In partnership with

🫅 People & Talent

How Executive Thinking on Talent Operations has Changed

Accel dives into how executives should think about talent development:

💭 Whilst most executives prioritise growth (and therefore scaling a team quickly), the priority has to be the quality of hire. Higher quality hires sets a flywheel effect in motion that improves talent retention and attraction.

💭 Continue developing talent to improve utilization across the organisation, primarily done through re-skilling.

💭 Use tech to your advantage. The rapid advancement of AI and automation software represents the next leap in streamlining talent operations. Tools like Modernloop consolidate and reduce the grunt work of the hiring process - candidate scheduling, basic comms, and interviewer training - thus freeing up people teams to tackle higher-order problems, and operate more strategically within their organizations

👉️ Read the full article here

📈 Finance & Liquidity

Fintech entrepreneurs’ guide to creating enterprise value starts with contribution profit

Bessemer highlights contribution profit as key to fintech enterprise value.

💭 Using SoFi as an example, it explains how variable costs differ across financial products, impacting profitability.

💭 For instance, SoFi's lending products have higher upfront costs but scale better over time compared to its lower-margin financial services.

💭 Entrepreneurs should focus on managing these variations, scaling operations efficiently, and prioritizing contribution profit to attract investors and drive sustainable growth.

👉️ Read the full article here

Gross Margin is a BS Metric

BCV argues that the gross margin metric is outdated for AI companies for two main reasons

💭 First, compute and human-in-the-loop costs significantly impact early gross margins but decrease with scale.

💭 Second, AI apps require continuous learning and improvement, which adds upfront costs that don’t correlate with SaaS-style gross margins. Instead, companies should focus on long-term value and defensibility as AI costs decline over time.

👉️ Read the full article here

🤖 Everything in AI

A Software-Driven Autonomy Stack Is Taking Shape

a16z explores the the impact of LLMs in healthcare with key financial levers including improved patient outcomes, streamlined operations, and reduced administrative costs.

💭 The survey reveals that 67% of healthcare executives see LLMs as critical for transforming their businesses, while 58% expect significant cost savings.

💭 Additionally, 72% believe LLMs can enhance patient engagement and satisfaction.

💭 Despite challenges in implementation, such as data privacy concerns and technical limitations, the overall sentiment is positive, with many organizations planning to invest further in LLM technologies to drive innovation and financial performance.

👉️ Read the full article here

Deepfakes and the New Era of Social Engineering

Greylock explores how deepfakes are transforming social engineering and fraud, especially in industries like finance.

💭 With rapidly improving deepfake technology, companies must reassess their security strategies to counter potential threats, including voice and video manipulations.

💭 While fraud incidents involving deepfakes remain low, experts believe that attacks will likely surge in the near future.

💭 Detection startups and solutions like watermarking, provenance, and enhanced process controls are emerging to mitigate these risks. Education and user awareness will also be crucial in addressing deepfake threats.

👉️ Read the full article here

How AI is Reshaping Translation and Language Learning

NEA looks into how AI and LLMs can have an impact on language and communication:

💭 LLMs like GPT-4 and Claude 3.5 exceed Google Translate on contextual understanding and adaptability while matching translation accuracy

💭  AI language learning directly targets the most important challenge for learners (i.e., pronunciation and accents) through natural conversations and personalised learning pathways

💭  Surprisingly, however, NEA finds that the surveyed audience favors a better learning experience rather than just more efficient translation, and would pay more for a better language education platform rather than just a system to speak across languages.

AI is creating a new learning pathway in language and communication with the potential lying in its ability to simulate real-world conversations and create hyper-personalized learning experiences

👉️ Read the full article here

Future of Weather Forecasting

Battery discusses advancements in weather forecasting, driven by improvements in computational power, AI, and data.

💭 Enhanced models can now predict more extreme and localized weather events, which is vital for sectors like agriculture, energy, and insurance.

💭 Private companies are increasingly investing in forecasting technology, utilizing high-resolution satellite imagery and sensor data.

💭 The article explores how AI analyzes vast amounts of data to deliver more accurate predictions, opening doors for applications such as renewable energy optimization and disaster management.

👉️ Read the full article here

💼 Available investor and operator jobs!

🤑 Active seed investor list

SCALE is presented by:

💬 Feedback for this edition

See you next week!

Rahul & Aryaman