The discussion examines how rising AI infrastructure demands and inflated private market valuations—exemplified by Revolut’s $75B valuation—are reshaping venture capital. Over-optimism in narrow markets like legal SaaS risks massive write-downs, as total addressable markets fail to support sky-high growth assumptions. Vertical SaaS faces headwinds due to limited scalability and high customer acquisition costs, while the era of small contracts no longer suffices; companies must push for $10K+ minimums to achieve meaningful revenue. The concentration of compute power among giants like OpenAI and Anthropic is forcing startups to build proprietary models and infrastructure, increasing capital intensity. Despite strong paper returns, VC has underperformed public markets, with long fund cycles and distribution delays undermining investor confidence. The current environment, marked by aggressive funding and speculative enthusiasm, mirrors past hype cycles, suggesting a future correction. Sustainable success will favor disciplined, focused strategies over blind bets on AI-driven growth.