#1381 Mike Maples | Investor Reveals Secret To Finding Billion Dollar Companies
Jul 9, 2024
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Mike Maples, Founding Partner at FLOODGATE, discusses startup capitalism, evaluating founders, stress testing ideas, pattern breaking actions, finding opportunities, and his new book. The podcast also explores Crypto IRAs, productivity tools, Bitcoin insurance, and contrasts between startup and corporate capitalism.
Startups create value by changing the status quo through pattern-breaking actions.
Evaluating startup ideas through stress testing can uncover pattern-breaking opportunities for success.
Deep dives
Startup Capitalism vs. Corporate Capitalism
Startup capitalism fundamentally differs from corporate capitalism as startups create value by changing the subject, persistently compounding their ability to create value. Unlike corporate capitalists who leverage powers like economies of scale or network effects, startups start with nothing and win by denying the premise of the rules, ultimately changing the subject and creating value through pattern-breaking actions.
Pattern Breaking Ideas and Actions
Successful startups hinge on pattern-breaking ideas and actions. Pattern-breaking ideas offer radically different futures, empowering people in new ways. Conversely, pattern-breaking actions involve behaviors like creating movements, storytelling, and disagreeableness. Founders who embody these qualities excel in changing the rules and positioning themselves radically different from the competition.
Stress Testing Startup Ideas
When evaluating startup ideas, stress testing becomes crucial. Founders are advised to focus on inflections, fundamental insights, and whether the idea originates from the future to determine its potential. Stress testing assists in identifying inflection points that empower people, leading to pattern-breaking opportunities.
Balancing Risk and Innovation in Investing
In venture capital, the balance between risk and innovation is critical to success. Venture capitalists need to embrace failure as part of the process, with a key focus on identifying pattern-breaking opportunities with potential for significant returns. Aligning insights, inflections, and future founder fit can guide investors towards high-risk, high-reward investments in startups.
Mike Maples is a Founding Partner at Floodgate, and the author of a brand new book called, “Pattern Breakers: Why Some Start-Ups Change The Future.” In this conversation, we talk about startup capitalism vs corporate capitalism, how startups win, evaluating founders, stress testing ideas, pattern breaking actions, embracing chaos, finding opportunities, startup investments, and his new book.
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Pomp writes a daily letter to over 265,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/