Week 28: Distilled Intelligence
The intelligence has successfully been distilled, and it's just off the charts.
Housekeeping
Hey - Eli here. I missed you.
Welcome to another edition of 2&20. We’re here to fill the void that exists between emerging fund managers. As always, I’m here to help you grow the two things that matter: AUM and Alpha.
It’s been a minute… lots of life updates: my time as a New Yorker is officially over. I’m an Angeleno again! I still plan to be back on the east coast every ~4 weeks - I need an excuse to use the winter jackets I now own…
Distilled Intelligence happened last week. I am still buzzing from the energy of it. I am so incredibly proud of our Fortify team, grateful to our partners, and excited for the founders who were there with us. More below, but here’s a vibe check:
As always, please hit me back with feedback and comments—I’m constantly seeking ways to make this newsletter a more valuable read.
Diving right in and keeping things brief:
On my radar:
Connect me with your favorite LA investors and founders! I <3 making friends.
We’re officially going hard on fundraising mode for Fund 2. If you have any intros to make, I would greatly appreciate it.
Please let me know if you’d be willing to give feedback on our Fund II deck!
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The Main Idea
I’ve spent the last ~year mentioning Distilled Intelligence on here. I’ve shared milestones from the website going live all the way to investor tickets going up. Last week, it actually happened.
The story behind DI
Distilled Intelligence was born in 2011, with the start of Fortify Fund I. Needless to say, I was not around back then. The first DI featured 55 companies, and was hosted in Loudoun County. It attracted some really great startups at the earliest of stages, like Social Tables, TroopSwap (later named ID.me), TRX Systems, and Venga. It was so damn good that the only logical thing to do was to do it again. So in 2012, DI 2.0 happened in the Carnegie Library. For the second iteration, it was double the size - 100 companies competing on stage in front of a LOT of investors.
For both DIs, the main focus was the pitch competition. It was three rounds, with each round becoming smaller and smaller. The first round was 60 seconds with the company’s logo behind them, then three minutes with a deck, and lastly, 5 minutes of Q&A. If founders went over time, a gong would sound.
Following the second DI, Fortify underwent some changes. The fund pivoted to more of an accelerator, with an in-person space called The Fort. The partners went back to being founders, and a third DI never happened. Well, until now.
The build up
When Jonathon and I met for the first time a few years ago, I could tell that DI was special, if for no other reason than the way he talked about it. His face would light up - as though he was talking about one of his own children.
A few months after that, we had coffee to talk about bringing Fortify back to life with Fund II. Jonathon brought two things with him to that coffee: the program book from DI 1.0, and the program book from DI 2.0. It was clear to me that Fortify and DI were inseparable.
That said, Jonathon is the optimist and I am the pessimist. When the time came about a year ago for us to start planning DI 3.0, I protested. After months of back and forth, we finally reached the perfect middle ground: a pivot for DI. Rather than solely being a pitch competition, we decided to make DI a three-day summit at the Lansdowne Resort in Loudoun County.
Pessimists sound smart. Optimists make money. - Nat Friedman
Founders attend for free, and can choose to participate in the pitch competition (called The Gong Show after the original format) or to be there as a resource for other founders. We invited hundreds of friends - investors, operators, and service providers with an interest in the startup ecosystem. But in the months leading up to DI, there was a lot of uncertainty about how it would all play out.
The things that made a 10x difference
Planning DI really felt like running a startup - there was a lot of figuring things out on our own: iterating versions of the “product,” the messaging, and GTM strategy, without knowing if any of it would work. The process to convince each stakeholder group to attend was totally different, and there was no one who had done it with the same approach as us. No playbook. So we tried everything.
Now, with the clarity of hindsight, I can say there were a few things that were 10x, direction-shifting decisions for us:
I sent this total stranger named Andrew Yeung a cold DM on X:
I had only been to one or two of his events. Never met him in person. But he replied immediately with “how can I help.” Speaks to the kind of guy that Andrew is - and it’s so fitting given the theme of DI 3.0 (more on that later). Over the course of two months of conversation, Andrew and his team joined as co-hosts to Distilled Intelligence. I think it’s pretty obvious what followed…
We decided to go all-in on brand. We partnered with Tamir from Koru Studio to build out the most insane brand we could possibly fathom:
The DI brand spoke for us - it conveyed exactly what kind of event DI would be. I strongly believe that DI would not have had the same caliber of attendees, or the same vibe, had our brand not been so on point. Koru Studio crushed it - from the perfect website to insane physical assets like badges and banners.
It took us about 5 months to accept the first half of founders. It took 3 weeks to accept the second half. Asking founders to introduce us to their favorite friends was one of the highest ROI asks. It put an end to hunting for a needle in the haystack of inbound applications. It immediately put us in touch with people who were building the perfect company, and who were the perfect vibe for DI.
Start building the vibe before the event. Introducing people before they arrive, and making them feel comfortable/safe is a huge part of what made the event a success. We had almost zero no-shows because most people were coming to meet a friend. Whether that friend was us or someone else, they felt like they had a reason to be at DI, and their “buddy” going into the event.
Things I wish I knew or paid more attention to
Communication cadence matters. Most people have a very hard time building trust after the first time of seeing your face or hearing your name. It takes multiple interactions before they’re willing to take a bet on you. There’s no shame in email retargeting, constantly posting on LinkedIn, or asking for their trust a few times. I wish we had set up tools like Klaviyo sooner, and I wish we did a better job of asking people for their contact info. It would have made our lives much easier.
People are more generous with their money than they are with their time. Asking people to spend 3-5 days of their busy lives with you takes a lot of trust. If you offer people ways to de-risk it, no matter how expensive, they will.
Being human is the best sales tool, especially in a world of AI. Being able to talk to people like an actual freaking human is what allows them to build trust in you. Especially when it comes to a multi-day event, no one wants to hang around a bunch of bots. Standard, cookie-cutter messaging doesn’t work. Being proper and uptight isn’t helpful. Dropping down to your normal self, and treating everyone like a real friend is what allows people to open their minds, networks, and doors to you. I really embraced treating everyone like a friend of 10+ years. How serious am I about this? This is what went out to every single DI attendee before the event:
Fun sells, every time. We spent a lot of time lining up the perfect speakers, the best programming, and curating an awesome attendee list. Ultimately, the best founders came because we promised them a fun time with pickleball and a campfire. Post-DI, I don’t think the pickleball was the most impactful part of their experience. But it certainly played a big role in getting them there.
Right before DI
In the months leading up to the event, we spent a lot of time setting expectations and hypothesizing about what the experience would be like. We spent a lot of effort trying to curate the vibe, and Jonathon spent a lot of money to make sure the experience was as perfect as could be. Going into DI, the nerves were high.
What if we didn’t do enough? What if people don’t show up? What if everyone gets food poisoning on the first day?
For two weeks leading up to DI, I had recurring nightmares that it would be the startup version of Fyre Festival - the resort burns down, and everyone’s sleeping in tents on the golf course.
The actual event
October 13th finally arrived, and the tension slowly started to release.
Day 0
We started DI with what was essentially a big pre-game. We had about 1/3 of the attendees arrive on Monday for some fun activities and a welcome dinner. Brad Feld jumped on stage, answering questions and sharing some wisdom. He gave a sneak preview of the topic of his fireside chat the next morning: ‘Give First.’ Giving with the radical expectation of nothing in return will oftentimes be the highest return investments.
But the second we started to feel a moment of true calm, panic broke out. The badges weren’t organized yet. But everyone was arriving in the morning! What the hell are we going to do if we can’t hand people their badges?? The state of emergency felt all-consuming. It was all hands on deck.
After 5 minutes of panic, Jonathon and I looked at each other simultaneously. We each knew what the other one was thinking. “What if badges are an obstacle to people really getting to know each other? We didn’t have badges tonight - and everyone seemed to be getting along just fine. If anything, it forces you to remember someone’s name. What if we just experiment with no badges… and if someone asks for theirs, we can find it for them?”
And that’s exactly what we decided to do. We changed the default to no badges, with an explanation as to why. If someone asked for their badge, we happily handed it over. To our surprise, people loved it.
That moment set the tone. From then on, nothing could shake us. It disarmed the feeling of panic within us for the remainder of the event. The few things that didn’t end up going as planned, actually ended up being blessings in disguise that helped make the event even better.
Day 1
As Day 1 started, the remainder of the attendees poured in. By 10am, the place was packed. Just shy of 300 attendees, with only standing room left in the ballroom.
Brad Feld & Steve Case kicked off the day with a fireside chat - firing everyone up. We then moved to some great panels: founders who had previously attended DI, Andrew Yeung + Andrew D’Souza (founder of Boardy), and myself + Haley Bryant + Sriram Gollapalli + Eugene Wan.
We then finished off the day with some really fun activities (tennis, pickleball, golf, etc.), dinner, and some great conversations by the bar with some live music. By the end of Day 1, it was clear that DI was on the path to be the best event of the year.
Day 2
Waking up on Day 2, it was clear that there was a big energy shift. Everyone was well rested and excited to take on the day. Everyone was 10x more chatty on Day 2 than on Day 1, and were eager to really roll up their sleeves.
The day kicked off with a panel that featured Anna Mason and Tim Chi, with founders immediately sprinting over to the auditorium to get ready for The Gong Show. The auditorium was packed - literally all 165 seats were taken, with folks standing in the back of the room and hallway to hear the pitches.
We received just over 2,000 applicants this year. We selected 65 companies (100 founders) to attend Distilled Intelligence. 42 companies pitched, 21 moved on to the semi-finals, and 10 moved on to the finals. By the end, we had 4 winners. Quite a distillation!
The honest truth is, it was really humbling to hear the pitches and watch the judges deliberate. The quality of the pitches were so beyond what we ever expected. Incredible founders, with such brilliant ideas and great execution. All 42 who pitched undoubtedly have the potential to be billion dollar companies.
The day finished off so incredibly strong. Leading up to DI, I had this lofty, kumbaya dream that everyone would leave DI as best friends. Despite the fierce competitive energy of the pitch competition, it was clear that this dream had come true on the second day. Founders were stepping up, organizing games like mafia and making plans to grab dinner the next day after DI had ended. The awkward wall of energy between founders and investors had broken. And service providers were (literally) grabbing the mic and singing their hearts out. If you don’t believe me, here is just one of the many videos from the hotel bar…
Day 3
Day 3 had a somber energy to it. In a weird way, it is the best energy we could have asked for. Everyone had a look on their faces like they were kids going home from summer camp… exhausted and run down, but dreadfully sad to be leaving their friends.
This was the validating moment for me. I watched founders hug each other goodbye. Investors exchanged phone numbers instead of LinkedIns. Despite being physically exhausted after 68 hours of non-stop activity, there was a renewed energy and excitement to go out into the world and build.
DI Debrief
With the event behind us, I can say with complete confidence that it could not have gone any better. Before DI, we shared five rules. Rule #1 was the most provocative: “No A-holes.” Everyone at DI embraced this rule fully. Warmth and kindness flooded every room and conversation. Ultimately, that’s what made DI so different.
The real differentiator wasn’t the panels or the production (although they helped) - it was the people. Every conversation felt like Give First in action. Everyone put their phones in their pocket, turned their egos off, took the time to listen to each other, and asked “how can I help,” just like Andrew did four months prior. It reminded me why we build communities in the first place.
After the event, friends have shared some really kind words about DI. All so incredibly humbling and flattering. I have a few quotes I want to share…
I’ll say, at first I was gonna say hmm this is gonna be formal. Not good or bad, but formal. But what ended up happening is you made it approachable and tight. Almost like a family business inviting their extended family. An example of that is Jonathan shouting to Eli from the side don’t forget to say xyz. Just makes it human! Never change guys.
From the gong show to the workouts, panels, and being the catalyst for DJ Mihailo - you created an environment that was equal parts productive and human. It’s rare to find an event that balances ambition with community that well.
It’s been a hectic year, and this event gave me far more than I expected - a much-needed break, meaningful new connections, and most importantly, a renewed perspective.
Goes without saying, we’ll see you at DI 4.0.
Some cool stuff on my radar
Here’s this week’s pocket dump:
Custom Spyderco Para 3 in M4
House Keys + Yubikey + Flash Drive
Triple Carry AirPods (memes at this point honestly)
Oliver Peoples Sheldrake Sun
I copped a new shaving razor, and I’ve been loving it. Paired with the Gillette Blues, it does an incredible job.
I decided to ditch my 11 inch iPad Pro for a 13 inch MacBook Air. The 13 inch MacBook Air really is the perfect travel device - so much more capable than an iPad.
If you know me (and read my annual productivity lists), you know I love my MX Master mouse. Well guess what - the MX Master 4 is now here.
I found the best pen refills: Pilot V5 RT. It’s in my Tactile Turn pen right now.
Kith x Tumi goes really, really hard.
Also discovered the best water bottle in existence: HydroFlask trail series. It is scary light and fits in a car cupholder.
Ricoh GR IV is now available for pre-order. If you know me, you know it’s my favorite camera:
I’ve been asked what I’m reading recently:
Closing
Thanks for taking time out of your day to read. Since you made it this far, a little easter egg for you…
As always, you can find me on X and LinkedIn, and I’d love to hear from you via email. Whether it’s talking startups or just shooting the shit, I’m always happy to connect.
Onto the next!
//Eli