Gurley suggests Austin and Miami being fun cities may be a problem for attracting the most determined startup founders.
“I think many cities, whether it's Austin or Miami, they they have a problem that sounds ironic, but they're a lot of fun.”
Gurley says healthcare startups trying to monetize end up reinforcing bad system dynamics instead of changing them
“And then and then some of them end up in a place where they're actually reinforcing the bad stuff, you know, and making it worse.”
Gurley says entrepreneurs design with cutting-edge AI models but switch to cheaper versions for 20x savings.
“It's like 20x differential. And when I talk to our entrepreneurs that are using these models, they might design with the cutting edge model, but they all back off to the affordable models”
Gurley cites research showing over 500 Chinese EV startups compared to four legitimate US ones.
“And I, you know, I think the data suggest in this this piece of research would suggest that's why they've been so successful in EVs where there were over 500 EV startups,”
Gurley contrasts China's 500 EV startups with only four legitimate ones in the United States.
“in EVs where there were over 500 EV startups, 500 in The US. What has there been? Four legitimate ones?”
Gurley says young AI companies begging for regulation is unprecedented and threatens idealistic entrepreneurship.
“So there's these new areas there and now AI where very young companies are begging for regulation, which is not anything I've seen in my career either.”
Gurley notes owning 100% of a $20 million exit creates lifetime wealth and attracts more acquirers than larger exits.
“Your boss won't care. If you own a 100% of a $20,000,000 company, that's lifetime wealth.”
Gurley says founders are the chief salesperson for their company, selling to investors, employees, and customers constantly.
“But if you're a founder, you're selling to new investors, you're selling to employees, you own the company culture and the perception of the company, you're striking deals, you're selling to customers, you're just out selling all you're the number one sale you're the chief salesperson for your company,”
Gurley explains VCs can only join about two boards per year, unlike public investors evaluating unlimited positive-IRR opportunities.
“If it's positive IRR and I'll make 14%, I'll do it. Yep. But venture capitalists have a limited number of boards they can go on, probably two a year.”