And hello from DC this week where I’m on a two week staycation between tour stops (read: I’m trying to catch up on email).
While in Port Huron, MI last week, I met the Hulabed team and replaced my mattress with one of theirs. You should too, seriously.
As the 2016 tour starts to wind down, I’m starting to think about the 2017 edition. What do you think I ought to be doing?
Reminder: I’m giving away a free DJI Phantom 4. Seriously. Enter here to win (it takes less than 10 seconds, I checked).
As I’ve been touring around the country, one of the common arguments for not raising money is so that founders don’t feel so rushed to build a large company. The data, however, suggests that growing fast is the only way to survive regardless of whether you raise money.
The bottom line on the Uber-Didi deal is that Uber’s still going to own 20% of new combined entity. They’re still going to “win” the Chinese market, they just don’t have to do the actual work anymore.
Repeat after me: unit economics matter.
I’m absolutely convinced that encouraging angels (and angel groups) to do a quarterly markup/markdown of their portfolio would result in better returns. Someone ought to build a free spreadsheet, I’d share it.
Yes. So much yes. This is the #1 reason why you should never do anything in “stealth mode.”
When I speak to angel investors along the tour, I always ask them one rhetorical question: where do you believe venture returns come from?
My answer: the default state of every company is failure and the only people that can turn that around are on the founding team.
Compounding growth is sexy… but not many people realize it.
As a founder, your goal isn’t to build a better widget from the outset. It’s to sell a widget better than the incumbents.
If I could impart one piece of advice to all the mentors and investors I’ve met along the tour this year, it would be this: sometimes the best thing you can do for the founders in your community is to tell them to stop trying to raise money.
In business, you should kill off anything that isn’t working within 30 days. Including fundraising.
You can get the full stream of the things I read, it’s all on Twitter — follow me: @paulsingh. Sometimes I write stuff too. You can always find me (and the rest of the Results Junkies community) in Slack, apply to join.
Have a great weekend!