I could use more palm trees here in Dallas and while I’m at it a Togo’s. However, the “City of Angels” reference in this post’s title is about bridging the gap between entrepreneurs and angel investors rather than going “Under the Bridge.”

The startup ecosystem in Dallas is discombobulated if not broken. “Underperforming” would be a kind word to describe Dallas relative to other startup communities. To improve the Dallas startup scene, Alex Muse of Big in Japan is taking action and starting an entrepreneur-angel investor group:

The basic idea is to form a group designed to a) generate LOCAL dealflow for angel investors, b) assist entrepreneurs in the creation of fundable startups and c) provide investment capital for startups. Instead of charging angels and entrepreneurs a fee to participate require that they instead invest their time.

If you are interested in helping organize this group I invite you to attend. At this time we are seeking a) angels with experience, b) angels without experience, c) entrepreneurs interested in helping and d) entrepreneurs interested in pitching. The idea is not to create an angel group in secret or without the input of entrepreneurs, but to instead create it by and for all parties.

The first meeting was last week and it went pretty well. We’re in the process of defining the vision (i.e., do we change the world or change one entrepreneur/angel at a time) and laying out the ground rules. In other words, the group realizes planning is essential to ensure an entrepreneur-angel improvement in Dallas.

From what I’ve experienced, Dallas investors are comfortable investing in real estate and oil & gas deals–but not in traditional startups. Maybe it’s because real estate and oil & gas deals tend to be structured as limited partnerships, and therefore the deal documents and language therein for startup investments might be too foreign for Dallas investors. Or maybe people in Dallas just know more about real estate and oil & gas.

Any thoughts on this from the Dallas crowd?

This morning was my son’s first day of school and he was extremely excited to get going. In fact, he would have ran across the street to his school without looking if I hadn’t stopped him. His elation overtook his ability to evaluate peril. This reminded me of how entrepreneurs can rush into a startup without taking the time ascertain and address potential issues.

For example, co-founders can let their passion and enthusiasm for their startup (and trust in their co-founder) substitute for practices that will protect and enhance both them and the startup company. I wrote an article about issues co-founders should discuss titled “Keep Your Startup Co-Founder Closer.” Check it out if you haven’t already.

I had some free time this weekend and watched “Empire of the Sun” starring Christian Bale and John Malkovich. The movie came out in 1987, but I saw it for the first time Saturday.

The premise of Empire of the Sun is that an aristocratic British child is separated from his family (living in China) at the start of World War II after the Japanese invade China. The child is forced to live on the street and is eventually interned in a Japanese POW camp.

I’m glad I did not see Empire of the Sun when it first came out, because I would not have fully-understood the characters’ emotions. In fact, I would have likely grouped the movie with other “where are the parents?” movies like The Goonies or Adventures in Babysitting in the late 1980s.

While I was a child in 1987, I have 2 children in 2008. My experience as a parent helped me understand the anguish of losing a child.

However, there will be situations where you (and I) will lack experience and be at a disadvantage in understanding another person’s emotions and subsequent decisions. In these situations, you must do your best to put yourself in the other person’s shoes. How would you feel and react if put in the exact same situation? Answering that question before every negotiation or interaction will yield positive results for your startup.

As an entrepreneur, it may feel as though the world consists solely of you and your idea. And for a period of time, that may be true. But eventually, and in order for you to implement your idea, you will have to interact with and rely upon many individuals and groups. And they will all come with their own sets of emotions, decisions, and priorities.

For example, when hiring an employee, you should understand that no matter how many stock options you throw at an employee, those stock options will not feed his or her child for some time (if ever). Thus, an employee’s hesitance to accept stock options in lieu of other compensation may not have anything to do with his or her view of your startup’s future. He or she may just have a child to feed today.

In the startup world, reducing egocentrism and increasing empathy will have positive effects for your startup when dealing with employees, vendors, co-founders, or venture capital firms. By better understanding others and their motivations, you will increase the potential for agreements. Focus on the reason and not the answer. You may be able to find a way to make it work.

A few months ago, I was on a conference call with opposing counsel to negotiate a client’s deal. Things got a little heated (the only time I’ve ever experienced a hostile communication with another attorney) and eventually I got hung up on. I was about to call the attorney back and show him what I learned from 15 years of listening to gangsta rap, but thankfully I didn’t.

Was I upset? Sure.

What it have felt great to go 2pac on the other attorney? Very Sure.

Would I have regretted it 2 minutes later? Extremely Sure.

Instead, I waited a day and called the attorney back. We ironed out the terms of the deal and got it done. Everybody was happy.

But here’s an even better example of why you don’t burn bridges unnecessarily: Three weeks later, another client of mine asks me to handle an acquisition. He gives me the contact information for the other company’s lawyer. You guessed it…the same lawyer.

If I had burned the bridge with that lawyer, it could have negatively affected my client’s current deal. Or, it could have gotten me removed from the transaction. Luckily, both were avoided.

As an entrepreneur, there will undoubtedly be frustrating moments where you will reach a boiling point and be tempted to let it rain fire on a co-founder, employee, vendor, or other 3rd party. In these situations, don’t throw your MacBook against the wall or burn bridges with other people.

Burning bridges is a short-term (emotional) solution with long-term implications. Of course, there will be situations where a relationship can not be salvaged, but those situations are rarities. And your startup will be better off the rarer they are.

I attended the Dallas Startup Happy Hour (sponsored by SpringStage) last night. This was the second time I attended but this one was especially great because I got to bring along one of my clients who is working full-time on his startup. He got a much-needed break from coding and was able to network and just otherwise talk shop with other startup entrepreneurs. Thus, if you are a current startup in the DFW area or maybe just thinking about it, consider attending a future Dallas Startup Happy Hour. It’s being held every other week at the High Tech Bar at the INFOMART Center in Dallas.

Here is the motivation for the event:

We are working to build a vibrant startup community here in Dallas every bit as interesting and dynamic as San Francisco, Boulder, Boston or Austin. The first step is engagement. If you are an entrepreneur (future, current or past) you should attend. If you are working for a startup you should attend.

I’ve had the pleasure of meeting many great people, including (but not limited to):

-Jason Hudgins of Droidworks
-Andy Chen and Andres Fabris of Traxo
-Brad Brawner of SportsJungle
-Bradley Joyce, web developer & entrepreneur and the newest member of the SpringStage team
-Lincoln Murphy of Morph Labs (who helped me with the correct pronunciation of “mysql” and explained what “the cloud” is.)
-Scot Duke of Innovate Business Golf Solutions

Ernst & Young LLP filed a complaint yesterday in federal court against Entrepreneur Media, Inc. (publisher of Entrepreneur Magazine) alleging that Entrepreneur Media is infringing upon Ernst & Young’s “Entrepreneur of the Year” trademark registered with the USPTO.

For more than 20 years, Ernst & Young has bestowed an “Entrepreneur of the Year” award upon successful and innovative business leaders in the United States and around the world. Prior winners include Michael Dell (Dell), Steve Case (AOL), Jeff Bezos (Amazon), and John Mackey (Whole Foods).

In the complaint, Ernst & Young alleges that Entrepreneur Media first infringed in 1994. At that time, Ernst & Young objected in writing and Entrepreneur Media stopped using the phrase “Entrepreneur of the Year” in conjunction with a contest. In fact, Entrepreneur Media’s corporate counsel at the time thanked Ernst & Young’s counsel for “bringing the matter to Entrepreneur Media’s attention.” This 1994 letter is now Exhibit 2 of the 2008 complaint.

Now, Entrepreneur Media is currently running a 2008 Entrepreneur of the Year contest. And just like 14 years ago, Ernst & Young sent Entrepreneur a ceast & desist letter. But this time, Entrepreneur Media rejected Ernst & Young’s demand to stop using the phrase.

Enter lawsuit.

Ernst & Young seeks a permanent injunction, destruction of all Entrepreneur Media materials related to their contest, an order directing the USPTO to cancel Entrepreneur’s Media’s registrations, Entrepreneur Media’s profits from the use of the “Entrepreneur of the Year” mark, damages, attorneys’ fees, and any other relief the Court deems proper.

Like reading legal complaints? Click here to get the PDF of EY’s complaint.