"Turpentine VC" | Venture Capital and Investing

E67: Defense Tech’s Rise with 8VC’s Alex Kolicich

25 snips
Dec 3, 2024
Guest
Molly O'Shea
Guest
Alex Kolicich
Molly O'Shea chats with Alex Kolicich, founding partner at 8VC, known for his investments in Palantir and SpaceX. They dive into the rising trends in defense technology spurred by geopolitical factors. Alex discusses the evolving landscape for AI investments and the unique challenges of capturing value. He also highlights the shift towards innovative defense startups over traditional contractors, driven by new government practices and a favorable fundraising environment amid economic uncertainties.
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INSIGHT

AI Investment Paradox

  • Technological advancements disrupt established value structures, creating winners and losers.
  • Investors face uncertainty in identifying future winners, while entrepreneurs must choose the right layer of the value stack.
ADVICE

Fundraising in the AI Era

  • If your startup is AI-related, raise capital aggressively every 3-4 months while multiples are high.
  • Non-AI startups face a more normalized fundraising environment, similar to 2016.
INSIGHT

Unsustainable Multiples

  • Current AI multiples are unsustainable due to an oversupply of capital from mega-funds.
  • These high valuations incentivize larger checks, benefiting funds but creating market distortion.
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