This Week in Startups

LIQUIDITY: Major challenger to OpenAI, xAI, closing on $6B in funding | E1944

May 6, 2024

01:05:38

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Elon Musk raises $6 billion for his new AI startup, Sequoia leads a $6 billion round for AI, insights on emerging managers in the venture capital landscape, Neuralink's challenges, and the dynamics of open source vs. proprietary data in AI industry.

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Podcast summary created with Snipd AI

Quick takeaways

LPs prefer investing in diverse emerging managers for unique opportunities and higher returns.

Shift towards resilient and scrappy emerging managers driving innovation in venture capital.

Success in venture capital lies in a process-oriented approach and aligning personal financial goals with investments.

Deep dives

Investment Strategies and Fund Size

Some LPs prefer investing in a diverse portfolio of emerging managers rather than large multi-stage firms. They believe that focusing on emerging funds can lead to unique opportunities and higher returns. Keeping the fund size manageable, between $10-50 million, allows for more focused investments and a closer involvement in the startup ecosystem. This strategy also emphasizes on ensuring the LPs' passion and commitment to the investments they make, rather than simply following traditional growth patterns.

Maximizing Business Support

01:54

Introduction

2min

Amicable Banter Turns to a Sports Bet

2min

The AI Competition and Strategic Landscape: Insights on Funding and Differentiation

4min

Exploring Elon Musk's Ventures and the Dynamics of Open Source vs. Proprietary Data in AI Industry

5min

Investing in Growth Equity and Analyzing Elon Musk's Approach

6min

Insights on Venture Capital Portfolio Construction and Efficiency Optimization

2min

Navigating the Changing Landscape of Fund Management

8min

Investing Strategies, Fund Size, and Investor Journey Insights

5min

Inside the Mind of a Venture Capitalist

23min

10.

Insights on Poker, AI Startups, and Innovative Businesses at a Liquidity Summit Event

5min

11.

The Power of Connection and Surrounding Yourself with Great People

2min

This Week in Startups is brought to you by…

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Todays show:

David Weisburd hosts Joshua Berkowitz, Donald Stalter and Jason Calacanis to discuss xAI closed on $6B (5:02), PitchBook's report on Emerging Managers (17:32), SVB’s venture portfolio situation (44:18), and much more!

Liquidity Timestamps:

(0:00) David Weisburd intros Joshua Berkowitz, Donald Stalter and Jason Calacanis

(5:02) xAI raises $6B in funding

(9:49) OpenPhone - Get 20% off your first six months at https://www.openphone.com/twist⁠

(13:16) Sequoia leading a $6B round for AI

(17:32) PitchBook's report on Emerging Managers

(20:38) NetSuite - By popular demand, NetSuite has extended its one-of-a-kind flexible financing program for a few more weeks! Head to https://www.netsuite.com/liquidity

(28:18) The impact of the surge of venture capital in 2021 and its implications for the ecosystem

(30:41) Attio - Head to https://attio.com/twist⁠ to get 15% off for your first year.

(34:42) The impact of a positive investor attitude on founders

(44:18) The Silicon Valley Bank (SVB) venture portfolio situation

(49:33) Lightning round of last 3 investments

Thank you to our partners:

(9:49) OpenPhone - Get 20% off your first six months at https://www.openphone.com/twist⁠

(20:38) NetSuite - By popular demand, NetSuite has extended its one-of-a-kind flexible financing program for a few more weeks! Head to https://www.netsuite.com/liquidity

(30:41) Attio - Head to https://attio.com/twist⁠ to get 15% off for your first year.

Mentioned on show:

https://www.axios.com/2024/05/03/svb-venture-capital-arm

Follow Donald:

X: https://twitter.com/donnystalter

LinkedIn: https://www.linkedin.com/in/donaldstalter

Check out:

https://www.fieldguide.io

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https://slopepay.com

Follow Joshua:

X: https://twitter.com/berkowitz_josh