- 29:21advice, no? No, she was totally right.
- 29:23Her point wasn't that this won't work.
- 29:25What she was just saying is big companies have tried this and
- 29:29failed. So if you just took it was it
- 29:31was more of AFYI. She wasn't trying to steer me
- 29:33away from it. She's like, just so you know,
- 29:35the big companies, if you pitch them, this would would not work.
- 29:37So it's a good thing you're doing Kickstarter.
- 29:39And I was like, can I use that? Can I use that in fact?
- 29:44And so she's a dear friend still, you know, to this day and
- 29:47thought that was amazing and was so excited that she got to be
- 29:50like, you know, a part of that success.
- 29:52And then ultimately a real board game company licensed it and
- 29:56still manufacturers and distributes it to this day.
- 29:58It's Thinkfun, which is a subsidiary of Raffensberger.
- 30:02Yeah, huge, huge toy company. I think we've got a lot of their
- 30:05puzzles in our house, so. Legendary for their puzzles.
- 30:09Yeah. OK.
- 30:10So the company, the the brand still exists.
- 30:13You can still buy the Robot Turtles game today.
- 30:16Yeah. I mean, in the heyday it was in
- 30:18Target nationally, it was in the Museum of Modern Art.
- 30:21It was everywhere. And now they've sort of focused
- 30:24back to, you know, specialty game stores.
- 30:25But like, you know, the somebody just told me they bought a copy
- 30:27of the Exploratorium in San Francisco and you know, museum
- 30:30stores, things like that. Oh, that's fun stuff.
- 30:33OK, so now let's get to sort of the meat here.
- 30:36Glowforge how did the idea for this come about?
- 30:40So I was working on robot turtles.
- 30:42It's a great segue. And a friend said my son loves
- 30:48the turtle so much you should make a 3D version where he can
- 30:53like grab the turtle and shove in his pocket because he's
- 30:55shredded the cardboard square because he wants to carry it
- 30:58with him in his sweaty little hands.
- 31:00And I said, OK, he worked at a Boeing subsidiary that did
- 31:07specialty manufacturing. I was like, all right, great,
- 31:09how do I do this? Let's talk about it.
- 31:11He sort of took me through a virtual tour of the shop floor
- 31:13and all the different machinery that could make these things
- 31:16and, and talked about 3D printing and CNC machining and
- 31:20plasma cutting water jets. And, and he's like, oh, and then
- 31:24there's the laser cutter. I was like, tell me about the
- 31:26laser cutter. And he's like, well, it's kind
- 31:28of in the back, but it's everybody's favorite tool.
- 31:30Not really for production, but for small batch runs for
- 31:32prototyping and, and I was like, OK, well, that's interesting.
- 31:36So I went to a local makerspace and I said I, I sort of
- 31:40remembered this, but I didn't. But my plan was going to be to
- 31:42use 3D printers because 2013, man, they were all the rage.
- 31:46Everybody was going to have a 3D printer at home.
- 31:49So I went to a local makerspace and I said, I want to 3D print a
- 31:53turtle. And he said, no, you don't.
- 31:55This is the owner. I'm like, I'm sorry.
- 31:58He's like, just you're going to be sad.
- 31:59Don't don't 3D print your turtles.
- 32:01Wait, because the quality wasn't very good?
- 32:03What do you mean? And he's like, well, it, which
- 32:05is what's going to happen. He said what you want to do is
- 32:07laser cut it. And I'm like, but he's like, no,
- 32:09no, no, it's, it's, it's only $0.05 a minute, but it's going
- 32:13to take like half an hour per turtle.
- 32:14The first three are going to come out as piles of spaghetti.
- 32:16When it's done, you're going to get this thing that looks like,
- 32:18you know, lumpy plastic and it's one color and you're not going
- 32:22to be happy with it and you're going to be mad at me.
- 32:24So like, please just use the laser cutter.
- 32:26I'm like, but it's $4.00 a minute.
- 32:28He's like, yeah, but it's only going to take you a couple
- 32:30minutes and you won't be mad at me afterwards, which I thought
- 32:32was kind of funny. I'm like, all right.
- 32:34So I, you know, cobbled together a design for a laser cut turtle
- 32:38and handed it to the person who ran the laser and, and also 3D
- 32:42printed 1. He was right.
- 32:43It was ugly and stringy and you know, you know, 3D prints look
- 32:46like kind of like bumpy and, and, and the laser cut thing was
- 32:50kind of cool and I was like, all right, but it's one color.
- 32:53Started thinking about this and I was like, OK, so maybe I got a
- 32:56photo print and I laminate it to acrylic and and then I laser cut
- 33:00that so I can get color. And I started playing around
- 33:03and, and one thing led to another and I wound up with an
- 33:07industrial carbon dioxide cutting laser from
- 33:10manufacturing. You ended up with one, meaning
- 33:12you are now the proudest. Owner of one in my garage
- 33:16installed in the garage. You just, you just yadda, yadda,
- 33:18yadda, the acquisition of this really cool tool, but go ahead.
- 33:24There's a there's a great photo of my very patient wife and I
- 33:26with crowbars on creating this thing in our garage as the kids
- 33:30stood around and laughed. And where did you buy it from?
- 33:32Is this like from China? From some.
- 33:34Yeah, random factory in China. All right, that's a wrecked
- 33:37direct how it import from from this this factory and it was
- 33:42terrible. It took me weeks to get the
- 33:43thing working. It was clunky and I had to like
- 33:46bust out all my old mechanical engineering everything and then
- 33:49the software was was poorly translated and then there was
- 33:53this moment when I push the button and it was magical.
- 33:59Something beautiful came out of it.
- 34:02So I made my run of, you know, turtles for the game and, and I
- 34:07just was playing. So I invited or at this point in
- 34:11my career, I'd gotten to know a fair number of investors and
- 34:13entrepreneurs. And so I invited people over,
- 34:15started making people custom schwag.
- 34:17I would like engrave their logo on their laptop or I'd make a
- 34:19business card holder with their logo on something like that.
- 34:22I just invited people over and everybody had kind of the same
- 34:25response. They look at that and say, what
- 34:26have you done? What is this beast?
- 34:28Why are you? Why am I here?
- 34:30And then I'd do the thing and they'd be like, OK, well, that
- 34:32was pretty cool. Like that last part where you
- 34:35push the button and then it made the cool glowing lights and then
- 34:39a product came out a few minutes later.
- 34:40That was pretty cool. And what material were I working
- 34:42with at this point? I was working with wood and
- 34:45acrylic and leather and all sorts of all sorts of different
- 34:48materials. So people were enjoying not only
- 34:50the output, but sort of the experience of getting to watch
- 34:54the sausage being made, so to speak.
- 34:57Yeah, it is hypnotic. To this day when I make
- 35:00something, which I do at least once a week, my Glowforge is
- 35:04right behind me and it is running regularly.
- 35:06I I will be like hard pressed not to just sort of stare and
- 35:10watch it go because it is it's fast and it's amazing.
- 35:15And one of the folks I invited over connected me with the CTO
- 35:21of his last company with they'd had a huge successful exit, and
- 35:25it turned out that he'd been building a laser cutter in his
- 35:28garage. And so we started talking about
- 35:31what exactly a business would look like that would take this
- 35:35magical technology and make it affordable and easy to use and
- 35:40safe across all the different people that we thought could
- 35:44benefit from it. Crafters, schools, small
- 35:46businesses. OK.
- 35:49So what was the first step beyond that?
- 35:52How did you guys, I mean, did you go back to that factory in
- 35:55China and say, hey, can you guys, can we work together to
- 35:58refine this or we? Talked long and in a depth about
- 36:02it, whether we wanted to work with an existing manufacturer
- 36:05and do something, do something from scratch.
- 36:07My Co founder Mark was and is a man of few words.
- 36:11So we talked about this regularly.
- 36:13But you know, I, I learned quickly with Mark, not to say,
- 36:16are you still there on the phone?
- 36:17Because it was very regular that when we're talking, there'd just
- 36:20be a long period of silence, as he thought like I would, I
- 36:22would. I would mentally count to 30
- 36:24before I would say still there, Mark.
- 36:26He's a deep thinker. Just just to give you a little
- 36:28context And, and, and would often like not mention things
- 36:33that he didn't think were important but would be very
- 36:36surprising. One of those things where after
- 36:38talking about this for about 3 months, he said something about
- 36:40the prototype. And I was like, what do you mean
- 36:41the prototype? And he's like, oh, the prototype
- 36:43in my garage. I was like, then I see the
- 36:45prototype in your garage. Oh yeah, sure, of course.
- 36:47And there it was. And by the way, if you saw that
- 36:52and then you looked at a Glowforge with all the plastics
- 36:54removed, it would be like 70% similar.
- 36:57He had come up with these amazing transformational
- 37:00innovations and how to build this at low cost, high
- 37:03reliability and safe in his garage.
- 37:07Over the course of those three months, that sort of redefined a
- 37:10field where desktop lasers, every desktop laser now owes,
- 37:14you know, a huge design debt to those original prototypes.
- 37:17And and I was like, Oh yeah, no, that's pretty amazing.
- 37:23And so we, we packaged it up and we actually applied to be in Y
- 37:30Combinator and got accepted the sort of, you know, legendary
- 37:34startup. That's a big deal.
- 37:38Yes, Startup incubator decided to decline and not participate.
- 37:44That is unusual, OK. It's, it's funny, the person who
- 37:48was running Y Combinator at the time is now is Sam Altman, who's
- 37:52now running Open AI, who I've known for two decades.
- 37:55Because we both had wireless companies at the same time and
- 37:57used to get together and, you know, exchange stories and
- 38:00advice and so on back when we always sort of kept in touch.
- 38:03And so I talked to Sam about it. And ultimately we decided like
- 38:06we, we didn't think we're at a place where that was going to be
- 38:08right for our business. But you know, still fans of what
- 38:11they do. They, they're, they're very
- 38:12helpful to the companies that participate.
- 38:15But that was the prototype that we like, shipped down there and
- 38:17gave a demo and then ultimately said, no, we think we're just
- 38:20going to go for it. So designed it, found a
- 38:22manufacturer and then launched our crowdfunding campaign.
- 38:26So the prototypes were made by your business partner in his
- 38:29garage. He was figuring out the
- 38:32engineering, kind of reducing the cost and all the different
- 38:34components that go into it. And then when you felt like you
- 38:38were ready, you found somebody, you found a factory that could
- 38:41kind of take those designs, those ideas that you guys had
- 38:45really been refining in in the background and they they would
- 38:48manufacture them for you. Exactly.
- 38:51We actually worked with Flextronics, which is a, you
- 38:54know, a Fortune 500 manufacturer who was introduced by, by
- 39:00somebody I'd kept in touch with who I met at my first company
- 39:04while I was at the earliest stages of trying to fundraise.
- 39:07And actually, I'm going to just pause for a minute because
- 39:09there's a sub current to what I'm saying that I think should
- 39:13be said out loud. I think too often is left
- 39:15unsaid, which is by the time I was building Glow Forge, I had
- 39:20every kind of privilege in the world.
- 39:23Like starting out as a white man, I'm way more likely to get
- 39:27investment funding. That's been an advantage through
- 39:29my entire career. But at this point, I had this
- 39:31network of people who I've been in touch with over the years.
- 39:34I had investors, I had entrepreneurs and every part of
- 39:37the globe forge story was one of all the good fortune I'd had
- 39:40along the way. Like pitching it to
- 39:42entrepreneurs who I knew talking to VCs first investment round
- 39:46was calling up a bunch of angels and saying, Hey, you want in And
- 39:48I'm going like, sure, I made money on spark buy great, let's
- 39:51let's do it again. Like it was easy mode.
- 39:54And I say that because for my first company, photo Bucket,
- 39:59just born as Antella, it was so brutally hard.
- 40:04And I got so frustrated with the entrepreneurs who I went to for
- 40:07advice telling me about their life on easy mode.
- 40:11Like, yeah, you just call up the investors who I know.
- 40:13And I just. You know, sure.
- 40:14Just talk to your network. I'm like, I don't have any
- 40:16network. Just, you know, just float the
- 40:19idea. But I'm like, I don't know how
- 40:20to do that. And I don't know these people.
- 40:21And it was nine months of me pitching everybody I could find
- 40:27who I could corner, who I could like, you know, cold call on
- 40:30e-mail before I raised the first dollar for my first company.
- 40:34It was so brutally difficult. And I swore to myself that when
- 40:37I finally cracked the code and figured out how to do it, I
- 40:39wouldn't be the jerk who just pretended it was easy.
- 40:41I wouldn't keep the secret to myself.
- 40:44That's why I wrote the book. That's why I wrote the book.
- 40:47Because. When I talk to people about
- 40:50that, they're like, how did you do Glowforge?
- 40:51And I'm like, please don't ask me that because that's not gonna
- 40:54be helpful to you. The thing that's gonna be
- 40:56helpful to you is how did you, like, how did you get the first
- 40:58one done? And it was hard.
- 41:01So I, I talked about this in like grueling detail, but it was
- 41:06the process of just trying everything.
- 41:09And when it finally clicked and I finally broke through, it was
- 41:14running into somebody in, in a, in Barcelona at a wireless
- 41:20conference who I'd been, you know, low key cyber stalking for
- 41:24the previous five months. Not cyber.
- 41:26I just stuck like trying to get meetings, trying to find, trying
- 41:29to meet in person. And they kept just sort of
- 41:31blowing me off. And then I sort of ran, I saw
- 41:33them and then I sort of ran into them at the bar, struck up a
- 41:37conversation and it was an event.
- 41:40And oh, you're in Seattle. Oh, what a coincidence.
- 41:42Oh my gosh, You work in wireless.
- 41:43What a coincidence. We should get, we should talk
- 41:46sometime. That was the first check that
- 41:47cleared. And it was really like, you
- 41:50know, how did I breakthrough the wall?
- 41:51By banging my head against it for nine months, that was.
- 41:55So what's the? Practical advice that somebody
- 41:58is going to find from reading Hot Seat, the start up CEO
- 42:02guidebook. Is it just that this is hard and
- 42:05you got to just take 1000 swings or or is there some?
- 42:09Are there any shortcuts in there?
- 42:11So here's the piece that that I'd say was most challenging for
- 42:16me that I wanted to the the greatest gift I got that I that
- 42:20I wanted to pay forward with the book, which is every time I
- 42:24heard these success stories, they were just so stories.
- 42:28They were like, and then this happened and that happened.
- 42:30And then the funny happened. Hooray, we're all really smart.
- 42:33Or I saw this obstacle and I figured out the solution and
- 42:36Hooray, everybody's so smart. Occasionally I would see these
- 42:39stories of failure and they would just be stories of abject
- 42:42failure. Like I tried and tried and
- 42:44tried. Nothing ever worked and it sucks
- 42:45and nothing's going to happen. And what I didn't see enough of
- 42:49is how you is how basically success looks like months or
- 42:56years of failure with no steps forward, no glimmers of hope,
- 43:01and then suddenly success like overnight success 10 years in
- 43:06the making is so common in this industry.
- 43:10Or 10 months in the making or whatever it is.
- 43:13I have a friend who this story unfolded after the book was
- 43:18published. But but it would have fit right
- 43:20in. He he started a company in 2020,
- 43:25eleven or thereabouts and raised an investment round.
- 43:28It was the first investment I ever did.
- 43:30I don't do many investments, but I love this guy.
- 43:33And and you know, I think I said he's too stubborn to lose, lose
- 43:36any money and tried to raise another round, failed.
- 43:39Tried to sell the company, failed.
- 43:42Got profitable, grew, repeated the process, tried to raise
- 43:45money, tried to sell the company, failed.
- 43:49Almost 10 years later, called me up and said, Dan, I'm so sorry.
- 43:51I'm going to sell the company and you're only going to get
- 43:53your money back. And I'm like, you don't need to
- 43:56apologize to me, buddy. Like congratulations.
- 43:58I'm so happy to be like, that's the way this goes.
- 44:00It's wonderful that I'm going to get some.
- 44:02I don't care. The money went out when I
- 44:04invested it and anything comes back as a blessing.
- 44:06And then he called back and said the deal fell through.
- 44:08And then three months later, COVID hit.
- 44:11And by the way, this was an in person events company.
- 44:15I mean, software for in person events.
- 44:17And his revenue went to zero overnight.
- 44:19Everybody cancelled. And then seven months later, he
- 44:24called me up and said, Dan, I need your address.
- 44:27Said OK. And he said, I'm going to send
- 44:29you a check. And I'm like, oh, that's great,
- 44:32what happened? And he said I sold the company
- 44:35for A50X return hard pivot to online events, massive overnight
- 44:43growth, overnight success, 10 years in the making.
- 44:49Unbelievable, Utterly unbelievable.
- 44:51That guy bashed his head against the wall until the wall moved.
- 44:55That's an incredible story. And so, no, I wish I could tell
- 44:58you, read the book, find the shortcuts.
- 45:01What I can tell you is read the book, see that every single one
- 45:05of the problems you're facing is of a family that everybody's
- 45:07faced before. Because you'll see all these
- 45:09stories of folks working towards it, sometimes with success,
- 45:13sometimes with failure, the approaches they used.
- 45:16Because there are some of these common threads, but the threads
- 45:19are things like taking a different approach, taking the
- 45:22creative challenge, being inspired by the approach
- 45:24somebody else took, and applying it to your own circumstance.
- 45:27And knowing that just because it looks like you're not getting
- 45:30anywhere doesn't mean that it's hopeless.
- 45:34And at the same time, entrepreneurship means signing
- 45:37up for a long slog before you get to the other side.
- 45:41You know, this is probably a a fantastic segue into what I call
- 45:46my favorite question of the interview.
- 45:48And I usually save it for a little bit later in the
- 45:51interview because we still haven't talked about Glow Forge
- 45:55in detail in terms of all the cool products now that you guys
- 45:58offer and what they can do and the variety of different price
- 46:00points. And we are going to come back to
- 46:02that, I promise. But you teed that up so
- 46:06perfectly. I I love to ask a question about
- 46:10a serious challenge that you've overcome, personal or
- 46:13professional. They maybe they intertwine how
- 46:15you got through it, what you learned for exactly the reason
- 46:18that you were just talking about Dan.
- 46:20People hear these stories or they see sort of the polished
- 46:24version of kind of the quote UN quote finished product.
- 46:27Oh, look at, you know, Dan sitting up there on the hill.
- 46:30You know, he's got a nice house, a nice car, like, you know, glow
- 46:33forge, great company, it's booming.
- 46:35Lots of employees like, things just come easy to him.
- 46:38Like this has just been a stroll in the park and they don't know
- 46:42all those times that you bashed your head against a wall,
- 46:46whether it was with Gloforge specifically or something else
- 46:49or a personal event that almost broke you.
- 46:51And so yes, I, I loved, loved, loved that story that you just
- 46:56shared about your friend. And now I'm going to invite you
- 46:59to share your own version of that for the benefit of our
- 47:03listeners. Absolutely.
- 47:05And I'm going to start with the disclaimer and I mentioned this
- 47:07before in in our country it is not fair.
- 47:11But being white and being male means it's on easy mode.
- 47:15White male founders are are funded disproportionately.
- 47:19I can't remember what the ratio is, but vastly
- 47:22disproportionately to anyone else.
- 47:23So I already had it about as easy as as you can get from.
- 47:27If I could just interrupt for a second because I, I want to
- 47:31layer something else on top of that.
- 47:33It's something that, you know, I feel like I've been really
- 47:35fortunate with as well, is that I grew up in a household where
- 47:38education was valued and made accessible to me.
- 47:43And growing up, I sort of took that for granted because that
- 47:47was the case for a lot of people, you know, that I knew
- 47:49around me, my social circles. I've gotten older, I realized
- 47:52that that's not the case for everybody.
- 47:54And so I just wanted to throw that in there as well.
- 47:57Yeah, as the kid of two professors, education was just
- 48:00in the air. And so I see this not as woe as
- 48:03me, but as, Oh my gosh, even for somebody who has all the
- 48:07advantages, it's still hard. And I had it comparatively easy.
- 48:11But actually, when you talk about when you talk about that,
- 48:14I the other thing I go back to is the story.
- 48:16I don't tell that much because it's, it doesn't have a happy
- 48:21ending. And it's frankly kind of
- 48:22embarrassing. When I was working at Microsoft,
- 48:26after a couple of years, everybody was starting a
- 48:29company. Like you couldn't sneeze.
- 48:31And, you know, the three company start-ups were getting venture
- 48:35capital because this was the heyday of the Internet boom.
- 48:39And the everybody was complaining about how easy it
- 48:43was for people to raise money and how VCs were throwing their
- 48:46money at anything. So I said, why not me and with a
- 48:52colleague put together a business that was a new
- 48:56massively multiplayer online role-playing game deserve, you
- 48:59know, World of Warcraft. I think it had not come out yet.
- 49:01EverQuest was state-of-the-art. So this is like early MMORPG, we
- 49:06know what we're doing. Like we're not game designers.
- 49:10Had some software experience from Microsoft and we were young
- 49:14and brash and thought that, you know, we knew everything and
- 49:18decided we were going to go. So we built documents and
- 49:20pitched decks and everything else and then started trying to
- 49:24pitch the company. And I just was at a total loss.
- 49:30I I think I found after, you know, nine months, 912 months of
- 49:35trying, I think I found one investor who would take a call
- 49:38and it was like a 30 minute slot cut short to 25 minutes.
- 49:42And then, you know, OK, great. Thank you.
- 49:45Never followed up and ghosted me.
- 49:46So not just one investor who would give money, one investor
- 49:49who actually would get on a call with you, OK.
- 49:52Yes, I couldn't. I'm like, I was so hopeless.
- 49:56I like couldn't find anybody to talk to.
- 49:59I had no idea how to go about it.
- 50:01I was like cold emailing people and calling and asking friends
- 50:04for introductions and like nothing worked.
- 50:08Somewhere along the course of doing this, I talked to a friend
- 50:12who who said, have you played EverQuest?
- 50:15Because that's kind of the state-of-the-art.
- 50:17And I said, and I've read a lot about it.
- 50:19It's like, well, you have to like actually play it and get
- 50:21the experience that you, you know, you know what the
- 50:23state-of-the-art is, which is like, here's the thing about me,
- 50:28a personal weakness. I have a terrible addictive
- 50:31personality when it comes to video games.
- 50:33Like I will be lost in a hole when a new video game comes
- 50:37around, and this was like going up to an addict with a needle
- 50:41and this sounds like a joke. I wound up abandoning all hope
- 50:46of pursuing that, basically neglecting my job and for nearly
- 50:51a year, spending about as much time playing EverQuest as I did
- 50:57on my job. I was a bump on a log, deeply
- 51:00depressed. This had fallen apart unhappy
- 51:02with the work I was doing and this got so bad that my then
- 51:07girlfriend now wife staged an actual intervention and said you
- 51:12are destroying your life and you have to fix this no ifs ands or
- 51:16buts. And I had to quit this game cold
- 51:19Turkey. Which again sounds like a joke
- 51:21but was one of the more one of the more challenging things I've
- 51:26I had I've had to do. And it was sort of the last like
- 51:32in this sort of giant mound of failure.
- 51:35It was the last like, Nope. Even this thing that I sort of
- 51:38pivoted my head like I always was playing it thinking like,
- 51:40but I'm, I'm really sort of doing research for this thing
- 51:42that I long since abandoned and done.
- 51:45But it was like this more. I had to acknowledge that it was
- 51:47all just a hill of failure at the end of this.
- 51:51And it was really difficult. I sunk my energy back into my
- 51:57job at Microsoft. Spent another two years there.
- 52:01The same friend ironically reached out and said I'm doing
- 52:03this start up. Had nothing to do with games.
- 52:05Doing this start up, that's a cell phone name for teenagers.
- 52:09We need a product manager and left to get my first taste of
- 52:13what it was really like working at a start up.
- 52:16Made my first connections in the start up world.
- 52:18Not my first investors, folks who ultimately did not invest or
- 52:23were helpful, but helped me understand what I needed to look
- 52:25like and what the shape of the problem was and built up some
- 52:28skills that would pay off in a big way later on.
- 52:31But man, like what an awful, like I look back and I'm like,
- 52:34what an awful way to spend a year and a half, two years of my
- 52:37life. And also probably part of what
- 52:40made me who I am today. So up to that point or maybe
- 52:44since then, Dan, have you noticed that you have addictive
- 52:47tendencies for other things outside of video games?
- 52:50Or was this sort of the one place where that showed up?
- 52:55Thank heavens, no. I find blackjack and most
- 52:58gambling boring and I don't come within a mile of any sort of
- 53:01recreational substances because I don't want to test that one
- 53:03out. And and for some reason I'm just
- 53:07really wired to love video games.
- 53:09Which is funny because I have a bunch of friends now in the
- 53:12video game industry who tell me about their games.
- 53:14And I'm like, I'm very happy for you and I'm not going to try it.
- 53:17You can't go there. Nope.
- 53:20So you don't play video games at all anymore?
- 53:220. OK.
- 53:24And, and I have a son who loves them and wants to play them all
- 53:27the time and is honestly like, I've, I've been torn about it.
- 53:30He's a little mournful. He's like, they had to be really
- 53:32fun to play games together. And I'm like, we're going to
- 53:34play board games together and we're going to do like Dungeons
- 53:37and Dragons together. And we will do all sorts of
- 53:40other things. And you can tell me all about
- 53:42your games and I will live them vicariously through you.
- 53:45But for my own health and safety, I I cannot go there.
- 53:50So when this intervention was staged and did you have an
- 53:57immediate recognition of, yes, you're right, I need to do this
- 54:01or was there still some resistance from you at this
- 54:04point? I was so I had so much self
- 54:09shame about it that I knew immediately that it was true.
- 54:12And and because it came from, you know, somebody who I love
- 54:17deeply, I was, you know, I didn't, I didn't fight back
- 54:19about it, but I definitely said, OK, I'm going to have to think
- 54:23about this and went off and thought about there was just no
- 54:26reasonable way that I could say that that was wrong.
- 54:29And I kind of had a little talk with myself and I'm like, you
- 54:32know, this is one of the biggest problems in my life right now
- 54:35and simultaneously the hardest and easiest to fix.
- 54:39All I have to do is hit the delete button.
- 54:43And you know, the way these things work, if, you know, you
- 54:45spend huge amounts of time invested in this thing and it
- 54:48feels like a big investment and everything else, I was like, you
- 54:51know, I'm two clicks away from making this decision and I can't
- 54:56really justify to myself I shouldn't do that, so I did.
- 54:59So you did and then what? Like, was it in an immediate
- 55:04sort of like relief, a release of that shame?
- 55:08Like, were you able to come out of the death spiral at that
- 55:11point? No, it was, you know, the, the
- 55:13sort of depression had been filling itself with this
- 55:16artificial bubble. And now I had to grapple with
- 55:19the depression and with the like the shame and the feelings about
- 55:23because I didn't have this thing to occupy my mind in time.
- 55:26So I focused back on work and I threw myself into the work I was
- 55:31doing and, and I was puttering around a little with
- 55:34electronics. And so I spent more time on that
- 55:37I, or I had been before this started.
- 55:38So I spent a little more time with that.
- 55:40I like spent more time with friends who I've been
- 55:42neglecting. And I basically just sort of
- 55:44want an aggressive fill up the empty void with things that I
- 55:47wasn't going to feel shame about and and got myself back to a
- 55:51place where I I felt like the old me.
- 55:55Were there other things that kind of helped you through this
- 55:58process? Was there therapy or
- 56:00medications? Meditation.
- 56:02Extra proponent of therapy, but I had not like was not at the
- 56:07time, I had not seen the light. And no, I've never been one for
- 56:12for meditation. I'm terrible about exercising.
- 56:18And yeah, no, it was all just working through it.
- 56:22I have a therapist now who's wonderful.
- 56:24And I like, I like to think that if I had one, then I would have
- 56:27made it through there faster and with fewer bumps.
- 56:31But but no, I just kind of had to given the place where I was.
- 56:35I just had to figure it out for myself.
- 56:38And thank goodness, with the loving support of my partner.
- 56:42And you said earlier that you look back and you recognize that
- 56:47you are where you are now in part because of what you went
- 56:50through. What do you mean by that?
- 56:52I mean, that was the thing that it taught me some significant
- 56:58humility, which is, you know, sometimes in the start up world
- 57:02is in rare, rare supply taught me that it was going to be hard.
- 57:06So I went to go do it myself. I felt like there was a reason
- 57:10that I beat my head against the wall for nine months without
- 57:12giving up. There's the thing, you know, in
- 57:14sales, you, you build a funnel and you're like, we're going to
- 57:18talk to this many people and move this many people to this
- 57:20stage and this many people to this stage, etcetera.
- 57:23And my experience with trying to raise money as an early stage
- 57:26company is there's no funnel, there's no progress that's
- 57:29measurable. You could have, you could have a
- 57:34dozen meetings with an investor that lead to nothing and one
- 57:39meeting with an investor that leads to a check.
- 57:42By the time I actually sort of broke through, what I found was
- 57:45that there was no meaningful process that would predict
- 57:48success. And it's, it's an odd sort of
- 57:51thing where many investors don't have an incentive to say no, but
- 57:56they have every, they have every incentive to keep the
- 57:58conversation going. Because if you have some
- 58:00progress, if something bumps, if they see some sign that they
- 58:02like, you know, they, they have an option.
- 58:05If they say no, then they lose the option.
- 58:08And so it's led to this terrible habit where investors tend to
- 58:13just string along or go quiet or whatever else.
- 58:16A friend of mine, James Cham, who's an investor with
- 58:20Bloomberg, one of the good ones, has a note that I think he got
- 58:23from some other investor that that he said is on a whiteboard
- 58:28of his favorite quotes that says you have to tell the
- 58:32entrepreneur that you passed. You can't just whisper it into
- 58:35your pillow. And every entrepreneur I know
- 58:37who's raised money from VCs says, Yup, every VC needs to
- 58:41hear that because that is a, a, a major problem.
- 58:46You just don't know. You don't get the feedback or
- 58:49you get only positive feedback, but no checks.
- 58:52And so understanding just how difficult that was going into
- 58:56it, it let me let me handle it, right.
- 58:58I'd actually set a budget both sort of literally and
- 59:01metaphorically with my then girlfriend, now wife, for how
- 59:07much we could afford to pursue this dream.
- 59:10And so it was like I was going to have a year to go after this,
- 59:13and after a year I was going to give up.
- 59:16That was really important because there's a lot of ideas
- 59:19that don't work and there's a lot of people who cannot raise
- 59:22investment, and you don't know if you're one of them until you
- 59:24beat your head against that wall for a while.
- 59:26In fact, you never know if you're one of them because maybe
- 59:28one more Flack with your forehead would would get through
- 59:31the other side. So you have to decide what your
- 59:33risk tolerance is. The stories that that give me
- 59:37the cold shivers, The ones where people mortgage their home and
- 59:40run up the credit card debt and do everything humanly possible
- 59:44to make the ideas work 'cause you only hear the ones where
- 59:46they worked. You don't hear the ones about
- 59:48people who who launched themselves into bankruptcy and
- 59:51failure and, and worse, either because they were unlucky, which
- 59:57is a very real possibility, or because the idea entrepreneur,
- 1:00:02whatever weren't the right combination.
- 1:00:03And you know, it was never going to work.
- 1:00:06And there's no way to know the difference between those.
- 1:00:08So you have to, as I learned, you have to decide what it is
- 1:00:12that you're willing to risk. And the answer probably
- 1:00:14shouldn't be everything. The answer probably needs to be
- 1:00:18something that you can afford to risk.
- 1:00:21And that might mean giving up too soon.
- 1:00:24You know, entrepreneurship lore celebrates those who didn't give
- 1:00:27up ever for any circumstance. And you don't find me there.
- 1:00:30I'm not the guy who says everyone should start a company.
- 1:00:32I'm not the guy who says never give up.
- 1:00:33I'm not the guy who says, you know, trust your trust your
- 1:00:37dreams. That always leads you in the
- 1:00:38right direction. I'm the guy who says, look, I
- 1:00:40had a lot of privilege that I got to that I got to try this
- 1:00:43and not everybody does. And if you get to, that's
- 1:00:45amazing. You have the passion and
- 1:00:47commitment to want to put yourself up to that sort of that
- 1:00:51sort of potential difficulty and misery and abuse.
- 1:00:54That's awesome. Know your limits because it
- 1:00:57doesn't work for everybody and it's just one, just one course
- 1:01:01that you can go. That's super helpful.
- 1:01:04I appreciate you opening up and sharing that, Dan.
- 1:01:06OK. So I'd be remiss to all the
- 1:01:09listeners if we didn't get back to Glowforge and kind of paint
- 1:01:12the picture of where is the company today.
- 1:01:15It has been so through all my life.
- 1:01:19I've noticed that of all the privileges that I've had, one of
- 1:01:23the ones that that I didn't really account for so much I
- 1:01:28didn't realize is that I always was somebody who knew how to
- 1:01:33make things. I was always tinkering in the
- 1:01:35garage. I was always taking things
- 1:01:37apart. I was always putting things
- 1:01:38together. I learned just enough coding to
- 1:01:40be dangerous so I could build a, you know, rough prototype idea
- 1:01:43of something. And almost everything, almost
- 1:01:46every opportunity that I had came in some way from the
- 1:01:50empowerment of feeling like I could make things in this world.
- 1:01:55So building a company empowers other people to make things very
- 1:02:00much feels like my calling, very much like I'm going to take this
- 1:02:04gift I've been given, package it up and give it to as many people
- 1:02:08as I can. So what we do is we take the
- 1:02:13ability to be an amateur woodworker, an amateur leather
- 1:02:19craft or an amateur paper cutter and we put it in a box.
- 1:02:23When you get a glow for it, you get a tool that instantly
- 1:02:26catapults you to the point where you can make beautiful projects
- 1:02:29that you are proud of in anyone of dozens of materials.
- 1:02:33Now, I made, I made a wallet when I when I got my lasers, one
- 1:02:38of the first projects I did, I made it from leather.
- 1:02:41It was a great wallet. I got compliments and I've like
- 1:02:44generation 3 of said wallet in my pocket right now.
- 1:02:48Would you, if you looked at it, would you say this was made by a
- 1:02:52professional leather crafter, you know, to Dan by this or
- 1:02:54making himself? No, you'd say, oh, wow, this is
- 1:02:56really cool that you made this yourself.
- 1:02:58It's like amateur. You're good at it.
- 1:03:01You're not great at it, but you're good at it.
- 1:03:03And it's something that you can be proud of.
- 1:03:06And you get there immediately. And then it's the tool that
- 1:03:10scales with you so that as you grow your skills, as you become
- 1:03:14more capable, it lets you work more quickly and with more
- 1:03:17sophistication. So we have master leather
- 1:03:20crafters who use their Glowforge to do all the basic work so they
- 1:03:23can focus on the little bits of Polish and shine that make it
- 1:03:27truly sublime. But it means that kids as young
- 1:03:32as kindergarten can go design things that they're proud of
- 1:03:35that are useful. They're physical objects that
- 1:03:39interact with the world. I mean, I'll give you a stupid
- 1:03:41example. I went to a friend's house who
- 1:03:44who was a big fan of wine, and that's not something I know a
- 1:03:48lot about, but I got what I thought was a nice bottle of
- 1:03:50wine. I put some work into it and he'd
- 1:03:52sent me earlier a picture of his family Crest, which he just
- 1:03:56found. And so I grabbed a couple of
- 1:03:59slate coasters that cost like $0.99 each, threw them in the
- 1:04:02globe forge and engraved the family Crest on them.
- 1:04:05I was almost a little miffed when he basically ignored the
- 1:04:08bottle of wine and just flipped out about the coasters.
- 1:04:12The next time we went to the house for dinner, the coasters
- 1:04:14were on display on the mantle because he was so excited about
- 1:04:18the coasters. Because creating something
- 1:04:21that's truly unique and personal is just different.
- 1:04:26It's different if you're a business.
- 1:04:27It's different if you're if you're a a crafter, if you're
- 1:04:30gifting for making things for your family.
- 1:04:32It's different if you're an educator and empowering your
- 1:04:34kids with it. It is a kind of superpower that
- 1:04:38not enough people in this world possess.
- 1:04:41And if I can get a little like, you know, crazy wild eyed
- 1:04:43founder on you, we are all humans, homo sapiens.
- 1:04:47We are defined by being tool users.
- 1:04:49And it is a weird quirk of recent history that we don't
- 1:04:54make things for ourselves anymore, right?
- 1:04:55Like a couple 100 years ago, for all of human history, if you
- 1:04:58wanted something, you made it or you traded it for something that
- 1:05:01you made. But you know, assembly lines and
- 1:05:04factories being what they are, technology took that away from
- 1:05:06us to the point where it's now quirky and odd to make things
- 1:05:09yourself. And I think we should have that
- 1:05:11back. It's like we were in a world
- 1:05:14where people didn't have kitchens and would only buy pre
- 1:05:16made meals. No, no, no, we should be able to
- 1:05:18make things for ourselves. And that's what I love about
- 1:05:20Glowforge. It lets people do that.
- 1:05:22So when people go to glowforge.com and what will they
- 1:05:26all your all your your equipment is manufactured here now in the
- 1:05:30US is that right now we have. 2 main product lines.
- 1:05:33We have our our our performance series, which are the larger 40
- 1:05:39and 45 Watt lasers that are amazing for businesses and for
- 1:05:42schools and anywhere where they're going to get heavy use,
- 1:05:44where they're going to work faster when you want to work
- 1:05:47through thicker materials. And we have our craft series
- 1:05:49which are smaller and use a diode laser that's about 6
- 1:05:52watts. And so those are great for home
- 1:05:55crafting and personal creativity and for getting started in the
- 1:05:58world of lasers. And sorry and the it's the
- 1:06:02performance ones that are made in the US The craft series are
- 1:06:05made in Mexico where it's just a larger scale assembly line and
- 1:06:09where we can get the sort of scale that we need there.
- 1:06:12And So what will people find in terms of price ranges on these
- 1:06:17devices when they go to glowforce.com?
- 1:06:19You can anywhere from at the top end $7000 for a machine that you
- 1:06:24can build a business around or run all day.
- 1:06:26You know, students through non-stop all the way down to
- 1:06:29$700.00 for the Glowforge Spark, which is a small personal
- 1:06:32machine that you can put in your office and and run while you're
- 1:06:36working. That's pretty cool.
- 1:06:39Diane, I've just got one more question for you.
- 1:06:42But before I ask you, I want to do 2 things.
- 1:06:43First, I'm going to invite everyone listening to pause just
- 1:06:46for a second. Hit the follow button on your
- 1:06:48favorite podcast app. Had a great conversation here
- 1:06:51today with Dan Shapiro from Glowforge.
- 1:06:53I want you to continue to get more wonderful interviews like
- 1:06:55this in your feed. Dan, I also want to let people
- 1:06:58know either the best way to get in touch with you directly or to
- 1:07:02follow your story or continue following that of Glowforges.
- 1:07:06What would that be? Yeah, if if you want to learn
- 1:07:09more about Glowforge, you can just go to glowforge.com.
- 1:07:12There's a little form at the bottom and I what you're
- 1:07:14interested in and, and what you're curious about with your
- 1:07:18Glowforge, you can fill that out.
- 1:07:19And you can find me on the site formally known as Twitter under
- 1:07:24Dan Shapiro, or on LinkedIn is Dan Shapiro.
- 1:07:27Love it. And we'll find links for all
- 1:07:29those and put them in the show notes for folks.
- 1:07:31But last question for you, Dan, you and I reconnect in a year
- 1:07:35and you are super excited you are celebrating something.
- 1:07:38What is that thing that you're celebrating a year from now?
- 1:07:42I mean, the thing I'm going to be most excited about is that
- 1:07:45the folks who own a Glowforge, So side note, Glowforge use a
- 1:07:49cloud service. We improve it constantly.
- 1:07:52There's a free service that's free for life.
- 1:07:54It's all you need to get started and we're always adding new
- 1:07:56features to it. There's a paid service for
- 1:07:58$20.00 a month where you can get access to millions of projects
- 1:08:02and fonts and designs and these incredible AIR tools that help
- 1:08:06you realize and bring your ideas into life.
- 1:08:09We're launching new ones and enhancing the ones we have all
- 1:08:11the time. The thing in a year that would
- 1:08:13be most excited about is that our customers say this year I
- 1:08:17can make something that I did not think was possible last
- 1:08:20year. The tools you're giving me are
- 1:08:22enabling me to create change in the world around me.
- 1:08:26Great things that I love and that I'm proud of, that I
- 1:08:29thought were beyond me, that I didn't think I could do.
- 1:08:33That's what gets me excited, giving people those creative
- 1:08:36superpowers. Dan Shapiro from Glow Forge, I
- 1:08:39want to be the first to thank you for sharing both your time
- 1:08:42and your story with us today. I really appreciate it.
- 1:08:44Thank you so much for having me, Anthony.
- 1:08:46It's been a pleasure. Folks, that's a wrap on another
- 1:08:49episode of the Inspired Stories podcast.
- 1:08:51Thanks for learning with us today.