David Frankel

You need capital for that as well, because the programming overhead of that, the number of engineers you need to create something tiny is huge.

We're off-piste. We're non-consensus. We're contrarian. So when I see those rounds, if I see a round at 5 on 20, that's in our hitting range. When I see those rounds at like 25 on 100, pretty much we're out. We're pretty much out. Again, team versus theme. So there are rare instances where we see someone who's just like, you cannot ignore.

We're off-piste. We're non-consensus. We're contrarian. So when I see those rounds, if I see a round at 5 on 20, that's in our hitting range. When I see those rounds at like 25 on 100, pretty much we're out. We're pretty much out. Again, team versus theme. So there are rare instances where we see someone who's just like, you cannot ignore.

We're off-piste. We're non-consensus. We're contrarian. So when I see those rounds, if I see a round at 5 on 20, that's in our hitting range. When I see those rounds at like 25 on 100, pretty much we're out. We're pretty much out. Again, team versus theme. So there are rare instances where we see someone who's just like, you cannot ignore.

You wake up in the morning, you go, oh my God, like, how can I not be involved? But for the most part, 99% of the time, we're not involved. But you just can't make money in a seed fund, those numbers. I don't see how you can make money.

You wake up in the morning, you go, oh my God, like, how can I not be involved? But for the most part, 99% of the time, we're not involved. But you just can't make money in a seed fund, those numbers. I don't see how you can make money.

You wake up in the morning, you go, oh my God, like, how can I not be involved? But for the most part, 99% of the time, we're not involved. But you just can't make money in a seed fund, those numbers. I don't see how you can make money.

Yeah. Overall, I admire your discipline. I think rear view mirror on this, you can't build a fund on this. Rear view mirror, you can think about that one that you missed, and they're one or two in a generation. There are these generational companies, or maybe there is one a year. And if you're in that company, awesome. But can you build a fund strategy? I don't think you can. Not at Seed.

Yeah. Overall, I admire your discipline. I think rear view mirror on this, you can't build a fund on this. Rear view mirror, you can think about that one that you missed, and they're one or two in a generation. There are these generational companies, or maybe there is one a year. And if you're in that company, awesome. But can you build a fund strategy? I don't think you can. Not at Seed.

Yeah. Overall, I admire your discipline. I think rear view mirror on this, you can't build a fund on this. Rear view mirror, you can think about that one that you missed, and they're one or two in a generation. There are these generational companies, or maybe there is one a year. And if you're in that company, awesome. But can you build a fund strategy? I don't think you can. Not at Seed.

Well, if you break the rules and you're right, you've done unbelievably well. By the way, again, if you broke the rules and it was a 10 post and you broke the rules and it was like, you know, 250 million post, like the return to you and your fund is infinitely different. So I think you break the rules and you get right on 250 million post and you get a 10X, That's why I go Josh on a billion.

Well, if you break the rules and you're right, you've done unbelievably well. By the way, again, if you broke the rules and it was a 10 post and you broke the rules and it was like, you know, 250 million post, like the return to you and your fund is infinitely different. So I think you break the rules and you get right on 250 million post and you get a 10X, That's why I go Josh on a billion.

Well, if you break the rules and you're right, you've done unbelievably well. By the way, again, if you broke the rules and it was a 10 post and you broke the rules and it was like, you know, 250 million post, like the return to you and your fund is infinitely different. So I think you break the rules and you get right on 250 million post and you get a 10X, That's why I go Josh on a billion.

If he makes two X there and you go like, that is the company. That is the company. Would you bet against OpenAI right now? No way. So it depends on the customer base for OpenAI. If they distribute well and more and more people say, look, ChatGPT, it's on my phone, download that, start using that.

If he makes two X there and you go like, that is the company. That is the company. Would you bet against OpenAI right now? No way. So it depends on the customer base for OpenAI. If they distribute well and more and more people say, look, ChatGPT, it's on my phone, download that, start using that.

If he makes two X there and you go like, that is the company. That is the company. Would you bet against OpenAI right now? No way. So it depends on the customer base for OpenAI. If they distribute well and more and more people say, look, ChatGPT, it's on my phone, download that, start using that.

Like, you know, when my wife and my kids start to use it and like go, oh my God, like I'm going here before Google. I'm not sure that Microsoft can think of it only as their plaything. If people are leaving OpenAI and OpenAI is not scaling and not creating more and more revenue, you may be right. But if OpenAI continues to grow the way it is, I don't know that Microsoft can ignore them.

Like, you know, when my wife and my kids start to use it and like go, oh my God, like I'm going here before Google. I'm not sure that Microsoft can think of it only as their plaything. If people are leaving OpenAI and OpenAI is not scaling and not creating more and more revenue, you may be right. But if OpenAI continues to grow the way it is, I don't know that Microsoft can ignore them.

Like, you know, when my wife and my kids start to use it and like go, oh my God, like I'm going here before Google. I'm not sure that Microsoft can think of it only as their plaything. If people are leaving OpenAI and OpenAI is not scaling and not creating more and more revenue, you may be right. But if OpenAI continues to grow the way it is, I don't know that Microsoft can ignore them.

I think in some ways Microsoft are going to have to say, this is terrible because we wish we owned 100% of it, but this is our play. And who knows? The next thing could be a merger between OpenAI and Microsoft. I don't know that they want that. I think there's a lot of regulatory heat around this that you may kind of do well to avoid at the very beginning.