Tremendous

An angel investor's take on life and business

  • They Passed on Airbnb. Here’s Why.

    In 2008, Brian Chesky was trying to raise $150,000. For this sum, you could’ve owned 10% of Airbnb. His friend Michael Seibel introduced him to 7 top investors, but Brian didn’t get a single check.

    Today, that 10% stake would be worth about $5 billion.*

    Let’s look at the reasons these investors passed and figure out where they went wrong. You can read the entirety of the rejections here, but I’ll just quote some key parts.

    #1 “Not in our area of focus.” Having too narrow a focus can be a real problem.

    Every year, there are thousands of new startups created. Only a few will ever matter.

    If you’re looking in a narrow area, it’s very hard to find an outlier.

    For example, I worked in medical software for many years. What if today, I only invested in healthcare tech companies?

    How many important ones are created every year…is there even one? What are the odds I meet them and decide to invest?

    My aperture would be just too narrow. I need the flexibility to invest in the next Brian Chesky if I meet him.

    #2: “Potential market opportunity did not seem large enough.”

    Airbnb created a new market. That’s what this investor missed.

    The market for staying in someone’s house was pretty close to 0 when Brian was pitching in 2008.

    That was the point of Airbnb! He was going to take those empty rooms and put guests in them.

    Maybe staying in someone’s house was a small market, but hotels certainly weren’t. If this investor had looked at an adjacent market, they could’ve seen how big this opportunity really was.

    #3: “Not in one of our prime 5 target markets.” Again, having too narrow an aperture is a real problem. That’s why I consider anything software to be fair game.

    I’ve tilted more toward SaaS because that’s where my background is. But I also have some great marketplaces, consumer subscriptions, and more.

    #4 “I was unavailable to get on a call.” Michael introduced Brian to prominent people in Silicon Valley. Many probably had a team of people working with them.

    Delegate the call to someone else if you’re too busy!

    #5 “We’ve not been able to get excited about travel-related businesses.”

    I don’t even know what this means. Do you want to make great investments or not?

    I can only imagine being the founder getting messages like this one. Weird, non-specific, and totally unhelpful.

    When I pass on a company, I like to give the founder a reason that makes some sense. “I’d like to see higher growth” or “I’d like to see you find a CTO.”

    At least then, the founder knows where she stands.

    The Ghosts

    Remember, Michael introduced Brian to 7 people. We’ve only covered five.

    The other two never even replied!

    Of all the mistakes investors made here, this one is the most egregious. How do you not reply to a warm intro?

    I can’t always reply to every cold message. But if someone I know introduces me to a founder, I’m going to at least respond to the email!

    Some investors just aren’t working hard enough. I don’t do 90 hour weeks or anything crazy like that, but I at least manage to reply to warm intros.

    There’s no excuse for this sort of stuff. Try harder!

    Wrap-Up

    In the end, hindsight is 20/20. We cannot meet with every founder, and we can only invest in a small group.

    Some day, I’ll be looking at an e-mail in my inbox from the founder of a now-unicorn. And I’ll be crying in my cinnamon apple herbal tea, “I never even met them!”

    That’s the way the business is. You’ll have many mistakes, but hopefully you’ll make them up with one or two big successes.

    What do you think of Brian’s story? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    The Airbnb Deck

    Talking Follow-On Strategy with JCal

    Astribot: Your Future Butler

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

    *10% of the company would be worth about $10 billion, but an early investor would have been diluted by future fundraising. That dilution is usually around 50%, hence the $5 billion figure.

  • Astribot: Your Future Butler

    He pulls a tablecloth from beneath a pyramid of wine glasses. They scarcely move an inch.

    This is Astribot, a new robot from Chinese startup Stardust Intelligence. In an incredible new demo, Astribot cooks, decants wine, and even irons a shirt.

    And should you need a little Chinese calligraphy done, Astribot can do that too!

    Stardust Intelligence claims that the video was shot at 1x speed and the robot is not teleoperated (another term for remote control).

    Like bots from Tesla, Figure and others, it’s not yet publicly available. So, we can’t try it out for ourselves and verify that it works.

    But for a first demo, Astribot is incredibly impressive.

    Stardust Intelligence plans to release the robot later this year. Meeting this goal would be an incredible feat.

    If Astribot fails, we know what happens: things stay as they are. But what if it works?

    On the latest All In Podcast, angel investor Jason Calacanis sketches an intriguing robot future.

    What if a manufacturer could get the bill of materials for such a robot down to about $10,000? At that price, the company could rent them out for about $300 a month.

    Who’s not going to do that?

    Ten years from now, I might be renting an Astribot. I pay $300, and it does all my housework for me.

    When I’m asleep, I could have my Astribot work in a factory. The wages it earns could pay for the rental and then some.

    Free housework, and a profit to boot!

    Even if Astribot never makes it to market, there are countless competitors. Tesla, Boston Dynamics, Figure and others are all working on androids.

    Are they all going to fail? I don’t think so.

    This moment in robotics reminds me of the invention of calculus. Both Leibniz and Newton invented these new techniques independently around the same time, building on prior discoveries.

    Today, numerous companies are all converging on a humanoid robot. These robots are powered by AI, sucking in videos of humans doing things and replicating these actions.

    People have imagined robot servants for generations. Today, we may be close to making those dreams real.

    Would you get an Astribot? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    The Most Amazing Video I’ve Ever Seen

    Can Meta AI Beat GPT4? I Tested Them to Find Out.

    Talking Follow-On Strategy with JCal

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

  • Can Meta AI Beat GPT4? I Tested Them to Find Out.

    Facebook (yes, I’m still calling it that) just released a ChatGPT competitor: Meta.ai. This morning, I put the two head to head on 3 challenges to see which bot is better.

    Let the games begin!

    Challenge #1: Teach Me About SEO

    I was chatting with the founder of an interesting new SEO startup. That made me wonder, what’s new in the field of SEO lately?

    Let’s ask Meta AI…

    Meta pulled some interesting information. But I found a lot of unfamiliar acronyms, like EEAT and SERP.

    I would’ve preferred a response in plainer English.

    Also, Meta only used one source, which is not ideal. I want to see it look at multiple sources and collate the info.

    All in all, this wasn’t much better than a traditional Google search.

    Let’s try GPT-4…

    GPT-4 did a way better job. It explained the terms it’s using and looked at multiple sources.

    This is a far more useful response.

    Challenge #2: My Veggies

    “And now for something…completely different” as Monty Python used to say.

    I ordered a bunch of veggies this morning. What should I eat first?

    Here’s what Meta AI said…

    Meta’s response here was great! It not only told me how long each would last, it told me the best way to store them.

    It only drew on one source here, but I got the info I needed. Great work!

    Now for GPT-4…

    GPT-4 crushed it. It told me how long each veggie would last and how to store it. But it also gave me another great reminder.

    At the end. GPT-4 reminds me to not just follow a time guideline. I should also look for wilting, discoloration, or any odors.

    This is a very helpful reminder. So all in all, GPT-4 won this challenge too.

    Challenge #3: Gettin’ Chilly With It

    As I write this, I’m putting off going in the cold plunge. It’s hard!

    So to motivate me, I thought I’d ask my new AI friends about the benefits of cold plunges. A reminder of how good they are for my health might get me off my butt and into the tub!

    Don’t fail me now, Meta:

    Meta cited some awesome benefits, including some I forgot about! I just did strength training yesterday, and I’m a little sore. Perhaps the cold waters can help!

    However, it didn’t cite any sources. These benefits look familiar and accurate, but it’s hard to know for sure without citations.

    Let’s try GPT-4…

    GPT-4 gave us an excellent response with killer citations. It even cited info from the Cleveland Clinic, one of the world’s finest hospitals.

    Verdict

    GPT-4 won every time. Meta AI works pretty well and is quite user friendly, but the quality of output is not as good as OpenAI.

    Nonetheless, Meta AI is a pretty darn good model. And because it’s based on Llama, it’s open source.

    Llama 3 may not be perfect. But it’s more than good enough for most uses, whether you’re asking a question or integrating AI into your product.

    The fact that Llama is open source could propel it past GPT-4 in time. After all, would you want to base your entire business on a closed source technology over which you have no control?

    Now, time for that cold plunge…

    What do you think of Meta AI? Leave a comment and let us know!

    Have a wonderful weekend everyone, and thanks for reading!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    Talking Follow-On Strategy with JCal

    Reserves Lead to Eye-Popping Returns, New Data Shows

    The Founder Crunchbase Hack

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Talking Follow-On Strategy with JCal

    How do you know if one of your investments is a winner? And when you find one, what’s the best way to double down?

    I dug into some real venture capital inside baseball with top angel Jason Calacanis on the latest This Week in Startups.

    One of the best ways to increase your returns in venture is by using reserves. Reserves let you double down on your best companies, goosing your returns.

    JCal invests in a ton of startups, often beginning at pre-seed.

    He’s planning about 200 for his current fund. Of those 200, he’ll double down on somewhere between 10 and 30 (5 to 15%).

    So which ones does he pick?

    That’s where the “likely winner” vs. “definitive winner” framework comes in. This framework helps identify the best companies coming out of the seed stage.

    Likely vs. Definitive Winners

    1) Definitive winner. Jason had 4 unicorns in his first fund: Robinhood, Calm, Density and Superhuman.

    When it came time for them to raise money again after Seed, it happened the same way for all 4:

    • Series A Priced Round.
    • Known VC firm leading. This firm will usually buy 10% or more of the company in the round.
    • Known VC joining the board. Since VC’s can only take a few board seats each, a top VC deciding to give this company one of his precious board slots means a lot.

    Jason likes to go super pro rata on his definitive winners. That might mean a $1 million investment when the initial investment was $100k or $250k.

    2) Likely winners. These companies aren’t quite as strong as the definitive winners, but they’re still doing great.

    When these companies do their next round after seed, here’s what it tends to look like:

    • SAFE, founder generates terms.
    • No lead.
    • No board.
    • Passing the hat.
    • New investor involved.

    These are still great companies, and Jason likes to re-invest in them. But for these, he’ll do his pro rata or a little less, in most cases.

    The Rest

    So, what about everybody else?

    The weaker companies tend to raise bridge rounds. These are usually SAFEs and they don’t include any new investors. Some may do equity crowdfunding as another avenue to raise capital.

    Jason doesn’t re-invest in these companies.

    What Not to Focus On

    I thought that growth would distinguish the definitive and likely winners. But Jason explained that growth is not a reliable indicator:

    ‘“…let’s put aside growth because in the likely and the definitive winners, there’s always some amount of growth. It could be 2x. It could be 5x.”

    Getting hung up on exact growth rates won’t help us find the best companies at this stage. Round dynamics are a better clue to who the winners are.

    How I’m Applying Jason’s Lessons

    I don’t do as many investments as Jason.

    I don’t have the staff or the capital to pull that off. I also tend to invest a bit later: typically seed.

    So, I’ll probably re-invest in a slightly higher percentage of my companies than he does. For me, it might be 10-25%.

    After all, my investments are already a bit more proven out than most of his. On the other hand, my upside is not as high as JCal’s.

    But I do keep 50% reserves, just like he does. And when it comes time to dispense them, I’ll be following the likely vs. definitive winner framework to the letter.

    Wrap-Up

    Our business changes every day. But year after year, the best companies tend to look the same. They raise a Series A from a good VC firm and one of the partners joins the board.

    When one of my companies pulls off that difficult feat, I’ll be thinking of Jason’s advice:

    “You gotta back up the truck.”

    JCal

    What do you think makes a winning startup? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    I Was On This Week In Startups!

    Reserves Lead to Eye-Popping Returns, New Data Shows

    The Founder Crunchbase Hack

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Three Technologies That Would Change Everything

    Part of my job as an investor is to try to imagine what the future could look like. So today, I spent a little time daydreaming…

    Here are 3 technologies I think could change the world completely — for the better.

    1) Ageless fertility. Women in America are having children later and later. And if a woman has her first child at 35, she may not be able to have as many as she’d like.

    But what if we removed the age issue completely?

    A woman could work hard and enjoy life, settling down only if and when she’s truly ready. She could then have a baby at 50, secure in her career and mature enough to handle the challenges of motherhood.

    More kids would be brought up in stable homes with plenty of financial resources. More women would be able to do what they want with their lives.

    Technology that could make a 50 year old woman as fertile as a 25 year old, that’s a true game changer.

    I’m not sure where the solution lies — hormone treatments, rejuvenation of eggs, something else? But I’m pretty sure that some day, we’ll find it.

    2) Drastically cheaper housing. I bet I can guess what your biggest bill is: rent or mortgage, right?

    It sure is for me! Housing here in the pricey New York area consumes about half my total budget.

    But what if we could make housing so cheap you’d barely notice your mortgage payment? What if the average $3,000 payment became more like $300?

    “That’s nuts, Francis.” I know, it sounds far-fetched.

    But imagine a future with houses rapidly manufactured at scale, like smartphones today. The first smartphone, the original iPhone, cost $733 in today’s dollars.

    Today, my Android phone from Motorola cost a mere $100. And it would dance circles around that 2007 iPhone.

    Perhaps the houses of the future will be made of different materials, like ultrahard plastics or mycelium. What if they were 3D printed, or even grown organically on a substrate?

    But to make this vision of dirt cheap housing real, we also need political change. Restrictive zoning is one of the biggest drivers of housing costs.

    I wonder if tech can help there too…

    3) Humanoid robots. The world population is expected to peak around 2080. So who’s going to do all the work?

    The most likely candidate is a humanoid robot.

    Humans build everything to suit ourselves. From the height of counters to the size of tools, everything is designed at human scale.

    To operate in that world, robots need to look like us.

    The most impressive humanoid robot I’ve seen is the Figure. With human-like dexterity and a brain by OpenAI, Figure might be the helper we need.

    Imagine a world in which every dangerous or boring task is done by a robot. We humans get to do stuff that’s fun and interesting — like write and invest in startups!

    Wrap-Up

    A world with ageless fertility, cheap housing and robot helpers is a much freer world. We can have kids when we want, live where we want, and do the work we want to do.

    I’m excited about meeting companies attacking all of these areas. Let’s make the future awesome!

    What do you think the future could look like? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    The Most Amazing Video I’ve Ever Seen

    Autonomous Driving in Central London

    Watch Elon Drive Tesla’s Amazing New Autopilot

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Reserves Lead to Eye-Popping Returns, New Data Shows

    Want to make that 3 or 4x fund an 8x? Then you better have reserves.

    A new report from Primary Venture Partners shows that reserves strategy is one of the biggest drivers of returns in venture capital. Let’s dig in…

    From Good to Great (Funds)

    Partner Jason Shuman analyzed over 150 mature VC funds with strong returns. He segmented them into two groups: good (3.5x average return) and great (18x average).

    One of the biggest differences between good funds and great ones was how they handled reserves.

    Great funds kept around 40% reserves, versus less than 20% for the good funds. To put that in perspective, many funds keep no reserves at all — and their performance probably suffers because of that.

    The impact of those additional reserves was transformative.

    With a different reserve strategy, the good funds could’ve become world beaters! Well, we live and we learn.

    Are Those Reserves In Your Pocket, Or Are You Just Happy to See Me?

    From day one, I’ve kept reserves. I’m actually a bit more aggressive than the average “great fund” — I keep 50% reserves.

    This is one of the reasons I write small first checks — usually $5k. I want to have lots of cash in reserve to pour into the best companies in the Series A and onward.

    I only give follow-on checks to the very best performers. That would generally be the top 15-25% of my investments.

    I invest earlier than most of the funds in this report — typically seed and pre-seed. So, it makes sense for me to take more shots on goal and re-invest in fewer companies.

    The earlier you invest, the more failures you’ll have.

    Why Reserves Make Sense: Information and Access

    I wrote 11 first checks in 2022. At the time, I had a gut feeling which ones would do the best.

    But I was totally wrong!

    I loved all the companies, or I never would’ve invested. But the ones I was certain would crush it actually didn’t.

    Meanwhile, the ones I had more moderate conviction on grew like mushrooms!

    By 2023 and 2024, things looked very different. Two likely winners have emerged from the pack.

    One has scaled to a $7 million a year run rate, another to $11 million. I’ve managed to get a 2nd check into one and hope to re-invest in the other soon.

    After two years of working with all 11 founders, I know these companies well. I see what’s working and what’s not.

    My 2nd bet was far better informed than my first. And since I have unique knowledge and access, I have an advantage over other investors.

    Wrap-Up

    Reserves vs. no reserves is one of the hottest debates in venture capital. Primary’s new report should settle it.

    We make lots of investments. Sadly, most don’t make it.

    But when those winners emerge, we need to double down. Owning more of the most successful companies is our best chance at notching huge returns.

    What do you think about reserves? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    The Founder Crunchbase Hack

    New Data Shows NYC May Be the Startup Capital

    I Was On This Week In Startups!

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • Autonomous Driving in Central London

    We glide past Big Ben on a picture-perfect sunny day. But there’s no chatty cabbie at the wheel — this car is driving itself.

    Last week, Wayve released an incredible demo. Wavye’s latest Lingo-2 model drives us around central London with ease, and even explains itself along the way!

    Understanding Why the Car Does What It Does

    Whether it’s “increasing speed to match the speed limit,” “reducing speed due to the upcoming turn,” or “stopping due to the red light,” Lingo-2 explains every action it takes. I have not seen this in any other self-driving technology.

    Today, when a self-driving car makes a mistake, we’re left to guess why. We saw that issue when Elon demo-ed FSD 12, which I covered on the blog last August.

    At one point, Elon’s car appeared to turn left when he wanted it to go straight. The solution was to feed it more data of traffic lights.

    But the problem could be corrected even sooner if we knew why the car decided to turn unexpectedly.

    We’d know what exact data it needs. Or, we could simply instruct it not to turn when the route says to go straight.

    Elon’s 50 minute demo had only 1 error. With technology like Wayve’s, Tesla could correct it easily and deliver a perfect experience.

    If It Works in London…

    I’ve never been to London. But the streets Wayve shows in its demo look a lot like New York.

    Tons of cars, countless pedestrians, narrow streets. If Wayve can navigate that, what can’t they do?

    This technology appears to be ready for deployment in most any major city in the developed world.

    I’m not sure if Wayve would work in extreme weather. But if it’s deployed in robotaxis, the taxis could just be kept off the road during that rare blizzard.

    Wrap-Up

    Wayve’s self-driving technology appears to be some of the best ever made. However, it isn’t as widely used as systems from Tesla or Waymo, so it’s hard to say for sure which AI is the best.

    I expect to see companies like Tesla and Waymo add this “self-explanation” function. It’s very helpful with troubleshooting, not to mention building user trust.

    I can’t wait to cruise around in a robotaxi! No distracted drivers, no road rage.

    But when I visit London some day, I just might wish I could have that friendly chat with a cabbie.

    What do you think of self-driving cars? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    Watch Elon Drive Tesla’s Amazing New Autopilot

    The Founder Crunchbase Hack

    New Data Shows NYC May Be the Startup Capital

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • My Christian Health Share

    I work for myself. That means no juicy bigco health insurance. But I’ve found another way — a Christian health share.

    Since 2018, I’ve been using a service called Medishare. Medishare is a collective of people that share each other’s medical bills.

    Health shares will usually exempt you from any penalties under the ACA or state laws. Having Medishare has exempted me here in New Jersey.

    For the last 6 years, Medishare has worked great for me! Here’s what I’ve experienced…

    1) Eye infection. I got pink eye a couple of years ago, not long after I signed up for Medishare.

    “Does this thing really work?” I thought. “I guess I’m about to find out.”

    I went on their website and requested a telehealth appointment. A doctor called me within minutes.

    I described what was wrong, and he prescribed some antibiotic eyedrops. I walked a couple of blocks to Walgreens, paid around $30, and the problem was solved.

    Success!

    2) Finger infection. This one hurt.

    I banged my index finger doing dishes one night. I didn’t know it, but that mishap caused a tiny cut.

    The icky water of dirty dishes must’ve gotten in there, and my finger got a bad infection.

    I was visiting my mom in Wisconsin when I hit my limit. So although it was after midnight on Thanksgiving Day, I asked for an appointment via Medishare.

    A very kind doctor called me back within probably 2-3 minutes, despite the time.

    I sent him a picture and described the problem. “My finger definitely hurts,” I told him.

    “Yes, I imagine it does!” he said. “What’s happening is the infected area is pushing your fingernail out of place.”

    Nature had conspired to recreate ancient torture methods on poor Francis. But not to worry — this wonderful doctor was here to help.

    He prescribed an oral antibiotic, and I thanked him profusely for being there for me after midnight on a holiday when he probably wanted to spend time with his family.

    This man was truly a good doctor.

    I picked up the pills for maybe $15 at Walgreens the next day. Almost immediately, the problem disappeared.

    3) COVID. You knew this one was comin’, didn’t ya?

    In late 2020, a friend of mine got COVID and wound up with some nasty symptoms.

    I had been in a car with him shortly before. I felt fine, but I still must have it, right?

    I called Medishare to find out what the heck to do in case I did test positive. How long do I quarantine?

    A nice doctor patiently answered all my questions. I even called back for a 2nd visit later that day to ask more questions, and they answered every single one.

    I got tested, and turns out I didn’t even have it! But Medishare was there to give me peace of mind, and I’m grateful for that.

    All the telehealth visits I’ve described above were absolutely free. I only paid for the prescriptions, which were pretty cheap.

    In the 6 years I’ve used Medishare, I have been very fortunate not to have any serious health issues. So, I cannot tell you what Medishare is like for those with more severe health challenges. I can only tell you about my experience.

    It’s also absolutely critical to note that Medishare is not health insurance. A health share is different and subject to different regulations.

    Medishare is not the only health share out there. I hear a ton of good things about Sedera. Liberty Healthshare is also a popular choice.

    I can’t tell you the right choice for you. But I can tell you that after six years with Medishare, I’m happy as a clam!

    What do you do for medical care? Leave a comment and let us know.

    Have a great weekend everyone!

    If you enjoyed this post, subscribe for more like this!

    More from the blog:

    The Founder Crunchbase Hack

    New Data Shows NYC May Be the Startup Capital

    The Founders I Want to Meet

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • The Founders I Want to Meet

    This morning, I opened LinkedIn and saw 26 new connection requests. Here’s how I decide who I’m actually going to meet.

    My Checklist

    1) Launched product. No matter what kind of company you have, you eventually need to launch a product.

    I invest in software. Most technical founders can pop up a basic product in a few months.

    This high school junior made an EMS dispatch tool on his own in just 200 hours! That gives you an idea of what a skilled builder can do.

    I could meet founders before their product is launched, but I almost never do.

    There are too many pre-launch companies to meet them all. And with nothing in the market touching customers, we wouldn’t have much to talk about anyway!

    2) A couple of paying customers. The moment you can get someone to plunk down their credit card, you know you’re on to something.

    People can tell you all day long that they love your product. But often, they’re just trying to be nice.

    Those who paid are committed.

    3) Delaware C Corp. This one might seem odd. Why is some wonky legal thing so important?

    Tech startups need to do a lot of unusual things: issue different classes of shares, issue stock options, etc. Delaware C Corps are perfectly suited to do all of this.

    If I find out a startup is incorporated any other way, I hold off on meeting the founder. Why should I waste their time if I’m 100% certain I’m not going to invest?

    But if you incorporated the wrong way, don’t worry! You can convert to a DE C Corp. It just takes a little time and some legal fees.

    4) In one of my markets. I invest in the US and countries very similar to the US…the UK, Ireland, Canada, Australia and New Zealand.

    The US is what I know. I don’t know much about Germany or Brazil or Hong Kong.

    Beautiful places, I’m sure! But they’re just too unfamiliar.

    I don’t know what German customers want. I don’t know what challenges they face.

    What’s more, the best startups created in Germany are going to be picked off by German investors. I’m sitting here in New Jersey far, far away. I’m only going to get the scraps.

    I’m better off sticking with teams in a familiar market addressing customers in that same market.

    Wrap-Up

    This checklist is designed to filter the torrent of dealflow I get every day. I’m trying to find viable businesses in areas I understand.

    They don’t need to be fully proven out. I love meeting founders early!

    But I do want to see the basics in place: a team, a product, and someone using the product.

    If you have that, let me hear from you!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    The Founder Crunchbase Hack

    Where Did All the Angel Investors Go?

    New Data Shows NYC May Be the Startup Capital

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order. 

  • The Founder Crunchbase Hack

    Yesterday, I was chatting with a wonderful young founder in New York. I mentioned trolling Crunchbase to find startups.

    “Wow, we need to get on there,” he replied.

    Today I’m going to show you the simplest way to get investors contacting you. It’s free, and it only takes about 15 minutes.

    When you’re done, your company will be on one of the most popular databases among investors. If you show them something interesting, you will have VC’s and angels contacting you.

    The steps:

    1) Go to Crunchbase.com

    2) Click “Create profile” on the left.

    3) Click Company.

    4) Put in details about your company. I invented Fruber, the Francis version of Uber. Fill out as much as you can so investors can easily learn about your company. Be especially sure to enter a founded date — I generally look for new companies since I invest early.

    5) Add headquarters. This is important because investors often search a certain city, state or country where they like to invest.

    6) Enter industry and founders. Industry is important because different investors invest in different areas. Founders is important because we have to know who to contact!

    7) Enter funding rounds. If you’ve raised so much as a cent, definitely put that down. It makes you look all the more appealing to investors. If it’s a very small amount, there’s no need to disclose exact amount.

    8) Fill out any other details that are relevant to you. There’s room for news, events, etc. But these fields are less important than the key ones we covered above.

    9) Click “Save all edits.”

    Now you have your company!

    So Francis, why should I do all this silly stuff when I’m busy running my business?

    Well, how much time are you spending cold messaging investors? Wouldn’t it save you a lot of time if they cold messaged you?

    Taking 15 minutes to create a nice Crunchbase profile can make that happen.

    Investors want to meet great founders like you. But they don’t know you exist!

    This Crunchbase profile is like a landing page. It’s saying “Hello world, I exist!”

    Those 15 minutes just might be the key to closing your fundraise.

    What questions do you have about Crunchbase? Leave a comment and let us know!

    If you enjoyed this post, subscribe for more like this!

    More on tech:

    Where Did All the Angel Investors Go?

    New Data Shows NYC May Be the Startup Capital

    GitLab’s YC Demo Day Pitch

    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!

    Misfits Market

    I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

    I wrote a detailed review of Misfits here.

    Use this link to sign up and you’ll save $15 on your first order.