Ben Lerer: Startups burning tens of billions rarely deliver strong VC returns
Ben Lerer · OpenAI’s Social Network & Figma’s Potential IPO | More or Less #95 · More or Less Podcast · Apr 18, 2025 · at 16:40
Ben Lerer, Managing Partner at Lerer Hippeau, evaluates whether investing in late-stage mega-rounds for AI companies like OpenAI makes sense from a venture perspective.
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“Companies that, that choose to or need to raise tens of or potentially hundreds of billions of dollars generally don't produce great Venture returns. And so like on the margin, I don't like the profile of companies that have to burn 20 or 30 or 40 or 50 or a hundred billion dollars. Like history says those don't turn out to be good bets.”
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