March 19, 2024 • 1hr 3min

Dave Fontenot - The Monastery of Code - [Invest Like the Best, EP.365]

Invest Like the Best with Patrick O'Shaughnessy

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Dave Fontenot, founder of HF Zero. HF Zero is a unique 12-week residency program for repeat founders to supercharge their next venture. Born out of Dave's experiences in monasteries across the world, HF Zero creates an environment where founders can focus solely on building their product, with all other aspects of life taken care of. The conversation explores the origins of HF Zero, its unique model, and Dave's insights on fostering creativity and productivity in founders.

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Key Takeaways

HF Zero is a 12-week residency program for repeat founders to focus solely on building their next venture, with all other aspects of life taken care of
The program is designed to create uninterrupted flow state for founders, allowing them to make significant progress in a short time period
HF Zero takes only 3% equity and invests $500k uncapped, converting at the price of the next round
The program is highly selective, accepting only 10 teams out of 2,500+ applications per batch
Key attributes sought in founders are grit, storytelling ability, and product sense
The residency model aims to expand to other institutions like universities in the future
Meditation and creating space for self-reflection are crucial for founders to tap into their vision and motivation
The future of building may not require traditional coding skills, but will still need visionaries who can see possibilities

Introduction

In this episode of Invest Like the Best, Patrick O'Shaughnessy interviews Dave Fontenot, founder of HF Zero. HF Zero is a unique 12-week residency program for repeat founders to supercharge their next venture. Born out of Dave's experiences in monasteries across the world, HF Zero creates an environment where founders can focus solely on building their product, with all other aspects of life taken care of. The conversation explores the origins of HF Zero, its unique model, and Dave's insights on fostering creativity and productivity in founders.

Topics Discussed

Dave's Journey to Meditation and Monastic Life (2:31)

Dave's journey into meditation and monastic life began with a personal heartbreak and his struggle with ADD. He stopped taking medication and turned to meditation to build natural concentration.

Initially meditated for 15 minutes to be able to read for 15 minutes
Attended a 10-day Goenka Vipassana retreat
Spent two years seeking out different meditation masters and techniques

"The ten day is really powerful. They figured this out thousands of years ago. The important thing is that you have enough time to have a breakdown and a breakthrough in ten days." - Dave Fontenot

From Monastery to Coding: Finding Flow in Programming (7:16)

Dave drew parallels between the flow state experienced in meditation retreats and intense coding sessions. He realized the power of creating uninterrupted time for deep work.

Experienced flow state while coding in college, working on challenging problems
Recognized the similarity between monastic retreats and focused coding sessions
Envisioned creating spaces where people could build without distractions

Creating Spaces for Uninterrupted Creativity: The Birth of HF0 (9:13)

Dave explains how his experiences with hackathons and meditation retreats led to the creation of HF Zero, a residency program designed to maximize productivity for founders.

HF Zero provides a distraction-free environment for 12 weeks
Founders can focus solely on building their product
The program takes care of all other aspects of life

"What's possible shifts. The thing that you're not sure if it can even be built all of a sudden becomes possible." - Dave Fontenot

A Day in the Life at HF0 (19:21)

Dave walks through the weekly schedule at HF Zero, highlighting the balance between focused work time and structured activities.

Mondays: Demo dinner - founders show what they built or sold in the past week
Tuesdays: Check-ins with each team
Wednesdays: Optional dinner with another founder
Thursdays: 12-minute concrete workshops
Fridays: Community dinner from 7-9pm
Weekends: Uninterrupted time for building

Why 12 Weeks? The Philosophy Behind the Duration (24:19)

Dave explains the reasoning behind the 12-week duration of the HF Zero program.

12 weeks is the longest time partners are typically comfortable with
Allows for significant progress without being too disruptive to personal lives
Provides a sense of urgency and focus

"Twelve weeks is the longest we can convince the partners to be on board with it for. Even if we say three months, the partner's like, 'Whoa, whoa, whoa, whoa, three months.' But twelve weeks somehow it's palatable." - Dave Fontenot

Selecting the Brilliant Minds for HF0 (26:37)

Dave discusses the highly selective process for choosing participants for HF Zero and the qualities they look for in founders.

Receive about 2,500 applications per batch, accept only 10 teams
Look for brilliance, grit, storytelling ability, and product sense
Seek founders who can attract even smarter engineers than themselves
Evaluate how quickly teams can ship end-to-end consumer-grade products

The Thin Line Between Visionary and Crazy (30:11)

Dave shares insights on identifying visionary founders and distinguishing them from those who might seem "crazy".

Look for consistency in how founders talk about their vision
Visionaries speak from a "felt sense" of something they can see clearly
Ask questions that tap into the founder's deep motivation and vision

"The difference between crazy and visionary is consistency. When someone is visionary, they're not necessarily always right about their vision, but they're speaking from a felt sense of something." - Dave Fontenot

Creating Space to Meditate (32:59)

Dave emphasizes the importance of creating space for self-reflection and meditation, both for founders and individuals seeking to tap into their creativity.

Encourage various forms of meditation (running, swimming, sitting)
Focus on getting in touch with what truly motivates you
Use physical challenges to push beyond perceived limits

The Economic Model Behind HF0 (36:38)

Dave explains the economic model of HF Zero and the reasoning behind their terms.

HF Zero takes 3% equity in each startup
Invests $500k uncapped, converting at the price of the next round
Designed to work for top repeat founders who wouldn't consider traditional accelerator terms
Structured to provide enough capital for founders to leverage during the program

Building Successful Residencies (40:35)

Dave discusses what it takes to build and run successful residencies, drawing from his experience with HF Zero.

Importance of having a team member like his co-founder Emily, who has high empathy and community-building skills
Need to adapt the program to the specific needs of each batch
Focus on subtraction rather than addition in terms of programming

Expanding the Residency Model to Universities (44:26)

Dave predicts the expansion of the residency model to universities and other institutions.

Envisions residencies at major engineering universities
Emphasizes the importance of the residency fund model for selectivity
Suggests focusing on a specific demographic not served by existing programs

Understanding Engineers and Hackers (51:59)

Dave offers insights into understanding engineers and hackers, framing them as creative artists.

Defines a hacker as "an artist who's not attached to any medium of expression"
Emphasizes the importance of creative expression in engineering
Highlights the need for hackers to be seen and understood in their work

"My definition of hacker is essentially an artist who's not attached to any medium of expression. It's essentially an unshackled artist." - Dave Fontenot

The Kindest Thing Anyone's Ever Done For Dave (1:00:48)

Dave shares a personal story about the kindest thing anyone has done for him, highlighting the power of belief and support.

A close mentor believed in him when he had lost faith in his ability to launch HF Zero
This belief led to giving a speech in Mandarin and successfully launching the first HF Zero batch during COVID

Conclusion

The conversation with Dave Fontenot provides deep insights into the innovative approach of HF Zero in fostering startup growth. By creating a monastic-inspired environment that eliminates distractions and supports founders holistically, HF Zero is pushing the boundaries of what's possible in startup incubation. Dave's vision for the future of residencies and his understanding of the hacker mindset offer valuable perspectives for founders, investors, and anyone interested in the intersection of technology, creativity, and human potential. As the landscape of company building evolves, the residency model pioneered by HF Zero may well become a significant force in shaping the next generation of transformative companies.