How VCs Really Make Money

How VCs Really Make Money

AI Creates More Jobs

In This Edition:

  • AI Creates More Jobs
  • How VCs Really Make Money
  • Bay Area Dominates Global AI Funding
  • How Prompt Politeness Affects LLM Accuracy
  • Walmart x OpenAI

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AI Creates More Jobs

AI Won’t Take Your Job — It Will Transform It

Will AI wipe out jobs — or create more of them?

You’ve heard the doomers: mass unemployment, 20% jobless rates, half of all white-collar jobs gone in five years. You’ve heard the dismissers too: “AI is just hype, not real AGI.”

Both are wrong.

History shows us something different: every time technology makes work cheaper, demand explodes.

  • Containerization (1960s): Dock jobs fell, but global trade boomed — birthing trillion-dollar logistics empires.
  • Cloud Computing (2010s): Servers vanished, but DevOps engineers and cloud architects became indispensable.
  • Radiologists (2020s): Predicted to disappear. Instead? AI made scans cheaper, demand soared, and radiologists are more needed than ever.

This is the Jevons Paradox at play: efficiency doesn’t kill work — it reveals massive latent demand.

AI won’t erase jobs. It will refactor them: automating rote tasks, while humans take on higher-value work. Already, YC-backed startups like Aoka (AI sales agents) and Tenor (healthcare paperwork automation) are freeing people for more impactful roles.

The real question isn’t whether AI will take jobs. It’s whether you’ll be the founder or builder who sees the opportunity to create the next wave of work.

Watch the full breakdown here — and see how founders can seize the AI shift.


How VCs Really Make Money

How VCs Really Get Rich (Founders Should Know This)

It’s not just about big checks and bold bets — there’s a hidden economic engine behind every venture fund. From LPs and GPs to management fees and carried interest, understanding VC mechanics can change how you view startups, investments, and exits.

This week’s feature breaks down venture capital economics in the simplest way possible — perfect for founders, operators, and aspiring investors.

Key Insights

  • The Power Law Play: Out of 20 bets, most crash—but one breakout 200x win can repay the entire fund (and more).
  • LPs vs GPs: The silent backers (LPs) fund the show, while the dealmakers (GPs) call the shots—splitting profits only after LPs get their money back, with GPs pocketing up to 30% of the upside.
  • Fees & Carry Secrets: Those 2–3% annual fees keep the lights on—but the real fortune lies in carried interest, where performance, not promises, pays off big.

For founders, operators, and emerging investors, mastering VC economics is key to understanding what drives funding decisions.

Read the full breakdown & explore the course here.


Bay Area Dominates Global AI Funding

The Next Silicon Valley? Still Silicon Valley

Despite predictions of its decline, the Bay Area continues to dominate global startup innovation. Data shared during SF Tech Week by a16z reveals that Silicon Valley’s ecosystem not only endures—it’s accelerating its lead in funding, talent, and startup success rates.

Key Insights:

  • Startup Density: 1 in 4 top-decile U.S. startups—and 1 in 8 globally—operate within 50 miles of the Bay Area.
  • Funding Surge: The region now captures 58% of all U.S. startup funding in 2025, up sharply from 35% in 2021.
  • Momentum Loop: AI-driven exits are creating a flywheel—successful founders reinvest, launch new ventures, and attract more capital.
  • Talent Magnet: The Bay remains the top destination for top-tier founders, engineers, and operators, fueled by proximity to Big Tech and a world-class innovation infrastructure.

For investors, it’s where the best returns are found. For founders, it’s where success odds multiply.

Explore the full analysis to see why Silicon Valley remains the world’s startup capital—and why it’s not slowing down anytime soon.


How Prompt Politeness Affects LLM Accuracy

Founders: This Simple Prompting Trick Boosts Accuracy

A new study reveals a surprising twist in how large language models respond to human tone. Contrary to expectations, aggressive or direct prompts appear to improve AI accuracy—especially in advanced models like ChatGPT-4o.

Key Insights:

  • Study Scope: Researchers tested 250 prompts across math, science, and history—each repeated 10 times using varying tones.
  • Results: “Very rude” prompts achieved 84.8% accuracy, outperforming “very polite” ones at 80.8%.
  • Model Behavior: Earlier systems like GPT-3.5 showed no tone-based variation—suggesting the effect is unique to newer architectures.
  • Interpretation: The improvement may stem from how AI models interpret urgency and assertiveness in user intent.

This discovery challenges assumptions about how humans should communicate with AI—hinting that tone could shape performance.

Download the full report and explore expert resources on effective prompting at here.️


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Startups Buzz

The Secret Playbooks VC Funds Actually Read

Unlock insider reports and data visualizations that investors consult—get ahead of the curve with actionable market signals and rare analysis to shape your pitch and product roadmap. Miss this, and you’ll never see what’s fueling the hottest deals.

Get the insights

Are You Making the ‘Retention Mistake’ Killing Saas Startups?

Learn directly from growth veterans why most SaaS products lose users, and access behavioral frameworks to start fixing churn. One overlooked idea here could mean the difference between scaling and stalling.

Discover retention secrets

Real Stories: Indie Founders Who Bootstrapped to 7 Figures

Get the raw truth from solo founders who went from zero to profitable, with breakdowns of hacks, fails, and tactics no VC will tell you. Don’t just read the headlines—see the blueprints that actually worked.

Read indie founder blueprints

AI Use-Cases You’ve Never Tried (Yet!)

Most startups are missing out on breakthrough AI tools that save money and time—grab inside examples and how-tos from real founders who’ve unlocked next-level productivity. These experiments can change your company’s trajectory overnight.

Unlock exclusive AI tips

What YC Graduates Wish They Knew Earlier

Go behind the scenes with advice straight from Y Combinator-backed founders on fundraising, pivots, and team dynamics. Get the gritty details that helped skyrocket companies like Airbnb—plus pitfalls to dodge before your next investor call.

See YC founder advice


WEB PICKS

OpenAI’s $1 Trillion Gamble Begins
OpenAI plans to spend $1 trillion in just five years, even though 70% of its $13B revenue still comes from $20 ChatGPT Plus subscribers. Can the math possibly work?

Google & Yale Just Found a New Cancer Breakthrough Using AI
A joint AI model, C2S-Scale 27B, uncovered and validated a new way to make tumors more visible to the immune system — a massive leap for cancer research.

⚠️ AI in Schools Is Creating New Risks for Students
A new study links the rise of classroom AI tools to growing threats — from data breaches and deepfakes to unsafe chatbot interactions and system failures.

OpenAI Forms Expert Council to Protect Human Well-Being
Eight leading psychologists and researchers are now advising OpenAI on how to make ChatGPT and Sora more emotionally healthy and ethically aligned.

Walmart x OpenAI: ChatGPT Can Now Do Your Shopping
Walmart just integrated directly into ChatGPT — meaning you can browse, add to cart, and check out without ever leaving your chat window.

Oracle’s AI Dream: Data Centers That Power the Future of Everything
Larry Ellison envisions AI agents transforming industries — from hospitals automating financing to farms growing AI-designed crops that fix their own nitrogen.