1/ Advice on finding “the right idea” is often a variant of the tired painkillers vs. vitamins cliche -- focus on a problem you’ve experienced or others are experiencing yada yada

Yet, many impactful ideas were more akin to aesthetics, how founders felt the world should be.
2/ Take compute virtualization. For decades, VMs were an elegant oddity. The VMware team viewed them as the right way to abstract compute but weren't quite sure the killer use case(s). And yet that led to multiple deca-billion dollar markets.
3/ Many platforms and OSes have followed similar paths. They didn’t address a particular burning need now, but if adopted they would change how we did work and thought about work.
4/ Solving tangible, near-term problems is fine. But it’s not the only way to build a company. And for dreamers, can be tremendously limiting.
5/ Ideas as aesthetics are particularly powerful because the founders with the ideas can draw upon their intuition and impress it on the world rather than manically react to the customers tactical and often blinkered views of "the problem”.
6/ So the next time someone asks if you have a painkiller or a vitamin, tell them neither, you’re too busy creating the red pill.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with martin_casado

martin_casado Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @martin_casado

28 Nov
I’ll have a go - raw numbers are correlated with turnout, not relative popularity - 94% of democrats voted for Biden and there are 5% more democrats than republicans nationally - the only demographic that voted majority trump is white males (and they only make up 30% of the pop)
- exit polls contradict a number of these claims including LatinX voters outside of Florida and oil-dependent Tx (both that went Trump) - absolute gains for blacks are correlated with record turn out, exits polls show overwhelming backing of Biden
- much of the anomalistic skewing happened during mail ins in an election where the incumbent told his constituency not to trust ballots over mail
Read 5 tweets
12 Aug
[New Post] The economics of AI / ML companies are poorly understood.

In this post, @BornsteinMatt and I cover some of the core challenges and how they are being tackled by top teams in the industry.

a16z.com/2020/08/12/tam…

Highlights below 👇
1/ Unlike traditional software, margins, scalability, and defensibility for AI companies are usually a function of the problem -- not the technology. And often the problems are ugly.
2/ Many AI problems show long-tailed distributions of input data (meaning most inputs happen infrequently), and supervised learning is not well equipped to handle it.
Read 14 tweets
3 Aug
0/ A very interesting trend to watch is the disappearance of pre-sales, and what it means to GTM tooling. (a thread)
1/ Pre-sales has traditionally been the function that brings a new customer to technical and financial close. Generally it involves an account rep (AE) and a sales engineer (SE) to educate a customer on the product, do technical demos, PoCs, integration etc.
2/ However, with the shift to bottom-up this role is changing. And in some cases going away entirely. This is happening so fast that a surprisingly high portion of new founders don’t even recognize the “pre-sales” / “post-sales” lingo.
Read 14 tweets
9 Feb
0/ There is a dazzling amount of inconsistency in what GTM metrics are presented at board meetings of early stage b2b companies. Here is my hit list of the most important, and why:
1/ CARR - total contracted annual recurring revenue is the single best metric for the health of a business. It encapsulates new logo growth, expansion, and churn in a single number. If you only show one number, use this one.
2/ Live ARR - Some board members prefer LARR to CARR because it can take a long time to implement a deal. And some never make it. Both is best, but for early stage companies I prefer CARR as it signals the market.
Read 14 tweets
12 Dec 19
0/ Is there an Enterprise Margin Crisis? It's not uncommon to see software startups with surprisingly low margins (30-40%). We believe there is a broader trend going on here, which I explore in this thread.
1/ While not all of these are new, there are a number of macro trends that have downward pressure on margins; the move to cloud, AI/ML, bottoms up GTM etc. Below I outline the most common contributors we see across the industry.
2/ AI can be expensive : Many ML/AI companies will have unique data sets and unique models per customers. This can add a nontrivial compute and data management component per customer dollar spent.
Read 12 tweets
15 Aug 19
➡️margin directly drives valuation
➡️cloud spend is increasingly contributing to margin
➡️cloud stacks are *horribly* inefficient
➡️I suspect there are hundreds of billions of dollars of market cap being depressed layer of inefficient layer in the public cloud
Take standard compute in the cloud ...

- Code written in high-level language
- Language libraries
- Language runtime
- Userspace OS libraries
- Guest kernel
- Hypervisor
- DMA

So many redundant memory managers and networking stacks alone ...
There are basically four numbers that contribute to valuation
- TAM
- Growth
- Net Dollar Retention
- Margin <---- lots of money to be saved here
Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!