Doug Safreno

𝗔𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆-𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗳𝗼𝘂𝗻𝗱𝗲𝗿𝘀! We're conducting a benchmarking study to define success metrics specifically for vertical software companies. 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿𝘀: Existing SaaS benchmarks just don't cut it for your unique industry needs. This research will provide the data-driven insights to measure and optimize your vertical software business. 𝗖𝗮𝗻 𝗬𝗼𝘂 𝗛𝗲𝗹𝗽? A few minutes of your time can make a big difference.

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At most networking events… Business owners shake hands, exchange business cards, and go home. HumanX has a different approach. You’ll be paired together in 1:1 conversations with investors & AI startups. You’re not just adding people to your rolodex. Deals will be made.

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A few spots left for this awesome workshop with Justin Gray of In Revenue Capital. Every successful founder I know learns to develop and maintain high performing relationships. This is a skill like anything else and can be developed. Founders, if you want to build a high-growth company, learn to build high-performing relationships. This workshop will help you do that. Hope you can join us.

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Building early stage startup momentum? Make sure your speed-to-help is measured in minutes. In today’s environment, you can’t wait days for help. You have to get unstuck fast. With timely advice, execution quickens. Thats the power of a safe-space community that’s built on ‘giving’. It’s our foundational value. You should give what we are building a try.  Zero risk.   DM me to learn more. We’re happy to tee up a call. Happy Wednesday, ya’ll. ———— Please consider ♻️ with founders in your network. As early stage founders, we at times, are a problem away from sinking or propelling forward.

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Talk to Buildstash and Robbie Cargill if you want to manage your game or app binaries.

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As YC Demo Day approaches, I had the privilege of speaking with some founders from the current cohort and hearing about the numerous VC meetings they are attending. This brought to mind a piece of advice from YC that has always resonated deeply with me: "Raising the most money is not the metric of success. Building a great company is." Venture capital can be thought of as debt with the upside of equity. If it looks like debt (investors get repaid first through liquidation preference) and acts like debt (restrictive covenants on operations), it likely is debt. Moreover, if your liquidation preference is greater than 1, you effectively have an implied interest rate on that debt. For companies that have raised substantial venture capital, particularly during 2021 and early 2022, the following statements are likely true: - The company is no longer under the founders' control. - The company's valuation is upside-down, leaving founders with little incentive to stay. Venture capital often encourages companies to spend unsustainably, pushing them to grow rapidly or face failure. The assumption is that fast growth will enable further fundraising, but this is not the current reality if your last valuation was high compared to today's standards. In the summer of 2022, YC warned that a VC "winter" was coming, and it persists today. If a company boasts about its greatness based solely on the amount of money it has raised, it is wise to be cautious.

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One of my favorite advantages of Y Combinator is that thousands of YC veterans have specific advice for you. Sometimes, that advice isn't public. But this essay is one of the best, and anyone can read it. Paul Graham's "Do Things That Don't Scale" describes a common thread between almost every successful company. Here are a few of his examples: Recruiting - "You can't wait for users to come to you. You have to go out and get them." He describes Stripe (one of the most successful YC companies ever) not waiting to onboard users who wanted to sign up in the early days. If they agreed, one of the Collison brothers (the founders) would simply use their laptop to sign them up on the spot. Instead of being shy and lazy about it, they were bold. Initial fragility - "Almost all startups are initially fragile. Founders ... unconsciously judge larval startups by the standards of established ones." It's fine if reporters and juggernauts dismiss your startup, but dangerous if you start to dismiss or doubt your own. Delight your users - "Your first users should feel that signing up with you was one of the best choices they ever made." Wufoo (one of the early YC startups) sent each new user a hand-written thank you note. This is one of many ways you can delight them - try to make them TOO happy. Experience - "The feedback you get from engaging directly with your earliest users will be the best you ever get." Laser focus on an "insanely great" attention to users. He explains that the product doesn't have to be insanely great at the beginning, but the user's experience does. That means over-engaging, which is fine. It promotes a tight feedback loop. Fire - A narrow focus is critical. "It's like keeping a fire contained at first to get it really hot before adding more logs." Startups who build things for themselves ("I was so sick of experiencing X, so I created Y solution") will do this without even thinking about it. Manual - "There's a more extreme variant where you don't just use your software, but are your software." Essentially, do things manually that you would automate later. A feature doesn't have to be code complete if you can get away with it at the beginning. There are more in the article - I highly recommend reading it. But my main takeaway is the most successful companies didn't automate and scale every single action from Day One. In PG's words, "startups take off because the founders make them take off. There may be a handful that just grew by themselves, but usually it takes some sort of push to get them going." That usually means manually doing things that don't scale.

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where’s OpenAI ‘s sama? oh look. he’s in elon’s shadow. makes sense. he’s shorter. Lol. the island of cannibals that is silicon valley has a new co-chair as mayor of sf. unelected. uninfluential in washington. has weasled his way into a transition team for sf. I wonder is watching elon w trump he found his trump locally in sf. sama is a mirror. he was for pg. he was also for many others. including elon. I guess this is a way to perhaps shore up political points locally in sf. to protect himself as best as he can. washington is a country wide, global game. kinda reminds me of another rebranding. im just jenny from the block. https://lnkd.in/e_jNXXRD if ai companies are to flourish OpenAI Google Microsoft Amazon Apple will require that startups are not somehow impeded. this is a game of davids and goliaths. where the slingshot appears innocuous. that is llms, transformers, access to privileged data. this out of no-where announcement demonstrates that this is a defense tactic by sama. he speaks fondly of sf and has done nothing until now. so his disingenuous nature finds yet another loop hole to worm into. we would be more supportive of his efforts except he’s created an industry for himself through a con game approach. why is he ceo of OpenAI when he’s there 6-7 hours a week. forgive me. isn’t a ceo supposed to be singularly focussed. his game is getting funding that invests in companies that he’s already invested in and as it’s a non for profit there are no conflicts of interest applied. wow. he uses other peoples money to invest in what he’s already invested in. sounds like y combinator showed him how to play the sv players. the next trick will be to do something no one has ever done. take a multi-billy non for profit and flip to for profit. as a non for profit there is no reporting required. there are tax incentives. a moral narrative to spin. then. oooops. how do we monetize this. we believe he will not succeed. to do so would cannibalize capitalism as it’s structured. it also would create a new pathway for universities which are by definition research centres. creating this precedent would alter their business. given that elon has beef with sama. and elon has never been more on top of his game. well. we find local political maneuvering is a way of squirming. OpenAI investors chiefly Microsoft are about to be thrown under the bus. unwittingly. recall it’s the talent at OpenAI that makes it special. the a team has left. the b team is in place. 2025 will not be good for OpenAI elon will have his revenge. 44 millys invested. for what. for sama to throw his weight around. he’s a lightweight. just look at him. lol. source: https://lnkd.in/e9WtQ48k < . >

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It's been 10 days since I started working alongside Gabe Naviasky to build the GTM approach for Leadbeam. (The guy is a legend - give him a follow!) Earlier this week, I caught up with the other co-founders Soham Tikekar and Kennan Murphy-Sierra too - they walked me through the vision, the roadmap, and gave me a glimpse of what they've been cooking up (some super cool updates coming soon). Also been chatting with some sales leaders in the space this week, and their feedback is a testament to what the team is building. When Gabe and I talked about outbound and getting the brand out there, one thing I insisted on was getting us on Dimmo 🦖. Big fan of what Sarah Brazier and Troy Munson are building. LeadBeam is now on Dimmo - https://lnkd.in/gSXeSfX2 If you manage a field sales team, you definitely want to check us out and safe to say we're here to change the CRM adoption game for Field Sales teams :) . #leadbeam #fieldsales #outsidesales #salesforce #hubspot

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Well-written and sourced article describing what's going in seed-stage venture market. At 9point8 Collective we tend to orbit the seed-stage (both ideating and developing companies to reach seed and helping post-seed companies refactor and scale in anticipation of A) and for many companies it's a critical inflection point which determines their long term success or failure. The main takeaways I was able to gather: 1️⃣ Many startups that raised seed rounds in 2021-2022 are struggling to secure Series A funding due to tighter market conditions and increased investor expectations. 2️⃣ Seed investors are becoming more cautious, leading to longer diligence processes and a preference for startups with strong traction or experienced founders. As a result, valuations have stayed relatively high even as deal flow reduces. 3️⃣ Startups are adopting various strategies to navigate this challenging environment, including cutting costs, raising bridge rounds or convertible notes, and M&A/acqui-hires. 4️⃣ Despite the challenges, there are opportunities for both startups and investors in this new landscape, particularly for those who can adapt to the changing market conditions. Investors are accumulating dry powder -- and with rates on the decline -- will be looking to deploy into companies with stronger fundamentals than their 2021-2022 counterparts.

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Breaking down our latest newsletter section by section, starting with our expanded focus in Deep Tech: --- We have built expertise in the robotics sector, and will continue to double (and triple) down on investing in this category, but we have been increasingly finding that robotics is naturally steering us into two exploding adjacent areas: Aerospace, and Advanced Manufacturing (which we define as industrials, semiconductors, materials science, and energy production). Stepping back, this expansion makes perfect sense. Robotics is an inherently horizontal platform - meaning it can be applied productively across multiple industries. This quality, paired with the fact that robotics has long shown the highest TRLs of any deep tech technology, makes it a kind of “gateway” to other sectors in the hard sciences. Now with the recent breakthroughs in AI for robotics, growing semiconductor demand, and the resurgence of aerospace and defense tech, we are seeing a dramatic uptake of robotics and relevant technologies in both advanced manufacturing and aerospace. As an added bonus of the expansion, many of the founder (and funder) networks across these landscapes have natural overlaps and linkages. For AlleyCorp Deep Tech this means that we can be extremely helpful, knowledgeable, and engaged across all three sectors right away, and continue to be the best-in-class investing team across these categories.  --- More in our newsletter: https://lnkd.in/ewiTuYq6

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Interesting post from Vanta's CEO recently. I’m one of those founders she talks about and I’ll happily give them the plug for helping us get our initial SOC 2 report in motion at a reasonable cost. Vanta makes every part of that initial process easier. The first SOC 2 audit you do is exactly that: an audit. An external firm evaluates you over the course of three months to see whether you firmly follow the policies you’ve put in place. If you’re small enough, a detailed founder or two can make sure you color within the lines during that time period. But what a lot of people don’t realize is that it’s not just about getting compliant. It’s about **staying** compliant. Vanta helps here, too, but in a much more limited capacity. The longer term process can look one of two ways:  1️⃣ Build and document repeatable processes (ideally automations and workflows) that ensure your policies are adhered to and create an audit trail.  2️⃣ Do not do that. Build janky homegrown workflows. Spend lots of time scrambling and chasing down information. Be very, very sad come audit time. Oh, what do you know, this looks like the perfect place for a YeshID mention. That’s because YeshID is the peanut-butter to Vanta (or Drata or Secureframe)’s jelly. Our workflows replace spreadsheets, Jira tickets, and Zaps with automated, documented, and consistent processes. So if you’re up there in the second group, let’s talk.

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This is an interesting article from SaaStr sharing data from ICONIQ Capital about revenue per employee. “These are useful yardsticks for folks scaling: At less than $25m ARR, actually SaaS start-ups aren’t any more efficient than in 2017-2019, at $130,000 per employee / FTE. Although that’s still more efficient than the Boom Times. At $25m-$100m ARR, SaaS scale-ups are about 25% more efficient than they used to be, at $172,000 in revenue per employee / FTE. Time to get real at $25m ARR, apparently 😉 And at $100m+ ARR, they are 20% more efficient then they used to be, at $249,000 in revenue per employee. On the path to the $300k+ we see in public SaaS leaders.” At Worksmith in October, our annualized revenue per employee was $238K. https://lnkd.in/gqkkpjEW

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One of my proudest moments as an investor occurred today as Alaffia Health announced its series A because it shows how the Aperture® Venture Capital vision of multi-level, multi-generational #impactinvesting is succeeding in the marketplace. Here’s the model in its most basic form : ✅As diverse fund managers with meaningful capital to allocate, we are changing the VC landscape every day just by doing our day jobs. ✅As Black/Brown investors with ~40 years experience collectively, Aperture GPs have access to talent /excellence that others do not, so our portfolio *organically* is more inclusive by race, gender and geography even while optimizing for financial outcomes (all about the alpha). ✅Our most successful portco’s are using financial #innovation to solve market problems that impact underrepresented demographics and underserved communities. Alaffia Health is a shining example of the impact portion of our overall fund thesis, and we couldn’t be prouder of TJ Ademiluyi and Adun Akanni, MPH, PMP - the dynamic brother-sister founder duo whose vision we have steadfastly supported on their journey. Congratulations to TJ and Adun from William Crowder and myself, as well as the whole Aperture team- Marjorie King Philip McKenzie Yves Louis-Jacques Tanvi Lal Michelle Dhansinghani Lisha Bell Katie Kelly Amy Chung Cindy Chong, CFA Brian Fernandes-Halloran Monroe France Jayden Pantel Darren Herman Evan Wladis Neal Triplett Thomas Scriven Peter Ammon Irina Bit-Babik Tim Milanich Rob Rahbari

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Many assumed that the industry would be well on its way to AGI or superintelligence before AI model builders’ efforts to take advantage of scaling laws might hit a wall. Recent headlines are chipping away at that assumption. One question I've been getting in my inbox: is this the era of diminishing returns for AI? We don't think so. Even if an avalanche of new clusters and synthetic data fail to deliver significantly better model performance, there are good reasons to believe that AI is still going to become orders of magnitude more powerful in the coming years — powering a new generation of startups and ultimately productivity growth and positive benefits for mankind. In fact, with agents and reasoning just beginning to scale and thousands of industry-specific models coming online, it's about to get really exciting. Read our latest blog post on the topic: https://lnkd.in/gFhniNX8

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Last week, Zach and I headed to Seattle for 2 days of our executive offsite. The goal? To set our vision for 2025. We focused on: → Solidifying our vision, → And allocating resources across our 3 product lines. We answered critical questions like → How can we get our customers to find even more value? → How can we be the rising tide that lifts all boats for our target industries - moving & insurance → How and when can we scale Yembo beyond our first two verticals I think this was our most productive offsite yet! Looking forward to executing on these priorities in 2025 - making ideas into code and into customer life improvements!

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A lot of pre-product, pre revenue startup clients approach Calibrate to architect, design, and develop their first web or mobile app. One common theme we see among many of these ambitious co-founders is trying to launch with a larger feature set based on what they THINK their users will find valuable. In scenarios such as this, our team always advises our clients to consider pairing back the feature set to an MVP (minimum viable product). We start this process by asking our clients “what are the critical features absolutely necessary to launch your product and start getting valuable feedback from the user base?”. Anything beyond that is speculation and unnecessary. In the startup world (or even with software SMBs are launching), it’s imperative to get to market as quickly and cost effectively as possible to start establishing a POC (proof of concept) and collecting feedback; MVPs ensure that happens. Through collecting real user feedback, clients can prioritize and execute on their roadmap (aka new features) with FACTS (aka data driven insights) v. CONJECTURE (aka speculating on what users want). Check out the blog article on our site for some tips to help narrow down the feature set of a product to an MVP: https://lnkd.in/gHTeynVb

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Today, I’m incredibly proud to announce a major milestone for PayZen: we’ve just closed a $232 million Series B round in equity and debt, led by New Enterprise Associates (NEA). This round includes $32 million in equity and a new $200 million credit warehouse from Viola Credit and a syndicate of insurance companies. I’m thrilled to welcome Mohamad Makhzoumi, NEA’s Co-CEO, as a PayZen board member! Partnering with the right investor at each stage of our company’s growth is both an art and a science (with a bit of luck thrown in). We were fortunate to find strong alignment with the NEA team in terms of business philosophy, mission, market, and strategy. With their extensive experience and stellar track record, I look forward to collaborating with the NEA team as we guide PayZen into the future. This funding will enable us to continue leveraging our AI-powered platform to tackle healthcare affordability. Our proprietary AI/ML models and seamless EMR/EHR integration simplify patient payments for health systems while making it easier for millions of patients to access and afford the care they need. We’re committed to driving innovation in the Revenue Cycle Management market and are excited to expand our affordable, customized healthcare payment options to even more Americans. This partnership with NEA brings back memories. Twenty-five years ago, I fondly recall pitching Webex Communications to NEA alongside my then CEO and mentor, Subrah. That investment certainly worked out for everyone! Time seems to fly, but it’s comforting to know that some things remain constant. I want to thank all the investors and individuals that supported us along the way (Viola Ventures, Omry Ben David, SignalFire, Chris Scoggins, 7wireVentures, Lee Shapiro, Alyssa Jaffee, Ido Vigdor). Mostly, I want to thank my team for raising the bar every day, creating magic and making all of this possible. #healthcare, #fintech, #affordability, #RCM,

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Great essay by Omar El-Ayat and Nic Poulos. If you are a domain expert founder building vertical software, I highly recommend checking out Euclid Ventures as a first-check/ preseed investor.

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