Stanford Technology Ventures Program; Arbor Advisors
Stan Christensen is a partner at Arbor Advisors, an investment banking firm where he negotiates on behalf of mid-market technology companies. He has nearly twenty years of experience in both transactional and operations roles and has worked on hundreds of transactions. Before starting Arbor, he was the General Manager of Eazel, a Linux-based software startup. He started his career in corporate finance on Wall Street, and then worked for ten years with CMG, a negotiation advisory firm affiliated with The Harvard Negotiation Project. In this capacity he worked with corporations and governments-advising, negotiating, and mediating transactions and conflicts. In 1996 he was selected as a Kellogg Fellow for his work in the non-profit and public sectors. He is a member of The Council On Foreign Relations and currently teaches a course on Negotiation at Stanford University in The School of Engineering.
He holds an M.B.A. from Harvard Business School and a B.A. from Brigham Young University.
Related Links: stvp.stanford.edu arboradvisors.com/
Last Updated: Mon, Oct 30, 2006
Dan Springer, CEO of Responsys, offers advice on how to raise venture money. Springer suggests that raising money depends on three factors: 1) What you have to offer, 2) The state of the venture market, and 3) An entrepreneurs long term goals. Springer argues that it is challenging for an entrepreneur with little experience or just an idea, as opposed to a business, to raise money and advises that entrepreneurs might be well served to raise money when they have a stronger value proposition. In addition, Springer also recognizes that the state of the venture market also affects the ability of an entrepreneur to raise capital. Finally, Springer proposes that entrepreneurs consider the value of the long term relationship with venture investors when bargaining on venture deals and highlights the benefits of leaving enough room in a venture deal to ensure investors get a good return.
Dan Springer, CEO of Responsys, talks about the potential conflicts of interest between entrepreneurs and investors. Springer advises entrepreneurs to discuss these situations with venture investors in advance of making a deal so that all parties understand the potential outcomes upfront.
Dan Springer, CEO of Responsys, discusses the benefits of working with attorneys in an entrepreneurial environment. In terms of choosing your own counsel, Springer highlights the importance of finding a great attorney with deep expertise and that you trust. In terms of working with other attorneys, Springer provides advice to entrepreneurs working with challenging individuals.
Dan Springer, CEO of Responsys, shares tactics for nurturing and protecting human capital. Springer argues that managers often make the mistake of giving unrewarding but urgent work to their best performers, which is a short term strategy that can lead to burnout and the loss of a company's best human capital. Instead, managers and entrepreneurs should focus on the long term and give their most rewarding tasks to star performers in order to nurture and protect them, because ultimately these team members provide the most value to the company.
Dan Springer, CEO of Responsys, talks about the challenges of dealing with problematic employees. Springer suggests that it is easier to deal with clear under-performers whereas the greater challenge is to address team members who have both positive and damaging qualities. Springer suggests that the best response to these situations is to have a clear and frank conversation with the team member which gives them an opportunity to improve.
Dan Springer, CEO of Responsys, provides counter-intuitive advice to young people by suggesting that when starting your career you should negotiate for the lowest possible title and salary at the organization of your choice. Although Springer provides this advice light-heartedly, he does so to emphasize the importance of setting up a situation in which you can exceed expectations and can rise to the top. In addition, he warns about the dangers of negotiating to hard for higher salary or positions which potentially make organizational members uncomfortable or lead to expectations that are difficult to meet.
Dan Springer, CEO of Responsys, suggests strategies to retain good people. Springer suggests that the most important strategy is to help team members feel excited about their career path, whatever that might be. In addition, Springer has found that smaller rewards throughout the year for excellent work have a large effect in helping employees feel appreciated and want to stay with the company.
Dan Springer, CEO of Responsys, acknowledges that the most frequent and important negotiations often occur with customers. Furthermore, Springer advises that the keys to a successful negotiation with customers include: 1) Preparation to discover what the customer wants and 2) Identifying the few things on which you will stand firm.
Secretary Shultz discusses what he learned about negotiation while serving in both the Nixon and Reagan administrations. Topics covered include how to know when to go to the negotiation table, the role of trust in negotiation, confronting the dilemma of when to use force in a dispute, as well as the Secretary's opinions on negotiating in the current political landscape. Current events covered include the Arab Israeli conflict, the war in Afganistan, the fall of the Soviet Union, and how the media has changed the modern negotiation landscape. 
Stanford lecturer and Arbor Advisors Managing Director Stan Christensen discusses legal issues related to startups and entrepreneurs with attorney Martin Nichols, partner at DLA Piper. The conversation covers selecting and working with legal advisors, issues of compensation and negotiation, and the need for entrepreneurs and companies to always seek practical and efficient advice.
Attorney Martin Nichols shares subjective early filters to use when trying to find a proficient attorney. Beyond these basic measurements, a difference in quality will be found in each attorney's ability to get deals done. Nichols suggests finding an attorney who can also be a solid advisor and a true value-add for your company.
Individuals or startups seeking legal advice need to obtain solid referrals on all prospective attorneys. Martin Nichols, partner at legal firm DLA Piper, believes entrepreneurs often don't need big legal teams, but should always seek efficient legal teams.
Billing is less of an issue, if you build a relationship with legal advisors you trust, says attorney Martin Nichols. Entrepreneurs should share their acceptable fee ranges with attorneys, but they may also be able to work out fee caps and flat rates for services. Clients can help ensure the best service from attorneys by showing mutual respect through offering referrals and paying bills on time.
Attorney Martin Nichols suggests separating legal issues from business issues before entering into negotiations. This strategy is often very helpful, particularly in face-to-face negotiations. In meetings and conference calls, Nichols sets out an agenda and key issues, and then tries to come up with a basket of issues for the business people to try and work out with their counterparts.
Attorney Martin Nichols believes clients should receive the best practical advice from an attorney, even when the client is in a legally superior position during a negotiation. Nichols shares an anecdote where he needed to explain to a client the practical value of not fighting for a previously agreed on payment, to avoid being exposed to legal costs of an even greater amount. 
According to attorney Martin Nichols, entrepreneurs need to have a great deal of trust when sharing intellectual property with venture capitalists, as VCs often will not sign non-disclosure agreements. If a client is working on patentable technologies, Nichols suggests trying to button up those issues before going to meetings.
The industry norm is for attorneys not to take equity or a board seat as forms of compensation from startups, says attorney Martin Nichols. In Silicon Valley, fee deferrals are far more normal. Big legal firms may be less likely to work with small startups due to time and revenue constraints, but a smaller firm may not be able to provide a startup with everything that is needed when it comes time for big transactions, such as mergers and acquisitions.
Do as much informational interviewing as you can, advises Arbor Advisors partner Stan Christensen, who, through the practice, learned that law school was not a good fit for his interests. Learning the specifics of a prospective career from a distance is an enriching road map to a career path that might not suit you. And, potentially, it can save time, money, and emotional distress. 
Stan Christensen, partner at Arbor Advisors and Stanford instructor, advises those planning a career not to be overly concerned with a linear path. While certainly there are some jobs that require specific training and expertise, the majority of positions in the business world are available to the savvy and the willful who are willing to work their way in.