Happy Friday.
Don’t Copy, Localize
A century before “product-market fit” was a phrase, Shinjiro Torii built Japan’s biggest beverage empire on one bet: don’t sell the West’s product, rebuild it for your customer’s actual taste. Torii’s first whisky flopped because it mimicked Scotch — the win came only when he stopped imitating and started tuning flavor, packaging, and positioning to what Japanese drinkers actually wanted, a discipline Suntory repeated for a century (gin, coffee, the highball) instead of resting on one hit. This week, pick your most “obviously good” product decision — the one copied from a competitor or a Western playbook — and ask your team where it’s actually a misfit to your customer, not just underperforming. Do this, and you find the tweak that turns a stalled product into a category-definer, the way Suntory turned a failed whisky into a 127-year company by refusing to just copy what worked elsewhere. Town & Country (6 minutes)
Record Funding?
Record venture headlines are lying to you: in Q1 2026, four companies (OpenAI, Anthropic, xAI, Waymo) took 65% of all global VC dollars, meaning “best funding year ever” and “brutal year to raise” are both true at the same time, for different companies. The market didn’t shrink, it polarized — capital piled into a handful of giant rounds while the middle, where almost every real startup lives, thinned out, so benchmarking your raise against headline numbers is comparing yourself to a distorted average that no normal company actually hits. This week, stop pitching against “the market is hot” and instead pull the actual comp data for your stage and sector (seed/Series A round sizes and timelines, not blended totals) so you know the real bar you’re clearing, not the one skewed by nine-figure outliers. Do this and you stop misreading rejection as your problem when it’s actually a structural squeeze — and you position your raise for where the real capital in your bracket still is, instead of chasing a number built for a different game. Venture Curator (5 minutes)
Skip The Model Layer
Everyone assumes AI’s next fortune gets made competing with OpenAI and Anthropic at the model layer — but the smarter startup play right now is going one level beneath them, building the power, materials, and physical infrastructure the hyperscalers themselves are desperate for. The historical pattern is clear: growth never comes from intelligence alone, it comes from intelligence paired with power and coordinated action, and today America has AI intelligence in abundance but is critically short on the power grid and physical execution needed to actually deploy it — which means the bottleneck, not the breakthrough, is where the opportunity sits. This week, instead of asking “how do we build a smarter model,” ask your team “what physical, logistical, or infrastructure constraint is stopping our customers (or our industry) from actually using AI at scale” — and look one layer down the stack from where everyone else is competing. Do this and you position yourself in the part of the AI boom that’s still underbuilt and under-competed, riding hyperscaler-level demand without having to out-fund a hyperscaler. NFX (5 minutes)
Founder FAQ: Why Updating Investors Are Important for a Startup?
Most founders treat investor updates as a status report, but the highest-leverage line in every good template isn’t the metrics chart — it’s the specific ask, the moment you turn passive shareholders into active problem-solvers. Investors who stay engaged month to month are the ones who reinvest, refer new capital, and give real strategic help when you need it, but engagement only happens if you give them something concrete to act on, not just numbers to skim. This week, rewrite your next update so it ends with 2-3 named, specific requests (a warm intro to a named type of person, feedback on a stated problem, a decision you’re stuck on) instead of a vague “let me know if you can help.” Do this consistently and your cap table stops being a spreadsheet of names and starts being a bench of people actually working your problems with you — which shows up fast when you’re back in market for your next round. Westaway (4 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term-by-term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
Built By Founders for Founders
I co-founded my first startup with friends in 2007. As a founder, I struggled to find an affordable law firm that was designed for early-stage startups. So, I created one myself. Westaway is a law firm built by founders, for founders. If you’re ready to ditch the outdated billable hour model and try a new approach to legal services that saves you time and money, let’s talk. I’d love to jump on a 15-minute call to show you how we can make legal work smooth, fast and cost-effective for your startup. Schedule a call with me now.
The barbell thesis in venture mirrors something happening in talent right now too, mega-teams at frontier labs on one end, tiny 2-3 person AI-native shops on the other, and almost nothing in the 20-50 person 'traditional startup' middle. I think that's because the middle used to exist to manage coordination overhead, and AI tooling just removed most of the reason for that overhead to exist. Curious if you're seeing the same barbell show up in how founders are structuring cap tables, not just headcount.