Capital Intensity Isn't Bad. Elon Musk reportedly owns 42% of SpaceX. Travis Kalanick owned 8.6% of Uber at IPO. Hardware startups can be more capital efficient than software ones, and they spend money on assets that create moats instead of increasingly expensive customer acquisition. The really good software companies get ridiculously capital intensive anyway; look at Amazon, Meta, Google, and Microsoft, which will spend more than $300B on CapEx this year combined. The question isn't whether a startup will require a lot of capital. All the meaningful ones do. The question is where the capital comes from and where it lives.

In this week's Not Boring, I teamed up with Tangible co-founder @williamfgodfrey to argue that founders and investors shouldn't be scared of capital intensity, and to explain how founders should think about financing their assets: