Do Mega Funds Win the VC Future?

This Moatz versus Momentum thing... Moatz versus Momentum. Decagon is cool, but if a Quadracon or Dodecaon is better next year, I don't know.

• Focus on building sustainable competitive advantages.
• Invest in innovation that's hard to replicate.
• Be cautious about relying solely on momentum.

There's gonna be so many shiny pennies in AI and so much change that these chat apps are great, but when chat, voice, bots... it's just starting right now.

• Continuous innovation is key to staying competitive.
• Monitor industry trends and emerging technologies.
• Be prepared for rapid market shifts.

Letting the winners run is the first golden rule. That's probably a mistake then, being overly risk averse on my winners.

• Long-term growth can outweigh short-term gains.
• Understand investor perspectives on returns.
• Align with investors who support sustained growth.

Decacon's done an amazing job with Sierra. They've established an interesting lead... it wasn't crazy, you know, you're leaning in.

• High valuations bring attention but add pressure.
• Balance growth expectations with realistic goals.
• Consider long-term implications of high valuations.

We led the Series A for a company called Solve. It's AI for patent law.

• Specializing with AI in specific sectors can reduce competition.
• Deep expertise in a niche creates barriers to entry.
• Targeting underserved markets can lead to success.

I think what's happening is we just can't hire people that are worth it, so we're just gonna turn the AI on.

• AI reduces reliance on costly labor.
• Differentiate through innovation and speed.
• Embrace AI technologies to stay competitive.

If these old manufacturing guys take 6 years, but all of tech fires half their team, I mean, Mark Benioff, you know, the greatest generation said, listen, I've got 6000 people in support. I plan to repurpose them into sales.

• AI adoption in tech is accelerating.
• Integrate AI into products proactively.
• Prepare for industry shifts due to AI advancements.

Benchmark did something like 63 Series A's and had a 10% hit rate across 15 years. Andre did a 454 Series A's and had a 2% hit rate.

• Focused funds may have higher success rates.
• Mega funds invest in more companies but may have lower hit rates.
• Founders should consider fund strategy when seeking investment.

If you're losing... This is always true in venture, right? But especially these moments, take the deal.

• Carefully evaluate acquisition offers.
• Market shifts might make accepting a good offer advantageous.
• Prioritize the company's long-term success.

Half of all these knowledge workers are gonna be gone in 24 months, and can software capture 10% of that, 5% of that? Because what is the average dollar worker worth? $200,000 a year?

• AI will replace many knowledge workers' tasks.
• Reassess team needs focusing on unique human contributions.
• Utilize AI to increase efficiency and reduce costs.