Column: How to Build Company Culture In a Work-From-Home World

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Column: How to Build Company Culture In a Work-From-Home World
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It seems like almost every day another tech company announces an extension of their work-from-home ("WFH") plans. First Zillow (my former company) said they'd allow employees to WFH for the rest of 2020, then Google and Facebook announced something similar. And then Twitter one-upped everyone by announcing that they would extend WFH forever.

I've had several tech CEOs tell me that Twitter's announcement raised the stakes significantly, and is forcing these leaders to rethink their own policies.

Regardless of how far this WFH arms race goes, one thing is clear: WFH is here to stay in one form or another.


In order to maintain productivity in a WFH environment, companies have fully embraced collaboration software, video conferencing and other strategies and tactics to succeed. But they're now facing a much harder challenge: how to build culture remotely.

It's actually quite easy to make a video-conference WFH meeting as effective as an in-person meeting. But remotely building the special esprit de corps that makes a company truly succeed — and be desired by potential employees — is very hard.

Unfortunately for those of us who care deeply about company culture, the long trend in workplace design going back 5-10 years is one of more remote and home-based work, and less in-person in-office time. For example, from the time we started Zillow in 2006 until when we went public in 2011, we had only a few hundred employees, and they were almost entirely in our Seattle headquarters. But by the time I retired as CEO in 2019, we had over 4,500 employees across eight offices, and less than half of our employees were in the Seattle headquarters. Dozens more were completely home-based.

The trend towards decentralization began out of necessity as companies sought to tap different talent pools in order to grow, and to station employees physically closer to their customers. But the coronavirus pandemic undoubtedly will accelerate this trend, and it seems very likely that the next generation of great companies will be decentralized, and probably some will be mostly remote.

Said another way, the leaders in workplace culture from 2000-2020 were companies like Yahoo, Microsoft, Google, Facebook and Zillow, which built their culture around in-person events (think: volleyball games and frisbees around their corporate campuses). But the leaders in workplace culture from 2020-2040 will be a new generation of companies whose employees have a very different relationship with their company. Less important will be physical perks like on-site dry cleaning and bringing your dog to work; more important will be programs around career development and mentoring, and ways in which the company allows workers to balance their job with outside interests.

How do you build company culture among a distributed workforce?

Repetitive Communication is more important than ever

In a remote environment, it is imperative that senior leadership consistently and repeatedly communicate with the team. Reiterating the mission, key goals, milestones, strategies and priorities is critical. In addition, one must communicate repeatedly and through multiple channels in order to break through the clutter of employees' everyday lives. For example, a CEO must remind the team of the top 3 priorities for the company via slack, via video all-hands, via all-hands emails, and probably even reinforce it through social media (if the priorities can be published externally).

Celebrate little wins

One of the small joys of an office environment is the opportunity for in-person celebrations of big accomplishments such as product launches and milestones achieved, and the little wins such as employees' birthdays or weddings. It's important to replicate this in a remote environment as much as possible. Video conference calls have a tendency to trend towards a transactional nature which is antiseptic and demotivating. Overcome this by celebrating small wins in any way you can. A simple method is to do weekly "shout-outs" in video all-hands meetings.

Try to build relationships among team members

Again, look for ways to replicate the serendipitous in-office experiences remotely in order to build relationships and trust among team members. Examples include a "bring your pet to lunch" video call; a make-your-own company swag day; and even a crazy-hair day. (Yes, I stole that last idea from my kids' school, but it's a good one for a company also.)

Assemble in-person from time to time

I believe that the company of the future, post coronavirus, will be mostly remote but will still gather in-person a few times a month. An in-person all-hands (with video for those not based in the HQ city) is invaluable. Likewise, some company activities such as brainstorming sessions and annual business planning are best done in-person and you should try to accommodate that via IRL meetings.

Building company culture is important no matter the company's stage or business. But in a remote environment, it's more important than ever. If you have ideas on how else to build culture in a remote organization, please tweet them at me.

https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
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🤠Musk Picks Texas and 🔥Tinder AI Picks Your Profile Pictures
Image Source: Tinder

🔦 Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

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  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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Top LA Accelerators that Entrepreneurs Should Know About

Los Angeles, has a thriving startup ecosystem with numerous accelerators, incubators, and programs designed to support and nurture new businesses. These programs provide a range of services, including funding, mentorship, workspace, networking opportunities, and strategic guidance to help entrepreneurs develop their ideas and scale their companies.


Techstars Los Angeles

Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of LA.

Location: Culver City

Type of Funding: Pre-seed, early stage

Focus: Industry Agnostic

Notable Past Companies: StokedPlastic, Zeno Power


Grid110

Grid110 offers no-cost, no-equity programs for entrepreneurs in Los Angeles, including a 12-week Residency accelerator for early-stage startups, an Idea to Launch Bootcamp for pre-launch entrepreneurs, and specialized programs like the PledgeLA Founders Fund and Friends & Family program, all aimed at providing essential skills, resources, and support to help founders develop and grow their businesses.

Location: DTLA

Type of Funding: Seed, early stage

Focus: Industry Agnostic

Notable Past Companies: Casetify, Flavors From Afar


Idealab

Idealab is a renowned startup studio and incubator based in Pasadena, California. Founded in 1996 by entrepreneur Bill Gross, Idealab has a long history of nurturing innovative technology companies, with over 150 startups launched and 45 successful IPOs and acquisitions, including notable successes like Coinbase and Tenor.

Location: Pasadena

Type of Funding: Stage agnostic

Focus: Industry Agnostic, AI/Robotics, Consumer, Clean Energy

Notable Past Companies: Lumin, Coinbase, Tenor


Plug In South LA

Plug In South LA is a tech accelerator program focused on supporting and empowering Black and Latinx entrepreneurs in the Los Angeles area. The 12-week intensive program provides early-stage founders with mentorship, workshops, strategic guidance, potential pilot partnerships, grant funding, and networking opportunities to help them scale their businesses and secure investment.

Location: Los Angeles

Type of Funding: Pre-seed, seed

Focus: Industry Agnostic, Connection to South LA and related communities

Notable Past Companies: ChargerHelp, Peadbo


Cedars-Sinai Accelerator

The Cedars-Sinai Accelerator is a three-month program based in Los Angeles that provides healthcare startups with $100,000 in funding, mentorship from over 300 leading clinicians and executives, and access to Cedars-Sinai's clinical expertise and resources. The program aims to transform healthcare quality, efficiency, and care delivery by helping entrepreneurs bring their innovative technology products to market, offering participants dedicated office space, exposure to a broad network of healthcare entrepreneurs and investors, and the opportunity to pitch their companies at a Demo Day.

Location: West Hollywood

Type of Funding: Seed, early stage, convertible note

Focus: Healthcare, Device, Life Sciences

Notable Past Companies: Regard, Hawthorne Effect


MedTech Innovator

MedTech Innovator is the world's largest accelerator for medical technology companies, based in Los Angeles, offering a four-month program that provides selected startups with unparalleled access to industry leaders, investors, and resources without taking equity. The accelerator culminates in showcase events and competitions where participating companies can win substantial non-dilutive funding, with the program having a strong track record of helping startups secure FDA approvals and significant follow-on funding.

Location: Westwood

Type of Funding: Seed, early stage

Focus: Health Care, Health Diagnostics, Medical Device

Notable Past Companies: Zeto, Genetesis


KidsX

The KidsX Accelerator in Los Angeles is a 10-week program that supports early-stage digital health companies focused on pediatric care, providing mentorship, resources, and access to a network of children's hospitals to help startups validate product-market fit and scale their solutions. The accelerator uses a reverse pitch model, where participating hospitals identify focus areas and work closely with selected startups to develop and pilot digital health solutions that address specific pediatric needs.

Location: East Hollywood

Type of Funding: Pre-seed, seed, early stage

Focus: Pediatric Health Care Innovation

Notable Past Companies: Smileyscope, Zocalo Health


Disney Accelerator

Disney Accelerator is a startup accelerator that provides early-stage companies in the consumer media, entertainment and technology sectors with mentorship, guidance, and investment from Disney executives. The program, now in its 10th year, aims to foster collaborations and partnerships between innovative technology companies and The Walt Disney Company to help them accelerate their growth and bring new experiences to Disney audiences.

Location: Burbank

Type of Funding: Growth stage

Focus: Technology and entertainment

Notable Past Companies: Epic Games, BRIT + CO, CAMP


Techstars Space Accelerator

Techstars Space Accelerator is a startup accelerator program focused on advancing the next generation of space technology companies. The three-month mentorship-driven program brings together founders from across the globe to work on big ideas in aerospace, including rapid launch services, precision-based imaging, operating systems for complex robotics, in-space servicing, and thermal protection.

Location: Los Angeles

Type of Funding: Growth stage

Focus: Aerospace

Notable Past Companies: Pixxel, Morpheus Space



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🚁 One Step Closer to Air Taxis in LA
Image Source: Joby Aviation

🔦 Spotlight

Joby Aviation, a pioneering electric air taxi company, has achieved a significant milestone by successfully flying a hydrogen-electric aircraft demonstrator for 523 miles with only water as a byproduct. This groundbreaking flight showcases the potential for emissions-free regional travel using vertical take-off and landing (eVTOL) aircraft, eliminating the need for traditional runways. The company's innovative approach combines its existing battery-electric air taxi technology with hydrogen fuel cells, paving the way for longer-range, environmentally friendly air travel.

For LA residents, this development holds exciting implications for future transportation options. Joby's technology could potentially enable direct flights from LA to destinations like San Francisco or San Diego without the need to visit conventional airports, offering a cleaner and more convenient alternative to current travel methods. The company's progress in both battery-electric and hydrogen-electric aircraft positions it at the forefront of next-generation aviation, promising to revolutionize urban and regional mobility.

Notably, Joby Aviation has already made strides in Southern California by securing an agreement with John Wayne Airport earlier this year to install the region's first electric air taxi charger. This strategic move sets the stage for LA to be among the initial markets where Joby will launch its electric air taxi service. With plans to commence commercial operations as early as 2025 using its battery-electric air taxi, LA residents may soon have access to a fast, quiet, and environmentally friendly mode of transportation that could significantly reduce travel times and traffic congestion in the region. In the not too distant future, LA might find itself in an identity crisis without traffic and excess smog 🤞🤞.


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