Seed strategy: founder money and uncapped note

Carl explains choosing founder investors and an uncapped note to limit early dilution for a capital-intensive hardware plan.

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Episode notes

Carl Pei is the founder of Nothing, the consumer electronics company known for its distinctive transparent design language across smartphones and audio products. Before launching Nothing in 2020, Carl co-founded OnePlus, where he spent seven years helping build it into a major smartphone brand. But Carl’s instincts as a builder showed up much earlier. As a teenager, he taught himself to code by building Pokémon fan sites, all while moving between China, the U.S., and Sweden. That combination of early creation and constant change shaped a founder comfortable with uncertainty—and deeply motivated by questions bigger than products. Carl thinks often about time and mortality, is skeptical of early retirement, and believes creativity is humanity’s real advantage. In an industry obsessed with optimization, he’s focused on making technology feel meaningful again.

In our conversation, we explore:

The origins of Nothing’s transparent design language and how it helps differentiate the brand in a mature, competitive market
Carl’s childhood fascination with mortality and how it continues to drive his ambition today
Nothing’s multiple near-death experiences, from 80% defect rates on first products to fundraising struggles
Why India has become a crucial market for Nothing’s smartphone business
How Nothing approaches community involvement, including letting users invest alongside VCs
The company’s approach to integrating AI features without overhyping the technology
Carl’s admiration for Genghis Khan’s management style and talent acquisition approach
The future of consumer electronics beyond smartphones

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Thank you to our sponsor, Guru — The AI source of truth for work

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Transcript: https://www.generalist.com/p/nothings-carl-pei-on-building-a-1b-smartphone-company

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Timestamps

00:00) Introduction to Carl Pei and Nothing

(02:44) Nothing’s long-term vision

(06:33) How existential thinking shapes Carl’s motivation

(10:12) Why Carl’s planned sabbatical ended after ten days

(12:35) Carl’s international upbringing

(16:02) Entrepreneurial experiments in China