01:39:22 · Rodrigo Liang, John Coogan
[01:39:22] S4: Yeah. Well, when your chip design, as you guys know, it takes you two years to design and you've to go through TSMC, you've got to build these wafers, and you've got to build the systems all mean, there's a three or four year cycle. Right? So you're always it's a it's a blend between engineering and, fortune telling. Right? And so you're kind of mixing those. But but the reality the reality is you're always doing that. But here's the difference when when it comes to enterprise. And we we you know, not only we have JPMorgan, but last month, we announced a huge partnership with Vista Equity, has 92 portfolio companies building all these applications. And so what is the biggest thing that we run out with AI is we don't have offtakes. We don't have offtakes. Now what you're seeing is the JP Morgans of the world, the Empress of the world, the Vistas of the world, all these applications, all turning SaaS companies into AI first companies, and you're seeing the demand pull through. What we're excited about this is not only the web, the chips. You got connected with the data center that's there. Oh, the next thing is connected with the end user, the end off taker that applies AI into something that's useful to new businesses. And so so we're super excited about the JPMorgan, the Vista, all of these type of That's our that's our mentality is what are people using it for? Solve that problem. Everything underneath follows. [01:40:34] S1: Mhmm. Thank you so much for coming on the show. Great. Thank Congratulations on the massive round.
01:40:34 · John Coogan, Jordi Hays, Alana Palmedo, Rodrigo Liang
[01:40:34] S1: Mhmm. Thank you so much for coming on the show. Great. Thank Congratulations on the massive round. [01:40:39] S0: Nine year overnight success. [01:40:40] S1: Can't wait to talk [01:40:41] S0: to you [01:40:41] S1: again soon. Have a great rest of your week. Thank you. Talk to you soon. Goodbye. Let me tell you about public.com, investing for those who take it seriously. They got stocks, options, bonds, crypto, treasuries, and more with great customer service. Our next guest is Alana Palmino from Paradigm. [01:40:59] S9: Hey, What's up? [01:41:00] S1: What's up? [01:41:01] S4: Going on? [01:41:01] S1: Welcome to the show. Our last guest raised 1,000,000,000. You had to one up them. You had to two up them with 1.2. Tell us about the new fund. Oh, [01:41:12] S9: man. Thanks for having me, guys. Really great to be We're super excited about it. We we raised 1,200,000,000 to go after the new opportunity set, Frontier. Thanks [01:41:25] S1: for warming that up for me. You're welcome. It sounds nice and warm. Fantastic. [01:41:31] S0: Sorry. Continue. Continue. 1,200,000,000 for Invest. [01:41:36] S9: Alright, guys. We're we're going big. We're we're going after all frontier tech. We're really excited about it. Obviously, you guys know we got our our, start in crypto back in 2018. This is our fourth fund. [01:41:48] S1: Yeah. [01:41:48] S9: Pretty pretty excited about it. But I feel like
01:41:48 · Alana Palmedo, John Coogan
[01:41:48] S9: Pretty pretty excited about it. But I feel like [01:41:51] S1: I don't know. This is being somewhat positioned as, an expansion of the vision or the thesis, but I feel like Paradigm's been investing in broader frontier themes for years now. Like, can you talk about some of the the history of expanding beyond crypto and and the key moments in the fund's history that sort of woke you up to broadening the thesis? [01:42:15] S9: Yeah. Well, I think in 2018, crypto was the most interesting frontier to be investing into. And, like, that really was the heart of how we started building the firm. Mhmm. And it was the it was the thesis behind being the sort of researchers, builders first. How do you get really close to the tech to be able to understand and underwrite these things from first principles? And then I think over time, it's become pretty obvious that it's not the only frontier and really hard to ignore what's happening in AI. But actually, like, I would say it's more than that. It's like the world itself has started to blend together. Yeah. And drawing these concrete lines is, like, no longer applicable. I think that, like, even something that called itself a crypto project years ago today, like, things that are right on the periphery, tech is just all touching each other. And when you think about trying to separate it, it just doesn't work that way.
01:42:15 · Alana Palmedo, John Coogan
[01:42:15] S9: Yeah. Well, I think in 2018, crypto was the most interesting frontier to be investing into. And, like, that really was the heart of how we started building the firm. Mhmm. And it was the it was the thesis behind being the sort of researchers, builders first. How do you get really close to the tech to be able to understand and underwrite these things from first principles? And then I think over time, it's become pretty obvious that it's not the only frontier and really hard to ignore what's happening in AI. But actually, like, I would say it's more than that. It's like the world itself has started to blend together. Yeah. And drawing these concrete lines is, like, no longer applicable. I think that, like, even something that called itself a crypto project years ago today, like, things that are right on the periphery, tech is just all touching each other. And when you think about trying to separate it, it just doesn't work that way. [01:43:07] S1: How are you thinking about the early stage? There's been some chatter on the timeline about, oh, like, every VC just wants to pile more money into the biggest private companies, the trillion dollar private companies. Why would I waste money or time talking to an early stage founder? How are you thinking about opportunities at early stage, mid stage, late stage? What even is mid stage now? Is that 10 a mere $50,000,000,000 company early stage at this point? Who knows?
01:43:07 · John Coogan, Alana Palmedo, Jordi Hays
[01:43:07] S1: How are you thinking about the early stage? There's been some chatter on the timeline about, oh, like, every VC just wants to pile more money into the biggest private companies, the trillion dollar private companies. Why would I waste money or time talking to an early stage founder? How are you thinking about opportunities at early stage, mid stage, late stage? What even is mid stage now? Is that 10 a mere $50,000,000,000 company early stage at this point? Who knows? [01:43:34] S9: Yeah. I think well, I think stages is a hard thing to define because, like, what are we really talking about? Are we talking about the stage of the company, the valuation? Like, I think it's impossible to not be backing some of the earliest founders and folks who are coming out with new great ideas. And so for us, it's like talent led, would say. You find great people, oftentimes they're in their early twenties. So I don't think you can ignore the early stage, but you also can't ignore the dynamic that you're describing, is like the power law of what's happening with these larger later stage companies and how much they're able to capture in the compound rate of growth. So I think it's like you have to do both. [01:44:14] S0: From an actual product standpoint, are you breaking out the fund? Is there some amount segmented for the early stage, some for growth, some for incubation? Incubation? How should founders be thinking about the new vehicle?
01:44:14 · Jordi Hays, Alana Palmedo, John Coogan
[01:44:14] S0: From an actual product standpoint, are you breaking out the fund? Is there some amount segmented for the early stage, some for growth, some for incubation? Incubation? How should founders be thinking about the new vehicle? [01:44:30] S9: It'll be truly stage agnostic. So we're gonna invest in everything from super early seed stage, even pre seed in some cases, all the way into growth markets. We also, you know, are we have a core flagship fund which is an open ended vehicle and so we invest into public markets too. [01:44:47] S1: Oh, interesting. Very cool. What is the effect of this year's IPOs? What have internal learnings from the the the the height of the opening of the y of the IPO window? It feels like it's sort of open, but maybe not fully wide open. We've got a lot of exciting IPOs that have done well. But how is that affecting the fund and your your feeling around the market right now?