Think Like a Public Market Investor

"I do think though, I mean, just to give you an example, I mentioned earlier how all of those companies in '99 that got started up, most of them did not do well... I think that the AI companies might have more of a chance... But nonetheless, I do think we'll go through a period of turbulence and uncertainty..."

• Anticipate market corrections by reinforcing fundamentals.
• Learn from past downturns to prepare your company.
• Maintain agility to navigate turbulence.

"We're pouring tremendous amounts of money into these companies at seeming very high valuations... It's really easy to do, and lots of people are doing it... Where exactly the value shakes out, how valuable these companies will be, will be a very interesting couple of years..."

• Prioritize building real value over chasing hype.
• Recognize high competition in AI.
• Solid fundamentals sustain long-term success.

"I actually think they'll coexist, and I think they're going to coexist in a really phenomenally positive way... What those companies can do and are doing are layering in the AI on top of that workflow that the customer is already used to working with..."

• Integrate AI into existing products for added value.
• Leverage familiar workflows to enhance adoption.
• Combining AI and SaaS improves user experience.

"Our job, of course, is to try and pick the one, and I mean the one, the top one, as opposed to number two or number three... We spend a tremendous amount of time talking to the customers... We want to look at the company itself and see if the team is really equipped to go to the next level."

• Balance your vision with strong execution.
• Demonstrate your team's ability to scale.
• Customer validation helps you stand out.

"OpenAI just raised at $600 billion... To get a 3x return on that money, they've got to be valued as one of the top 5 most valuable companies in the world... The problem with AI is that it has such promise, much like the internet did back in 1999..."

• Be realistic about valuations and potential returns.
• Focus on building sustainable value, not just hype.
• Learn from historical overvaluation pitfalls.

"You don't get that until a company goes public or gets acquired... You don't have to look very carefully at how you run your business and how it's going to improve on a quarterly basis... And you don't get very careful on how you spend your money because the private markets don't hold you to the standards..."

• Going public offers growth insights.
• Public markets bring discipline and accountability.
• Delaying IPO might limit valuable feedback.

"I think we may be in for something similar in the AI world... The problem with AI is that it has such promise, much like the internet did back in 1999... we might go through a really interesting shakeout on AI."

• Be wary of overhype; focus on sustainable growth.
• Anticipate challenges by learning from past cycles.
• Build solid foundations to endure market changes.

"They're not conventional. They're really great entrepreneurs are just a little different from you and me and most of us. They have this determined view of their product and their world that they stick to long beyond when they should."

• Embrace your unique vision and determination.
• Persistence in your vision can differentiate you.
• Being unconventional can be a strength.

"It is really lazy and ironic. Those of us who've been doing it for a while certainly have learned the hard way that it is not a great way to make most of your investment decisions... there's lots of things to look at in addition to just that revenue momentum."

• Build solid fundamentals beyond revenue growth.
• Investors consider customers and management dynamics.

"Price absolutely matters. It matters a tremendous amount. You can pay up for great companies, but there are always hurdles and challenges that impact value and timing, so you can't just go out and pay up for everything as seems to be the case today."

• Be cautious of overvaluation; it can hinder future funding.
• Fair pricing builds stronger investor relationships.