A valuable company creates a certain amount of value for the world and captures a percentage of that value; these two factors are independent.

Most of the value in tech companies exists far in the future, often beyond a decade, which is why growth rates are often overvalued compared to long-term durability.

Valuation matters, but it shouldn't be the sole focus; understanding the potential return on investment is crucial, as a single successful investment can significantly outweigh losses from others.

Investors often chase opportunities in startups, hoping to profit from future growth, which can lead to inflated valuations that may not be sustainable.

Make sure to conduct your own analysis of the company's health rather than relying solely on external hype or authority figures.

Founders often don't understand what their analytics numbers represent, so it's crucial to know your data before relying on it.

AI companies often struggle to define the value they generate, leading to uncertain pricing strategies as they experiment with different models.

Don't let others finesse you into thinking that a small equity share is a great deal, especially if the company isn't growing or generating revenue.

Don't over-optimize for valuation caps when raising money on SAFEs, as the difference in ownership percentages may not be significant, and the focus should be on making the company successful instead.