a16z Live a16z Growth's David George on His Frameworks for Late-Stage Investing
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Oct 15, 2024 
David George, head of the a16z Growth fund, dives into late-stage investing with a focus on identifying companies poised for explosive growth. He shares his unique mental models and insights on what makes a growth company, emphasizing the significance of inputs over outputs. The conversation covers the journey to going public, the transformative role of AI, and strategic R&D spending. David also reflects on his career path, discussing lessons learned and the importance of innovative business models in today's competitive market.
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Prioritize Upside Scenarios In Models
- Focus as much on the right-side upside scenarios as on downside protection when modeling investments.
- Devote diligence to how a company could scale massively, not just how to avoid loss.
Figma TAM Debate And Conviction
- George recounted debating Figma's price and TAM with early-stage partners who argued design would merge with engineering and business.
- That conviction helped a16z invest despite high valuation and later validated their thesis.
Missing DoorDash Taught Trend Importance
- George admitted missing DoorDash by overemphasizing business-model concerns and underestimating trend magnitude and founder strength.
- He used it as a lesson to focus more on trend power and right-side outcomes.