5.9.25
electroculture for ag, ai revolutionizing drug development, counter-UAS demand, market frenzy
Guess who's back? Back again. After last week's departure from quip, this week is all quip. It is so beautiful in California right now. Feels like summer. ☀️
Whats up this week…
Electroculture as avenue for maximizing ag yield: We use a f*ck-ton of fertilizer to grow the food we all survive and in my case deeply enjoy. In the US we use 20.5 million metric tons. That's like stacking 25 Golden Gate Bridges on top of each other — in raw steel! That is actually insane. And that doesn't include the global numbers here. Yield of course is inanely variable and in general, I don't love the idea of spraying shit chemicals all over the food that my now 6-month old child will eat. There has to be a better way. I am super interested in Electroculture which is to say using low-level electric currents to enhance plant growth and nutrient uptake. Feels like it is a future within grasp. There are some awesome companies working on this, but I've only talked to 1 or 2, so if you know of folks digging in here, would love to jam.
AI revolutionizing drug development process: At this point, this is incredibly consensus I know, but the opportunity is just so massive. The way drugs are developed will rapidly transform over our lifetime (and already have). There is a world in the not so distant future where drugs can be produced more rapidly/iteratively and diseases will be cured/treated quickly. And then most importantly, drugs will be highly personalized to an individuals genetic make up. Over the last couple weeks, I've been digging into this space and it's truly one of the most exciting applications of AI in just the far reaching positive impacts it can and will have.
Counter UAS demand from gov: As we all know, drones are THE thing being discussed and fretted over in warfare. A friend of mine pinged me on this recent solicitation from the government for what they define as "low-collateral defeat". Even more interestingly, its a call not just for overseas, but domestic as well. Drones are just as much a problem on shore as off. This is significant in that it shows a strong demand signal for startups on just what the DoD is looking to invest in. They want low collateral solutions that fall into three buckets: Kinetic, energy, and/or capture/entanglement. If you are building in DoD space, these solicitations can hold one of the keys to where you can find dollars. And let me tell, you the space of counter-UAS is ripping.
Market Frenzy: I feel like the weeks are flying by and deals are being done faster than ever. I find myself increasingly feeling like i'm on a treadmill, running in place never to get anywhere. I know VCs are often hesitant to say this, but I will. Capital is a commodity. Here we are. Say it with me now... I am a commodity. *Le Sigh*. When it feels like this, I always try to keep it in perspective and reflect on what gives me energy. And for me, it's working with and meeting incredible people who want to change the world. That part never changes, even if the demand for capital does...
Also, I very much agreed with this answer from a founder in response to my post last week, so incuding it here:
My answer to how you survive the valley of death is 1. Build a capital stack conducive to hardware development (debt), 2. In early days, focus on traction, not growth, 3. Don't rely primarily on SBIRs - pursue certifications and program of record, and 4. build for dual use (private/gov't).
I love this point around focus on TRACTION not growth. A bit counterintuitive but makes total sense.
And of course a tune to cap us off…
Stay weird. Stay curious.
-CBR