Tremendous

An angel investor's take on life and business

  • Inside Information

    If you trade on inside information in the public markets, you go to prison. If you don’t have inside info in the private markets, you’re not doing your job.

    Private tech startups release little or no information to the public. Everything is confidential between the founder and investors.

    But some investors have more information than others. Let’s see how that played out with a startup I’m investing in now…

    Meeting Newco

    I first saw Newco* at a demo day in New York about a year ago. It was a cool concept, but they didn’t have much traction.

    When I saw the company again that summer, I was still skeptical. They had some early customers, but the product hadn’t really caught on.

    Fast forward to last fall. I get an email from Mike*, the GP of a venture fund in Silicon Valley….

    He told me he’d invested in Newco. He’d also been working with the founder, Aaron*, all summer.

    “Aaron is amazing,” he said. “He works incredibly hard and really understands his customers.”

    “Awesome!” I responded. “Keep me posted!”

    “And Now, It’s….Time!”

    Last month, I saw Newco again at another demo day. Clearly, Aaron had been busy.

    The company had 4x-ed its revenue in the last year. Aaron had launched a seed round, and it was filling up quick.

    It was time to make a decision.

    I met with Aaron and dug into the deck and deal memo, like other investors did. But for many of them, that may have been the only time they saw Newco.

    I had watched Aaron build for the last year. People were also feeding me details on the company that most investors didn’t have.

    I had an informational advantage. And in a market that runs on inside information, that’s a huge edge.

    Impressed with Aaron’s persistence and the company’s rapid growth, I decided to invest.

    Building an Informational Edge

    Having this informational edge is very new to me. I started angel investing less than 3 years ago, and on Day 1, I didn’t know anyone.

    I’d worked in tech for many years, but I was deep inside large companies. Startups were foreign territory.

    For the last 3 years, I’ve been building a network of founders and investors. We share deals, leads on key employees, and general market observations.

    This network means that when I look at a deal, I know a lot more than I did 3 years ago. At the same time, someone who’s been investing for 10 years has a lot more info than me.

    If you’re in the market long enough, meet people, and treat them decently, your network will grow. That network will give you information and access to great deals.

    Wrap-Up

    When I see a deal, I want to know more about that company than any other investor.

    If I meet the founder once, I know a little. If I meet them many times, watch them work, and gather intel from my network, I know a lot more.

    Still, most of my bets won’t pan out. But I’ll be giving myself the best possible shot.

    How do you get an edge over competitors? Leave a comment and let us know!

    *The company and people in this story are composites and do not exist. I do this to preserve privacy.

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

    More on tech:

    Common Startups That Don’t Work

    Use the Product!

    Seed Valuations Hit All-Time High in 2023

    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. 

  • Use the Product!

    I found myself in the kitchen last night, cracking an egg into a frying pan. This wasn’t a normal dinner — this was research.

    Decks and deal memos are great. But to really understand what a startup does, you have to use the product.

    So when I had the chance to invest in a cooking app recently, it was time to close the laptop and grab the frying pan.

    “It’s Time to Cook”

    As the egg began to sizzle in the hot oil, I turned the heat from medium high to medium low as the app instructed. This was new to me — I’d always just left it on medium the whole time.

    Wouldn’t this heat be too low? I looked at the pan skeptically…

    In a few minutes, the white began to turn opaque, just like the instructions said.

    “Would ya look at that!” I said to myself. The yolk was still a little jiggly, just the way I wanted.

    I slid it out of the pan onto the mixed green salad I’d prepared. The moment of truth: time to take a bite.

    “Wow, this is delicious.”

    They were right. This was the best fried egg I’d ever had.

    Does It Do What It Says?

    When I made fried eggs on my own, the bottom always burned. Having the heat high at first and then turning it down seemed strange, but it proved a critical step.

    This product claims to teach you how to be a better cook. I’ve been cooking for myself for 10 years, but on the first try with a very simple recipe, I was already better!

    The app did what it said it would do. And if I’m impressed, I’m pretty sure other people will be too.

    When You Can’t Use the Product

    Sometimes, using the product isn’t feasible. This tends to be the case with SaaS apps, which aren’t designed for a casual user to play with.

    But that’s okay, I have a way of trying those too!

    I ask the founder to demo the product and I try to imagine that I’m the customer. Do I find this useful? Does it look nice?

    If so, it might be time to make a bet.

    Wrap-Up

    Using the product seems like a simple trick. But as Jason Calacanis notes in his book Angel, many investors don’t do it.

    If there’s an easy way to be better than other people, I’m all for it.

    It’s also just a lot of fun playing with these products! I feel like a kid again using the internet for the first time — “Wow, isn’t this cool!”

    In the case of the cooking app, I still have a little more research to do. But they passed one of my most important tests with flying colors.

    How much do investors focus on your product? Leave a comment and let us know!

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

    More on tech:

    Common Startups That Don’t Work

    Your Next House Will Be Built By Robots

    Seed Stage Funding Falls to New Low

    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. 

  • Coffee With Class at Angelina Paris

    When I have meetings in New York, I know where I’m going: Angelina Paris. Angelina has existed in France for over a century. It has only one sit-down location in the United States — and this is it.

    I plopped into a soft chair at a sleek marble table. A tuxedoed waiter came by, ready to take our order.

    “I’ll have a latte and the tarte au citron,” I said.

    I tried to pronounce the latter item Frenchly in order to seem cool. Then I realized, I was talking to an actual French guy. Uh oh.

    The founder I was meeting arrived and slid in across from me, ordering a large coffee. “I love this place,” he exclaimed.

    And who wouldn’t? Midtown Manhattan is noisy and chaotic, but Angelina is serene.

    As he explained what his company is doing, I leaned into his laptop, intrigued. The quiet atmosphere makes it easy to focus on what matters: the conversation you came to have.

    Ahh, my coffee! The latte was rich, foamy and smooth.

    Tarte time! I delved into the delicate creation, sliding through smooth custard and hitting crisp, buttery crust that shattered under my fork.

    A good tarte au citron has a balance: rich, sweet, and sour all at once, and not too much of any of those. Angelina’s is perfect.

    The chocolate items are also not to be missed.

    I dearly love the trocadero — a little cake with a crisp layer of icing, chocolate cake, and gooey mousse inside. Actually, it’s not all that little.

    And we cannot forget la piece de la resistance: the hot chocolate.

    Above all, Angelina is known for hot chocolate. It comes in a little jug that they pour into your cup. Alongside: a generous mound of whipped cream.

    It’s the best one I’ve ever had.

    If you come to Angelina, it’s good to understand how the seating works.

    There are high tables just past the counter — those are great if you’re just having coffee.

    Further back, there’s a maitre d stand and a larger seating area. This is for if you want to have desserts too or a full meal.

    Angelina is just off Bryant Park at 1050 Sixth Avenue. It’s open 7 days a week — you can find the hours here.

    I usually haven’t needed a reservation, but at weekend brunch, you may want to make one.

    Let’s be honest: New York can be a little much. The honking, the hollering, oof!

    But go inside Angelina, and you’re greeted by nice people who want to make your time there lots of fun. Everything you eat or drink is special, carefully made, and delicious.

    What are your favorite spots in NYC? Leave a comment and let us know!

    There will be no blog on Monday for Presidents’ Day. See you on Tuesday.

    Have a great weekend, everyone!

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

    More on food:

    Diving into Steak and Sides at Del Frisco’s

    The Fragrant Curries of Karma Kafe

    In Porto

    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!

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

  • Your Next House Will Be Built By Robots

    A cute little robot trundles up to the construction site, carrying the next set of bricks. On goes a thick layer of mortar that looks kind of like icing. Slowly but surely, the wall rises a little higher.

    This is the new brick laying robot from a startup called Monumental. Based in Amsterdam, Monumental could change the construction industry in a big way.

    From a new report in Fortune:

    Monumental’s robots use AI technology pioneered for self-driving cars and a new generation of inexpensive robotic parts to create robots that can work on almost any new building site and at a cost that is comparable to human bricklayers.


    Like the Netherlands, the United States is facing a huge shortage of construction workers. 89% of US construction firms are struggling to hire, according to Workyard Research.

    Believe it or not, Monumental doesn’t undercut humans on price. Construction companies are happy to pay up — human workers are hard to find!

    Robots taking jobs humans don’t want is a trend we’re seeing more and more. Whether it’s burger flipping or latte foaming, machines are doing it because you can’t find a human who will.

    In America, parents want their kids to go to college. They don’t want them laying brick, and they certainly don’t want them flipping burgers.

    Those are honorable professions that add something great to society. But for most people, they’re not aspirational.

    People in other countries would love to come here and do those jobs. But all too often, we won’t let them.

    So what does that leave? It’s robots or nothing.

    I don’t see this as a problem. We’ve been getting rid of jobs since the steam engine and there’s more jobs now than there ever were.

    Automating construction could also help reduce housing costs.

    Today, the bricklaying robot runs about as fast as a skilled human. What if in the future, it ran 10 times as fast?

    And what if we also had robots to dig the foundation, rig up plumbing, and the like? We could build houses at a cost so low we can barely imagine it.

    A major component of today’s high cost of living goes “poof”.

    Progress is good, and Monumental is progress. Maybe someday, they’ll build my house!

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

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

    More on tech:

    Is This the End of Manual Labor?

    Welcome to the First Robot Restaurant

    Seed Stage Funding Falls to New Low

    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!

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

  • Seed Stage Funding Falls to New Low

    If you’re having trouble raising money, it’s not just you. Angel, pre-seed, and seed funding in January fell to the lowest level since before ZIRP, according to a new Crunchbase report.

    Those earliest rounds totaled just $2.1 billion in January. This funding slowdown happened even as total venture funding actually increased from December.

    What I’m Seeing at Seed Now

    I’m seeing deals take a long time to close these days. What might have been sown up in a few weeks is dragging out for several months.

    Most investors seem cautious.

    They’re more likely to find flaws these days. In 2021, all most people could see were dollar signs.

    That said, great companies are still getting funded. It just takes more traction and a lower valuation.

    I’m seeing many seed stage companies with over $1 million in revenue growing fast. They would’ve easily raised a Series A in 2021, if not a B.

    For me, it’s a great opportunity!

    When Does It End?

    Venture capital is a lot like recycling. You give a company money, they grow, and hopefully one day they IPO.

    Then you get a big bag of cash. You recycle that back into more startups.

    “And on it goes, this thing of ours.”

    Paulie Gualtieri

    But no bags have been coming through lately. We had a couple IPO’s last year, but nothing close to enough.

    Once some of the big names like Stripe or Reddit go public, it’ll be a different ballgame.

    Investors will start seeing dollar signs again. And they’ll have mountains of cash to put into new startups.

    Wrap-Up

    Building these companies is never easy. And right now, it’s a lot harder than it normally is.

    Customers are cutting budgets. VC’s are standing pat.

    In the end, the only thing you can control is you. Just keep building your business the best way you know how.

    Sooner or later, the market will figure itself out.

    What are you seeing at the early stage these days? Leave a comment and let us know!

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

    More on tech:

    How Skeptical is Too Skeptical?

    Common Startups That Don’t Work

    Seed Valuations Hit All-Time High in 2023

    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!

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

  • How Skeptical is Too Skeptical?

    “I have to be a little bit skeptical, or I’d invest in everything. But it’s also my job to ask myself ‘What if it works?’.”

    If you invest in startups, you have to hit a delicate balance.

    You can’t give everyone a check . And yet, you have to believe that some of these little companies will make it.

    So lately I’ve been struggling with this question: how much skepticism is too much?

    I Wanna Get Cynical, Cynical

    I dug into this problem with a friend Saturday night.

    We’re in different industries, but we agreed on one thing: when we don’t take time off, we get cynical.

    The longer I go without a day off, the more every company starts to sound the same. Instead of seeing the good points, I tend to see the flaws.

    For her working in law, unrelenting work gets her snapping at underlings and not being who she’d like to be.

    “In 2021, I took only five days off,” I explained. “Eventually, one startup ran into the next and I didn’t even know what I was looking at anymore. That’s when I decided that I needed to give myself PTO days.”

    My Boss Is a Jerk…I Work for Myself.

    These days, I budget a very generous 20 days per year plus holidays— up from zero.

    I used some last year to visit Porto, Portugal.

    I wandered around, looked at cool buildings, ate like a prince and read the Elon Musk biography. I did meet one founder — I can’t help myself! 🙂

    I came home refreshed and ready to attack. That’s the mode I want to be in.

    We Think We’re Rational, But…

    As angels and VC’s, we’re surrounded by the new.

    It’s super fun! You see all the coolest stuff before most people know about it.

    But digesting mountains of new information every day wears your brain out. It needs a rest.

    When I’m worn out, I view startups differently. “That’s such a crowded market, no thanks,” I mutter to myself as I read a slide deck.

    Had I just come back from vacation, I might’ve said, “Look at that product velocity! I’m in!”

    We humans like to think we’re purely rational — especially in tech. But we’re not.

    We get tired. We get cranky. And it effects everything we do.

    Wrap-Up

    Any early stage deal you see will have 100 problems. Minimal revenue, tons of competitors, an unclear sales strategy.

    If you want to find flaws, you certainly can.

    But as Don Valentine supposedly said, “We are in the business of making investments. We are not in the business of not making investments.”

    So I’m making time off part of my strategy. A few well-timed breaks per year can help me stay fresh, ready to see what’s awesome in your company.

    Now, when can I find time for one with all these meetings…

    How do you balance skepticism and enthusiasm? Leave a comment and let us know!

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

    More on tech:

    Common Startups That Don’t Work

    Seed Valuations Hit All-Time High in 2023

    The Mechanics of Investing in a Startup

    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!

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

  • Hedge Fund ‘Returns’ Mostly Swallowed by Fees

    These hedge fund fees are getting ridiculous. Some are taking almost 60% of investment gains, according to a new Bloomberg report.

    These days, a handful of large multistrategy funds dominate the hedge fund industry. Investors are falling all over themselves trying to write bigger and bigger checks into the same funds.

    This means they can charge whatever they want in expenses. Those fees are reducing returns to very low levels.

    Some funds are passing through 100% of their expenses to investors. Those funds returned just 6% after fees last year.

    Six percent?! I could get 5.5% in a bank account!

    Why should I give my money to a hedge fund that might lose it when I could get practically the same return, guaranteed with FDIC insurance, and the fee is 0?

    Big hedge funds are operating like government contractors: cost plus. They pass all the costs on to you. This means they have every incentive to make those costs as high as possible.

    Steaks all around! After all, we’ll never see a bill…

    It all comes down to what Gordon Gekko said in one of my favorite movies, Wall Street:

    “You are all being royally screwed over by these bureaucrats with their steak lunches, their hunting and fishing trips, their corporate jets and golden parachutes!”

    Gordon Gekko

    Funds should go back to the traditional 2 and 20 model. That’s already high enough! Limits on the costs they can pass through give managers a reason to keep them under control.

    Otherwise, investors may just take their money elsewhere.

    What do you think of hedge fund fees? Leave a comment and let us know!

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

    More on markets:

    Why Can’t Ken Griffin Beat the S&P 500?

    Is Adam Neumann Buying WeWork?

    Tiger Venture Chief Out in Management Shakeup

    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. 

  • Diving into Steak and Sides at Del Frisco’s

    On the crisp linen tablecloth sat a thick, leatherbound menu. I cracked it open. This was going to be an incredible meal.

    This is Del Frisco’s Double Eagle Steakhouse in NYC.

    The light streamed through tall windows as we made our selections. Hmm…so many choices…

    Oooh, bread!

    I dug my claws into a massive tray of rolls sopping with butter, taking an immodest portion. Hopefully no one else wanted any.

    No matter how fine the fare, why is bread always one of the most exciting moments in a meal?

    I made a little polite conversation, but my mind was on only one thing: my octopus.

    The tentacles rested on a bed of fragrant chimichurri sauce. Shaved almonds added a nice crunch, contrasting with the texture of the octopus.

    Delicious.

    I used to think I hated octopus. I had only ever had it raw. Long story — lots of time in Japan.

    But last year, I found out I actually love it, so long as it’s cooked. Del Frisco’s serves it lightly grilled, a great preparation.

    Next came the sides…

    Waiters started laying in front of us steaming dishes of all the steak house classics: creamed spinach, mashed potatoes, asparagus and more. My eyes locked onto the creamed spinach, ma cherie amour.

    I began to think of it as my creamed spinach. Surely no one loves it as much as I?

    Needless to say, my portion was healthy.

    And never forget la piece de la resistance, the steak.

    Not my steak, but a beautiful steak. I ate mine before I could get a picture. 🙂

    I ordered an 8 oz filet, medium rare. The peppery crust on the outside perfectly complemented a tender interior — lovely.

    I stuffed my face with mashed potatoes, spinach, and more bread. Life doesn’t get much better than this.

    “Dessert?”

    Uh, of course! Who do you think you’re dealing with?

    I ordered the chocolate mousse cake. The fellow next to me went with butter cake — intriguing.

    Our desserts came out, beautifully decorated. I sunk my fork into the chocolate mousse. It felt like plunging my hand into a snow bank — smooth, soft, yielding.

    The creamy mousse with a hint of cocoa bitterness was just right.

    My dining companion seemed overjoyed with his butter cake. I’ll have to get that next time!

    Del Frisco’s is located on Sixth Avenue in Midtown Manhattan. Finding the entrance is a bit tricky — it’s actually just around the corner on 49th Street.

    Del Frisco’s also has other locations in major cities across the country. Stop in for a great steak — and don’t forget the spinach!

    What’s your favorite steakhouse? Leave a comment and let us know!

    Have a wonderful weekend everyone!

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

    More on food:

    In Porto

    Korean Noodle Heaven at Food Gallery 32

    In Search of the Perfect Jersey Slice

    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!

  • Seed Valuations Hit All-Time High in 2023

    So much for the down market. Seed valuations reached an all-time high in 2023, according to a new report from Pitchbook.

    Median pre-money valuations hit $12 million last year. This was higher even than the peak of the 2021 bubble, when they sat around $8 million.

    For seed valuations, there has been no downturn at all. Prices have kept rising every year since 2020 with no end in sight.

    Why Is Seed Hotter Than Ever?

    The late stage market is a mess and venture funding overall has fallen by well over 50%. So why is seed stage doing so well?

    Many multistage funds got burned badly with late stage investments. But they’re still sitting on giant piles of cash to deploy.

    They also have younger staff eager to write some checks. So they give them a little money and say “Go play at seed.”

    Pre-seed and seed are also the most insulated from public markets. Although the Magnificent 7 are crushing it, tech as a whole isn’t.

    The NASDAQ remains below the market peak. And many tech stocks are still down 75% or more.

    Many managers want to stay as far away from that carnage as they possibly can.

    What I’m Seeing Right Now

    Here’s what I’m seeing today in the market…

    Deal volume is up from last year, a welcome change.

    Through much of 2022, so few deals were actually closing that it was hard to invest in as many companies as I’d like to. I did just 7 deals last year, compared to a typical pace of 10-12.

    However, the quality of those deals was very high.

    Companies are doing more with less. The down market makes founders wary of spending money, and AI means they can hire fewer people while actually getting more done.

    When a company does make it to seed these days, it often has a ton of revenue.

    In 2021, I saw seed deals get done with little or no revenue all the time. These days, I’m investing in seed and even pre-seed deals that routinely have $1-2 million in revenue.

    Those companies would’ve easily gotten a Series A in 2021, maybe even a B. Today, they close a healthy seed round, but no more.

    For me, this is an incredible opportunity!

    Who wouldn’t want to invest with more traction at the same price? A company with $2 million ARR is a much less risky bet than one with $60,000.

    Wrap-Up

    Markets are ripping now and the IPO window may come unstuck by mid-year. If that happens, I expect to see more money pour into venture, pushing those seed valuations even higher.

    I want to keep loading up on these amazing, de-risked early stage startups as long as I can. Make hay while the sun shines!

    What are you seeing at the early stage right now? Leave a comment and let us know!

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

    More on tech:

    Common Startups That Don’t Work

    Is Adam Neumann Buying WeWork?

    The Mechanics of Investing in a Startup

    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!

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

  • Common Startups That Don’t Work

    I look at around 2,000 startups a year. Certain ideas pop up over and over — and keep failing.

    Today, I thought I’d break down a few common startup ideas I see, and why they tend to go wrong.

    1) Geolocation – “An app to find your friends and hang out” is everyone’s first startup idea.

    You see where your friends are on a map. Turns out Jim is around the corner from you — let’s hang out!

    The problem is that nobody wants this. Most people don’t want others knowing where they are all the time, even friends.

    What’s more, if I want to hang out with Jim, I can just text him! I don’t need your app.

    2) Event tech – Platforms to find local events are everywhere. The problem is, the biggest winner, Eventbrite, is worth less than $1B.

    This is a small and crowded market. It’s hard to create a unicorn here.

    There are some unique spins on event tech. But most of the platforms are Eventbrite with a different name, and there’s just no reason for anyone to try them.

    3) Dating apps.

    Just about every conceivable variation on a dating app has been tried. There are apps for Christians, apps for group dates, and apps for short guys.

    Hardly any of them ever catch on.

    You need a critical mass of people to get a dating app going. And if everyone’s already meeting people on Hinge or Tinder, who needs a new app?

    The revenue model is usually ad supported with some paid users. The lifetime value of each customer is so low that you can’t afford paid ads.

    This means you have to go viral — easier said than done.

    I sense enormous dissatisfaction with dating apps. But all in all, the existing ones seem to be serving people well enough.

    It’s kind of like McDonald’s. Everyone says they hate it, but they sell a billion hamburgers a day.

    Wrap-Up

    In the end, startupland is like Hollywood: nobody knows anything.

    You could build a geolocation app, pitch it to me, and I could pass. It could go on to become a $100 billion company, and I’m left crying in my cold brew, wondering how I missed it.

    If you have a unique spin on one of these areas, and you can honestly say your experience is 10x better than the competition, go for it! And if it starts to catch on, save a slice for Francis, won’t you?

    What are some common startup ideas you see? Leave a comment and let us know!

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