venture capital

“One of the easy defaults you go to in the middle is, oh, I'll just go to my insiders and ask for a bridge. And I will tell you, at least all the data I've seen, the success stories coming off a bridge are few to none. That's why we always refer to them as pier…”

“The capital intensity of that undertaking is very different than starting a software company, right? And so the risk reward to both the founders and the risk reward to the investors changes a lot.”

“I think it's going to be very difficult for new entrants to be venture backed because to, you know, open AI will continue to get funding because they have this incredible team. They have a hundred million people using the product and paying them for the produc…”

“I think this is more permanent. I think it would take a massive shake out, like a gargantuan, oh, one style or more to change this at this point.”

“Having crazy money in the market is not necessarily consistent with creating positive return for your venture capital portfolio. It can start to trend the other way. If you end up with hyper competition, if you end up where every single player has four hundred…”

“It would be catastrophic to the venture capital industry and to the startup industry to tax unrealized capital gains.”

“The total amount of funding has definitely come down by about 30 or 40% over the course of the last couple of years.”

“If you look at this step stone data, you know, it actually shows that, you know, basically what differentiates those top tier funds and by top tier, what I mean is that the top five percent decile funds. They're earning about a four and a half X, you know, cas…”

“And so now there's a path where investors, GPs get rich, where the outcome of the founders and their companies is irrelevant. Not to say they are aligned in opposite directions, but they're no longer aligned. And now, as a rational actor, you could say, why no…”

“If those second layer and the third layer are both negative gross margin, the consumer's buying compute from the hyperscaler at a price that's lower than they would if they bought it directly because it's being subsidized by two players in the middle. And on t…”

“Once you invest in something, you just start to adopt the mouthpiece for it and make a lot of arguments that are central to that company's success. And I think that's happening now that we have a large number of VCs in the military space.”

“Because of the amount of venture capital out there companies are not pricing the cost. Like, no one, none of the model companies, I don't think anyone, even in the verticals, like, no one's pricing the cost, because they're pricing to take market share.”

“Now you have the provinces entering the investment space, which is an uncomfortable reality for some of the VCs. They're asked, I hear they're asking for terms that you and I would consider non-starters, you know and so that's, it's all a little bit messy.”

“And then there's not that many R&B dollars available to the venture market. A lot of the, you don't have the foundations in, in university endowments that you do here. And the billionaires that have made wealth typically are looking to diversify offshore. And …”