Very high degree of resonance here, period. A few points that jump out to me to riff on.
1. There's an interesting aspect of post-legibility alpha where because any map can only ever be correlated up to a point with the actual phenomenon, for example, actual revenue opportunity and demand, that the legibility heuristics become a prison instead of a maze.
2. And there's also a secondary effect there that has some connection to the great idea of financial markets being engine more than camera, in that all of a sudden you have this interplay where both what founders pursue becomes more aligned to the legibility heuristics and therefore there's fewer experiments in the danger zone of illegibility that all the more increases the alpha.
Maybe this is a bit of an aging alternative culture take on it, but it's been persistently validated to me. I believe fairly strongly that the biggest alpha in total value created, though maybe not value capture, is generally where there is no clear model at all whatsoever.
re (1), totally. E.g. when some b2b saas metric becomes common knowledge, and loads of investors pick entirely based on some dumb formula, by definition you will miss the next big thing because the next big thing is a different shape.
re (2) very yes. Seems to rhyme with Byrne Hobart's book about how bubbles create these agglomeration/cooperation points, which accelerates around a specific (emergently selected?) model.
Very high degree of resonance here, period. A few points that jump out to me to riff on.
1. There's an interesting aspect of post-legibility alpha where because any map can only ever be correlated up to a point with the actual phenomenon, for example, actual revenue opportunity and demand, that the legibility heuristics become a prison instead of a maze.
2. And there's also a secondary effect there that has some connection to the great idea of financial markets being engine more than camera, in that all of a sudden you have this interplay where both what founders pursue becomes more aligned to the legibility heuristics and therefore there's fewer experiments in the danger zone of illegibility that all the more increases the alpha.
Maybe this is a bit of an aging alternative culture take on it, but it's been persistently validated to me. I believe fairly strongly that the biggest alpha in total value created, though maybe not value capture, is generally where there is no clear model at all whatsoever.
re (1), totally. E.g. when some b2b saas metric becomes common knowledge, and loads of investors pick entirely based on some dumb formula, by definition you will miss the next big thing because the next big thing is a different shape.
re (2) very yes. Seems to rhyme with Byrne Hobart's book about how bubbles create these agglomeration/cooperation points, which accelerates around a specific (emergently selected?) model.