Why Mega Platforms Will Dominate Venture Capital

\"I think this is fundamentally different... there's this broad-based consensus that failure to embrace AI to the fullest extent as a company is just like existential to its existence.\"

• Enterprises are adopting AI faster than ever before.
• There's urgency due to fear of being left behind.
• Founders can leverage this demand for rapid growth.

\"You think it's the domain expertise that matters. It is without a doubt, the AI expertise that is more scarce and therefore matters more.\"

• Prioritize building teams with deep AI expertise.
• AI talent accelerates innovation and product development.
• Domains can be learned; AI skills are critical.

\"Stack rank, OK. Market, traction, team. Team, traction, market. Why? I've already told you why I think people are more important than everything.\"

• Investors prioritize the quality of the team above all else.
• Great teams can achieve traction even in challenging markets.
• Focus on building a strong team to attract investment.

\"When a larger, let's call it multi-stage firm does lead a seed round and decides not to lead the next round, that is certainly something that... the next round of investors are going to want to understand better.\"

• Be aware future investors may see non-participation as a negative signal.
• Assess large firms' track records in supporting follow-on rounds.
• Weigh risks and benefits of partnering with multi-stage investors at seed stage.

\"It is without a doubt, the AI expertise that is more scarce and therefore matters more.\"

• Prioritize hiring AI experts to build cutting-edge products.
• AI expertise can be more critical than domain knowledge in fast-evolving fields.
• Teams with deep AI skills can innovate faster.

\"What matters is that you put the work in to develop a deep connection and a deep set of insights with that founder, their vision, and the company that they're trying to build.\"

• Develop strong relationships with investors over time.
• Investors who understand your vision can better support you.
• Start building investor relationships early, not just when fundraising.

\"There's so many scenarios in which preserving optionality makes a huge, huge difference. And therefore, keeping dollars in and your... post-money of your last round as low as possible is very, very beneficial.\"

• Raising too much at high valuations can limit future options.
• Maintaining flexibility allows for easier pivots or exits.
• Be strategic about how much you raise to control your trajectory.

\"The act of sizing a market is just, at least from my experience, so imprecise that it borders on being a fool's errand.\"

• Market sizing for new products is imprecise; don't over-rely on it.
• Focus on building innovative products that can create markets.
• Great founders can expand markets through ingenuity.