In this episode of Allied Angels, we dissect and debate the most talked-about tech deal of 2025: Nvidia's record-shattering $100 billion investment commitment in OpenAI, announced September 22nd.

This unprecedented strategic partnership between the world's dominant AI chipmaker and the generative AI leader is sending shockwaves through venture capital, sparking antitrust investigations, and fundamentally reshaping the artificial intelligence landscape.

What You'll Learn:

The Deal Structure Deep Dive:

• Staged $10 billion equity investments tied to 10 gigawatts of NVIDIA infrastructure deployment

• Equivalent to 4-5 million GPU deployment across massive data center buildout

• First gigawatt deployment scheduled for Q3/Q4 2026 on NVIDIA's Vera Rubin platform

• Strategic partnership combining equity investment with exclusive hardware supply agreements

Market Impact Analysis:

• Global chip stock rally: TSMC, SK Hynix, and semiconductor sector surge

• Venture capital implications for AI infrastructure and competing startups

• Impact on OpenAI's $157 billion valuation and future funding rounds

• Nvidia's revenue concentration risks and customer dependency concerns

Antitrust and Regulatory Firestorm:

• DOJ and FTC scrutiny over potential market consolidation between industry giants

• Preferential treatment concerns for OpenAI in GPU allocation during chip shortages

• Exclusionary conduct allegations against smaller AI competitors

• European Union and global regulatory response to AI infrastructure monopolization

The "Round-Tripping" Controversy:

• Industry analysts questioning circular funding: Does Nvidia's investment simply return as chip purchases?

• Vendor financing sustainability and artificial demand creation concerns

• Impact on Nvidia's true revenue growth vs. investment-driven sales

• Comparison to historical tech bubble financing patterns

Strategic Implications:

• Nvidia's near-monopoly in AI chips combined with OpenAI's generative AI leadership

• Competitive responses from AMD, Intel, and custom ASIC initiatives

• Chinese challengers (Huawei, SMIC) and geopolitical AI competition dynamics

• Cloud majors (Google TPU, Amazon Trainium, Microsoft) developing chip alternatives

Venture Capital Market Effects:

• Impact on AI startup valuations and funding availability

• Infrastructure investment trends and data center REIT implications

• Competition concerns for AI companies dependent on Nvidia hardware

• Strategic investor relationships vs. traditional VC funding models

Historical Context and Bubble Comparisons:

• Parallels to dot-com era vendor financing and circular investments

• Telecom infrastructure buildouts and subsequent market corrections

• Lessons from previous tech partnership mega-deals and their outcomes

• Market sustainability questions amid AI infrastructure gold rush

Future Scenarios Debate:

• Bull Case: Accelerating AI innovation, market expansion, and technological breakthroughs

• Bear Case: Artificial demand, competition stifling, and regulatory intervention risks

• Long-term implications for AI democratization and startup ecosystem health

We provide balanced analysis from multiple perspectives, examining whether this landmark partnership represents the future of AI innovation or a dangerous consolidation that could stifle competition and trigger the next regulatory firestorm.

Key Discussion Points:

• Is the $100 billion investment genuine market validation or financial engineering?

• How will competing AI startups access critical GPU infrastructure?

• What regulatory interventions are likely and when?

• Could this deal accelerate the next AI market correction?

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this exclusive Allied Angels episode, we go behind the scenes of our recent investment in doFlo, a groundbreaking AI workflow automation platform positioned at the convergence of two massive markets projected to exceed $1 trillion by 2030.

Join us as we share insights from our original deal memo and explain why this investment represents everything we look for in early-stage startups.

What You'll Learn:

The doFlo Investment Thesis:

• "Vibe Flowing" technology: Create complex AI workflows using simple text prompts

• 90%+ agentic efficacy rate with 2,700+ integrations

• Operating at the intersection of workflow automation and agentic AI markets

• Community platform approach: "GitHub for automations" marketplace model

Why We Invested:

• Proven founding team with prior successful exits and world-class product velocity

• One of the fastest revenue ramps among early-stage startups in our portfolio

• Addressing critical gaps in current solutions like Zapier, Make, and n8n

Market Opportunity:

• $1 trillion projected market size by 2030 for workflow automation and agentic AI

• Non-technical user market underserved by current automation tools

• Enterprise adoption challenges with existing platforms' high error rates

• AI-native automation replacing traditional workflow tools

Product Innovation:

• Text-to-workflow functionality eliminating drag-and-drop complexity

• Micro-agent architecture achieving superior automation reliability

• Set-it-and-forget-it experience with Slack/email notifications

• Workflow sharing, collaboration, and monetization marketplace

We share exclusive insights from our deal memo and explain how doFlo exemplifies our thesis on AI-native enterprise software disruption.

Read the full deal memo excerpt: https://www.allied.vc/news/investing-in-doflo

Perfect for: Angel investors, venture capitalists, startup founders, automation professionals, AI entrepreneurs, and anyone interested in workflow optimization and enterprise software investments.

Keywords: doFlo investment, AI workflow automation, agentic AI, enterprise software, venture capital, startup investment, workflow optimization, automation tools, SaaS platforms, investment thesis.

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⁠⁠Allied VC⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this special newsflash episode of Allied Angels, we analyze OpenAI's historic return to open-source with the August 5, 2025, release of GPT-OSS-120B and GPT-OSS-20B - their first open-weight language models since 2019.

This seismic shift toward transparency and accessibility under the permissive Apache 2.0 license is reshaping the entire AI startup ecosystem and creating unprecedented opportunities for developers, enterprises, and investors.

What You'll Learn:

The GPT-OSS Revolution:

• GPT-OSS-120B and GPT-OSS-20B available under Apache 2.0 license and gpt-oss usage policy

• Mixture-of-experts (MoE) architecture: 120B model activates 5.1B parameters per token, 20B activates 3.6B

• First freely available open-weight model matching top-tier commercial performance like o4-mini

• Designed for powerful reasoning, agentic tasks, and versatile developer use cases

Technical Breakthrough Analysis:

• Chain-of-thought capabilities with adjustable reasoning effort levels

• Support for instruction-following and tool use features

• GPT-OSS-120B runs on high-end laptops, GPT-OSS-20B runs on smartphones

• Available on Amazon SageMaker JumpStart for enterprise deployment

Investment Implications:

• How open-weight models democratize access to cutting-edge AI technology

• Enterprise opportunities for private, secure AI deployment without cloud dependency

• Competitive landscape shifts against Meta, Mistral, and DeepSeek open models

• Infrastructure and hardware acceleration market opportunities

Startup Opportunities:

• Building custom AI applications with state-of-the-art reasoning capabilities

• On-device AI innovation for mobile and edge computing

• Enterprise AI consulting and implementation services

• Fine-tuning and specialized model development markets

Cost and Economic Analysis:

• Training costs estimated between $420k-$2.3M for 20B model and $4.2M-$23.1M for 120B

• Reduced barriers to entry for AI startups and developers

• Hardware requirements and cloud infrastructure implications

• NVIDIA GeForce RTX and RTX PRO GPU acceleration capabilities

Market Disruption Analysis:

• Why OpenAI reversed its closed-model strategy after 6 years

• Impact on existing AI service providers and API-dependent startups

• Open-source vs. proprietary model competitive dynamics

• Strategic implications for enterprise AI adoption

Safety and Governance Considerations:

• Balancing openness with responsible AI development

• Apache 2.0 licensing implications for commercial use

• OpenAI's usage policy framework for open-weight models

• Community governance and safety protocols

We explore how this historic release represents a fundamental shift in AI accessibility, potentially triggering a new wave of innovation while raising critical questions about business model sustainability, safety governance, and competitive dynamics in the rapidly evolving AI landscape.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this special newsflash episode of Allied Angels, we dive into Google DeepMind's revolutionary Genie 3: the first general-purpose world model capable of generating unprecedented diversity of interactive, dynamic environments from simple text prompts.

This isn't just another AI advancement; it's a paradigm shift that could transform gaming, simulation, training, and countless startup opportunities.

What You'll Learn:

Genie 3 Technical Breakthrough:

• Real-time interactive world generation at 24 frames per second in 720p resolution

• Multi-minute environmental consistency with visual memory extending one minute back

• Advanced auto-regressive generation handling growing trajectory complexity

• Promptable world events allowing dynamic environmental changes mid-interaction

Revolutionary Capabilities:

• Physical property modeling: Natural phenomena like water, lighting, and complex interactions

• Natural world simulation: Vibrant ecosystems with realistic animal behaviors and plant life

• Animation and fiction creation: Fantastical scenarios with expressive animated characters

• Historical exploration: Navigate through different geographical locations and past eras

• First-person drone flights through photorealistic landscapes

Market Opportunities:

• Gaming industry disruption: Infinite procedural world generation

• Virtual reality and augmented reality platform development

• Corporate training simulation markets

• Educational content creation and interactive learning

• AI agent testing and development platforms

Current Limitations and Opportunities:

• Limited action space constraints creating startup niches

• Multi-agent interaction challenges opening research opportunities

• Geographic accuracy gaps for location-specific applications

• Text rendering limitations in generated environments

• Duration constraints driving optimization startup potential

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

How Figma's 250% First-Day Pop Reveals the Broken IPO System and What Founders Must Know

In this eye-opening episode of Allied Angels, we dissect one of 2025's most dramatic IPO debuts: Figma's public offering that skyrocketed from $33 to $115.50 on its first trading day.

This 250% surge wasn't all cause for celebration—it exposed a fundamental flaw in the traditional IPO process that cost Figma and its stakeholders an estimated $3 billion in unrealized value.

What You'll Learn:

The Figma IPO Breakdown:

• How Figma's stock jumped 250% from $33 to $115.50 on July 31, 2025

• Why being oversubscribed by 40 times signals massive underpricing

• The mechanics behind IPO underpricing and who really benefits

• How $3 billion in potential capital transferred from founders to institutional investors

IPO Underpricing Deep Dive:

• The role of lead underwriters and bookrunners in pricing decisions

• Why 90% of IPO shares go to institutional investors vs. 10% to retail

• Conservative pricing strategies and their hidden costs to companies

• Real-world allocation processes and the "book" building system

Winners vs. Losers Analysis:

• How institutional investors captured billions in first-day profits

• What founders, employees, and early investors actually lost

• Investment banking relationships and fee structures

• The systematic wealth transfer from companies to Wall Street

Critical Lessons for Founders:

• How to accurately measure market demand during roadshows

• Setting IPO valuations that reflect true market interest

• Understanding dilution risks and ownership preservation strategies

• Why strong fundamentals don't always translate to fair pricing

Alternative Exit Strategies:

• Direct listings: Spotify's $300M savings model and market-driven pricing

• SPAC mergers: Virgin Galactic case study and timing advantages

• Private equity partnerships: CrowdStrike's strategic growth approach

• Comparing exit options for maximum value capture

Expert Insights:

• Bill Gurley's critique of the "broken" IPO system

• Silicon Valley Bank's perspective on valuation maximization

• Industry best practices for cap table management

• Strategic timing considerations for public market debuts

Key Founder Takeaways:

• Why solid recurring revenue and growth metrics attract overwhelming demand

• How to push for transparent pricing mechanisms with underwriters

• Building leadership teams capable of handling public company scrutiny

• Balancing immediate funding needs with long-term value preservation

We explore the systemic issues in traditional IPO processes, from underwriter incentives to institutional investor advantages, and provide actionable strategies for founders to avoid leaving billions on the table during their exits.

Perfect for:

Startup founders planning exits, angel investors, venture capitalists, investment bankers, financial advisors, and anyone involved in late-stage startup financing and public market transitions.

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⁠⁠⁠⁠⁠⁠⁠⁠Allied VC⁠⁠⁠⁠⁠⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠⁠⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠⁠⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

Breaking Down the Landmark Stablecoin Legislation That's Reshaping Crypto Investment

In this essential episode of Allied Angels, we dive deep into the groundbreaking GENIUS Act of 2025, the first federal framework regulating payment stablecoins in the United States.

Passed by the U.S. Senate with a bipartisan 68-30 vote on June 17, 2025, this landmark legislation fundamentally transforms the digital asset ecosystem and creates unprecedented opportunities for startups, investors, and financial institutions.

What You'll Learn:

The GENIUS Act Breakdown:

• Complete analysis of the Guiding and Establishing National Innovation for U.S. Stablecoins Act

• Dual licensing framework: Federal vs. state paths for stablecoin issuers

• 1:1 reserve backing requirements with high-quality liquid assets (HQLA)

• Monthly disclosure mandates and transparency provisions

• Bank Secrecy Act compliance and AML/KYC requirements

Market Impact Analysis:

• $200+ billion stablecoin market implications and growth projections

• How regulatory clarity removes legal barriers for banks, fintechs, and retailers

• Institutional adoption opportunities for payment processing and DeFi integration

• Consumer protection measures and remaining regulatory gaps

Investment Opportunities:

• Why stablecoins offer faster, cheaper transactions than traditional payment systems

• Cross-border payments revolution and remittance cost reduction

• How banks and credit unions can now issue stablecoins under federal oversight

• Strategic implications for fintech startups and digital payment companies

Global Implications:

• U.S. dollar dominance in international digital finance

• How the GENIUS Act influences global stablecoin and CBDC regulations

• Competitive advantages for U.S.-based crypto and fintech companies

• International harmonization and cross-border commerce transformation

Compliance & Strategic Considerations:

• 120-day mandatory application response timeframes for licensing

• Reserve portfolio restructuring requirements for existing issuers like Circle (USDC) and Tether (USDT)

• Market consolidation trends and barriers for smaller players

• Innovation opportunities in programmable payments and tokenized instruments

We explore critical debates around consumer protection gaps, potential regulatory loopholes, and concerns from consumer advocates about insufficient safeguards compared to traditional banking regulations.

Plus, we analyze how major tech companies and financial institutions are positioning themselves in this new regulatory landscape.

Key Industry Trends Covered:

• Federal vs. state regulatory pathways and the $10 billion threshold

• Federal Reserve and OCC oversight for large stablecoin issuers

• Integration with existing payment infrastructure and competition with Visa/Mastercard

• DeFi ecosystem growth and institutional liquidity enhancement

Perfect for:

Crypto investors, fintech entrepreneurs, angel investors, venture capitalists, financial services professionals, regulatory compliance experts, and anyone interested in the intersection of traditional finance and digital assets.

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⁠⁠⁠⁠⁠⁠⁠Allied VC⁠⁠⁠⁠⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

Breaking Down the Biggest QSBS Rules Enhancement Since 1993

In this essential episode of Allied Angels, we dive deep into the groundbreaking changes to Qualified Small Business Stock (QSBS) tax benefits following President Trump's One Big Beautiful Bill Act, signed July 4, 2025.

This legislation represents the most significant expansion of Section 1202 benefits in over three decades, fundamentally reshaping the startup investment landscape.

What You'll Learn:

Revolutionary QSBS Exemption Changes:

• New tiered exclusion system: 50% at 3 years, 75% at 4 years, 100% at 5+ years

• Increased exclusion cap from $10M to $15M per taxpayer, per issuer

• Higher gross asset threshold raised from $50M to $75M for qualifying companies

• Inflation indexing starting 2027 to preserve long-term value

Startup Founder Benefits:

• Enhanced exit flexibility with meaningful tax benefits after just 3 years

• Strategic planning opportunities around equity timing and exit strategies

• Extended eligibility window for later-stage equity issuance

• Real-world tax savings examples and calculations

Angel Investor & VC Advantages:

• Improved investment attractiveness through reduced effective tax rates

• Portfolio optimization around business fundamentals vs. rigid tax calendars

• Venture capital pass-through benefits for limited partners

• Capital recycling flexibility for angel investors

Critical Timing Considerations:

• Grandfathering rules for pre-July 4, 2025 stock

• No retroactive benefits for existing QSBS holdings

• Strategic issuance opportunities for qualifying companies

We break down practical examples showing over $1M in tax savings scenarios and discuss the broader $17.2 billion economic impact projected by the Joint Committee on Taxation.

This episode is perfect for:

Startup founders, angel investors, venture capitalists, tax professionals, financial advisors, and anyone involved in the startup ecosystem looking to understand how these changes affect investment strategies and exit planning.

Keywords: QSBS, Qualified Small Business Stock, Section 1202, startup taxes, angel investing, venture capital, tax benefits, capital gains exclusion, startup exit strategy, One Big Beautiful Bill Act, entrepreneurship, startup funding, investment tax planning

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⁠⁠⁠⁠⁠⁠Allied VC⁠⁠⁠⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we delve into the pivotal findings from the recent Stanford University paper, "Future of Work with AI Agents: Auditing Automation and Augmentation Potential across the U.S. Workforce."

This research introduces a novel auditing framework that goes beyond the traditional "automate or not" dichotomy, providing crucial insights into the evolving landscape of work in the age of AI.

Key Highlights:

• Understanding the Human Agency Scale (HAS): Discover how the authors developed the Human Agency Scale to quantify preferred levels of human involvement in various tasks, facilitating a nuanced analysis of both automation and augmentation potential.

• The WORKBank Database: Learn about the creation of the WORKBank database, which surveyed 1,500 domain workers and 52 AI experts across 104 occupations. This comprehensive resource identifies four distinct zones of desire and technological capability for AI integration.

• Worker Desires vs. Current Investments: Explore the critical findings that reveal workers often prefer automation for repetitive tasks to free up time for high-value work. However, the research highlights significant mismatches between these desires and current investment and research in AI technologies.

• Shifts in Core Human Competencies: Examine how the integration of AI agents may lead to a transformation in the skills valued in the workforce. The study suggests that interpersonal and organizational skills may become more important than traditional information-processing skills in the future job market.

• Implications for AI Development: Discuss the importance of aligning AI development with human needs, emphasizing the necessity for technologies that enhance rather than hinder worker capabilities.

This episode is essential for anyone interested in the intersection of AI and the future of work. Tune in to Allied Angels as we unpack the implications of this groundbreaking research and explore how AI agents are set to reshape the workforce landscape!

Key Takeaways:

• Insights into the Human Agency Scale and its role in assessing worker preferences.

• Analysis of the WORKBank database findings regarding AI integration in diverse occupations.

• Understanding the future shifts in core human competencies in the context of AI.

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⁠⁠⁠⁠⁠Allied VC⁠⁠⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we unlock the secrets to mastering Large Language Models (LLMs) by diving deep into the essential skill of prompt engineering, drawing insights from Google's comprehensive whitepaper on the art and science of guiding AI to generate the desired outputs.

Learn what prompt engineering is all about – it's not just about writing a question, it's about strategically designing prompts to help AI understand your intent and respond effectively.

We explore the fundamental prompting techniques that form the backbone of effective LLM interaction, including:

• Zero-shot prompting, where you provide instructions without examples

• One-shot and few-shot prompting, which enhance performance by including demonstrations.

Understand how these techniques leverage the model's ability to learn from context, improving accuracy and consistency.

We also delve into more advanced strategies for tackling complex tasks:

• Discover how Chain-of-Thought (CoT) prompting guides the model through step-by-step reasoning for more logical outputs

• How ReAct (Reason + Act) combines internal reasoning with external tool usage for real-world problem-solving.

• Other innovative techniques like Tree-of-Thoughts (ToT) and Self-Consistency Voting.

For developers, we uncover the power of code prompting, showcasing how LLMs can assist with code generation, code explanation, automated testing, code optimization, and even documentation generation. See how prompt engineering can significantly augment the software development process.

Finally, we share crucial best practices for effective prompt design, emphasizing:

• the importance of clear instructions

• relevant examples

• specifying desired output formats

Learn about iterative design, controlling sampling parameters like temperature, and emerging trends such as automated prompt generation. We'll also cover the significance of system, role, and contextual prompting for tailoring LLM behavior.

Whether you're a developer, researcher, or simply curious about harnessing the full potential of AI, this episode is your guide to becoming a proficient prompt engineer. Tune in to elevate your interactions with Large Language Models.

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⁠⁠⁠⁠Allied VC⁠⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we unlock the inner workings of large language models (LLMs), like Claude 3.5 Haiku, by breaking down the latest cutting-edge research paper from Anthropic: Tracing the thoughts of a large language model.

Join us as we delve into mechanistic interpretability, exploring how AI truly "thinks" by revealing its computational graphs and underlying circuits.

Discover the innovative circuit tracing methodology utilizing attribution graphs and cross-layer transcoders (CLTs) to dissect the complex processes within these models.

We uncover interpretable features – the building blocks of AI computation – and map their interactions to understand how models generate text and perform tasks.

We also explore fascinating "AI biology" as we trace the pathways behind diverse behaviors, such as:

• Multilingualism: Uncover evidence of a shared conceptual space and both language-specific and language-independent circuits.

• Planning: Learn how language models plan their outputs, even in creative tasks like poetry generation, by identifying future words and working backward.

• Refusals: Understand the mechanisms behind a model's decision to decline harmful requests and how specific features contribute to this behavior.

• Jailbreaks: Investigate prompting strategies that can bypass safety mechanisms and the underlying weaknesses they exploit.

• Factual Recall: See how models access and utilize factual knowledge to answer questions.

• Addition: Delve into the surprisingly intricate circuits responsible for simple arithmetic.

• Entity Recognition and Hallucinations: Learn how models distinguish between known and unknown entities and the circuit misfires that can lead to fabricated information.

• Chain-of-thought Faithfulness: Examine whether a model's stated reasoning aligns with its actual computational steps.

• Hidden Goals: Uncover how fine-tuning can embed secret objectives within a model's persona.

Gain insights into the limitations of current methods, including missing attention circuits, reconstruction errors, and the challenges of understanding global circuits. We also discuss the crucial role of validation through perturbation experiments.

This podcast provides a unique window into the "thoughts" of large language models, revealing the fascinating interplay of features and circuits that drive their capabilities and limitations.

Tune in to explore the cutting-edge of AI interpretability and the quest to build an "AI microscope" to understand the complex world within.

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⁠⁠⁠Allied VC⁠⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we explore the latest insights from our March LP newsletter, focusing on the evolving venture landscape and the striking divergence between AI-native startups and their non-AI counterparts.

As we navigate the normalization of the venture ecosystem post-2021, we examine the implications of inflated valuations and the challenges faced by early-stage investors.

Join us as we explore:

• Current Landscape Analysis: Delve into how Series C+ rounds have returned to historical fundamentals, yet seed-stage valuations for AI startups are commanding a 21% premium. We’ll discuss the factors driving this divergence and what it means for the future of venture capital.

• Case Study of a Pre-Seed Deal: We analyze a recent pre-seed deal where we opted out of investing in a two-year-old AI startup seeking a $15 million pre-money valuation despite having minimal traction. Understand the math behind our decision and the risks associated with inflated revenue multiples.

• The Paradox of AI Valuations: Explore the commoditization of AI and how it lowers barriers to entry, leading to increased competition. We’ll discuss why this trend challenges the rationale for premium valuations in AI-native startups and how it could suggest a need for caution among investors.

• Evaluating Early-Stage AI Deals: Learn about the two key risk factors investors should consider when pricing deals: overvaluation and revenue quality. We’ll highlight the potential pitfalls of accepting inflated valuations and the implications for future fundraising and portfolio health.

• Negotiation Leverage for Seed Investors: Discover how the current environment gives seed investors more leverage to negotiate fair terms, even amidst bidding wars. We’ll discuss strategies for maintaining disciplined entry prices and ownership targets.

• Commitment to Fundamental Investing Principles: At Allied, we emphasize the importance of adhering to fundamental investing principles, even in the face of hype and excitement around AI. We’ll share our approach to identifying overlooked opportunities that align with our disciplined investment strategy.

This episode is essential for investors and founders alike who want to understand the complexities of AI valuations and the current venture capital landscape.

Key Takeaways:

• Insights into the divergence of AI and non-AI startup valuations.

• Analysis of risks associated with inflated early-stage valuations.

• Strategies for disciplined investing in the current venture capital landscape.

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⁠⁠Allied VC⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we tackle the pressing challenges that startup founders face when raising venture capital through rolling SAFEs (Simple Agreements for Future Equity).

Join us as we delve into a real-life case study of a founder who found themselves in a precarious position with only three months of runway remaining after raising over $1.5 million.

Join us as we explore:

• Understanding Rolling SAFEs: We’ll explain what rolling SAFEs are, how they function, and the implications they have for startup fundraising dynamics.

• A Case Study: Explore the journey of a founder who navigated the complexities of perpetual fundraising. Learn why their initial success led to a critical financial crunch and what warning signs to look for.

• The Pitfalls of Perpetual Fundraising: Discuss the inherent risks associated with ongoing fundraising efforts, including investor fatigue, dilution concerns, and the pressure to continuously prove traction.

• Strategies for Success: We’ll share effective strategies that successful founders are using to secure their capital without falling into the perpetual fundraising trap. Learn how to balance fundraising efforts with operational needs and long-term vision.

• Implications for Founders and Investors: Understand what these challenges mean for both startup founders and investors, including how to approach funding discussions and expectations.

This episode is a must-listen for founders navigating the fundraising landscape and investors looking to understand the challenges faced by their portfolio companies.

Key Takeaways:

• Insights into the mechanics and challenges of raising capital through rolling SAFEs.

• Real-life implications of perpetual fundraising on startup runway.

• Proven strategies for successful capital financing without compromising long-term goals.

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⁠Allied VC⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠https://linktr.ee/alliedvc⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we dive into our 2024 Annual Investor Letter, where we review the firm's performance and strategic insights.

Join us as we highlight our successful investments that have achieved significant markups, contributing to a growing portfolio that now exceeds $500 million.

Key Highlights:

• Performance Review: Discover the standout investments that have propelled our growth, showcasing the strategies that led to impressive returns and an expanding portfolio.

• Market Analysis: We analyze the current state of public and private markets, noting a recovery in public markets while addressing the ongoing challenges in venture capital fundraising. Learn about the trends of smaller seed rounds and the increased traction requirements for founders.

• Opportunities for Early-Stage Investors: Despite the challenges, we discuss why the current environment remains favorable for early-stage investors. With lower valuations and high-quality deal flow, there are unique opportunities to capitalize on during this pivotal time.

• Future Plans: Get a sneak peek into our future strategies and commitment to the syndicate model, which allows us to maintain agility and focus in our investment approach.

• Syndicate Model Benefits: Understand how our syndicate model enhances collaboration and access to diverse investment opportunities, enabling us to adapt quickly to market changes.

This episode is essential for investors looking to understand the dynamics of the current venture capital landscape and the strategic direction of Allied Venture Partners. Tune in to gain valuable insights from our annual investor letter and learn how we plan to navigate the future of investing.

Key Takeaways:

• Highlights from Allied Venture Partners' 2024 performance and successful investments.

• Analysis of public and private market conditions affecting venture capital.

• Strategies for capitalizing on favorable early-stage investment opportunities.

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⁠⁠Allied VC⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we shine a spotlight on our exciting new investment in RetinaLogik, a revolutionary healthtech company poised to transform the landscape of vision care.

With its innovative AI/VR-powered eye exam platform, RetinaLogik is set to redefine how eye exams are conducted, making them more accessible and efficient.

Join us as we explore:

This episode is a must-listen for those interested in the intersection of technology and healthcare, as we explore how RetinaLogik is revolutionizing vision care through innovation and strategic investment.

Key Takeaways:

• Insights into RetinaLogik's AI/VR technology and its impact on vision care.

• The significance of leadership and market opportunity in healthtech investments.

• Early traction metrics that highlight RetinaLogik's potential for success.

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⁠Allied VC⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠https://linktr.ee/alliedvc⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we delve into the transformative world of AI Agents—a groundbreaking development reshaping technology, business, and society.

Join us as we explore the multifaceted capabilities and implications of AI agents, and how they are revolutionizing various industries, including:

• The Emergence of AI Agents: Discover how AI agents are becoming a powerful force in customer service, sales, marketing, and beyond, automating tasks and delivering personalized experiences that enhance operational efficiency.

• Capabilities and Applications: We’ll examine the diverse functionalities of AI agents, including task completion, content creation, research assistance, and strategic planning. Learn how these agents are applied in sectors like healthcare, legal services, and recruiting.

• Building and Deploying AI Agents: Gain insights into the technical aspects of AI agent development, from goal initialization to feedback collection. Understand the importance of effective task workflows and integration with external systems.

• OpenAI’s Role in AI Advancement: Explore the contributions of OpenAI in developing large language models and their mission to ensure that AI benefits humanity. We’ll discuss their research investments and initiatives addressing AI alignment and safety concerns.

• Ethical Considerations and Challenges: Delve into the ethical implications of AI agents, focusing on issues like output determinism, bias, and the necessity for responsible development practices and regulatory frameworks.

• Impact on the Workforce: Analyze the potential effects of AI agents on job displacement and the emergence of new roles in AI development and management. We’ll discuss the broader societal implications, including economic disruption and changes in human behavior.

• Open-Source AI Models: Discover the rise of open-source AI models like Llama and their impact on the landscape of AI development. Learn about the benefits of accessibility, transparency, and community-driven innovation.

• Data Infrastructure: Understand the critical role of robust data infrastructure in enabling AI applications, including stages of the data pipeline and the need for high-quality data management.

• Conversational Software Innovations: Explore how AI is driving a shift towards more engaging conversational experiences, the challenges of designing these interactions, and the potential for enhanced customer service through personalization.

This episode is a must-listen for anyone interested in the future of technology and the profound impact of AI agents on our world.

Key Takeaways:

• Insights into the capabilities and applications of AI agents across various industries.

• Understanding the ethical challenges and workforce implications of AI technology.

• The importance of data infrastructure in AI development and deployment.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we break down our step-by-step guide to ⁠Crafting an Investment Thesis for New Angel Investors⁠.

Whether you're stepping into the world of angel investing for the first time or looking to refine your approach, this episode provides a comprehensive step-by-step guide to help you develop a robust investment thesis that aligns with your goals and risk tolerance.

Join us as we cover:

• Understanding Investment Theses: Learn what an investment thesis is and why it is crucial for angel investors seeking to make informed decisions in today's competitive market.

• Key Components: Explore the fundamental elements that should be included in your investment thesis, from market analysis to identifying trends and evaluating potential returns.

• Research Strategies: Discover effective research techniques to uncover promising startups, assess their business models, and understand the industries you want to invest in.

• Risk Assessment: Gain insights into how to evaluate risk versus reward, ensuring your investments align with your financial objectives and personal values.

• Case Studies: Hear real-world examples of successful investment theses from seasoned angel investors and how those frameworks led to profitable outcomes.

This episode is packed with actionable insights and practical tips for new angel investors eager to navigate the venture capital landscape confidently.

Key Takeaways:

• Step-by-step guidance on creating a compelling investment thesis.

• Insights into key components and research strategies for angel investing.

• Real-world examples to inspire and inform your investment decisions.

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⁠⁠Allied VC⁠⁠ is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠⁠⁠https://linktr.ee/alliedvc⁠⁠⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode, we dive into a critical yet often overlooked strategy: how to mobilize angel capital in emerging tech ecosystems through emerging fund managers rather than individual investments.

Join the Allied VC team as we explore innovative approaches to enhance the durability of angel capital and generate superior returns for investors in burgeoning tech hubs like Calgary and Western Canada.

Discover why backing emerging managers could be the key to unlocking sustained growth in nascent startup ecosystems.

In this episode of Allied Angels, we unpack:

• The Allied Ventures perspective on optimizing angel capital deployment in emerging markets.

• Why high-net-worth individuals should consider backing emerging fund managers over direct startup investments.

• The crucial need for educational programs focused on evaluating and selecting emerging fund managers.

• How this approach can create an asymmetric upside effect in jumpstarting sustainable early-stage funding ecosystems.

• Allied VC's insights on the potential long-term impact of this strategy on local and regional economic development.

Key topics discussed in this Allied Angels episode:

• The limitations of individual angel investing in emerging ecosystems.

• The advantages of pooled capital through emerging fund managers.

• Strategies for identifying and supporting promising new venture capital funds.

• The ripple effects of concentrated capital deployment on startup ecosystem growth.

• Allied Ventures' vision for fostering more resilient and dynamic startup communities.

This episode of Allied Angels offers invaluable insights for:

• High-net-worth individuals looking to optimize their impact in early-stage investing.

• Aspiring fund managers seeking to understand their role in ecosystem development.

• Economic development professionals focused on nurturing local startup ecosystems.

• Anyone passionate about innovative approaches to startup funding and ecosystem building.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we delve into the key highlights from our Q3 2024 monthly LP newsletters.

These monthly newsletters are crafted to provide current and prospective limited partners (LPs) with exclusive insights into our investment strategy, updates on our portfolio companies, and emerging industry trends.

Join us as we explore:

• Team Developments: Learn about our expanding core team and the growth of our Scout and Advisory programs, enhancing our deal flow across North America.

• New Investment Opportunities: Discover the details behind our latest investments, including follow-ons in high-performing companies like Rook and Ediphi, and insights into upcoming opportunities in API infrastructure and AI/ML/aerospace.

• Portfolio Performance: Hear about significant achievements from our portfolio companies, including GroWrk and Bavovna, and how they are making waves in their respective industries.

• Industry Insights: Gain valuable perspectives on the evolving venture capital landscape, including shifts in LP behavior, average check sizes, and the overall market sentiment as we approach the end of 2024.

This episode is packed with actionable insights for anyone interested in the dynamics of venture capital and the innovative companies driving change in 2024.

Key Takeaways:

• Comprehensive highlights from our Q3 2024 newsletters.

• Insights into our latest investment strategies and portfolio developments.

• Analysis of shifting trends in the venture capital ecosystem.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we dive into the key takeaways from our Q2 2024 monthly LP newsletters.

Our monthly LP newsletters are designed to provide current and prospective limited partners (LPs) with exclusive insights into our investment strategy, updates on our portfolio companies, and the latest industry trends.

Join us as we explore:

• Team Updates: Learn about the strengthening of our core team and the expansion of our Scout and Advisory programs, enhancing our deal flow across North America.

• New Investment Opportunities: Discover the details behind our recent investments, including our significant backing of Ediphi, a pioneering VR training platform for the hospitality industry.

• Portfolio Performance: Hear about the impressive growth of companies like Fonbnk, which continues to lead in the African fintech space, and Tiliter, making strides in AI implementations across major retail chains.

• Industry Insights: Gain valuable perspectives on the current fundraising landscape, the importance of maintaining a broad investment mandate, and strategies for navigating the complexities of venture capital.

This episode is packed with valuable insights for anyone interested in the dynamics of venture capital and the innovative companies driving change.

Tune in to understand how Allied Venture Partners continues to identify and support exceptional founders and transformative ventures in 2024.

Key Takeaways:

• Comprehensive highlights from our Q2 2024 newsletters.

• Insights into our latest investment strategies and portfolio developments.

• Analysis of the evolving venture capital landscape.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.

In this episode of Allied Angels, we explore our strategic investment in Ediphi, a groundbreaking virtual reality training platform that is revolutionizing the way the global hospitality industry onboards, upskills, and retains its workforce.

Discover how Ediphi's innovative approach leverages a comprehensive suite of AI and VR-based training modules designed specifically for the hospitality sector.

From mastering front-desk operations and guest services to developing culinary skills and managing events, Ediphi provides trainees with highly immersive testing and simulations that allow them to develop their abilities in a risk-free and authentic environment.

Key topics include:

• Industry Challenges: Learn about the significant labor shortages and high turnover rates plaguing the hospitality sector, and how Ediphi addresses these pressing issues.

• Unique Training Solutions: Dive into Ediphi's compelling training offerings that not only enhance employee skills but also contribute to reduced labor costs and improved employee satisfaction.

• Market Potential: Understand the vast opportunities within the $290 billion global hospitality training market and how Ediphi is positioned to become a leader in this space.

Join us as we discuss why we believe Ediphi is poised to disrupt the hospitality training landscape, and how this investment aligns with our mission to support innovative companies at the nexus of technology and significant market needs.

Key Takeaways:

• Insights into Ediphi’s VR training platform and its applications in hospitality.

• The impact of labor shortages on the industry and how Ediphi provides solutions.

• The significant growth potential of the hospitality training market.

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Allied VC is Western Canada's largest angel syndicate, investing in early-stage technology startups across Canada and the USA.

Pitch us, Invest, Scout, and more: ⁠https://linktr.ee/alliedvc⁠

Allied Angels is powered by NotebookLM - Google's new AI note-taking & research assistant.