Tools for progress #30
Early-stage fundraising, Generalist disease, AI business models
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
Some Thoughts on Software (3 minute read)
It seems like things are moving incredibly fast in the software industry nowadays. Smaller engineering teams can now build products faster and cheaper than ever before. And this opportunity will likely expand, both in terms of talent working in the space and in the number of use cases that companies can tackle in this new wave. Although, AI might shrink existing market segments. It will also make the overall software opportunity (pie) significantly larger. Stop being a spectator and consider getting in the arena.
This piece explores how our past experiences - our "scars" - shape our identity and decision-making in business. Through the author's personal experience at WP Engine, we see how deeply ingrained habits from bootstrapping days can misguide current strategy when circumstances change. While our unique experiences make us who we are, they can also create blind spots that require external perspective to recognize and overcome. Audit your scars, know them, and get better at learning when they no longer serve you.
10 Charts That Capture How the World Is Changing (Part I)
Another banger from Rex. This deep-dive uses charts to examine five transformative trends reshaping our world: prediction markets monetizing knowledge, venture capital's distribution drought, the resurgence of experience-based spending, Gen Z's shifting views on wealth, and a new commercial space race. Through data visualization, we see how the convergence of technology, changing consumer preferences, and new market dynamics are creating novel business opportunities and redefining traditional industry boundaries.
Operational tactics
From Selling Access to Selling Outputs in SaaS (8 minute read)
A thought-provoking analysis of how AI is reshaping SaaS pricing models, moving away from traditional annual recurring revenue to output-based pricing. Companies are increasingly charging for work completed by AI agents rather than software access, though this shift brings new challenges in revenue forecasting and sales compensation. Everything is a little more unpredictable!
Should You Do 1<>1s in 2025? (2 minute read)
The ongoing debate about 1-on-1s in tech leadership circles stems from high-profile examples like Nvidia's CEO managing without them. This piece explores the nuanced reality of these meetings at different company stages. While giants like Nvidia can function without 1-on-1s, they remain valuable for startups and first-time leaders – though their effectiveness varies by role and relationship. Watch for one red flag: if you dread these meetings, it's likely time for a personnel change.
Part III: Business model invention in the AI era (6 minute read)
Vertical AI companies are taking on vast, high-cost, language-heavy tasks that dominate industries like healthcare and legal, representing a 10x TAM than the software market itself. The three models defining the AI era are copilots, agents, and AI-enabled services. Copilots are priced like traditional cloud software on a per-seat basis. A pricing model for agents is under construction but many are priced based on solutions’ output relative to human workers. Finally, AI-enabled services anchor to existing legacy service provider pricing, but, in many cases, automation enables companies to undercut incumbents and still retain higher margins.
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Angel investing
Early-stage Fundraising in 2024 is Actually Down
The current VC funding landscape shows a stark contrast between AI and traditional startups. While overall venture capital is up 17% thanks to massive AI deals (like x.AI's $6B raise), early-stage funding tells a different story – down 9% across pre-seed to Series A rounds. A potential silver lining emerges for 2025, with predictions of 10-20% growth in early-stage SaaS funding, driven by strong public market performance.
Three Future States of the Early-Stage VC Ecosystem (6 minute read)
This reflection from Precursor's Annual General Meeting explores how the early-stage venture capital market might evolve over the next 5-7 years. The analysis presents three potential futures: a return to traditional VC dynamics, a market split between smaller and larger funds based on exit size expectations, or domination by multi-stage funds. The shift of multi-stage funds into seed investing emerges as a critical factor reshaping the ecosystem's future, challenging the traditional role of seed-only firms.
What I’m Hearing Across the Family Office Ecosystem (2 minute read)
A thoughtful pulse check from an allocator on how institutional investors are positioning themselves in 2024. While passive S&P investing continues to dominate, there's a clear shift in private markets away from venture toward private credit and mid-market PE. The most telling insight is how portfolios are being reimagined – with bonds at 4.4% and alternative strategies increasingly valued for stability rather than just returns.
Managing your career
Finding a Good Manager (3 minute read)
A software engineer explores what makes a great engineering manager through years of firsthand experience across multiple companies. The article explains how managers who prioritize career goals, reduce bureaucratic overhead, and advocate effectively for their reports create an environment where engineers can thrive. Working with the right manager means less energy spent fighting the system and more focus on meaningful work and growth.
The Anti-Brand-Builder’s Guide to Building Your Brand (7 minute read)
Most career advice pushes us to craft a personal brand. The common reaction here is to craft this “ideal” version of yourself and figure out how to show it to the world. This piece argues that personal branding isn’t about showing the ideal, but revealing the authentic.. Explore what makes you unique and valuable, then share those insights with others. From internal workshops to social media posts, discover practical ways to amplify your voice without compromising your authenticity or reducing yourself to a catchphrase.
Generalist Disease (5 minute read)
Elite professionals often fall prey to the generalist disease, an incorrect model for how to build a successful career. The hallmark symptom is optimizing for optionality, which means chasing breadth and prestige. But they both rapidly turn counterproductive, and people with generalist disease don’t seem to notice. Instead of running after breath and prestige, pursue aptitude and enjoyment. It’s a hard pill to swallow and initially unsettling to take a job you’re not sure is right, or to put your head down and refine the craft rather than continuing to explore options. But it will certainly make you happier to work hard at something you love and are good at.