Tremendous

An angel investor's take on life and business

  • Why Manufactured Housing Won’t Fix High Housing Costs

    Last night, I scrolled through Amazon, entranced. You can buy a whole house for only $30,000!

    Some were as cheap as $15,000. But being Mr. Fancypants, I had my eyes on one for $72,000.

    I better hurry — there’s only 10 left in stock! 🙂

    But as exciting as manufactured housing is, it won’t fix the high cost of housing. Here’s why…

    Palo Alto and Oshkosh

    Where is housing really expensive? In NYC, the Bay Area, and a few other spots.

    Even the small towns aren’t as cheap as they used to be. But compared to paying $1.6 million for a glorified garage in Palo Alto, they look pretty reasonable.

    The thing is, that house in Palo Alto is probably built pretty much the same way as a house in Oshkosh, Wisconsin where I grew up. Light frame wood is the rule for single family houses most anywhere in America.

    And yet, prices in Oshkosh are much lower. Check out this place, twice the size for $270k:

    Why Is Palo Alto So Expensive?

    How the heck do you explain this?

    Everyone wants to live in Palo Alto and not that many people want to live in Oshkosh. And yet…their populations are almost identical.

    There’s a lot of pent up demand for Palo Alto. So why doesn’t it grow?

    Because zoning makes building there extremely difficult.

    Let’s put some numbers on this. I found some great data from the American Enterprise Institute (AEI)…

    In Palo Alto’s 94301 zip code, the cost of land accounts for 84% of a home’s value. One acre in this wealthy town goes for a staggering $18 million — if you can even find one.

    The AEI data set only includes larger metros, so Oshkosh is left out. But let’s use Cedarburg, WI, a Milwaukee suburb where a friend of mine lives.

    In Cedarburg’s zip code (53012), land makes up only 33% of the cost of a house. Lots are more than I thought — $600,000 an acre. But that’s still about 97% cheaper than Palo Alto.

    And since Oshkosh is much more remote than Cedarburg, the prices are even lower.

    Zoning Is the Key

    So, land is why Palo Alto costs so much. Now, what exactly has made that land so expensive?

    In major coastal cities, zoning pretty much determines a lot’s value.

    If it’s zoned to build housing, especially a big multifamily, it’s worth a fortune. If not, it’s worth peanuts.

    In fact, Harvard economist Edward Glaeser found that in nearby San Francisco, over 95% of a lot’s value comes from zoning.

    Prefabs Won’t Move the Needle On the Coasts

    Even if we took construction costs to zero, home prices in Palo Alto would only fall 16%.

    What’s more, manufactured housing may not be that much cheaper anyway.

    A huge percentage of the cost of construction comes from raw materials like lumber, drywall and steel. Manufacturers face those same costs.

    Give Me Some Hope, Francis!

    I know, depressing blog right?

    Manufactured housing may not make housing cheaper in the major metro areas. But there are signs that zoning, that critical component, could be changing.

    NYC Mayor Eric Adams has proposed a new law to let developers build larger and taller. It’s has too many affordable housing requirements for my taste, but it’s something.

    Palo Alto too is taking action, spurred on by state mandates.

    Wrap-Up

    I love the idea of manufactured homes. And in the heartland, it could make a real difference.

    But here in Coastal Bizarroland where everything costs a fortune, prefab houses just won’t move the needle.

    The change we need isn’t technological. It’s political.

    What do you think of housing costs? Leave a comment and let us know!

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

    More from the blog:

    YIMBY Is Working Wonders in New Zealand

    From AI to Satellites, US Dominates All Competition

    China’s Jobless, Childless Youth

    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. 

  • YIMBY Is Working Wonders in New Zealand

    As I stroll down the waterfront in my beloved Hudson County, NJ, I see apartments sprouting up like mushrooms. It makes me proud. But it’s nothing compared to New Zealand.

    YIMBY Is Kiwi

    New Zealand just might be the world capital of YIMBY.

    This beautiful nation has spent the last decade making building homes way easier. Auckland, the largest city, has led the charge.

    From the excellent Apricitas Economics blog:

    Auckland, a city of only 1.7M, permitted 15k units last year—while preliminary data shows the 5 boroughs of New York City (population: 8.3M) permitted a meager 9.2k units by comparison. In total, New Zealand permitted 9.7 new housing units per 1000 residents in 2022, a 45-year-high that was nearly double the rates seen in the US.

    Auckland is building 1 new unit for roughly every 100 residents. In NYC, they’re building approximately 1 per 1,000.

    Auckland has 10X-ed NYC!

    So, Did YIMBY Actually Make Housing Cheaper?

    YIMBY is supposed to make housing more affordable. Is it working?

    Absolutely!

    Rents are growing much more slowly in Auckland today than before the reforms.

    …after adjusting for inflation rents in Auckland have been essentially flat since the 2016 AUP—and [research by University of Auckland professors] Greenaway-McGrevy estimates that 2-bedroom apartment rents are roughly 26-33% lower than they would be in the absence of upzonings. That easing of rent pressures was felt most at the lower end of the price distribution—real rents of Auckland’s cheaper apartments fell faster than the real rents of its median apartment.

    Building more housing worked. It kept rents down, especially for the poor.

    This policy is a resounding success.

    Becoming Auckland

    Here in Hudson County, NJ, we’re building way more than New York City. Our new housing permits are more than 2X the NYC level.

    But that still leaves us 5X below Auckland!

    What if we built like Auckland does? That’s more good construction jobs and more affordable homes, especially for the poorest.

    Check out these effects in Auckland:

    Construction activity in Auckland alone has gone from 1.56% of nationwide GDP in 2012 to 2.67% in 2021, and Auckland’s per-capita GDP has gone from being 6% above the national average in 2012 to 13.8% above it in 2022.

    If we build more, we all get way richer. Housing gets cheaper too.

    And the poor benefit the most.

    Wrap-Up

    If we actually care about poor people, we have to stop the NIMBY craziness. Every home we don’t build pushes people closer and closer to being homeless.

    I hope to see wonderful New Jersey lead on this. And if New York wants to join, let ‘em!

    Jersey guys are always up for a good fight. 🙂

    Should we build more or not? Leave a comment and let me know what you think!

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

    More on world affairs:

    Is a Revolution Brewing in Cuba?

    From AI to Satellites, US Dominates All Competition

    China’s Jobless, Childless Youth

    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. 

  • New Data Shows NYC May Be the Startup Capital

    My heart just about jumped out of my chest when I saw this data. NYC now has more founders building than SF!

    Is It Real?

    This new data comes from Live Data Technologies. Their data is comprehensive, covering over 7,500 founders.

    It’s hard to know how meaningful this information is.

    How did Live Data get it? What do they consider a founder?

    If they’re talking about just tech company founders, then maybe NYC really is the new startup capital.

    But perhaps “founder” means founder of a restaurant or gym too. In that case, we couldn’t proclaim NYC’s victory yet.

    I asked Jason Saltzman of Live Data Technologies about it just now — I hope to hear back soon. 🙂

    What Founders Are Telling Me

    As much as I wanna rep NYC and NJ, this data doesn’t quite square with what I see anecdotally.

    The AI enthusiasm in SF is at a fever pitch. NYC is producing AI companies too, but it feels like a lot fewer.

    Some of this may be because SF is a tech monoculture, but NYC is not.

    There are great founders here, but they’re mixed up with bankers and actors and all sorts of people. So, we don’t notice them as much.

    The Immigration Factor

    There’s one group that seems especially set on SF: founders from abroad.

    Most have no connections to any US city. So when they come, they come to the technology industry’s historic home: the San Francisco Bay Area.

    It makes sense. And it’s a powerful force.

    Immigrants are far more likely to found a technology company than native born people like me.

    Can NYC Win?

    NYC is coming from behind here, no doubt. But although I hear a lot of people excited about SF, I am seeing some interesting things here too…

    When This Week in Startups does its monthly Founder Fridays meetups across the world, each one takes a picture. Afterward, each city posts it to Twitter.

    The NYC crowd always seems to be the largest. I was shocked after the first one in February — our crowd dwarfed SF, Palo Alto, or anywhere else.

    I think New York and my beloved Hudson County, NJ are a fantastic place to build a startup.

    The talent pool is deep. Every tech company that matters has a New York office.

    The investors are here as well. Many major firms have opened up shop here, including Sequoia and Andreessen.

    Also, it’s much safer here than in San Francisco. I don’t see why someone should have to sacrifice their personal safety to build a company.

    Wrap-Up

    As much as I want to believe them, I’m a bit skeptical of these numbers. But what I can tell you is tons of great founders are building in NYC.

    I love investing in them. I also love investing across our wonderful country.

    Here’s to these 7,500 founders — best of luck!

    Do you think NYC can beat SF? 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!

    GitLab’s YC Demo Day Pitch

    Watch Brian Armstrong Practice for YC Demo Day in 2012

    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. 

  • Onieals: Where They’re Gonna Know My Name

    Remember the bar in Cheers, “where everybody knows your name”? Onieals feels like that. They don’t know my name yet— but after Saturday’s dinner, they’re gonna learn it!

    My friend Tim and I continued our Jersey Food Tour this weekend. And although we dearly love Karma’s curries or Grimaldi’s pizza, we decided to switch it up.

    So I found myself relaxing at a white clothed table al fresco. Across the street: lovely Church Square Park.

    Tim slid in across. “What’s new,” I asked?

    “Not much since we had dinner last night,” he quipped. Touche, Tim.

    What to order…

    Onieals has a little of everything. Burgers, non-burger sandwiches, even shepherd’s pie and Italian food!

    I love a good burger, but I’m watching my meat intake. So I went with the crab cake sandwich.

    Is that healthy? Let’s just pretend it is.

    “Rajin’ cajun burger, medium.” Tim had no such pretensions.

    We both made sure to request mayo with the fries. Otherwise, why be here, right?

    We caught up on each other’s lives in the last 24 hours. Gym, waterfront, housework.

    When you’re good friends with someone, that’s half the fun. You don’t just report the big events. You get to report all the little stuff.

    Somehow, that dignifies everyday life.

    Ooh food!

    Before me sat a beautiful crab cake sandwich on a demi baguette. The fries were golden.

    I picked it up, worried I’d destroy its perfectness. But it survived.

    And I took a bite.

    “This bread is so good!”

    The demi baguette this sandwich is served on is absolute primo bread. That’s how you know a good restaurant — bread is never an afterthought.

    The crab was slightly spicy. The remoulade, which is made of mustard, mayo and a few other goodies, lent a nice creaminess to the sammy.

    “I’d put this burger up against Moran’s,” Tim said. That’s high praise — Moran’s has one of the best burgers I’ve ever eaten.

    Fry time. I dunked one of the golden brown fellers into the mayo.

    “These fries are amazing, so crispy” I explained, mouth probably still full of potato. But who’s counting?

    We kept our poor waiter busy with request after request. But he was so efficient that anything we wanted seemed like it was on a conveyor belt, straight to us.

    This was despite the fact that we were the only people outside! When you eat so well, and the service is so good, you want to come back.

    The thing with Onieals is it’s small, and it gets busy. So, they don’t take reservations.

    I imagine an empty table for someone who didn’t show is just too costly for this little restaurant.

    But, you can call ahead and get on the list any time you like. Or just show up!

    Waits are usually 15 minutes or less. And in the mean time, the bar is dark and convivial.

    And if Hoboken is a tunnel too far, there’s also a location in Soho! Try Onieals for great food in a warm, happy setting.

    What are your favorite restaurants? Leave a comment and let us know!

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

    More on food:

    The Fragrant Curries of Karma Kafe

    Miznon: The Professors of Pita

    The Best Bakery in NYC (It’s Not Levain)

    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. 

  • I Was On This Week In Startups!

    “Cynicism is the coward’s way out.”

    Jason Calacanis

    Last week, I thought, “Wouldn’t it be awesome to be on This Week in Startups some day? Maybe many years from now.”

    A couple days later, it happened!

    Jamming with JCal

    Host and angel investor Jason Calacanis was doing a Q&A session with some rabid fans. I asked Jason something I’ve been struggling with for a while.

    What’s the right balance between skepticism and enthusiasm when you look at a startup?

    Jason’s answer surprised me.

    “It’s really easy to be cynical. And what you wanna focus on is not all the things that could go wrong, it’s what could go right.”

    JCal

    I expected him to say you need X amount of enthusiasm and Y amount of skepticism. But instead, he basically said the skepticism takes care of itself.

    It’s the enthusiasm that’s harder — and more important!

    Looking back on my meetings with founders, Jason’s comments make a lot of sense. Pick any startup, and you could find 100 problems with it.

    But the question is, if everything goes right, is it another Uber? Another Google?

    If so, I want to make that bet.

    “The Vision Thing”

    I also love what Jason said about understanding the founder’s vision.

    “One of the things we’ve added to our script…when I’m training my young associates and researchers how to interact with founders is just to say at the end of the conversation, ‘Hey, can I repeat your vision back to you to make sure I understand your vision.’”

    JCal

    I’ve already started using that in my meetings. I’ve forgotten a time or too, but I’m going to work on this!

    Figuring out the founder’s vision is a great way to show respect. And if I do it right, I will truly understand the opportunity before me.

    It would be a darn shame to miss Uber because I don’t understand what Travis is doing.

    Building a Better Investment Process

    Jason and I also talked about how to build a better process for making investments.

    “In any discipline you get into, I think you eventually will start to look at systems and processes and really try to optimize those.”

    JCal

    We can’t control what happens after we make an investment. But we can control our process for finding startups and making those bets. What’s more, we can adapt the process to play to our strengths.

    Jason is more extroverted than just about anyone. He loves doing as many meetings and podcasts as he can.

    I like meeting founders too, but I’m not quite as much of a people person as Jason. I mean, who is? 🙂

    But when I’m reading a deal memo, I’m really in my element.

    It occurs to me that the company pages at YC are essentially deal memos. I can just read tons of them and contact the startups that interest me most. That’d be one great way to play to my strengths.

    Wrap-Up

    Since we had this conversation on Tuesday, Jason’s words have been on my mind.

    I’ve tried to look at these little companies and imagine them as giants many years from now. And here I am on day one, meeting them when they’re still raw and full of potential.

    Pretty great job, isn’t it? 😊

    What do you think of our little Q&A session? Leave a comment and let me know!

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

    More on tech:

    Watch Brian Armstrong Practice for YC Demo Day in 2012

    GitLab’s YC Demo Day Pitch

    The Airbnb Deck

    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. 

  • Watch Brian Armstrong Practice for YC Demo Day in 2012

    Coinbase is one of the world’s largest crypto exchanges. Its market cap is $64 billion. But in the summer of 2012, founder Brian Armstrong was in a dimly lit Silicon Valley office, practicing his pitch.

    Let’s dig in!

    What the Heck Is Bitcoin?

    Brian does a wonderful job of explaining what bitcoin is. Don’t forget that in 2012, it was only 3 years old.

    Today, everyone knows about bitcoin. But still, startups have to pitch investors unfamiliar with their market.

    I recently met with an awesome startup working on ACATS processing. This is the process by which you move a brokerage account from one firm to another.

    Before our meeting, I had Claude teach me a little about ACATS processing. But I sure as heck didn’t know anything before that!

    Unless the investor has a background in your industry, explain everything.

    How’s It Going?

    Now that we know what bitcoin is, Brian explains why users need Coinbase.

    That existing wallet software he shows is uglier than sin. Who wouldn’t prefer something more modern?

    And sure enough, customers are flocking to Brian’s new platform. The growth in sign-ups is staggering.

    In just 70 seconds, Brian establishes the two most important things: what he does, and how it’s going.

    Clearly, this is not the first time he’s practiced.

    PG Shows Why He’s PG

    A voice pipes up from the audience. It’s Paul Graham!

    His comments are dead-on. He tells Brian to emphasize that his sign-ups are growing 20% “a day”.

    That’s such a crucial point!

    If you’re mind is wandering or you need to go to the bathroom, it would be easy to assume that chart shows month over month growth. But it’s actually daily.

    That’s a colossal difference. And it’s really strong evidence that Brian is on to something.

    Paul also asks Brian how he makes money. That would have been my biggest question.

    Turns out, Brian didn’t have a revenue model. So, it makes sense that he left that out.

    I’d like to see him try some sort of revenue model, even if he changes it later. But we have to remember, this was a very early stage company.

    Would I Have Seen It?

    Would I have seen what Coinbase could be? Would I have even met Brian?

    I’d love to tell you I would’ve seen it then. But I’m not so sure I would’ve.

    There were nearly 100 startups in Brian’s batch. Brian didn’t show us any revenue.

    I doubt I would’ve made contacting Brian a priority. But, if he contacted me, those sign-ups would be reason enough to take the meeting.

    This could be a weakness in my game.

    I’m very focused on revenue. And yes, it’s really important. But, that could lead me to miss meeting the great founders at the earliest stages.

    Hmm…

    Wrap-Up

    Even in a practice session, Brian shows us two key things: strong traction and a rapidly growing market.

    After Demo Day, my guess is his calendar was packed with investor meetings.

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

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

    More on tech:

    GitLab’s YC Demo Day Pitch

    The Airbnb Deck

    Apollo’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. 

  • Apollo’s YC Demo Day Pitch

    Sales platform Apollo is valued at $1.6 billion. But in 2016, it was a little company called ZenProspect. This morning, I watched their YC Demo Day pitch.

    https://videopress.com/v/AvD3bjd8?resizeToParent=true&cover=true&preloadContent=metadata&useAverageColor=true

    Founder Tim Zheng clearly shows us why salespeople need ZenProspect. Then, he shows us some incredible traction.

    Let’s dive in…

    A Clear Value Prop

    Tim is very clear about what his platform does and why customers need it:

    “Our product lets B2B sales people find their most lucrative potential customers, e-mail them, and close deals.”

    ZenProspect’s value proposition is clear. Pay us money, close more sales.

    An All-In-One Platform

    Tim explains that salespeople spend all day jumping between different systems. One to find prospects, another to e-mail, a CRM to track it all…I get confused just thinking about it!

    ZenProspect lets you do everything in one place. Who’s not going to at least try that for a month and see if it works?

    Financials Like I’ve Never Seen

    Tim doesn’t just tell us a great story — he’s got the numbers to back it up.

    Tim and his team have hit $1 million ARR while still in an accelerator. That is incredibly rare. GitLab did it, but I don’t know of any others.

    And believe it or not, 5x growth in a few months isn’t even the most amazing stat here.

    ZenProspect is at 70% net margins. This is so rare that Tim has to clearly explain this is net, not gross.

    In other words, of every dollar ZenProspect takes in, 70 cents hit the bottom line as profit.

    That never happens. Even Apple, notorious for high margins, clocks in at “only” about 25%.

    Best of all, Tim did all this using his own platform! If that’s not proof this thing works, I don’t know what is.

    But Can You Get an Allocation?

    Any investor who does early stage software would want to invest in this company.

    But the question is, can you get an allocation? Tim says something at the end of his pitch that’s subtle, but if you’ve been investing for a bit, you hear it…

    “If your portfolio has a company that wants to make more money, please come and find us.”

    Tim is looking for customers. But he doesn’t sound like he’s looking for investments.

    At the end of most YC Demo Day pitches I’ve seen, the founder says something like “If you want to learn more, please come and find me afterwards.”

    I suspect this company’s seed round filled up well before Demo Day. (However, I wasn’t able to find any information to confirm that.)

    This happens a lot with the best YC companies. That said, a variety of VC’s got their beak wet on this one, including All-In bestie Chamath Palihapitiya’s Social Capital.

    Wrap-Up

    Tim’s pitch is a clear winner. But it’s not so easy to recreate.

    He explains what he does and why customers want it with incredible clarity. But what will really make investors’ eyes pop out of their heads is that traction.

    Tim is great at pitching. But more importantly, he’s great at building a business.

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

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

    More on tech:

    DoorDash’s YC Demo Day Pitch

    GitLab’s YC Demo Day Pitch

    Meet My Latest Investment: Mobly

    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. 

  • DoorDash’s YC Demo Day Pitch

    DoorDash is one of the most successful startups of the last decade, with a market cap of $56 billion. This morning, I watched their YC Demo Day pitch from 2013.

    Founder Tony Xu shows us a huge problem and gives us strong evidence that he’s solving it. Let’s dig into his pitch…

    Big Potential

    Right away, Tony shows us a massive opportunity. People want food delivered, but the options are pizza…and more pizza.

    Hey, pizza’s great. But sometimes you want pad thai or eggplant parm.

    Every investor in the audience could relate to this problem. And if it’s a problem everyone has, solving it is a huge opportunity.

    That’s important because VC’s only make money if a company becomes a giant. That’s the only way to pay for all the failures!

    Rapid Growth

    Okay, Tony’s on to a huge market. But can he actually capture it?

    Tony has an innovative system that plugs directly into restaurants through an iPad. Then, he gets couriers through an app, just like Uber.

    Tony gives us strong evidence that DoorDash is catching on.

    Orders have quadrupled in the last 6 weeks, reaching nearly 100 a day. That’s a lot of business for an early stage company!

    If I were in that audience, I’d be thinking, “This guy could be on to something.”

    But What About Margins?

    Tony has less than 3 minutes here, so he can only give us so much detail. But one critical question is going to be on every investor’s mind: what are the margins like?

    DoorDash could sell you a $15 plate of pad thai for $20, then pay the driver $10. If they did that, they’d lose $5 on every order.

    Half the town would be signing up for cheap pad thai, right? So order numbers would go through the roof, just like you see on Tony’s slide.

    That would be a lot of fun for the people of Palo Alto. But it wouldn’t be a viable business.

    I’d want to know if they can make money on each order.

    Given the early stage, the business would probably still be burning cash due to fixed costs. But at least it would have a path to profitability in the future.

    We also have no information on revenue here — but again, there’s only 3 minutes.

    The Verdict

    I wouldn’t have all the info I need after this pitch. But I would know that meeting Tony is worth my time.

    I’m willing to bet investors swarmed him after this pitch, even if they still had a few questions.

    Tony frames a huge problem and gives us real evidence he’s solving it. If you can do that, raising money gets a lot easier!

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

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

    More on tech:

    GitLab’s YC Demo Day Pitch

    The Airbnb Deck

    Controlling A Computer With Your Brain

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    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.

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  • GitLab’s YC Demo Day Pitch

    Today, GitLab is valued at over $9 billion. But in 2015, it was a tiny startup with just a couple employees. Let’s dig into their YC Demo Day pitch.

    GitLab is a platform for software development. It lets developers collaborate, version control their code, and more.

    Who Ever Saw an Accelerator Startup Like This?

    Founder Sid Sijbrandij pitched investors that spring from a strong position. His year-old startup was already profitable and doing nearly $1 million a year in revenue.

    His customers slide is bonkers for an early stage startup. Just a year in, he has logos like Apple, Microsoft and GM. Best of all, these are paid plans.

    And no wonder! Sid explains that his product is 10x cheaper than competitors with way more features.

    I see tons of startups coming out of the top accelerators. But I’ve never once seen one like this.

    For a company still in YC to hit a nearly $1 million a year run rate is nuts. GitLab’s growth from January to March alone was 77% month over month, a staggering rate I almost never see.

    The Investor Perspective

    This shows you how easy investing can be sometimes. For anyone investing in early stage software startups in 2015, this would be an obvious bet.

    But the question is, can you get an allocation?

    For many venture funds, the answer was yes. Khosla Ventures led the $1.5 million seed round, but several other funds got a slice, including Tuesday Capital, Sound Ventures, and Liquid 2 Ventures.

    This makes me feel better about my odds of success investing. All I need to do is meet lots of founders and pick the assassins like Sid!

    What Founders Can Learn From Sid

    Sid’s pitch shows that there’s no substitute for strong business performance. He could’ve stood on that stage wearing a chicken suit, and people would’ve dumped barrels of cash on his head.

    He has a great product. He also has tons of deep pocketed customers, a profitable business and rapidly growing revenue.

    If you have all that, you don’t need much else.

    Wrap-Up

    Sid built an awesome business and pitched it well. He raised the cash he needed, got back to building, and created a major company.

    That’s the goal!

    I find it charming that Sid’s a little bit awkward, just like many founders today. And in ten years, some of the founders today will be where Sid is now.

    What do you think of the GitLab pitch? Leave a comment and let us know!

    Have a wonderful weekend, everyone!

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    More on tech:

    The Airbnb Deck

    Controlling A Computer With Your Brain

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    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!

  • Controlling A Computer With Your Brain

    “One of the first times y’all gave me complete control over this, I actually stayed up until, geez I don’t know, like 6 A.M. playing Civilization 6.”

    That’s Noland Arbaugh, the first human to get a brain implant from Neuralink. The implant allows him to control his computer with his mind.

    Noland demonstrated this incredible tool with Neuralink engineer Bliss Chapman yesterday, live on X.

    How Noland Became Neuralink’s First Patient

    Noland, age 29, had a diving accident about 8 years ago. The accident made him a quadriplegic.

    In January, he had surgery to implant a Neuralink brain to computer interface.

    The implant lets him direct the computer’s cursor wherever he wants. All he has to do is imagine the cursor going there, and it moves!

    Noland uses it to play chess, read, and even learn Japanese. すごいですね！

    A Repeatable Process?

    Implanting the Neuralink device requires surgery. Noland found the process to be smooth and brief:

    “The surgery was super easy. I literally was released from the hospital a day after.”

    Neuralink is not the only organization to create a brain to computer interface. A group of Stanford researchers did something similar in 2021, allowing a paralyzed man to type.

    If multiple groups can pull off a brain to computer interface, these things are really starting to work. We’re homing in on a repeatable process that can be used on more patients.

    Every year, about 12,500 people injure their spinal cords in the United States alone. I can’t even imagine what this must be like.

    Anything that can help these patients is a wonderful thing. Implants like Neuralink could make it easier for them to work, have fun and be a bigger part of society.

    The Neuralink in 2034

    What Neuralink has done today is amazing. But let’s imagine where this could be in ten years…

    Last week, we saw an incredible demo of the new Figure robot. What if we could give Noland a robotic suit that he could control with his brain implant?

    He could walk around, pick things up, and do a lot of what the rest of us take for granted.

    Some day, Neuralink implants could spread far beyond people with traumatic injuries. These implants could let the non-disabled control computers with our minds, just like Noland does.

    What’s more, the computers we’d be controlling are becoming more powerful by the day. In the future, we may dispatch autonomous AI agents using nothing but our brain.

    Let’s say you’re trying to create a new software product.

    We would no longer need to sit in a meeting with an engineer and a product manager. Instead, we would just think about what we want to build.

    Then, we’d dispatch the Engineer Agent to talk to the Product Agent, using nothing but our minds. They’d build something and present it to us.

    Wrap-Up

    I’m delighted to see Noland doing so well with his Neuralink!

    I look forward to a future where every disabled person has the same options Noland does. And in time, those of us without disabilities could also accomplish amazing things with nothing more than our brains.

    What do you think of Neuralink’s new implant? Leave a comment and let us know!

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    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.