Invest Like the Best with Patrick O'Shaughnessy
00:43:23 · Ramtin Naimi
[00:43:23] S1: Terms of enthusiasm around the opportunity, I'd say it's a 10 relative to my time in venture, which is coming up on ten years now. And you see it with this subset of the market. It's not that people are funding all the best companies with huge amounts of capital. People wanna fund so many companies. It's the largest number of companies we found that we want to be investors in relative to any other vintage. In terms of opportunity set, it's a 10. In terms of frothiness, I would call 2021 a 10, and I would probably call this market a 6.5 to seven. Because while the frothiness is there, there is also a lot to justify the frothiness, which I think is really interesting because the rate at which these companies are growing and getting adoption and product market fit is kind of unprecedented, and that would warrant frothiness. I think if you leave out the obvious, the companies that are the IPO candidates near term and you kind of look at what are the next generation of companies that we're probably looking at five years from now, those are the companies you definitely want to have exposure to in this vintage. I would put, like, New Limit and Chai Discovery really high up on there, Isomorphic really high up on there in terms of IO and in terms of can you build AI native next gen Genentech. And the market opportunity for those companies is 500,000,000,000 to trillion dollar outcomes. It's even bigger if they execute on their ambitions and they have the best teams, the best investors, the access to the capital they need to actually pull those things off. I think those companies are super interesting. I think the idea of owning your own data, owning your own knowledge intelligence is a really unique idea. And I think the company that probably pioneered that as the leader in the category is applied compute. So I think it'll be really interesting to watch that as they continue to execute. I think it'll be very interesting to see how the prediction markets play out in a few years. But currently, I mean, the rate at which those companies are growing is insane, and they're not even AI companies. They're just true consumer businesses. I think physical intelligence is super interesting. I think that could be a multi $100,000,000,000, trillion dollar company, exceptional team, a huge magnet for talent, huge ability to retain exceptional talent.
00:45:14 · Ramtin Naimi, Patrick O'Shaughnessy
I think those are kind of the things that I always look for is in the market that you have an adventure in Silicon Valley, there is no shortage of talent in Silicon Valley. But as a company, retaining the highest quality talent is probably the single hardest thing you have to do as a company building and venture because the best people you have at your company can get a job anywhere they want at a higher comp and equity package, and you're paying them at your company. So whenever I see companies that have a high density of that talent and ability to retain that talent, I just get extra bullish on those companies. [00:45:44] S0: Fun three questions to end with. It'll be fun to compare in future episodes. Ramtin, thanks so much for doing this. [00:45:49] S1: Of course, Ad[00:45:57] S0: transcripts. You can also subscribe to Colossus, our quarterly print, digital, and private audio publication featuring in-depth profiles of the founders, investors, and companies that we admire most. Learn more at colossus.com/ subscribe. Ad[00:46:11] S1: Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of PositiveSum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc.
00:46:54 · Patrick O'Shaughnessy
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