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Good morning 👋
My Twitter feed is still 90% videos and deep dives on the LA fires.
I’ll keep my thoughts to myself, but keep praying for everybody out there - it doesn’t sound like it’s close to being over yet.
Today’s highlights
Reddit builds a search competitor
The consolidation of private credit
Confessions of a big tech recruiter
Thoughts on going monk mode
TOP
Reddit Answers takes the stage 🔍
Reddit is taking a big swing at AI with Reddit Answers, a new feature that leverages conversational AI to provide quick, concise responses based on the platform’s treasure trove of user-generated content.
The tool aims to modernize Reddit's search functionality, making it less reliant on its clunky subreddit structure while positioning itself as a competitive alternative to Google’s search dominance.
This is Reddit’s first significant AI-driven product since it weathered a storm of criticism for limiting third-party API access earlier in 2024, and the company is looking to turn its 57 million daily active users into a competitive advantage.
Why it matters: This move is an important lesson in data monetization.
Reddit’s attempt to convert its massive (and often niche) data pool into a revenue-driving, AI-powered feature demonstrates the commercial value of untapped proprietary datasets.
It also signals a shift in how platforms monetize: rather than expanding ad products, Reddit is leaning into utility. If successful, this approach could redefine how tech businesses think about maximizing value from their core assets.
From an investment standpoint:
Generative AI's ecosystem continues to heat up, and tools like Reddit Answers push the field toward specialization.
With Google and OpenAI already vying for AI dominance, Reddit could carve out a niche that makes it more than just a forum—it could become the internet’s leading authority on niche community knowledge.
What happens next: If Answers delivers value without alienating its core user base (already skeptical post-API changes), it could drive significant user engagement and even attract new audiences.
However, this move also brings challenges:
Community backlash: Leveraging unpaid user contributions for profit will likely raise questions about fairness
Competition from giants: Can Reddit build an AI solution good enough to make a dent in Google's stranglehold on search?
If this works, expect to see Reddit capitalize further on its data moat, and don’t be surprised if other platforms with strong communities follow suit.
Read more: https://www.reddit.com/answers/
COMMUNITY
The operating system for private investors 🕹
2,500 investors from places like Accel, Bessemer, Insight, and USV are already members.
Why aren’t you?
LINKS
🔬 Monk Mode: Mario Gabriele of The Generalist shares the 10 experimental habits to wants to try to assert great control over the information he allows in and the direction of his attention
🔥 There’s No Way Governments Let AI Run Wild: Wiz I Utopian posts in response to Bloomberg article citing 200,000 possible Wall Street job losses because of AI
🎭 Confessions of a Big Tech Recruiter: The Pragmatic Engineer discusses the recruitment process with a tech recruiter for Google, Meta, Uber and YC
🤝 Play Long-Term Games With Long-Term People: From the almanack of Naval Rivikant … ”all returns in life, whether in wealth, relationships, or knowledge, come from compound interest”
HEADLINES
Silicon Valley is so dominant again, its startups devoured over half of all US VC funding in 2024 (TechCrunch)
Market Map: Investors have chemistry with biopharma (Pitchbook)
How 10 private credit firms came to manage a third of the industry’s capital (Pitchbook)
AI Has Venture Investors Excited About (Yes) Accounting Firms (WSJ)
Europe’s Startup Funding Stabilized In 2024, But Remains Far Off Market Peak (Crunchbase)
Blue Origins team explains why New Glenn rocket launch was (once again) delayed (Sky News)
Together with JKBX
Wall Street Can’t Hold a Note Like This
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Visit www.jkbx.com/legal/offering-circulars for important Reg A disclosures. This content is not investment advice, nor is it an offer of securities. All investments involve risk and may result in loss.
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- Clay
RESULTS
Here are the results from our poll question in yesterday’s piece:
Which of these do you AGREE with the most if the venture fundraising correction persists?
🟩🟩🟩🟩🟩🟩 Firms shut down and capital consolidates
🟨⬜️⬜️⬜️⬜️⬜️ The downsizing of funds & fees (‘Right-Sizing’)
🟨🟨🟨⬜️⬜️⬜️ A generational transition happens – by choice or force
🟨⬜️⬜️⬜️⬜️⬜️ Firms shift to other asset classes
⬜️⬜️⬜️⬜️⬜️⬜️ The rise of funding non-technical businesses
⬜️⬜️⬜️⬜️⬜️⬜️ Foreign investors swoop in
🟨⬜️⬜️⬜️⬜️⬜️ Finding opportunities in the ruins
🟨⬜️⬜️⬜️⬜️⬜️ The elbows come out – worse terms and less patience with management
⬜️⬜️⬜️⬜️⬜️⬜️ Disproportionate impact on CVCs
⬜️⬜️⬜️⬜️⬜️⬜️ A potential for geographic re-shuffling – especially in Tier 2 & 3 markets
