The hottest Venture Capital Substack posts right now

And their main takeaways
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Top Business Topics

The Three Types of Money Behind Silicon Valley's Rise to Dominance

The Future, Now and Then • 110 implied HN points • 25 Feb 25
💰 Finance Investing Stock Market Speculation Economic Theory Venture Capital
  1. Silicon Valley's success relies on three types of money: government contracts, product revenues, and speculative investments. Each plays a different role in funding and shaping tech companies.
  2. Many tech stocks are driven by 'vibes' rather than actual profits. This means their value can fluctuate wildly based on investor sentiment instead of real financial performance.
  3. When speculative finance overshadows the real production of goods and services, it can lead to an unstable economy. Companies need a balance of funding sources to grow healthily and sustainably.

Join me for a conversation with Brett Berson, Partner at First Round Capital

Thinking in Bets • 138 implied HN points • 01 Nov 24
💼 Business Venture Capital Investment strategy Decision-making Startups
  1. Learn how a top venture capital firm has changed its investment processes. They focus on being more organized and efficient.
  2. Discover how to make better investment choices using data. A data-driven approach helps in making smarter decisions.
  3. Find out how to improve feedback loops in finance. Creating quicker feedback can help in long-term decision-making.

The Anarchist’s Compass No. 1

The American Peasant • 2535 implied HN points • 23 Oct 24
💼 Business Publishing Finance Entrepreneurship Acquisitions Venture Capital
  1. A businessman shared a wild story about buying a small publishing company. He revealed that the owner didn't know he was supposed to keep the cash in the company, and the buyer ended up getting the business almost for free.
  2. The room erupted in laughter when he shared how the situation turned out. It showed how sometimes, deals can have unexpected and surprising outcomes.
  3. This story highlights how important it is to understand business transactions and financial details. Misunderstandings can lead to big surprises for both buyers and sellers.

No Pats On the Back

Points And Figures • 772 implied HN points • 27 Feb 25
💼 Business Entrepreneurship Venture Capital Investment Strategies Economic Development
  1. Chicago lacks the investment and willingness to take risks that cities like Silicon Valley and New York have. This makes it hard for startups to get support.
  2. Entrepreneurial ecosystems thrive when they focus on merit and tolerance for failure. Chicago is seen as outdated in these aspects.
  3. The culture in Chicago often emphasizes who you are instead of what you can achieve, which can hinder innovation and growth.

Global LP Perspectives in a Changing Market

Tippets by Taps • 10 implied HN points • 24 Jun 25
💼 Business Venture Capital Private Equity Investment strategy Market Trends AI Development
  1. Liquidity is a big issue for investors everywhere. They are waiting for returns, especially in regions like Australia where companies like Canva are under a lot of pressure to go public.
  2. AI is seen as a huge opportunity by all investors. They feel they can't miss out on the companies shaping the future, even if they are frustrated by the current lack of liquidity.
  3. The US, especially Silicon Valley, is still the main hub for tech and AI innovation. Many investors want to get involved there while waiting for their local markets to grow.
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PvP

Crypto Trader Digest • 2658 implied HN points • 08 Oct 24
🔮 Crypto Market Trends Investment strategy Venture Capital
  1. The current crypto market has a predatory feel where some are winning at the expense of others, especially with new tokens performing poorly for retail investors.
  2. Listing fees for centralized exchanges (CEXs) are quite high, and many projects may struggle to justify these costs if their token performance doesn’t improve.
  3. It's better for projects to focus on building a strong user base and product fit rather than solely relying on listings on major exchanges to boost token prices.

DOGE In the States

Points And Figures • 879 implied HN points • 18 Feb 25
🇺🇸 U.S. Politics Entrepreneurship Tax policy Venture Capital
  1. Many government programs aiming to help entrepreneurs are seen as wasteful and do not deliver real results. It's often just a way to create jobs for government employees.
  2. Entrepreneurial ecosystems work best when driven by the private sector rather than government involvement. Government interference tends to complicate matters and can limit growth.
  3. Accountability in the private sector is focused on solving customer problems efficiently, while government often prioritizes expanding control and influence, resulting in wasted resources.

Musk's Bid for OpenAI is Brilliant

startupdreams • 953 implied HN points • 11 Feb 25
💼 Business Corporate strategy Venture Capital Market Valuation Mergers & Acquisitions
  1. Musk made a big offer of $97 billion to buy the for-profit part of OpenAI, much higher than the $40 billion OpenAI was planning to pay itself. This puts pressure on OpenAI's board to act responsibly.
  2. The offer complicates OpenAI's plans to turn entirely for-profit, making it harder for them to raise funds in the future. Musk's move puts the company in a tough position.
  3. Even after Musk's offer, OpenAI's leader, Altman, didn't address the implications in his response, suggesting he knows things are not going well for them.

Letters to a Young Investor: Kirsten Green

The Generalist • 820 implied HN points • 06 Feb 25
💼 Business Venture Capital Investing Entrepreneurship Startups Finance
  1. Kirsten Green's journey to becoming a successful investor wasn't straightforward. It took her ten years of learning and failing before founding her own firm.
  2. She developed a unique way of looking at business opportunities by focusing on how a business model can enhance the customer's experience.
  3. Failures in her early investments taught Kirsten valuable lessons and shaped her approach to investing, helping her identify when to trust her instincts.

What if the Current Tech IPO Drought isn't a Drought but the New Normal for Venture?

Venture Reflections • 18 implied HN points • 25 Feb 25
💼 Business Venture Capital Startups IPO Finance Investment
  1. The slowdown in tech IPOs might not be a temporary issue, but rather a shift to fewer, larger IPOs that happen less frequently. This could change how we view the IPO landscape.
  2. Many companies are now able to raise enough money privately, so they don't feel the need to go public. This reduces the urgency for IPOs as a source of liquidity.
  3. As companies wait longer to go public, secondary sales could become the main way smaller investors get returns. This change means that the investment landscape might focus more on private equity than on public markets.

Reading List 01/04/2025

Construction Physics • 11065 implied HN points • 04 Jan 25
💼 Business Venture Capital Startup funding Infrastructure Natural resources Regulations
  1. There are maps showing natural amenities across the US, ranking places based on factors like temperature and sunshine. The West Coast and Florida score well, while the Midwest does not.
  2. Venture capital funding is shifting, with larger firms getting most of the money while smaller ones are struggling. There's a big drop in initial public offerings, making it tougher for investors.
  3. Boeing's recent struggles can be linked to its past merger with McDonnell Douglas, which seems to have affected its product development negatively.

How Do VCs Really Make Decisions?💡

The VC Corner • 459 implied HN points • 10 Sep 24
💼 Business Venture Capital Investment Strategies Entrepreneurship Market Analysis Financial Metrics
  1. VCs find deals through strong networks and relationships, not just random pitches. They carefully prune their opportunities, meaning a standout startup has a better chance of getting noticed.
  2. When it comes to choosing which startups to invest in, VCs place a big emphasis on the management team and the market potential. A great team can adapt and succeed, no matter how the market changes.
  3. Valuation is a delicate balance where VCs analyze exit opportunities and compare with similar companies. They aim for high returns, especially on early-stage investments, which comes with a lot of risk.

Founder Mode👨‍💼, The Extinction of VC💀, How to Build More Pipeline🚀

The VC Corner • 259 implied HN points • 15 Sep 24
💼 Business Venture Capital Startups Funding Sales Growth
  1. The current landscape for venture capital is changing, and there are risks that could impact its future. It's important for founders to understand these shifts.
  2. Founders can take control of their growth strategies by focusing on building a solid sales pipeline. This can help them succeed even in uncertain times.
  3. Adapting to new growth approaches is necessary for SaaS businesses. Finding fresh methods can lead to sustained success and relevance.

Living beyond the edge

The Leap • 919 implied HN points • 15 Aug 24
💼 Business Venture Capital Startups Entrepreneurship Investment Innovation
  1. Skill and luck both play important roles in success, and understanding their balance can help us navigate challenges better.
  2. Nate Silver's new book dives into how to make decisions when facing uncertainty, which is relevant in today's world.
  3. Historically significant moments in tech, like the founding of PayPal, highlight the importance of timing and opportunity in achieving greatness.

Median Round Sizes📈, YC's Latest Batch🤖, The Perfect Pitch Deck🎯

The VC Corner • 459 implied HN points • 01 Sep 24
💼 Business Venture Capital Startups Investment Trends Pitch Decks Market Analysis
  1. Median round sizes in venture capital are important to track. They show how much money startups are raising on average.
  2. Y Combinator's latest batch is a great resource for new startups. It's helpful to look at what types of companies are being accepted.
  3. A perfect pitch deck can make or break a startup's chance of getting funded. It's key to present ideas clearly and attractively.

What to Watch in 2025

The Generalist • 860 implied HN points • 07 Jan 25
💼 Business Venture Capital Startups AI Trends Market Analysis
  1. In 2025, there will be big chances in defense tech and social services as the government starts using more tech from private companies. This means more jobs and growth in these areas.
  2. Artificial intelligence is set to grow, especially in healthcare and logistics, while crypto is expected to become more mainstream as regulations become clearer and institutional support increases.
  3. Consumer apps might make a comeback as major tech companies face antitrust issues, allowing new startups to find success in areas like entertainment and personal finance.

The Ultimate Investors List of Lists (Extended) 🚀

The VC Corner • 199 implied HN points • 13 Sep 24
💼 Business Investing Startups Venture Capital Funding Entrepreneurship
  1. Finding the right investors is super important for startup success. Connecting with the right people can really help your business grow.
  2. Using curated lists of investors saves you time. Instead of searching for hours, you can quickly find potential investors interested in your startup.
  3. Having access to a variety of potential investors increases your chances of success. The more options you have, the better your chances to find the right match.

The confidential YouTube Investment Memo by Sequoia you were never meant to see

The VC Corner • 519 implied HN points • 21 Aug 24
💼 Business Venture Capital Investment strategy Risk management Entrepreneurship Market Analysis
  1. Sequoia Capital's investment memo shows how they viewed YouTube as a potential leader in user-generated video. They spotted emerging trends like cheaper video equipment and better internet access that would help YouTube grow.
  2. The memo highlights the importance of a clear, simple investment thesis. The way Roelof Botha presented his ideas was straightforward and confident, making it easier for others to understand his vision.
  3. By analyzing both risks and opportunities, the memo provides a valuable lesson in balanced investing. Recognizing what could go wrong while staying focused on the potential for success is key in venture capital.

What Do You Invest in?

Pratyush’s Newsletter • 79 implied HN points • 16 Oct 24
💼 Business Investment Entrepreneurship Venture Capital Startup Founders
  1. Investors should look for unique founders who stand out with exceptional traits, like intelligence and grit. A well-rounded person often doesn't lead to great investments.
  2. Successful companies often become the top choice in their category and have strong characteristics that help them stay ahead. These can include tricky competition or special technology.
  3. Timing is crucial; it's better to invest in companies before they become popular in the market. If everyone's already paying attention, it might be too late to find a winner.

Last Week in AI #290 - OpenAI's massive VC round and DevDay, Flux 1.1, NotebookLM

Last Week in AI • 139 implied HN points • 08 Oct 24
🕹 Technology Artificial Intelligence Software Development Venture Capital Tech news Innovation
  1. OpenAI raised a massive $6.6 billion in funding, making it one of the most valuable tech companies. This will help them expand their research and computing power.
  2. At OpenAI's DevDay, they introduced a new Realtime API for developers, allowing nearly instant AI-generated voice responses for apps. Developers are excited about the new possibilities they can create.
  3. Black Forest Labs released a faster and improved version of their image generation model, Flux 1.1 Pro. This could change the game for how quickly and effectively images are created using AI.

How AI Disrupts Tech Investing🤖, Five Steps to Nail Your Pitch Deck🎯, SaaS Retention📊

The VC Corner • 199 implied HN points • 08 Sep 24
💼 Business Venture Capital Startups Investment Strategies Pitch Decks Customer Retention
  1. AI is changing how investors look at tech. It creates new chances for startups and shifts investment strategies.
  2. For a successful pitch deck, focus on grabbing attention with key elements like your mission and unique value.
  3. SaaS companies are finding new ways to keep customers from leaving, as retention strategies are becoming more important in 2024.

GTM Benchmarks📊, Age of Unicorn Founders💰, Future of Sales with AI🤖

The VC Corner • 359 implied HN points • 25 Aug 24
💼 Business Venture Capital Startups Sales Strategies Market Analysis
  1. GTM benchmarks are important for understanding how companies perform in the market. They help businesses know where they stand in comparison to others.
  2. The age of unicorn founders can influence the startup world. Younger founders might bring fresh ideas but can also face unique challenges.
  3. AI is shaping the future of sales. Businesses need to adapt and leverage AI tools to stay competitive and improve their sales strategies.

The Best Investing Advice

The Generalist • 760 implied HN points • 23 Dec 24
💰 Finance Investing Venture Capital Market Analysis Decision-making
  1. Investing is all about finding great companies, not just good deals. Focus on what makes a company truly outstanding.
  2. Diversify not just across different industries, but also over time. Don't rush into investments; think long-term and consider market changes.
  3. Startups should offer something unique that stands out. Instead of competing with existing options, create a choice that reshapes the conversation.

What Makes a Good Product-Market Fit?🎯, Global Markets Snapshot📊, GDP Growth Projections📈

The VC Corner • 419 implied HN points • 18 Aug 24
💼 Business Venture Capital Startups Market Trends Economic Growth Product Development
  1. A good product-market fit means the product meets the needs of its target audience. This ensures customers find value and want to buy it.
  2. Global market snapshots help investors understand economic trends and make informed decisions. Keeping an eye on these trends can lead to better investment choices.
  3. GDP growth projections are important indicators of a country's economic health. They can show how well an economy is doing and influence business strategies.

How much software budget do you need for an early stage fund?

The VC Corner • 459 implied HN points • 14 Aug 24
💼 Business Venture Capital Startup funding Technology Tools Financial planning
  1. You need a solid tech stack to improve efficiency in early-stage funds. This helps you manage tasks better and focus on high-impact work.
  2. A basic software budget for productivity can be around $1.2K per year per person, with additional costs for add-ons and data sources.
  3. Understanding your goals and resource needs is essential when choosing tools. Investing in the right data sources and proper tech can really boost your fund's performance.

Do Founders Ever Take a Vacation?🌴,AI and Longevity🤖, Venture Trends Q2 2024📊

The VC Corner • 579 implied HN points • 04 Aug 24
💼 Business Startups Venture Capital Technology Trends AI
  1. Many founders struggle to take vacations due to their busy schedules. Taking time off is often seen as a luxury rather than a necessity.
  2. Artificial Intelligence is playing a big role in improving health and longevity. People are excited about how AI can help us live longer and healthier lives.
  3. Venture capital trends are shifting, and investors are looking for new opportunities. It's important for startups to stay aware of these changes to attract funding.

Scale Ruins Everything

Cold Water • 19 implied HN points • 30 Sep 24
💼 Business Venture Capital Startups Investment Trends Economic Impact Corporate Responsibility
  1. Venture capital funding has led to many startups chasing rapid growth, even if their ideas could harm society. This can create big problems as companies scale up without considering the impact.
  2. Most startups fail, but VCs invest in many hoping to find a few successful ones. This pressure for growth can push companies to make decisions that negatively affect their communities.
  3. Founders should think about how their ideas might lead to negative outcomes at scale. It's important to consider whether every idea needs to become a billion-dollar business and what that means for society.

Founders over fifty.

The Common Reader • 1842 implied HN points • 08 Feb 25
💼 Business Entrepreneurship Investing Venture Capital Startups Innovation
  1. Older founders often have more experience and valuable connections than younger ones. This helps them spot opportunities that others might miss.
  2. Studies show the average age of successful entrepreneurs is around 45. Older founders are more likely to make successful sales than younger founders.
  3. Experience from past failures can improve the chances of success in new ventures. Many middle-aged entrepreneurs have the financial stability to start their own businesses.

U.S. venture capital has a globalism problem

Jeff Giesea • 279 implied HN points • 16 Sep 24
🇺🇸 U.S. Politics Venture Capital Foreign Investment Geopolitics Innovation National Security
  1. A lot of U.S. venture capital comes from foreign investors, which can present risks to national security. It's important to know where the money is coming from to protect innovation.
  2. Stricter rules and more transparency are needed in venture capital to prevent foreign influence and risks, especially in critical tech sectors.
  3. We should encourage the creation of venture funds that support U.S. interests and work with government agencies to secure technological advancements.

Term Sheets Demystified 📄🤝

The VC Corner • 659 implied HN points • 25 Jul 24
💼 Business Entrepreneurship Investment Fundraising Startups Venture Capital
  1. A term sheet is a non-binding agreement that lays out the basic terms of an investment. It's like a guide for both investors and founders to understand what's being offered.
  2. Key parts of a term sheet include the investment amount, valuation, and liquidation preferences. These details help both sides know what to expect if the company is sold or liquidated.
  3. Dividends can be part of a term sheet too, specifying how much investors might earn annually. It helps clarify when and how investors would get paid.

Multi-Product In Pictures

The VC Corner • 159 implied HN points • 05 Sep 24
💼 Business Tech startups Venture Capital Product Development Market Strategy Company growth
  1. Going multi-product is important for companies that want to grow and succeed. It can help them stand out in the market and attract more customers.
  2. Successful companies often have a clear plan for when and what new products to introduce. Timing and strategy matter a lot in this process.
  3. Many large public companies today started with one product and expanded later. Learning from their journeys can guide new founders as they build their businesses.

Everything Looks Like A Nail

Where's Your Ed At • 25075 implied HN points • 19 Oct 23
💼 Business Technology Venture Capital Inequality Social Responsibility Economics
  1. Marc Andreessen wants to portray himself as a victim despite his immense success and wealth.
  2. Andreessen promotes a vision of continuous technological advancement, but his actions and investments often prioritize maintaining the status quo.
  3. Andreessen's manifesto is filled with contradictions and hypocrisy, advocating libertarian economic thinking while benefiting from government intervention.

The case against living in the Bay Area, for ambitious tech people

Cloud Irregular • 3548 implied HN points • 22 Nov 24
💼 Business Entrepreneurship Tech industry Venture Capital Startup Culture Market Dynamics
  1. Living in the Bay Area might not be necessary for tech success. There are many ways to build a successful career outside of that bubble.
  2. The traditional SaaS business model may not be as effective anymore. Companies should focus on creating value in other ways beyond just software.
  3. A balanced team is better than one dominated by technical skills. Recognizing the importance of marketing, sales, and other roles can lead to better business outcomes.

You Are Not The Man In The Arena

Where's Your Ed At • 24184 implied HN points • 30 Aug 23
🕹 Technology Startup Culture Tech industry Venture Capital Cryptocurrency Artificial Intelligence
  1. The man in the arena speech by Theodore Roosevelt emphasizes the importance of taking action over criticism.
  2. Chamath Palihapitiya symbolizes a detrimental mindset in Silicon Valley of valuing image over actual value creation.
  3. The tech industry's obsession with funding specific kinds of founders and companies has created a harmful monoculture that prioritizes profit over societal impact.

Monkey Laundering

Where's Your Ed At • 20772 implied HN points • 26 Sep 23
💼 Business Cryptocurrency Venture Capital Investing Market Analysis
  1. Investing in NFTs as a way to own unique digital assets may not guarantee value or ownership of intellectual property.
  2. Many NFT projects overpromise benefits like voting power and ownership in the company, leading to unfulfilled expectations.
  3. The NFT industry is often characterized by scams, fake transactions, and inflated values, preying on the desperation of people seeking investment opportunities.

€1 Billion VC Fund in Spain💸, 10 Books for Founders, by Founders📚, The Power of Niche🎯

The VC Corner • 579 implied HN points • 14 Jul 24
💼 Business Venture Capital Startups Books Funding Entrepreneurship
  1. A new €1 billion venture capital fund has been launched in Spain to support startups. This fund aims to boost innovation and growth in the entrepreneurial landscape.
  2. There is a list of 10 books specifically for founders, written by those who have experience in building companies. These books can provide valuable insights and guidance for anyone looking to start their own business.
  3. Focusing on a niche market can be very powerful for businesses. It allows companies to stand out and cater specifically to the needs of a certain group of customers.

AI Bubble📉, Canva acquires Leonardo AI🎨, How to Write Cold Emails✉️

The VC Corner • 279 implied HN points • 11 Aug 24
💼 Business Venture Capital Startups Innovation Technology Trends Market Analysis
  1. There seems to be an AI bubble, which means the excitement and investment in AI may be too high right now. It's important to be cautious and not assume growth will continue at the same rate.
  2. Canva has bought Leonardo AI, showing how big companies are integrating AI tools into their platforms to enhance creativity and productivity. This could lead to more user-friendly design solutions.
  3. Writing effective cold emails is crucial for reaching out to new contacts and building relationships. It’s all about being clear, concise, and personal in your approach.

How to Exit

The Generalist • 520 implied HN points • 10 Dec 24
💰 Finance Venture Capital Investing Market Trends Liquidity Regulations
  1. Exiting from investments is just as important as entering them. Investors need to remember that cashing out is a key part of the venture capital game.
  2. Secondary transactions are becoming more common and important. Investors must learn how to handle these types of deals to benefit from changing market conditions.
  3. Understanding when and how to sell in the secondary market is crucial. Knowing the right timing can help investors meet their targets and provide returns to their supporters.

Data-Driven Equity Splitting📊, The Path to PMF, Figma's $12.5 Bn Valuation🎨

The VC Corner • 379 implied HN points • 28 Jul 24
💼 Business Venture Capital Startups Fundraising Investments Equity
  1. Fundraising activity peaks between Labor Day and Christmas, so startups should prepare now to attract investors.
  2. Data-driven approaches can help startups split equity more fairly, making it easier to attract and keep talent.
  3. Figma's impressive $12.5 billion valuation shows the potential for growth in the tech industry, which should inspire other startups.

How to Avoid Becoming a VC Meme and Actually Add Value

The Generalist • 700 implied HN points • 21 Nov 24
💼 Business Venture Capital Investment Strategies Entrepreneurship Startups Growth Strategies
  1. Venture capitalists should focus on actually helping founders by connecting them with great talent, customers, and funding. It's important not just to say you add value, but to really do something meaningful.
  2. It's better for investors to set realistic expectations about their contributions. Overpromising can damage relationships with founders, so honesty about what you can offer is key.
  3. Investors should respect the founder's role and not try to take over. They bring valuable insights but need to let entrepreneurs lead their own companies and make their own decisions.