This Week in Startups
00:30:22 · S0
[00:30:22] S0: Founders, here's a practical and tactical tip for you. Before you raise even a single dollar, before you even think about making that first or second hire, you need a real professional looking website. Every investor, every recruit, and every customer is going to Google you, then they're gonna wind up at your website, and you need them to walk away feeling confident that you're an established, real company that cares about your image. And having a beautiful, stunning website, well, yeah, of course, that can sound expensive, time consuming, maybe even a little intimidating if you don't have taste or you don't think you have taste, but you don't need to start seeking out tons of developers and designers. No. You just sign up for Hostinger. I checked out their AI website builder, and with a few clicks, I was already working on a clean landing page and a wait list sign up for a new startup idea I had, and we built it all in minutes. Hostinger's help doesn't stop when you've launched your website. No. Their AI agents will walk you through the basics of SEO, writing crisp website copy, email marketing, and more. Go to hostinger.com/twist and use the code Twist for an additional 10% off. They're already shockingly low. Black Friday and Cyber Monday pricing. Here's your chart before you go, Dave. Apple services, obviously, really huge. Anthropic 65,000,000,000 run rate. I guess if they're all subscription, we don't know if tokens have broken out there, OpenAI 50,000,000,000, Netflix 49,000,000,000, Salesforce 40,000,000,000, Adobe 27,000,000,000. People have talked a lot about that one being at risk and obviously Spotify has done pretty well.
00:31:51 · D.A. Wallach, S0, Dave McClure, Lon Harris
[00:31:51] S2: Can I just say one last thing, Dave, before I hand it over? Yeah. I have not given access to my email to anything yet. Really? That's my red line. Wow. That's what's going on [00:32:06] S0: in your email. [00:32:06] S2: What's going on? Well, a lot [00:32:08] S0: a lot of That's This is your Gmail. Stuff from, like, twenty years ago. Think you're corporate. [00:32:12] S3: I'm not saying what [00:32:13] S2: platform I'm using, but I have not given the keys to any of these guys. And I'm I'm... To me, that's the test. That's the test. Can you get... You know, can you get a 100,000,000 iPhone users to hand over all their data to one of these new companies. Absolutely. Apple is much more likely. Well, there's something going on. [00:32:38] S3: I think maybe- [00:32:39] S0: I have an idea for you, A. All you got to do is make a shadow email, make a new one, D. A. New at, and then all your emails that come in from this point forward get sent there. And then your old account is human only, and the new account is human plus machine. [00:32:55] S2: Then- It's complicated. [00:32:56] S0: It's a little complicated, Jason. It is complicated. Before we go on, [00:33:00] S1: we should shout out harmonic.ai. Thanks. [00:33:03] S0: We've another pause for the cause. [00:33:04] S1: No, for that amazing chart that you showed, we're comparing all the subscription services, pulled that directly from our friends at harmonic.ai. Thanks to them.
00:33:04 · Lon Harris, S0, D.A. Wallach, Dave McClure
[00:33:04] S1: No, for that amazing chart that you showed, we're comparing all the subscription services, pulled that directly from our friends at harmonic.ai. Thanks to them. [00:33:11] S0: Okay. And everybody go get harmonic.ai, especially if you're in the VC business. Basically imagine you had a database of every possible deal and a custom made LLM put together with it. Incredible for research. [00:33:23] S2: If I'm handing the keys over, I would much rather that that AI be predominantly local. [00:33:29] S0: Yes, me too. [00:33:30] S2: Know, this this edge stuff, I mean, know, again, for the top enterprises doing really complicated workflows and multi agents, all that's probably all gonna be cloud. I get that. But like, I still find the argument persuasive that for the average consumer, 99% of what they're gonna wanna use AI to do will be doable on the edge, on their iPhone, within a few years. So why wouldn't that be where we ultimately go? [00:33:55] S3: I think you were bringing up an interesting point about the consumer subscription. I think you were looking at customers, not necessarily users. I was doing a little research in the background here. Sorry, I didn't follow your rules. Top three consumer AI platforms, who do you think is one, two, three? [00:34:13] S0: It's got to be OpenAI and Google are pretty similar. I'm going to say Google on top, OpenAI, and then ChatGPT. [00:34:18] S3: Close. OpenAI is number one. Google Gemini is number two. Guess who's number three? You were not correct.
00:34:18 · Dave McClure, S0, Ben Black
[00:34:18] S3: Close. OpenAI is number one. Google Gemini is number two. Guess who's number three? You were not correct. [00:34:27] S0: Wait. Hold on. It's it's Microsoft? Not... And so is it... Yes. Is is it Google? [00:34:32] S3: So Canva. Canva is number three consumer AI usage platform right now. [00:34:39] S0: Consumer AI u... Wait. Wait. Usage or subscribers? Okay. That's a little bit. [00:34:44] S3: Usage. That's why I was point... I was saying Right. [00:34:46] S0: Say That's an interesting interpretation of Canva as an AI product. Because Canva obviously is a design product with AI features. I wouldn't say it's an AI first product. Yeah. Maybe I'm wrong. [00:34:57] S3: They're they're trying. They're trying. I mean, I think a lot of people were suggesting that Canva's, you know, business is getting eating... Eaten up by clawed design. You know, Figma certainly suffered from that perception in the market as well. And and, you know, Canva's growth on a revenue basis has slowed down a little bit, but there's still a pretty big platform for [00:35:16] S0: So wait. Wait. Ben, would you... If I told you, like, hey. You you you you you gotta put your money, your kid's college education, whatever, your retirement, and you had four choices there. You got the Figma and the Canva, and then you got the OpenAI and you got the Anthropic. Go ahead and tell us what percentage you put into each. [00:35:41] S4: Oh, man. I would definitely be all into OpenAI and Anthropic. [00:35:44] S0: Anything anything in Figma, anything in Canva, and why?
00:35:44 · S0, Ben Black, Dave McClure
[00:35:44] S0: Anything anything in Figma, anything in Canva, and why? [00:35:48] S4: I think Dave shows it really well. The the minute in this world perception of loss of momentum is everything. Yeah. And and, like, perception... Like, I I... I'm a secondary guy. Right? We watched Canva. The second that article came out, it said their growth went from 35% to 20, and the price dropped 25% in the secondary market. [00:36:11] S3: Only 25%? Dude, I 25%. I would say more like, you know, 30, 40. [00:36:15] S0: That's fascinating. Well, then there's a clearing price. [00:36:19] S4: Speaking as a canva holder. Say that. [00:36:21] S3: As a canva holder. [00:36:22] S4: But, like, just think about the impact that momentum has on how well you attract, you know, people to hire. You know, just think about, you know, partnerships. Like, it's... Right now, those companies have no momentum. None. They're just in a really hard spot. [00:36:39] S3: It's a tough story. [00:36:40] S4: They're gonna be nice businesses, but they're not gonna change the [00:36:43] S0: world anymore. Well, they get re underwritten D. A. And they put them at a different multiple on sales, different multiple on price earnings. It's just kind of like Buffett says, these things are voting mechanisms and then it becomes scale, right? Ultimately the market, it's not a public company. So it's part of voting and not scaling.
00:36:43 · S0, D.A. Wallach
[00:36:43] S0: world anymore. Well, they get re underwritten D. A. And they put them at a different multiple on sales, different multiple on price earnings. It's just kind of like Buffett says, these things are voting mechanisms and then it becomes scale, right? Ultimately the market, it's not a public company. So it's part of voting and not scaling. [00:37:03] S2: I agree, Jason. And I think, look, I'm not trying to be some so called bubble boy AI hater here. But to me, venture capital, what made venture capital fun when I got into it, when you guys got into it, was we're supposed to be the guys who imagine what the world looks like in ten years or twenty years. Okay? And and the guys on Wall Street are supposed to be the ones thinking about what's hot right now and where's the money gonna go next month. So, like, you know, short term, sure. Like, what are you gonna do? Be the guy who bets against Anthropic's IPO? [00:37:37] S0: Like, you're gonna