🎙️ podcast Analysis December 16, 2025 The Twenty Minute VC (20VC): Venture Capital | Sta

The Scale Paradox: Why Billion-Dollar Funds Are Outperforming Small Venture Capital

AI Application Software Autonomous Vehicles Private Market Infrastructure
Tickers
1 Pick
Conviction MEDIUM
Risk Profile 3.0/10 (MODERATE RISK)
Horizon 24-36 months

Executive Summary

Andreessen Horowitz's David George reveals a counterintuitive reality: their best performing fund in firm history is a $1 billion fund, not a smaller one. This challenges the venture orthodoxy that large funds can't generate superior returns. George's data shows that 47% of value creation happens between Series A and B, while 53% occurs post-Series C, indicating massive late-stage value creation opportunities. The private markets have grown 10x over 10 years to $5 trillion, fundamentally changin...

Key Investment Opportunity

The Application Layer Gold Rush - Beyond the Model Wars

While markets obsess over OpenAI vs Anthropic model competition, the real value creation is happening in the application layer. George's insight that 'the models will eat everything' thesis has been disproven - instead, specialized applications built on commodity models are capturing massive value. ...

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