#158 VC Breakout Companies (Ch.1) - What Does it Take?

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Picture of the Day: Ch.1 Breakout Companies Founders

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Breakout Company Founders: Highlights from Devin Wenig (Symbolic.ai) and Mike Silagadze (ether.fi)

We talk a lot here about what it takes to build great VC funds and firms!

The catch is, none of it matters if you aren’t accessing and investing in founders that can build breakout companies!

Today, we share some insights from two of those founders.

In a recent Chapter One ‘Breakout Companies’ call, we had the privilege of conversing with two industry leaders: Devin Wenig, co-founder and CEO of Symbolic.ai, and Mike Silagadze, co-founder and CEO of ether.fi. Here are the key takeaways from the discussions.

Symbolic.ai: Transforming Professional Writing with AI: Insights from Devin Wenig

Devin Wenig's Background:

• Former President and CEO of eBay Inc ($30b)

• Former CEO of Thomson Reuters

Key Discussion Points:

1. AI in Professional Writing:

   1. The focus should be on creating AI tools that enhance human writers' abilities rather than replace them.

   2. Tailored AI solutions can revolutionize high-stakes fields like journalism by streamlining research, sourcing, and story building.

2. Industry Transformation:

   1. Early computing applications were limited to low-stakes scenarios like email generation.

   2. True transformation is now possible, particularly in journalism, where work quality is critical.

3. Challenges and Opportunities:

   1. Addressing intellectual property (IP), copyright, monetization models, and attribution is crucial for AI-generated content.

   2. Startups have the opportunity to build specialized tools for verticals like writing, which large tech companies might overlook in their broader focus.

ether.fi: Exploring the Future of Blockchain: Mike Silagadze’s Vision for ether.fi

Mike Silagadze's Background:

• Former founder and CEO of TopHat, an ed-tech company that raised $230m and exited to Georgian Partners in 2021.

Key Discussion Points:

1. Transition to Blockchain:

   1. Inspired by Ethereum's programmable financial services, Mike transitioned from ed-tech to blockchain.

   2. His experience in scaling organizations and acquiring users is now being applied to building blockchain companies.

2. Ether.fi’s Mission:

   1. Developing comprehensive on-chain financial services, including interest-bearing accounts (Stake), asset deployment solutions (Liquid), and digital cash services (Cash).

   2. Focus on democratizing financial systems, particularly in regions like Brazil.

3. Regulatory and Market Insights:

   1. Regulatory clarity is viewed positively, as it legitimizes and stabilizes the industry.

   2. Emphasis on security with rigorous monitoring to prevent exploits.

   3. Current market conditions, with government spending and high interest rates, are seen as a strategic time to invest in blockchain technology.

   4. Success depends on accessing top-tier founding teams and seizing high-quality deal opportunities.

Both conversations underscored the transformative potential of their respective fields. Devin Wenig’s insights highlighted the revolutionary role of AI in journalism, while Mike Silagadze emphasized the promising future of blockchain technology and its financial applications.

As these industries evolve, the balance of innovation, regulation, and strategic investment will be key to driving significant advancements.

That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”