When a VC decides to invest in a company, they write up a document called the “Investment Memo” to convince their partners that the decision is sound. This document is a thorough analysis of the startup...
We aren’t VCs (we’ve explained some of our differences before), but as founders, we’ve seen the investment memos of our own companies — and we always appreciated the dispassionate analysis of the good, the bad, and the ugly.
These memos size the market, contextualize early product traction and situate the young company amongst its competitors. All the content that a startup should be including in their pitch deck. One benefit of our studio model, where we originate ideas ourselves, is that we start this analysis even before we hire a team or build out the minimum viable product. The Solution Memo is integral to how we determine if an opportunity is attractive.
At super{set} we look for data-driven company ideas, an opportunity space that’s as familiar as a SELECT * FROM superset_schema.ideas; query. In a world where we are still early in the data-fueled revolution, where we’ve only scratched the surface of the cloud-enabled TAM, there is an immense opportunity set across industries. From this “superset”, we know a data-driven problem when we see it and it is straightforward (for us, with 20+ years of experience as serial founders) to determine whether a potential solution is obvious or obscure.
It’s simple for us to tell if an idea passes the sniff test and if it can survive the reflective equilibrium of being passed back and forth between our team. The hard work is then lifting the hood to determine if the opportunity truly is groundbreakingly, world-changing-ly attractive or is ultimately unappealing. We start by asking a thorough set of questions to fully surround the problem and slowly build conviction:
The summation of these key questions is an artifact we call the solution memo — our version of the VC’s investment memo. The goal of this memo is to develop a dispassionate thesis on a formation problem and the exact solution that will solve it, including the data-driven “secret” and the outline of the unassailable technical moat behind the product.
Obscure opportunities take more work than the obvious ones, but we still put pen to paper on solutions that look obvious to make sure we aren’t getting high on our own supply. But not every opportunity goes from solution memo to full-fledged super{set} portfolio company. How do we decide which opportunities have the most potential?
With the solution memo in hand, we make a go or no-go decision. The solution memo is the tool we use to build our internal conviction, and we ultimately gauge the attractiveness of an opportunity through a concept we call market-message fit.
You’ve heard of product-market fit. When you have product-market fit, you have a product in hand that can satisfy that market — as evidenced by the number of users or paying customers. Money is coming in from customers hand-over-fist, or the user base is growing as fast as your infrastructure can handle.
Market-message fit is the proto product-market fit. It is determining product-market fit before you even have the product. Or, at least, before you’ve built the product.
“Impossible!” you say. Not so. If we’ve researched the solution and compiled the dispassionate Solution Memo then we know everything we need to determine product-market fit. There are only two parts:
From there, we iterate. We first persuade ourselves that we aren’t high when we’re talking about these solutions that come from scratch. Then we talk to people outside our circle — oftentimes going back to the same people from whom we turfed up pain in the beginning. Of course, don’t take in poor signal — the point here isn’t to ask for feedback, the point is an iterative communications process that forces clear thinking and articulation. It also enables us to abandon bad ideas more quickly and with unsentimental attachment
A prototype might be helpful at this stage but one isn’t necessary. We think of these as “disposable software.” Could be as simple as a Figma prototype, or you can sling some code to help potential users understand what we’re talking about. It isn’t a scalable product, just a tool for market-message fit. Once we have this clarity and precision the product roadmap organically falls into place and we see how the market is unfolding and how to stage and sequence the product accordingly — we must keep asking ourselves “why now?”
Product-market fit is great because anyone new to entrepreneurship can figure out if they have it — you’re either making money/growing users, or you aren’t. That said, you need a product in place. With market-message fit, you are pre-product. Market-message fit gives you the statements of pain that ultimately inform the product strategy that gets you to product-market fit!
The flip side is that not everyone can approach entrepreneurship through the lens of market-message fit. At super{set}, we have decades of experience as serial entrepreneurs that have gone deep into the product, and we have the framework and infrastructure for company-building that the startup studio facilitates. We combine the market’s responses to our gut feel developed over dozens of iterations. If you’re a first-time entrepreneur not at super{set} — DON’T try and pursue market-message fit!
We aren’t dilettantes latching on to the first ideas that come to us without due diligence, but we also aren’t over-engineering the company creation process or becoming lovestruck with convoluted, under-researched themes. We know that our strength as technologists is in building data-driven companies. Luckily, we see data-driven opportunities everywhere — across industries the concepts of data capital and data network effects apply again and again. Fads come and go, but data is eternal.
Transcript
In the first episode of The Closed Session, meet Tom Chavez and Vivek Vaidya, serial entrepreneurs and podcast hosts.
read moreIn the second episode of The Closed Session, Tom and Vivek discuss the framework for starting your own company from scratch, and the three dimensions that should be taken into account.
read moreYou’ve decided to launch a business, but before you hurtle blindly into the breach, you need a bulletproof plan and a perfect pitch deck to persuade your co-founders, investors, partners, and employees to follow you into the unknown.
read moreIn this episode of The Closed Session, Tom and Vivek talk about dilution, methods, mindset, benchmarks and best practices for raising investment capital for a new tech startup.
read moreNow that you've written the business plan and raised money, it's time to recruit your early team. In this episode, Tom and Vivek cover the do's and dont's of building a high-output team - who to hire, how to build chemistry and throughput, how to think about talent when your company is a toddler versus when it's an adolescent.
read moreWelcome to Season 2 of The Closed Session! In this first episode of 2020, Tom and Vivek talk about the five companies super{set} launched in 2019 and the lessons they’re learning as they go.
read more
Tom and Vivek talk about inclusion and reflect on their personal experiences as brown guys in tech. Inclusion feels like a moral imperative, but does it really make for stronger, better companies? Are there unintended consequences of acting on good intentions to 'fix' an inclusion problem at a company? Why is tech so lacking in diversity, and what can we do to get it right?
read moreWe are living in a time of extraordinary concern about the negative consequences of online platforms and social media. We worry about the damage interactive technologies cause to society; about the impact to our mental health; and about the way that these platforms and their practices play to our most destructive impulses. Too often, the experiences we have online serve only to polarize, divide, and amplify the worst of human nature.
read more
This post was written by Habu software engineer, Martín Vargas-Vega, as part of our new #PassTheMic series.
read moreThis post was written by Ketch Developer Advocate, Ryan Overton, as part of our #PassTheMic series.
read moreThis post was written by Ketch Data Privacy & Compliance Specialist, Jocelyn Brunson, as part of our #PassTheMic series.
read moreThis post was written by Ketch Sales Director, Sheridan Rice, as part of our #PassTheMic series.
read more
The super{set} studio model for early-stage venture It is still early days for the startup studio model. We know this because at super{set} we still get questions from experienced operators and investors. One investor that we’ve known for years recently asked us: “you have a fund — aren’t you just a venture capital firm with a different label?”
read more
This post was written by MarkovML Co-Founder, Lindsey Meyl, as part of our #PassTheMic series.
read moreWhere do the ideas come from? How do we build companies from scratch at super{set}?
read more
Coming up with new company ideas is easy: we take the day off, go to the park, and let the thoughts arrive like butterflies. Maybe we grab a coconut from that guy for a little buzz. While this describes a pleasant day in San Francisco, it couldn’t be further from the truth of what we do at super{set}. If only we could pull great ideas out of thin air. Unfortunately, it just doesn’t work that way.
read more
The wheel. Electricity. The automobile. These are technologies that had a disproportionate impact on the merits of their first practical use-case; but beyond that, because they enabled so much in terms of subsequent innovation, economic historians call them “general-purpose technologies” or GPTs...
read more
In our last post, we discussed how data is the new general-purpose technology and that is why at super{set} we form data-driven companies from scratch. But new technologies are a promise, not a sudden phase change.
read moreWhen a VC decides to invest in a company, they write up a document called the “Investment Memo” to convince their partners that the decision is sound. This document is a thorough analysis of the startup...
read moreThis post was written by Ketch Solutions Engineer, Sahiti Surapaneni, as part of our #PassTheMic series.
read moreWhat does it mean to be a super{set} co-founder and who do we look for? Why is the Head of Product the first co-founder we bring on board?
read more
Considered by some to be “America’s Second Independence Day,” Juneteenth has only recently entered the national zeitgeist. Celebrated on the third Saturday in June, it became a federal holiday just last year under President Joe Biden. Many companies are left wondering how to acknowledge the holiday. We sat down with Eskalera’s co-founder Dr. Tolonda Tolbert to get her take.
read more
Has someone looking to make a key hire ever told you that they are after “coachability”? Take a look at the Google ngram for “coachability” — off like a rocket ship since the Dot Com bubble, and it’s not even a real word! Coaching is everywhere in Silicon Valley...
read more
At super{set}, we stand side-by-side and pick up the shovel with our co-founders. Our first outside co-founder at a super{set} company is usually a Head of Product. Let’s unpack each portion of that title....
read more
Pankaj Rajan, co-founder at MarkovML, describes his Big Tech and startup experience and his journey to starting a company at super{set}.
read more
The decision to start a company – or to join an early stage one – is an act of the gut. On good days, I see it as a quasi-spiritual commitment. On bad days, I see it as sheer irrationality. Whichever it is, you’ll be happier if you acknowledge and calmly accept the lunacy of it all...
read moreTom and Vivek describe how building the best product is like planning the perfect heist: just like Danny Ocean, spend the time upfront to blueprint and stage, get into the casino with the insertion product, then drill into the safe and make your escape with the perfect product roadmap.
read more
Tom and Vivek discuss what the very first customers of a startup must look and act like, the staging and sequencing of setting up a sales operation with a feedback loop to product, and end with special guest Matt Kilmartin, CEO of Habu and former Chief Revenue Officer (CRO) of Krux, for his advice on effective entrepreneurial selling.
read more
Reflections after a summer as an engineering intern at super{set}
read more
Gal Vered of Checksum explains his rationale for leaving Google to co-found a super{set} company.
read more
The era of easy money - or at least, easy returns for VCs - is over. Tom Chavez is calling for VCs to show up in-person at August board meetings, get off the sidelines, and start adding real value and hands-on support for founders.
read more
Tom and Vivek describe what the ideal CEO looks like in the early stage, why great product people aren’t necessarily going to make great CEOs, and what the division of labor looks like between the CEO and the rest of the early team. They then bring on special guest Dane E. Holmes from super{set} company Eskalera to hear about his decision to join a super{set} company and his lessons for early-stage leadership.
read more
o11y - What is it? Why is it important? What are the tools you need? More importantly - how can you adopt an observability mindset? Habu Software Architect Siddharth Sharma reports from his session at super{summit} 2022.
read more
Othmane Rifki, Principal Applied Scientist at super{set} company Spectrum Labs, reports from the session he led at super{summit} 2022: "When Inference Meets Engineering." Using super{set} companies as examples, Othmane reveals the 3 ways that data science can benefit from engineering workflows to deliver business value.
read more
Head of Infrastructure at Ketch, and Kapstan Advisor, Anton Winter explains a few of the infrastructure and DevOps headaches he encounters every day.
read moreTom and Vivek jump on the pod for a special bonus episode to call BULLSHIT on VCs, CEOs, the “categorical shit,” and more. So strap yourselves in because the takes are HOT.
read more
The Move Accelerates the Rapidly Growing Startup Studio’s Mission to Lead the Next Generation of AI and Data-Driven Market Innovation and Success
read more
Announcing Jon Suarez-Davis (jsd) as super{set}’s Chief Commercial Officer: jsd tells us in his own words why he's joining super{set}
read moreTom and Vivek describe the lessons learned from fundraising at Rapt in 1999 - the height of the first internet bubble - through their experience at Krux - amid the most recent tech bubble. After sharing war stories, they describe how super{set} melds funding with hands-on entrepreneurship to set the soil conditions for long-term success.
read more
Tom and Vivek have come full circle: in this episode they’re talking about closed session board meetings in The {Closed} Session. They discuss their experience in board meetings - even some tense ones - as serial founders and how they approach board meetings today as both co-founders and seed investors of the companies coming out of the super{set} startup studio.
read more
Arthur Patterson, founder of venture capital firm Accel, sits down for a fireside chat with super{set} founding partner Tom Chavez as part of our biweekly super{set} Community Call. Arthur and Tom cover venture investing, company-building, and even some personal stories from their history together.
read moreArthur Patterson, the founder of venture capital firm Accel, sits down for a fireside chat with super{set} founding partner Tom Chavez as part of our biweekly super{set} Community Call.
read more
This month we pass the mic to Sagar Gaur, Software Engineer at super{set} MLOps company MarkovML, who shares with us his tips for working within a global startup with teams in San Francisco and Bengaluru, India
read more
Arthur Patterson, legendary VC and founder of Accel Partners, sits down with Tom Chavez to discuss insights into company building. Tom and Vivek review the tape on the latest episode of The {Closed} Session.
read more
Chris Fellowes, super{set} interned turned full time employee at super{set} portfolio company Kapstan, gives his 7 recommendations for how to turn an internship into a job at a startup.
read more
Kicking off the fourth season of the {Closed} Session podcast with a great topic and guest: Frida Polli, CEO and co-founder of pymetrics, which was recently acquired by Harver, joins us to talk about the critical role that technology and specifically AI and neuroscience can play in eliminating bias in hiring and beyond.
read more
Obsessive intensity. Pack animal nature. Homegrown hero vibes. Unyielding grit. A chip on the shoulder. That's who we look for to join exceptional teams.
read more
Go-to-market has entered a new operating environment. Enter: RevOps. We dig into the next solution space for super{set}, analyzing the paradigm shift in GTM and the data challenges a new class of company must solve.
read more.jpg)
We are delighted to share our new episode of the {Closed} Session podcast with guest Alyssa Hutnik. Alyssa looms large in the privacy world, and she’s been thinking deeply about the intersections of data, technology and the law for nearly two decades. She’s also the Chief Privacy and Data Security Architect at Ketch, a super{set} company, as well as a lawyer. Hope you enjoy the episode!
read more
super{set} startup studio portfolio company’s seed funding round was led by Forerunner Ventures with participation from Ulu Ventures Raise will enable boombox.io to accelerate product development on the way to becoming the winning creator platform for musicians globally
read more
On the heels of boombox.io's $7M seed fundraise led by Forerunner, Tom Chavez and Vivek Vaidya sit down with boombox co-founders India Lossman and Max Mathieu for a special episode straight from super{summit} 2023 in New Orleans!
read moreo11y - What is it? Why is it important? What are the tools you need? More importantly - how can you adopt an observability mindset? Habu Software Architect Siddharth Sharma reports from his session at super{summit} 2022.
read moreThe wheel. Electricity. The automobile. These are technologies that had a disproportionate impact on the merits of their first practical use-case; but beyond that, because they enabled so much in terms of subsequent innovation, economic historians call them “general-purpose technologies” or GPTs...
read moreThe super{set} studio model for early-stage venture It is still early days for the startup studio model. We know this because at super{set} we still get questions from experienced operators and investors. One investor that we’ve known for years recently asked us: “you have a fund — aren’t you just a venture capital firm with a different label?”
read moresuper{set} startup studio portfolio company’s seed funding round was led by Forerunner Ventures with participation from Ulu Ventures Raise will enable boombox.io to accelerate product development on the way to becoming the winning creator platform for musicians globally
read moreOthmane Rifki, Principal Applied Scientist at super{set} company Spectrum Labs, reports from the session he led at super{summit} 2022: "When Inference Meets Engineering." Using super{set} companies as examples, Othmane reveals the 3 ways that data science can benefit from engineering workflows to deliver business value.
read moreThis post was written by Habu software engineer, Martín Vargas-Vega, as part of our new #PassTheMic series.
read moreThis post was written by Ketch Data Privacy & Compliance Specialist, Jocelyn Brunson, as part of our #PassTheMic series.
read moreThis post was written by Ketch Solutions Engineer, Sahiti Surapaneni, as part of our #PassTheMic series.
read moreGo-to-market has entered a new operating environment. Enter: RevOps. We dig into the next solution space for super{set}, analyzing the paradigm shift in GTM and the data challenges a new class of company must solve.
read moreWhen a VC decides to invest in a company, they write up a document called the “Investment Memo” to convince their partners that the decision is sound. This document is a thorough analysis of the startup...
read moreArthur Patterson, founder of venture capital firm Accel, sits down for a fireside chat with super{set} founding partner Tom Chavez as part of our biweekly super{set} Community Call. Arthur and Tom cover venture investing, company-building, and even some personal stories from their history together.
read moreAt super{set}, we stand side-by-side and pick up the shovel with our co-founders. Our first outside co-founder at a super{set} company is usually a Head of Product. Let’s unpack each portion of that title....
read moreThis month we pass the mic to Sagar Gaur, Software Engineer at super{set} MLOps company MarkovML, who shares with us his tips for working within a global startup with teams in San Francisco and Bengaluru, India
read moreChris Fellowes, super{set} interned turned full time employee at super{set} portfolio company Kapstan, gives his 7 recommendations for how to turn an internship into a job at a startup.
read morePankaj Rajan, co-founder at MarkovML, describes his Big Tech and startup experience and his journey to starting a company at super{set}.
read moreAnnouncing Jon Suarez-Davis (jsd) as super{set}’s Chief Commercial Officer: jsd tells us in his own words why he's joining super{set}
read moreComing up with new company ideas is easy: we take the day off, go to the park, and let the thoughts arrive like butterflies. Maybe we grab a coconut from that guy for a little buzz. While this describes a pleasant day in San Francisco, it couldn’t be further from the truth of what we do at super{set}. If only we could pull great ideas out of thin air. Unfortunately, it just doesn’t work that way.
read moreThe era of easy money - or at least, easy returns for VCs - is over. Tom Chavez is calling for VCs to show up in-person at August board meetings, get off the sidelines, and start adding real value and hands-on support for founders.
read moreObsessive intensity. Pack animal nature. Homegrown hero vibes. Unyielding grit. A chip on the shoulder. That's who we look for to join exceptional teams.
read moreThis post was written by Ketch Sales Director, Sheridan Rice, as part of our #PassTheMic series.
read moreIn our last post, we discussed how data is the new general-purpose technology and that is why at super{set} we form data-driven companies from scratch. But new technologies are a promise, not a sudden phase change.
read moreReflections after a summer as an engineering intern at super{set}
read moreThis post was written by MarkovML Co-Founder, Lindsey Meyl, as part of our #PassTheMic series.
read moreGal Vered of Checksum explains his rationale for leaving Google to co-found a super{set} company.
read moreThe Move Accelerates the Rapidly Growing Startup Studio’s Mission to Lead the Next Generation of AI and Data-Driven Market Innovation and Success
read moreThis post was written by Ketch Developer Advocate, Ryan Overton, as part of our #PassTheMic series.
read moreThe decision to start a company – or to join an early stage one – is an act of the gut. On good days, I see it as a quasi-spiritual commitment. On bad days, I see it as sheer irrationality. Whichever it is, you’ll be happier if you acknowledge and calmly accept the lunacy of it all...
read moreHas someone looking to make a key hire ever told you that they are after “coachability”? Take a look at the Google ngram for “coachability” — off like a rocket ship since the Dot Com bubble, and it’s not even a real word! Coaching is everywhere in Silicon Valley...
read moreWe are living in a time of extraordinary concern about the negative consequences of online platforms and social media. We worry about the damage interactive technologies cause to society; about the impact to our mental health; and about the way that these platforms and their practices play to our most destructive impulses. Too often, the experiences we have online serve only to polarize, divide, and amplify the worst of human nature.
read moreHead of Infrastructure at Ketch, and Kapstan Advisor, Anton Winter explains a few of the infrastructure and DevOps headaches he encounters every day.
read moreConsidered by some to be “America’s Second Independence Day,” Juneteenth has only recently entered the national zeitgeist. Celebrated on the third Saturday in June, it became a federal holiday just last year under President Joe Biden. Many companies are left wondering how to acknowledge the holiday. We sat down with Eskalera’s co-founder Dr. Tolonda Tolbert to get her take.
read more