20VC: The Daily Deal: Coreweave IPO | Scale Hits $25BN on $2BN EOY Revenue | Sequoia's 25x Return on Wiz | Tech Stocks Tank with Tariffs | Cursor: Defensible or Dangerous Example of Lost Moats in Tech
Apr 3, 2025
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In this engaging discussion, Bhavin Shah, who shared his insights on Moveworks’ acquisition by ServiceNow, and Andrew Feldman from Cerebras, dives into the recent Coreweave IPO. They explore the ripple effects of tariffs on tech stocks and the complexity of navigating regulation in the startup landscape. Shah emphasizes the ongoing AI craze while Feldman reveals the challenges and opportunities in the chip market. Their conversation sheds light on the dynamics of investment growth versus sustainability in the fast-paced tech world.
The podcast emphasizes the emerging 'golden age' for software driven by advancements in technology and increased spending on tech innovations.
Concerns about the durability of revenue among tech companies signal a recalibration in investor expectations, impacting valuations and M&A prospects.
AI's pivotal role in reshaping market strategies is crucial for startups aiming to establish competitive advantages and secure funding.
Deep dives
Overview of Fundraising Insights
The episode discusses the current landscape of fundraising, mergers, and acquisitions (M&A), highlighting the significant amount of capital being raised by tech startups. It emphasizes the fact that the trends in the industry reveal a strong interest from investors in companies that leverage innovative technologies, especially in AI. The hosts point out how the rise of platforms like Kajabi showcases the power of creator-driven commerce, with users maintaining complete earnings from their ventures. Moreover, the podcast touches upon the necessity of being strategic in connecting with potential investors to navigate the competitive environment effectively.
The Golden Age of Software
A key insight presented is the idea that we are entering a 'golden age' for software, driven by the evolution of technology and increased tech spending. The hosts reflect on previous years, noting that the substantial growth rates of B2B stocks were not sustainable long-term. However, they argue that the current environment is more conducive for the birth of many unicorns due to the shift in how software product adoption is occurring alongside advancements in AI technology. They anticipate that many new companies will emerge, despite potential stresses in the market.
Concerns about Revenue Durability
The podcast highlights concerns regarding the durability of revenue among tech companies, a topic that has gained traction in recent discussions among venture capitalists. It is mentioned that many companies, previously thought to be resilient, are now showing slower growth rates, prompting a shift in investor expectations. The hosts share anecdotes about unicorns experiencing stagnation in growth, which complicates their valuations and prospects for M&A. This development signals a possible recalibration within the venture ecosystem, requiring startups to be more adaptable and innovative moving forward.
Investor Sentiment and Tech IPO Predictions
Predictions about the future of IPOs in the tech industry were discussed, with commentary on how the fundraising environment's dynamics are influencing investor behavior. The hosts express uncertainty regarding the volume of upcoming IPOs, especially as companies adapt to shifting market conditions and investor sentiments post-2021. They speculate that the market could witness a wave of tech IPOs if companies can manage their valuations effectively while meeting growth expectations. Importantly, they underscore the need for a robust strategy to navigate these crowded market waters.
The Role of AI in Tech and M&A
AI's growing role in sweeping changes within tech industries and its implications for M&A were another focal point in the conversation. The hosts pointed to various companies that have successfully integrated AI to drive substantial growth, positioning them favorably for acquisition. Utilizing insights from companies like OpenAI and Cursor, they noted that enabling technologies are likely to reshape market strategies for both startups and established giants. This reflects how crucial AI is becoming not just for building products, but for establishing competitive advantages in fundraising and buyouts.
Navigating the New Investor Landscape
Navigating the altered landscape of investments requires startups to adopt new approaches to engaging potential investors, as emphasized during the discussion. The emphasis is placed on maintaining relationships with investors through consistent updates and communication. By doing so, startups can cultivate trust and ensure that when they seek funding, they already have interested parties ready to invest. Engaging with a focused strategy for outreach and relationship-building stands out as crucial in an environment where investors are seeking rapid growth potential from the companies they back.
Welcome to The Daily Deal — the new show with Harry Stebbings and Jason Lemkin, where we break down the biggest stories in tech, venture, and B2B. From market meltdowns to billion-dollar raises, wild valuations, and the drama behind the deals. We’re covering it all! Plus, we’ll be joined by some incredible guests to go deeper on the moves shaping the future of our industry.
Today we discuss:
Tech stocks were hammered in late trading today in response to the Trump administration's plans to levy tariffs of between 10% and 49% on imported goods, with Apple shares falling more than 6%.
Rippling Deal: Illegal or Hustle?
Emergence Raises $1B for B2B Investments
Cursor, Replit, Windsurf: Who Wins?
Lots of gen AI startups are crossing into the $100M ARR club. The latest entrant is talent marketplace Mercor, last valued at $2B. Is triple triple double double dead?
ScaleAI at $25B: Pricey or Potential?
Discussion with Bhavin Shah @ Moveworks:
ServiceNow Acquires Moveworks for $2.5B: AI Craze Continues
Sequoia Makes 25x on Wiz: Is M&A Open Again?
USD Stablecoin issuer Circle has filed to go public. The company, which has raised $1.2 billion in VC money, reported $1.7 billion in 2024 revenue, with $155.7 million in net income.
Oracle Cloud Revenue Up 23%: Old Guard Wins in AI?
Salesforce Customers Love AgentForce, But Will They Pay?
Dustin Moskovitz Retires from Asana: Is SaaS Too Tough?
Discussion with Andrew Feldman @ Cerebras:
Coreweave’s Redemption Provision: A Time Bomb for Coatue?
Can OpenAI’s $12B Deal Save Coreweave from $5B Loss?
OpenAI Won’t Profit Until $127B in Annual Revenue
A lot of young founders raising big in chips; bullish or bullshit?
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