A16Z's David George on How Private and Public Markets Fused Into One

The trend of companies staying private longer and the dynamics between private and public markets are explored. David George, head of the growth fund at Andreessen Horowitz (A16Z), discusses the reasons behind this trend, including deeper and more liquid private capital markets, and structural challenges in the public markets. He notes that highly valued tech companies represent a significant portion of the private market cap, rivaling a substantial percentage of the S&P 500 and NASDAQ. The conversation touches on employee retention strategies in private companies, such as tender offers, and the potential drawbacks of SPVs. Additionally, the discussion covers the impact of AI on both private and public companies, emphasizing the importance of industry-specific knowledge and the shift towards outcome-based pricing models.