Ethan Mollick

NFX is amazing. I love this pre-seed and seed funding team because they are the rare VC firm that provides innovative thought leadership in addition to financing. "NfX" stands for network effects, and they are particularly interested in partnering with startups and visionary teams that understand and center network effects in their products and services. The latest thought leadership article by NfX is titled "Why Great Bioplatforms Will Always Win." The key insight is that "a platform built on stellar IP and backed by a sharp business strategy is always “cool” because great platforms should make great assets. Full stop. It’s about balancing platform and asset development strategically. One should fuel the other and vice versa." You can find a link to the article in the comments. * the image below is from the NfX site

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Do not procrastinate. The title of this issue was born out of a conversation with Dan Brassington. Thanks, Dan! We, "startups," need to be "Catalysts" for a change! A startup is an entity that uses technologies to "streamline" the world's inefficiencies. But sometimes, this does not work, especially for Japanese-Traditional-Companies (JTCs). There are times when "efficiency" alone does not resonate with incumbents. They need a story that will move them. https://lnkd.in/gAAYe3Jj #efficiency #JTC #corporates #traditional #innovation #startup #startups #ikuohiraishi #ikuo

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Today, I was fortunate enough to participate in Professor Yasuhiro (Yasu) Yamakawa, Ph.D.'s webinar - Failure is Good! It was a two hour program that shortened the Babson College's first-year class. Throughout the webinar, as you can tell by the title, it was about "Failure is Guuuuuud, as long as you learn, build, and act again," which is straightforward but truly challenging to practice. I have to admit that I encountered Babson for the first time when I watched the famous "donut video" by Akio Toyoda a couple of years ago. https://lnkd.in/gAcYEMd8 Since then, I have been seeking a chance to learn from Professor, and today, it came true. So, thank you to those who worked hard to organize the webinar. However, the message I empathized with most from the session was not about the failure part (it does not mean that I disagree or something, besides, I felt I'm not taking risks enough to fail). It was the very beginning; "If you could solve ONE world problem, what would it be?" Interestingly, it's associated with the donut.

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It is great to see DARPA engaging broadly with startups and the private sector (as it always has) to discuss what technologies could be most critical to future national security. In such a conversation today ppl mentioned quantum computing, encryption and sensing, semiconductor design and manufacturing, new materials and chemistries, AI Safety and risk of AI aided bioterrorism and biological warfare, zero knowledge proofs, fully homomorphic encryption, US weapons and broader defense manufacturing capacity, hydrogen production technologies, and autonomous swarms.

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I think this is really great work. In a time where a shocking percentage of the entrepreneurs are incorrectly urged to "blitzscale" and/or seek outside funding, what is describe below is a noble and appropriate entrepreneurial path for most. It also would build a stronger economy and, in my mind, a more harmonious society due to less income inequality and economic fluctuations. So many benefits. And there is a good rough analogy for this model which has created enormous value and been the blast for their economy in Germany. Check out "Middelstand" in link below. Entrepreneurship is a mind set, skill set and way of operating that should not be confined to one journey. Every entrepreneurial journey is different and there are many different species and that is a good thing. That is how we teach it here and wonderful to see Benjamin Hallen and Ed Hallen contribution to this. This is important work. Well worth the read. Please keep it up Ben, Ed and the rest of the team!!! https://lnkd.in/ecu4KB6t Scott Maxwell Rob Ketterson Kirk Arnold Matt Marx Michael Cusumano Scott Stern Paul Cheek Tom Byers Marius Ursache Martin Trust Center for MIT Entrepreneurship Hayes Ferguson Samir Mayekar Michael Lenox David Baldwin David Pruner

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An interesting article from Gregory Geehan

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Interesting piece from Marc Andreessen on how startups are not getting the regulatory support they need to sustain America's technological leadership. "Regulatory agencies have been green lit to use brute force investigations, prosecutions, intimidation, and threats to hobble new industries, such as Blockchain. Regulatory agencies are being green lit in real time to do the same to Artificial Intelligence." While many investors themselves (both in the US and Europe) are worried how AI will change our lives, our jobs and social interactions, the top VC opinion leader thinks regulation is already too restrictive. #techstartups #techleadership #strategicgrowth

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Reflecting on the enriching discussions at the recent PEWIN - Private Equity Women Investor Network CIO Roundtable in Boston. It was a joy to hear from panelists Letitia Johnson (Amherst College), Deb Shufrin (Colby College), Abigail Wattley (Williams College), and moderator Sarah Samuels, CFA, CAIA (NEPC, LLC). Some of my key takeaways: From the CIO perspective, alignment with the board is paramount. Portfolios experience ebbs and flows, emphasizing the necessity of a board committed to long-term strategies. Data underscores the repercussions of misalignment—allocators often undermine value by prematurely exiting positions for liquidity needs or reacting impulsively to market fluctuations. Across the board, CIOs prioritize firms that can articulate their competitive edge, foster sustainable organizations with top-tier talent, culture, and succession planning, and demonstrate agility in evolving markets. A robust LP base providing long-term support and institutional guidance is also crucial. Success isn't about funding billionaires—it's about supporting determined individuals committed to sustained success. Privates demand more than short-term commitment—they require a relentless desire to succeed over time. For a deeper dive into the role of CIO, I highly recommend The Counting House by Gary Sernovitz. #CIOInsights #PEWINRoundtable #InvestmentStrategies

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“Venture distribution cycles have elongated to the point that LPs now risk a decade of negative cash-flow on many of their VC relationships. That's not sustainable for institutions with large spend requirements, such as a university endowment.” A lack of liquidity in VC is proving to be a major issue for some endowments. There are plenty of medium sized endowments who went full in on the Yale model, but have a lot more concentration risk due to size. That’s a tough game to play when you have required outflows. https://lnkd.in/ewkhEDSi

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Somehow I’m on the university #innovation circuit! Recently at Princeton University, Dartmouth College and last week at NYU Stern School of Business. Love spending time with students. I always share these three lessons on how to break into #VC: 1️⃣- Write a Thought Piece 2️⃣- Host a Meetup 3️⃣- Share companies exciting you These are good proxies for the venture capital job (writing Investment Proposals, Ecosystem Building & Sourcing). Amazing: of dozens I talk to interested in VC, maybe 1 or 2 will actually do these 3 things! #venturecapital

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I see so many deals where the founder(s) are obsessed with valuation. A high valuation is not the end all be all. Our early rounds at DealCloud had muted valuations and in the end all investors (and us founders) were happy with the outcome. This quick read from SaaStr goes through some pros and cons of taking a VC round (applies to all rounds) at a high valuation: https://lnkd.in/e_6NxQbx

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I’ve heard consistently positive feedback on these summits from both LPs and GPs. If you’re in New York this week see the details below from Kevin McCaffrey and Private Markets Insider

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Lots of PE groups profess to port-co's the importance of solidifying a differentiated strategy. But also important to eat your own cooking. What is your FIRM's differentiated strategy? And how differentiated is it? Enjoyed the discussion with Nick Bradley on The Scale Up Podcast! #PrivateEquity #Talent

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Just published the latest edition of our monthly #VentureBytes report. The two lead articles spotlight pressing issues in light of the surge in #generativeAI adoption: AI’s memory wall problem and the environmental cost of data centers, respectively. While the issues are pressing, they offer compelling investment opportunities in startups that are addressing these challenges. As always, chockful of ideas are packed in this report. Do read it and lets continue our lively engagement. #sustainability #TechTrends #ArtificialIntelligence #FutureOfAI #AIInnovation #DataCenterEfficiency #EnergyEfficiency #GreenTech #TechDisruptors #SustainableTech #AIRevolution #CleanTech #TechSolutions #EmergingTech #AI #DataCenters #mvp

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Not usually into sponsored podcasts, but this episode of Yale professor Laurie Santos podcast about AI in education actually has some great ideas & examples of how to get educators more engaged in AI integration to support their work and careers. Hope others get some ideas / inspiration from it too … https://lnkd.in/eYWWvCM2

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PE ownership of large education sector platforms: Good or bad? It is my view that the core "intent" of those providing capital is critical to the platforms they fund. Education and workforce are large and growing ecosystem and will continue needing capital. For profit funds vs not for profit donors...at present choices are very limited for founders who want to provide solutions in the ever changing education and workforce landscapes. I wonder how Laureate is doing https://lnkd.in/gfZU_vxK? Anyone has any inputs?

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Here's a piece from Fortune (behind a paywall) on the use of secondary transactions by VC firms. Mark Suster from Upfront Ventures notes the secondary market is emerging as a critical tool for VC's, and that VC's might need to emulate their PE peers in the use of GP-led transactions. I agree this will become more common, and in some ways, VC use of secondary transactions is a more natural fit. VC funds don’t need to maintain controlling interest, so selling partial stakes is easier. Conversely, it’s also easier for a VC firm to buy a minority stake. If exits remain muted, the need for a secondary solution will undoubtedly increase. Venture capital firms often hold anti-dilution rights during fundraises, yet many dated funds lack the capital to exercise those rights. Worse, in some situations, ‘pay to play’ rounds can threaten to zero out investments made in funds without additional investment capital. Secondary transactions offer a viable solution, allowing firms to manage their portfolios effectively, harvest value and mitigate risk. The issue has always been pricing. Secondary funds have always had much more comfort with the valuation methodology (rooted in financial performance) of private equity portfolio companies, than the valuation 'art' of venture capital. Perhaps more VC funds entering as buyers or partnering with secondary funds is the answer? #VentureCapital #SecondaryMarkets #InvestmentStrategy #Liquidity #PrivateEquity #GPLedSecondary https://lnkd.in/gM3bzTdv

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Interesting insights here... This research sheds light on the pivotal role that founder personalities play in shaping the trajectory of ventures. It underscores the importance of introspection and self-awareness for entrepreneurs as they navigate the complex landscape of building a business. For investors, these insights offer valuable guidance in assessing potential investments and understanding the human element behind the pitches. #Startups #Entrepreneurship #Investing