Tools for progress #15
The big stack game of LLM poker, Rules of banking to not get fired, 30 and not retired
We (humans) read hundreds of articles on company building, angel investing, and self-management and curate the best ones into a weekly summary—helping founders and operators stay on the top of their game.
Better thinking
Top 10 Most-Read Essays of 2024 (so far) (2 minute read)
The year’s most popular essays from Rex discuss how AI is revolutionizing content creation, the “Huberman-ization” of health awareness, the bifurcation of venture capital, and the forces shaping global retail, and the evolution of “Business-in-a-box” models. Also covered: viral growth tactics and the importance of questioning social constructs in innovation.
Staying Sharp in a Fast-Paced World (4 minute read)
To stay ahead of the curve in a rapidly evolving business and technology environment, continuous learning is essential. There are two complementary learning models: focused learning and serendipity learning. Focused learning involves setting clear goals, breaking down topics into smaller parts, time-boxing learning sessions, and reflecting on the insights gained. Serendipity learning, on the other hand, involves curating a feed of content related to one's domain, scheduling time for exploration, and engaging with the content. Incorporate both models to stay sharper in a fast-paced, information rich world.
The Big Stack Game of LLM poker (3 minute read)
Sarah Tavel, GP at Benchmark, argues that as LLMs become more sophisticated, their ability to handle increasingly complex tasks will unlock tremendous economic value. However, the major challenge is that the capital required to train each new, more advanced LLM increases exponentially, and the pricing power of older models becomes commoditized. This has created a “big stack game of LLM poker”, where tech giants are pouring in massive investments hoping to dominate the future of AI. Yet, the long-term winner in this poker game is still uncertain, as the race continues with high stakes and an uncertain outcome.
Operational tactics
Should you Product-led Growth? (18 minute read)
Product-led Growth (PLG) isn't a magic solution, but a nuanced strategy crucial for survival in today's tech landscape. Successful implementation requires understanding your product's complexity, customer lifetime value, and market position. Companies must balance human-touch sales with self-serve options, adapting as they grow. Startups should assess their unique situation to determine the optimal mix of PLG and traditional sales approaches.
Rules of Banking to Not Get Fired (4 minute read)
There are two rules of banking that CFOs and finance professionals should follow to ensure the safety and preservation of their cash. The first rule is to minimize risk and exposure. This includes avoiding having all cash in a single bank account, ensuring cash is protected above FDIC limits, and implementing robust banking controls. The second rule is preservation of capital. Instead of chasing higher yields, companies should aim to earn the money market fund rate on excess cash, while maintaining liquidity to meet operational needs. Follow these rules to safeguard your company’s lifeblood and hopefully, not get fired.
How to Get an Enthusiastic Yes (5 minute read)
Stop the self-serving pitch and start positioning your asks for maximum impact. Wes Kao shares a simple framework to unlock enthusiastic support for your ideas and initiatives: when making requests, frame them in a way that highlights the benefits to the other person, not just the benefits to yourself. Whether it’s a sales pitch or an internal work request, make the request 90% about the recipient’s needs and interests. Apply consistently and perhaps you’ll get tired of hearing ‘yes’ too frequently.
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Angel investing
10 Essential Tips For New Angel Investors (5 minute read)
Angel investing isn't a sprint; it's a 10-year hike. Your backpack essentials? Patience to build pattern recognition, the humility to offer value beyond money, and an obsession with team quality. Don't just check the tech; live it. And remember, even the best startups might take a decade to summit. Pack your boots, not your FOMO.
The Mike Speiser Incubation Playbook (23 minute read)
Kevin Kwok, a new addition to Sutter Hill Ventures, describes his boss’ approach to VC. Mike Speiser’s VC approach focuses on incubating companies rather than traditional investing, often taking on the interim CEO role. His strategy involves betting on major market shifts, attracting technical co-founders, and providing hands-on support throughout the company-building process. This model has led to notable successes like Snowflake and Pure Storage. According to Kevin, Speiser’s approach is a better way to drive innovation faster, rather than merely being a tollbooth on innovation.
The Corporate Life Cycle: Managing, Valuation and Investing Implications (16 minute read)
Aswath Damodaran, argues that businesses, like human beings, go through various stages of growth, maturity, and decline, and that understanding this life cycle is crucial for making effective business and investment decisions. From start-up to decline, learn how a company’s profile impacts its cash flows, growth, and risk appetite.
Managing your career
The Secret of the Best Engineering Manager I Know (4 minute read)
'Givers' - those who help others unconditionally - often emerge as top performers. While initially struggling, givers ultimately excel due to their broad knowledge, strong networks, and visibility. Fostering a giving culture can drive team cohesion. However, balance is key; avoiding over-giving and encouraging strategic generosity can create a high-performing, supportive environment.
Enthusiasm: Managing Our Most Precious Resource (2 minute read)
To empower your team and boost productivity, consider using this enthusiasm-enhancing approach. This approach lets people allocate themselves to tasks based on their interests and motivations, rather than having managers make the assignments. Giving your people agency and opportunities for mastery is crucial for maintaining high levels of enthusiasm and engagement, which are the most valuable resources in an organization. The reality is that matching people to tasks is fundamentally a people problem, not an operations research problem, like bin packing or Tetris.
30 and Not Retired (5 minute read)
The concept of being "retirable" by 30, through prodigious achievements or unconventional paths, has become a significant, and often unrealistic, societal expectation, especially in certain communities. Seeing peers achieve “retirable” status by their 30s can trigger feelings of envy, inadequacy, and the desire to catch up or surpass them, even though the majority of people are not in that position. But the pendulum may be swinging towards a greater appreciation for small, local wins and a balanced, purposeful life, rather than the relentless pursuit of “retirability”.