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E117: Did Stripe miss its window? Plus: VC market update, AI comes for SaaS, Trump's savvy move

(0:00) Bestie intro: Jason's Japan trip! (1:04) Stripe's precarious situation: Did it miss the window? Breaking down its $4B tax bill, slowing growth curve, enterprise vs SMB customers, scalability issues, and more (23:07) Lessons for founders: How ZIRP can skew CAC and LTV calculations, burn multiple (29:40) VC market update: ZIRP mistakes, VC as a "must-have" asset class for LPs, how the 2021 vintage can be saved (39:05) AI's outsized impact on SaaS and real-world businesses (55:16) Advice from Steve Jobs on customer-first product development, Section 230 update (1:00:29) Trump's savvy visit to East Palestine and 2024 strategy, Biden's visit to Ukraine, China's position (1:14:24) Tinfoil hat corner (1:23:25) Bestie wrap up! Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://www.theinformation.com/articles/inside-stripes-55-billion-pitch-to-investors https://www.theinformation.com/articles/the-private-tech-company-that-let-employee-stock-grants-evaporate https://techcrunch.com/2013/09/11/zuckerberg-says-he-was-too-afraid-of-taking-facebook-public https://sacks.substack.com/p/enterprises-vs-smbs-whos-the-better-customer-for-b2b-saas-startups-9a0d4efe69e9 https://sacks.substack.com/p/the-burn-multiple-51a7e43cb200 https://twitter.com/tylertringas/status/1627449217294958592 https://chamathreads.substack.com/p/higher-rates-will-lead-to-the-next https://twitter.com/Jason/status/1628851245644644352 https://signalvnoise.com/posts/3497-you-know-one-of-the-things-that-really-hurt https://www.scotusblog.com/2023/02/not-like-the-nine-greatest-experts-on-the-internet-justices-seem-leery-of-broad-ruling-on-section-230 https://www.whitehouse.gov/briefing-room/statements-releases/2023/02/20/on-the-record-press-call-by-senior-administration-officials-on-president-bidens-trip-to-ukraine https://www.washingtonpost.com/politics/2023/02/20/secrecy-security-biden-trip-to-kyiv https://www.yahoo.com/news/joe-biden-makes-surprise-visit-095627966.html https://twitter.com/nytimes/status/1626984889449959430 https://www.nytimes.com/interactive/2023/02/23/world/russia-ukraine-geopolitics.html https://www.bbc.com/news/world-europe-26079957 https://openai.com/blog/how-should-ai-systems-behave #allin #tech #news

Chamath PalihapitiyahostJason CalacanishostDavid Friedberghost
Feb 23, 20231h 31mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Stripe’s missed IPO, VC reset, and AI’s deflationary SaaS disruption

  1. The episode centers on whether Stripe missed its optimal IPO window, using its RSU-driven $4B tax bill and headcount explosion versus competitor Adyen to explore valuation, profitability, and timing in public markets.
  2. From there, the discussion broadens into how founders and VCs must re-embrace discipline—CAC, burn multiples, ROIC, and realistic LTV—in a post–zero interest rate environment where many 2020–2021 vintages may underperform.
  3. They argue AI will be massively deflationary yet immensely valuable, likely enriching infrastructure and incumbents more than most new apps, while forcing SaaS companies to either integrate AI and be ‘turbocharged’ or get disrupted.
  4. The back half veers into politics and geopolitics—Trump’s East Palestine optics versus Biden’s Ukraine trip, Section 230 court arguments, and U.S. foreign policy in Ukraine, Russia, and China—framed as elite distraction from domestic issues.

IDEAS WORTH REMEMBERING

5 ideas

Late-stage private companies risk real value destruction by delaying IPOs.

Stripe’s $4B tax bill to extend expiring RSUs and a down-round valuation from ~$95B to ~$55B illustrate how staying private too long can create equity, tax, and balance-sheet problems that a timely IPO might have solved.

Headcount growth without operating leverage signals structural issues.

Compared to Adyen, Stripe 4x’d employees in two years while achieving weaker GMV-per-employee trends, suggesting bloated staffing, higher coordination costs, and lower long-term profitability despite similar top-line growth.

Founders must rigorously track efficiency metrics beyond topline growth.

The speakers emphasize CAC, CAC payback, burn multiple, and a generalized ‘LTV-to-CAC’/ROIC view—i.e., capital deployed versus capital returned over time—as early warning systems for when a business is scaling unprofitably.

2020–2021 VC vintages are likely overvalued and time-compressed.

Too much capital was raised and deployed too quickly at inflated valuations, so many funds will have to ‘give back’ paper markups; future outperformance will hinge on owning a few true outliers rather than broad vintage strength.

AI will likely turbocharge some SaaS incumbents and obliterate others.

Use cases like auto-summarization, in-app copilots, and autocomplete across content types will embed into existing products, meaning SaaS vendors that integrate AI well gain huge leverage, while those that don’t face rapid displacement.

WORDS WORTH SAVING

5 quotes

When you’re in a boom, the only three things that matter are growth, growth, and growth. And when you’re in a downturn, the three things that matter are growth, burn, and margins.

David Sacks

The most profitable thing [Stripe] could have done from an enterprise value perspective would probably have been to go public in 2018, 2019.

Chamath Palihapitiya

The boundary condition for AI to replace a human is where the threshold error rate of that AI is the same or less than the human.

Chamath Palihapitiya

I think this AI revolution is gonna do for SaaS what mobile did for a lot of the Web 1.0 companies—you either get disrupted or you get turbocharged.

David Sacks

Technology drives prices down. Technology is about doing more with less.

David Friedberg

Stripe’s valuation, RSU tax overhang, and comparison to AdyenGo-public timing, stock options/RSUs, and employee equity riskMetrics for startup health: CAC, burn multiple, LTV, ROIC, and revenue per employeePost–zero interest rate VC vintages, fund performance, and allocator behaviorAI’s impact on SaaS, labor, pricing power, and who captures economic valueSection 230 Supreme Court arguments and platform liabilityU.S. politics and foreign policy: Ukraine war, East Palestine, China, and Trump’s positioning

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