In early October 2026 I posted a threaded X thread that laid out Hustle Fund’s investment philosophy, how we evaluate early‑stage startups, and the emerging dynamics of the VC ecosystem.
We review roughly 1,000 companies per month at Hustle Fund.
Today there are “thousands upon thousands” of VC managers.
New managers frequently launch SPVs when they start funds, a signal of market saturation.
Competitive markets raise customer acquisition costs (CAC), leading to what I call “CAC wars”.
Large cash‑rich firms can absorb CAC wars; small first‑check firms cannot, so we aim to “surf” early, niche trends.
The ideal investment window is when a trend is still small but has potential to curl into something big within a few years.
Risks are being too early (the wave never grows) or too late (the space is crowded).
I am authoring a book titled “The $1000 Angel” (https://t.co/Ko7qwy0KRU).
My decisions flow from these observations: I focus on niche, early trends to avoid CAC wars, I avoid large‑scale CAC battles, and I aim to invest early but not too early to capture upside while limiting downside.