David Rosenthal: belief

Transcript context

…It's like Andreessen Horowitz had a different underwriting model on the future than the rest of the VCs did. So far, because we've been in this bull run this whole time, it has proven to be right. Everyone else who is being too conservative in their valuation models and basically underwriting of what future markets could look like, was wrong. That's why Andreessen Horowitz could both be the best product at the best price, but it may prove to be the case at some point in the future that the gas in the tank runs out on software is eating the world, or that we go through a little extended hiccup, where people stop believing that for five years and the money coming after you dries up, and the LPs are difficult to raise from. I'm just imagining a little bit more capital-crunched environment, where you can't be both higher valuations with more money and a really expensive broad set of services. Yup. Now in the long run, obviously, I think we all know what side we fall on here. Everything, it depends on your time horizon. If your time horizon is infinite, then yes, you and I, being the optimist that we are, we're looking at this bear case being like, yeah, but as long as you can tough it out, it'll be fine.…

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