Innovation with Mark Peter Davis

This week’s pod is a two segment episode with my partners Phuong Ireland and Mike Rogers.

As usual, Phuong shares some great startup advice. This week she shares valuable insights on team construction and the key factors to consider when making your first hires.

Mike and I then discuss the current state of AI and its hype cycle. There’s no question AI is here to stay, but we note that the initial wave of hype and investments in the field is subsiding. We chat about the challenges of AI reliability and the presence of hallucinations in AI platforms, emphasizing that these technologies are not yet fully trustworthy. Despite this, we believe in the long-term potential of AI and its future impact on various industries.

Links:

• Follow us on Twitter: @mpd, @interplay, @Mikeyjrog,
• Podcast Links: Website, YouTube, Twitter, LinkedIn

This week, Phuong and I discuss the importance of Key Performance Indicators (KPIs) for entrepreneurs. We emphasize the need to choose a limited number of KPIs to avoid analysis paralysis and prioritize actionable metrics. The primary KPI should align with the business model, such as revenue for most companies, and additional supporting metrics can provide a more comprehensive understanding of performance. They highlight the role of KPIs as a feedback mechanism to assess the effectiveness of strategies and suggest setting goals for the primary metric to drive growth. The episode emphasizes the value of being data-driven from the early stages of a startup and encourages entrepreneurs to start tracking KPIs as soon as possible.

Links:

• Links: Interplay Incubator
• Follow us on Twitter: @mpd, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

This week Chris Zhang and I discuss the impact of the recent debt ceiling resolution and the conflicting signals from the equity market and the bond market.

While the stock market remains calm and confident, the bond market indicates a continuing inflationary cycle and a decline in the long-term creditworthiness of US treasuries. Chris suggests that the bond market has historically been more accurate in its predictions.

We also touch on the regulatory actions against crypto companies. Chris emphasizes that it is still too early to predict what will happen with crypto and - on a more macro level - determine the winner in the global currency battle. He believes that market forces will ultimately determine the outcome. 

As usual, some great insights from Chris on the complex dynamics and uncertainties surrounding the financial markets and the potential impact of these factors on the global economy.

Links:

• Links: Interplay Family Office
• Follow us on Twitter: @mpd, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

*DISCLAIMER*

Interplay Family Office LLC (“Interplay”) is registered as an investment adviser with U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser does not imply any level of skill or training. Information about the qualifications and business practices of Interplay is available on the SEC’s website at www.adviserinfo.sec.gov._ Interplay only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Offering of asset management services through Interplay is pursuant to an investment advisory agreement.The views expressed in this <<insert advert type, i.e., podcast>> are subject to change based on market and other conditions. The <<insert advert type>> may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.Information communicated during the <<insert advert type>> does not involve the rendering of personalized investment advice but is limited to the dissemination of general market information. A professional adviser should be consulted before implementing any of the strategies or options presented. The <<insert advert type>> is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Neither Interplay nor its advisory persons render tax or legal advice. Please consult your tax and legal advisors for advice concerning your circumstances.

On this week’s pod ep I sit down for a chat with Seth Levine, Partner of Foundry. Seth has played a significant role in shaping the venture ecosystem over the past two decades and is known for his work in accelerating the democratization of innovation outside of Silicon Valley.

We cover a range of topics but do a double click on the importance of having a clear intention and plan for the future of a venture firm, which includes the need for VCs to adopt a business-building mindset. We agree that venture capital firms need to be better at running their own businesses and making strategic decisions for the long term, especially if the goal is to have the firm outlive its founders.

Seth is amazing and shares valuable insights into the dynamics of the venture capital industry and the efforts to advance society through entrepreneurship, a topic he covers in his book The New Builders. We chat about that book, plus the  new one he’s currently working on (which I can’t wait to read).

Overall, this was a great chat. Big thanks to Seth for coming on the pod!

Links

• Guest Links: Book | The New Builders by Seth Levine, Article | A Friedman doctrine‐- The Social Responsibility of Business Is to Increase Its Profits
• Follow us on Twitter: @sether, @foundryvc, @newbuildersbook, @mpd, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

Here’s what’s covered on this week’s pod:

A step by step guide on how to iterate your MVP

• Phuong and I discuss the importance of testing Minimum Viable Products (MVPs) to iterate and achieve product-market fit. She outlines a step-by-step process for testing MVPs, starting with defining test objectives and creating metrics to track performance. Fong emphasizes the significance of creating user personas and recruiting testers that represent different user types. By gathering feedback from testers, entrepreneurs can optimize their products to better serve each user group. Fong suggests providing clear instructions to testers and analyzing usage data to understand user behavior and identify areas for improvement. The iterative process of updating and refining the product based on feedback and data is also highlighted.

Dos and don’ts for portfolio/vc relationship ethics

• Mike and I delve into the ethics of the portfolio venture capital (VC) relationship. They acknowledge that transparency and ethics should be the guiding principles but highlight instances where founders may skew data or misrepresent numbers. Mike suggests that founders should be open, transparent, and willing to ask for help when needed. He emphasizes the significance of maintaining trust and a healthy relationship with investors by being transparent about challenges and seeking support.

Links

• Follow us on Twitter: @mpd, @Mikeyjrog, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

On this week’s episode I do a deep dive into the world of venture debt with special guest Billy Libby, CEO and Co-founder of Upper90. Get ready to uncover a groundbreaking approach to financing early-stage startups that challenges the traditional equity-focused model. Upper90 is on a mission to make credit accessible to tech companies at an earlier stage, allowing founders to retain a greater ownership stake in their businesses. Billy shares valuable insights on how venture debt can provide a lifeline to entrepreneurs, highlighting real-world examples of asset-based lending and innovative solutions for capitalizing on growth opportunities. Whether you're an entrepreneur seeking financing options or simply curious about the evolving landscape of startup funding, this episode is a must-listen. Join the conversation and gain a fresh perspective on the intersection of technology, finance, and entrepreneurship.

Links

• Follow us on Twitter: @Billy__Libby, @upper__90, @mpd, @interplay
• Guest Links: Upper90
• Podcast Links: Website, YouTube, Twitter, LinkedIn

Here’s what’s covered on this week’s episode:

• Phuong Ireland joins us to talk about bootstrapping startups. Bootstrapping means building and growing your business without external funding, relying on personal savings, revenue, or loans. It offers benefits like maintaining full ownership, having control over the company's direction, and focusing on profitability. It also makes you more attractive for future funding. However, bootstrapping comes with risks like limited funds and lack of access to mentorship and connections.
• Mike Rogers shares his insights on the current state of Series C funding. Series C funding peaked in 2021, but 2022 showed a decline and 2023 is showing signs of following suit. This is due to a flight to quality, with investors being highly selective in their investments and demanding best in class metrics and profitability. On the flip side, many companies meeting these criteria choose not to raise funds in the current market. This confluence of factors has led to a smaller pool of eligible companies and a decrease in Series C funding.

Links:

• Links: The Fundraising Rules
• Follow us on Twitter: @mpd, @Mikeyjrog, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

This week’s episode is a special one. I have a chat with my partner and CIO of the Interplay Family Office, Chris Zhang, to discuss China's remarkable advancements over the past few decades and what its current status looks like.

Chris is uniquely positioned to opine on this topic. He was born in China and spent the first 16 years of his life there, moving to the United States for high school. Since his move, he has visited China annually until Covid-19 halted all travel. After a three year hiatus, Chris visited this past April and was astounded at the progress he witnessed, including how built up his hometown of Zhengzhou had become (known as the iPhone city since they’ve produced most iPhones there).

That’s what inspired this episode. By challenging outdated perceptions and showcasing China's progress, this conversation is meant to highlight the need for a nuanced understanding of China's current status as a global powerhouse.

Here are some of the main topics covered:

• Education and work ethic: Chris shares insights into his rigorous Chinese middle school experience, highlighting the dedication and discipline ingrained in the system.
• China's private sector contributes over 50% to GDP more than 80% of employment opportunities, fostering a competitive landscape and driving innovation.
• China's middle class has grown significantly, with the number of Chinese citizens enjoying a standard of living comparable to the US increasing steadily.
• Chinese technology companies are making significant strides, particularly in the electric vehicle (EV) industry, with high-quality, affordable EVs gaining popularity globally.
• China's infrastructure growth has been substantial, with the construction of entire cities and urbanization projects transforming landscapes previously dominated by farmlands and villages.
• The Chinese currency, the yuan, is gaining prominence, as demonstrated by its surpassing of the US dollar in Chinese cross-border transactions.

Links:

• Links: Interplay Family Office
• Follow us on Twitter: @mpd, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

*DISCLAIMER*

Interplay Family Office LLC (“Interplay”) is registered as an investment adviser with U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser does not imply any level of skill or training. Information about the qualifications and business practices of Interplay is available on the SEC’s website at www.adviserinfo.sec.gov._ Interplay only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Offering of asset management services through Interplay is pursuant to an investment advisory agreement.The views expressed in this <<insert advert type, i.e., podcast>> are subject to change based on market and other conditions. The <<insert advert type>> may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.Information communicated during the <<insert advert type>> does not involve the rendering of personalized investment advice but is limited to the dissemination of general market information. A professional adviser should be consulted before implementing any of the strategies or options presented. The <<insert advert type>> is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Neither Interplay nor its advisory persons render tax or legal advice. Please consult your tax and legal advisors for advice concerning your circumstances.

Here’s what’s covered on this week’s episode:

• Startup Tip of the Week: Building a Killer MVP (Minimum Viable Product).
• An update on the situation with First Republic Bank.
• A brainstorm on how to stop bank runs.

Links:

• Links: RSVP to Is This A Thing?!,
• Follow us on Twitter: @mpd, @interplay
• Podcast Links: Website, YouTube, Twitter, LinkedIn

Here’s what’s covered on this week’s episode:

• The AI horse race and how it will affect the future of search
• Crypto prices are up. Is the dark cloud of FTX gone?
• The Shanghai Upgrade for the Ethereum network.
• Startup Tip of the Week: Validating an MVP
• An update on the inflation battle.

Links:

• Links: Bruvi, Ethereum's Shanghai Upgrade
• Follow us on Twitter: @mpd, @interplay, @brettpalatiello, @Mikeyjrog
• Podcast Links: Website, YouTube, Twitter, LinkedIn

*DISCLAIMER*

Interplay Family Office LLC (“Interplay”) is registered as an investment adviser with U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser does not imply any level of skill or training. Information about the qualifications and business practices of Interplay is available on the SEC’s website at www.adviserinfo.sec.gov._ Interplay only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Offering of asset management services through Interplay is pursuant to an investment advisory agreement.The views expressed in this <<insert advert type, i.e., podcast>> are subject to change based on market and other conditions. The <<insert advert type>> may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.Information communicated during the <<insert advert type>> does not involve the rendering of personalized investment advice but is limited to the dissemination of general market information. A professional adviser should be consulted before implementing any of the strategies or options presented. The <<insert advert type>> is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Neither Interplay nor its advisory persons render tax or legal advice. Please consult your tax and legal advisors for advice concerning your circumstances.