Stealth Mode in Silicon Valley...

Begs the Question: What Are You Actually Building?

Author

Ajwang Rading
June 06, 2024 • Estimated Reading Time: 9 minutes

In Atlanta This Week

Greetings from Atlanta! I am working on a real estate investment and advising Morehouse College on a groundbreaking new project connecting and leveraging markets and people with one another. More on this later.

I’m proud that in the last week, I’ve taken an average of 20,000 steps a day, taken all my calls by foot, and converted in-person meetings to walking meetings. I'm plotting my marathon schedule for the months ahead and will share it soon to see if anyone out there wants to join me!

We Raised Over $21 million for Human Rights and Protecting the Unhoused

I want to thank everyone who came and supported last month's events for the organizations where I serve on boards. Your support means the world! The Human Rights Silicon Valley committee raised over $20 million, and LifeMoves raised over $1.1 million at their respective events.

Stealth Mode in Silicon Valley

Got the next billion-dollar idea? I’ve noticed that when one does, it’s time to enter “stealth mode.” What is that? It’s code for launching a startup that is not yet ready for the spotlight. It’s a cool move—attracting financing without the fanfare and striving for a competitive edge. However, flying under the radar has downsides, notably the lack of accountability.

Time and time again, I see friends and clients failing to realize the profound risk of working in the shadows — NO ONE IS WATCHING.

When no one is watching, who is keeping you honest? What motivates you to push? Who is your thought partner? Who tells you to get back up and try again? In the absence of public scrutiny, our ideas and ambitions NEED systems of accountability. This ensures you stay honest about your progress, mission, and trajectory.

I advise a close friend with a groundbreaking tech idea who is beginning to love languishing away in stealth mode. I interrogate them endlessly for updates…. You know it's bad when you hear the same updates from the last time, lol.

Who is keeping you honest about who you are supposed to become?

The Appeal of Stealth Mode

Stealth mode can be exhilarating. The secrecy adds a layer of excitement, and securing funding without public scrutiny is an added bonus. Investors often appreciate the hush-hush approach as it suggests something innovative and potentially market-disruptive is brewing. For entrepreneurs, this period allows for refining the product, strategy, and operations without external pressure.

I agree with the instinct to protect your idea from judgment before it’s ready. But what happens when ‘your precious’ is ready but still needs to be kept on the down low? What if it's not the 'precious thing' that needs the shadows, but you getting too used to being in them?

This is basically a live feed of every AI startup founder right now

Navigating the Challenges

Stealth mode NEEDS accountability. Regular check-ins, progress metrics, and honest self-assessments are vital to the enduring question when one is at -1 or 0: “What am I actually building?”

My friend and I have found that setting clear, attainable goals and regularly reviewing them keeps us on track. I BEG them to use Notion as a project management tool (if you know, you know. If you don’t, get ready for your life to be changed). Communication within the team is also crucial. Transparency within the team compensates for the external opacity.

Balancing Secrecy and Progress

When acting on an idea and building product-market fit, we must interrogate, ‘What’s actually keeping me going?’ Usually, it's co-founders, investors, and those willing to tell it as it is. But for solopreneurs, quiet co-founders, or in the midst of building a team, organization of thought and actionable structure are everything when building a company and product. If you don’t have this, whether it be software or a thought partner, stop immediately and install it in your process. We cannot leave systems of accountability to memory and happenstance. Instead, we need systems of accountability to be undeniable, clear, and consistent. We need stealth mode to be truth mode as well.

Learn A.I.

I am DEEP in the world of AI, and in the coming months, I’ll share some AI-related projects I am working on. In my daily attempt to drink from the ever-changing firehouse on how to think about this emerging world, I’ve decided to summarize interesting developments, products, and ethical quandaries I am following:

  • A Lex Fridman conversation with AI safety researcher, Roman Yampolskiy, who believes AGI will bring the destruction of human civilization. I’m not an ‘AI doomist’ by any means, but I find it necessary to observe and absorb the full range of debate regarding AI deployment and safety.

  • I found this jailbroken ChatGPT called Chatx. Basically, the coders broke through ChatGPT's terms of use and safety procedures. I wonder how long it will last.

  • The AI revolution is losing momentum as investors become increasingly cautious about generative AI. They recognize that current investment levels are not aligning with the technology’s near-term potential to generate returns. This shift in perspective is driven by a few key factors. Firstly, advancements in large language models are decelerating as companies reach the limits of available online data, leading to the commoditization of models and applications over time. Additionally, while chatbots can function as helpful assistants, they still fall short of replicating the specialized knowledge of human experts. Consequently, there is a more measured outlook on the widespread adoption of AI applications and their short-term profitability.

The Wonk Corner

For my policy lovers, FTC Chair Lina Khan and DOJ Assistant Attorney General Jonathan Kanter discussed their efforts to strengthen antitrust enforcement at a Brookings Institution event this past week. I LOVED this conversation about ‘protecting consumers’ and ‘preserving competition.’ Does each aim lead to the same goal?

I’ve highlighted the following topics discussed from the conversation with quotes that you may find interesting:

  1. Toughening Merger Enforcement:

    • Lina Khan: “We are revising merger guidelines to ensure they better reflect the realities of today’s economy and address anti-competitive practices effectively.”

    • Jonathan Kanter: “Stricter merger reporting requirements are crucial to prevent monopolistic behaviors that can harm consumers.”

    • Ajwang’s Vote: 👍🏾👍🏾

  2. Revitalizing Criminal Antitrust Enforcement: They discussed initiatives to re-energize enforcement against criminal antitrust violations.

    • Kanter: “Re-energizing criminal antitrust enforcement is essential. We’re committed to holding companies accountable for activities that undermine fair competition.”

    • Ajwang’s Vote: 👍🏾👍🏾👍🏾

  3. Challenging Big Tech: Addressing the complexities of regulating major technology companies, both emphasized the need for stringent application of antitrust principles in the tech sector.

    • Khan: “Applying antitrust principles to the tech sector is complex but necessary. We need to ensure that these giants do not stifle innovation or harm consumers through anti-competitive practices.”

    • Kanter: “Big Tech companies have significant market power. Our job is to ensure that they do not abuse this power to the detriment of a competitive marketplace.”

    • Ajwang’s Vote: 👍🏾👍🏾👍🏾, particularly since Big Tech has such a huge chilling effect on startups.

  4. Antitrust in Labor Markets:

    • Khan: “We are extending antitrust principles to labor markets to protect workers. Anti-competitive practices that suppress wages or limit job mobility are areas of concern.”

    • Kanter: “Ensuring fair competition in labor markets is as important as in product markets. Workers’ rights and opportunities must be safeguarded.”

    • Ajwang’s Vote: 👍🏾👍🏾👍🏾, this innovative approach to center labor is long overdue and needed when conceptualizing a company’s dominance on market outcomes

  5. Future Priorities: Lina Khan emphasized the importance of overcoming court challenges and engaging with the business community to maintain a competitive marketplace. Jonathan Kanter highlighted the need for transparency and public engagement to adapt strategies to evolving market dynamics and ensure robust enforcement.

What’s Making Me Smile

Currently, I'm rewatching "The Good Place," a TV show streaming on Netflix. It easily goes into my top 10 list of all-time favorite shows. On the surface, it may appear to be just another comedy show, but it's a portal into the world of philosophy, ethics, and morality through brilliant humor. And while I am a mad lover of anything Ted Danson (e.g. Curb Your Enthusiasm), the show’s remaining cast makes you feel so cheerful with their masterful delivery. Regardless of your faith or spiritual MO, this show will support your mission to do better for others. HIGHLY RECOMMEND. 🥰🥰🥰

Upcoming Events

July: An AI founder friend and I are considering co-hosting another Builder Dinner Series in San Francisco. If you are interested, simply reply.

I wish you all a wonderful, blessed week ahead. If you have some time today or tomorrow, call just one friend and check in on them. I called one earlier today, and it made my week.

As always, let’s elevate.

Cheers,

Ajwang A

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