AI Party Trick 🤯

The Observer's Notebook: Volume II, Entry 12 | February 13, 2025

February 13, 2025 • Reading Time: 6 minutes

Happy Thursday.

This week I'm learning why sticking to what you know pays off, realizing how basic AI moves can wow your friends, and remembering that having the right data is better than having more data.

Here are three things on my mind this week, plus some fascinating reads I think you'll enjoy.

🔖Bookmarks of the Week

I got to guest on podcast! Why most “startups” shouldn’t raise capital from angel investors 🎙️ | My friend Todd Gagne @ (link)
Connection > Perfection: Analysis of what sets apart the best writers in today’s world 🗣️ | Wes Pearce @ (link)
273 page “State of Venture” report from CB Insights (TLDR: AI got 37% of VC funding & deal count hits 8-year low) 📉 | Venture Chronicle (link)

🔍Three Things On My Mind

1. Niches Niches Niches 📍

Niche down!

This theme continues to be front and center in my thoughts. It applies across industries, geographies, and realms of life. Building a highly focused, value-additive brand, skillset, and network is the best way to be “seen and heard in the overcrowded marketplace” (from “Positioning” by AL Ries & Jack Trout).

One of my favorite related quotes on this topic from last week:

Let's form a family office and let's diversify our investments! I do water, this is what I know, but boy, that's all my eggs in one basket. [So we] invested in real estate deals, did a hotel deal. We did a home builder here in Texas. We did a manufacturer's rep business where we set up offices. We had an office in Monterey, Mexico. We had an office in, Muscat, Oman. We did all sorts of things. We acquired a company from Apollo. We thought, you know what, let's do a distressed asset turnaround. We know the market and customer way we could turn around somebody else's problem.

Everything that was outside of our core competency, we sucked at it. We lost money.

Another fun one from Al Ries and Jack Trout in “Positioning” (emphasis mine):

Do you conjure up the same mental postcard when someone says Nassau, the Virgin Islands, or Barbados? If there’s no difference, the mind will simply dump all those visuals in a slot marked “Islands in the Caribbean” and tune out.

2. Most People Have ZERO Idea How to Use AI 🤯

“Oh wow, can you send me that?”

I heard these words at least 3 times this week.

I probably use 4-5 different AI tools a day. It’s become standard operating procedure. I’m learning what each one is good at and what it’s not good at.

But I forget that most people have no idea what AI can actually do. Heck, I still feel like a novice.

Example: a friend was trying to figure out how to price his handmade chalk bags (for bouldering/rock climbing), and he wanted to know what materials other custom handcrafted chalk bag makers used.

Before he had even finished talking, I threw his exact situation and questions into a Perplexity prompt, showed him the results, and, guess what his response was:

“Oh wow, can you send me that?”

3. It’s Not About More Data—It’s About the Right Data 📊

Here's something from business school days that I’ve been thinking on a lot.

When we were preparing for consulting case interviews, we trained to be able to summarize the core problem, draft a path to solving it, and then “ask” for ONE more piece of information to help refine the solution. Just one.

That same challenge is everywhere now. With AI and endless research tools throwing information at us left and right, the real skill isn't the ability to go “gather more stuff.” It's distilling and focusing on what actually matters.

You don't win by having the biggest pile of data. You win by knowing exactly what piece of the puzzle you're missing, and then leveraging available tools to go get it.

⚛️A Note on Nuclear

I've spent the last few months deep diving into the early-stage nuclear energy investing landscape. After analyzing piles of Pitchbook data, interviewing industry experts, and reading way too much, I’ve pulled out the essential information to build the guide I wish existed when I started researching this space.

The Nuclear Energy Investing Playbook drops in March 2025. It includes analysis of 80+ startups, proprietary market research, and a framework to help angels navigate this complex but opportunity-rich sector.

Interested? Pre-order now for $79 (regular price $99). Want it for free? Subscribe and refer one friend to the newsletter (be sure to click the button to get a referral link) by March 15, 2025.

Until Next Week👋

Thanks for reading - have a great week.

-Andrew

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About Me

I cultivate flourishing.

I'm also the CEO of PitchFact, where our mission is to cultivate flourishing specifically through efficient and collaborative early-stage diligence. I'm a proud husband, grateful father, and honest friend. My love languages include brisket, bourbon, and a handwritten note.