The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
01:07:29 · Harry Stebbings, David Tisch
[01:07:29] S1: I'm suggesting I would rather be in YCs than Sequoia seeds, yes. [01:07:32] S0: I think the real answer to your question is you're in a period of consolidation in venture, and the best firms are going to continue to compound in every which way because they're going to access the best founders, they're going to access the best scaled LP capital, and it's going to turn into the best set of returns. And there's going be a haves and have nots in venture. And I think there's probably, you know, 20 to 30 names that are competitive, and probably 10 that are outliers amongst that 20 to 30. [01:08:01] S1: What was the single most memorable founder meeting in the last twelve months? First founder meeting? [01:08:07] S0: Like in our firm, my partner Greg, you know, got to spend time with Noah from Instinct early. And I think for him, that was the mind blowing initial meeting and conversation. And we were lucky enough to be part of that early round. Oh, baby. Well done. I think for me, the things we've done in the past twelve months are not mature enough yet to talk about because they're coming. [01:08:35] S1: But just like, which founder did you find most mind blowing? When you were like, I left, like, wow.
01:08:40 · David Tisch
[01:08:40] S0: I have to be as excited every time I say yes. So I actually I don't operate like that. I operate like this. And if something rises above this, you lean in, and if something doesn't, you lean out. And so I view my job as a continuum of, like, steadiness in order to make the right decisions. And so I think what, to this point, satisfies me the most, to answer your question, is like the relationship that comes out of it. We funded this 22 year old who's building a game that's gonna release in like two months. Like a single game. Level difficulty, 1,000,000,000,000, right, to win a game business. But, like, he has been thinking about this game for a long, long time. And we're gonna see if it, like, hits. And if it hits, it's gonna be awesome. But, like, low probability of market, all these factors are negative. But he's awesome. And then met I this woman who's building this really cool piece of hardware that goes in, like, your home. It's a point solution that's, like, huge market. Everybody has a need for this. But, like, again, level of difficulty impossible. And then you meet veteran founders who are building a foundational model for a physical world application. And you're like, well, that's crazy. And you guys seem like totally the right people to do this. And then you have someone in science who's doing something. So I really do believe you have to be excited about everybody in some form equally. Who do I like hanging out with? I like, I'm a consumer mindset. I find the consumer founders the most interesting because they're nuts. Because they're going after the biggest, most confusing end user. And I think, you know, that's like, I learned from them. We're an early investor in a company called Triumph. I think spending time with Jake is like an amazing... I love talking to him. I love hearing about what they're doing. I think they'll start making a lot of noise in the coming year and sort of be one of those halves.
01:10:43 · Harry Stebbings, David Tisch
[01:10:43] S1: David, what what are you most excited about in the next ten years? [01:10:47] S0: I think seeing this play out. Where are we going? Where is the world going? It's, like, such a curious uncertainty right now. That's what makes this job a special opportunity, is you get to meet the people who are gonna answer that question and get to be part of their journey. I don't know. [01:11:06] S1: What is certain in the next five to ten years? [01:11:09] S0: What should be? Like, autonomous driving. That should be. Like, it irritates me that it's not today. Like, it would save lives. It would save... It would. The data on autonomous driving would save hundreds of thousands of lives worldwide if we just mandated it. But yet, like, freedom and all these other factors go into holding that back, but the technology is a solved thing. [01:11:34] S1: Well, mean, I'm not being rude. The technology is not like quite a solved thing for ambiguous cities, for challenging weather conditions. [01:11:41] S0: It's pretty soft. From a safety profile perspective, it's pretty soft. It's not perfect, but pretty soft. Like, if I told you pretty solved equals decrease of eighty percent of the deaths that automobiles cause, pretty soft. But freedom, like, I don't like that as a society, we don't adopt future things because we hold on to the wrong establishment. [01:12:08] S1: Well, it's because incentive design is is skewed in a lot of frameworks. [01:12:12] S0: I think I think modernizing society long term is the right way to to think. I think, like
01:12:12 · David Tisch, Harry Stebbings
[01:12:12] S0: I think I think modernizing society long term is the right way to to think. I think, like [01:12:19] S1: And, you know, Joe, I I agree with you, and I I think it's kind of like the roll up play versus an entirely new company play. I think it's much easier to create an incredible AI first school from nothing than try and incentivize innovation in stale architectures. [01:12:35] S0: Or we should do both. [01:12:36] S1: You should know. You can try both, but it's Just much easier to [01:12:39] S0: move forward, right? And I think the politics, the social dynamics, the economic dynamics of all of the challenges in the world would be best served with practical decision making than charged decision making. And that, I hope, is where we find ourselves over time. Because if you end up in the age of abundance, I think it's important to figure out how does that benefit everybody and not just a few? And I think technology generally is an equalizer and a positive force. Hopefully, AI can move in ways that impact health, impact science, impact every industry, such that it benefits a global population in, you know, great ways. [01:13:30] S1: I think this was probably the most low friction conversation we've had. There wasn't, like, a [01:13:35] S0: traumatic Should we fight at the end? [01:13:36] S1: Well, I I don't know. I feel like we should at least try. [01:13:39] S0: We fought over you deciding venture
01:13:39 · David Tisch, Harry Stebbings
[01:13:39] S0: We fought over you deciding venture [01:13:42] S1: It was the most nerdy venture fight. When you actually... We we fought about ownership versus diversification in portfolios. You're like, alright, guys. Calm down. Dude, I I love chatting to you. I I have so much... Regardless of me being wrong, I have so much respect for the business that you've built. [01:13:56] S0: Thanks for having me. I like coming on here.
01:14:00 · Harry Stebbings
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