Daily Edition · Page 9

THE DAILY INDEX

Technology, AI, software, security, crypto and business

HEADLINES & TRENDS

TLDR Founders

POWER IN THE AGE OF INTELLIGENCE

Tech companies like Stripe, SpaceX, and Base Power illustrate the "winner takes more" trend, where firms leverage technological advancements to dominate industries. The focus shifts from protecting software moats to identifying industry constraints, breaking them, and seizing "High Ground" for expansion. As technology progresses, companies controlling scarce assets benefit the most, driving increased economic concentration and growth opportunities.

THE SOFTWARE SHAKEOUT: WHAT IS DURABLE AND WHAT IS NOT IN THE AGE OF AI?

$1T in software market cap evaporated in three weeks. This framework sorts the survivors from the dead. Software in the path of doing work (CrowdStrike, Stripe, Shopify) is durable. Software that generates paperwork about work (DocuSign, Monday.com, Zendesk) gets replaced by AI that just does it. The scary middle - Atlassian, Salesforce, HubSpot - is eroding slowly but the cliff is coming. If you're building a product that humans fill out so other humans can read, rethink the entire premise before your next board meeting.

HIRING FOR A NEW ROLE/FUNCTION FOR YOUR FIRST TIME? DO THIS FIRST.

A bad first hire in a new function costs you a year. The fix takes one week. Before you write the JD, do 5-10 calibration calls with people who already hold the role at companies one stage ahead of yours. You'll learn what "great" actually looks like, what comp is real, and which interview questions actually separate the best from the mediocre. Most founders skip this step and end up hiring on vibes. Don't be that founder.

ADVICE WE REJECTED TO BECOME ONE OF THE FASTEST GROWING START-UPS EVER

Deel co-founder Shuooo Wang details how the company scaled by ignoring traditional startup "best practices," such as hiring a VP of Sales early or focusing on the SF talent pool. Instead, Deel prioritized founder-led sales to maintain customer context, hired for traits over pedigree, and invested in 100+ local entities to build a moat around compliance and reliability. By favoring frugality and vertical M&A over high burn, the company leveraged first-principles thinking to become one of the fastest-growing startups.

IN DEFENSE OF VERTICAL SOFTWARE

The industry is currently asking why vertical software needs to exist when AI companies are pouring billions of dollars into building the most powerful general-purpose AI systems in the world. Enterprise software is just code, but that's not where the value of software comes from. The value of enterprise software comes from understanding the process and the organization well enough to make the software do exactly the right thing. Process engineering will continue to be the foundational advantage or vertical software.

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