This Week in Startups

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

May 6, 2024

Jason Calacanis, a startup expert and founder of Launch Fund, teams up with Joshua Berkowitz, a partner at Berk Corp and co-founder of Dexa.ai, and Donald Stalter, a partner focusing on early-stage investments at Global Founders Capital. They dive into the recent $6B funding round for xAI, discussing how this impacts the competitive AI landscape. They also tackle emerging managers in venture capital and the changing dynamics post-SVB's portfolio situation. The conversation provides unique insights into the intersection of tech advancement and investment strategies.

01:05:38

Creator website

Episode guests

Joshua Berkowitz

Donald Stalter

Jason Calacanis

AI Summary

AI Chapters

Episode notes

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.

Intro

2min

Basketball Banter and Tech Talk

4min

Navigating the Competitive Landscape of AI and LLMs

3min

Navigating Competition in AI: Proprietary vs Open Source Strategies

5min

Navigating VC and Talent in AI Investments

6min

The Power of Diversification and Operational Efficiency in Venture Investing

2min

Navigating the LP Landscape

8min

Exploring Investment Dynamics and the Importance of Custom CRMs

2min

Return to Roots in Venture Capital

11min

10.

Venture Capital Dynamics and Innovations

14min

11.

Investment Insights and Innovative Startups

6min

12.

The Power of Connection in Silicon Valley

2min

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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

https://www.permitflow.com

https://slopepay.com

Follow Joshua:

X: https://twitter.com/berkowitz_josh