The Data T Investing in Data and AI Startups with Joe Floyd and Saad Siddiqui
May 3, 2024
Joe Floyd and Saad Siddiqui, seasoned venture capitalists, delve into the dynamic world of data and AI startups. They share insights on the rapid rise of platforms like Snowflake and the evolution from Hadoop to cloud warehouses. The duo discusses essential traits they seek in founding teams, including intensity and hiring prowess. They also explore the importance of unique data sets in building defensible AI businesses and caution against speculative startups. Their reflections on the impact of generative AI provide a compelling look at future trends in the industry.
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Thesis-Driven Investing Wins
- Emergence hunted the next-gen pieces of the modern data stack after Snowflake became dominant.
- They prioritize categories with large markets but fewer competing startups to pick winners.
Hire Founders Who Will Grind
- Hire founders with maniacal intensity and product obsession who will grind at 1 a.m. on Friday.
- Prioritize teams who care about solving a problem, not just making money.
The Hunger Sweet Spot
- Founders who exited for $50–200M often return hungrier than those with massive windfalls.
- Moderate past success leaves a 'chip on the shoulder' that fuels the next startup.