Uploaded June 2026 | Updated September 2026, 2 weeks ago
"You're looking for an outcome that you're never going to see.”
Village Global Luminary LP Mark Pincus on the Sequoia meeting that set the tone for how he thought about valuation:
"I had this meeting with Sequoia. I was asking for $20 million pre and we were doing $200,000 a month in free cash flow. They said, how do you justify that valuation?"
"I said, if you care about this valuation, this isn't the right deal for you. This is either going to be a multibillion-dollar company or nothing, and it just won't matter."
"Everyone thinks that way now, call options. But I was like, if you're worried about whether it's $15 pre or $20 pre, don't play."
"You're looking for an outcome that you're never going to see.”
Village Global Luminary LP Mark Pincus on the Sequoia meeting that set the tone for how he thought about valuation:
"I had this meeting with Sequoia. I was asking for $20 million pre and we were doing $200,000 a month in free cash flow. They said, how do you justify that valuation?"
"I said, if you care about this valuation, this isn't the right deal for you. This is either going to be a multibillion-dollar company or nothing, and it just won't matter."
"Everyone thinks that way now, call options. But I was like, if you're worried about whether it's $15 pre or $20 pre, don't play."





![Inside the Math That Decides Which VCs Write Billion-Dollar Checks | Michael Hochberg (Periplous)
Michael Hochberg is a semiconductor entrepreneur, Caltech-trained physicist, and network investor with Village Global. Hes founder and president of Periplous LLC, and has built and scaled hardware and deep tech companies through multiple market cycles. Max Kilberg is an Investment Partner at Village Global.
In this excerpt, Michael breaks down the bifurcation happening in venture right now, mega funds like Thrive, Andreessen, and Sequoia raising massive quantums of capital to chase billion-dollar checks, while early-stage investing stays as artisanal and relationship-driven as ever. He and Max dig into why every stage of investing has effectively compressed into seed-style decision-making, how mega funds justify writing both billion-dollar and hundred-million-dollar checks inside the same firm, and why the exit math VCs are chasing has shifted from a few-hundred-X outcome to hunting for hundred-billion-dollar companies. The conversation closes on Michaels contrarian belief that most traditional startup moats, like customer lock-in and data flywheels, are eroding fast, and that speed and talent are becoming the only defensibility that still holds up.
This is an excerpt from our full conversation with Max Kilberg and Michael Hochberg. Watch the full episode here: https://youtu.be/LTfrV4tEdms
[00:00] Whats happening in venture that isnt obvious from outside
[01:22] The compression of every stage into seed investing
[02:13] How mega funds bridge billion-dollar and early-stage deals
[03:19] The exodus of young investors into operating roles
[04:29] Why founders used to avoid capital-intensive ideas
[05:21] Why capital intensity has become the dominant narrative
[06:57] From hundred-X outcomes to hundred-billion-dollar hunting
[08:17] Why bigger funds need bigger outcomes
[09:59] Im a no-moats-exist believer
[10:41] Do brand, scale, and network-effect moats still exist?
[11:54] Closing thoughts Inside the Math That Decides Which VCs Write Billion-Dollar Checks | Michael Hochberg (Periplous)](https://i.ytimg.com/vi/WwNxs0mC0GY/mqdefault.jpg)




