TechCrunch’s StrictlyVC evening in Los Angeles brought together two seasoned venture capitalists, Carter Reum and Chang Xu, to discuss the challenges of investing in an era where technology moves faster than ever. They explored how to price deals when startups generate revenue at unprecedented rates, and how to identify companies that won't be steamrolled by tech giants like OpenAI.

Reum highlighted the paradoxical nature of this cycle: while the potential for rapid growth means valuations don’t seem so crazy, overpricing every deal could lead to poor outcomes. Xu emphasized staying close to technical differentiators and investing strategically below and above the AI frontier.

The conversation also touched on how investors can avoid being blown apart by tech giants like OpenAI or Google. Reum suggested focusing on regulated industries that are slow-moving, making them less attractive for big players. Xu’s approach involves identifying depth markets where hard problems persist despite technological advancements.

Despite the speed and scale of change, both agree that genuine novel ideas still emerge, coexisting with new versions of old companies. The key lies in adaptability: investing firms must have a microscope to focus on day-to-day execution and a telescope to see the shifting landscape ahead.