Khozema Shipchandler

I have to wonder if the CDN government would ever look out for customers in this way. The rewards programs of the four largest US air carriers are being probed by the US government as it seeks to understand how consumers “are impacted by the devaluation of earned rewards, hidden or dynamic pricing, extra fees and reduced competition and choice.” The probe would be the first extensive government look at the programs that have expanded to produce billions of dollars for airlines annually—in some cases adding more revenue than flight operations. Federal regulators could demand changes that might disrupt these profit centers for both carriers and credit-card issuers, and remove a travel option highly valued by consumers.

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An incredible deep dive from Nathan M. into the cultural and structural issues that are plaguing Boeing and how they got to where they are today. This article should be turned into a business school case study it's that good. And many of these issues aren't unique to Boeing. The focus on financial engineering over actual engineering is an issue at play in many scaled aerospace and defense companies. A definite must-read! https://lnkd.in/gkdpF2tM

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Some more insight into what we are building at Aerodome 📈🚀

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We're launching the inaugural edition of Beyond Benchmarks, a deep dive into the metrics and trends observed across the early-stage enterprise cloud market. This is the first look at some of the business data around GenAI in SaaS. Some initial observations: 1) 60% of SaaS companies have already integrated GenAI into their offerings (60% of these as part of their current product and 40% as a new product), and an additional 20% are planning to do so this year. Almost half aren't monetizing these features. Those that are are primarily experimenting with both usage-based and flat fee pricing models. 2) Most companies are utilizing OpenAI as their primary LLM, but many are experimenting with multiple models - and we are noticing an early trend towards intelligently routing GenAI inference requests to different models based on cost, performance, and security. 3) Though we are in the initial innings of GenAI, we are seeing some positive signals - companies that implemented GenAI had 7% higher NDR than those that did not. Still early days, but we'll be doing this benchmarking report regularly to track and share how things progress in this new era. Link to report in comments.

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Want to know what metrics venture capitalists really care about? Aumni's latest analysis dives into 10,000+ data points from portfolio companies at all stages. Here's what we uncovered: 1️⃣ Revenue, net burn rate, FT headcount, and gross margin are the hottest metrics. 2️⃣ Most VCs request 6-9 specific metrics per quarter from each portfolio company. 3️⃣ Cash is king in the early stages but loses its throne as companies grow. 4️⃣ Operational metrics dominate at Series D+, taking up half of the top ten. Key insights: - Cash-on-hand and cash runway plummet in importance from a combined ranking of 3.5 in the seed stage to barely making the top ten by Series D+. - Metrics spotlighting operational efficiency, like gross margin, total OpEx, EBIT, bookings, and debt balance, become crucial as startups scale. PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

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Alex Dichter provided a great overview at the Thayer Ventures Annual Meeting recently about how the industry has evolved over the past 24 years. See below. In 1999, $1B- was made by Delta Air Lines 4% - was the net profit margin in the airline industry 14 - was the average yield per mile for a paid ticket $20M - was the amount one client paid Digitas North America for a CRM 20% - of travelers were willing to spend extra for add-ons 59% - of Americans worried about Y2K $80 - was the average lodging daily rate 184 - was the number of Hyatt hotels in the world In 2023, $5B - was made by Delta Air Lines 3% - was the net profit margin in the airline industry 20 - was the average yield per passenger $0 - is the amount Delta Air Lines paid for personalization directly 53% - of travelers willing to splurge for better experiences 54% - concerned about climate change $155 - is the average daily rate 1376 - was the number of Hyatt hotels in the world Highlighting that: The #airline business is tough and always will be, and the #hotel business is better. Travelers are voting with their feet - they want to transact online and serve themselves and the companies need to get out of their own way to make it easier to do so. Most of the technology to solve the problems in these industries already exist and have been here for years. It's always about people in this industry. #LegendsTravel #ZeroPartyData #TravelDNA #LegendsTravelDNA Legends

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Insightful breakdown from my great Partner Omri Amirav-Drory on the simple factors that really separate the top 1% of investors from the rest, and how more operators should become investors! https://lnkd.in/gEiZdT2h

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Since early 2021, VC quarterly exit values have plummeted to $50B or below, a stark contrast to the six consecutive quarters of $100B+ exits before then. With IPOs dwindling and M&A activity slow, the future of venture industry exits appears uncertain. Will we see a surge in private venture-backed company acquisitions? This could be a crucial and innovative strategy to boost VC exits. Increased private acquisitions might offer a much-needed lifeline, providing a creative solution to the current exit drought in the venture capital market. #venturecapital #inspireglobalventures

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HEAVY focus video for advanced CEOs -> 98% of CEOs including at $500 million revenue scale are focusing on so many things (slowing their company acceleration down) instead of effortless yet rigorous cross value domain priority “calculations”. This video is for advanced execs. It’s fair to say…no one teaches this the way we have done this across companies, industries and countries. After I managed at million $ and billion $ scale, wrote 4 billion variable algorithms to do this (at high end versions) and implemented it over and over..I can absolutely say it works for us and our clients. This is not a sales video...just informational on how anyone can do this. We hope this helps whether you are pre-revenue or crossing $1 billion for your first time. Also covered… - AB testing science/calculations that are THE core to life and company success - The actual mechanism that causes people to lose focus, stop believing in their attempt and get unnecessarily overwhelmed - Why 1 month initiatives take people 10 months unnecessarily - just by skipping a 60 sec calculation   - Why the more ambitious people tend to get off track the most - all we need is a focus on “most efficient order” and “team/self bandwidth bounds” - It’s essential to have clear goals for 1 day, 1 week, 1 month, 1 year, 2yrs, 5yrs, 10yrs - Why we won’t work with, consult or invest in execs that do not have solid cross value domain priority calculations or execs who cannot start working with solid cross value domain priority calculations asap - Hire for just the roles that extend runway enough to get you to a runway buffer that can withstand project “failures” (experiments) that are inherent to a degree when you are growing into new things or accelerating quickly - Lacking priorities also kills the must have “positive frequency” you need to be in to operate at your highest capacity - Priority calculations should be shared with the team to create autonomous decision frameworks that scale - Lacking skills in a department is a “silent killer” - Every meeting needs priorities of the meeting as well - and to bound them to time and decision target that is tied to revenue or a top 3 priority item - Non-consistent sleep, exercise, nutrition and emotional control is one of the biggest tells that a CEO is not on their game and not going to go where they want to go in the timeline they want to For context we have a 4 billion variable function that optimizes the entirety of companies (we use it in the consulting) Every person, landing page, strategy, development cycle, design, legal context …across food, software, clothing, gaming, manufacturing, etc ..all optimized So what is discussed is grounded in mechanisms that really work across companies, industries and countries. Savannah Kelley and I hope you enjoy our nuanced chat for advanced execs :-) 

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In April, OpenAI Controller Sowmya Ranganathan walked me through how her accounting team leverages ChatGPT to revolutionize the close process. I instantly knew we needed to share her story with the broader finance community. Accuracy and process are core to accounting workflow, so it can be intimidating to stray from traditional approaches. In our webinar last week, Sowmya walked through some brilliant demos, illuminating how you can automate repetitive and time-consuming tasks with ease. I’d *highly* recommend watching a replay of our webinar if you weren’t able to join live – it’s linked in the comments. We’ve also distilled her advice into a how-to guide: https://lnkd.in/gbheYKf2 Here are some of the pro tips she shared: ⚫ Seek out ways to automate. When you’re repeating a task that takes more than a few minutes in Excel - or something you hate about the close process, rewire your brain to find a way to automate it. Those minutes quickly add up to streamline your day-to-day workflow. This works with the close process, but also many other projects in finance and beyond. ⚫ Be curious about code. While she’s not a trained programmer, Sowmya uses ChatGPT to create Python scripts to build pivot tables and parse through massive CSVs. Her team can categorize a full month of OpenAI’s Azure usage data 👀 in 10 seconds 👀, whereas before they’d have to manually process the data every few days to avoid hitting Excel’s row limits. ⚫ Train ChatGPT on your company’s specific guidelines. After Sowmya ran a prompt to recognize revenue from a transaction file, she asked ChatGPT to cross-check it against their audit firm’s ASC 606 guidelines, which she uploaded as a PDF. The result was nearly the same, but it added an extra step to protect against hallucinations. And, she always triple-checks the results. ⚫ Don’t fear the error message. Pre-ChatGPT, if she was working on an automation project and received a technical error message, she might have given up. Today, Sowmya dumps the message back into ChatGPT, where it can diagnose and resolve any issues. You can see this problem-solving in action during her demo! A big thank you to Sowmya for sharing this hands-on demo and giving finance leaders the confidence to test it out themselves. Now that you have inspiration, how will you use ChatGPT and AI to revolutionize operations at your company?

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Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

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This article really struck a chord. VCs can range on a scale from positive to negative value add. A$$hole VCs can be on any part of that spectrum. There are reasons for it: you generally only see the investment decision maker side. There's a lot more behind this for most VCs Venture Capital Investors wear a lot of hats: fundraiser, investment manager, psychologist, problem solver, marketer, arbitrator, board member, professional juggler, and many more. They are not all good at all of them. In my opinion, there's little room for a$$hole VCs no matter how value add they are--that will eventually come back and bite you, if for no other reason than what ever drives their a$$holiness will come back to bite you. Founders are surprisingly candid about their frustrations with other VCs, whether it's poor treatment or a lack of value added. This feedback has shaped my perspective on the basics of what makes a truly good VC: >>> Try to understand the problem and passion. Before trying to peg a particular company in a category and match it up to competitors, I try to understand their view on the real problem, and why they are so passionate that they can solve it. >>> Give our own opinion the least weight. We all have opinions, and biases. Each company is an opportunity to challenge our preconceptions.. Mark Twain said, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. “ The way to do this is by becoming an illuminator, looking at the situation and collecting feedback and thoughts to form an opinion. You would be shocked at how little this happens. >>> Give honest and helpful feedback. VCs are uniquely positioned to offer constructive insights. We deal with a lot of companies coming to us constantly. It's hard to juggle them all and it’s hard to give hard news. I think it’s meaningful to give feedback when I can. >>> Say no. Saying no is hard. It's better for founders to hear a no than never hear anything at all. There are plenty of reasons why VCs don’t want to say no. But a clear response: a no, even a "no, not now" is valuable to not waste time. No VC lives these laws perfectly, but I think it's a good start at placing VCs in a healthier role in the ecosystem. #VC #venturecapital #founder #founders #williamkilmer https://lnkd.in/gkarPZP6

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PE - How to Use AI to Unlock Growth in Portfolio Companies All PE firms and portfolio companies should be thinking about unlocking GTM and growth via AI (i.e. not merely ChatGPT or other LLMs but actually implementing apps that are "AI Agents"). 1. What are "AI Agents"? - AI agents are autonomous systems powered by ML and natural language processing, designed to perform tasks with minimal human intervention - They can interpret data, determine the workflow & direction (i.e. make decisions), and execute actions across various functions, continuously improving through self-learning 2. Examples of using AI Agents in PE portfolio companies: - For Sales: AI agents handle lead qualification, respond to inquiries, book meetings, and provide personalized product recommendations, ensuring no opportunities are missed - For Marketing: Generate campaign briefs, segment audiences, create tailored content, and analyze performance to optimize outreach efforts - For Customer Success & Support: Provide 24/7 support, resolve customer issues autonomously, escalate complex cases to human agents with full context, and ensure consistent, brand-aligned responses 3. How PE portfolio companies benefit: - Efficiency: Automate repetitive tasks, enabling teams to focus on high-value activities - Scalability: Handle growing customer volumes without increasing headcount - Personalization: Deliver tailored experiences using real-time data insights - $ Cost Savings: Reduce operational costs by streamlining workflows 4. Business Impact for PE Portfolio Companies: - Accelerate GTM Execution: Faster lead conversion, better customer retention, and enhanced marketing ROI - Improve Metrics: Boost Customer NPS, CSAT, and efficiency - Enable Growth: Scale operations seamlessly while improving team productivity. 5. How PE Firms Must Think About Adoption - Define clear portfolio objectives to use AI agents (not just LLMs) - Ensure integration with existing CRM and data systems - Prioritize high-quality data and ongoing performance monitoring - Use AI agents to complement existing GTM teams, focusing them on automation ------------------ #pe #privateequity #investing #ai

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High purchase multiples + endless PE competition + high i-rates = shrinking margin for error in PE deals. PE firms can no longer afford to be wrong about a target company's: • Operational effectiveness • Growth readiness • Change readiness • Quality of leadership No wonder demand for organizational & commercial due diligence has surged in recent years. #PrivateEquity #DueDiligence

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🚀 Thinking of launching a corporate venture capital unit? Here’s the secret sauce. From 13 top CVCs interviews, the blueprint for success gets uncovered. 🎯 Key insights: - Define crystal-clear objectives - Implement structured processes - Set measurable metrics - Exercise patience - Gain board/executive backing - Offer more than just capital to startups PS. check out 🔔 for a winning pitch deck the template created by Silicon Valley legend, Peter Thiel https://lnkd.in/ejp-Bhnu

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Great insights about exits the next few years

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A PATH FOR SMALLER IPOs From Carl Chiou (quoted verbatim), an example of a smaller IPO and what it takes. Thanks Carl! ---- I’ve been busy working on a complex transaction we announced yesterday morning. Powerfleet (AIOT), a ~$500mm market cap vertical software company announced a $200mm acquisition of a privately owned competitor concurrently with a $70mm equity issuance via a PIPE as part of a larger financing package. Why is this relevant to you? Because it demonstrates the art of the possible for smaller companies that aspire to become public companies. First, investor demand absolutely exists for smaller market cap issuers as the company raised nearly 20% of its market cap to finance a transformative acquisition. While it may feel like the path to IPO for private companies requires $500mm+ of revenue, that’s simply not the reality. But… Second, success doesn’t happen overnight as many investors had already met with the company multiple times at conferences and their familiarity with the business and management team allowed them to move quickly. For private companies, that means being active and targeted in investor outreach in the 12-18 months leading up to an IPO. Third, giving up some of the pie to grow the pie can be a win-win for everyone. The equity offering priced at $3.50 versus a prior day close of $4.66, but two days post-announcement, shares are trading comfortable above $5. As much as I’ve written about optimizing IPO pricing, I’m also realistic that for smaller cap issuers, investors are going to underwrite more conservative valuations to accept the risk of less liquid, potentially higher volatility stocks. Fourth, the consolidation thesis resonates with investors as it simplifies the competitive landscape, adds revenue scale and drives improved operational and financial efficiency that improves the bottom line. I continue to believe that as much as the large strategics and private equity will play a role in clearing out the private tech pipeline, small – midsize companies will also be key participants going forward. End of day, Databricks, Stripe and other large scale, high-fliers are going to garner instant investor attention and a high multiple out of the gate when they eventually go public. But for everyone else, it’s important to know that with the right expectations, there is a clear path to an IPO. 1:10 PM · Sep 19, 

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Bessemer Venture Partners General Partner Jeremy Levine is your favorite VCs, favorite VC.. one of the most respected and successful venture capitalists over the last 2 decades. Jeremy has thrived through many eras, taking risks on now-iconic companies like LinkedIn, Shopify, Yelp, Pinterest, and more. In our discussion, Jeremy shared stories behind these investments and the mindsets he’s developed along the way. The conversation turned out to be one of my longest and most in-depth to date on the venture industry, an ultimate discussion for anyone that wants to nerd out on venture capital with us. A few takeaways: → Does price actually matter? Jeremy’s POV: “The idea price doesn't matter and that it's binary is just wildly flawed and lazy thinking. I think it's just dead wrong.” Jeremy avoids feeling FOMO, and instead convinces himself he has JOMO (Joy Of Missing Out), as we all love to avoid wasting time on things that you weren’t actually going to follow through with. → Why Jeremy hates investment memo templates Using templates for investment memos stifles deep, first-principle thinking. Instead of crafting a unique investment story, you’re doing busy work completing a form. While most of the memo can follow a structure, the first page should always be written from scratch. Templates can standardize discussions unfairly, emphasizing the same aspects for every company, regardless if their stand out value is their tech/market/product/etc. Instead, ask yourself “what is the most important thing?” and start from there. → Bessemer’s voting system for investment decisions For every investment decision, team member’s vote on how confident they feel in an investment from 1-10. It serves 2 purposes… Team feedback: as the lead partner on a decision, getting feedback can help you make a better decision (of which you will be celebrated or blamed for). Numeric ratings help clarify the discussion, as a 10 indicates more concrete approval than just saying "I love it," while a 6 provides grounds to discuss specific pros and cons. Keeps you honest: The voting process helps minimize hindsight bias by documenting your true confidence level at the time, allowing for a more objective review of your decision later on. Funny enough, some of Jeremy’s best investments got very weak votes, and we talk through these in the full episode. We also explored how the VC landscape has evolved over the last 20 years and where the industry may head next. Plus, lots of insights from Jeremy’s journey into VC, along with foundational advice and principles that anyone aspiring to succeed in the industry may find valuable: https://lnkd.in/d5kNFtKc

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