David George argues that large venture funds can outperform smaller ones, citing top returns from a $1 billion fund with major wins like Databricks and Coinbase. He highlights that return on invested capital matters more than traditional metrics like revenue or margins, especially in AI-driven companies where value is created early. Founders with exceptional vision and execution—such as those behind OpenAI and Figma—are prioritized, while fear of theoretical competition causes many investors to miss transformative opportunities. The shift to private markets allows companies to avoid public volatility and focus on long-term goals, supported by strong ROIC and innovation in AI. George reflects on missing Anthropic due to underestimating the need for specialized applications atop foundational models, now a growing trend. He also defends bold bets like the $300M investment in Adam Neumann’s Flow, emphasizing brand-building and operational scale. Ultimately, a16z’s strategy centers on backing proven winners with momentum, identifying overlooked excellence early, and focusing on founders whose strengths compound over time.