Tremendous

An angel investor's take on life and business

  • The Digital Ocean Seed Deck: What an $18B Company Looks Like at the Earliest Stages

    Digital Ocean is worth $18 billion. This morning, I dug into their original seed round deck from 2013. Here’s what you can learn to help you in your fundraise…

    Clearly Framing the Problem

    Digital Ocean’s value proposition is simple: we let you deploy to the cloud quicker and easier.

    See how clear this value prop is? That’s something a lot of startups get wrong.

    I’m 17 slides deep into their deck and I still don’t understand what they do or why. At that point, your odds of getting a check are minimal.

    I also loved all the testimonials from users. There’s nothing like hearing from the people that actually use the product.

    An Insane Revenue Ramp

    In this deck, it’s the Traction slide that really stands out.

    Digital Ocean was already at a $1 million annual run rate, up from approximately $200k just 4 months prior. That’s 50% MoM growth.

    You could meet with 50 startups and not find one with growth this strong. This traction is what will make investors finally pull out the checkbook.

    You could have the prettiest slides or the sickest launch video. But in the end money talks.

    Where’s the Team Slide?

    There’s one crucial thing missing from this deck: a team slide.

    Two of the founders, Ben and Moisey Uretsky, previously started a company called ServerStack. They got it to $6 million ARR.

    But that information is nowhere in the deck. What a miss!

    That would have gone a long way to convincing VCs these guys are worth betting on. But the clarity of their vision and the strength of their traction was still enough to make the sale. 

    Would I Have Invested?

    Digital Ocean in 2013 had everything I look for in a startup.

    They’re addressing a major problem. Their value prop is clear. The founders have a history of achievement. And their growth is off the charts.

    Had I been lucky enough to see this deal, I would have been knocking people over to invest. 

    Wrap-Up

    Digital Ocean’s seed deck nails the key points. They clearly explain the value prop and show us strong traction.

    The only way they could have made it better: sell the awesome accomplishments of the founders.

    Digital Ocean wound up closing $3.2 million in their seed round, led by IA Ventures. This investment helped turn IA into a top firm.

    If you’re raising money right now, learn from the Digital Ocean founders. Be crystal clear about the problem you’re solving. Show us strong evidence that it’s working.

    If you can do that, you just might be the next Digital Ocean.

    More on tech:

    Why Short Decks Raise Millions

    You’ve Got Your First Customer. Now, How Do You Raise Money?

    How to Write Cold Emails to Investors That Actually Get Replies

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • Request for Startups: Seawalls, Supertrees, and Power Saving Tech

    One of my favorite things as an investor is dreaming up startups — then hunting for founders building them. Here are 3 startups I’m looking for right now… 

    Making Seawalls Cheaper and Faster to Deploy

    The Philippines and Japan recently suffered another tsunami. 

    Seawalls can help reduce the damage from tsunamis and hurricanes. But they’re expensive and time consuming to build. 

    Miami Beach is spending $80 million just to refurbish and enlarge a 5-mile section of seawall. The project could take years. 

    So I’m excited to find startups that can produce sea walls faster and cheaper. This could save countless lives.

    Avoiding catastrophic floods is one important goal for cities. But there’s another critical piece of infrastructure that makes them livable: trees. 

    Supertrees

    Visit any town that doesn’t have trees. It stinks, doesn’t it?

    Scorching summers. No shade. No wildlife.

    Towns like this are often poor. Visit any wealthy town, and it has giant trees everywhere. 

    What if everyone could have big trees, and soon? 

    Imagine a bioengineered tree species that grows 10-20 feet a year. You could turn a treeless town into a forest in just a couple of years. 

    Where I live in northern New Jersey, one of the fastest-growing trees suited to our environment is the Autumn Blaze Red Maple. It grows about 3-5 feet a year. 

    That’s pretty fast! But what if we use CRISPR gene editing to make it grow even faster?

    Giant trees help keep us cool. But we’re still going to need the AC sometimes. 

    That takes power, which is in short supply. So how can we use less while maintaining our quality of life? 

    Power Saving Technology

    The biggest bottleneck in the AI buildout is power. And as the world gets hotter, we use more power to run our AC units. 

    So I’m looking for technologies that can help conserve energy. 

    What if our AC unit pumped out more cool air with less power? Or what if we did a better job in capturing industrial waste heat and using it for energy?

    I’m excited about all kinds of power-saving tech. It’s easier to deploy it than to build a new power plant!

    Wrap-Up

    Right now, everyone is investing in B2B AI agents. And I’m not against it — I’ve got a few of these investments myself!

    But there are some big, unmet needs investors are overlooking. Protecting our homes, making our towns greener, and saving energy are 3 critical areas where we need to build. 

    If you’re a founder building in any of these areas, shoot me a message!

    More on tech: 

    You’ve Got Your First Customer. Now, How Do You Raise Money?

    My Top 3 YC P26 Startups: Space Factories, Rentable Humans, and AI Doctors

    How to Treat Founders with Respect — Four Simple Rules Every Investor Should Follow

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • My Top 3 YC P26 Startups: Space Factories, Rentable Humans, and AI Doctors

    This morning, I looked through all 194 companies in YC’s P26 batch. From space based manufacturing to AI doctors, here are the three most exciting startups I found… 

    Dispatch

    Some products, like new pharmaceuticals, can only be made in space due to the lack of gravity. But to pull it off, you need a space-based factory.

    Dispatch is making those factories.

    Founder Payton Case just built a re-entry heat shield at 100x the cost of competitors. He put it behind a rocket engine to try to melt it. But this low-cost heat shield held up! 

    Whenever I see someone build a product for 100x less, I pay close attention. Lower costs greatly expand the market. 

    RentAHuman

    Your AI agent can create a marketing campaign. But it can’t stand in Times Square holding a giant sign.

    That’s where RentAHuman comes in. RentAHuman lets AI hire humans for tasks only we can do.

    This gives AI agents a lot more power. Instead of just brains, now they have hands. 

    Giving people new ways to make a living is a powerful business model. It’s worked incredibly well for Uber and Airbnb.

    RentAHuman could be next.

    Clara

    We’ve been talking about universal health care in this country for generations. But it never happens.

    What if we gave everyone an AI doctor? 

    Clara is AI that can read and act on your medical data. It can make diagnoses and order prescriptions and tests.

    Clara queues up those recommendations for a human provider. Then, the human approves or disapproves them.

    Doctors are severely overworked. If AI could do a first pass and make a recommendation, it would save a ton of time and lower costs.

    Founder George Favvas is the perfect person to build this. He founded Circle Health, a primary care practice that he took to over $100 million in annual revenue.

    Wrap-Up

    Put these three companies together, and you can glimpse an incredible future.

    We’ll make new pharmaceuticals in space. We’ll get a job from an AI. We’ll talk to a doctor any time at virtually no cost.

    I love to complain about YC’s valuations. But I’m glad that someone is out there backing extremely ambitious ideas.

    If you want to help these startups, try their product! Customers are the most important part of any company. 

    What are your favorite startups in P26?

    More on tech: 

    How to Treat Founders with Respect — Four Simple Rules Every Investor Should Follow

    Meet My Latest Investment: Perfectly

    Inside Japan’s Startup Boom: Elite Engineers, Exploding Revenue, and Almost No Funding

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • How to Treat Founders with Respect — Four Simple Rules Every Investor Should Follow

    VC horror stories are flooding my timeline on X. Founders getting ghosted, dismissed, and disrespected.

    How do we investors behave better? Here are four simple rules we should all follow…

    Rule #1: Show Up On Time

    Founder time is the scarcest resource in the universe. Don’t waste it.

    Be sure you’re on time to meet a founder. I like to click into the Zoom a couple minutes early just in case.

    Want to make sure you show up on time? Fine yourself $10 for every minute you’re late.

    You can give the fines to charity.

    Rule #2: Get Off Your E-Mail

    You showed up to the meeting on time. Now, give the founder your full attention.

    I don’t care how many messages are in your inbox. Stay off your email.

    Not one quick little reply. Nothing.

    If you’re dealing with a crisis, reschedule the meeting. Otherwise, leave the email for later.

    And enjoy a little break from the torrent of messages!

    Rule #3: Put Down Your Phone

    You stayed out of your email. Good job! But there’s another distraction machine to avoid: your phone.

    No quick text. No checking X.

    Silence the phone and keep it away from you. I like to keep mine in a different room so there’s no temptation.

    For note taking, I use an old school composition book. This way, the founder knows I’m listening to them, not playing Angry Birds.

    Rule #4: Don’t Say “It’ll Never Work”

    I’ve met with thousands of founders. How many times have I said “that will never work”? Zero. 

    How can I possibly know that? No one knows the future.

    Sometimes, the strangest ideas turn into the biggest companies.

    If Airbnb pitched me in 2009, I’d be thinking, “Staying in a stranger’s spare room sounds like a good way to get murdered.” But if I’m smart, I’d have the humility to realize their idea might work. 

    Wrap-Up

    These four rules establish a bare minimum for investor behavior. 

    Following them is not difficult. Anyone can do it.

    Never forget that these 30 minutes could be the most important ones of this founder’s professional life.

    We don’t owe them a check. But we do owe it to them to pay attention and be respectful.

    What other rules would you add? Leave a comment and let us know! 

    More on tech: 

    Start Your Deck the Right Way: By Selling Yourself

    How to Write Cold Emails to Investors That Actually Get Replies

    You’ve Got Your First Customer. Now, How Do You Raise Money?

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • I Dug Into 1,000+ OpenAI & Anthropic Jobs – Here’s What They’re Actually Building

    OpenAI may be building a humanoid robot. Anthropic is still selling to the Department of War. These are just a few things I learned from digging into 1,000+ open jobs at the two labs. 

    If you want to learn what a company is really up to, skip the press releases. Look at their job listings. 

    So today, I used Grok to examine every open job at Anthropic and OpenAI. Turns out, they’re hiring a lot more than software engineers…

    OpenAI Is Building Robots

    One of the most unusual postings I found was for a 3D Printing Lab Technician. This technician will be printing parts for robots.

    This lets OpenAI rapidly prototype robot parts. OpenAI has many other robotics jobs open, from Actuator Design Engineer to Robotics Software Engineer. 

    OpenAI may be planning to compete with Tesla Optimus and Figure to build humanoids. This could give them a significant advantage on Anthropic.

    OpenAI may be deeper into robotics, but both labs are building in another critical area: defense. 

    Anthropic Is Still Selling to the Department of War

    Anthropic had a dust-up with the Department of War recently. But like OpenAI, they’re still selling to defense and intelligence agencies.

    Both OpenAI and Anthropic have open jobs for sales to national security agencies. Both require a Top Secret clearance.

    If we use AI to spot foreign threats and defend our country, I’m all for it! But I don’t want to see superintelligence used to surveil Americans. 

    Surveillance isn’t the only risk AI poses. What if someone uses ChatGPT or Claude to make a bioweapon? 

    Both Labs Are Worried About AI Bioweapons

    Both Anthropic and OpenAI have job listings for biological safety researchers. The goal is to avoid a bad actor using AI to design a bioweapon. 

    Personally, I don’t worry about people making superbugs with AI. There are already enough horrible diseases out there, like smallpox. Why would anyone need to create a new one?

    But given the amount of money these companies have, there’s no reason not to spend some to make sure their models aren’t misused. 

    Wrap-Up

    These job ads paint a picture of incredibly powerful AI in the near future. It will power humanoid robots, target our enemies, and make scientific breakthroughs. 

    If OpenAI and Anthropic succeed on half these goals, the world looks very different. 

    If robots take over dangerous tasks and AI designs drugs that save lives, that’s a much better world. If the government uses AI to crack down on dissidents, or terrorists use it to make a bioweapon, we’re in serious trouble. 

    Any powerful technology presents big risks and opportunities. But one thing’s for sure: we’re not going back.

    Have a great weekend, everyone! 

    More on tech: 

    How Jon McNeill Scaled Tesla from $2B to $30B — 3 Lessons I’m Stealing for My Own Business

    “Don’t Be Afraid to Fail” — Three Lessons from Elon That Will Make You a Better Founder, Leader, and Investor

    Grok Skills: Generate Pitch Decks, Spreadsheets and More with AI

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • Start Your Deck the Right Way: By Selling Yourself

    I see it in deck after deck: the founder waits until slide 27 to tell me about himself. Big mistake. Here’s how to do it right…

    Right after your title slide, put a slide about yourself. Tell us your biggest accomplishments.

    Before we care about your idea, we have to believe in you! 

    Don’t Bury the Lead!

    I’ve seen some amazing founders completely bury their accomplishments. 

    One deck I looked at recently had the founder on the very last slide. This guy has some incredible accomplishments, including doing serious engineering work at a top deep tech startup. 

    But looking at the deck, you’d never know it! 

    What are the odds the investor actually makes it to Slide 41 with that information? Not high.

    That’s why you put it front and center. 

    How to Sell Yourself

    Don’t just tell us where you’ve worked. Anyone can do that. 

    Tell us the important things that you accomplished.

    Maybe you worked at Anduril. Don’t just put an Anduril logo on your slide. 

    Instead, tell us your biggest accomplishments there. Maybe you led a project to develop sensors for their unmanned fighter. 

    Now that’s exciting!  

    Not many people have done something that big. That’s okay! 

    Just sell the best accomplishments you have.

    Maybe you started a garage cleaning business in high school that paid your way through college. That’s amazing!

    Make sure investors know about it. 

    Why You Must Lead With Yourself, Not Your Idea

    You don’t want to lead with your startup idea, the market, or the product.

    Without an exceptional founder, no idea is likely to work. First, show us you’re that exceptional person.

    What’s more, many startups pivot to a totally different business. One of my most successful investments, Micro1, was a completely different company when I invested.

    Wrap-Up

    Raising money is hard enough. Don’t make it even harder by underselling yourself!

    You are the most critical asset your company has. Whether you raise money or not will depend on how investors assess you as a person.

    If you’re raising money now, open up your deck and start making some edits. Put yourself front and center.

    You’ll see the difference in how investors respond!

    More on tech: 

    How Sid From GitLab Nailed His Pre-Seed Pitch In Just 60 Seconds

    How to Write Cold Emails to Investors That Actually Get Replies

    You’ve Got Your First Customer. Now, How Do You Raise Money?

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • How Sid From GitLab Nailed His Pre-Seed Pitch In Just 60 Seconds

    GitLab is a $5 billion company with over 50 million users. But in 2015, it was just a tiny startup. Today, I watched their original YC application video. It’s one of the best pre-seed pitches I’ve ever seen. 

    Founder Sid Sijbrandij does an incredible job of selling himself. In less than a minute, he gives us enough to get any investor excited.

    Let’s break down his pitch and see how you can learn from Sid…

    Selling Himself as a Founder

    Sid starts by telling us about his prior startup, which sold recreational submarines. He built it into the largest producer of recreational submarines in the world. 

    This tells us that Sid knows how to build a company. If we invest in him, we have a better chance of getting a return than someone who hasn’t started a business before. 

    When you pitch investors, sell them on your biggest accomplishments. Maybe you created a business in high school. Maybe you did some original scientific research. 

    Give us evidence that you’re exceptional!

    Getting the Pitch Down to One Simple Sentence

    Next, Sid explains what GitLab does: “GitLab is open source software to collaborate on code.”

    See how clear that sentence is?

    When an investor doesn’t understand what you do, he tunes out. And you don’t get a check.

    Get your vision down to one simple sentence, like Sid did. The first step in getting a check is making sure investors understand what you do. 

    Showing Real Traction

    Sid gives us strong evidence that GitLab is catching on. It’s already used by over 100,000 organizations at this point.

    Very few pre-seed startups have that kind of traction. But whatever traction you have, make sure investors know about it!

    Let’s say you have three paid customers. I know, that’s not all the money in the world. 

    But it’s a nice start! Make sure you mention it.

    Controlling Your Own Destiny

    Sid is working hard to get funding from YC. But he also makes clear he doesn’t really need it.

    GitLab is already cashflow positive. That’s very unusual for an early-stage company.

    This shows that Sid is great at getting paying customers. It also shows he’s done an excellent job controlling expenses.

    Getting to cashflow positive this early on is quite difficult. But if you and a co-founder can take minimal or no salary and build everything yourself, you have a chance to get to default alive early. 

    This sets you apart from other startups. It also frees you from depending on investors.

    Wrap-Up

    In less than a minute, Sid gives us powerful evidence that he’s an exceptional entrepreneur.

    He’s built a successful business in the past. He’s taken GitLab live and signed up lots of customers. And he’s already profitable. 

    Most any pre-seed investor would make this bet. 

    Very few pre-seed companies are as strong as GitLab was in 2015. But you can learn from Sid to make your pitch better.

    Lead with what makes you exceptional. Then, clearly explain what you do and how it’s going. Control expenses so you’re not at the mercy of VCs.

    If you can do that, you just might create the next GitLab. 

    More on tech: 

    You’ve Got Your First Customer. Now, How Do You Raise Money?

    Why Short Decks Raise Millions

    “Don’t Be Afraid to Fail” — Three Lessons from Elon That Will Make You a Better Founder, Leader, and Investor

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • You’ve Got Your First Customer. Now, How Do You Raise Money? 

    You just signed your first customer! Is it time to raise a pre-seed round? 

    A founder on Reddit is in this exact situation. He just made his first revenue — $3,000 from one client. That’s a huge milestone!

    But it’s probably not enough to raise a full pre-seed. Here’s what he should do instead…

    The Accelerator Path

    For a founder just beginning to pull in revenue, accelerators are the best next step.

    That trickle of revenue will make it much easier to get into a good program.

    An accelerator could put this founder in a perfect position. He’ll get the $100k to $500k he needs. That gives him several months to keep growing.

    Once he hits a couple hundred thousand in ARR, he’ll be in a great position for a round in the millions. 

    Some Founders Skip the Line

    Some founders raise millions of dollars with just a couple of text messages. The caveat: they usually have an incredible track record.

    If a founder sold their last company for $1 billion, everyone will be rushing to fund them before they even make a deck. 

    Most founders don’t have that gold-plated track record. They need to prove themselves before they can raise money.

    Understanding How Fundable You Really Are 

    Every day, I meet founders who think they’re ready to raise a pre-seed round of $500k to $2 million. I often have to tell them that isn’t realistic.

    Instead, I suggest accelerators.

    I can tell a lot of them get frustrated when I mention this! They think they’re past that point.

    But with neither strong traction nor a strong track record, it’s hard to raise a full funding round. Most founders are better off raising a smaller amount now and continuing to build.

    You can still raise that fat round later. But you’re going to need a little more traction to do it.

    Wrap-Up

    If you’re a founder who just signed their first customer, my hat is off to you! But this is just the beginning.

    Even with a trickle of revenue, raising money is a hard slog for most founders. Take it step by step. 

    Build the product. Get a customer or two. Get into a strong accelerator program. 

    Bust your hump in that program and grow as fast as you can.

    When you graduate, you’ll be ready to raise millions.

    More on tech:

    How to Write Cold Emails to Investors That Actually Get Replies

    Why Short Decks Raise Millions

    “Don’t Be Afraid to Fail” — Three Lessons from Elon That Will Make You a Better Founder, Leader, and Investor

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • How to Write Cold Emails to Investors That Actually Get Replies

    You and 100 other founders are cold messaging the same investor. Here’s how to stand out….

    You want your message to be short and compelling. The longer it is, the less likely the investor will read it.

    First, let’s cover three critical components of a great cold message. Finally, we’ll put them all together and draft a cold message for a startup.

    Part 1: Why You’re Exceptional

    Before you even tell us your idea, tell us why you’re an exceptional founder.

    Many startups pivot away from their original idea. The one thing least likely to change: the founder.

    So, sell us on you!

    Show us you’re exceptional. Give us your biggest achievements.

    Say that in high school, you created a car detailing business that made it to $1 million a year in revenue. That’s incredible! 

    Your new company might not have anything to do with car detailing. But you should definitely share that information with us! 

    Part 2: What You Do, In One Simple Sentence

    Once you’ve told us why you’re exceptional, tell us what you’re working on now.

    Get the idea for your startup down to one simple sentence. Be clear and specific. No jargon. 

    Say you’re Travis Kalanick in 2010 and you’re starting Uber. Here’s what that one simple sentence could look like:

    “Uber gets you a private driver from anywhere to anywhere.”

    Right away, it’s clear what Uber does. Now, imagine if Travis had come out with this sentence:

    “Uber is a platform for democratizing transportation through a decentralized network of individual service providers.”

    The sentence is still true. But it obscures what Uber does.

    When investors don’t understand, they tune out. 

    Part 3: Traction

    You told us why you’re exceptional. You told us what you’re working on now.

    Finally, tell us how it’s going.

    Give an annualized revenue number if you have revenue. If you don’t have revenue, give the number of monthly active users. If you don’t have that, give us the number of people on the wait list.

    You want to provide evidence that your company is growing. 

    Naturally, higher growth is better! But don’t give in to the temptation to make up numbers. 

    Putting It Together: Drafting a Great Cold Message

    Let’s put these three elements together…

    Say Jim has a company called Superstartup. It provides AI coaching to founders.

    Jim had a very successful car detailing business in high school, which shows his ability as an entrepreneur. His startup also has some good early traction. 

    Jim could write a cold message like this:

    “Hi Mr. Moneybags,

    I’m Jim. In high school, I grew a car detailing business to $1 million a year in revenue. 

    Now I’m building Superstartup — every founder’s AI coach. 

    We’ve hit $200,000 ARR in 2 months since launch.

    Deck attached.

    Worth hearing more?”

    The message is just a couple of lines. It’s factual and shows what a great entrepreneur Jim is.

    Send that message to 100 seed investors, and you’ve got yourself a hot fundraise.

    Wrap-Up

    Most of your competitors for funding will send long, meandering messages. 

    Those messages won’t include the information investors want. And they won’t get a meeting.

    You need to be different!

    Show us why you’re special. Be clear on what your company does. Give us evidence that it’s working.

    If you can hit those points concisely, you’re going to book a calendar full of investor meetings. You only need one term sheet to change everything. 

    Try writing up a draft cold message. And if you want my feedback on it, leave it in the comments!

    More on tech: 

    Why Short Decks Raise Millions

    So You Didn’t Hit $100M ARR in 6 Months — Fundraising Advice for The Rest of Us

    Yes, You Can Raise VC Money in ‘Unsexy’ Areas — Here’s What Investors Want

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!

  • Japan’s Top 5 Startups Right Now: AI, Biotech, and Deep Tech 

    Five companies. $9.47 billion. These are the most valuable startups in Japan now. 

    I’m scouring Japan for the next billion-dollar startup. So I wondered: What are the most successful Japanese startups so far, and what can I learn from them? 

    Japan’s Biggest Startups

    I focused on the top 5 private tech startups in Japan today. Collectively, they’re valued at over $9 billion. They range from AI labs to biomanufactured proteins:

    What struck me right away is that not all of the top five are in Tokyo! Yamagata is home to Spiber, a biotech valued at $1.2 billion.

    These companies are doing some amazing things. Sakana AI has released an AI scientist that writes academic papers. Spiber is creating proteins to replace cashmere, wool, and fur. 

    I notice a greater deep tech and research bent compared to America. More robotics and biotech, less SaaS. 

    This tells me to look for more than just software companies.

    Beyond the Top 5

    These five companies aren’t the only highly successful startups in Japan. 

    Japan has around 10 unicorns currently, give or take a couple depending on which source you rely on. They span a variety of fields, from video games to crypto platforms. 

    Japan’s startups may not be the biggest in the world. But given the lack of capital in Japan, the entry prices for most were probably quite low.

    This means a massive multiple on cash for early investors.

    Japan’s Biggest Exit

    It’s one thing to notch a high valuation in a funding round. Getting liquid is much harder.

    The biggest startup exit in the last decade in Japan is Mercari, which lets you buy and sell used goods online. It went public in 2018 and is valued at about $4.4 billion in the public markets.

    Almost every Japanese person I’ve met was quite frugal. And given the difficult economic situation, people have all the more reason to buy used and sell unnecessary possessions.

    Startups that help people save money or make extra income are good bets in Japan. I’m keeping an eye out for more like this…

    Wrap-Up

    If I can find investments where others aren’t looking, I can make a lot of money.

    When I was in Tokyo recently, I met one talented builder after another. But there isn’t enough risk capital in Japan to fund their companies.

    Companies like Sakana AI and Mercari prove Japan can produce serious returns. Bring in more American investors, and there’s no telling what Japan can do. 

    If you’re an awesome founder in Japan struggling to raise money locally, shoot me a message. I’m excited to learn about what you’re building!

    Have a great weekend, everyone!

    More on tech: 

    Inside Japan’s Startup Boom: Elite Engineers, Exploding Revenue, and Almost No Funding

    The US-Japan Hybrid Startup: Move Founders to America, Keep Talent in Japan

    So You Didn’t Hit $100M ARR in 6 Months — Fundraising Advice for The Rest of Us

    Save Money on Stuff I Use:

    Fundrise

    This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

    More on Fundrise in this post.

    If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

    Wispr Flow

    I used this app every single day to dictate to my computer, I’m even dictating this text using Wispr Flow! It’s way better than Apple’s native dictation.

    My productivity is up about 25% since I started dictating rather than typing. I’m also less tired and stressed.

    Get a free month of Wispr Flow Pro here!