Pizza Robot Automation
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A story about how Shaan's friend Vishal explained his investment strategy focusing on companies with no product-market fit risk.
"My friend Vishal told me he invests in companies with no product market fit risk. I had never heard somebody say that - it didn't even make sense to me. I said 'What do you mean? Every startup has product market fit risk.'
He explained using an example: 'I just invested in a company making a robot that makes pizzas. It makes a perfect pizza every time, 24/7, at a lower cost than a human being can do it. There's a ton of engineering risk - they may not be able to technically do it. But if they can do it, there's zero market risk. Every pizza shop will want this over paying an employee to make imperfect pizzas, who only works certain hours, calls in sick, and costs more.'
That made me realize there are things that have zero market risk. The company ended up getting a big contract with Domino's, but then their CEO got in trouble for something, so they hired a new CEO. They're still working through the engineering risks."
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.