Sze: Valuation flexibility is justified for winner-take-all markets with great leadership
David Sze · 20VC: Greylock's David Sze on His Biggest Lessons Working with Mark Zuckerberg and Reid Hoffman, The Rise of Pre-Emptive Rounds, How To Think Through Price Discipline Today and How Truly Strong Venture Partnerships Function · Apr 19, 2021 · at 10:21
David Sze is a General Partner at Greylock. He explains his investment framework regarding price sensitivity and valuation discipline for category-defining consumer and enterprise companies.
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“So I do think that you need to have price discipline, and so you need to think about, does this have the ability to run to a huge outcome? Does this Show the potential to be a winner takes most or winner takes all kind of business. If that's the case, and you think you have the right team in place as well, which is the other critical aspect of that, and we can talk about that in terms of what you look for in a leader of a team, because I think that's critical. You have those two things together, then I think you can be more flexible on those decisions along the way, and I think it's been proven, particularly in consumer, and now increasingly with SaaS and enterprise, that you can invest at different points along the stack than we used to think and have great returns.”
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