Introducing Pericles, the Next Phase of our Startup Advisory Business
By Bradley Tusk
When Uber founder Travis Kalanick asked me back in 2011 if I would take equity instead of cash as my consulting fee, I wasn’t immediately sure what to say. I believed in Travis and what he was trying to build, but the company was less than two years old and, at that time, only operating in one market. And honestly, back then I didn’t know that much about investing in private companies.
Looking back, it’s easy to say that the taxi industry was ripe for disruption and that taking equity at that point was a no-brainer, but in reality, the decision is never that clear cut. Taking equity from an early stage tech company is a risky proposition - you can’t meet payroll or pay the office lease with equity. The truth is that I took a risk, got lucky, and it paid off. But this experience also opened my eyes to the fact that many groundbreaking startups don’t have the right regulatory strategy in place to ensure their model can be successful.
Since working with Uber, we’ve continued to work with early stage startups and think about how our unique approach benefits both startups and more established corporations. But, until recently, our approach to advising startups at Tusk Strategies was more situational and focused on companies at a later stage, usually already in the midst of an ongoing regulatory fight. We have always found this limiting - both in terms of the kind of companies we can work with (later stage but still willing to part with equity), our ability to effectively help them (sometimes they’ve already made fatal mistakes), and the value of the return on our work (higher risk but also higher reward).
We believe the answer to most regulatory challenges is to get smarter earlier. The proper positioning and foundation makes tackling regulatory hurdles much easier, more effective, and less resource intensive in the long run. To that end, we’ve been quietly testing a new model over the course of the last year.
We’re calling this new startup advisory business Pericles, an homage to the Greek statesman who famously quipped, “just because you do not take an interest in politics, doesn’t mean that politics won’t take an interest in you.” This is our guiding principle - it doesn’t matter how good a startup’s technology is or how accomplished a founder is. Politics, in the end, comes for us all.
Smart early stage founders know that with disruptive technologies it is not a matter of “if” but “when” regulatory challenges will emerge. Our Pericles work is short-term and high-touch, but the reason that we aim to work with companies at an early stage is so that we can lay the foundation and then continue to provide support as they grow and encounter new challenges. Unlike traditional consulting arrangements, our engagements only pay off if our clients continue to grow into a valuable company. We are invested in their long term success. Our focus centers on the complex political problem, or problems, unique to each company. In addition to developing the right strategy and approach to that problem, our team helps startups validate their tech, business model, and go to market strategy, while telling a cohesive story that begins to build their reputation.
We don’t just advise, but we do the heavy lifting too. Our team moves quickly to work with elected officials and policymakers and help them understand the product and its underlying technology. We create the strategy, put together the right team, execute the campaign, tell your story, and give you the playbook for future success.
To lead the Pericles team, I’ve tapped my longtime colleague and friend, Bob Greenlee, Chief Operating Officer of Tusk Holdings. Bob and I met in law school at the University of Chicago, and we worked together in the Illinois Governor’s office before he joined the Tusk team. In addition to Bob, we’ve brought on Kevin Morris, formerly of Goldman Sachs and DLA Piper, to head up business development for Pericles and open our San Francisco office. We’ve also brought over a host of veteran Tusk experts - Henry Greenidge, Sam Polstein, Jon Sabol, Christina Esposito, Mosea Esaias, Christina Goldstein, Evan Brot, and Yani Torres - with a variety of subject matter, campaign, and communications skills. You can learn more about the team on our newly expanded Pericles website.
Our approach to the Pericles work takes everything that we’ve learned over the last decade of partnering with startups and applies it on behalf of a select group of the most exciting and challenging opportunities we could find. The goal is to leave the companies we work with stronger than they were before and in a better position to tackle the types of big, tough challenges that have a tendency to smother good ideas in their sleep.
We’ve executed this approach successfully with startups like Eaze, Lemonade, and Fan Duel. And now, the new Pericles team is working with startups like CloudKitchens, itselectric, Block Party, Burnbot, and many more across climate tech, crypto/blockchain, transportation/mobility, and telehealth.
Know a great young company that you think could use some guidance? Email info@pericles.group and our team will be in touch.