Andy Dunn discusses the density thresholds required to achieve network effects in a local geographic market for his social app Pie.
Assertion Not checkable as stated
Dunn: 90% of Chicago VC alpha and funding comes from the coasts
“90% of the alpha for Chicago-based venture firms is created on the coasts, right? And 90% of the capital that the leading Chicago companies raise is from the coasts.”
Disclosure
Dunn pitched 15 Chicago VCs and got rejected before Forerunner term sheet
“I did 15 pitches in Chicago, because I wanted to raise our Series A from a Chicago venture fund. I got 15 no's. I did one pitch on the West Coast with Kirsten Green from Forerunner, and we got a term sheet within 48 hours.”
Prediction Not checkable as stated
Dunn predicts Pie will be the next great American social network
“Look, I think there's room for the next great American rooted social network right now. And I believe three things about it. Number one, it's going to be AI native. Number two, it's going to be focused on actual friends and your IRL local life. You're in real …”
Insight
Dunn: Ecosystems need a $50B+ anchor company to create angel networks
“You gotta build a hundred billion dollar, or at least a fifty billion dollar company, To create that ecosystem of angels, and to create a training ground for the entrepreneurs of, you know, the next decade in Chicago.”
Insight
Dunn: Getting off phones requires using phones and top social influencers
“Because the only way to get off these phones is through our phones. The people that were influential in hooking us on social media are very well positioned to say, guys, let's get out.”
Disclosure
Pie halved its team from 23 to 12 due to AI efficiency
“Well, at one point the team was 23, and the age of AI it's now 12, and we've seen what you guys are talking about, which is just a massive collapse of product design, engineering, and even go to market, where people can do so much more, and so, you know, we di…”