Beyond table stakes like hunger and vision, the most successful founders exhibit deep empathy ("people gene"), curiosity, and high emotional intelligence. They are secure, know their weaknesses, and often have a background in team sports, understanding that company building is a team effort.
The go-to-market for AI hardware is unlike traditional enterprise sales. Founders should focus on a small number of massive customers: the hyperscalers and emerging "sovereign clouds" in various countries. The total addressable market is maybe 50 customers, not thousands, making it a telecom-like industry.
The next wave of AI isn't just about tools; it's about "AI teammates" that augment human capabilities. This shift from "artificial" to "collaborative" intelligence will create a $3-6 trillion market by automating mundane tasks and unlocking new potential for knowledge workers, rivaling the entire IT industry.
Chaddha's process prioritizes deep relationship-building over transactional speed. He requires at least 10 hours of interaction, including dinners, to gauge a founder's character, respect, and long-term partnership potential, filtering out those just seeking quick money.
The push for sovereign AI clouds extends beyond data privacy. The core geopolitical driver is a fear of becoming a "net importer of intelligence." Nations view domestic AI production as critical infrastructure, akin to energy or water, to avoid dependency on the US or China, similar to how the Middle East controls oil.
Interviews can be misleading as founders are skilled at presenting well. Venture investor Naveen Chaddha relies heavily on extensive back-channel references to create an "X-ray" of a founder's history. He believes that while founders can craft a narrative, they cannot hide from their past actions and reputation.
Contrary to common fears, AI is projected to be a net job creator. Citing a World Economic Forum study, Naveen Chaddha highlights that while 92 million jobs will be displaced by automation, 170 million new roles will emerge, resulting in a net gain of 78 million jobs by 2030.
Mayfield's Naveen Chaddha uses a dual approach for AI investing. A "prepared mind" seeks painkillers for known enterprise pain points (e.g., in the data layer). An "open mind" is required for emergent categories like new models or developer tools, where preconceived notions are a hindrance and listening is key.
Instead of being everything to everyone, Mayfield embraces hyper-specialization. Chaddha compares the firm to In-N-Out Burger: it offers a limited, high-quality menu (early-stage investing) and doesn't chase other "dishes" (late-stage, different sectors), creating a strong brand and consistent demand from founders and LPs.
Mayfield's Naveen Chaddha rejects the venture trend of chasing logos and "hot" deals, which he compares to buying beachfront real estate. His firm's strategy is to be a disciplined financial investor focused on a single metric: DPI (Distributions to Paid-In Capital), aiming for consistent, top-decile returns rather than succumbing to FOMO.