Category Archives: Business

Is Fathom the Future of Blockchain?

I was blown away when I read how fast Solana can process transactions. But there’s a new kid on the block: Fathom.

Fathom is even faster than Solana on one important metric:

Solana averages 50,000 transactions per second, versus 14 per second on Ethereum. Fantom is not as fast as Solana, but it’s still way ahead of Ethereum; in a test run back in 2018, its blockchain processed 25,000 transactions per second. But Fantom has a pretty solid claim to being the fastest blockchain if you look at time to finality. This is arguably the most important statistic, as that’s the moment when a transaction has been fully validated on the chain. Fantom’s time to finality is about a second, versus 13 seconds on Solana and more than a minute on Ethereum.

To me, the metrics that matter are:

1) How long until my transaction is done?
2) How much does it cost?

Both Solana and Fathom are very cheap to run, and Fathom seems a little faster in finalizing transactions.

Both are light years ahead of Ethereum. I would expect to see Ethereum slowly fade unless there’s a major update to leapfrog the newer protocols.

Fathom is worth about $7 billion today. Could it one day be worth 100 times that, my bar for highly speculative investments?

I think it’s possible. Visa and Mastercard together are worth $830 billion. Add in American Express, and you’re at almost $1 trillion.

And that doesn’t cover banks that charge tons of wire fees. A protocol that could replace these high fees with near-zero ones could be worth $1 trillion or more.

The question is, which blockchain will dominate? I don’t know.

I would favor backing a lot of promising tokens early in the hope that one of them returns 100 or 1000 times one’s initial investment.

This is the same approach I take investing in startups. It can work well when there are numerous small, promising competitors and the likelihood of a winner-take-all outcome.

But buying all those tokens is a lot of work! An ideal investment vehicle would be an ETF that owns all the major coins (Bitcoin, Ethereum, Solana, etc.) and another that owns high speed smaller coins (Fathom, Near, etc.).

The SEC does not allow ETFs to directly hold cryptocurrency. Like so much of what the SEC does, this policy is counterproductive.

It should should approve crypto ETFs so that investors can spread their bets. If the government’s goal is protecting people’s savings, anything that aids diversification is a plus.

I’m excited to see what the future of finance will look like!

We may soon be living in a world where you can send anyone money in seconds for (almost) free. A world in which politicians can’t devalue your savings on a whim.

That’s a future worth building for!

More on tech:

A Day in the Life of an Angel Investor

How Solana Could Wipe Out Visa and MasterCard

This Week in the Venture Bubble

Photo: “Computer Circuit Board” by Defence Images is licensed under CC BY-NC 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

A Day in the Life of an Angel Investor

Not that kind of angel!

You’ve heard of angel investors and their big brothers, venture capitalists. But what does an angel investor actually do in a day?

I thought I’d break down my day today so you can see how the sausage is made:

1) Read deal memos in inbox. It could be as few as 2-4, or it could be as many as 12 or more.

Since I invest in seed stage startups, I generally look for some traction and a valuation of about $10-15 million. I like to see companies with 6 months of revenue, growing 20% or more month over month.

The traction and valuation criteria eliminate about 99% of startups right off the bat.

2) Send over a developer candidate to one of my companies. Looks like they like him!

Adding value through intros to possible employees and investors is a big part of an angel’s job. I try my darnedest to help the companies I’ve invested in.

I found this candidate via a Slack community for developers. Finding good developers who don’t already have a job is very difficult nowadays.

But I still try! One great engineer can make a huge difference to an early stage startup.

3) Answer LinkedIn messages. Usually the deal flow here isn’t great, but sometimes it can be excellent!

Don’t discount cold messages. Jason Calacanis found LeadIQ because the founder cold e-mailed him, and now the company is worth over $200 million!

4) Read about the industry as a whole. Every day, I try to learn more about technology investing as a whole, not just the companies that cross my desk.

Today I read about how founders can get investors to work for them. I also read about finding the sweet spot between valuation and traction, which will inform me as I read tomorrow’s deal memos!

5) Attend a Q&A w/ two expert angel investors tonight!


Being an angel investor is about continuous learning, first and foremost.

You learn about new companies every day and select that 1 in 100 (or more) you want to invest in. And you learn about technology and business in general, which makes you a better investor!

This constant opportunity to learn is one of the things I like best about angel investing. You see companies doing everything from 3D printing human tissue to revolutionizing e-commerce search.

There’s seldom a dull day!

What have you always wondered about angel investing? Let me know in the comments at the bottom!

Have a great day everyone!

More on tech:

This Week in the Venture Bubble

How to Ace a 3 Minute Pitch

The High Growth Handbook: Scaling Startups from 10 to 10,000 People

Photo: “Earth Angel” by drburtoni is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

Citadel Can’t Beat the S&P 500, Despite High Fees

Citadel LLC trailed the S&P 500 in 2021, returning 26.3% to the market’s 29%.

Citadel charges as much as 5% or more of the fund’s assets every year, in addition to 20% of all gains. These fees are among the highest of any investment fund.

Why should investors pay such massive fees when the Vanguard S&P 500 Index Fund Admiral fund (which I own) charges a mere 0.04% of assets with no performance fee?

The only possible justification would be returns that are consistently far higher than the market’s. While Citadel’s Wellington fund has outperformed the market in some years, such as 2020, its performance is inconsistent.

Few hedge funds have consistently beat the market. Jim Simon’s Medallion fund has returned 39% a year net of fees annually since 1988, but is closed to new investors.

Perhaps this underperformance is why Citadel is trying to make it harder for investors to withdraw their money.

Unless a fund can consistently beat the market by a wide margin, high fees will make it a losing investment. Hedge funds sound mysterious and awesome, but you may do better with boring old Vanguard!

More on markets:

AMC Fails to Deliver Soar Past 400,000

How Solana Could Wipe Out Visa and MasterCard

Citadel Holding Nearly $500 Million in AMC Options

Photo: Citadel LLC CEO Kenneth Griffin

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

This Week in the Venture Bubble

Venture capital funding is growing at an incredible rate. The money pouring into early stage startups, my playground, has increased by billions of dollars per quarter just since 2020.

I see the perverse results of this cash flood every day. Here are a few, from just this week alone:

1) A company raising a seed round at a $125 million cap with no product in market.

2) An uncapped note. The ultimate schmuck investment vehicle…you don’t even know what you paid for your shares!

3) A restaurant raising venture capital. 

Restaurants can’t scale like software businesses and are far less profitable. And food is not a winner take all market like many software products.

The standard VC playbook is losing money at first to dominate a market. Then, you make big profits later with your favorable unit economics. 

That model doesn’t apply here. 

3) A company raising a seed round at a $150 million valuation.

Some investors are now willing to invest in any business at any price. This may lead to more of the fourth thing I saw this week:

4) A company that had raised over $10 million in funding from blue chip VC’s recapitalized, completely wiping out prior investors.

Despite raising a boatload of funding, the company had never found product market fit and had very poor gross margins of about 25%. (A solid gross margin for a software business is more like 80%).

If we don’t want to lose our money like those unfortunate investors, we need some discipline. Here are my standards:

A) No $100 million seed rounds. Fred Wilson of Union Square Ventures proved this model cannot work.

B) No startups without a product in market unless it’s a very high profile founder. We’re taking sold her last company for $1 billion high profile.

C) No uncapped notes.

D) No low margin, old economy businesses masquerading as tech startups.

Who’s with me? 

What are you seeing in the startup world? Let me know in the comments below.

More on tech: 

How to Ace a 3 Minute Pitch

What I Look For in Startups

Why I just Invested in EyeRate, the Best Online Review Tool

Photo: “Bubble” by zacktionman is licensed under CC BY-NC 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC Fails to Deliver Are a Massive Outlier

Fails to deliver in shares of AMC Entertainment Holdings, Inc. passed 400,000 in data just released by the SEC yesterday. But what does that actually mean?

To put the number in perspective, I pulled the fails to deliver for the 10 largest US companies by market capitalization. As you can see, at the end of the reporting period (December 14), AMC’s fails to deliver dwarf them all.

Combined.

Am I the only one who finds this a little odd? Why would this comparatively tiny company, at a $13 billion market cap, have more shares failing to clear than companies valued in the trillions?

If this high level of fails to deliver were unprecedented, I’d think nothing of it. But massive numbers of AMC shares failing to clear has been common for many months (see this, this and this).

Sometimes fails to deliver have a benign explanation, like clerical errors. But why would there be a colossal number of mistakes in AMC shares and not in Apple?

And why would that be repeated for much of 2021?

I suspect a more nefarious explanation: naked short selling. In this usually illegal trade, a trader sells short shares he does not own.

The shares are never delivered because they never existed. Meanwhile, the trader can push down the share price without limitation.

When will the SEC act on its own data?

There will be no blog tomorrow. I have an acting gig in the city! See you Thursday!

More on markets:

AMC Fails to Deliver Soar Past 400,000

How Elrond Could Take Over Payments Worldwide

AMC Blows Up Hedge Fund with Sordid Past

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC Fails to Deliver Soar Past 400,000

They’re baaaack.

After bouncing around at mostly low levels in November, December saw AMC Entertainment Holdings, Inc. fails to deliver soar to over 400,000.

AMC registered 405,523 shares as failed to deliver as of December 14th, the last day in the data set just released by the SEC. This represents a nearly 70-fold increase from the last reporting period.

Shares fail to deliver when a trade is not closed out properly. This can happen for benign reasons, like administrative errors.

But when there is a persistent pattern of high fails to deliver, as we saw through much of 2021, they can be a sign of something more nefarious. Naked short selling, or selling short shares one does not own, can cause huge fails to deliver.

The shares are never delivered because they never existed in the first place! This illegal trade is a powerful way to push down a stock’s price.

Sure enough, as fails to deliver mounted in the first half of December, we see a steady decline in AMC’s share price. Shares fell 14% in less than 2 weeks.

AMC’s fails to deliver are completely out of line compared to other stocks. Much larger companies like Amazon (43), Apple (36,407) and Microsoft (0) had only a tiny fraction as many fails to deliver at the end of the reporting period.

Maybe nothing inappropriate is happening here. But I’d like to see the SEC investigate it and find out, rather than just releasing the same shocking data month after month with a shrug.

More on markets:

AMC, GameStop Volumes Plummet as Investors Move to Computershare

How Solana Could Wipe Out Visa and MasterCard

Citadel Holding Nearly $500 Million in AMC Options

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC Blows Up Hedge Fund with Sordid Past

AMC Entertainment Holdings, Inc. has blown up another prominent hedge fund to close out 2021:

The New York-based hedge fund Anchorage Capital Group has shut down after more than 18 years of capital management.

Anchorage Capital had 4 million put options on AMC, which accounted for 17.8% of its portfolio.

Anchorage Capital Group had the second-largest short position against AMC stock.


The hedge fund’s founder, Kevin Ulrich, has a sordid past. From Bloomberg:

Last year, a woman sued Ulrich, accusing him of sexual battery in a Manhattan hotel in 2019 — a complaint that was later withdrawn. Institutional Investor, citing an Anchorage client, reported in November 2020 that Ulrich settled with the accuser and that clients were displeased by the firm’s failure to disclose the allegations after they became a matter of public record.

Perhaps Ulrich was a little too busy with the rape allegations to mind his portfolio.

Anchorage compounded their misfortune with massive put option bets on other meme stocks like GameStop Corp. and Bed Bath & Beyond, Inc. The $7.4 billion fund will now be liquidated.

Anchorage’s returns had been lackluster for years, and its assets under management had shrunk by half from their peak. Indeed, Bloomberg reports it had been “trying to shrink.”

I’m sure AMC shareholders were happy to give them some help with that.

There will be no blog tomorrow. See you on Monday and happy new year!

More on markets:

AMC, GameStop Volumes Plummet as Investors Move to Computershare

How Did High Dividend Stocks Perform In the Last Crash?

Ken Griffin to Spend $300 Million to Defeat Governor

Photo: “Fruit of the fireball machine” by SiamEye is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

How to Ace a 3 Minute Pitch

Last week, I was talking with a young founder who is just starting to pitch investors. She wished she could find a good example of a 3 minute pitch.

So I figured if she was having this problem, others probably were too!

This morning, I made a little video of what I would consider an ideal 3 minute pitch. I used the example of my favorite startup, Uber.

A 3 minute pitch is a key thing to master because startup demo days are often in this format.

It’s also useful if you have brief, individual meetings with VC’s or angel investors like me. You want to pitch in a concise way and leave lots of times for questions.

Why Is This Such a Strong Pitch

  1. It’s short.
    There are just 16 slides with only a little text on each one. It takes under 3 minutes.
    I look at around 25-30 startups a week, so I can only spend so much time on each one.
  2. It clearly frames a huge problem and proposes a good solution.
    Mobility is a big issue, and long before Uber, everyone knew taking a taxi stank. This presentation clearly shows how Uber is better.
  3. It shows a clear growth trend.
    Nothing gets investors salivating like rapid growth!
    Show revenue or user growth in a chart and calculate the compounded growth rate. Make that explosive growth obvious!
  4. It shows the product.
    The same slide deck could describe 100 startups. Showing the product makes it clearer what you’re working on.
    It also shows you actually have something built!
  5. There is a clear request.
    I don’t just say “thank you for your time.” I ask the investors for something specific: $3 million.
    And I make it clear what it can achieve: us dominating the taxi industry.

    A little tip for making sure you hit the 3 minute mark is to have your phone with a stopwatch running right next to you, so you can glance over occasionally.

    I also suggest using this template from Sequoia, as I did. It gives a great framework for hitting the key points in your pitch.

    What did I miss? What questions do you have? Leave a comment at the bottom and let me know!

    Disclaimer: I am not Travis Kalanick 🙂

    More on tech:

    The High Growth Handbook: Scaling Startups from 10 to 10,000 People

    Why I Just Invested in Kippo, Where Gamers Find Love

    How Startup Founders Turn Investors Off

    Photo: “The Ace of Spades” by Toufique E Joarder is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

AMC, GameStop Volumes Plummet as Investors Move to Computershare

Today, the hottest name among meme stock investors may not be AMC Entertainment Holdings, Inc. or GameStop Corp., but an obscure Australian stock transfer company.

Investors in meme stocks have been moving their shares to Computershare in massive numbers since summer. The Australian company allows investors to hold shares directly, rather than through a broker.

A Seismic Shift

As investors began to hold their shares directly for the long term, volumes in AMC and GameStop have plummeted:

AMC traded nearly 800 million shares a day in early June and is down to under 50 million now. GameStop was trading over 20 million a day in June, but now fewer than a million shares trade hands in a typical day.

Why Computershare?

Many investors are concerned that their shares are being loaned out to hedge funds to sell short. This can drive down the price of the stock.

Brokerages insist they only lend out shares that were bought on margin. But many investors are skeptical.

Even if brokerages are telling the truth, there’s another compelling reason to use Computershare: Robinhood’s January trading curbs.

In January, Robinhood made it impossible to buy shares of GameStop, AMC, and other meme stocks. This cratered demand for the shares and they fell substantially.

With Computershare, investors can buy shares directly. However, unlike many brokerages, there are fees for buying and selling with Computershare.

Whether you want to go to the extra trouble to hold shares directly will depend on the person. But direct ownership is a valuable tool in the investor’s kit, and I’m glad it’s becoming better known!

Do you own shares directly or via a broker, and why? Let me know in the comments below.

More on markets:

GameStop Now Accepting Dozens of Cryptocurrencies

How Did High Dividend Stocks Perform In the Last Crash?

Citadel Holding Nearly $500 Million in AMC Options

Photo: “papa gorilla” by leamaimone is licensed under CC BY-NC-SA 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. 

The High Growth Handbook: Scaling Startups from 10 to 10,000 People

Elad Gil is a Silicon Valley legend. After selling his startup to Twitter, he helped the company scale from 90 to 1500 people in under 3 years.

He’s also had enormous success as an angel investor, investing in startups like Airbnb, Coinbase, Square and Stripe.

So I was very excited to dig into his book, The High Growth Handbook. In it, Gil lays out his best tips for scaling a company at warp speed, along with interviews with a who’s who of tech.

Here are some of the best pieces of advice I found:

How to Hire

“Hire only after there’s a burning need for that person.”

Naval Ravikant

Gil’s approach to hiring is carefully structured. He suggests writing a job description for every position and asking each interviewee the same questions.

But even better than questions are actual tasks. The best way to assess someone’s skills is to have them complete a task similar to what they’ll do on the job.

He also counsels interviewers to write down their opinion of the candidate before speaking with other interviewers, to avoid groupthink. This is the same process used at Amazon.

And when you do find the right person, move fast!

How to Lead

So you’ve got your ideal employees. Now what?

In an interview with Sam Altman, Altman says that setting the company’s direction is just 5% of a CEO’s job. The other 95% is making sure it happens.

“Delegation is not abdication.”

Gil also recommends holding skip level meetings with junior employees that don’t report to you. They tend to have their finger on the pulse of the market and are closer to the customers.

How to Rest

Gil used to work every weekend and even on “vacations.” But now, he tries to fully unplug.

This is something I struggle with! I was meeting with a company founder at nearly midnight on my vacation in Barcelona while my wife waited patiently upstairs.

We have to remember that if someone as successful as Gil can unplug for a few days, we can too!


In all, I found this book a very practical guide to building startups. My only criticism is that with the mix of interviews and Gil’s writing, and the jumping between topics, the book feels disjointed.

I think it would be more effective if it followed a company from birth to IPO, examining the challenges it faces on the way.

Nonetheless, if you’re interested in startups, Gil’s advice will help you. Check it out!

More on tech:

What I Look For in Startups

How Startup Founders Turn Investors Off

The Top 3 Startup Pitch Mistakes

Photo: “Elad Gil” by jdlasica is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Amazon Business American Express Card

You already shop on Amazon. Why not save $100?

If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.

Best of all: No fee!

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 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order.