The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Figma's IPO: The Full Breakdown | Index Returns $3.5BN on Two Deals | Why Melio's $2.5BN Acquisition is "Discouraging" | Asana's New CEO and the Great Founder Exodus | Oracle's $30BN AI Deal and What it Means for Incumbents
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Jul 3, 2025 Dive into the fascinating world of startup valuations with insights on Figma's impressive IPO and Adobe's missed acquisition opportunity. Explore the reasons behind Melio’s surprising $2.5 billion exit, despite rapid growth. Discuss the rampant surge in AI investments and their potential implications for the market. Analyze the challenges of tech acquisition amidst a wave of CEO exits. Unpack the dynamics of venture capital, especially the balance between personal relationships and financial decisions in this shifting landscape.
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Figma’s Strong IPO Metrics
- Figma's IPO shows profitability with 40% free cash margins and 46% growth, exemplifying a "rule of 80" model.
- This reflects strong financial health and emphasizes quality over discount in valuations.
Challenges of Reserve Allocation
- Reserving capital in venture is complex, balancing investments in winners and maintaining reserves for weaker deals.
- Junior partners often want to keep companies alive longer due to incentives divergent from senior leadership.
Be Strategic With Reserve Investments
- Avoid making reserve investments in struggling companies unless they have a clear, executable plan to become cashflow positive.
- Limit additional money to small, finite amounts to support turnaround efforts without wasting time or resources.