20VC: Foundation Models are the Fastest Depreciating Asset in History, Lina Kahn is a Threat to American Capitalism, PE is Not Coming to Save the M&A Market & How China Could Overtake the US in the AI Race with Michael Eisenberg

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

The Twenty Minute VC

Finance, Venturecapital, Tech News, News, Siliconvalley, Technology, Investing, Startups, Business

4.4 • 637 Ratings

🗓️ 19 June 2024

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

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Summary

Michael Eisenberg is a Co-Founder and General Partner @ Aleph, one of Israel's leading venture firms with a portfolio including the likes of Wix, Lemonade, Empathy, Honeybook and more. Before leading Aleph, Michael was a General Partner @ Benchmark.

In Today's Show with Michael Eisenberg We Discuss:

1. The State of AI Investing:

Why does Michael believe that "foundation models are the fastest depreciating asset in history"?
Are we in an AI bubble today? As an investor, what is the right way to approach this market?
Who will be the biggest losers in this AI investing phase?
Where will the biggest value accrual be? What lessons does Michael have from the dot com for this?

2. Where Is the Liquidity Coming From?

Why does Michael believe that it is BS that private equity will come in and buy a load of software companies and be the primary exit destination?
Why does Michael believe that IPO windows are always open? Should founders go out now? What is good enough revenue numbers to go out into the public markets?
Why does Michael believe that Lina Kahn is a threat to capitalism? How does Michael predict the next 12-24 months for the M&A market?

3. AI as a Weapon: Who Wins: China or the US:

Does Michael agree with the notion that China is 2 years behind the US in AI development?
Does Michael agree that AI could be a more dangerous weapon in wars than nuclear weapons?
Why does Michael suggest that for all founders in Europe, they should leave?
US, China, Israel, Europe, how do they rank for innovating around data regulation for AI?

4. Venture 101: Reserves, Selling Positions and Fund Dying:

Why does Michael only want to do reserves into his middle-performing companies?
What framework does Michael use to determine whether he should sell a position?
Which funds will be the first to die in this next wave of venture?
Why does Michael not do sourcing anymore? Where is he weakest in venture?
Why does Michael believe that no board meeting needs to be over 45 mins?

Transcript

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0:00.0	Foundation models are the fastest appreciating asset in history. Why invest in a business where the assets walk out at night? If I'm in Europe and I'm starting a company, I would get out. Lena Conno said openly is, I think, a threat to American capitalism. Whether Biden or Trump gets elected, she needs to go. I don't buy that the IPO window is closed. The IPO window is wide open. The question is what's the price you're willing to take. Welcome back, 20VC with me, Harry Stebbings, and what a show we have for you today?
0:23.4	Joining me is a dear friend, is wide open. The question is, what's the price you're willing to take? Welcome back to 20VC
0:21.0	with me, Harry Stebbings, and what a show we have for you today. Joining me is a dear friend, LP and 20VC, and one of the best, Michael Eisenberg. Now, Michael is a co-founder and general partner at Aleph, one of Israel's leading venture firms, with a portfolio including the likes of wicks, lemonade, empathy, honey book and more.
0:38.7	And before leading a laugh,
0:40.0	Michael was a general partner at the World War with a portfolio including the lights of wicks, lemonade, empathy, honeybook and more.
0:38.7	And before leading a left, Michael was a general partner at the world-renowned benchmark.
0:42.9	But before we dive in, I want to talk about Cooley, the global law firm built around
0:47.4	startups and venture capital.
0:49.3	Since forming the first venture fund in Silicon Valley, Cooley has formed more venture capital funds than any other law firm in the world, with 60 plus years working with VCs. They help VCs form and manage funds, make investments and handle the myriad issues that arise through a fund's lifetime. We use them at 20 VC and have loved working with their teams in the US, London and Asia over the last few years.
1:12.5	So to learn more about the number one most active law firm representing VC-backed companies going public,
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	...

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