The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: a16z Raises $10BN in New Funds | Mercor Raises $350M at a $10BN Valuation | OpenAI Restructuring: Who Wins and Who Loses | Why IRR is a BS Metric and Three Ways to Win in VC Today
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Oct 30, 2025 
Rory O'Driscoll, a veteran VC specializing in SaaS, and Jason Lemkin, founder of SaaStr and growth-focused investor, dive into the dynamics of the current venture capital landscape. They dissect OpenAI's restructuring and who really wins from it. The duo also explores a16z's $10B fundraise and implications for scale in VC. They challenge the traditional IRR metric, proposing smarter strategies for VCs today while examining Mercor's impressive $350M raise amidst AI training needs. Amazon's recent struggles round out their insightful discussion.
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OpenAI Restructuring Unlocks Real Capital
- OpenAI completed a restructuring to allow real investment while keeping a charity and a capped-profit company model.
- This unlocks capital, potential IPO paths, and more predictable corporate operations.
Who Actually Won From The OpenAI Deal
- Microsoft invested $13bn and gained ~27% and valuable AI rights, making it a clear winner.
- The deal also created a well-capitalized charitable foundation with ~$135bn to pursue public-good initiatives.
The New Norm: Mega Funds Change VC
- Mega funds raising huge pooled capital is now a dominant venture modality and changes market dynamics for years.
- Large firms can behave like boutique investment banks or tilt returns by deploying option strategies.