? (Correspondent) 00:00.390
all right medlines market debut earlier this month closed out a strong year for IPO 's the biggest since twenty twenty one chime circle core weave also listing in twenty twenty five thompson wynn is the co-founder and managing partner of sega ventures saga ventures sega ventures
? (Correspondent) 00:16.190
which ventures reddit saga ventures which backed reddit anderol and ramp yeah i guess sega would be probably copyrighted thank you very much for joining us so you know we've seen the IPO market come back to some extent this year obviously twenty twenty one was an anomaly by many
? (Correspondent) 00:34.870
measures but i'm curious if you think next year could be even bigger than that given what we're expecting at least what's been reported with regard to the potential for open AI and throatic spacex i mean that could be beyond records if they ultimately raise capital at levels
? (Correspondent) 00:52.830
that are being reported right now
Thomson Nguyen (Co-founder & Managing Partner) 00:55.510
i think that's right first thanks for having me i think twenty twenty six will be a good year for IPO 's to to be honest i think you know we're expecting modest rate cuts in the next year we see this surge of AI and by extension chip and energy companies that are continuing to
Thomson Nguyen (Co-founder & Managing Partner) 01:11.150
grow and as you mentioned there's this continuing backlog of large cap private companies you know in addition to spacex open AI and anthropic we've got stripe service systems and databricks as well
? (Correspondent) 01:22.680
do you think that the private markets are more or less disciplined than the public markets will be i ask that because we've seen these private fundraisers at what appears to be eye popping valuations we don't know all of the specifics as it pertains to the fundamentals for many
? (Correspondent) 01:39.590
of these companies but then at the same time on the on the flip side you have a public market environment where there's been just such a dearth of big growth name brand companies coming to market over the last few years i wonder if there will be sort of this supply demand
? (Correspondent) 01:55.150
dynamic whereby the buy side is clamoring to get into these names just because they haven't had exposure to them in quite some time
Thomson Nguyen (Co-founder & Managing Partner) 02:02.950
i think it's natural for for private valuations to sort of kind of be a leading indicator and then once they IPO we'll we'll see this sort of like correction or reversion to to PE multiples that make more sense in public markets but at the end of the day you know when you play a
Thomson Nguyen (Co-founder & Managing Partner) 02:18.390
long term game these companies have to eventually build and provide goods and services to people and so you know you look at open AI they've got eight hundred million users for what is essentially a three year old product they have a million using it it really is sort of amazing
Thomson Nguyen (Co-founder & Managing Partner) 02:35.550
growth and and sort of a trajectory that we've really not seen at all before with these what we're calling AI native companies
? (Correspondent) 02:42.630
that i've heard is you know maybe some concerns around the market being able to absorb all the supply if it if it does come to pass that these big companies all come out next year around the same time is the market able to absorb all of that new issuance or do you think you
? (Correspondent) 03:00.030
could see some pockets of volatility as a result of it
Thomson Nguyen (Co-founder & Managing Partner) 03:04.080
i mean i think one thing we always worry about in early stage venture capital is that you know the the market can't really bear thousands of small startups working in AI infrastructure and AI applications and you know the the same is probably true in the public markets as well
Thomson Nguyen (Co-founder & Managing Partner) 03:16.320
you know we we will see as companies IPO value accrue to the winners just as we saw in the twenty tens we had value accruing to amazon web services to google cloud platform and microsoft azure cloud we will see this similar consolidation effect for application layers and what AI
Thomson Nguyen (Co-founder & Managing Partner) 03:35.470
infrastructure companies
? (Correspondent) 03:37.670
so there's this formation phase in this rationalization phase which one is next year we're still in the formation of creating these new companies we're going to start to rationalize the next year
Thomson Nguyen (Co-founder & Managing Partner) 03:48.390
i still think we're in the very early innings of what we're calling transformer style LLM companies you know you think about like chatgpt really being three years old we now have open AI and nvidia announcing their hundred billion dollar infrastructure data center in september
Thomson Nguyen (Co-founder & Managing Partner) 04:08.470
that'll provide ten gigawatts of power to nvidia chips to to basically train their next generation models we're still in the very very early stages of allowing for these AI models to understand synthesize and provide curated internet for users and then we've not even touched
Thomson Nguyen (Co-founder & Managing Partner) 04:27.190
upon what we're calling the sort of like agentic internet the idea that these AI agents can perform actions on our behalf the most specific examples like agente commerce the idea that you know if i have an AI agent that understands and knows my preferences it'll automatically
Thomson Nguyen (Co-founder & Managing Partner) 04:43.030
buy things on my behalf so you know knows that once i've logged three hundred miles on my running shoes it'll automatically just buy a pair of you know the the latest running shoes that i i've been using for the last couple of years