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Good morning 👋

And happy Tuesday.

I’ll admit: I love when funds make requests for startups.

Are they self serving?

Absolutely.

Are they directionally helpful to understand where capital is going towards building new things?

Also, yes.

So today we’re breaking down YC’s latest request for startups - let’s get into it.

P.S. 👉 We shared two pieces with Pro subscribers over the weekend.

  • Our investment memo (1,700 words) on a company replacing DocuSign

  • Our full January behind-the-scenes look at what worked / didn’t work / needs to get fixed with this business over the past month

If you want to see either (or both) of those, you can upgrade your subscription here.

Today’s highlights

  • YC latest request for startups

  • Our latest investment memo

  • How to get vs how to keep attention

  • An updated AI voice agents market map

TOP
Request for startups (YC S25) 📋

YC shared its latest request for startups last week.

It mostly agrees with how we’re looking at the world.

Here’s the TL;DR for those of you who didn’t get a chance to read it:

1. A Secure AI App Store

  • User Data Protection: Empowers users to control which personal information each app can access, enhancing privacy.

  • Unified Memory: Centralizes user preferences and context, allowing apps to be more personalized without redundant data storage.

  • Curated AI Tools: Provides a vetted marketplace for AI applications, ensuring quality and security for users.

  • Developer Support: Offers infrastructure and APIs to streamline app development, reducing redundant efforts.

  • Simplified Monetization: Facilitates easy payment processes for paid apps or services, benefiting developers.

2. Datacenters

  • Accelerated AI Infrastructure: The surge in AI applications demands rapid expansion of data centers. Innovations in power infrastructure, cooling, and project management can expedite this growth.

  • Cost Efficiency: Developing solutions to build data centers faster and at lower costs addresses the pressing need for scalable AI infrastructure.

3. Compliance and Audit

  • Regulatory Adherence: As industries become more digitized, ensuring compliance with evolving regulations is crucial. Tools that automate and streamline compliance processes are in high demand.

  • Risk Mitigation: Automated audit solutions can identify and address potential risks proactively, safeguarding businesses.

4. DocuSign 2.0

  • Enhanced Digital Agreements: Building upon existing digital signature platforms, there's potential for more secure, user-friendly, and integrated solutions in contract management.

  • Integration Capabilities: Seamless integration with other business tools can enhance workflow efficiency.

5. Browser & Computer Automation

  • Task Efficiency: Automating repetitive tasks can significantly boost productivity for individuals and businesses.

  • AI Integration: Leveraging AI to predict and automate user behaviors can lead to more intuitive computing experiences.

6. AI Personal Staff for Everyone

  • Personalized Assistance: AI can act as a personal assistant, managing schedules, communications, and tasks tailored to individual needs.

  • Accessibility: Making such AI assistants affordable and user-friendly can democratize access to personal productivity tools.

7. Devtools for AI Agents

  • Developer Support: As AI agents become more prevalent, specialized development tools can aid in their creation, testing, and deployment.

  • Efficiency: Streamlining the development process for AI agents can accelerate innovation in this space.

8. The Future of Software Engineering

  • AI-Driven Development: Incorporating AI into software development can lead to more efficient coding practices and innovative solutions.

  • Evolving Practices: Staying ahead of emerging trends ensures relevance in a rapidly changing tech landscape.

9. AI Commercial Open Source Software (AICOSS)

  • Community Collaboration: Combining the strengths of open-source development with AI can lead to robust, community-driven solutions.

  • Commercial Viability: Developing sustainable business models around open-source AI projects can drive innovation.

10. AI Coding Agents for Hardware-Optimized Code

  • Performance Enhancement: AI can assist in writing code optimized for specific hardware, leading to better performance.

  • Developer Efficiency: Automating hardware-specific optimizations can free developers to focus on higher-level design.

11. B2A: Software Where the Customers Will All Be Agents

  • Agent-Centric Design: Creating software tailored for AI agents as primary users opens new avenues in software development.

  • Scalability: Such software can handle tasks at scales beyond human capability, offering efficiency gains.

12. Vertical AI Agents

  • Industry-Specific Solutions: Developing AI agents tailored to specific industries can address unique challenges and optimize operations.

  • Expertise Automation: Embedding industry expertise into AI agents can enhance decision-making processes.

13. Startup Founders with Systems Programming Expertise

  • Technical Proficiency: Founders with deep systems programming knowledge can drive innovations at the foundational software level.

  • Performance Optimization: Such expertise can lead to the development of highly efficient and optimized software solutions.

14. Inference AI Infrastructure in the World of Test-Time Compute

  • Scalable Solutions: As AI models grow, efficient infrastructure for inference becomes critical. Innovations here can lead to cost savings and performance improvements.

  • Resource Management: Optimizing compute resources during inference can make AI applications more accessible and sustainable.

COMMUNITY
The OS for private investors 🕹

HEADLINES

  • Goodbye, Golden Handcuffs: Inside The Partner Exodus Rippling Across Venture Capital (Fortune)

  • The State Of Startups In 12 Charts: AI Soars, Asia Tanks, Seed Stalls And More  (Crunchbase)

  • Longtime tech investor Lip-Bu Tan is setting up new VC firm (Pitchbook)

  • ChatGPT Subscribers Nearly Tripled to 15.5 Million in 2024 (The Information)

Thanks for reading this far and giving us a little bit of your attention this week.

Feel free to unsubscribe whenever this stops becoming valuable to you.

RESULTS

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

What is the right portfolio construction approach for most seed funds?

🟩🟩🟩🟩🟩🟩 More bets / lower conviction per bet

🟩🟩🟩🟩🟩🟩 Less bets / higher conviction per bet

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