Thought Leadership Threads
AI is undeniably going to change the world but 99% of AI companies will fizzle and die.
I have real, actionable advice about how to build durable AI companies but understanding my perspective requires a primer on how I think about AI.
Trust me, you’ll like it: 🧵👇
You’re probably familiar with SAFE notes if you’re an early stage Founder or Investor.
But did you know that later stage Investors and Founders are also using SAFE notes?
And have you figured out that later stage SAFEs can create real downstream problems for a startup? 🧵👇
Board meetings can be incredibly awkward when the CEO and one or more of the company’s Board members don’t see eye to eye.
When I see this happening, I frequently play the role of “peacekeeper” and start by reminding both parties of a well-known parable:
The startup ecosystem is finally seeing good companies come to market again.
But after a year of focusing on costs and runway, some startups aren’t exciting anymore. Many startups that try to raise will hear: “We want more proof!”
Here’s what you need to know about proof:🧵👇
At a startup, stock options can be lucrative depending on the success of the company.
With valuations down, Founders are asking to reprice historical options.
Here’s what it means, why it’s important and when it’s appropriate.
MANY startups are living with bad decisions they made when cheap capital flowed freely.
Massive value destruction was driven by Founders playing Hungry Hungry Hippo, trying to accumulate as much revenue as possible.
A few thoughts on how to learn from their mistakes:🧵👇
Startups that have clean narratives and “up-and-to-the-right” results can generally raise capital with minimal friction.
But a fundraise takes on an entirely different form when a startup has “asterisks” that complicate the story.
Unfortunately, asterisks are now the norm!🧵👇
There’s a lot of mis-information being shared about VC performance and how it translates into LP returns.
There’s also a lack of understanding about how the VC ecosystem broke the LP ecosystem over the past few years and why this matters A LOT.
Here’s what’s going on:🧵👇
It used to be common for a startup to de-risk in distinct phases that aligned with capital raises.
Discipline disappeared and the number of rounds a typical startup raised exploded into “alphabet soup”.
The market is returning to “normal”. Here’s what you need to know: 🧵👇