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THE DAILY INDEX

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REPLIT'S CEO ON BUILDING A COMPANY THAT CAN RUN ITSELF

Amjad Masad started Replit in 2016 with his wife, designer Haya Odeh. Replit began as a website where beginners could run code in a browser without having to install anything. Today, it features an agent that can design, write, test, deploy, and host applications from a prompt. This post contains an excerpt from an interview with Masad where he discusses the way AI is changing work, AI job losses, the future of software, and more.

SHOULD YOUR EARLY INVESTORS ALWAYS FOLLOW ON?

A seed investor can love your company and still skip the next round. The math may leave no other choice. A fund's $100,000 at a $2 million valuation can return 100 times at a $200 million exit. If it puts its remaining $500,000 in at a $10 million valuation, the company needs a $1 billion exit for that new money to do the same. The fund may prefer five early bets. A Series A fund that invested early for access and then passes at Series A is a different signal. Ask what earns the second check before taking the first.

HOW TO GROW YOUR MARKETPLACE TO 500,000 USERS

PromptBase has 500,000 users and roughly 300,000 listings. It started with no users, two listings, and a bad website. The founder became seller number one, uploaded the first prompts himself, and found the next sellers in Reddit threads. He messaged them after their first sale, fixed bugs quickly, and shared their listings. Storefronts and lower fees gave sellers a reason to bring buyers, while every prompt became a page Google could find. The marketplace grew by hand before it grew through sellers and search.

I LAUNCHED A FAKE DEODORANT BRAND TO SEE IF AI WOULD NOTICE

Someone spent $11.25 and less than an hour making up a deodorant brand. Three weeks later, ChatGPT started mentioning it. By day 30, the fake brand ranked first in four answers and once beat MAGS Skin, a real product with clinical testing and a National Eczema Association seal. No fake reviews, Reddit posts, or press. It did not take over deodorant search. It worked for only two narrow questions about sensitive skin. Claude, Gemini, and 13 broader searches ignored it. Native still won 99 of 180 answers. The fake brand found two questions the real brands had left open.

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