Ben Gilbert: disagreement

Transcript context

…The thing that's so cool that I didn't put together until doing the research for this episode, remember, last time we talked about the Mike Moritz line that I don't think is public, I think it's more like an internal saying that every successive generation of technology companies should be an order of magnitude bigger because of Moore's Law, because the cost of compute declines. That means that every successive generation can address an order of magnitude, more industry is more people, and thus, the outcome should be bigger, and every fund's performance should surpass the last. It's the same argument as software's eating the world. It's exactly the same argument. Compute cost declines. Marc says in the piece, "More and more major businesses and industries are being run on software and delivered as online services, from movies to agriculture to national defense. Over the next 10 years, I expect more industries to be disrupted by software with the new world beating Silicon Valley companies during the disruption in more cases than not." That's exactly what happens. The only thing I will disagree with in your comment is that every successive generation of funds should be that much better than the previous. Because as we've seen, even in the earliest stages, price goes up. Your entry point continues to be higher and higher, even though, as you're pointing out, your exit value or the addressable market of every single company continues to be greater and greater as software companies. You're making the anti Andreessen Horowitz argument.…

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