TLDR FOUNDERS 2024-12-16

WHAT IS A GREAT BUSINESS?

A great business fulfills consumer preferences that competitors can't, building goodwill and consumer surplus. The more preferences it serves beyond what's necessary for a transaction, the more goodwill it creates. Great businesses methodically build and release this "pressure" through pricing, not mistakes. Management's role is to grow goodwill while strategically monetizing it. Being a great business doesn't guarantee being a great investment - the latter depends on the investor's entry price and reinvestment opportunities. There's no universal formula; understanding the principles is key.

BEAT AND NO RAISE?

Despite flat estimates, software stocks saw a 6% median multiple expansion and 9% returns in 2024. Several factors could drive further multiple expansion in 2025: stabilizing macro conditions, AI revenue potential, low rate risk, and policy tailwinds. The risk leans to the upside, with more potential positives than negatives ahead. Software's "reversion to the mean" could be the next big trade, though Big Tech AI winners may still be underrated. Overall, it's an exciting time to invest in tech.

DON'T REINVENT USER PROFILING DURING ONBOARDING. THIS IS WHAT IT SHOULD LOOK LIKE

First-party data on user demographics and firmographics is crucial for personalizing experiences and analyzing the right segments. Collect it directly from users in onboarding with a 3-step flow: 1) About the user 2) About their company 3) Invite team members. Ask multiple-choice questions on intent, role, seniority, and use cases. Show the team invite to everyone, setting the admin as default. Then ask about their goals to broaden their perspective. Keep it simple, use logic, and only ask what you'll use. A 15% drop-off is worth the data.

INTEL'S DEATH AND POTENTIAL REVIVAL

In the 1980s, IBM's decision to outsource the DOS operating system to Microsoft and hardware to Intel laid the foundation for the dominance of both companies. However, the rise of mobile technology, signaled by Apple's iPhone launch in 2007, shifted the focus to efficiency, breaking Microsoft's and Intel's long-standing hold on the market as ARM and RISC architectures took precedence. Intel missed critical opportunities in the mobile space and is now facing challenges competing against TSMC's advanced manufacturing capabilities, with calls for U.S. government intervention to support Intel's foundry capabilities as a matter of national security.

exceptionally talented engineers from Latin America. Telescoped

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BROWSERBASE

A web browser for your AI.

AQUA

Write clear, well-formatted text using only your voice.

MODEL-APPLICATIONS AS A SERVICE

Successful AI companies will offer highly customized, vertically-integrated solutions in 2025 - "Model-Applications as a Service.” Winners will offer deep expertise, seamless integrations, and robust, secure infrastructure. AI-native startups will gain ground with agility and customer-centricity. The shift to "agentic" AI doing multi-step tasks will blur the lines between software and services.

MANAGE THE HOW, NOT THE WHAT

A lot of founders jump into the role of manager without much practice. We maintain a high bar for quality, and when things don't meet that bar, we often have the urge to just do that thing ourselves. This post provides some keen insights on how to provide the right frameworks for your employees by being super clear on the desired outcome, and less clear on the path to get there.

PLAID'S PERFECT TIMING

Plaid has benefited from several tailwinds in the fintech space.

THE HALF-HOUR OF POWER

Do this 30-minute exercise to focus a scattered startup: list your best customers, detail why they bought, then make the obvious decisions that emerge.

ACCREDITED INVESTOR GUIDE FOR ANGEL INVESTORS

Startup investments are limited to a specific class of individuals the Securities and Exchange Commission (SEC) classifies as “accredited investors.”

APPLE PARTNERS WITH BROADCOM TO DEVELOP FIRST AI SERVER CHIPS, LAUNCH SET FOR 2026

Apple is collaborating with semiconductor developer Broadcom to create a server chip optimized for artificial intelligence workloads.