Startup entrepreneurs assume what risks when pitching?

Last week I signed four NDAs.

Four!

NDA stands for non-disclosure agreement. A legal document given to someone receiving confidential information. By signing, the person pledges not to share the information for a certain time. If they do, they may be in breach of contract and face legal action.

Companies use NDAs to protect trade secrets and confidential internal information from employees and contractors. Appropriate. If you manage a huge, successful firm, you don't want your employees selling their information to your competitors. To be true, business NDAs don't always prevent corporate espionage, but they usually make employees and contractors think twice before sharing.

I understand employee and contractor NDAs, but I wasn't asked to sign one. I counsel entrepreneurs, thus the NDAs I signed last week were from startups that wanted my feedback on their concepts.

I’m not a startup investor. I give startup guidance online. Despite that, four entrepreneurs thought their company ideas were so important they wanted me to sign a generically written legal form they probably acquired from a shady, spam-filled legal templates website before we could chat.

False. One company tried to get me to sign their NDA a few days after our conversation. I gently rejected, but their tenacity encouraged me. I considered sending retroactive NDAs to everyone I've ever talked to about one of my startups in case they establish a successful company based on something I said.

Two of the other three NDAs were from nearly identical companies. Good thing I didn't sign an NDA for the first one, else they may have sued me for talking to the second one as though I control the firms people pitch me.

I wasn't talking to the fourth NDA company. Instead, I received an unsolicited email from someone who wanted comments on their fundraising pitch deck but required me to sign an NDA before sending it.

That's right, before I could read a random Internet stranger's unsolicited pitch deck, I had to sign his NDA, potentially limiting my ability to discuss what was in it.

You should understand. Advisors, mentors, investors, etc. talk to hundreds of businesses each year. They cannot manage all the companies they deal with, thus they cannot risk legal trouble by talking to someone. Well, if I signed NDAs for all the startups I spoke with, half of the 300+ articles I've written on Medium over the past several years could get me sued into the next century because I've undoubtedly addressed topics in my articles that I discussed with them.

The four NDAs I received last week are part of a recent trend of entrepreneurs sending out NDAs before meetings, despite the practical and legal issues. They act like asking someone to sign away their right to talk about all they see and hear in a day is as straightforward as asking for a glass of water.

Given this inflow of NDAs, I wanted to briefly remind entrepreneurs reading this blog about the merits and cons of requesting investors (or others in the startup ecosystem) to sign your NDA.

Benefits of having investors sign your NDA include:

None. Zero. Nothing.

Disadvantages of requesting investor NDAs:

• You'll come off as an amateur who has no idea what it takes to launch a successful firm.

• Investors won't trust you with their money since you appear to be a complete amateur.

• Printing NDAs will be a waste of paper because no genuine entrepreneur will ever sign one.

I apologize for missing any cons. Please leave your remarks.

How did his money blind me?

Like most fledgling entrepreneurs, I wanted a mentor. I met as many nearby folks with "entrepreneur" in their LinkedIn biographies for coffee.

These meetings taught me a lot, and I'd suggest them to any new creator. Attention! Meeting with many experienced entrepreneurs means getting contradictory advice. One entrepreneur will tell you to do X, then the next one you talk to may tell you to do Y, which are sometimes opposites. You'll have to chose which suggestion to take after the chats.

I experienced this. Same afternoon, I had two coffee meetings with experienced entrepreneurs. The first meeting was with a billionaire entrepreneur who took his company public.

I met him in a swanky hotel lobby and ordered a drink I didn't pay for. As a fledgling entrepreneur, money was scarce.

During the meeting, I demoed the software I'd built, he liked it, and we spent the hour discussing what features would make it a success. By the end of the meeting, he requested I include a killer feature we both agreed would attract buyers. The feature was complex and would require some time. The billionaire I was sipping coffee with in a beautiful hotel lobby insisted people would love it, and that got me enthusiastic.

The second meeting was with a young entrepreneur who had recently raised a small amount of investment and looked as eager to pitch me as I was to pitch him. I forgot his name. I mostly recall meeting him in a filthy coffee shop in a bad section of town and buying his pricey cappuccino. Water for me.

After his pitch, I demoed my app. When I was done, he barely noticed. He questioned my customer acquisition plan. Who was my client? What did they offer? What was my plan? Etc. No decent answers.

After our meeting, he insisted I spend more time learning my market and selling. He ignored my questions about features. Don't worry about features, he said. Customers will request features. First, find them.

Putting your faith in results over relevance

Problems plagued my afternoon. I met with two entrepreneurs who gave me differing advice about how to proceed, and I had to decide which to pursue. I couldn't decide.

Ultimately, I followed the advice of the billionaire.

Obviously.

Who wouldn’t? That was the guy who clearly knew more.

A few months later, I constructed the feature the billionaire said people would line up for.

The new feature was unpopular. I couldn't even get the billionaire to answer an email showing him what I'd done. He disappeared.

Within a few months, I shut down the company, wasting all the time and effort I'd invested into constructing the killer feature the billionaire said I required.

Would follow the struggling entrepreneur's advice have saved my company? It would have saved me time in retrospect. Potential consumers would have told me they didn't want what I was producing, and I could have shut down the company sooner or built something they did want. Both outcomes would have been better.

Now I know, but not then. I favored achievement above relevance.

Success vs. relevance

The millionaire gave me advice on building a large, successful public firm. A successful public firm is different from a startup. Priorities change in the last phase of business building, which few entrepreneurs reach. He gave wonderful advice to founders trying to double their stock values in two years, but it wasn't beneficial for me.

The other failing entrepreneur had relevant, recent experience. He'd recently been in my shoes. We still had lots of problems. He may not have achieved huge success, but he had valuable advice on how to pass the closest hurdle.

The money blinded me at the moment. Not alone So much of company success is defined by money valuations, fundraising, exits, etc., so entrepreneurs easily fall into this trap. Money chatter obscures the value of knowledge.

Don't base startup advice on a person's income. Focus on what and when the person has learned. Relevance to you and your goals is more important than a person's accomplishments when considering advice.

Don't know how to start an online business? Here's a guide. By following these recommendations, you can build a lucrative and profitable online business.

What Are Online Businesses Used For?

Most online businesses are websites. A self-created, self-managed website. You may sell things and services online.

To establish an internet business, you must locate a host and set up accounts with numerous companies. Once your accounts are set up, you may start publishing content and selling products or services.

How to Make Money from Your Online Business

Advertising and marketing are the best ways to make money online. You must develop strategies to contact new customers and generate leads. Make sure your website is search engine optimized so people can find you online.

Top 5 Online Business Tips for Startups:

1. Know your target audience's needs.

2. Make your website as appealing as possible.

3. Generate leads and sales with marketing.

4. Track your progress and learn from your mistakes to improve.

5. Be prepared to expand into new markets or regions.

How to Launch a Successful Online Business Without Putting in a Lot of Work

Build with a solid business model to start a profitable online business. By using these tips, you can start your online business without paying much.

First, develop a user-friendly website. You can use an internet marketing platform or create your own website. Once your website is live, optimize it for search engines and add relevant content.

Second, sell online. This can be done through ads or direct sales to website visitors. Finally, use social media to advertise your internet business. By accomplishing these things, you'll draw visitors to your website and make money.

When launching a business, invest long-term. This involves knowing your goals and how you'll pay for them. Volatility can have several effects on your business. If you offer things online, you may need to examine if the market is ready for them.

Invest wisely

Investing all your money in one endeavor can lead to too much risk and little ROI. Diversify your investments to take advantage of all available chances. So, your investments won't encounter unexpected price swings and you'll be immune to economic upheavals.

Financial news updates

When launching or running a thriving online business, financial news is crucial. By knowing current trends and upcoming developments, you can keep your business lucrative.

Keeping up with financial news can also help you avoid potential traps that could harm your bottom line. If you don't know about new legislation that could affect your industry, potential customers may choose another store when they learn about your business's problems.

Volatility ahead

You should expect volatility in the financial sector. Without a plan for coping with volatility, you could run into difficulty. If your organization relies on client input, you may not be able to exploit customer behavior shifts.

Your company could go bankrupt if you don't understand how fickle the stock market can be. By preparing for volatility, you can ensure your organization survives difficult times and market crashes.

Conclusion

Many internet businesses can be profitable. Start quickly with a few straightforward steps. Diversify your investments, follow financial news, and be prepared for volatility to develop a successful business.

Thanks for reading!

The trick Notion could use is simply Facebook-ing the hell out of them.

*Time travel to fifteen years ago.* Future-Me: “Hey! What are you up to?” Old-Me: “I am proofreading an article. It’s taking a few hours, but I will be done soon.” Future-Me: “You know, in the future, you will be using a google chrome plugin called Grammarly that will help you easily proofread articles in half that time.” Old-Me: “What is… Google Chrome?” Future-Me: “Gosh…”

I love Grammarly. It’s one of those products that I personally feel the effects of. I mean, Space X is a great company. But I am not a rocket writing this article in space (or am I?)…

No, I’m not. So I don’t personally feel a connection to Space X. So, if a company collapse occurs in the morning, I might write about it. But I will have zero emotions regarding it.

Yet, if Grammarly fails tomorrow, I will feel 1% emotionally distressed. So looking at the title of this article, you’d realize that I am betting against them. This is how much I believe in the critical business model that’s taking over the world, the one of Notion.

Notion How frequently do you go through your notes?

Grammarly is everywhere, which helps its success. Grammarly is available when you update LinkedIn on Chrome. Grammarly prevents errors in Google Docs.

My internal concentration isn't apparent in the previous paragraph. Not Grammarly. I should have used Chrome to make a Google doc and LinkedIn update. Without this base, Grammarly will be useless.

So, welcome to this business essay.

• Grammarly provides a solution.

• Another issue is resolved by Jasper.

• Your entire existence is supposed to be contained within Notion.

New Google Chrome is offline. It's an all-purpose notepad (in the near future.)

• How should I start my blog? Enter it in Note.

• an update on LinkedIn? If you mention it, it might be automatically uploaded there (with little help from another app.)

• An advanced thesis? You can brainstorm it with your coworkers.

This ad sounds great! I won't cry if Notion dies tomorrow.

I'll reread the following passages to illustrate why I think Notion could kill Grammarly and Jasper.

Notion is a fantastic app that incubates your work.

Smartly, they began with note-taking.

Hopefully, your work will be on Notion. Grammarly and Jasper are still must-haves.

Grammarly will proofread your typing while Jasper helps with copywriting and AI picture development.

They're the best, therefore you'll need them. Correct? Nah.

Notion might bombard them with Facebook posts.

Notion: “Hi Grammarly, do you want to sell your product to us?” Grammarly: “Dude, we are more valuable than you are. We’ve even raised $400m, while you raised $342m. Our last valuation round put us at $13 billion, while yours put you at $10 billion. Go to hell.” Notion: “Okay, we’ll speak again in five years.”

Notion: “Jasper, wanna sell?” Jasper: “Nah, we’re deep into AI and the field. You can’t compete with our people.” Notion: “How about you either sell or you turn into a Snapchat case?” Jasper: “…”

Notion is your home. Grammarly is your neighbor. Your track is Jasper.

What if you grew enough vegetables in your backyard to avoid the supermarket? No more visits.

What if your home had a beautiful treadmill? You won't rush outside as much (I disagree with my own metaphor). (You get it.)

It's Facebooking. Instagram Stories reduced your Snapchat usage. Notion will reduce your need to use Grammarly.

The Final Piece of the AI Puzzle

Let's talk about Notion first, since you've probably read about it everywhere.

• They raised $343 million, as I previously reported, and bought four businesses

• According to Forbes, Notion will have more than 20 million users by 2022. The number of users is up from 4 million in 2020.

If raising $1.8 billion was impressive, FTX wouldn't have fallen.

This article compares the basic product to two others. Notion is a day-long app.

Notion has released Notion AI to support writers. It's early, so it's not as good as Jasper. Then-Jasper isn't now-Jasper. In five years, Notion AI will be different.

With hard work, they may construct a Jasper-like writing assistant. They have resources and users.

At this point, it's all speculation. Jasper's copywriting is top-notch. Grammarly's proofreading is top-notch. Businesses are constrained by user activities.

If Notion's future business movements are strategic, they might become a blue ocean shark (or get acquired by an unbelievable amount.)

I love business mental teasers, so tell me:

• How do you feel? Are you a frequent Notion user?

• Do you dispute my position? I enjoy hearing opposing viewpoints.

Ironically, I proofread this with Grammarly.

I analyze the top 200 DeFi crypto projects in this article.

This isn't a study. The findings benefit crypto investors.

Let’s go!

A set of data

I analyzed data from defillama.com. In my analysis, I used the top 200 DeFis by TVL in October 2022.

Total Locked Value

The chart below shows platform-specific locked value.

14 platforms had $1B+ TVL. 65 platforms have $100M-$1B TVL. The remaining 121 platforms had TVLs below $100 million, with the lowest being $23 million.

TVLs are distributed Pareto. Top 40% of DeFis account for 80% of TVLs.

Compliant Blockchains

Ethereum's blockchain leads DeFi. 96 of the examined projects offer services on Ethereum. Behind BSC, Polygon, and Avalanche.

Five platforms used 10+ blockchains. 36 between 2-10 159 used 1 blockchain.

Use Cases for DeFi

The chart below shows platform use cases. Each platform has decentralized exchanges, liquid staking, yield farming, and lending.

These use cases are DefiLlama's main platform features.

Which use case costs the most? Chart explains. Collateralized debt, liquid staking, dexes, and lending have high TVLs.

The DeFi Industry

I compared three high-TVL platforms (Maker DAO, Balancer, AAVE). The columns show monthly TVL and token price changes. The graph shows monthly Bitcoin price changes.

Each platform's market moves similarly.

Probably because most DeFi deposits are cryptocurrencies. Since individual currencies are highly correlated with Bitcoin, it's not surprising that they move in unison.

Takeaways

This analysis shows that the most common DeFi services (decentralized exchanges, liquid staking, yield farming, and lending) also have the highest average locked value.

Some projects run on one or two blockchains, while others use 15 or 20. Our analysis shows that a project's blockchain count has no correlation with its success.

It's hard to tell if certain use cases are rising. Bitcoin's price heavily affects the entire DeFi market.

TVL seems to be a good indicator of a DeFi platform's success and quality. Higher TVL platforms are cheaper. They're a better long-term investment because they gain or lose less value than DeFis with lower TVLs.