I read this in Yoni Rechtman's substack today:

oversized funds lead to overfunded companies leads to bad returns and more importantly bad outcomes for founders/businesses. We’ll get Softbank 2.0 but even more widespread: every company could be super lean and profitable but instead will be pushed toward undisciplined and ruinous spending

This is not a new state of play.

This has been the venture capital business for well over a decade now.

Every breakout company in our portfolios is offered 10x the money they need and most of them take it because how can you not turn down an endless supply of capital?

But of course, this dilutes the founders, the seed investors, the early VC investors, and also leads to wasteful and unproductive spending.

Yoni points out that this is happening at the same time that AI is making starting and building companies less expensive than ever.

Like Yoni, I don't think this conflict gets resolved any time soon.

But some founders are opting out of this nonsense and I do think we will see more of them do so.

It is easier than ever to bootstrap a company to sustainable operations. Some founders will do it. Others will notice. Maybe it will even become fashionable to do so.

At least one can hope.

The Gotham Gal and I have completed another of our sustainable apartment buildings we make for families that live in Brooklyn.

We call the building Frame122 and it is located at 122 Waverly Avenue, right off Myrtle Avenue, about six blocks from Fort Greene Park, our favorite neighborhood park in NYC.

Frame122 is a collection of fifteen two and three bedroom apartments arranged around an internal courtyard with balconies and a shared backyard.

Frame122 is designed to Passive House standards and constructed with cross-laminated timber (CLT), Frame 122 minimizes environmental impact while maximizing comfort and efficiency.

Features include solar-powered energy systems, efficient electric heating and cooling, Honest broadband internet for all residents, and thoughtful amenities such as a private internal courtyard, communal backyard, EV-enabled parking, secure e-bike charging, and a fully equipped gym.

This photo gallery does a good job of showcasing the building and the apartments. We imagined Frame122 as a community of families living in a sustainable building with lots of natural light and outdoor space. And it came out even better than we had imagined it.

Two bedrooms start at $6,775/month and three bedrooms start at $7,400.00/month.

If you are interested in a tour, click here to schedule one. The apartments are ready for occupancy and we are offering move in dates as soon as March 1st.

Back during COVID, the Gotham Gal and I, along with the team in our family office, debuted our "sustainable" apartment building development business in Brooklyn, called Frame Home. We had two small ground floor retail spaces to lease in our first building, Frame283, and nobody wanted them. So Alex O'Daly, who helps us run our family office, suggested we make a "covid safe co-working space" in the ground floor. And so we did.

We called it Framework and it opened in early 2021. The concept is simple. Every "frameworker" gets their own sound insulated office pod optimized for privacy and productivity. Our tagline is "your own home office away from home". Our first Framework has been sold out since shortly after opening. We made something a lot of people want, almost by accident.

So when our friends at Two Trees opened up The Refinery at Domino Park in Williamsburg, we suggested that we put a Framework in that building. They visited the original location and loved it and a partnership was struck.

Back in October, we opened up Framework At The Refinery on the 9th floor of The Refinery building. We are now getting close to half full and hope to expand the operation to take the entire 9th floor later this year.

Again, the concept is dead simple. Every Refinery "frameworker" gets their own pod. It comes with a sit/stand desk, a chair, a file cabinet, an electric kettle, a french press, and a small fridge. There is fast and reliable wifi, and a few shared resources like bathrooms, a kitchenette, unlimited printing, and one bookable conference room.

As you can see, the views of the east river are wonderful. The light in the space is fantastic.

Pods start at $820 per month and can be leased for a minimum of 30 days or as long as 18 months.

If you want to schedule a tour and see it for yourself, go here and book one.

The way we work is changing but we still need a comfortable place to do our best work and Framework is all about giving that to people in a place that is close to home, but without the distractions of home.