Talking Points: Robert Peters Washington state president, Bank of America

| FROM THE PRINT EDITION |
 
 

Bob Peters took over the Washington operations of Bank of America in 2009, just as the bank faced a subprime mortgage crisis tied to its acquisition of troubled Countrywide Financial. Now, Peters is leading a drive to get the bank, which built its dominant local presence through the acquisition of Seafirst Bank in 1983, to take better care of its customers.

EARLY LIFE: I was born and raised near Oakland, California. I grew up admiring Jacques Cousteau and came to the University of Washington in 1979 with a plan to study marine biology. I was on a swimming scholarship and made the Olympic development team that year. I also looked at the University of California, Santa Barbara, but when I saw people carrying surfboards on campus, I thought that was too much of a risk. There would be too many distractions.

FAMILY: My great-grandfather emigrated from Denmark and worked for Bank of America for 35 years starting in 1908. He passed away at 90. As a child, my job when I visited him in Fresno was to go into his closet in the morning, grab his wooden leg, put a sock on the stump, put him on the wheelchair and wheel him out to a card table where he would play pinochle with friends. They were all former customers whom he had worked with through the Great Depression.

CAREER: I realized that marine biology was going to be a hard lifestyle from a family perspective, so I got my undergraduate degree in international studies. In 1985, I joined Seafirst Bank in the mailroom. A year later, I moved into the commercial banking business. Starting at the bottom of the company, I learned the importance of having respect for everyone at the company.

CHALLENGES: When I became president in 2009, those were difficult years for the whole community. I remember that my great-grandfather used to say: “You can’t help everyone, but you help as many people as you possibly can.” The impact [of the recession] on our consumer business was significant, as people lost their jobs and weren’t able to pay their mortgages. Bank of America is doing a lot to help. We’ve modified over 2,400 loans here in Washington.  

LEADERSHIP: In difficult times, people want to have confidence in the organization they are working for. That means clarity and vision, a commitment to do the right thing and to live by values people will be proud of. You also need the conviction to push forward.

ECONOMY: When I look at the business community today, I see corporations that have very strong balance sheets that have the capacity to invest and withstand a recession, but don’t act because they lack the confidence that demand will be there. There is a concern about where tax rates will be and what the spending in Washington, D.C., will be. If there was certainty, there would be movement regardless of what the certainty was.

MARKET SHARE: We have more than a 21 percent share of deposits in Washington state. Our next largest competitor [Wells Fargo Bank] is 11 percent. We are being aggressive on loans today. The first three quarters of 2012, we were at $215 million in new loan origination to small businesses, up about 33 percent from the previous year. We’ve hired about 30 small-business bankers this year and now have a total of 43 in the state working with customers with half a million to five million dollars in revenue. That’s where job creation is going to be greatest and most critical to the economy. We believe there is a good opportunity there, given the pullback there has been from other providers in that segment over the last several years.

GROWTH AREAS: There are three industry clusters that will drive most of the growth in Washington: aerospace, technology and health care. Some of our biggest companies are there, including Boeing and Microsoft and all their suppliers.  

THE BANK’S COMPETITIVE ADVANTAGE:
We can help individuals whether they work on a factory floor or run the company and whether their needs are local or global.  We have people in 40 countries who offer all the support you need to operate abroad. We can help milk processing companies hedge their exposure to milk prices. We help hedge natural gas. We can help mitigate interest rate exposure. With respect to consumers, we are committed to offering clarity. We want to make sure that the average person understands what
he or she is getting from us as a financial
services company.  

TECHNOLOGY: We recently moved our [computer] system to our national platform. That allows customers in Washington state to have access to all of the bank’s products and services. We want to make sure our clients can do their banking when and where and how they want.  You can deposit a check or transfer money all from your mobile device. You don’t need to go to a banking center.

EDUCATION: Impacting young people is one of the best investments you can make in life. So I’ve tried to limit my outside endeavors to what we can do to help education. Early in my career, I had a formal mentor who helped me and later, I had many informal mentors. At the Seattle Chamber [he is co-chair of the chamber’s education task force], we want to mobilize our 2,200 company members and their 700,000 employees to be mentors to middle school and high school kids. We want them to be role models—to take kids to the tunnel project and show them why geometry might be relevant for a job they might get. We can help the students create a vision for themselves and a passion for what jobs there might be in the future and why it’s important for them to stay in school.

IMPROVING SEATTLE SCHOOLS: Whether you are a for-profit business, the public sector or the school system, you have to hold people accountable and responsible for improvement. But there are a lot of inputs. It is not easy to determine if a teacher, a principal or a school is necessarily failing. You have to have competent people who understand their roles and responsibilities. And they have to be held accountable.

Three Investors Who Believe in the Innovative Capabilities of Local Entrepreneurs

Three Investors Who Believe in the Innovative Capabilities of Local Entrepreneurs

Meet Matt McIlwain, Nick Hanauer and Dan Levitan.
FROM THE PRINT EDITION |
 
 

As much as we’d like to think otherwise, Seattle is not yet a hotbed of venture capital activity. Zillow CEO Spencer Rascoff said as much in an interview earlier this year with The Seattle Times. While discussing the healthy state of the region’s tech business, Rascoff observed, “From a technology landscape standpoint, I’m pleased with the vibrancy of the startup community, [but] I still think … Seattle needs more institutional venture capital. The fact that we have really only a handful of venture-capital firms based here is going to hold the region back from fulfilling its potential.”

Still, without capital from local investors, many of the companies that now form the backbone of the Puget Sound economy — from Amazon to Zulily, from Julep to Juno Therapeutics — might not exist, or might exist elsewhere.

So here’s to the venture capitalists who call Seattle home and who find promise and potential profit in betting on companies like Apptio and Avvo. Dato and Drugstore.com (acquired by Walgreen’s). Front Desk and FanNation.com (acquired by Sports Illustrated). Isilon Systems (acquired by EMC) and Insitu (acquired by Boeing). Moz and Modumetal. Redfin and Rover.com. Shippable and Spaceflight Services. Trupanion and Talyst. And plenty more.

On the pages that follow, we feature three prominent members of Seattle’s venture capital community who believe in the region’s ability to create viable, sustainable businesses here. Two have made Forbes magazine’s annual Midas List of the top 100 venture capitalists in the world. The other has become a civic activist dedicated to addressing — and solving — economic inequality.

DAN LEVITAN
Dan Levitan cofounded Maveron with Howard Schultz in 1998. Since then, he has been the key player on many of Maveron’s home runs, including Zulily. In 2014, Forbes magazine named him to its Midas List of the top 100 VCs in the world. Levitan is a graduate of Duke University and has an M.B.A. from the Harvard Business School.

Investment you’d characterize as your biggest success.  Zulily and eBay 

Company you passed on and now wish you had invested in. Blue Nile

Most important things to look for in a startup. The entrepreneur and his/her team; the size of the market; and a differentiated product/service

Best location for closing a deal. The CEO’s office

Kinds of companies you’re looking for and why. We specialize in identifying, financing and mentoring highly disruptive and immersive, consumer-facing companies. We love — and invest in — companies that integrate into the lives of consumers and make the world a better place.

The most effective entrepreneur you’ve encountered. Howard Schultz [of Starbucks], because he built one of the most respected brands in the world. 

Top two deal makers. Awesome entrepreneur, insanely driven to succeed

Top two deal breakers. Anything outside of consumer or anything too small

What do you do for fun? I go to Duke basketball games.

What kind of car do you drive? Tesla Model S 

You might not know. Levitan has climbed Mount Kilimanjaro and Mount Rainier. He found a mentor in Duke basketball coach Mike Krzyzewski, who taught Levitan the central lesson of Maveron’s consumer-focused success: Always ask, “Do you love your team?” 

NICK HANAUER
Nick Hanauer is an entrepreneur with a broad range of experience across manufacturing, retailing, e-commerce, digital media, advertising, software, aerospace, health care and finance. In 2015, he also founded Civic Ventures, a small group of political “troublemakers” devoted to ideas, policies and actions centering on significant social change. He holds a degree in philosophy from the University of Washington.

Investment you’d characterize as your biggest success. For sure, aQuantive. I founded it and funded a big part of it and sold it [to Microsoft] for $6.4 billion. Also, Amazon as a first-round investor.

Company you passed on and now wish you had invested in. Rich Barton asked me to invest in Glassdoor, but I was too lazy to do anything. That was a screw-up.

Most important things to look for in a startup. My first screen is “Nick’s rule of transformational value.” Every great business is predicated on a product or service that creates what I call transformational value — that is, it is either 10 times better or 10 times cheaper or, ideally, both. Second, of course, the quality of the people. Bad people can kill a great idea but great people can evolve a mediocre idea.

Best location for closing a deal. My office.

Kinds of companies you’re looking for and why. My partners and I look for very early-stage-ideas companies. We try to be hard core about them being headquartered locally, but have made exceptions for entrepreneurs we already knew and trusted. We are somewhat agnostic to industry, reasoning that it’s the stuff you have not considered before that may be the biggest opportunity. For example, one of our best and most exciting investments was Insitu [acquired by Boeing for $400 million], and they made drones before anyone knew what drones were. 

The most effective entrepreneur you’ve encountered. It’s hard to beat [Amazon’s] Jeff Bezos. My pal Rich Barton [of Zillow] comes close.  

Top two deal makers. Simplicity and focus

Top two deal breakers. Complexity and confusion

What do you do for fun? What don’t I do for fun? I believe that one of my finest and rarest qualities is my ability to efficiently convert money into fun.

What kind of car do you drive? Tesla Model S P90D

You might not know. Hanauer is a co-author (with Eric Liu) of two best-selling books in the political genre, The True Patriot and The Gardens of Democracy. He has been featured in two documentary films on economic inequality — American Winter and Inequality for All.

MATT MCILWAIN 

Matt McIlwain joined Madrona Venture Group in 2000 and focuses on a broad range of software-driven firms. Current investments include Apptio, Envelop VR and Smartsheet. A graduate of Dartmouth College, he holds an M.B.A. from the Harvard Business School and a master’s degree in public policy from Harvard’s Kennedy School of Government.  He was named to the Forbes Midas List in 2008, 2009 and 2011.

Investment you’d characterize as your biggest success. Isilon Systems [acquired by EMC for $2.25 billion]

Company you passed on and now wish you had invested in. Airbnb

Most important things to look for in a startup. Customer-driven problem/need; differentiated and technology-driven solution; compelling founding team that can build a great company

Best location for closing a deal. Coffee shop or a great restaurant

Kinds of companies you’re looking for and why. Virtual reality/augmented reality companies and “application intelligence” companies that leverage machine learning to make apps smarter

The most effective entrepreneur you’ve encountered. Sunny Gupta [of Apptio] is world class at customer focus, attracting great people and product-market fit.

Top two deal makers. Great judgment, passion for the opportunity

Top two deal breakers. Not focusing on the customer’s problem, lack of transparency

What do you do for fun? Travel, play (and watch) sports, discuss policy issues

What kind of car do you drive? 2011 BMW 535i

You might not know. McIlwain came to venture capital investing from an unlikely place: the Genuine Auto Parts Company in Atlanta, Georgia, which owns NAPA Auto Parts. He ended up spending a lot of time with venture capitalists and venture-backed companies that were interested in investing in the sector. He worked with Madrona on some projects and joined the firm in 1999.