Wagon Wheel
w.195 | Steve Jobs, DPI, CBO Deficit Levels, Return-on-Coaching, Product Market Fit
Dear Friends,
I am in the midst of what I am calling “extrovert week.” I am currently in North Carolina for my 15-year Duke college reunion, which, as anticipated, has been an amazing time to reconnect with many of my oldest and most formative friends. And then, like at least a few of you, I am headed to San Diego on Sunday for ASU-GSV, the largest EdTech investing conference in the world.
And then I’ve booked 60 minutes in a sensory deprivation float to recover.
After this week, the transition to the post-Covid era will officially be complete (at least for me).
Today's Contents:
Good Reads: Trends
OTF: Return-on-Coaching for Venture-Backed Founders
Song of the Week: Wagon Wheel
Good Reads: Trends
Make Something Wonderful: Steve Jobs in his own words. Free e-book.
Michael Seibel (YC Partner) Had a Great Tweet Thread on the importance of finding product-market fit and not rushing to scale until it is found. Recommend this lesson for everyone in startups and venture.
Meghan Reynolds on Twitter in her Heard from VC LPs This Week series.
Many LPs are awaiting inevitable markdowns. This is important because it’s going to take a long time but is definitely coming. Given how much larger alternative assets are now than they were in the past, this might have larger implications on portfolios.
Data from past tech bubble Peak TVPI to Final DPI to illustrate what is likely coming (40%+ markdowns even for Top Quartile VCs).
Congress Budget Office: Monthly Review. The US federal government is being fiscally irresponsible. There is no way to mince words on this one. These things don’t seem terrible in the short-term but can have dramatic long-term consequences.
The federal budget deficit was $1.1 trillion in the first half of fiscal year 2023, CBO estimates—$430 billion more than the shortfall recorded during the same period last year. Revenues down, outlays up, and a demographic pyramid that is not working in our collective favor on either front.
Obviously The Future: Return-on-Coaching for Venture-Backed Founders
My colleague Dalglish Chew and I published an essay this week about our coaching relationship in our firm and the potential for coaching to unlock investment returns.
I like to call Dalglish the ‘Wendy Rhoades’ of Venture Capital after the character in the show Billions.
Why is that unique? Dalglish’s most important qualification as a coach is that he understands the investment and business-building process, and he is at least theoretically qualified to be an investor himself. That bedrock of credibility and respect forms the basis of our coaching relationship and makes it work.
In summary: Coaching is a learning and development intervention grounded in facilitated self-inquiry. As AI continues to eat our collective lunch, learning of the deeply human variety will become more important.
Song of the Week: Wagon Wheel
Live version here on YouTube.
This is one of my all-time favorite songs, and it always reminds me of the four years I spent in North Carolina. Blue Grass music, string bands, pulled pork sandwiches, thunderstorms, collard greens, and basketball rivalries. It’s amazing to come back to Durham and see how the city has blossomed - and how the cultural roots remain the same.
But, here’s the funny thing. The chorus of the song was written by Bob Dylan way back in 1973. And where is Bob Dylan from? Minnesota.
“Wagon Wheel” by Old Crow Medicine Show
Headed down south to the land of the pines
I'm thumbin' my way to North Caroline
Starin' up the road
And pray to God I see headlights
I made it down the coast in seventeen hours
Pickin' me a bouquet of dogwood flowers
And I'm a-hopin' for Raleigh
I can see my baby tonight
Selfie of the Week
The first stop on Friday was hanging out with my Duke Econ thesis advisor Ed Tower (we co-published on Time Zone Arbitrage) around the Duke Gardens on the perfect Spring day.
Back in the day Ed, always an economist, said there is no such thing as a free lunch but there are faculty-student interaction dollars so we should discuss our paper over lunch. :)
Ed has retired from Duke, but he is actively writing papers on active vs. passive management. His latest paper hasn’t been published yet, but its timely as active management is making a comeback in performance.
And since its a moment for nostalgia, here is a throwback of my friend David Fiocco and me during Spring Break freshman year. We’d both be top contenders for the ‘the most competitive person you know’ award. I always liked this picture because we tried to prove which of us is taller. Congrats on making Senior Partner, David!
Thanks for reading, friends. Please always be in touch.
As always,
Katelyn