Geoffrey Moore: uncertainty

Transcript context

…I see. So you could cut back and you can get to profitability if you need, but the idea is your cashflow positive? And you'd like to grow and you might want to raise money. But the point is, if you do go out to raise money, you get to raise money at a different valuation. So the way in which venture capitalists categorize you is they say, "What risk is my money going to take off the table?" So an angel investor says, "Well, my money is going to take off the table, the risk of whether you can even create anything, I'm going to give you enough money to get into trouble." That's basically it. And then the Crossing the Chasm money says, "I'm going to take company existence viability off the table. I don't know if you're going to grow, I don't know if you're going to become a venture return, but I'm going to take you going out of business off the table. " And then the bowling alley stuff is, "Okay, now I'm buying probably a journey from 10 million to a hundred million dollars," something like that. "And I'm expecting a growth rate," and this is probably where the rule of 40 starts to kick in. If you're playing the rule of 40, we want to raise more money later on, you're going to have a different valuation than we had before. And then the tornado thing by that point, now you say, "You're in Gen AI? You have a large language module? Whoa, okay. You're worth a lot more than we thought," because now the category's in the tornado and that's a different game. Yeah. I was going to say AI is clearly an example of being in tornado. So maybe just talk a little bit about what that is, the tornado phase and then there's the Main Street playbook.…

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