TLDR FoundersJuly 8, 2024

TLDR FOUNDERS 2024-07-08

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01HEADLINES & TRENDS

DECLINING GROWTH

Over the past two years, the median next twelve months (NTM) growth rate for cloud software companies has significantly declined from around 25% to 12%, largely due to macroeconomic conditions and a lack of high-growth IPOs. Valuations, typically based on revenue multiples, also reflect this trend, with high-growth companies now having a median multiple of 10.7x, mid-growth at 7.9x, and low-growth at 3.8x, indicating a general slowdown in the sector's growth and valuation metrics.

cloudedjudgement.substack.com5 min read

ZUCKERBERG AND THIEL ON MILLENIALS

In a series of emails, Peter Thiel and Mark Zuckerberg discussed the need for Facebook to better understand and appeal to Millennials, as they are a key demographic for the company. They explored how Facebook's products, messaging, and philanthropic efforts could be tailored to resonate more with the values and experiences of this generation. The conversation also touched on broader societal trends, such as the delayed generational transition of power from Baby Boomers to younger generations, which is expected to accelerate in the coming decade.

techemails.com6 min read

THE LITTLE TECH AGENDA

Marc Andreessen and Ben Horowitz argue that "Little Tech" startups are critical for maintaining American technological supremacy, economic vitality, and military strength in the 21st century. However, they believe bad government policies, regulatory capture by incumbent companies, and a lack of political engagement by startups pose major threats to Little Tech's success. Andreessen and Horowitz call for defending Little Tech politically and enacting positive policies to help startups flourish, which they believe could drive major improvements in Americans' standard of living and ensure continued U.S. leadership.

pmarca.substack.com7 min read

02STRATEGIES & TACTICS

HOW GITHUB GROWS AND MAKES MONEY

GitHub has experienced tremendous growth, reaching over 100 million developers and $1 billion in annual recurring revenue by 2023. Despite being acquired by Microsoft in 2018, the company has maintained its developer-friendly culture and focus on open-source collaboration, which has been crucial to its success. GitHub's revenue model has evolved to include subscription plans, enterprise solutions, AI-powered tools like Copilot, and a marketplace for third-party extensions.

productify.substack.com9 min read

EMOTION-DRIVEN SEO

Creating optimized content that resonates with your target audience involves more than just following a logical, formulaic process. By weaving emotion into your content and putting people first, you can create content that not only satisfies search engine algorithms but also deeply connects with your customers' needs, feelings, and desires, ultimately driving more sales and engagement.

moz.com7 min read

FREE TRIALS ARE DYING FOR SAAS B2B

Traditional free trials are losing their effectiveness in driving user engagement and conversions in the rapidly evolving world of B2B SaaS. A new approach, centered around the "Try It Yourself" call-to-action (CTA), is emerging as a powerful alternative, inviting users to experience the product's value firsthand through frictionless, interactive playgrounds. By tapping into psychological principles like the immediacy effect and reduced risk perception, this paradigm shift in SaaS marketing offers the potential for increased user engagement and conversions.

enchanting.io3 min read

03TOOLS & RESOURCES

PRODUCT ONBOARDING

A free library of product onboarding examples from across the internet.

productonboarding.comTool

10 BOOKS FOR FOUNDERS, BY FOUNDERS

Here's a list of 10 essential books recommended by founders for founders.

links.tldrnewsletter.com3 min read

MINDPAL

Build any internal AI tool in 5 minutes.

links.tldrnewsletter.comTool

04MISCELLANEOUS

USEFULNESS GROUNDS TRUTH

The debate on whether large language models (LLMs) are intelligent often devolves into semantic arguments, which are inherently empty. Instead of focusing on abstract definitions of intelligence or truth, this author suggests reframing the question to consider the practical usefulness of LLMs, emphasizing that truths are valuable only insofar as they have real-world applications. This pragmatic approach, advocating for the evaluation of ideas based on their tangible impact and utility, aligns with William James' philosophy.

invertedpassion.com5 min read

WITH NOTHING TO DO

Engineers often find themselves idle when a startup faces acquisition or bankruptcy, leading to existential reflections. In such moments, the realization hits: meaningful work is paramount. This author's experience underscores the importance of work that feels significant, as mere tasks become unbearable when detached from impactful outcomes. It highlights a critical lesson for founders: ensure your team sees the value in their contributions, especially during uncertain times.

registerspill.thorstenball.com4 min read

NO RULES RULES

The secret to Netflix's successful work culture lies in three main pillars: hiring only top talent, fostering candid communication, and minimizing controls. Netflix has created a high-performing, innovative workplace that attracts and retains the best people in their fields by paying top market salaries, measuring performance rather than hours worked, and trusting employees with information and decision-making power.

techbooks.substack.com8 min read