After thousands of pitches, here's what matters:
1. 𝐋𝐨𝐯𝐞 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫. Not "understand" them. LOVE them. If you don't obsess over making their life better, you won't make it.
2. 𝐁𝐞 𝐨𝐩𝐭𝐢𝐦𝐢𝐬𝐭𝐢𝐜. Pessimists don't build trillion-dollar companies. They give up when it gets hard. And it WILL get hard.
3. 𝐁𝐞 𝐢𝐦𝐦𝐮𝐧𝐞 𝐭𝐨 𝐩𝐞𝐞𝐫 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞. "A spouting whale gets harpooned" is the OPPOSITE of what I want. I want founders who speak up. Who don't care what everyone else thinks.
You're going to have dark moments. Jesus Christ had moments of doubt and pain (shoutout Rolling Stones). You will too.
The question isn't whether you'll face hard times. It's whether you'll push through them.
That's what separates the founders I back from everyone else.
.@PatMcAfeeShow: "What is your major brother?"
Otto: "I'm a computer science major."
Pat: "So what does that mean, going forward you're going to do what?"
Otto: "Computer science."
Pat: "Yes you are!" 🤣
Kubernetes migration almost killed our startup.
Where we were:
- 8 EC2 instances
- Ansible for deploys
- Boring but working
- $1200/month AWS bill
Why we migrated:
- New investor wanted 'cloud-native'
- Engineers wanted K8s experience
- Competitors were using it
- Seemed like the future
6 months later:
- 3 engineers spending full-time on K8s
- AWS bill at $4500/month
- Deploys took longer than before
- More outages, not fewer
- Product development stalled
We rolled back:
- Moved to ECS Fargate
- 2 week migration
- Back to $1800/month
- Engineers back on features
K8s is amazing for scale. We weren't at scale. Technology should solve problems you actually have.
@BernieSanders Did he steal the money for anyone? He’s arguably pushed humanity further than any other person walking this world today. Not to mention, how much value he’s crated for peoples 401ks, pension funds, endowments etc.
This story from @chamath on the experience of 8090 trying to sell software to PE is an almost perfect example of the differences between PE & VC.
So 8090 meets with a bunch of PE Partners and pitches the idea that they can do custom built, AI native software, that can make you more efficient and double margins. Maybe they even have a couple of examples of processes they can make more efficient. Of course the PE partner is interested. Who doesn't want to double margins? And of course an "AI native" company will sell for a higher multiple. So they hook up 8090 with a couple of portcos.
8090 then pitches to the portcos. And the executives quickly start to ask more detailed questions. Exactly what is this software going to look like and exactly what processes are you going to make more efficient? How are you going to deal with issue A, B & C in our industry? How long is this going to take and what are the resources required? It quickly becomes clear that this is an idea rather than a real product and the guys at 8090 don't know anything about the portco's industry.
The portco CEO then calls the PE Partner and asks if we really want to spend the next 3-5 years on a bet the Company software system with no real idea if it is going to work. And very quickly the Partner says no.
In VC land, it is very common to pursue a vague idea with often no real idea on how to make it work. And in VC land most of the time it doesn't work. Most VC deals lose money. But sometimes it does work and the VC can make >20x their money. The huge winners make up for all of the losers.
In PE land you don't make >20x on your winners. So if you want to be successful you have to have very few losers. That means you can't make bet the company moves without a very high conviction it is going to work. It is just a very different game.
This story also shows the fundamentally arrogant approach that you need to win in VC. Saying that you are going to fundamentally change X market is just an arrogant thing. It says that you are smarter than all of the other people in that industry that have been doing it for years. Sometimes that arrogance works and you create Uber, but usually it doesn't.
Calling PE management teams Cs & Ds is just wrong. The fact they don't want to bet their company on a vague software idea is actually a good decision. And the skills it takes to run most businesses are just very different than the skills it takes to run a high growth start-up or even a mature tech company.
Was on a board once with a bunch of VCs. Very smart guys. But in many ways they had no idea how a real business works. I had to ask if we could please take 10 minutes at the end of monthly board call to review financials. True story.....
Excited to join @HeBAN_gr 🇬🇷 as Angel Investor & Advisor! 🚀 After a summer in Greece hearing about the brain drain, I’m fired up to back bold founders. HeBAN is all about real collaboration and reviving Greek innovation. Let’s build the future together! 💡🌍
This is exciting. Greeks have always been innovators at their core. From philosophy to science, from art to mathematics, it’s in our DNA.
Seeing leaders meet to shape the future of AI feels like getting back to our roots.
#GreekInnovation#FutureofAI
Greece’s Prime Minister was a Venture Capitalist before turning to politics.
Tonight, the Greek-English head of Google DeepMind is speaking with him in an ancient amphitheater beneath the Acropolis.
Greece collaborated with OpenAI at a country level for education/schools just last week.
Your new tech hub is Greece.
Watch live here: https://t.co/ETJMuOqD3k
✨ Culture is not built in strategy decks
🤝 It is built in micro-moments
🔑 Leaders model behaviors, teams adopt them, and customers feel the results
Explore how leadership signals shape service culture and CX outcomes in my latest blog:
👉 https://t.co/B0qlAY8atp