Tools for progress #31
Systematically building $10B+ ideas, Leaky bucket network effects, why chasing tends seldom leads to winners
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
Can You Systematically Build $10B+ Ideas? (7 minute read)
Big wins in the next decade might come from startups going after hard, “physical world” challenges. The best VCs are learning to incubate these companies directly, not just throw money at them. Surprisingly, you don’t have to be an industry veteran—founders often get great ideas by talking to experts and digging in until they hit gold. If we make these research tricks more available, we could see way more ambitious founders breaking into these tough sectors.
The Leaky Bucket Theory of Network Effects (4 minute read)
Just having a network effect doesn’t guarantee you’ll win. Big players like Amazon lock in loads of unique suppliers, making them tough to beat. The real question is how hard—and expensive—it is to line up enough suppliers to keep customers happy. That depends on how big your market is, how varied your products are, and how easy it is for suppliers to jump ship to another platform. When you’ve got huge reach, tons of different items, and it’s hard for suppliers to leave, your marketplace is rock solid. But if everything’s too simple and local, copycats can move in fast.
Intel’s Death and Potential Revival (22 minute read)
Although long, a Stratechery piece from Ben is always a worthwhile read. In this one, he explores Intel's journey from dominance to decline, tracing how their commitment to x86 architecture and manufacturing prowess initially fueled their success but ultimately contributed to their downfall. Against the backdrop of emerging AI demands and U.S. chip independence concerns, the article suggests Intel's future lies not in product development, but in becoming a government-backed foundry serving America's AI ambitions.
Operational tactics
Selling Is Not A Backup Plan (2 minute read)
Don’t think of selling your company as a sure-fire backup plan when things go south. Finding a buyer who wants your team, product, or customers at the right time and price isn’t guaranteed. Most struggling companies end up closing down. If you want a shot at selling later, start building those CEO connections at strategics today. Otherwise, your true backup is simply winding down.
The Best Growth Advice of 2024 (5 minute read)
Here are 24 tactics you can apply right now from Canva, Calendly, Clay and more, from finding PMF to going account-based to embracing automation and PLG.
The Real Reason Investors Dislike Usage-based Pricing (2 minute read)
A look into why investors are hesitant about usage-based pricing models, especially in AI products. While these business models aren't inherently flawed, they require more effort to understand. Smart companies can navigate this by finding investors who understand their model, while proving customer stickiness and providing clear metrics about their growth patterns.
Refer and we’ll send you our favourite books as a “thank you” for spreading the word.
Angel investing
Chasing Heat vs. Being Contrarian in Venture Capital (6 minute read)
Venture capital success isn't about following trends – it's about spotting tomorrow's winners today. Through historical data and examples, this piece shows how the biggest tech successes often emerged when their sectors weren't hot. Looking ahead, it suggests currently overlooked areas like healthcare and consumer tech could be the next big winners, especially with AI's transformative potential.
Venture Buyouts (7 minute read)
A new investment model is emerging to rescue venture-backed software companies trapped by unrealistic growth expectations. Jeremy Giffon's fund recapitalizes these companies to run them profitably, rather than chasing hypergrowth. The strategy works because most venture-backed software companies could be profitable with leaner operations, but are forced into unsustainable growth by traditional VC fund dynamics. It’s a PE styled model running at the early venture stages, curious if we’ll see more of this.
What’s Hot in Enterprise IT/VC (5 minute read)
A firsthand look at the current venture capital landscape reveals a fascinating tension around AI startup valuations. While some see echoes of the zero-interest-rate era in today's high valuations, others point to unprecedented growth rates. Companies like Anysphere are showing eye-popping revenue trajectories, growing from $0 to $48M in record time, and Morgan Stanley's data suggests AI investments are delivering real ROI, particularly for larger enterprises.
Managing your career
Molly's TED talk: Jumping Off Career Cliffs (11 minute read)
There’s pressure to build a great career by climbing the safe, predictable steps of titles and promotions. But these “stairs” are an illusion—great careers aren’t forged by cautious climbers. Instead, you must take risks, leaping into the unknown despite your fears. Embrace looking like a “professional idiot” by asking naïve questions among brilliant minds, and you’ll learn faster than anyone else. Taking these bold jumps reveals your true potential because you’ll never know what you could become unless you learn how to jump off a cliff.
You're Testing in Production With Your Career (4 minute read)
Career growth is like fixing a plane in midair—there’s no perfect training ground for leadership or strategic thinking. Each day is both rehearsal and performance. Still, you can learn from every moment. Identify your blind spots, shine a spotlight on them, and observe masters at work—note not just what they do, but what they don’t do as well. Create a feedback loop by reflecting briefly after important decisions or meetings. Rinse and repeat to keep improving.
How To Get Lucky And Land Top 1% Career Opportunities (5 minute read)
To attract more “luck,” expand your “luck surface area” by both doing (hustling and creating) and telling (making your efforts known). Balancing action with visibility brings more opportunities your way. You can hope luck finds you, hustle into it, put yourself where it thrives, or become so good that it seeks you out. But none of this matters if you don’t take action. Reading about mental models and the success of others will only get you so far.