Ramtin Naimi

It's on track to grow 15x year over year this year.

Maybe it grows 10x year over year next year.

What is the fair multiple to assign to that deal?

It's hard to determine what the correct answer to that is.

But there's also way less predictability in its potential growth.

Because there's no shortage of application layer companies that become obsolete overnight when it becomes a new feature of one of the foundation model companies.

The company could have grown 20x last year and 10x this year.

That shrinks next year.

I think at the end of the day, with venture, you're trying to capture outliers.

If the companies are shaping up to be the next power law companies of the future, you'll do whatever it takes to get into one of those companies.

So for the follow-on rounds, I will say that I don't think it's in a bad place because these are truly incredible companies growing at truly unprecedented rates and achieving adoption that no one ever thought was possible.

So they clearly have unbelievable signs of product market fit very early in their life cycle.

So that's the side that I wouldn't say is healthy or unhealthy.

I'd say it's undetermined.

it's good for the asset class overall.

If you're investing in companies that are growing this fast, LPs will ultimately do well.

Will they do as well if they would have if these companies were invested in half the price and double the ownership?

Sure.

But markets get efficient over time.

And I think venture as an asset class is getting efficient and efficiency brings returns back to the mean.