Assertion Supported AI assessment confidence: 95% certainty 4/5 debate potential 2/5

Suster: Generative AI seed deals carry a 44% valuation premium

Mark Suster · Mark Suster: Why Private Equity Will Replace IPOs and M&A as the Exit Path | E1147 · 20VC with Harry Stebbings · May 1, 2024 · at 34:36

Mark Suster is a General Partner at Upfront Ventures. He explains how hype surrounding generative AI in 2023 and 2024 has driven up seed stage pricing relative to other sectors.

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“If you want to do generative AI in 20, 23, 24, you're paying 44% premium to do a generative AI deal.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

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Disclosure
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Assertion Not publicly verifiable
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Mark Suster May 1, 2024 ▶ 29:41 Mark Suster: Why Private Equity Will Replace IPOs and M&A as the Exit Path | E1147 · 20VC with Harry Stebbings
Prediction Not checkable as stated
Suster: Investors entering generative AI from 2023-2025 won't see strong returns
“So if you're betting on generative AI for the first time in 23, 24, 25, good luck making returns.”
Mark Suster May 1, 2024 ▶ 35:04 Mark Suster: Why Private Equity Will Replace IPOs and M&A as the Exit Path | E1147 · 20VC with Harry Stebbings
Opinion
Suster: Founders should avoid demo days and batch fundraising hype
“Like, you've got one company, and there's no divorce clause from investors, so I really think entrepreneurs need to take the time to get to know their investors, which is why I'm not a big proponent of demo days, or overhyping your company, or Waiting to meet …”
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Prediction Not publicly verifiable
Suster predicts party rounds will perform worst over the next three years
“And party rounds did incredibly well. For the last five years, but I suspect party rounds are going to do the worst for the next three years, because getting conviction across three or four small investors that each own seven, eight, nine, 10% of your company …”
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Assertion Contradicted
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