Dan Baird

Related to my last post, these are the 4 main categories I think cities looking to attract/retain founders should focus on. If you're in econ dev in a city, hit me up if you want to talk about any of this in more detail. 1. Customers - make it easy for founders to connect with potential sources of revenue. Chambers of commerce can come in handy here, but you'll need someone dedicated to this particular activity full time. 2. Capital - develop a vibrant angel community and engage local/regional CDCs & CDFIs - tap into local university resources, and take advantage of government and philanthropic grants. Create an investing arm for the city if it doesn't already have one, which will eventually be part of a basic income program (more on that in another post). VCs will come later. 3. Shared Services - develop a shared services platform for back-office admin (e.g. https://startupok.org) to give founders heavily discounted access to these services, with as many of them being provided locally as possible. This should be a non-profit. 4. Place - build/expand a walkable live/work/play part of town where people actually want to live (e.g. Ponce City Market in Atlanta, Main St in Greenville, Arts District in Tulsa). Bonus points, build/expand socially acceptable mass transit BEFORE you actually need it because if you do all this, you will sooner than anyone expects.

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Lemme vent for a second about how value of this platform is dimishing thanks to: - #recycled #content - #propoganda and #bots - retirees using this platform as a substitute for Facebook - #Utah tech bros bearing their religious testimonials (I lived in Utah off/on for nearly 30 years and this does not get any less cringe) Folks are sharing the same videos from Telegram and news articles (even those written by AI). Some of y’all are even paying to promote your posts (yes, looking at you Skydio.) That’s real SMFH vibes. Anyway - the next few weeks are going to be massive for the #West and related #industrialbase for #drones: - we just had Anduril Industries and PDW win #MRR (I would have loved to have seen Edge Autonomy and Quantum Systems on there but I digress) - #SRR announce is IMMINENT - between Skydio and Teal Drones (Utah LFG!) - this is one of the largest contracts and programs of record in our industry. It would be nice to see both companies awarded, tbh, as it really helps the industrial base and more so, creates a massive black eye for the loser. I’m long #RCAT btw and would love to see these jobs brought to my hometown of #SLC. - #BlueUAS Refresh applicants get notified this week if their solutions were accepted for the first round of vetting. Curious to see who makes it and who doesn’t. - lots of #FPV stuff coming out of the woodwork, I’ve got eyes on #Europe 👀 - #SkydioAscend24 will unveil the #dock for X10 - it’s better than the predecessor, but larger and more expensive. Plus, lots of #software features like better #autonomy. (tbh, I’m always stoked on what Charles Wood and his crew are doing - the guy has had me eating my words like cereal on a few occasions about their products and despite the posts I relish being wrong and coming to a different conclusion - whether re: drones or something else). Word on the street is that they’re raising $$, again. (Quick take: if Skydio loses SRR, I believe the company will double-down on #DFR to alleviate any #investor concerns.) - Zipline (presumably) taking the wraps off of their P2 #dronedelivery platform. Keenan Wyrobek you’ve got everyone’s attention, as per usual. Photo of my dog, because Churro is cute and real (TRL-9) - unlike the render of that prototype product that needs multiple revisions and won’t be available for months.

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r/PropTech, 2018 someone asked: "Anything new and interesting in prop tech lately?" Didn't get much of a response. I think I can help answer... If I was going to answer this in 2018, I'd say we were seeing a lot of exciting things around residential fintech. Our residential fintech investments have been premised on the fact that there's these inherent inefficiencies, these archaic and anachronistic processes, around buying and selling real estate in the U.S. and all of the ancillary financial products you have to buy. This was of course affected by rising rates and lessened home affordability. I actually think now more than ever is an exciting time in proptech, because difficult times for the real estate industry (and it's been very, very difficult over the past few years) have totally opened up the industry to seeing the value in adopting technology. This adverse environment has totally thrust this imperative to become innovative (which is something the real estate industry has historically not been good at) front and center onto the real estate industry. I think that attitude shift is going to make for a really exciting time, and it's going to lead to some amazing new companies being born, doing everything from the proptech classic of "digitizing pen-and-paper processes to make them more efficient" to building entirely new real estate businesses on the backs of data and technology -- much like we saw Lineage do with cold storage and logistics. #proptech

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AI founders raising hundreds of millions are getting hired while their old co's technology gets licensed.   Why is this happening?  I’ll explain. Lina Khan is the reason why we are seeing AI founders get hired without their actual companies getting bought out. “Two and a half years into Khan’s tenure, the FTC has lost every single merger challenge it has brought through litigation across both federal and administrative court without even a single win in litigation in cases as varied as Microsoft’s acquisition of Activision Blizzard, Meta’s acquisition of Within, and Illumina’s acquisition of Grail, to name just a few.” -Yale Insights https://lnkd.in/g-vXJHNk That’s why the recent elimination of the Chevron doctrine by the Supreme Court is great news for founders and start-up employees.   The Chevron doctrine meant deference to federal agencies in interpreting ambiguous language.   It gave wide latitude to attention seeking officials like Khan to pursue frivolous antitrust cases.  The cancer that is Khan is slower growing but still exists. Under Khan’s tenure, startups have a  perverse incentive structure where the options are: -Get acquired early before the company grows to avoid the attention of a an FTC commissioner who just wants to be on TV -Gamble that the company can survive a latter stage acquisition process without additional legal costs from BS antitrust lawsuits draining cash reserves -Wait for an IPO in an environment where Stripe isn’t even initiating an IPO If Khan remains in control of the FTC.   Expect to see more AI startups choose to de-risk with this new get hired and license technology workaround. Non-AI companies face greater challenges in structure. But they have the benefit of not being trendy which means less attention from FTC folks that want to be on TV. One possibility I’m imagining is a long-term rev share agreement with IP and asset transfer rights unless some high target profit extraction number is hit within a short duration.  This effectively becomes an acquisition without an acquisition. Any ideas for other structures for acquisitions that are technically not acquisitions? #startups #tech #ai #artificialintelligence #amazon #adept #mergersandacquisitions

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Case Study: How Joanna Galvao Automated Her Lead Generation Joanna Galvao, co-founder of GIF Design Studios, built an automated system that allowed her to take a 4-month maternity leave while her business thrived. By defining ideal clients, leveraging word-of-mouth referrals, and automating sales pipelines, she ensured a steady stream of high-quality leads. Simple re-engagement emails led to 6 booked sales calls per week, converting 6 new clients during her absence. Joanna's approach shows how automating lead generation, sales, and client engagement can grow your business—even without you in the driver’s seat. Read the full case study. https://lnkd.in/eN7HkuXp

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I’ve spent 15 years building three big data, and AI, companies and this distills *all the lessons I learned - find demand, solve a problem, then build - far better than I ever could. If you have business idea - #ai to #saas - and want to actually do it *this is the process. It’ll save your sanity, time and vastly increase your chances of success.

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Do you know how many hyper-growth public software companies are growing by over 40% this year? According to the latest June Guggenheim report… Zero. Not a single public SaaS company is growing over 40%. Do you know how many are growing their next twelve months (NTM) revenue over 30%? Also, zero! With that context, I was strategizing with my team on the most impactful ways companies can change their growth trajectory, and one thing we landed on solving immediately was time to integrate. If a company growing at 30% can pull in all net new integrations and thus revenue by just 1 month over the course of the year, it can increase its growth rate by almost 5%. For simplicity, assuming a $100M annual revenue, a 10% discount rate, and a 5-year valuation period, using a DCF, the company’s present value would not be 5% more valuable, but closer to 20% more valuable for all shareholders. The power of compounded growth rates. Game changer, and with just the smallest adjustments. That’s why smart companies are investing heavily in new customer onboarding and no-code, low-code technologies, like lightweight agents, hosted or embedded UIs, and more. The Socure team is ahead of the curve—ask our people about what we’re building and how we can help you accelerate your revenue growth.

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a YC founder I'm looking to invest in just mentioned he was raising at $15mm valuation cap This is less than what I'm seeing from other YC companies ($20mm is median), and I asked how he settled on that his answer? vc funds need certain level of ownership he said he doesn't want to raise much (just $1.5mm) in the round, and funds want to own at least 10%, ideally more. therefore, since he doesn't want to raise much, he has to drop his valuation to get them to the ownership target makes sense but also, if you HAVE to sell 10% of your company, you might as well get an extra $500k ($2mm on $20mm valuation) I respect founders who want to stay disciplined, and I realize this just starts the VC treadmill even higher but still ... what do you think?

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As an economist, I obsess (probably a little too much) about profit, cash flow, and IRR. It's one thing to see gains in paper valuations, but those are just a proxy. Sure investors will vary in their preferences for liquidity, duration etc. but in the end they all require the same thing -- realized returns. There are a ton of companies in limbo right now where they can't quite exit nor are they in a position to generate a dividend. For investors, this is a tough spot to be in, and even more so when it's a systemic trend affecting their whole portfolio rather than a one-off.

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Mike Maples, Jr is one of the most successful startup investors in history. He's worked with more early-stage startups than almost anyone alive, and with his fund, Floodgate, helped pioneer seed-stage investing as a category. He's been on the Forbes Midas List eight times and has made early bets on transformative companies like Twitter, Lyft, Twitch, and Okta. In his new book (coming out this Tuesday!), Pattern Breakers: Why Some Start-Ups Change the Future, he shares the three common elements he's uncovered that separate startups (and founders) that break through and change the world from those that don’t. This research is rooted in his decades of notes, decks, and founder relationships, and is unlike anything I've seen elsewhere. In our conversation, Mike shares: 🔸 The three elements of breakthrough startup ideas 🔸 The importance of founder disagreeableness 🔸 Why you need to both *think* and *act* differently 🔸 How to avoid the “comparison trap” and “conformity trap” 🔸 How to apply pattern-breaking principles within large companies 🔸 Mike’s one piece of advice for founders 🔸 Much more Listen now 👇 - YouTube: https://lnkd.in/gPjw8RXk - Spotify: https://lnkd.in/gAUbgGxz - Apple: https://lnkd.in/g6t367uY Some key takeaways: 1. Get out of the present: Instead of just thinking about solving current problems, you need to immerse yourself in the future. Look for emerging trends, technologies, or shifts in behavior that suggest where the world is heading. Great innovations often stem from individuals who immerse themselves deeply in a niche or cutting-edge area. 2. Great startup ideas share three elements: a. Inflections: External shifts that create potential for radical change in how people think, feel, and behave. b. Insights: A unique understanding of how to harness these inflections and enable a future that the company believes in. c. Founder-future fit: An alignment between the founders and the future they envision, including their skills, motivations, and network. 3. Three things that successful founders do differently: a. Movements: A movement aligns early believers around a higher purpose, leveraging their emotional commitment rather than just pragmatic benefits. b. Storytelling: Frame your startup’s story as a hero’s journey. Position yourself not as the hero but as the guide (like Obi-Wan Kenobi) who invites customers (the heroes) to embark on a transformative journey toward a better future. Tailor your narrative to resonate with different stakeholders—investors, customers, employees—by emphasizing how they can achieve their aspirations through your vision. c. Disagreeableness: Founders who challenge the status quo often appear disagreeable because they defy conventional norms. They drive change by questioning existing patterns and persuading others to embrace new ways of thinking and acting.

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From documentaries to selling his first SaaS company - here’s how he did it. Jordan started DropFunnels out of frustration.  He was promoting a new documentary–and it became a full-time job. He learned:  ↳ Launching a small business is hard.  ↳ It takes 5 different software tools  ↳ Those tools don’t work well together He decided to streamline the process with 1 platform: DropFunnels Jordan’s strategy? Sell the product before building it. Here’s what he did: 1/ Launched a Facebook group of founders with similar problems  2/ Gave that community free sales funnel templates  3/ Got feedback from users in real-time  4/ Recruited developers from the group  5/ Sold DropFunnels to his community (at a locked rate for life)  6/ Used that profit to build out the company COVID struck, everyone was selling things online and DropFunnels snowballed. Jordan’s business was thriving, but he was itching to build the next thing—so he decided to pursue an acquisition with us. After a competitive process, we found the right buyer who had a plan to keep the company growing without Jordan needing to stick around. Now, Jordan is building Revatto, a tool that’s already reducing churn by 50-70% for his clients & growing 70-90% month-over-month. Jordan’s new goal? A 9-figure exit for Revatto.  Our new goal? Help him achieve that exit. Thanks again for trusting our team Jordan Mederich – cannot wait to see what you build 💪

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I hear it often from big companies: “We have unique data we can use to build proprietary models.” Well, everyone believes their kindergartner is the smartest in the class too. It’s probably not true. Your data isn’t going to save you. There are plenty of ways big companies can win with AI, but data usually isn’t it. Check out the piece I wrote for InnoLead in the link below.

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❌ Every founder I work with has had a "great call" with a VC that goes something like this... 👨‍💻 Founder: "The call was great! They're super interested!" 😅 Me: "That's awesome, what are next steps?" 🤔 Founder: "Uhm, not sure they just said they'd get back to me soon..." This isn’t the right way to go about it. ALWAYS make sure to ask investors questions during your call to gauge their interest. Below, I’ve listed some questions I suggest founders use to drive CLEAR next steps. 🎯 Based on our conversation today, how interested would you say you are in considering an investment in our startup? 🎯 Could you share your level of interest in our company on a scale from 1 to 10? What would help to make it a 10? 🎯 What does your typical due diligence process look like? What's the timeline? 🎯 Are there immediate steps we can take that would help you in making a decision regarding investment? 🎯 As we move forward, who else within your team or organization should we connect with to discuss this opportunity further? 🎯 What further details would you need from us to fully understand our business model and the opportunity it presents? A good rule of thumb: pay close attention to body language throughout the conversation. Pause when you see eyebrows raised, head nodding, or other signs of engagement, and use these moments to check in. Frequent check-ins keep everyone engaged. Now go get that paper!! 💸 #fundraising #startupsuccess #startupjourney

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Regardless of how you feel about any of the politics of the folks involved, this is a fascinating and interesting read that quickly devolved into airing of corporate dirty laundry, first between John Carmack and Andrew Bozworth, and then between Andrew Bozworth and Palmer Luckey. I don't shed any tears for Palmer's departure, but the process behind it is interesting to analyze. I can say having worked with John that he doesn't ever bring personal politics or personal beliefs into work. He doesn't discuss them. When he's at work, he's focused on work, and expected everyone else to be also. Our personal politics may not have aligned but we share an enduring love for the medium of games, the nascent technology of VR, and the potential of a future metaverse. As for this conversation on Twitter? I can imagine that there were PR folks trying to drag Andrew Bozworth's social media credentials away from him. Something like, "stop posting to Twitter dammit, you're just digging the grave deeper." This is like watching a mixed doubles tennis match. ----- UploadVR: "Palmer Luckey & John Carmack Argue With Meta CTO Over Luckey's Firing" (Ian hamilton) (April 15, 2024) “On Saturday I was out at a soccer field in Manhattan watching my kid play, relaxing like many of us do on the weekend, when I saw that former Oculus CTO John Carmack wrote “I regret not doing more to support and defend Palmer Luckey at Facebook. We were in different states and divisions, and I was largely out of the political loop, but when I became aware of the situation I should have made a clear and open statement of opposition to the witch hunt.” Twitter: John Carmack: https://lnkd.in/gYfU98Xr IanHamilton: https://lnkd.in/g7nmRXzU JohnCarmack: https://lnkd.in/gr58AWAM IanHamilton: https://lnkd.in/g_ai_ciJ JohnCarmack: https://lnkd.in/gfyG7ygG AndrewBozworth: https://lnkd.in/ghFvenWD AndrewBozworth: https://lnkd.in/gn_MqkmE JohnCarmack: https://lnkd.in/gs8d-RVi AndrewBozworth: https://lnkd.in/geUCd-5W Blair Renaud: https://lnkd.in/gPviA5Bc AndrewBozworth: https://lnkd.in/ggWCehvQ UploadVR: https://lnkd.in/gzqczb4A PalmerLuckey: https://lnkd.in/gkqaKVuN AndrewBozworth: https://lnkd.in/gG3xnj9W PalmerLuckey: https://lnkd.in/g5n2Eh95 AndrewBosworth: https://lnkd.in/gnDC2myH PalmerLuckey: https://lnkd.in/gH_aVtSY AndrewBozworth: https://lnkd.in/gd3RqKgZ AmandaWatson: https://lnkd.in/gx6bq95w #socialmedia #xr #twitterbeef #flamewar #twitter

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Make sure that you're hitting up the VC's for the right amount or else they are going to decline and laugh at you. If VC A is an A round focused firm, asking for $250k isn't going to fly. If VC B is a pre-seed round and you're asking for $10k, they aren't going to take you seriously. If VC C is a seed round firm, they aren't going to take you seriously if you're only offering 5% equity. Know the rules before you play the game!

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Your email intro to a VC is your first opportunity to prove that you can sell. After you get a warm intro to the VC (not necessary at Convoi, but helpful), the emails that impress me most are formatted something like this: ________ Hi Trent, [One genuine thing you know about Convoi/myself/one of our port cos. Bonus points if you can make me laugh/smile/impress me with your wit here. Often easier if the person intro'ing tees it up well.] Here's the problem we're going after and the size market we're going after (and it's always more interesting when it's not just a random $100b TAM number) and what we're building in 1 - 2 sentences. We're currently at xxxk ARR and growing x% m/m. This is one other thing that's really interesting about us. Here's the link to our deck. Would love to find a time to chat. I'm happy to suggest some times to chat, or if easier, please feel free to loop in your EA or send a calendar link. Here's mine in case that's easier. __________ Feedback?

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I had a 30-minute meeting with Daniel Saks, co-founder and CEO of Landbase.com. He discussed their Agentic AI product for Sales and marketing, specifically the GTM-1 Omni solution. He also touched on the opportunities available for AI and ML engineers. This conversation likely gave insight into how their AI technology transforms go-to-market strategies and the growing demand for talent in AI and machine learning fields. Daniel Saks discusses the evolution of Landbase’s Agentic AI, its applications in sales and marketing, and the challenges faced in leveraging AI for lead generation. Highlights 🌍 Daniel Saks shares his entrepreneurial journey from a family furniture business to co-founding AppDirect and Landbase. 🤖 Landbase utilizes Agentic AI to intelligently automate go-to-market strategies for businesses. 📈 The Agentic AI market is predicted to be five times larger than the current SaaS market in the next 10-15 years. 🔍 Landbase offers insights through a Digital Trust Score, helping businesses improve their credibility. 📊 Their AI model has been trained on extensive data, optimizing lead generation and conversion strategies. 📚 Landbase provides a suite of products including outbound, nurture, and inbound solutions for effective lead management. 💪 The importance of assembling a skilled team and the challenges of data scarcity in AI development were highlighted. Key Insights 🌟 Transformative Potential of Agentic AI: Agentic AI represents a significant shift in how businesses approach lead generation, enabling them to automate and optimize strategies effectively. This could redefine market dynamics. 📊 Market Growth Prediction: The potential growth of the Agentic AI market suggests that startups can disrupt traditional software markets by offering innovative solutions. This emphasizes the need for adaptive business models. 🔑 Importance of Credibility: The Digital Trust Score reveals that a strong digital presence and credibility are crucial for successful marketing campaigns. This insight underlines the significance of brand reputation in lead generation. 💡Data-Driven Decision Making: The success of Landbase’s AI model relies on extensive data training, highlighting the necessity of having quality data for effective AI applications in businesses. 🛠️ AI Product Suite: Landbase’s offerings—outbound, nurture, and inbound solutions—illustrate a comprehensive approach to lead management, catering to various stages of the sales funnel. 🌍 Global Talent Scarcity: The challenges in finding skilled talent for AI development indicate a competitive landscape, suggesting that companies should invest in talent development and training. 🚀 Entrepreneurial Spirit: Saks encourages aspiring entrepreneurs to leverage the current era of technological advancement, emphasizing that great companies can emerge from anywhere with the right vision and conviction. #landbase #agenticai #ai #GTM #danielsaks #srinivasanramanujam

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Tiny SPV Could Turn into a $3M+ Carry Check This week Zachary Ginsburg (via Last Money In) shared some insight on a tiny & challenging SPV he put together a few years back that has the potential for a massive return. The Background Story… One of the first startups I (Zach) ever put together an SPV for, back in 2020, was just valued at over $300M in a growth financing. We invested in the Company when they were valued at $10M and they were NOT a hot company at all. In fact, they had to reduce their round valuation cap just to get their Seed financing done. This is the message I got from their founder during their fundraise. “Given the current macro environment, we’ve decided to lower our cap to $10m. Can you let us know within 48 hours if you can get to that 100k investment?” We also struggled to put together an SPV for the company. I really liked the team and saw the speed and uniqueness of what they were building, but unfortunately LPs weren’t too interested due to lack of clear product fit and lack of co-investor signaling most likely. After a lot of effort, we ultimately managed to scrape together a small $80,000 investment. I constantly ask myself whether it's worth it to spend the time and headache for an $80k investment. We have put together now dozens of candidly agonizing small SPVs over the years that I’m always questioning the effort of. Small SPVs are almost always the biggest challenge and a large source of stress - it feels like you have to beg LPs to participate, not to mention there’s a large opportunity cost of that effort and stress. But SPVs like this one are giving me hope that small SPV efforts can actually pay off. *Link to full post in comments. -- Powered by Sydecar, Last Money In is the most actionable Venture Capital newsletter with 50k subscribers. Written by Zachary Ginsburg and Alex Pattis, the global syndicate leaders with 800+ VC SPVs closed.

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