Inside the Defense Tech Boom | VC Roundtable

Summary

Three top VCs discuss the extreme concentration of venture capital, the future of VC as a craft vs. consensus asset class, and the impact of AI on compute costs and energy. They also cover defense tech, geopolitical shifts, and Israel's resilient tech ecosystem. The conversation highlights the shift to sovereign supply chains and the potential for Israeli equities to become a major listing venue.

• US VC concentration hits extreme levels; top five firms capture 73% of LP commitments in Q1.
• Michael Eisenberg argues venture capital may be ending as a craft business due to capital engorgement.
• Larry Covert differentiates consensus VC (CVC) from traditional VC focused on frontier innovation.
• AI compute costs and energy constraints are seen as limiting factors for growth, with surge pricing possible.
• The Iran conflict and geopolitical tensions are driving a move toward sovereign allied supply chains.
• Tel Aviv Stock Exchange has outperformed other indices and is viewed as a future listing venue for tech.
• Defense tech is booming but crowded; Larry advises avoiding the drone sector.
• Michael Eisenberg is bullish on Apple for its edge AI capabilities as models move to devices.