A16Z's David George on How Private and Public Markets Fused Into One

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Odd Lots 51 min 8 speakers 8 chapters transcribed 1 month ago
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Why are mega‑tech companies like Stripe and Databricks staying private longer?

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Bloomberg Audio Studios 0:37
Bloomberg Audio Studios, Podcasts, Radio News.
Joe Weisenthal 0:53
Hello and welcome to another episode of the Oddlots podcast. I'm Jill Weisenthal.
Tracy Alloway 0:58
And I'm Tracy Alloway.
Joe Weisenthal 0:59
Tracy, it feels like 2026 could be a big year for some mega IPOs that have been private for a while. There's talk about a SpaceX IPO, possibly, maybe some of the big AI labs, like some pretty massive companies that might be uh hitting the market soon.
Tracy Alloway 1:16
Someone recently gave me a Facebook IPO help from JP Morgan when they worked on it. Like I'm very proud. I need to start wearing it around the office. Yeah.
Andy Samberg 1:25
But
Tracy Alloway 1:25
that was like that was a mega IPO at the time and there was so much hype about it and then like technical difficulties
Joe Weisenthal 1:31
and
Tracy Alloway 1:32
So many people eager to get in on that one.
Joe Weisenthal 1:35
It's so many funny people called that a flop, I guess, because the technical difficulties and it didn't do that great for a little bit. That would have been a great time to buy it.
Tracy Alloway 1:42
Yeah. And seriously.
Joe Weisenthal 1:43
The interesting thing about the um market, or one of the interesting things about the market is you have these companies that are gonna IPO when they're already gigantic. So like people point out that in earlier eras they might have IPO'd when they're like billion-dollar companies and now they're like octocorns or whatever. And then you have other companies that are also enormous, and there's no it's not clear that they're gonna IPO it up oh at all. At all. You know, I saw a headline about Stripe, perhaps. Perhaps raising more money. Money. People but they could have probably IPO'd years ago. And one of the questions I have is are companies choosing not to IPO or put delaying IPO because the public market is not that fun, or because the private market has gotten so much richer, so much more liquid, et cetera, that that impulse to go public just isn't the same way as it might have been in a different generation.
Joe Weisenthal 2:23
So much more.
Tracy Alloway 2:30
Yeah, this has kind of been a long running question in the market for a while now. But one thing I would just point out on the last point, it feels to me like companies in the private market, even though they're in the private market where presumably the pool of capital is smaller.
Joe Weisenthal 2:44
Yeah,
Tracy Alloway 2:44
it feels like they're always fundraising. This is the other thing
Joe Weisenthal 2:47
too. That like it used to be when I started covering tech companies, is like Your series A round and series B round C. Right. And now it just seems like this permanent round, especially with some of the AI cards. Always
Tracy Alloway 2:58
be raising.
Joe Weisenthal 2:59
Always raising. Anyway, we need to learn more about how giant companies are thinking about capital markets, both public and private. And I'm really excited to say we do, in fact, absolutely have the perfect guest. We're gonna be speaking with David George. He is the head of the uh growth fund at Andrees and Horowitz A sixteen Z, someone perfectly situated to explain of all these things that's going on. So uh David, thank you so much for uh coming on Outlots. Great to be with you. What is a growth fund? What is the I thought all VC was growth. What does it mean when we talk about a growth fund or a growth round when we're talking about private markets?
David George 3:33
Yeah, so our first of all, it's great to be with you all. Thanks for having me. Excited to have this conversation. So our early stage funds invest in companies that are growing fast too. So if that's not clear, that is what we seek to do across all pools of capital. For us, the growth fund is a fund that invests in companies at the later stage of their life cycle. So typically once they've found product market fit. And our early stage funds invest in companies early stage when they're kind of trying to find product market fit.

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