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Nikolai Yakovenko
DeepNewz -- realtime news powered by AI. iOS app coming soon! @deepnewzcom AI News @deepnftvaluebot NFT pricing
Jiu jitsu enthusiast
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I’ve worked for a few companies now from start-up through IPO and beyond. Here’s five lessons I’ve carried with me as an investor. None of them show up in a spreadsheet.
1. Culture is a company’s second product: Companies have two products - The one they sell to their customers and the one they sell to their employees. I have worked at companies who are deliberate about culture, and companies that aren’t - Companies that are as intentional about their culture as they are about their products are very appealing to be as an investor. This doesn’t mean they build playgrounds for their employees. Amazon, for example, is very deliberate about their culture. It’s not for everyone, but it works. Danaher is another famous example
2. No company has the “right” to a second act: Building a successful single-product business is difficult. Becoming a multi-product business is staggeringly complex. You need to keep the core business scaling in order to fund the second act. Your customers don’t owe you success in your new area. Cultural tension runs high between employees in the new, hot venture and the “old” company. Also, it’s so damn hard the second act needs to be bigger than the first act to really be worth it.
3. Execution beats strategy: Anyone can craft an elegant strategy. A track record of successful execution is what matters. Everyone who becomes CEO of a company can talk a big game. They can all tell a compelling story on why they will win. Give me dogged execution over beautifully-designed strategy every time.
4. I like the “odds” on Founders-led businesses: At some point your company is going to hit a crisis. You will have to “bet the business” to come out on the other side. This takes conviction, both from management and from employees. I’ve seen founders do it and I’ve seen professional managers do it. Again, give me the founder every time.
5. Avoid companies suffering from indigestion: David Packard once famously said “More businesses die from indigestion than starvation.” A company can only do 2-3 things really well at one time. Avoid companies trying to do too many things. They will fail
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advertising is a far more “aligned”business model than many others. it has been vilified for years for no good reason
user-minutes-maxxing addiction slop would exist with or without it. Netflix ceo (with subscription pricing only) on record saying “we’re competing with sleep”
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