Lessons from Coinstar, a conversation with David Veenstra

We met at E-Bootcamp in Stanford University, sponsored by BASES and Business Today.

David Veenstra started the meeting with this phrase "I didn't found Google. I don't have a stash of cash. But I have learned a ton from growth"

There it was, the keyword behind his success: growth.

Redbox, the cheap DVD rental subsidiary of Coinstar, Inc., grew to 1.5 billions in only ten years. Coinstar, the coin machine co. of Coinstar, Inc., grew to 150 million in that same amount of time. Business come and go, Redbox rode the wave that starving Blockbuster left behind, and Coinstar solved a problem noone cared to look into in society...

Veenstra, now managing new ventures for the umbrella company is focused on organic and early stage growth investments. Investments that are focused on "self-service automated retail". If you have an idea, and can turn the concept into a machine, Veenstra wants to talk.

He showed some examples of interesting concepts: hurricane simulators, nail painting and automatic dog washer machines- all hilarious, but businesses nevertheless.

Today, Coinstar, Inc. is investing in innovative approaches to the self-service machine business, such as Seattle's Best Coffee, GIZMO (refurbished consumer electronics), and ECOATM (trade in your phone).

Here is the advice I got from Veenstra:

OBSERVE PAIN. It's important to see, not just hear. Focus on opportunities that solve a real pain point.

LEARN CHEAPLY. Launch the business as a test, focused on learning, tweaking and iterating.. Prototype, holding it together with ducktape is OK.

RECRUIT A "NO BS" BOARD. Find candid and pragmatic advisors. Turned "EyeSite" into "SoloHealth".

AVOID SHINY OBJECTS. Stay the course, there will be many distractions along the way.

You have no idea how many ideas they had for Seattle's Best Coffee. In the end, they just focused on coffee.

Next time you have an idea, follow these truths. It will help you stay the course.

The Road to Innovative Social Entrepreneurship International Competition!

The humble roots of the RISE competition can be traced back to a shared desire to assist Pakistani flood relief efforts in an attempt to lessen the immediate and long-term devastations of one of the largest natural disasters in recent history.

I was introduced to Aliya Bagewadi by a mutual friend who was aware that we both had a joint desire to take action to not only bring light to the tragic aftermath of the Pakistani floods, but to give the young social entrepreneurs and leaders of tomorrow, found on college campuses around the world, an opportunity to help be part of the recovery process in the region.

My experience with social entrepreneurship and philanthropic efforts coupled with Aliya’s intense involvement in social justice initiatives and humanitarian efforts made for an ideal partnership to help making our idea-- an annual social entrepreneurship competition- a reality. After our initial meeting, we decided we would give the competition a go.

After meeting with several professors, entrepreneurs, NGO personnel in Pakistan and recruiting a passionate Executive Board consisting of University of Chicago undergraduates, we managed to organize a unique and comprehensive annual competition which we named the Road to Innovative Social Entrepreneurship- or, RISE. The board is made up of some of the greatest, most outstanding and dedicated individuals on our campus today... more info on the stars will be posted on our site later this week.

RISE operates under the overarching belief that every college student has the tremendous potential to use his/her skills and knowledge to benefit the greater good. It is only a matter of rising to the challenge.

We hear humanity calling. Will you help us answer it?

REGISTER YOUR TEAM NOW TO RECEIVE MORE INFORMATION at http://rise-pak.com/apply/

VISIT THE COMPETITION'S WEBSITE AT http://rise-pak.com


If you have any questions regarding the competition, contact me at david@akinin.com