The speaker notes that he is willing to overpay for a startup he really believes in, but will sit out from investing in startups with high valuations that he can't get his head around. He believes that high valuations in public markets will trickle down to venture capitalists.
The sudden rise in valuation of Pipe, a company that offers upfront payment for recurring revenue, has left many confused about how to invest in it, especially since the company's sudden rise in value seems disproportionate to its offering.
Building a world-class product and a couple of customers who are blown away is all it takes to raise money. Startups should expect a six to 15 million evaluation for a product in the market and 50 to 100 times yearly revenue.
The speaker mentions Stick and another company that allow users to bet money on different outcomes, suggesting that other companies could do something like this, and discussing the benefits of this cohort-style, time-limited approach.
Amazon's ad business grew 77% YoY, totaling $24 billion and surpassing Amazon Web Services (AWS). However, some predict that the four current technology monopolies, including Amazon, may face breakup by the end of the decade.