This Week in Startups

Kevin O'Connor on backing visionaries, the future of VC, internet history and more | E1861

Dec 8, 2023

55:30

Snipd AI

Kevin O'Connor discusses the early days of the internet and the recent changes brought on by AI. They also explore tactics for building in a declining market and the emergence of 'death-icorns'. O'Connor shares what he looks for in founders and discusses the challenges of selling software, importance of SOC 2 compliance, and strategies for founders in up and down markets. They also discuss reasons for business failure and the transactional nature of the employer-employee relationship. The chapter also explores the qualities that investors look for in entrepreneurs and discusses valuations in the market.

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Quick takeaways

The importance for venture capitalists to navigate the fine line between delusion and vision when backing entrepreneurs who are willing to take risks and think outside the box.

The transformative potential of AI, similar to the impact of the internet, and its implications for industries such as law, accounting, and music.

The limitations of remote work in terms of socialization, mentorship, and the value of face-to-face interactions for professional growth and development.

Deep dives

The Importance of Backing Delusional Founders

Entrepreneurs who are willing to think outside the box and take risks, even if they seem delusional, can often be visionary. The fine line between delusion and vision is important for venture capitalists to navigate. These delusional founders who are willing to take big leaps can often yield great results if they succeed. It is these founders who refuse to listen and stick to their own convictions that are often problematic. The speaker emphasizes the importance of finding entrepreneurs who are resilient, have a great attitude, and are driven by a sense of urgency in their pursuit of their goals and vision.

The Impact of Technology on Jobs and Industries

02:00

The Politics and Sensible Thinking Surrounding COVID-19

01:26

Death of Corins and the Challenges of Business Growth

01:15

Introduction

3min

The Evolution of the Internet and the Potential of AI

6min

The Future of Stories and Content Creation

3min

Starting a Fund and Investment Thesis

7min

Challenges of Selling Software, Importance of SOC 2 Compliance, and Strategies for Founders in Up and Down Markets

2min

Reasons for Business Failure

9min

Deception in the Workplace and an Ad for DevSwad

2min

The Transactional Nature of the Employer-Employee Relationship

16min

Qualities of Entrepreneurs and Valuations

9min

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Today’s show:

ScOp’s Kevin O’Connor joins Jason (1:39), exploring the early days of the internet, its initial promise, rapid growth, and the recent pivotal changes brought on by AI (1:39). They also discuss tactics for building in a declining market, the emergence of “death-icorns” (19:30), what he looks for in founders (39:18), and much more!

Timestamps:

(0:00) Jason welcomes Kevin O’Connor of ScOp Venture Capital.

(1:39) Exploring the early days of the internet, its initial promise, rapid growth, and the recent pivotal changes brought by AI.

(5:55) Discussing the impact and future prospects of AI as we approach 2024.

(8:41) Delving into the potential influence of AI on sectors like Hollywood and the music industry.

(10:03) Northwest Registered Agent - Get a 60% discount on your next LLC at http://www.northwestregisteredagent.com/twist

(11:11) Transitioning from founding companies to establishing a fund and supporting new startups.

(15:25) Examining the evolution of founding a company, market dynamics, and fluctuating trends since the 1990s.

(18:22) Vanta - Get $1000 off your SOC 2 at https://www.vanta.com/twist

(19:30) Tactics for building in a declining market, the emergence of “death-icorns,” and the pitfalls of debt-financed growth in unprofitable businesses.

(27:57) The pendulum swings back after “the great reshuffling of America” and the phenomenon of over-employment.

(29:53) DevSquad - Get an entire product team for the cost of one US developer plus 10% off at http://devsquad.com/twist

(33:13) Identifying unique opportunities in AI investments.

(36:50) Recounting a near acquisition of Kevin’s company Graphiq by Apple for Siri integration.

(39:18) What Kevin currently seeks in entrepreneurs before making an investment.

(47:35) Discussing current valuation trends and the competitive nature of losing deals in venture capital.

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LinkedIn: https://www.linkedin.com/in/kevinoconnorsb

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