Charles Hudson argues that VC's obsession with founder relationships and industry context doesn't predict success. The market has actually converged on execution and speed as the real moat, but nobody knows how to measure those things before investing.
Chapters
I've got this AI powered thing that can meet your needs. And so I think there's something comforting in VCs believing that, like, oh, the answer is just fund the people who already have the relationships and context in this industry, and they'll be the winners. And I think that hasn't worked. And then we've gone through various iterations, and I think we've, we've landed in this place where I think the answer is, like, nobody knows. Nobody knows what actually matters in terms of founder pedigree and attributes. And I think we've ended up in this world where I think most people believe the only investable moat, whether it's at an individual level for keeping your job and getting promoted, or as an investor investing companies, it seems to be that it's like execution and speed. And I'm just like, but how do you measure those things up front.