Why Fund Returners Aren't Enough Today

"In the long run, could AI actually have the opposite impact where the regular engineers become... maybe they did 100X or they become 70X, and that's good enough."

• AI tools may boost productivity of all engineers.
• Consider how this affects hiring and team composition.
• Stay ahead by continuously upskilling engineering teams.

"I just don't think you can win today if you're comfortable leaving work at 5... you're gonna get destroyed by the kids in SF."

• Recognize the importance of intense focus in competitive fields.
• Adapt work practices to meet global standards of innovation.
• Address cultural attitudes toward work to attract top talent.

"While I do think eventually a winner or two emerge... there may be a lot of investor value destruction on the way up because people are competing on customer acquisition, on price."

• Differentiation is key amid crowded AI markets.
• Avoid unsustainable spending to outpace rivals.
• Focus on long-term value over short-term gains.

"The ability to... drive it to a new architecture... or add a second product is... what will separate the companies who... reaccelerate to 40 and make it."

• Continuously innovate to meet market demands.
• Be prepared to pivot or expand product offerings.
• Leadership must embrace change and drive transformation.

"When I built 3 large venture-backed companies... the last thing I would ever want is to be public ever again... it took all the fun out of being a founder for me."

• Weigh the pros and cons of going public vs. staying private.
• Understand regulatory and operational burdens of being public.
• Consider company culture impact over extended private periods.

"I think we're going to see 10X engineers even better, and I think half of these sales teams will be gone in 2 years... the engineers are gonna be even better."

• Invest in top engineering talent to leverage AI advancements.
• Expect increased automation, reducing need for larger teams.
• Focus on attracting engineers who can maximize AI tools.

"I've been doing secondaries... when I see that a company is only a 2 or 3X from where it is... I'm very happy to recycle."

• Consider selling some equity if future upside is limited.
• Reinvest proceeds into higher potential opportunities.
• Balance long-term gains with short-term liquidity needs.

"We are judged on IRR... it's very hard to impact it directly... it's the hardest element to control."

• Recognize that investors value quicker returns (higher IRR).
• Aim to scale efficiently to provide timely exits.
• Be aware that timing can be as critical as the magnitude of returns.

"I honestly think that today is a much bigger gold rush than 2021... I've never seen such a gold rush because this gold rush goes all the way down to high school kids."

• Recognize the unprecedented opportunities AI presents across all levels.
• Leverage the enthusiasm to attract talent and investment.
• Stay aware of the potential for hype and maintain focus on sustainable growth.

"What struck me in Venture, we're still in the middle of an AI bubble... people are underestimating the risk of zeros, even though something can go from zero to 100 million ARR very quickly."

• Be cautious of inflated valuations in AI; rapid growth can be followed by sharp declines.
• Differentiate your startup with unique data sets and valid business models.
• Anticipate intense competition and disruption from industry giants.