Reflections on early-stage investing as a new(ish) venture capitalist

Why distribution strategy should be part of product design

It is better to think of distribution as something essential to the design of your product. If you have invented something new but you haven’t invented an effective way to sell it, you have a bad business. Superior sales and distribution by itself can create a monopoly, even with no product differentiation. The converse is not true — no matter how good the product, you have a bad business if you have no effective way to sell it.

Don’t overstate the uniqueness

Incremental improvements aren’t sufficient

Product mindset = 🏆

More than anything else: The team matters most

Which matters most among markets, products, or people? I’ll take people because the best ones find ways to carve out a niche in existing markets or develop new ones, and products are only as good as the market execution behind them. Companies are made of people who execute according to their ideas and abilities. The success of companies will ultimately depend on the investments they make in finding the best people, developing their capabilities, and looking for ways to help them take the next steps on their journeys.



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