how VC works?

  • where VCs get their money, a high-risk asset?

The job of fund managers is to ensure that giant pile of money grows. At the lowest end, it needs to grow in line with inflation, 9% annually in US for example.

VC is spread-betting across a large number of startuos. They are trying to deploy a fund into a set of startups that matches their hopes, dreams and ambitions. Ultimately, there are just two goals. The lowest possible goal is to return the fund.

A 3x or 4x return might be great for you, the founder, and perhaps for your early angel investors. For the VC industry, though, they’re looking for much higher potential than that. If everything goes perfectly to plan — your company gets everything right and sees a huge tailwind, where everything goes better than your wildest dreams — and you’re still not able to get the VCs to fund-returning-sized returns, you’re not in the right room. You’re selling something that doesn’t work within the VC model, which means you’re simply not a good investment.

One analogy here: music labels in the 70s, 80s, 90s. Labels gave a lot of bands the money to record their first album. It didn’t really matter if that album became a hit or not. What matterered is that of all the albums that were recorded, one was Guns N’ Roses’ Appetite for Destruction.

membership

  • membership rules what’s your goal? Membership is for a community but build a community is not your goal.

the end of programming

First, look back at the programming. First machine instruction, then assembly, then high-level compiled languages such as Fortran, COBOL, and their successors C, C++, Java and so on. Then interpreted such as BASIC. Pretty soon, operating system came along. DOS. Unix. Windows. macOS. so programmers no longer needed to write low-level code to control the machine. Web is just another abstraction to encapsulate many networking protocols. Then big data, web service and cloud computing could be called “internet operating system.” Now, we have LLM and ChatGPT.

Smart developers who adopt the technology will be in demand because they can do so much more, focusing on the higher-level creativity that adds value. AI will not replace programmers, but it will transform their jobs.

hot in cold out

In the cold winter where snow covered the road for a long time, there are some intersections you could observe this: the drive-in side into the community block has less snow or ice than the other side out from the community block. I call it hot-in-cold-out or hot-right-cold-left.

Of course, for this to happen, there are some conditions. There are enough traffic but not too much like the main roads or highways. These are at least two-lane road not like the back-alley.