E12: Redpoint Ventures and Stepstone Group on VC Deployment, M&A, and Google's AI Strategy

Key Points

• The fundraising market is challenging for new and smaller funds, but established, multi-billion-dollar platform brands are consistently meeting or exceeding targets due to their perceived safety and ability to accommodate large check sizes from big allocators.
• AI's rapid innovation cycle, with generative AI models quickly superseding previous versions, presents a challenge for startups as they risk becoming obsolete; this could lead to AI becoming a commodity like fiber and storage, with the real value emerging from applications built on top of these technologies.
• The venture ecosystem is experiencing a liquidity crunch, with IPOs at their lowest in decades and M&A activity hindered by regulatory scrutiny, underscoring the importance of secondary markets and strategic liquidity solutions for funds and companies.