Episodes
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In this episode of Turpentine VC, Erik Torenberg interviews Lauren Farleigh and Zach Perret from Mischief VC, discussing their experiences as founders and how they leveraged those to build their venture firm.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at https://oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Mischief VC: https://www.mischief.vc/
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X / TWITTER:
@zachperret
@LFarleigh
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Lauren Farleigh and Zach Perret from Mischief VC leverage their founder experiences (Zach is CEO of Plaid, Lauren founded Dote Shopping) to build a differentiated VC firm.Mischief started with a $30M fund one and grew to an $80M fund two, focusing on early-stage investments.Both started angel investing in 2017 and saw a market opportunity to institutionalize their approach based on founder-to-founder support.They identified a gap: few VCs have true zero-to-one, finding product-market fit experience.Zach shares how early angel investors who were former founders helped Plaid at critical moments, inspiring Mischief's model.They're a generalist fund investing in software companies, more founder-driven than thesis-driven, with $1-4M checks.Their approach is hyper people-driven: they follow the best people in their network rather than doing outbound sourcing.They host structured dinners with 10-12 people, asking attendees to recommend others, effectively building their network.Send quarterly updates to portfolio companies like a monthly company update, keeping founders engaged.Transitioned from participating to leading rounds after a portfolio founder wished they had led his successful round.They track potential founders before they start companies, building long-term relationships.Play a "ground game" focused on delivering results rather than being loud on social media.Fund two fundraising was harder than fund one due to market conditions and larger size.Zach is part-time at Mischief while running Plaid, focusing on sourcing and unique situations where he has relevant experience.Having four GPs provides the right level of availability while allowing each to focus on their strengths.Fund two has primarily first check focus with aggressive recycling, avoiding follow-ons that dilute returns.Currently feel capital constrained with four GPs on $80M, planning careful growth while maintaining responsible investment practices.Focus on building training modules for common founder challenges like recruiting and sales, not on firm marketing.Most founders struggle with fear/indecision in cold sourcing rather than making mistakes; Zach advocates direct outreach. -
This week on Turpentine VC, we are releasing an episode from The Cognitive Revolution, hosted by Nathan Labenz. Nathan sits down with Olivia Moore and Anish Acharya from Andreesen Horowitz to discuss the trends, investment strategies, and future potential of AI voice technology in both B2B and consumer sectors, exploring its implications for various industries including call centers, SMBs, and personalized AI companions.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
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RECOMMENDED PODCAST:
🎙️ The Cognitive Revolution
The Cognitive Revolution is a podcast about AI where hosts Nathan Labenz and Erik Torenberg interview the builders on the edge of AI and explore the dramatic shift it will unlock over the next decades.
Spotify: https://open.spotify.com/show/6yHyok3M3BjqzR0VB5MSyk?si=7357ec31ac424043&nd=1&dlsi=060a53f1d7be47ad
Apple: https://podcasts.apple.com/us/podcast/the-cognitive-revolution-ai-builders-researchers-and/id1669813431
Youtube: https://www.youtube.com/@CognitiveRevolutionPodcast
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at https://oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
The Cognitive Revolution Website: https://www.cognitiverevolution.ai/
a16z Website: https://a16z.com/
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X / TWITTER:
@illscience
@omooretweets
@labenz
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Olivia Moore explains they track AI trends across platforms like Twitter, Instagram, TikTok, and YouTube, with YouTube being surprisingly important for AI tool adoption.They emphasize the importance of actually using AI products hands-on to build intuition about what works.Consumer demand signals (like people trying to make ChatGPT act as a therapist) help identify opportunities for standalone focused products.Anish highlights that voice is the original form of human communication but has been largely unaddressed by technology until now.Many voice AI startups gaining traction are B2B-focused, particularly for call centers and customer service.Current voice AI has largely solved basic latency and understandability issues, but still needs improvement in emotionality, interruption handling, and conversation flow.The most successful voice AI companies are specializing in specific verticals rather than offering generic solutions.Happy Robot (freight broker voice AI) demonstrates how AI can handle complex tasks like negotiation by introducing human-like elements such as "checking with a supervisor."AI voice agents typically disclose they are AI, but users quickly adapt to conversational patterns regardless.AI voice agents can offer advantages over human agents, including consistent friendliness, superhuman patience, and zero wait times.For SMBs, vertical-specific voice solutions are emerging for restaurants, spas, home services, and other industries.In the creator economy, tools like ElevenLabs offer voice cloning and creation, while platforms like Delphi enable interactive digital clones.For children, AI companions could serve as positive social models, tutors, and emotional supports.Companion AI usage has surprised investors, with more demand for "AI boyfriends" than "AI girlfriends" and usage resembling interactive fiction more than expected.Voice AI is expected to eventually become a modality feature on every product and device, serving as an "emotional bicycle" that extends our emotional capabilities. -
Missing episodes?
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Andrew Braccia, partner at Accel for nearly two decades, sits down with Erik Torenberg to discuss the firm's evolution from Silicon Valley early-stage investor to global, multi-stage powerhouse. Braccia explains Accel's two major strategic shifts: global expansion with local teams in Europe, India, and beyond; and the launch of their growth fund in 2008 targeting bootstrapped companies like Atlassian, Qualtrics, and Squarespace.
Braccia reflects on lessons from his journey from Yahoo to venture capital, emphasizing the importance of "wiping your mind clear" of past experiences that might cloud judgment of new opportunities.
The conversation provides rare insight into how Accel maintains operational excellence at global scale while preserving their early-stage venture DNA in an increasingly competitive landscape.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at https://oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
AcceL: https://www.accel.com/
The Slack Origin Story: https://techcrunch.com/2019/05/30/the-slack-origin-story/
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X / TWITTER:
@Accel
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Accel started over 40 years ago focusing on early-stage venture capital (seed, Series A) and maintains this core business today.The firm expanded globally to Europe, Israel, India, and other markets with separate teams and funds to identify defining technology companies worldwide.In 2008, Accel launched growth funds to invest in bootstrapped technology companies that didn't fit traditional Series A parameters.Notable growth investments included Atlassian, Qualtrics, Squarespace, and CrowdStrike, companies that might not have intersected with Accel otherwise.Global expansion and multi-stage investing introduced communication and coordination challenges that require strong partnerships to overcome.Andrew Braccia grew up in the Bay Area, studied business at University of Arizona, and joined Yahoo in 1998 when the internet was still emerging.Working at Yahoo gave Andrew broad exposure to various internet segments and connected him with talented people who later became successful entrepreneurs.Today's AI investment landscape has similarities to 1998-99, with high capital requirements and significant burn rates.In AI, Accel has invested more in infrastructure and application layers than foundational models, including companies like Scale AI and Decagon.Venture capital is becoming a permanent asset class that will continue to grow in capital allocation across various firm structures.Increasing competition in venture capital makes operational excellence and firm culture increasingly critical for long-term success.The biggest lesson Andrew learned is to avoid letting past experiences create "false negatives" that prevent seeing new opportunities. Another key lesson is not to fear failure and to take more shots with great entrepreneurs.The Squarespace investment in 2009-2010 exemplifies Accel's entrepreneur-focused approach and ability to support companies through multiple stages.The biggest mistake in venture capital is missing an opportunity because you didn't know it existed.Failures often stem from not moving quickly enough, lacking decisiveness, or carrying intellectual baggage about certain categories. -
This week on Turpentine VC, we’re sharing Erik Torenberg’s interview with Susa Venture’s Chad Byers, which originally aired in September 2023. Chad discusses the firm's journey, their fund structures, and their vision for specialized seed investing, emphasizing the importance of focus, discipline, and adapting to market dynamics.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
☁️Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Fund V Announcement: https://www.linkedin.com/posts/chadabyers_dear-founders-were-excited-to-announce-activity-7307890222753554432-JOLt
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X / TWITTER:
@chadbyers
@SusaVentures
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Susa Ventures evolved from a $25M fund in 2013 to multiple funds under separate brands with distinct investment focuses.The firm is purposely reorganizing into three distinct branded strategies for better founder experience and clarity.Susa maintains fund size discipline, deliberately staying under $200M for seed investments to maintain quality.They focus on five specific categories: FinTech, Healthcare, Logistics, B2B SaaS, and Infrastructure.Their investment philosophy centers on concentrated bets with 35 companies per fund and higher ownership stakes.Notable successes include Robinhood (which was passed on by 110 firms) and Flexport from their first fund.The best portfolio companies typically needed the least help from investors.Value-add strategy focuses on being helpful during "crux moments" rather than constant interference.Investors should provide frameworks and historical data instead of specific operational advice.Non-"hot" deals often produce better returns due to lower entry prices.Specialist investors are increasingly winning over generalists in the venture landscape.Chad predicts venture capital is bifurcating into large multi-stage asset managers and specialized firms.The firm aims to "maximize value creation per dollar" rather than maximize assets under management.Susa's goal is to become the #1 seed firm over the next decade through specialization.Price discipline and high ownership focus remain central to their strategy going forward.Venture capital is becoming more like other asset classes with potentially lower overall returns.The industry's power law is intensifying with the top 5% of firms generating most returns.There's increasing competition from former operators now working in venture capital. -
This week on Turpentine VC, we’re dropping an episode from David Weisburd’s “How I Invest Podcast” with Nichole Wischoff of Wischoff Ventures. Nichole discusses her impressive $50 million fundraise, closed in a bear market, sharing her strategy, brand-building efforts, and tips on leveraging social media to attract investors.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️How I Invest with David Weisburd
Apple Podcasts: https://podcasts.apple.com/us/podcast/how-i-invest-with-david-weisburd/id1697772657
Spotify: https://open.spotify.com/show/2MHgyKMmJgznPI66MLxZfC
YouTube:https://www.youtube.com/channel/UCncFI0XEvTu7k4er6BgVN9g
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Wischoff Ventures: https://www.wischoff.com/
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X / TWITTER:
@NWischoff
@DWeisburd
@eriktorenberg
@TurpentineVC
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TIMESTAMPS:
(00:00) Intro
(00:35) Nichole Wischoff’s $50 million fundraise
(01:46) Building a brand and distribution
(02:50) The power of media in venture capital
(05:21) Fundraising strategies and challenges
(13:50) Sponsors: Oracle | Squad
(17:01) Leveraging relationships and networks
(22:39) Building a Twitter following
(29:37) Conclusion and contact information
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HIGHLIGHTS FROM THE EPISODE:
Nichole Wischoff raised $50 million for her fund in five months during summer 2024's tough market.Her strategy focused on a first close of 50% by May and final close in August, creating momentum.Performance matters: her previous funds were top decile performers, providing essential credibility.$38.5M of the $50M came from just six LPs, with Sendona anchoring at $15M.Brand building through social media gave her the ability to "get on the phone with anyone" after two years.She got everyone in the data room simultaneously with a clear timeline, creating competitive pressure.After securing first close, she emailed everyone still in the pipeline to create urgency and force decisions.For social media success, she recommends authentic opinions and willingness to be wrong publicly.She narrowed relationships from 50 fund managers down to 8-10 truly trusted partners (the 80/20 rule).Always fundraise when you need capital, not based on market timing or what other GPs say. -
This week, we’re re-releasing Erik Torenberg’s interview with Alexis Ohanian. Alexis discusses his journey from co-founding Reddit to creating the venture firm Seven Seven Six, detailing its unique approach of using software to enhance venture capital operations and founder support, transparency, and accountability
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
☁️Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Seven Seven Six: https://sevensevensix.com/
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X / TWITTER:
@alexisohanian
@sevensevensix
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Alexis Ohanian co-founded Reddit in 2005, helped lead its turnaround in 2014, and started Seven Seven Six venture firm in 2020 after splitting from Initialized Capital.Seven Seven Six operates as "a tech company that deploys venture capital," applying tech company principles to venture investing.Traditional venture capital lacks internal metrics and accountability systems that are standard in other industries.Cerebro is Seven Seven Six's software platform that tracks all firm activities and provides founders with direct access to the team's network.Seven Seven Six displays real-time metrics publicly on their website, including tasks completed, pitch meetings organized, and response times to founders.Partners' response times to founders are tracked and made visible to create accountability.The "Amplify" feature lets founders draft social content for Seven Seven Six's high-follower channels to gain distribution.Every employee at Seven Seven Six receives carry to align incentives across the organization.Seven Seven Six focuses on pre-seed to Series A investments with a fund size around $400M.The firm has never lost a term sheet despite not always offering the highest valuation.Seven Seven Six is exploring "Agora IRL" - reimagined physical spaces for their community as an alternative to traditional co-working models.Alexis believes many "zombie VC funds" will disappear as the industry evolves in a higher interest rate environment.Seven Seven Six registered as an investment advisor for greater operational rigor.Traditional accelerator models may be less relevant today as founders have more resources available than in the past.Alexis questions the viability of extremely large early-stage funds in the current economic environment. -
This week on Turpentine VC, we’re re-releasing Erik Torenberg’s interview with Logan Bartlett, partner at Redpoint and host of The Logan Bartlett Show. They discuss Redpoint's approach to venture, patterns in the VC ecosystem, and the strategies of venture's most consequential firms.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️This Won't Last
Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.
Apple Podcasts: https://podcasts.apple.com/id1765665937
Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz
YouTube: https://www.youtube.com/@ThisWontLastpodcast
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
Redpoint: https://www.redpoint.com/
Check out the Logan Bartlett Show: @theloganbartlettshow
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X / TWITTER:
@loganbartlett
@Redpoint
@eriktorenberg
@TurpentineVC
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HIGHLIGHTS FROM THE EPISODE:
Technology disruption patterns repeat across different eras (railroads, telephones, internet, AI), making historical knowledge valuable for predicting future trends.Venture firms are fundamentally shaped by the era they emerged in, creating lasting structural impacts on how they operate.Management fees can become a "sticky drug" influencing fund size growth decisions, even when larger funds may not optimize returns.Failed venture capitalists are called millionaires while failed founders often go broke, illustrating the risk asymmetry in the ecosystem.Founders Fund succeeded by differentiating through philosophy rather than history with "if you can't compete on history, you can compete on philosophy."After the dot-com crash, RedPoint stayed out of the limelight for 15 years and focused on work, demonstrating how failure shapes firm culture.In venture competition, Logan believes RedPoint needs to "throw a perfect game" to win against established firms, showing the hierarchy's persistent advantage.Venture capital is significantly overfunded by 3-5x current levels, creating unsustainable market dynamics.Historically, only about 7 companies (not 50) create most of the equity value in each technology cycle, making winner identification crucial.The key question for AI is whether it will create new companies (like the internet era) or primarily benefit incumbents (like mobile). -
This week on Turpentine VC, we are releasing an episode from 1 to 100 hosted by Usman Hanif. Usman interviews Brendan Foody, founder and CEO of Marcor, an AI-powered recruitment platform that automates the process of hiring, vetting, and paying employees. Brendan discusses Mercor's rapid growth, technology behind their operations, and the company's focus on reducing hiring costs while improving efficiency for both employers and candidates.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️1 to 100 with Usman Hanif
Usman Hanif, the co-author of Why You Should Join, sits down with the founder of a notable startup to give you the inside story behind breakout, early stage companies potentially worth betting your career on.
Apple Podcasts: https://podcasts.apple.com/at/podcast/1-to-100-mercor/id1762756034?i=1000668280100
Spotify: https://open.spotify.com/show/70NOWtWDY995C8qDqojxGw?si=36dab0a7cdeb4f7f
YouTube: https://www.youtube.com/@oneto100podcast
🎙️Second Opinion
Join Christina Farr, Ash Zenooz and Luba Greenwood as they bring influential entrepreneurs, experts and investors into the ring for candid conversations at the frontlines of healthcare and digital health every week.
Spotify: https://open.spotify.com/show/0A8NwQE976s32zdBbZw6bv
Apple: https://podcasts.apple.com/us/podcast/second-opinion-with-christina-farr-ash-zenooz-md-luba/id1759267211
YouTube: https://www.youtube.com/@SecondOpinionwithChristinaFarr
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SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Mercor: https://mercor.com/
Why You Should Join: https://whyyoushouldjoin.substack.com/
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X / TWITTER:
@BrendanFoody
@mercor_ai
@usygoosy
@why2join
@turpentinemedia
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In this episode of Turpentine VC, we're sharing Erik Torenberg's 2023 interview with Sarah Tavel and Eric Vishria from Benchmark, exploring the firm's unique minimalistic approach, commitment to deep founder partnerships, and their deliberate avoidance of platform teams.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
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LINKS:
Benchmark: https://www.benchmark.com/
Dopamine Nation: https://www.amazon.com/Dopamine-Nation-Finding-Balance-Indulgence/dp/152474672X
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X / TWITTER:
@sarahtavel
@ericvishria
@eriktorenberg
@turpentinemedia
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HIGHLIGHTS FROM THE EPISODE:
Benchmark was founded in 1995 as an "internet era" firm, distinct from semiconductor era firms like Sequoia (1970s) and mobile era firms like Andreessen Horowitz (2009).The firm operates with six equal partners who split economics equally and make just 1-2 investments per year each.Benchmark intentionally maintains no platform team, believing direct GP involvement leads to better founder outcomes.The firm's Monday meetings have no agenda to encourage open-ended curiosity and foster creative thinking.During 2020-2021, Benchmark's investment pace was historically slower due to the challenges of building relationships over Zoom.The firm is currently on pace for making the most new investments in a year than they have in the past decade.Benchmark sees three distinct opportunities in AI: foundational models, vertical companies selling work, and incumbent product enhancement.The firm succeeded in crypto by focusing on company-building founders (Chainalysis, So Rare) rather than token-based speculation.Benchmark prioritizes "seeing the present clearly" over making big macro predictions about the future.The partners view their lack of a platform team as both a constraint on deal flow and a feature that ensures deep GP involvement.The firm deliberately maintains consistent fund sizes and focused strategy, unlike peers who have expanded into multiple products.Healthcare investments focus on peripheral areas (nurse marketplaces, medical devices) rather than core healthcare delivery.The partners still cold email and DM founders directly, with no junior staff intermediating relationships.The firm's equal partnership model intentionally doesn't scale beyond a small number of partners to maintain quality of collaboration.Benchmark measures success by investment multiples rather than total capital returned, focusing on being in "the few deals that matter." -
This week on Turpentine VC, we're re-releasing one of our most popular episode: Erik Torenberg’s interview with Somesh Dash. Somesh is a General Partner at IVP, shares insights on IVP's unique positioning in the venture capital ecosystem, the importance of team construction, the future of venture capital, and how IVP supports founders through scaling and strategic growth.
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📰Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
☁️Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
IVP: https://www.ivp.com/
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RECOMMENDED IN THIS EPISODE:
(Morgan Stanley) What to Expect When You're Expecting to Go Public: https://advisor.morganstanley.com/mark.wolkstein/documents/field/m/ma/mark-wolkstein/GoingPublicIPO_Wolkstein.pdf
Geoffrey Moore’s Crossing the Chasm: https://www.amazon.com/Crossing-Chasm-3rd-Disruptive-Mainstream/dp/0062292986
Turpentine VC Episodes mentioned:
With Alfred Lin: https://www.youtube.com/watch?v=jv4cwqO87eI
With Ben Horowitz: https://www.youtube.com/watch?v=PdpcF7LnL6g
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X / TWITTER:
@someshdash
@ivp
@eriktorenberg
@turpentinemedia
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HIGHLIGHTS FROM THE EPISODE:
IVP is a 45-year-old venture firm focused mainly on Series B and C investments, reviewing 2000 companies annually but investing in only about 15.The firm maintains a small, equal partnership model where each General Partner has equal voting power and say in decisions.IVP positions itself as "Switzerland" in the venture ecosystem, working collaboratively with all early-stage firms rather than competing with them.The firm typically builds relationships with founders/CEOs for around 20 months before making their first investment.IVP has kept its fund size consistent at $1.4-1.8 billion for the past decade, viewing fund size as an output rather than an input.Their Twitter investment in 2009 during the financial crisis returned their entire fund, demonstrating the power law in growth-stage investing.The firm's team construction has evolved from finance backgrounds (70s-80s) to engineering (80s-90s) to now valuing curiosity and passion for technology above specific backgrounds.IVP believes venture capital is following private equity's evolution path, about 5-10 years behind.The firm predicts AI will create more efficiency in venture capital's core business of investing and deal sourcing.Despite the current market conditions, IVP believes the IPO window remains open for the best companies, particularly in sectors like security.The firm has recently expanded to Europe with a London office, staffed primarily with transplants from California.IVP maintains its focus on helping companies scale rather than expanding into new business lines, guided by their founder's philosophy of "disagreeing without being disagreeable." -
Kareem Zaki shares the founding and development of Thrive Capital, emphasizing their strategy of opportunism combined with a focus on category-defining companies, their unique approach to talent cultivation and company-building in various sectors, especially healthcare, and their intentional media minimalism.
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📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️This Won't Last
Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.
Apple Podcasts: https://podcasts.apple.com/id1765665937
Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz
YouTube: https://www.youtube.com/@ThisWontLastpodcast
—
SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
Thrive Capital: https://thrivecap.com/
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X / TWITTER:
@kareemszaki
@ThriveCapital
@eriktorenberg
@turpentinemedia
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HIGHLIGHTS FROM THE EPISODE:
Thrive started in 2010-2011 with the insight that venture capital would evolve from a niche asset class into a major economic force.Thrive blends East Coast quantitative thinking with West Coast product vision.The firm concentrates investments in fewer companies but with higher conviction rather than spreading capital across many investments.They take a long-term view on investments, often continuing to invest in companies even post-IPO.In healthcare investing, Thrive focuses on building within existing systems rather than trying to work around them.The firm has co-founded about a dozen companies, focusing only on potential $10B+ market opportunities.Thrive deliberately hires young talent (0-4 years experience) and develops them internally rather than poaching established investors.The firm maintains a low profile with no website and minimal social media presence.They aim to keep their builder mentality and avoid becoming too institutionalized as they grow.Thrive views macro conditions as important for execution but not for changing their long-term investment thesis.The firm approaches talent development by seeking independent thinkers with "maverick" mindsets who can challenge conventional thinking.Rather than having a rigid selling strategy, they evaluate each company individually based on the specific situation.They credit their success partly to maintaining the same culture and values from their early days through their growth.Thrive sees their role as supporting founders while letting them be "the stars of the movie." -
Greg Castle, founder of Anorak Ventures, discusses the evolution and future of spatial computing, particularly in AR, VR, and technology's impact on human interaction and learning. This conversation took place in February 2023.
—
📰Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
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RECOMMENDED PODCAST:
🎙️Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhov kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
—
SPONSORS:
☁️Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
Investing in AR/VR with Greg Castle (first episode with Greg): https://www.youtube.com/watch?v=GjjWeaKA2Jg
Anorak Ventures: https://www.anorak.vc/
—
X / TWITTER:
@gpcastle12
@eriktorenberg
@turpentinemedia
—
HIGHLIGHTS FROM THE EPISODE:
Spatial computing represents computing in the third dimension, evolving from manual inputs to capturing and recreating real-world environments.AR is technically more challenging than VR because it must understand and integrate with the environment rather than simply replace it.Meta (Facebook) is currently the main player investing heavily in VR/AR, while other tech giants like Apple, Microsoft, and Google are taking more measured approaches.Training and education are viewed as the most promising VR applications due to improved retention through 3D learning experiences.The concept of a single unified metaverse faces significant challenges due to existing business models and the siloed nature of current platforms.Digital replicas of physical objects represent one of the few remaining "white spaces" for startup opportunities in the spatial computing market.Qualcomm is emerging as a significant player through their development of XR-specific chips and industry consortium building.Gaming has replaced music as the primary cultural touchstone for younger generations, indicating a broader shift toward digital experiences.The ultimate vision for spatial computing is to transform education and enable more natural human-technology interactions. -
Hemant Taneja, CEO of General Catalyst discusses the firm's evolution from an artisanal business to an enduring venture platform, focusing on operational rigor, fund size, talent strategy, and investments in companies like Stripe and Snap, while emphasizing the importance of responsible innovation and long-term industry transformations.
—
📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
General Catalyst: https://www.generalcatalyst.com/
—
X / TWITTER:
@htaneja
@eriktorenberg
@generalcatalyst
@TurpentineVC
—
HIGHLIGHTS FROM THE EPISODE:
Hemant Taneja became CEO of General Catalyst through a deliberate five-year succession plan that began when Ken Chenault joined as chairman to mentor him and help transform GC into an enduring business rather than just a traditional venture partnership.General Catalyst aims to differentiate itself by operating with the same operational rigor as successful tech companies, moving away from the traditional "artisanal" venture capital model where partners make decisions like oracles around a table.The firm developed its mission and values in 2018, focusing on "investing in positive, powerful change that endures" and positioning itself as a platform for inclusive capitalism.GC focuses on four main areas: global resilience (including climate and defense), AI transformation, health assurance, and financial inclusion through fintech and crypto technologies.Unlike some competitors, GC intentionally keeps fund sizes smaller because Taneja believes you can't scale venture capital funds to be very large while maintaining performance.The firm maintains a unique culture that preserves the magic of partnership for investment decisions while running with corporate rigor in operations, with Taneja serving as both CEO for business operations and managing director for investments.GC's healthcare strategy focuses on radical collaboration with health systems to make them better businesses, aiming to create a trillion-dollar ecosystem rather than a single trillion-dollar company.The firm's "creation" (incubation) strategy has evolved from being serendipitous to becoming more structured, aiming to launch 6-8 companies per year that require interdisciplinary teams and significant capital.GC introduced a customer value fund to provide non-dilutive financing for subscription-oriented businesses' customer acquisition costs, offering an alternative to equity funding.Taneja believes that for new venture firms starting today, having a specific point of view is crucial for rising above the noise in an overcapitalized industry, as the traditional generalist approach is no longer sufficient.The firm emphasizes "radical collaboration" over disruption, believing that working with existing institutions and understanding their legacy is key to creating lasting change in complex industries.GC's talent strategy focuses on bringing in diverse thinkers who share the firm's values and can build their own investment platforms within the larger organization. -
Today on Turpentine VC, we’re releasing one of our most popular episodes: Erik’s interview with Aydin Senkut, founder and managing partner of Felicis Ventures. Aydin discusses the evolution and distinct strategies of Felicis Ventures, their focus on mental health, and insights on successful generalist investing in venture capital.
—
📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️This Won't Last
Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.
Apple Podcasts: https://podcasts.apple.com/id1765665937
Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz
YouTube: https://www.youtube.com/@ThisWontLastpodcast
—
SPONSORS:
☁️Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
—
LINKS:
Felicis Ventures: https://www.felicis.com/
—
X / TWITTER:
@asenkut
@eriktorenberg
—
HIGHLIGHTS FROM THE EPISODE:
Aydin Senkut started Felicis Ventures as a solo practitioner during the super angel era, proving an outsider could succeed in venture capital.The firm evolved through its middle stage by raising institutional capital and building its reputation.In its current stage, Felicis has established a successful track record and optimizes for ownership.Felicis pioneered investing internationally without opening offices abroad.The firm operates as generalists across multiple stages and sectors rather than specializing.They aim to have multiple successful investments rather than relying on one or two big hits.Each Felicis fund maintains 40-50 companies across uncorrelated sectors and geographies.The firm uses a "prepared mind" approach, thoroughly researching markets before meeting companies.Investment decisions are made unanimously as a team while maintaining quick decision-making capabilities.When hiring, Felicis looks for smart generalists with strong motivation and intuition.They particularly value people who have been underestimated and have a "chip on their shoulder."The firm provides attractive carry to all team members to encourage an ownership mentality.Felicis was the first VC firm to prioritize founders' mental health support.Through founder surveys, they discovered that mental health support was a crucial need.Trust emerged as the number one factor founders consider when choosing investors.The firm maintains a single fund structure rather than creating multiple specialized funds.Felicis focuses primarily on writing first checks as their core strength.In AI, they invest across six different sub-areas with a systematic approach.They largely avoided crypto investments due to uncertainty about value creation.Looking forward, Felicis believes early-stage investing won't be automated or replaced by AI.The firm emphasizes continuous learning and rapid adaptation as their key to future success.Instead of growing significantly larger, they plan to maintain their current fund size. -
This episode of Turpentine VC was recorded in front of a live audience in San Francisco in October 2018.Keith Rabois discusses his frameworks for identifying talent, sharing anecdotes about notable operators and companies like PayPal, LinkedIn, and Square. He emphasizes the importance of talent assessment, strategic thinking, and offers career advice while reflecting on his own experiences and observations.
—
📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
🎙️This Won't Last
Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.
Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937
Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz
YouTube: https://www.youtube.com/@ThisWontLastpodcast
—
SPONSOR:
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
—
X / TWITTER:
@rabois
@eriktorenberg
—
HIGHLIGHTS FROM THE EPISODE:
"You don't want to be the best at what you do. You want to be the only one who does what you do." This was a key lesson Keith learned from a Pat Riley book.Great talent can be found in unexpected places, as demonstrated by Keith's hiring of successful executives like David Han, Jared Fleisler, and Brian Gastronomy who came from non-elite schools without technical backgrounds.You should only start a company if you have a specific idea you're deeply passionate about - Keith doesn't believe in starting companies just for the sake of being a founder.Working at a high-growth company for two years is valuable because the constant flow of problems creates unique learning opportunities, but you hit diminishing returns after about two years.The identification of talent often comes from seeing unique "sparks" - like when Taylor Francis solved the complex smoothie delivery problem at Square in an innovative way.When evaluating people, Keith tests them by continuously expanding their scope of responsibilities until they show signs of struggling.Strategic thinking means understanding how different parts of the business connect to each other - like understanding how turning different "knobs" affects the entire system.The best market opportunities exist in industries with low NPS scores that are highly fragmented and can be improved through vertical integration and simplification.Good judgment means understanding your limitations and knowing when to ask for help before getting in too deep.Getting adequate sleep (8 hours) is crucial for maintaining high performance and making good decisions - Keith believes most human problems stem from lack of sleep.A venture capitalist can effectively handle about 8-10 meetings per day before their energy and creativity begin to decline.Reading should combine both professional necessity and serendipitous discovery, with Keith still valuing physical bookstores for finding unexpected insights. -
This week on Turpentine VC, Andy Price, a veteran executive recruiter and venture capitalist, joins Nolan Church and Kelli Dragovich from HR Heretics, a Turpentine podcast, for a deep dive into the crucial aspects of hiring, retaining, and developing top talent. Andy has built leadership teams for renowned companies like Snowflake and DocuSign. Check out HR Heretics for more conversations like this one (links below)
—
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at carta.com/investors.
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
🤲🏼 GiveWell spends 50,000 hours every year doing deep-dives into different charitable programs to try to find the ways to do the most good for your dollar. GiveWell has now spent over 17 years researching charitable organizations and only directs funding to a few of the HIGHEST-IMPACT opportunities they’ve found. Visit https://www.givewell.org to find out more or make a donation. (Select PODCAST and enter Econ 102 at checkout to support our show.)
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
RECOMMENDED PODCAST:
Listen and subscribe to HR Heretics:
Apple: https://podcasts.apple.com/us/podcast/hr-heretics-how-cpos-chros-founders-and-boards-build/id1712407491Spotify: https://open.spotify.com/show/1WML9AfadzaH9WCR4HHqbZSubstack: https://hrheretics.substack.com/—
LINKS:
Artisanal Ventures: https://artisanalv.com/
—
FOLLOW:
https://www.linkedin.com/in/andyprice1/
https://www.linkedin.com/in/nolan-church/
https://www.linkedin.com/in/kellidragovich/
—
HIGHLIGHTS FROM THE EPISODE:
Even at top companies like DoorDash, executive hiring only succeeds two-thirds of the time, while most firms see one-third success rates.To mitigate hiring failures, recruiters must deeply understand a company's problems and weaknesses, not just focus on their strengths.Back-channel references are crucial but must be handled carefully, with recruiters making vague inquiries without revealing specific roles or companies.The ideal number of references is 5-7 meaningful ones, focusing on depth of conversation rather than quantity of references.Founders often get attached to "shiny new" executive candidates and forget about the people who helped build the company.When layering an existing executive, the person needs to be involved in the interview process but with clear expectations about their role.The best companies like Snowflake and ServiceNow succeed through seamless executive transitions and continuity.To help up-and-coming executives scale, companies need to invest in advisory networks and strong board members who can provide mentorship.The best executives rarely actively job hunt - instead, they study industry trends in their spare time and maintain relationships with select recruiters.Multiple one-year executive tenures are a red flag; ideal careers show 3-6 year commitments at successful companies. -
Today we're sharing a conversation between Martin Casado, general partner at Andreessen Horowitz and Nathan Labenz, AI scout, which originally aired on The Cognitive Revolution podcast from Turpentine. Their discussion explores AI systems complexity and debates whether AI development will lead to AGI. The conversation covers model scaling, biological AI, driverless cars, and AI safety concerns.
—
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at carta.com/investors.
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
🤲🏼 GiveWell spends 50,000 hours every year doing deep-dives into different charitable programs to try to find the ways to do the most good for your dollar. GiveWell has now spent over 17 years researching charitable organizations and only directs funding to a few of the HIGHEST-IMPACT opportunities they’ve found. Visit https://www.givewell.org to find out more or make a donation. (Select PODCAST and enter Econ 102 at checkout to support our show.)
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
RECOMMENDED PODCAST:
Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
--
🎙️ The Cognitive Revolution
Apple: https://podcasts.apple.com/us/podcast/id1669813431
Spotify: https://open.spotify.com/show/6yHyok3M3BjqzR0VB5MSyk
—
FOLLOW:
@martin_casado
@labenz
@eriktorenberg
@TurpentineVC
—
HIGHLIGHTS FROM THE EPISODE:
Martin Casado argues AI has shown consistent incremental progress over 80 years rather than dramatic leaps, with apparent breakthroughs often being advances in specific domains rather than general intelligence.The self-driving car industry demonstrates how early promising results don't necessarily translate to general solutions, with unit economics still being 3x worse than human drivers after 20 years and ~$100B investment.The universe operates on heavy-tailed distributions where most new instances are exceptions, making truly general systems extremely difficult to create.Language Models primarily perform kernel smoothing over positional embeddings to predict average human responses, excelling at routine tasks but struggling with unique cases.Advances in biological applications of AI represent extensions of simulation capabilities in specific domains rather than steps toward general intelligence.On regulation, Martin advocates treating AI like other software - regulating applications rather than the underlying technology to avoid hampering innovation.The AI industry exhibits a "perverse economy of scale" where market leaders must spend increasingly more to maintain their advantage while followers can use their outputs to catch up.Looking forward, Martin expects continued incremental progress in specific domains rather than sudden AGI emergence, emphasizing practical applications over theoretical risks. -
This ‘lost episode’ of Turpentine VC with investor Elad Gil was recorded at a unique moment in time (September 2022) — before ChatGPT, Claude and Perplexity launched. Drawing from his experiences at Google, Elad discusses early ML systems, the open source debate, NVIDIA, labor markets, and AI alignment and shares some behind the scenes anecdotes.
—
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCAST:
Check out Modern Relationships, where Erik Torenberg interviews tech power couples and leading thinkers to explore how ambitious people actually make partnerships work. Founders Fund's Delian Asparouhov and researcher Nadia Asparouhova kick off the series with an unfiltered conversation about their relationship evolution.
Apple: https://podcasts.apple.com/us/podcast/id1786227593
Spotify: https://open.spotify.com/show/5hJzs0gDg6lRT6r10mdpVg
YouTube: https://www.youtube.com/@ModernRelationshipsPod
--
SPONSORS:
📑Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at carta.com/investors.
🤲🏼GiveWell spends 50,000 hours every year doing deep-dives into different charitable programs to try to find the ways to do the most good for your dollar. GiveWell has now spent over 17 years researching charitable organizations and only directs funding to a few of the HIGHEST-IMPACT opportunities they’ve found. Visit https://www.givewell.org to find out more or make a donation. (Select PODCAST and enter Econ 102 at checkout to support our show.)
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
Attention Is All You Need: https://proceedings.neurips.cc/paper_files/paper/2017/file/3f5ee243547dee91fbd053c1c4a845aa-Paper.pdf
AI Revolution - Transformers and Large Language Models (LLMs): https://blog.eladgil.com/p/ai-revolution-transformers-and-large
Elad’s website: https://eladgil.com/
High Growth Handbook by Elad Gil: https://growth.eladgil.com/ | https://www.amazon.com/High-Growth-Handbook-Elad-Gil/dp/1732265100
—
FOLLOW:
@eladgil
@eriktorenberg
@TurpentineVC
—
HIGHLIGHTS FROM THE EPISODE:
This episode was recorded in 2022, before the launch of ChatGPT, Claude, and other major AI applications that are now common. This interview captured a moment in time when industry leaders were anticipating major breakthroughs in AI.Elad explained how AI's definition has evolved from basic automation in the 1980s to sophisticated applications, with Google emerging as the first true "AI-first" company at scale through its search and ad targeting systems.The 2017 "Attention is All You Need" paper proved pivotal, with six of its eight authors going on to start companies, creating what Gil compared to a "Xerox PARC moment" where Google developed breakthrough technology but others, particularly OpenAI, commercialized it.Elad outlined three main categories of emerging AI companies: platforms and infrastructure providers like OpenAI, AI-first standalone companies, and tech-enabled incumbents adding AI capabilities.Initial predictions about AI's impact on labor markets proved incorrect, with AI currently affecting white-collar, repetitive tasks more than blue-collar jobs, and creative and caring fields experiencing more disruption than anticipated.The semiconductor industry lacks a massive AI-specific chip company, with NVIDIA's continued success attributed to strong founder leadership, superior software tooling, and advanced interconnect capabilities.Elad emphasized the importance of open-source models and predicted the AI platform market would likely consolidate into an oligopoly similar to cloud infrastructure, with a few dominant players rather than a single winner. -
This week on Turpentine VC, we feature a compilation episode of our popular interviews with Tom Tunguz, General Partner at Theory Ventures who just announced a $450M second fund less than two years after launching. Over the course of the episode Tomasz explains their concentrated portfolio approach, and expands on their key theses in AI, decentralized infrastructure, and the future for data businesses (like Databricks and Snowflake).
—
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
SPONSORS:
📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at carta.com/investors.
🤲🏼 GiveWell spends 50,000 hours every year doing deep-dives into different charitable programs to try to find the ways to do the most good for your dollar. GiveWell has now spent over 17 years researching charitable organizations and only directs funding to a few of the HIGHEST-IMPACT opportunities they’ve found. Visit https://www.givewell.org to find out more or make a donation. (Select PODCAST and enter Econ 102 at checkout to support our show.)
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
Tom’s Website: https://tomtunguz.com/
Theory Ventures: https://theory.ventures/
—
FOLLOW:
@ttunguz
@Theoryvc
@eriktorenberg
@TurpentineVC
—
HIGHLIGHTS FROM THE EPISODE:
Theory Ventures has launched a $450 million second fund and focuses on making concentrated investments after extensive research in specific sectors. The venture capital industry has grown from $8 billion to $300 billion over the last 12 years but is expected to settle back to around $150-180 billion.Blockchain technology is viewed as a contrarian investment in 2024, but there's potential for practical enterprise applications beyond cryptocurrency.Databricks has seen massive growth, with its data warehousing revenue increasing from $100 million to $400 million in just one year.The modern data infrastructure stack includes companies like Fivetran for moving data and DBT for transforming data once it's in a database. The most valuable part of the data infrastructure business is compute workload processing, not data storage.Tom’s take on NVIDIA's future value -
This week on Turpentine VC, we’re releasing Sourcery’s Molly O'Shea’s interview with Alex Kolicich, founding partner at 8VC to discuss Alex's H1 2024 report on the venture landscape, covering AI investment challenges, the resurgence of defense technology, and broader economic trends impacting markets. For full show notes, visit: https://highlightai.com/share/3f9d98f9-c3d6-42c9-b2cc-e6ba32c668e4
—
📰 Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess
🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse
—
RECOMMENDED PODCASTS:
🎙️ Sourcery
Interviews with the top VCs & Founders leading the next tech innovation cycle.
Spotify: https://open.spotify.com/show/2Ni3Tese9CtZa3oxpCjgTg?si=9b01b3dbcca242f0
Apple: https://podcasts.apple.com/us/podcast/sourcery/id1738124704
Youtube: https://www.youtube.com/@SourceryVC
—
SPONSORS:
📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at carta.com/investors.
☁️ Oracle Cloud Infrastructure (OCI) is a single platform for your infrastructure, database, application development, and AI needs. OCI has four to eight times the bandwidth of other clouds and offers one consistent price. Oracle is offering to cut your cloud bill in half. See if your company qualifies at oracle.com/turpentine
💥 Head to Squad to access global engineering without the headache and at a fraction of the cost: head to https://choosesquad.com/ and mention “Turpentine” to skip the waitlist.
—
LINKS:
8vc: https://www.8vc.com/
Alex’s Substack: https://www.alexkolicich.com/
Alex’s first appearance on Sourcery: https://www.sourcery.vc/p/exclusive-alex-kolicich-8vc-exodus
Alex’s latest H1 2024 report: https://www.sourcery.vc/p/alex-kolicich-8vc-ai-and-defense
—
FOLLOW:
@AlexKolicich
@MollySOShea
@eriktorenberg
@TurpentineVC
—
TIMESTAMPS:
(00:00) Intro
(00:59) Meet Alex Kolicich
(01:50) Diving into the H1 2024 venture landscape report
(02:03) The AI investment paradox
(03:31) Challenges and opportunities in AI
(07:25) Public vs. private market dynamics
(08:24) The role of AI in software and market valuations
(12:32) Fundraising strategies in the AI era
(13:01) Sponsors: Carta | Oracle
(19:12) AI capabilities and the future of technology
(25:58) The Gartner hype cycle and AI's future
(28:08) AI market trends and valuations
(29:00) The exit environment and acquihires
(29:28) Challenges in IPOs and M&A
(32:03) Opportunities in secondaries
(32:52) Sponsor: Squad
(33:58) Defense wave: A new frontier
(43:52) Changes in defense procurement
(49:31) Advice for defense startups
(52:09) Reflections on AI and market surprises
(55:32) Wrap
- Show more
