The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified 294. How to Value AI, Data Network Effects vs. Data Learning Effects, and Evolution of the VC Asset Class (Ash Fontana)
Aug 9, 2021
54:40
Ash Fontana of Zetta Venture Partners joins Nick to discuss How to Value AI, Data Network Effects vs. Data Learning Effects, and Evolution of the VC Asset Class. In this episode we cover:
- What was the inspiration for the new book?
- What's the difference between a Data Network Effect and a DLE (data learning effect)?
- How do you advise those that are building tech where AI will be a valuable piece in the distant future but doesn't really play a role until the growth stage or beyond?
- Tell us about the Lean AI Method, described in the book, and how companies can use it to start implementing AI. How do you feel about companies using "off-the-shelf" AI, like TensorFlow?
- Why is now the right time for AI to pervade throughout tech and industry?
- How do you value AI and determine what's real?
- How does one put a valuation multiple on fairly nascent category where the value can be exponential and the moat can be unbreachable but there's not a whole lot of precedent?
- What are the key data categories or types that are most valuable for startups to be capturing and analyzing from day one?
- How do you find the right types of people with the right capability and mindset to join a startup if they have no formal training or experience directly w/ AI?
- How do you see the asset class evolving?
- Do you think the rolling fund product can make the leap to institutional investors, or will it continue to serve smaller, retail investors?
- What's your opinion on insider rounds?
- Thoughts on Tiger Global?
- Does China surpass the U.S. in tech innovation (and AI) over the next decade? Why or Why Not?
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The host of The Full Ratchet is Nick Moran, General Partner of New Stack Ventures, a venture capital firm committed to investing in the exceptions. To learn more about New Stack Ventures by visiting our Website and LinkedIn and be sure to follow us on Twitter. Are you a founder looking for your next investor? Visit our free tool VC-Rank and tell us about your business. We’ll send a list of possible investors right to your email’s InBox!