Do startup valuations today make sense?

Umesh Padval, an early investor in Cohere, now valued at about $7 billion shares why Cohere stood out at the time of his investment. He shares what he saw early that made him believe this was not just another AI model company.

Umesh is the Founding Managing Partner, Seligman Ventures and previously at Thomvest and Bessemer Venture Partners. He brings experience from investing across multiple tech cycles, from chips to cloud to AI. Umesh talks about how deals are really done in venture capital and what he looks for when everything feels noisy and crowded in AI.

He also shares why many strong companies are choosing to stay private and what has changed in the IPO market. Public markets now demand cash flow and durability, not just fast growth.

Umesh talks about why open source has become a powerful sales funnel for modern AI companies. Developers become the first users, and community adoption turns into long-term enterprise revenue.

After four decades in Silicon Valley and 20 years as a VC, Umesh shares what keeps him in building and investing.

0:00 – How big is the scope for investing in AI startups?
04:04 – Do unit economics justify large AI valuations?
06:00 – Thomvest’s LLM investment thesis (Cohere case study)
09:18 – Are CTO roles changing in AI
11:21 – Traits of the best AI founding teams
13:40 – Timeline to find the best founders
16:52 – Partnership with Jyoti Bansal
19:07 – Where is the IPO market headed?
23:40 – Salesforce–Clari acquisition
25:18 – Is profitability a prerequisite to go public?
26:00 – Can the India–US corridor beat US–Israel?
28:53 – Umesh’s investment philosophy
31:08 – Open source as a sales funnel
33:38 – IIT → Stanford → Startups
41:45 – The only CEO with 60 direct reports
43:43 – Why Jensen never does 1-on-1s?
48:23 – What ultimately drives Umesh Padval?

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This video is for informational purposes only. The views expressed are those of the individuals quoted and do not constitute professional advice.

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