All-In with Chamath, Jason, Sacks & Friedberg

E73: Late-stage VC markdowns and mistakes, market strategy, Ukraine/Russia update with Brad Gerstner

32 snips
Mar 26, 2022
Guest
Brad Gerstner
Brad Gerstner, CEO of Altimeter Capital, shares his insights on the turbulent landscape of late-stage venture capital. He discusses the recent markdowns of companies like Instacart and dissects the factors driving market adjustments. The conversation dives into the psychology of investors and founders, emphasizing the need for a market reset. Additionally, Gerstner weighs in on the complexities of the Ukraine-Russia conflict, exploring potential pathways to peace amidst growing geopolitical tensions. Let's just say, it's a high-stakes balancing act!
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INSIGHT

Market Normalization

  • Public SaaS and internet company multiples are normalizing after a period of inflated valuations.
  • This normalization is due to rising interest rates, fears of inflation, and the war in Ukraine.
INSIGHT

Late-Stage VC Mispricing

  • Late-stage venture capital valuations are mispriced and likely require significant corrections.
  • Instacart's 40% valuation cut exemplifies this, reflecting a broader trend in the delivery and SaaS sectors.
ADVICE

Down Round IPOs

  • Some companies will have to IPO at down rounds, meaning lower valuations than their last private rounds.
  • This poses a challenge for late-stage private investors expecting automatic gains.
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