The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why VC Today is Worse Than 2021 | Why Vertical SaaS is a Bad Investment Today | Why We Are Deluding Ourselves on Growth Expectations | Revolut Raises $3BN at a $75BN Valuation | Benchmark Adds Their Newest General Partner
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Oct 23, 2025 The hosts dive into the challenges facing venture capital today, revealing why the current landscape mirrors the 2021 hype. They discuss Revolut's staggering $3BN raise at a $75BN valuation and question the sustainability of such forecasts. Insights on the perils of investing in vertical SaaS are shared, emphasizing that over-romanticizing these opportunities may lead to disappointment. The conversation also covers the impact of AI on various sectors and whether rising capital intensity and infrastructure needs could lead to a future compute glut.
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Longer Private Lifecycles Inflate TAM Risk
- Staying private longer raises the bar for TAM because companies must reach larger revenue before public exit.
- Jason warns TAM exhaustion is more visible now and founders must run faster to avoid it.
AI Creates A Short-Term 'Everyone Is Buying' Illusion
- The AI boom is creating a false signal where "everyone is in market" now, similar to 2020's temporary rush.
- That surge can mislead investors into overfunding vertical niches that later face adoption slowdowns.
Capture Early Buyers — But Price For A Slowdown
- Move fast to capture customers during the current AI buying frenzy because many will decide once and stick.
- But price your entry and valuation assuming growth will slow after the initial adoption window.