Nov 26, 2022, 10:33 AM ETInterview, Fireside Chat

Jeffrey Katzenberg & Sujay Jaswa: Takeaways from Dreamworks; What happened with Quibi? | 20VC #952

20VC with Harry StebbingsJeffrey Katzenberg, Sujay Jaswa, Harry Stebbings

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Over the next decade, one to two "living dead" companies are expected to execute a successful pivot to reach millions of users, while the remaining thousands will likely face failure.
A wave of Series B investors is anticipated to demand cash returns from companies with preemptive funding but no product-market fit.
Thousands of layoffs in Silicon Valley are projected to fuel a new generation of innovation and the creation of high-potential companies.
Sentiment regarding entitlement is predicted to shift rapidly within the last six to nine months, restoring "hard work" as the top priority for startups.
Dropbox is expected to become a multi-billion dollar cash flow machine post-recession, whereas few other entities are likely to achieve a $10 billion valuation.
Rapid changes in tools, platforms, and competitive dynamics are expected to render past operating experience irrelevant for many entrepreneurs within a short timeframe.
WonderCo plans to maintain fresh operating experience by incubating one to two companies annually alongside 10 to 12 growth investments over a 10-year horizon.
While remote work is not universal, a return to in-person interactions for specific functions is expected, though this transition may occur gradually rather than overnight.
The venture landscape is forecasted to take longer than usual to right-size itself for the current economic environment, potentially causing leaders to delay necessary hard choices.
Efforts to shut down Quibi quickly are expected to allow for the return of capital to investors, serving as a key lesson on cutting losses.
Founders with deep conviction and passion to change the world are expected to remain available, despite not representing the majority.
Relationship depth will be maintained through high-priority investment in networking activities, including multiple weekly meetings and calls.
Hiring criteria will prioritize candidates excited by the mission itself rather than those attracted by the company's "hot" status.
Productivity will be optimized by accommodating individual work rhythms and family commitments, allowing employees to perform at their best.
Retaining underperforming employees for extended periods (three months to a year) is expected to be detrimental, favoring termination decisions within 30 days.
Gen Z workers are projected to prioritize fair treatment, quality of life, flexibility, and corporate social responsibility, making them more likely to leave if unmet.
The narrative of Silicon Valley's decline is expected to be incorrect, with a new crop of founders emerging from the current downsizing.
Achieving generational wealth is expected to be significantly harder for an employee at a $10 billion company compared to a $100 billion or $500 billion entity.
Quibi's failure is attributed to a lack of product-market fit and a flawed design strategy of launching the product like a movie.
Founders of "living dead" companies are often driven by social pressure or a lack of alternatives rather than profound ideas, leading to negative outcomes.
Incubation experience is expected to remain relevant for advising diverse businesses, even those with different product types.
The "living dead" category includes a mix of viable ideas and those founded on wrong reasons, creating a difficult environment for the latter.
Remote work capabilities are expected to be maintained without requiring extensive travel, supporting work-life balance.
The belief that "birds fly in flocks" is expected to drive a preference for being surrounded by peers with similar obsession and drive.
Success in risk-based businesses is expected to require the willingness to fail to ensure unique and original outcomes are pursued.
Removing underperforming leadership is expected to be the best course of action to ensure mission success for the remaining team.
Working life balance is expected to allow individuals to become the "best version of themselves" and better-rounded executives.
The "dead" narrative is expected to be false, predicting a resurgence of founders fueled by laid-off workers.
Past operating experience is expected to be kept fresh through continuous company building rather than reliance on historical data.
Investors are expected to initiate cash recovery efforts from companies lacking product-market fit.
In-person work is expected to return for certain functions where its value has been underestimated.
The "hard work" priority is expected to re-establish itself at the top of the startup agenda following a period of entitlement.
Generational wealth generation is expected to face diminishing returns for lower-level employees in moderately valued companies.
Quibi's specific failure is attributed to a lack of product-market fit and strategic design errors.
WonderCo expects to build one to two companies and execute 10 to 12 growth investments over the next decade.
Millennials are characterized as entitled and egoistical, contrasting with the prioritization of fairness seen in Gen Z.
The ability to fail is expected to be a necessary component of risk-taking to prevent stagnation in unique endeavors.
Layoffs are expected to be a primary catalyst for the next generation of brilliant companies.
Tools and platforms are expected to evolve rapidly, rendering previous tactics obsolete.
Founders are expected to be a mix of those with profound ideas and those acting on wrong reasons, impacting the overall success rate.
In-person interactions are expected to remain invaluable for specific functions despite the prevalence of remote work.
The "dead" narrative is expected to be refuted by the emergence of new founders from the current employment downturn.
Operating experience is expected to be maintained through continuous incubation activities.
A wave of investor cash-back demands is expected for companies lacking product-market fit.
In-person work is expected to return for specific functions over time.
Hard work is expected to regain top priority in startup culture.
Generational wealth is expected to be harder to achieve for employee #500 in smaller billion-dollar valuations.
Quibi's failure is expected to be a result of product-market fit issues.
Work-life balance is expected to enhance personal performance and executive quality.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to seek out peers with similar levels of obsession and drive.
The next generation of companies is expected to be fueled by layoffs in Silicon Valley.
Operating experience is expected to be kept fresh through active company building.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return for certain functions.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top priority.
Generational wealth is expected to be harder for employee #500.
Quibi's failure is expected to be due to product-market fit issues.
Work-life balance is expected to enable the best version of self.
WonderCo is expected to build one to two companies and make 10 to 12 growth investments in 10 years.
Founders are expected to flock to like-minded individuals.
The next generation of companies is expected to be fueled by layoffs.
Operating experience is expected to be kept fresh.
The "living dead" companies are expected to face investor cash-back waves.
In-person work is expected to return.
Hard work is expected to be the top