TLDR FoundersApril 12, 2024

TLDR FOUNDERS 2024-04-12

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01HEADLINES & TRENDS

THE AI WORKFORCE IS HERE: THE RISE OF A NEW LABOR MARKET

This article discusses the evolving landscape of B2B SaaS, where AI is increasingly capable of executing tasks without human intervention, merging the labor and software markets and creating opportunities for startups to offer "AI colleagues" that perform job functions and "AI vendors/services" that automate entire workflows. This shift is expected to expand markets, increase margins, and lead to the creation of new types of companies, while also necessitating rapid workforce re-skilling and potentially transforming large businesses to be run by minimal human staff.

nfx.com6 min read

THE TELEHEALTH TIPPING POINT

Telehealth startups, such as Honeydew for dermatology, are improving access to healthcare in the US by leveraging technology and changing consumer behaviors. Despite poor health outcomes and high healthcare costs in the US, these vertical telehealth companies are emerging across various specialties, providing more convenient and accessible care. They offer healthcare professionals opportunities to supplement their income or work full-time.

digitalnative.tech10 min read

WIZ: SCALING FROM $1M ARR TO $100M ARR IN 18 MONTHS

Wiz, the fastest-growing software company ever, achieved explosive growth and a $10B valuation in just 3 years by offering a disruptive cloud-native security platform that provides enterprises with unified visibility and protection across multi-cloud environments. Investors were attracted to Wiz due to the founding team's strong track record and ability to execute, the product's technological innovations and intuitive UI, the acute market need driven by the complexity of securing cloud environments, and the company's rapid adoption by large enterprise customers.

signatureblock.co6 min read

02STRATEGIES & TACTICS

HUMOR FOR GROWTH: THE STRATEGY YOU'RE MISSING

Startups can use humor in clever and appropriate ways as a growth strategy. This has the effect of humanizing their product and making it more memorable to buyers. However, it can't be slapstick - humor has to be deployed correctly in a way that shows your nuanced understanding of the market, delights with surprise, and connects your company to common experiences felt by those in the industry.

news.aakashg.com18 min read

THE MONETIZATION PLAYBOOK WE USED AT EVENTBRITE

Eventbrite's journey to profitability involved a strategic shift in its monetization approach. By evaluating each feature based on its impact on key growth metrics like virality, activation, retention, and willingness to pay, the company developed a playbook that maximized both revenue and network effects. The team strategically bundled features into tiered packages, charging for differentiated, high-value offerings while giving away those that drove user adoption and engagement.

caseyaccidental.com5 min read

SAAS COGS VS. OPEX

Accurately categorizing costs as Cost of Goods Sold (CoGS) and Operational Expenses (OpEx) is key to calculating Gross Profit Margins (GPM), a crucial metric for SaaS scalability and profitability. This article provides a refresher on relevant P&L items, typical CoGS items in SaaS, and benchmarks for GPM. A GPM of 75-80%+ is considered good, with higher percentages potentially leading to better valuations at exit.

saas.wtf4 min read

03TOOLS & RESOURCES

CAPTIONS

Make videos you actually want to share (with AI).

captions.aiTool

GENERATE (ACCELERATOR)

2-month program to help B2B software companies using AI grow faster.

altcap.com

FORBES 2024 AI 50

Recognition of the most promising AI companies by Forbes' AI 50 list.

forbes.com9 min read

04MISCELLANEOUS

THE MESSY REALITY BEHIND A SILICON VALLEY UNICORN

For 19 months, sociologist Benjamin Shestakofsky studied the inner workings of AllDone, a tech startup that became a Silicon Valley unicorn by creating a digital marketplace for local services. It heavily relied on Filipino contractors to manually perform tasks assumed to be automated, which allowed the company to rapidly scale despite its software engineers being frequently preoccupied with recruitment. This reliance on low-cost manual labor highlights the persistent role of human workers in the automation era and underscores the global inequalities that technological advancements continue to exploit.

spectrum.ieee.org8 min read

AI WILL NOT REPLACE SEARCH AND SEO WILL NEVER DIE

Despite the rise of AI and language models like ChatGPT, search engines and SEO will remain relevant and important. While AI-powered tools can assist with various SEO tasks, they cannot fully replace the human expertise and decision-making required to develop and execute a successful SEO strategy. Businesses that recognize and adapt to this reality will be well-positioned to succeed in the future.

productledseo.substack.com4 min read

EIGHT KEY LESSONS FOR ROCKET-SHIPPING AI PRODUCTS

This article outlines eight key lessons for successfully launching AI products, emphasizing the importance of rapid execution, customer-driven development, and continuous innovation. It highlights strategies shared by leaders from companies like Adobe, Notion, and Perplexity, such as leveraging user feedback for product improvement, structuring teams for flexibility, managing costs, and internally testing features before release.

unsupervisedlearning.substack.com4 min read