CDOQ

Intelligence is a function of the environment. 

In the semiconductor industry, the adage 'eat or be eaten' emphasizes the need for continuous improvement and strategic expansion, often by acquiring adjacent businesses with complementary or superior technologies. The SaaS industry operates under a similar principle. To thrive, SaaS companies must constantly innovate and enhance their product offerings, whether through internal development, strategic partnerships, or acquisitions. 

Temporariness is permanent. 

Last week, I attended the Bay Area IPO Summit , hosted by the Connor Group . The process of going public is a complex ecosystem involving a wide range of specialized participants. Below are my key insights from the summit, shedding light on the current dynamics of the IPO market. IPO: A milestone in a company's journey (image credit DALL-E) Current State  1. Improving Market Conditions : The IPO market is showing signs of recovery. Year-to-date, 2024 has seen 30% more IPOs than the entirety of 2023. Additionally, over $300 billion in venture capital "dry powder" remains available for investment in the US. 2. Revised Definitions: Investment bankers now define "high growth" as achieving over 30% year-over-year revenue growth, while "profitability" is simply a business generating more than break-even profits. 3. Supply Constraints: Contrary to popular belief, there is no shortage of investor demand for IPOs. The real issue lies on the supply side—few hi...

Earlier this week, I saw a new friend for coffee—one of the few truly wise people I’ve encountered in Silicon Valley. What follows is unadulterated wisdom from my friend:   Wisdom over coffee 1. Separate style from substance. Most people judge others based on their message delivery style rather than the content itself. To understand people better, focus on what they’re saying, not how they’re saying it. 2. Test for trustworthiness. To know if someone is trustworthy, look for contradictions in what they say. 3. Evaluate the substance-to-noise ratio. If someone speaks charmingly for a long time to convey something simple, they might have a hidden agenda.  4. It is hard to figure out in an interview if the candidate is trustworthy but you can understand their grasping power [intellect] and articulation [communication] skills.  5. Smart bosses do their best to keep their smart employees. 6. Watch for noise in data. For example, data might show that firetrucks a...

"Travelling comfortably dominates people's thinking when they should be thinking about destinations."  -Nick Sleep 

Semiconductor Business FAQ  Q1: What are the fundamental differences between the semiconductor business and a typical B2B SaaS startup? A: The semiconductor industry differs significantly from software-based startups, primarily in terms of investment scale, development cycles, and market dynamics. Here's why: i) High Capital Investment & Longer Timeframes: Semiconductor development demands significant upfront investment, often reaching tens of millions of dollars, with multi-year development cycles before a product can even be tested. This contrasts sharply with the iterative, lower-cost nature of software development. ii) Targeting Large Markets: Due to the hefty initial investments, semiconductor companies must target large, high-volume markets to achieve profitability. A single design win in a consumer device like a smartphone can translate to millions of units sold. iii) Limited Iteration: Unlike software, where updates and bug fixes can be rolled out relatively easily, mak...