AI startups founder trends, Supplements are having a moment, and millionaires are renting more than ever
Stretch Four Volume 52
Happy (Super Bowl) Sunday,
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Check out the first two episodes of the Stretch Four Podcast. Episodes 1-3 are up live and expect another episode this week. All episodes are live on both Apple and Spotify. Thanks to all who tuned in!
Let’s get to this week’s newsletter.
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Quote of the Week:
Companies without clear product-market fit won’t be given time to find one, while those who have it will face much more skepticism about just how much that market is worth and, crucially, when it will be worth it. — Ben Thompson, Stratechery
Chart of the Week:
AI is the new crypto and the swath of startups getting funded is increasing by the day. Crunchbase highlighted a common theme in Silicon Valley on who the founders are of these breakout companies. Black founders are on the ground floor of AI and with the inherent bias that can be built into these types of companies, that can be a negative signal. The race against time continues…
Tweet of the Week:
Continuing with the theme of creating awareness around more black founders and emerging fund managers in the venture. I enjoyed speaking on a panel hosted by the Cap Table Coalition this week in San Francisco. The Coalition is a community of Black, LatinX, and LGBTQ operators investing in startups. The event was held at Finix, the largest investment made by the Coalition to date. Our panel included Joseph Akintoya, CEO of Deposits; Mercedes Bent, a Fintech Investor at Lightspeed Ventures; and Qiana Patterson, Managing Partner at NAYAH.
Health & Performance
Silicon Valley's Latest Invention: The Supplement Stack (The Information)
The supplement stack craze is raging through Silicon Valley. The Information put together a fairly extensive deep dive into how some folks across Silicon Valley managed their supplements.
This is an emerging area of focus for a lot of people right now coming out of COVID — folks are trying to maintain their health by any means possible.
One of the startups that got highlighted is Fount which charges up to $3,000/per month to manage your health and supplements and give you one-on-one wellness coaching.
Personal Finance
The Rise of the Millionaire Renters (Bloomberg)
The facts
In 2020, 104 millionaires were renting their homes in Jersey City, whereas in 2015 not a single one was according to an analysis of US Census Bureau data by RentCafe, a rental marketing software company. Affluent renter households growing rapidly in the U.S.
In DC, millionaire renters tripled from 41 to 121 in 5 years; SF shot up 1,629%.
Affluent renters drove hot housing markets in 2020, including Dallas, Phoenix, and Charlotte, NC.
Doug Ressler, manager of Yardi Matrix, reports convenience and security draw people to mid-rise/high-rise buildings with concierge services near amenities.
Wealthy renters prioritize city living and are disinclined to purchase homes farther away.
I am impacted by the high cost of living in San Francisco in three ways:
My wife and I have chosen to live in the city rather than the suburbs, as we prefer city life. Growing up in a small town, I have always wanted to experience the hustle and bustle of a big city.
Renting provides us with the flexibility we need. Many founders and venture-backed companies are based here, making it difficult to purchase a home until their stock becomes liquid.
Unfortunately, we now have to compete with multimillionaires in the rental market, driving up the cost of available units.
The benefit of San Francisco for venture-backed founders is the sheer cost of living that motivates them to excel. Post-pandemic, I think this is even more relevant with the layoffs that have occurred. There must be significant incentives to stay here, which is also true of other emerging founder hotspots such as New York, Miami, and Los Angeles.
I am excited to share an interview I did with a fellow founder who makes the case for moving to a more affordable area and the benefits and tradeoffs he has experienced thus far.
Founder Reads & Learnings
Sam Altman’s Manifest Destiny (The New Yorker)
The Four Horsemen of the Tech Recession (Stratechery)
VC’s Limited Partners Are Still Pissed (The Information)
Disrupting the World's Largest Asset Class with Adam Neumann (A16Z’s Youtube)
I delved into the world of AI this week, and it all comes down to Sam Altman. He is the driving force behind the current venture capital buzz surrounding OpenAI's ChatGPT.
Sam has been involved in the startup world since he was eighteen. Now, he's back with a vengeance, leading the new AI revolution in Silicon Valley.
On this week’s Stretch Four Podcast — I share further takes on what founders can learn from the Church of Sam Altman.
Adam Neumann returned this week to the a16z conference in Washington, DC, where he made a splash with his announcement of the plan for his new company.
Adam is a divisive figure, and a clip of his speech quickly went viral on Twitter. There were some thought-provoking comments.
I adopted a different viewpoint on the podcast—I believe founders can learn a lot from Neumann.
Book Excerpt or Review
Data about your thoughts go into a database owned by Google, what you buy from Amazon or Walmart, and what you owe to Experian or Equifax. You live in a world structured by concentrated corporate power. - Matt Stoller, Goliath
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Final Thoughts
This week is Valentine’s Day week, which leads up to the NBA All-Star weekend in Salt Lake City. I will be local until the following week when I head to Miami to see some family and celebrate a 40th birthday party.
The next work trip I have planned is the Fintech Meetup in Las Vegas, NV on March 18-20. I am looking forward to that event and I am beginning to prepare my talk.
Happy Super Bowl Sunday.
Back to the trenches.
Best, Matt