The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why VC Today is Worse Than 2021 | Why Vertical SaaS is a Bad Investment Today | Why We Are Deluding Ourselves on Growth Expectations | Revolut Raises $3BN at a $75BN Valuation | Benchmark Adds Their Newest General Partner
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Oct 23, 2025 The hosts dive into the challenges facing venture capital today, revealing why the current landscape mirrors the 2021 hype. They discuss Revolut's staggering $3BN raise at a $75BN valuation and question the sustainability of such forecasts. Insights on the perils of investing in vertical SaaS are shared, emphasizing that over-romanticizing these opportunities may lead to disappointment. The conversation also covers the impact of AI on various sectors and whether rising capital intensity and infrastructure needs could lead to a future compute glut.
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Use Carry And Fund Access To Attract Talent
- When hiring GP talent from peer firms, ensure carry and fund access are competitive to attract top candidates.
- Rory highlights Benchmark's strategy of hiring promising partners into rich carry pools as effective.
Early Adoption Can Mask Long-Term Demand
- Early exuberant adoption can mask long-term adoption dynamics and lead to overfunding of similar small niches.
- Jason and Rory caution investors to distinguish temporary frenzy from durable demand.
Price AI Tools For Deployment Costs, Not Just Licenses
- Account for onboarding and change-management costs when selling AI tools; buyers won't re-buy annually.
- Price and plan growth expecting an initial large rollout followed by slower refresh cycles.