01:24:50 · Jordi Hays, John Coogan
[01:24:50] S0: I think we're gonna need more Let's [01:24:51] S1: do that later. The headline, of course, just to keep you up to speed is that NVIDIA chips worth $1,000,000,000 were smuggled into China after Trump export controls. We've heard about this black market. We've heard about people stuffing suitcases full of them and flying around the country. They're not the biggest thing in the world, so it's easy to route them around. There's always a question, could the government have done more? Could Nvidia have done more? What are Who are who are the truly the bad actors? There's the [01:25:18] S0: Crazy graphic right there. [01:25:20] S1: Good graphic. Love it. But we will we will cover this later in the show. [01:25:24] S0: Danish is throwing some shade at Ilya. He says, how you got 32,000,000,000? He doesn't have 32,000,000,000. And don't take the Turkey flight to restore the hairline. I would have Pavel Durov's myself into a Greek god instant. It was financially feasible. Dude does not give an f about anything but the mission incredibly bullish. [01:25:47] S1: Okay. You So don't think super intelligence is gonna be able to cure hair loss? Like that's gonna be the single prompt. [01:25:52] S0: Right before cancer? [01:25:54] S1: Probably. It does seem more tractable. It doesn't seem that crazy. Very rude. Anyway, people having fun on the timeline. Oh, well, we have Andreessen Horowitz partner, Vineeta joining in just a few minutes. And there's a post about Andreessen Horowitz. So James Lynn says a 16 z in Sutter Hill Ventures. [01:26:11] S0: What's the context here?
01:26:11 · Jordi Hays, John Coogan
[01:26:11] S0: What's the context here? [01:26:12] S1: Oh, yes. [01:26:13] S0: Avadon Yes. Rodonski says recently got asked which VC firm changed the game like Steph Curry did [01:26:19] S1: for metaphors and tech these days. You love to see it. [01:26:22] S0: It's tough when you know nothing [01:26:23] S1: about examples of VC firms that changed the game like Steph Curry did for the NBA, Andreessen Horowitz and Sutter Hill Ventures, but in completely different ways. James Lynn here says a 16 z realized that everyone was undervaluing startups and massively overbid 10 x what other people were offering. I don't know if that's actually happened that often that you go get a term sheet and interesting comes in at 10 x the price. But they've certainly been aggressive on pricing and it's worked out in many cases. Yeah. For early rounds 50% higher. But Yeah. But So it got them Twitter, Instagram, Coinbase, GitHub, Anduril, Airbnb, Slack. Round sizes went up after that. Sutter Hills saw trends in cloud computing, incubated Snowflake from idea to IPO. They made Mike Speiser, a partner, the interim CEO, hired the technical cofounders, funded the entire series a. They had 20% stake in Snowflake at IPO at a $33,000,000,000 valuation. [01:27:18] S0: Worth 12 it was a $12,000,000,000 position for So pretty much the best incubation of all time.
01:27:18 · Jordi Hays, John Coogan
[01:27:18] S0: Worth 12 it was a $12,000,000,000 position for So pretty much the best incubation of all time. [01:27:25] S1: So a 16 z finds talent and makes several outsized bets. Sutter Hill sees a trend and operationalizes one to two companies completely in house. Now larger rounds are the norm, and the venture studio model is much more common. That makes a ton of sense. We'll have to ask Vineeta about that when she joins. What else do we have here in the timeline? [01:27:46] S0: I also think you can't you you can't leave YC out of that group. Right? It's Who [01:27:50] S1: else changed the game? An [01:27:53] S0: different model but highly highly highly effective. [01:27:56] S1: Yeah. I think the initial YC, the way it changed the game was that it made it completely possible for college new grads to go and start a company without getting any experience in enterprise or in business. And so that was the initial arb. Like, Sandhill Road existed. Sequoia Capital existed, Kleiner Perkins existed. But if the Airbnb guys had gone straight to Sequoia. [01:28:23] S0: Family round to get a friends and family round done.
01:28:23 · Jordi Hays, John Coogan, Vineeta Agarwala
[01:28:23] S0: Family round to get a friends and family round done. [01:28:26] S1: Exactly. So if the Airbnb guys, I think had showed up to Kleiner Perkins or Sequoia, who actually I think wound up doing the Airbnb deal later. I think Sequoia did. Pre YC, that might have been like, this is a little weird company. This is a little bit out of our sweet spot, but then you go through YC, you get coached by Paul Graham at the time and you polish things up such that you're ready to go and ready to talk to the big firms. And Paul Graham, I think famously told the Sequoia partner like you should do the Airbnb deal even as weird as it is. Like think about you know eBay for space and it worked out. Fantastic story. [01:29:00] S0: Pretty much good. [01:29:01] S1: We have Vineeta from Andreessen Horowitz in the studio. Welcome to the stream. How are you doing? [01:29:06] S7: Hello. How are you doing? I'm your Airbnb fan. [01:29:09] S1: Yes. What yeah. What's your what what what's your take on this on this a 16 z changing the game by recognizing that everyone was undervaluing startups and massively overbidding for early rounds? What do do you think that resonates? Do you feel like Andreessen Horowitz has changed the game in venture? [01:29:25] S0: Totally unbiased. Take two coming out.
01:29:25 · Jordi Hays, Vineeta Agarwala, Casey Neistat
[01:29:25] S0: Totally unbiased. Take two coming out. [01:29:28] S7: Totally unbiased. I do believe my partners are changing the game. No. And part of what's amazing about a 16 z is our willingness to bet in every sector, every vertical, every part of the economy, really every part of the economy, you know, both locally, domestically, and globally. So my corner of the world, it's a big corner [01:29:45] S6: of the world. [01:29:45] S7: It's a $5,000,000,000,000 corner of the world is health care. Yep. And one of the things I love about our firm is that we've really established a dedicated strategy here too Yep. And hopefully changing the game here too.
01:29:45 · Vineeta Agarwala, John Coogan
[01:29:45] S7: It's a $5,000,000,000,000 corner of the world is health care. Yep. And one of the things I love about our firm is that we've really established a dedicated strategy here too Yep. And hopefully changing the game here too. [01:29:57] S1: Yeah. Has, how has bio investing, healthcare investing changed? We were talking about the Airbnb example. It feels like it's it's it's easy for a couple folks with just a hope and a dream. They don't need to do a friends and family round. They can just go to Sandhill Road. They can go to places like YC. They can go to Andreessen Horowitz directly and and raise a seed round and have enough to actually pay the bills, hire a couple people, do a couple tests, launch a consumer app, launch an enterprise app. Has there been a meaningful change in the way health care and bio companies get started? For a long time, it felt like the only way to do a company in that space was you're at MIT and you do some partnership with Flagship Pioneering and then you IPO and then you're living and dying by your FDA trials. The traditional venture path felt very just like a completely separate track, but how has it evolved from your experience?