The Exchanges

Q So since then, a lot has happened. You hosted Hill and Valley. We're at re-industrialize right now. And next week, you're going to be hosting another thing. So before we get to next week, let's talk about now. What brings you to re-industrialize and how does this fit into the one, 37 portfolio?

A Yeah, so this is actually my first year, um, and it's incredible. Uh, my partners and colleagues have gone before. Um, my friends are, you know, involved in organizing and setting it up. A lot of our portfolio is involved. Um, and so, you know, if you look here, uh, obviously Hadrian is heavily involved. Palantir, um, is a major sponsor. Brex is a major sponsor. Um, and Palmer's here. Andrel, obviously one of our largest investments. Um, so it is very much a, a, a fun place to go see friends. Um, and, uh, I think coming for the first time, I now get, you know, why folks have really enjoyed coming every single year. You know, there, there's Mobile World Congress, right, for that broader industry. There's these major gatherings for industries, uh, CES. There is not one for manufacturing, right? There is not one for the industrial base, and there's a couple of trade shows, there's things in Vegas, like, there are things here or there, You could argue the Paris Air show, but I think what's going on here could be very, very special across industries. Um, so it's great to be here, um, doing a panel a bit later, um, with some friends, Lee Mosey from Palantir and some other folks. I'm looking forward to that, and, uh, it's been a great time.

AI assessment note: “A lot of our portfolio is involved. Um, and so, you know, if you look here”

Q Can you explain what you guys are doing?

A Yeah. So, um, this is, uh, yeah, it's funny. It's, it's, this is really like an AI expo, right? The focus here, and I got to give credit, um, to, you know, Michael Kratios, David Sacks, and Jacob Helberg, um, really helped push this with the admin, um, and spearhead this, um, and I also give credit to David Freeberg. Um, who has had a good vision for how to think about this. Um, and, you know, Jacob Daly and I are really excited to co-host this from the Hillen Valley Forum perspective. But, uh, you know, the, the, the concept is how do we have an expo? How do we showcase, how do we do demos? How do we showcase how AI is going to impact the country and create jobs, right? How's it going to build wealth? How's it going to save lives? Right now, a lot of what we talk about is how do we compete and win an AI? We show the technology, um, we speak about, The future from a futurist meta standpoint, how do we make it tangible and real? Um, how does the AI help rebuild the middle class in America? How does the AI help the middle class build wealth? How does the AI help the average person in jobs? And most importantly, how does it actually expand job opportunity and job creation? And so I think that's a big focus. Um, there is an executive order being signed. Um, so it's kind of around that and celebrating, um, that, but really offering a vision for Americans. Um, for what this can look …

AI assessment note: “this is really like an AI expo, right? The focus here”

Q Washington DC. I know you go there a lot. Um, these founders go there a lot. How do you think about the collaboration between this category? They're very close to Washington DC and policymakers. Is it real? Is it hype? Like we've seen so much over the course of the last couple of years, especially with the new administration. Um, how much of it should we be watching out for?

A Yeah, I mean, it's a great question. Um, it's definitely real. Um, You know, like all things, uh, you know, government, uh, is like any big organization. It's in, even, even with Doge, it'll still, uh, it'll still take time for them, uh, to move. Um, but you see the desire and the realization that it's, you know, somewhat existential for them to move faster. Um, and, you know, I would say you can look, uh, at the growing relationships between the tech industry, um, and, and, and, uh, DC, uh, and policymakers, um, has been really incredible to see, you know, what was somewhat contrarian. Uh, for folks who wanted to either do business, uh, full time, um, or, you know, uh, as a second business line, as a, as a, as a dual use company, um, it was very contrarian to focus on that, right? Like SpaceX, Anderle, Palantir, um, these companies were not obvious or consensus. And, you know, now that that has changed, um, you've seen the investor community and the entrepreneurs, uh, the entrepreneurs, these founders, uh, really, really going after opportunities. Opportunity sets to sell, um, hardware and software to the government, specifically in the aerospace and defense industry. Um, and so that's been great. I think the relationships, uh, have, have also deepened and grown. And, um, to your point, you know, if you look at trend over the last couple of years, the number of firms, the numb…

AI assessment note: “it's definitely real... but you see the desire and the realization”

Q Great. Wow. That's a pretty dense philosophy. That's good. Um, just to close out two more questions. One, what were your favorite moments of the last year?

A I think, uh, you know, one of them is actually our, our founder summit that we do. Um, you know, we, uh, as a firm will host a bunch of our founders, uh, every single year. Uh, we rent a resort out. Um, we actually host our LPs and then overlap. So they get time with their founders. Then we have our own founders. Founders bring their, their, their, um, spouses. They bring their kids. It's, it's very much like a, just a retreat and just kind of, you know, Get time away, uh, and build relationships with your peer group. And, uh, they bring, they bring their spouses, uh, and their kids. Um, and it's really like a retreat and a vacation. And, you know, we have, you know, all of our, you know, top position, all of our investments, all the founders come. Um, and it's a really incredible time. Um, one, because, uh, it's just, you know, it's, it's pretty beautiful. Uh, but two, it's, it's, you really see like the power of relationships. And, you know, I think one of the things in our industry, Uh, even at growth, like founders in the talent matter and like relationships matter. And like, no matter where you go down the stage of investing, uh, I think that like never gets lost, which is people just like doing business with people they like, um, relationships really matter and being able to create an ecosystem of, you know, relationships between all our founders is just really awesome. A…

AI assessment note: “one of them is actually our, our founder summit that we do.”

Q go public? We have enough capital. There's plenty of financial institutions that are private. There's actually no need for us to go public. So why don't we, why do we have to do anything? There's not to say like, we won't think about it in the future, but there's nothing that's actually like pressuring them because they have access to capital and they have everything they need to stay private.

A Yeah. I mean, it's a great question. People ask it a lot. Um, you know, I think, uh, you'll get different answers based on what founders you talk to, um, which is kind of interesting for their thoughts on this. As an investor, my general view is I think there's a ton of advantage in the private markets. And as I mentioned, there's, there's capital support there. Um, but, uh, at the same time, also structurally in order to do, you know, what SpaceX has done, you, you really like end of one companies that can do that. Um, and, uh, I think, you know, not every single company is on that same sort of path or timeline in order to be a compounder, you know, a 20 thirties, uh, uh, um, IRR for, you know, decades. I think a lot of businesses are just generally going to have to go public. Um, and, uh, you know, the ultimate fate of every business is not to be a, you know, multi-decade compounder at the end of the day. And so I, I don't think the capital market is going to support every business day in private. Forever. Um, uh, I think, you know, in some sense they're, they're setting the example, but, uh, that doesn't mean that it's the full path that you're going to follow. Um, and so, you know, I think that's one piece of it for sure. Um, in other words, like there's a ton of benefits to going public as well. And I think a ton of companies see that and they definitely will go out. Uh, y…

AI assessment note: “I don't think the capital market is going to support every business day in private”

Q To this a little bit earlier, but Trey Stevens has been a mentor of yours. What have you learned from him and how has it impacted your investing strategy?

A Been very, very fortunate to, uh, to, to have Trey as a mentor in my life. And, um, you're pretty open about that. Some people for some strange reason, like get competitive things with their mentors or they like, don't talk about that. I'm very open with like all these people that, you know, I would not be where I am if it wasn't for them. So it's a, I find that kind of interesting how some people struggle with that. Like, um, so I, I, I, I don't take all the credit for things that have, you know, worked out so far in my, in my career, in my life. Um, but, uh, Yeah. I think Trey's been incredible because, you know, look, he's, he's obviously open to, uh, once again, I mentioned earlier, like being able to invest in and role, you know, early in your career, it really set, set things up, uh, um, and, you know, and was just an incredible opportunity and, and, um, but the thing that's interesting is like Trey also has been an incredible source of real wisdom for me because, you know, I'm, I've always been, uh, you know, younger, more optimistic, more energetic, and Trey is default skeptical and, Pessimistic of many things. I think it's been really great to have a sounding board and kind of have wisdom from someone that's, you know, experienced a lot and, uh, has pioneered a lot, um, uh, in our industry. And, uh, also, you know, we'll, we'll default always bring a different view, wh…

AI assessment note: “Trey is default skeptical and, Pessimistic of many things. I think it's been really great”