📶 taste is eating software

Why taste is the new thing companies are chasing, European unicorns are dying off, SpaceX alums are launching a massive deeptech fund, plus three of the fastest-growing YC companies from the latest batch

October 15, 2024 • Estimated Reading Time: 6 minutes

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I read this article yesterday.

It changed how I’m thinking about venture investing over the next decade.

So I wrote about my thoughts in today’s piece.

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taste > code

Marc Andreessen once said software would eat the world—and for a while, it did. But that was 2011, now we’re in 2024, and technical moats aren’t enough.

Today, taste is what differentiates winners from losers.

Companies are being judged by how they feel, not just how they function. In a world where code is commoditized, taste has become the new battleground, driving product adoption and creating brand loyalty.

Why it matters: Good software has become table stakes.

It’s no longer the differentiator it once was; everyone’s product is good enough. What used to be a technical arms race is now about something harder to quantify: taste.

In this new world, code is cheap. The real value lies in wrapping utility in design that feels right, and in creating something more than just functional—a product with beauty and meaning.

Today’s products are more than just tools. They’re emotional touchpoints.

What happens next: Founders will evolve into tastemakers, and the best ones have already developed this skill.

All of software will become commoditized.
Design flaws will cost market share.
Beautiful product design will lower CAC.
Expect more founding hires to have design and art backgrounds.

VCs, on the other hand, will learn to become tastemakers themselves. How that plays out will be very unknown, but we’ve already seen plenty of examples of investors branding themselves to appeal to those with taste (redesigning website, building voice on Twitter, starting a newsletter / blog, launching a podcast).

But how do you train improving your taste?

Reps.

LOTS of reps.

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LINKS

⛓️ Fixing the Economies of Being a Creator: Chris Dixon of a16z Crypto, says using blockchain will put the power back into the hands of the creators and users

🧐 One Thing You Wish People Better Understood About Venture Capital, Part II: Hunter Walk brings us part II of asking investors this question

❓ VC Pitch Questions and Answers: If you’re a startup founder interested in raising money, here are 4 lists of potential questions you might be asked and examples on how to answer

📕 The Emerging Startup Playbook: Growth Unhinged believes today’s startups need to move past the dated and expensive approach of old

🔆 The utopian case for AI: The bull case according to the CEO of Anthropic

STARTUPS (Together with Harmonic)
YC F24 companies that have grown headcount over past quarter 🔎

Name	Description
PearAI	Open source AI-powered code editor
Relvy	Debugging AI agents
Symphony	AI user interviews

We use Harmonic to get thousands of data points on companies like these.

Here’s how you can do the same.

The only way to prepare for the “future of work” is to keep increasing your rate of learning. And that’s it.
— anu (@anuatluru)
1:58 AM • Oct 8, 2024

HEADLINES

Up to $100B could be wiped off Europe’s unicorn market value (Pitchbook)
SpaceX alums are working to raise a hefty $550M first deep tech fund (TechCrunch)
Writing Venture Capital’s New Playbook (Forbes)
The CIA runs a nonprofit venture capital firm. What’s it investing in? (Marketplace)
Cybersecurity Funding Plummets 51% In Q3 (Crunchbase)

RECS

Creator Spotlight

Your guide to turning attention into business.

POLL

What matters most to you?

Code | Design / aesthetic | Distribution | Something else

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- Clay

RESULTS

Here are the results from our poll question in yesterday’s piece:

What is the realistic timeline for AI solving complex issues like solving world hunger, curing diseases, and doubling human lifespans?

🟩🟩🟩🟩🟩🟩 In the next 6-12 months (9)

🟨🟨🟨⬜️⬜️⬜️ Maybe in the next 2-5 years (5)

🟨🟨🟨🟨🟨⬜️ We're at least 5+ years away (8)

🟨🟨🟨🟨🟨⬜️ We're not even close (8)

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📶 taste is eating software

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