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Back to Inside the Anthropic Bet That Made Menlo a Top AI Firm | Matt Murphy, with Matt Murphy.

Should Venture Firms Slow Down?

Matt Murphy is open to venture firms slowing down, and he does not know that the market needs a lot of changes right now. Enough really strong mergers and acquisitions have already validated that some of the valuations, and the companies being backed, are going to have great outcomes.

He treats a weak acquisition market as the worry. Everybody would have chips back on the table and there would be no exits. The lack of exits is scary enough to raise whether firms should slow down. He is open to slowing down anyway.

Acquisitions have already taken some pressure off the release valve. Capital has gone back to LPs, and the returns are good.

Grokipedia·Matt Murphy

Transcript

Inside the Anthropic Bet That Made Menlo a Top AI Firm | Matt Murphy ·

The Peel with Turner Novak

More from this episode

  1. Why Is Anthropic's Headline Burn Figure Not Cash?Matt Murphy says Anthropic's headline burn figure is not cash.
  2. How Fast Is Anthropic Growing Compared With Google?Matt Murphy says Anthropic is growing on a clock that makes Google's famous run look slow.
  3. Why Did Matt Murphy Back Anthropic Before Revenue?Matt Murphy backed Anthropic before it had revenue because the partnership had decided it had to be in the category.
  4. Why Did Menlo's Anthropic Check Look Too Small?Matt Murphy says Menlo's first Anthropic check looked too small to matter to the fund. It did not fit the venture fund or the growth fund.
  5. How Did Menlo Raise an SPV With No Anthropic Financials?Matt Murphy says Menlo's first special-purpose vehicle for Anthropic nearly got ahead of the firm.
  6. Why Did Matt Murphy Join Menlo Ventures?Matt Murphy joined Menlo because the firm had already done the generational handoff that wrecks other venture firms.
  7. Why Did Menlo Go All in on AI?Matt Murphy says Menlo put all its chips on the table when the AI wave arrived. Conviction inside the whole firm was incredibly high.
  8. How Did Menlo Become a Top AI Firm?Matt Murphy says Menlo became a top AI firm by stacking pieces for years, not by spotting Anthropic on the day of the round.
  9. Why Do Venture Firms Decay?Matt Murphy says venture firms decay through poor handling of generational transition.
  10. What Is Menlo's Anthology Fund?Matt Murphy says Menlo's Anthology Fund was a way to see more of the AI map before it was obvious which companies would matter.
  11. Why Is AI Not a Repeat of 1999?Matt Murphy says this AI wave is not a repeat of 1999 because that boom hit a wall this one does not have.

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