The Down Round

The Down Round Substack delves into the intricacies of SaaS, tech, and VC, offering insights on startup growth, investment strategies, and the impact of emerging technologies. It addresses the psychological aspects of entrepreneurship, market dynamics, strategic planning, and the importance of ethical and empathetic approaches in business and investment.

Startup Growth and Retention Investment Strategies Emerging Technologies Entrepreneurship Psychology Market Dynamics Strategic Planning Business Ethics Empathy in Business

The hottest Substack posts of The Down Round

And their main takeaways

Soft landings in venture

78 implied HN points • 18 Jan 24

Startups need to focus on building sustainable business models for long-term growth and survival.
Companies with high valuations must navigate carefully to achieve a 'soft landing' without damaging their cap tables.
Entrepreneurs should consider various strategic and financial options, including debt and unconventional fundraising, to ensure business continuity.

Some ideas that are too short for their own essays, part 2

39 implied HN points • 01 Feb 24

💼 Business Startups Investing Entrepreneurship Benchmarking Risk management

Consider setting a company's burn based on retention, not growth rate.
The 'burn multiple' metric is not ideal for managing a business.
Don't take investor terms personally - price paid doesn't always reflect value created.

Some ideas that are too short for their own essays

117 implied HN points • 10 Jul 23

💼 Business Startups Investing Metrics Venture Capital Career development

A dangerous startup grows fast but has poor retention.
Startups with strong retention but modest growth can be good investments.
Successful early-stage teams are obsessed with customers, learning, and allies.

Founders & suicide

78 implied HN points • 03 Aug 23

🏥 Health & Wellness Mental health Personal Development

Founders may experience extreme stress and mental health challenges due to the pressure of their professional identities.
The societal perception of founders as special individuals can lead to both admiration and intense scrutiny.
It's crucial not to solely tie your self-worth to your profession or external descriptors.

Welcome to the AI bubble

98 implied HN points • 14 Jun 23

🕹 Technology AI Market Investing Venture Machine Learning

The AI industry may be experiencing a bubble similar to what the crypto industry went through before.
There are signs of hype and questionable practices in AI, such as companies quickly pivoting to AI and non-experts making bold claims.
Being cautious and vigilant in an AI bubble is important to avoid getting caught up in unrealistic narratives and disconnected market valuations.

Get a weekly roundup of the best Substack posts, by hacker news affinity:

I find your lack of empathy disturbing

98 implied HN points • 14 Mar 23

💼 Business Finance Technology Startups Venture Capital Banking

The blame for the SVB situation falls on multiple parties.
Bank runs are a complex and age-old issue caused by human nature.
Empathy is essential, especially in the face of tragedy.

Let admiration be your compass

39 implied HN points • 10 Apr 23

💼 Business Career Advice Mentorship Founders Investing

Let admiration guide your career decisions
Choose colleagues and mentors that you admire and want to emulate
Admiration should be based on desirable qualities, not flaws

You already have a ticket for this bus

19 implied HN points • 15 May 23

💼 Business Startup Investing Management Performance evaluation Accountability Decision-making

Investors should support startups with helpful advice on future decisions.
Criticism should be constructive and not dwell on past mistakes.
Investors bear responsibility for the decisions made in the past and should focus on moving forward.

Four hypotheses about generative AI

19 implied HN points • 30 Mar 23

🕹 Technology AI Software Development APIs

There's value in playing defense against generative AI for enterprises
Start by using LLMs in internal software development before customer-facing products
The model builders for LLMs may not have a significant advantage long-term

Really, really good blog posts on building, scaling, and financing startups

19 implied HN points • 07 Mar 23

💼 Business Startups Funding SaaS Economics Management

Having a core group of users who love your product is crucial for startup success and growth.
Carefully consider how much funding your startup actually needs, as too little or too much can have negative consequences.
Not all revenue is the same in a business, focus on creating high-value revenue streams for success.

The Great Page Break

0 implied HN points • 25 Apr 23

💼 Business Venture Capital Deals Industry Trends

Deals are happening again in various industries like AI, SaaS, and crypto, despite many being down rounds.
There's a shift in attitude from dwelling on past losses to looking towards the future with more acceptance and optimism.
The industry is experiencing a reset after a tumultuous period, leading to a renewed focus on growth and a sense of moving forward.