TLDR FoundersNovember 8, 2024

TLDR FOUNDERS 2024-11-08

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01HEADLINES & TRENDS

GUIDE TO SELLING YOUR COMPANY

Many companies today are finding IPOs increasingly difficult to achieve. It is essential to explore alternative exit strategies. The two primary options are selling the business or shutting down and returning investors' money. For those considering selling, it's crucial to understand the different types of acquirers (PE funds and strategics), the due diligence process, post-acquisition operational changes, and current valuation trends, especially in the software industry. Valuations have dropped from their 2021 highs, with most software businesses now trading at lower multiples unless they meet high growth and profitability standards.

onlycfo.io6 min read

THREE VIRAL EXPERIMENTS WITH AI-POWERED GAMES

AI technology is rapidly transforming video games, with companies like Decart and Etched leading the charge. Their AI-generated game Oasis, a Minecraft-like experience, demonstrates how AI can create dynamic, real-time environments by predicting and generating frames based on vast amounts of training data. Meanwhile, other projects like AI-powered Pokémon experiments and Skyrim mods are showcasing how AI can enhance gameplay, from training AIs to play games to creating more interactive NPC companions. These developments hint at a future where AI fundamentally changes game design and player experiences.

a16zgames.substack.com6 min read

THE LONG TAIL OF AI

The venture capital landscape has shifted dramatically toward AI investments, with 49% of all venture funding in Q2 2024 going to AI and machine learning startups. While AI-native companies and model providers receive significant attention, there exists a vast "long tail" of non-AI companies implementing artificial intelligence in various ways, from building proprietary models to using pre-built AI tools. These companies are adopting AI through four main approaches: developing independent models (like Bloomberg's BloombergGPT), leveraging existing closed-source models (like Zapier's use of OpenAI), building on open-source models (like Meta's Llama), and utilizing pre-built AI tools.

research.contrary.com8 min read

02STRATEGIES & TACTICS

WHY YOUR PRODUCT IDEA SOUNDS TOO COMPLICATED

Product descriptions can vary in complexity, from simple adjective+noun combinations like "electric car" to convoluted, hard-to-understand explanations. The simpler the description, the easier it is for customers to grasp the product's value, even if it means sacrificing some of the builder's desire for complexity. Simple descriptions make products more memorable, easier to market, and less costly to acquire customers. To simplify overly complex pitches, product builders should ask target customers how they would describe the product and listen carefully.

andrewchen.substack.com5 min read

INSIGHTS FROM READING 3,000 STARTUP PITCH DECKS

A review of 3,000 startup pitch decks found that the most successful founders incorporated key distribution insights, not just product insights. The best pitches often blended product-led acquisition strategies, such as built-in virality, with compelling storytelling to foster organic growth effectively.

threadreaderapp.com5 min read

GETTING PR FOR YOUR SAAS

In this post, the founder of Simple Analytics shares how they successfully used newsjacking to gain PR exposure without spending money. They managed to get featured on platforms like Hacker News and Reddit by creating a bot to track relevant news and quickly write insightful articles, which boosted their visibility and SEO. They also experimented with reaching out to journalists with pre-written articles, though this strategy has yet to yield significant results.

1millionarr.substack.com5 min read

03TOOLS & RESOURCES

THE BATTERY VENTURES 2024 STATE OF OPENCLOUD (REPORT)

While generative AI deployments are increasing in enterprises, there remains a gap between expectations and reality.

battery.com

STATE OF PRE-SEED: Q3 2024 (REPORT)

Carta's Q3 2024 report on the US pre-seed market reveals insights on deal sizes, management fees, valuation caps, SAFEs vs. convertible notes, and geographic distribution of pre-seed activity.

carta.com

COMMERCE PRO

End-to-end content creation built for commerce success.

commercepro.capcut.comTool

04MISCELLANEOUS

WHY SALES SUCKS: HOW TO MAKE IT YOUR OWN

The "Arrival Fallacy" refers to the disappointment people often feel after achieving a goal, as the anticipated satisfaction fails to materialize. In sales, this phenomenon can occur once proficiency is reached, leading to a sense of monotony. The solution lies in striving for mastery by adopting advanced techniques like developing a clear point of view, fostering deep curiosity, and creating memorable "signature moves" to keep the work engaging and personally fulfilling.

hellooperator.substack.com5 min read

BEYOND OVERPREPARATION: HOW TO START BEFORE YOU FEEL READY

Overpreparation can impede progress by giving the false impression of productivity without meaningful action. While preparation is essential, true success arises from taking action, even when you don't feel completely ready. To cultivate an action-oriented mindset, limit your preparation time, steer clear of busywork, and focus on learning through experience. This approach helps overcome hesitation and creates momentum toward achieving your goals.

nesslabs.com4 min read

4 STAGES OF GO-TO-MARKET STRATEGY

Go-to-market (GTM) strategies evolve through four key stages: problem-solution fit, product-market fit, go-to-market fit, and scaling. Each phase requires distinct approaches and metrics for success. Rather than copying competitors or relying on outdated strategies, successful GTM execution requires leveraging unique strengths while realistically working within available resources and traction. The key to achieving exponential growth lies in implementing growth loops across multiple channels, as demonstrated by companies like Rows.com, which successfully combined viral marketing, collaboration features, and user-generated content to drive sustainable expansion.

thevccorner.substack.com3 min read