Smash Notes

Back to Inside $17B Index Ventures: Anthropic, Wiz, Datadog & the Future of AI, with Shardul Shah.

What Is the Biggest Problem Founders Face Now?

Shardul Shah says the biggest problem founders face is expressing themselves, and the Cartesia founder was right to ignore advice to shut a successful part of the business down.

He joined the board of Cartesia, a voice AI business, about a year to a year and a half ago. At first he gave conventional wisdom: do very few things and do them with excellence. Once he knew the founder, he saw an explorer and an adventurer, someone whose way of expressing himself is to explore and adventure. He told the founder not to run part of the business, to shut it down even though it was successful, to burn the boats, and to focus. The founder ignored him. The perspective lit a fire inside him. He got upset and wanted to prove him wrong, and he was completely right. Disagreeing and giving perspective came easily, alongside total belief to support any decision the founder wanted to make.

When entrepreneurs get supported and seen for who they are, the other work takes care of itself. Compute, where to focus the business, who to hire and when and where, and how to scale with what level of aggression into a crowded, difficult, or confusing market all follow.

Transcript

Inside $17B Index Ventures: Anthropic, Wiz, Datadog & the Future of AI ·

Sourcery

More from this episode

  1. How Has Index Ventures Stayed Focused on Taste?Shardul Shah says enormous attention to taste has been true for Index Ventures from the beginning through today.
  2. Why Does Index Ventures Back Founders Before They Have a Business Plan?Shardul Shah says Index Ventures backed the founders of Wiz before they had a business plan. The investment happened on his birthday.
  3. Why Do Startup Valuations Keep Rising?Shardul Shah says startup valuations keep rising because more capital is moving into private markets than there are giant outcomes to own.
  4. How Much Did Index Ventures Invest in Wiz?Shardul Shah says Index Ventures invested over $250 million in Wiz over time.
  5. Why Can't Investors Time an IPO?Shardul Shah says investors cannot time an IPO. He learned that from the New York Stock Exchange and its media partner: you can never time the window.
  6. How Did Index Ventures' 2012 Fund Perform?Index Ventures' 2012 fund had an 11x DPI as of January 2026, Molly O'Shea says, compared with an industry average of 1.5x.

People

More answers like this

The other side

Related episodes

Plays from this note through the rest of the episode.

Weekly highlights

One letter a week.

The notes worth hearing, with the minute they were said.