Daily Edition · Page 7

THE DAILY INDEX

Technology, AI, software, security, crypto and business

HEADLINES & TRENDS

TLDR Founders

HOW TO HIRE PEOPLE BETTER THAN YOU

The hiring problem nobody talks about is that you can't evaluate domain expertise you don't have. You know you need someone sharper than you in a given area, and that's exactly why you can't tell which candidate actually is. The test that works is whether they generate ideas that reshape how you think about the company and whether you'd learn from them in meetings. The sharpest gut check is simpler, which is that if you feel it's easier to just do the work yourself, you hired the wrong person.

NUMBER GO DOWN: INNOVATION, CAPITAL, AND DEFLATION FROM FIRST PRINCIPLES

The 2% inflation target shapes the cost of capital for every founder raising a round, so it's worth knowing where the number came from. You'd assume rigorous economic research. Nope. A New Zealand finance minister pulled it out of the air during a 1980s TV interview to influence public expectations, and every central bank on earth just copied it. The broader argument is that good deflation (prices falling because entrepreneurs found cheaper ways to produce) is actually the definition of economic progress, and Moore's Law is the cleanest proof since nobody waited until 2024 to buy a computer despite knowing prices would halve every 18 months.

THERE IS NO PIVOT

When software was expensive to build, commitment was cheap, and changing direction was the crisis that demanded a name. Now that building is cheap, the economics invert. Commitment becomes the expensive thing, and iteration is the default mode. The companies winning now look less like ships changing course and more like test kitchens running permanent R&D, which is why calling any given change a pivot has started to sound like a word from a different era.

HOW TO ANGEL INVEST (EVEN IF YOU HAVE NO MONEY)

Founders in the AI sector currently prioritize investors who offer specialized operational expertise and industry connections rather than simple capital deployment. Emerging professionals can bypass personal capital constraints by joining venture capital scout programs, which provide institutional funding allocations in exchange for a percentage of future returns. Successful angels build their portfolios by focusing exclusively on domains where they can provide unique strategic value and by restricting their investments to intimately known peers or exceptionally proven founders.

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