Jason’s EOW (End of Week) | 4/16/20

Episode Summary

Executive Summary: Jason Calacanis hosts a live recap of his week, detailing his podcast production for 'This Week in Startups' and 'All-In,' his investment activities, and management of Launch and Inside companies. He discusses equity crowdfunding via Republic, the importance of growth tactics, and his upcoming 'Meet Our Fund' event. He also shares personal anecdotes, answers audience questions on angel investing, valuations, and career advice, and reflects on management practices like EOD/SOD reports.

Main Topics: Podcast Production and Strategy (Priority: 5/5): Jason explains his approach to producing 'This Week in Startups' with long-form, deep interviews (e.g., Ken Williams, Sahil, Arlen Hamilton) and the 'Scaling Your Startup' series. He emphasizes going deep before mainstream and producing four episodes per week plus the 'All-In' podcast. Equity Crowdfunding and Republic (Priority: 4/5): Discussion of Republic's equity crowdfunding platform, the distinction between accredited and non-accredited investors, and recent regulatory changes allowing up to $5 million raises. Examples include Sahil from Gumroad and Arlen from Backstage Capital. Investment Philosophy and Portfolio Construction (Priority: 5/5): Jason advises angel investors to allocate 1-10% of net worth, place small bets ($2K-$5K), diversify across 20+ investments, and focus on companies with product-market fit and customers. He shares his own syndicate and fund activities. Management Practices: EOD/SOD Reports (Priority: 4/5): Jason advocates for Start of Day (SOD) and End of Day (EOD) reports as a lightweight management tool to track productivity, identify underperformers, and facilitate remote work accountability. He criticizes those who resist such practices. Current Market Conditions and Valuations (Priority: 3/5): Jason notes that early-stage SaaS valuations are 'crazy' and 'frothy,' leading him to pass on some deals. He advises founders to focus on traction and execution rather than just ideas when pitching investors. Cryptocurrency and Dogecoin Commentary (Priority: 3/5): Jason shares his playful investment in Dogecoin ($4,000) as performance art, while cautioning that crypto is largely a 'religion' and 'Ponzi scheme.' He advises diversification and warns against overexposure. Career Advice and Breaking into VC/Growth (Priority: 3/5): Jason provides pathways to venture capital (business school, successful company experience, angel investing) and growth roles (self-learning via online resources). He emphasizes execution over ideas.

Key Arguments: Long-form podcast interviews (1-2 hours) provide deeper insights than short formats, allowing listeners to get to know decision-makers. Equity crowdfunding democratizes investment by allowing non-accredited investors to back startups, though accredited investor rules are based on income/wealth, not sophistication. Angel investing requires diversification (20+ bets) and patience (10-year horizon); one outlier can compensate for many losses. Startups should focus on traction (customers, product) before seeking investment; ideas alone are insufficient. EOD/SOD reports are effective remote management tools that reveal productivity and streamline replacement processes. Current early-stage valuations are inflated, requiring investors to be selective and focus on companies with strong traction. Cryptocurrency, especially Dogecoin, is speculative and should be treated as entertainment, not a serious investment. Direct-to-consumer startups need highly differentiated products and growth expertise to succeed.

Data Points: Podcast episodes per week: 4 episodes of This Week in Startups + All-In podcast - Jason produces four episodes of his main podcast weekly, plus the All-In podcast on Fridays. Episode number: Episode 1199 (Ken from Republic) - The episode with Ken Williams from Republic was episode 1199. Crowdfunding cap change: Increased from $1 million to $5 million - Regulation CF now allows companies to raise up to $5 million per year via equity crowdfunding. Sahil's raise: $5 million from 9,000 investors in one day - Sahil from Gumroad raised $5 million from 9,000 investors using equity crowdfunding. Arlen's raise: $5 million from 6,900 investors - Arlen from Backstage Capital raised $5 million from 6,900 investors. Podcast listeners: Hundreds of thousands per episode, ~10 million per year - Jason mentions the podcast's audience size. Inside.com domain purchase price: $65,000 - Jason bought the domain Inside.com for $65,000, estimating its current value at $5 million. Gigster investment: $500K-$750K from venture fund + millions from syndicate - Jason's fund invested $500K-$750K in Gigster, and his syndicate raised additional millions. Dogecoin investment: $4,000-$4,500 - Jason bought $4,000-$4,500 worth of Dogecoin as a joke. Angel investing advice: net worth allocation: 1% to 10% of net worth - Jason advises angel investors to allocate 1-10% of net worth to startup investments. Angel investing advice: bet size: $2,000 to $5,000 per investment - Jason recommends placing small bets of $2K-$5K each. Number of investments for diversification: 20 investments - Jason suggests making 20 investments to achieve diversification. Growth University subscription cost: $149 per month - Growth University charges $149 per month for courses. Meet Our Fund event: firms selected: 9 out of 50 in first week - Nine venture firms were selected for the Meet Our Fund event in the first week. Meet Our Fund event: signups: 1,000 in first week - 1,000 founders signed up for the Meet Our Fund event in the first week.

Pivotal Quotes: "I do this podcast this week in Startups for me primarily. I have to be interested in it. I have to want to go to episode 2000, right? We're here. At episode 1100 or something. And so I do the show primarily because of my own interest and curiosity." — Jason Calacanis: Explaining his motivation for producing long-form podcast content despite audience preferences for shorter formats. "If you can't write a five-minute start-of-day and a five-minute end-of-day, you're weak, you're worthless. You should literally go work for the post office. You have no ambition." — Jason Calacanis: Strongly advocating for EOD/SOD reports as a lightweight management tool, criticizing those who resist. "Doge is just a funny meme thing. And I bought $4,000, $4,500 worth of Doge today, and I started making fun of Doge all day long. ... giant disclaimer: don't make important life decisions based on memes and imaginary money." — Jason Calacanis: Describing his playful Dogecoin investment while warning listeners about the speculative nature of cryptocurrency.

Implications: For founders and investors, the transcript underscores the value of long-form content for deep insights, the democratization of startup investing via equity crowdfunding, and the necessity of traction over ideas. It also highlights the importance of disciplined portfolio construction and lightweight management practices in remote work environments.