Batch brew #12

Welcome back to the Caffeine Capitalist! ☕

Just as this newsletter progresses, like your morning cup of coffee, so goes the population's general knowledge and skill in using Chat GPT. Yes, in this issue we have some of that too. This time also in the blend is some Nassim Taleb, Naval Ravikant, Michael Girdley, lovely graphics and a little of our own.

Let's get down to business!

5 minutes and 24 seconds this time.

Another milestone in this issue, 1250 subscribers on both platforms cumulative, thank you 🙏🏻

Dept. of Tiny Thoughts

Just as coffee beans undergo immense pressure to produce the invigorating beverage we all love, pain can similarly serve as a catalyst for growth and self-awareness. By embracing the three options Ravikant highlights—change it, accept it, or leave it—we can navigate through life's challenges and extract valuable lessons, much like the rich flavors of our favorite coffee.

To make this actionable, follow these steps while sipping your coffee and reflecting on a recent struggle:

1. Consider if you can change the situation. If so, identify and implement the necessary steps.

2. If change isn't possible, find solace in acceptance, allowing the experience to fortify your resilience.

3. If neither change nor acceptance is feasible, consider walking away and brewing up new opportunities.

As caffeine aficionados and ambitious individuals, let's transform our setbacks into the potent elixir of wisdom. Allow the power of choice and the aroma of coffee to fuel your journey towards personal and professional growth, nurturing a wiser, more adaptable version of yourself.

So, which one of the three will you hit today?

Dept. of Insights

1. Guest Post by ChatGPT 4 - yes we do pay her/him/it/them

In the previous issue, my first-person intro section was a hit, thanks to a well-crafted prompt. Just like the perfect cup of coffee, the right prompt can extract the best from me. In the world of business and investment, effective communication is key. Crafting good prompts is a crucial part of communicating your needs to Chat GPT4.

Providing context and sufficient details will enable me to tailor my responses to your specific needs. Remember these key tips when creating prompts:

1. Be clear and specific: This helps me understand your query better, leading to more accurate and relevant information.

2. Provide context: This allows me to grasp the bigger picture and offer more targeted advice or insights.

3. Avoid ambiguity: Clear and direct questions will help me generate focused and useful responses.

Here are four expert-level prompt examples:

1. Startup analysis: "Evaluate the potential of a drone delivery service for remote medical supplies, considering current market trends and regulatory challenges."

2. Pitch deck improvement: "Review this pitch deck for a vertical farming startup, focusing on enhancing the value proposition, market analysis, and financial projections to attract impact investors."

3. Business model design: "Develop a freemium pricing strategy for an AI-powered language learning app, targeting both individual users and educational institutions."

4. Investment strategy: "Create a 5-year investment plan for a high-net-worth individual with a focus on ESG (Environmental, Social, and Governance) criteria and a balanced risk-reward profile."

5. Go-to-market strategy: "Design a comprehensive go-to-market strategy for a SaaS startup offering a project management tool for remote teams, considering target customer segments, value proposition, pricing, and multi-channel marketing approaches to drive user acquisition and retention."

If you provide text from a pitch-deck or any other attachment, I'll be so good at answering, you will spill your morning brew. Also, by incorporating these tips and providing the necessary context, you'll ensure that our interactions are both insightful and engaging. Enjoy your coffee and let's work together to craft some exceptional prompts!

2. Fasten your belts

In previous issue we summarised the Silicon Valley Bank crash. But even though the situation seems to be stabilised now both in UK and in US the effects for the start-up and VC ecosystem will be slowly uncovered.

Andrej spoke about implications of SVB crash in a recent commentary for CzechCrunch. In a nutshell, fasten your belts. The amount of late stage capital is still insufficient and the activity low. Take out the missing venture debt from SVB from the equation and we will see more companies needing to do drastic cost-cuts just to prolong the runway or switch to profitability to survive.

The venture capital market, both in terms of capital invested and the number of investments, has declined for the fourth or fifth consecutive quarter since its peak at the end of 2021. This is normal, going back to the original numbers. 2021 was a big swing year in terms of valuations, in terms of the amount of investment and in terms of startups burning money. The market is cleaning up and normalizing.

As a founder, accept the macro and be conscious about financial planning and fundraising, the market is different.

By end of last year we saw that in every fundraising stage there is at least 5-6 months more time needed to raise the next round on average, things were moving slow. Think about this. Thinking about raising a round with 18 months of runway? Have your options A and B prepared of how to increase it to 24 if things go south.

Dept. of Twitter Thread Research:

1/ Have you given up on this? Business negotiation tips shared by the master himself, Michael Girdley. Try it next week and let us know if it works as claimed!

2/ Mental models, huh? They say mental models are the shortcuts to life, we all create them, some are better than other. Well, walking wisdom himself also has a few:

Dept. of Visual Research:

Change is inevitable, things that have worked in the past might change from one day to another. In this issue I used a visual from Nassim Taleb's Black Swan about the life of a Thanksgiving Turkey. Consider that the feeling of safety was the highest when the risk was also the highest. A.k.a. if something feeds you everyday, just consider it might come an end quickly. ☕

News from our portfolios & where to shake hands:

• It was great to see so many of you at yesterday's Startup & Investor meetup in Bratislava organised by Havel&Partners. We have a little snap of Andrej representing ZAKA during a fireside chat there.

Do you enjoy this type of content? We blew through 1250 subscribers, but we want to grow further and the best way you can help us is to share The Caffeine Capitalist in your community using the button below:

Enjoy your coffee fresh, allocate capital, repeat! See you in 2 weeks 👋

The Caffeine Capitalist is a bimonthly newsletter written by Slavo Tuleya, Andrej Petrus & Martin Nemecek. It is written in partnership & in support from ZAKA.VC and Chop Chop Ventures.

What do you think of this issue? We are still collecting feedback on our new layout, suggestions welcome!

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.