VCs have always checked out when founders stop sending investor updates But today I think even more so The opportunity cost of investing time in a startup that can't be the next Cursor is high If you don't even get monthly updates anymore, well, you just write it off Send them. Especially when times are tougher.

VC investors have enabled the AI industry to bastardize revenue reporting. In the 2010s, SaaS companies popularized reporting the metric of Annual Run Rate because it was a reliable measure of long term, contractual revenues into the future. The key is that the revenues are contracted and guaranteed thru the contract life hence why forecasting it forward is appropriate. VCs have taken this to mean Annualized Run Rate when AI is concerned and where you take transactional/API revenue from the last month (or even last week in some cases) and forecast it forward. It’s insane that investors have enabled this to happen but it’s happened.

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VCs love saying they invest in “outliers.” Then they pass because: The market is too early. The founder is too unconventional. The idea sounds too crazy. The numbers don’t fit the model. You can’t brag about hunting outliers and then only invest in things that look normal. Normal is kind of the opposite.

VCs and boards need to accelerate the death of more software companies. Founders feel a moral obligation to keep going, but everyone kinda knows it’s not going anywhere… Free up investor capital and founder time to build something else for the AI world.