The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Daniel Gross and Nat Friedman: Acquired by Meta | OpenAI’s SBC Bombshell: More Stock Comp Than Revenue | Privat Equity is Back: Olo Bought for $2BN | Microsoft Lays Off 9,000 People: Is This Just the Start | Will Sequoia Part with Shaun Maguire
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Jul 10, 2025 Venture capitalists explore the talent crisis in AI and discuss why two industry legends joined Meta for a substantial opportunity. They delve into the surprising dynamics of stock-based compensation at OpenAI, where it surpasses revenues. The talk shifts to Microsoft’s layoffs, suggesting a transformation in workforce needs towards more specialized skill sets. Additionally, there’s speculation around Sequoia Capital’s leadership and potential recession predictions, underscoring the unpredictable nature of market trends.
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Legendary VCs Join Meta
- Daniel Gross and Nat Friedman left a $1.1 billion venture fund for Meta despite 4X returns on deployed capital.
- Their move reflects a historic AI talent grab and shift in career priorities in tech.
LPs Get Early Liquidity
- Meta's offer included liquidity to LPs, returning about 2X on invested capital on half the fund deployed.
- This liquidity eased LP concerns despite losing the managers' stewardship for future investments.
Pay High Equity for AI Talent
- Hiring top AI talent requires significant equity, often half a percent or more per engineer.
- Startups must embrace this cost or risk being unable to compete in AI development.