Tomasz Tunguz, Founder and General Partner at Theory Ventures, dives into the future landscape of AI and its impact on startups versus established companies. He shares his journey from Redpoint to founding a $230M fund, offering insights on the intricacies of fundraising and the lessons learned through extensive LP meetings. The conversation also explores the distinction between foundational AI models and application layers, highlighting investment strategies and the economic implications of AI in code generation. Tune in for valuable takeaways on venture capital and emerging technologies!

Tomasz Tunguz, an AI power user and investor known for his daring insights into SaaS and AI, shares his bold predictions for 2025. He discusses the profound impact of AI on startups and productivity, highlighting how enterprises might benefit before smaller companies can disrupt them. The conversation dives into practical AI applications, personal workflows, and the evolving landscape of AI investment. Tunguz also reflects on the importance of storytelling in selling AI technologies and the dynamic role of AI in transforming work habits and industries.

Guest Tomasz Tunguz, a VC with AI expertise, delves into AI's evolution, modern data stacks, human evaluations, and high-value use cases. Topics also cover AI disrupting industries, advice for incumbents and startups, successful distribution strategies like Midjourney's on Discord, and the future of AI in non-determinism and professional relationships.

Victor Rippabelli, CEO of Synthesia, revolutionizes enterprise communication with AI-driven video technology, enhancing training and marketing strategies. Tomas Tunguz from Theory Ventures discusses the rapid growth of AI startups and the evolving venture funding landscape. The pair delve into how AI is driving a shift in pricing models towards outcome-based strategies, improving profitability. They also explore AI's impact on hiring metrics and the necessity for cultural alignment in B2B companies embracing this tech wave.

Tomasz Tunguz, a leading voice in tech investment, discusses Ethereum's potential, data security in a decentralized world, and AI technologies. They delve into blockchain's use case, the intersection of blockchain and AI, and trends in cloud investments.

Tomasz Tunguz, Founder and General Partner of Theory Ventures, dives into the transformative power of AI and its implications for both venture capital and everyday life. He highlights the significant cost reductions in AI training, debates the benefits of open versus closed-source models, and discusses the rise of AI applications. Tomasz also shares insights on navigating investment challenges in this rapidly evolving landscape and addresses AI's potential to reshape employment while balancing the need for sensible regulation.

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.On this week’s show we’re excited to have Tomasz Tunguz, Founder of newly formed Theory Ventures. Tomasz spent nearly 15 years at Redpoint Ventures, before recently spinning out to start Theory Ventures. Earlier this year, Theory closed a $230MM fund to back early stage entrepreneurs. Those who have followed Tomasz’s writing, know that he is incredibly analytical and thoughtful in his approach to business. This conversation was no different as we went deep into topics such as portfolio construction theory, business models in VC, and how to be strategic in raising a VC fund. About Tomas Tunguz:Tomasz Tunguz is a Founder and Managing Director at Theory Ventures. He is an active blogger at tomtunguz.com and is co-author of Winning with Data which explores the cultural changes big data brings to business and shows you how to adapt your organization to leverage data to maximum effect.Before founding Theory, Tomasz was Managing Director at Redpoint Ventures, where he backed many early-stage SaaS, data, and infrastructure founders in his 14-year tenure. He began his career as the product manager for Google’s AdSense social-media products and AdSense internationalization.Tomasz attended Dartmouth College and graduated with a BA in mechanical engineering, a BE in machine learning, and a master’s degree in engineering management.In this episode we discuss:(01:42) Why Tomasz joined Redpoint(03:01) The decision to start Theory Ventures (06:32) Raising his first fund during one of the most difficult raise environments in recent history(07:45) What his plan was with the raise(10:47) How Tomasz created and sustained momentum during his raise(16:12) Common objections from LPs and how he overcame them(19:49) What it means for a venture firm to have a business model(23:00) How Theory’s thesis addresses the problem of multiples in the venture market(24:59) Winning deals without paying premiums(26:13) Why the 3x net returns on venture needs to increase to be competitive(27:40) Getting comfortable with a smaller portfolio(31:29) Tomasz’s mental model of picking and diligence with a smaller portfolio(34:30) Qualitative signs he looks for in founders and companies(38:19) Why Tomasz embraces the emerging manager label(39:30) What the next decade of venture looks like(42:07) The best career advice he’s receivedI’d love to know what you took away from this conversation with Tomasz. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.Podcast Production support provided by Agent Bee This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com

Tomasz Tunguz, General Partner at Theory Ventures, discusses the Theory Ventures model, the contraction in investable VC dollars, the parallels between PE and VC, and the significance of research and analysis in venture capital. They also explore LPs and venture firm fundraising, the future of multi-stage VC firms, the current state of the economy and software and fintech sectors, and the ideal concentration of companies in a fund and the future of accelerators.

Tomasz Tunguz, Theory Ventures General Partner, discusses the reality of AI's potential and the role of tech incumbents. The conversation dives into structured vs. unstructured data, infrastructure to software development in AI, and economic analysis. They explore different types of AI models and the significance of data in investing. Lessons from 15 years of venture investing are also shared.

Join Jason Calacanis, a seasoned entrepreneur and investor, alongside Tomasz Tunguz, an AI and SaaS expert at Theory Ventures, and David Clark of VenCap. They delve into the latest Y Combinator class and the explosion of AI startups, highlighting the importance of strong founding teams in this competitive landscape. Key discussions cover evolving startup valuations in 2024, challenges in the VC industry, and strategies for successful AI investments amidst market changes. Insights abound on navigating the intricate dynamics of modern tech investing!