20VC: Brex Acquired for $5.15BN | a16z Companies are 2/3 AI Revenues | Anthropic Inference Costs Skyrocket | OpenEvidence Raises at $12BN Valuation | The IPO Market: EquipmentShare, Wealthfront and Ethos Insurance - The Twenty Minute VC Recap

Podcast: The Twenty Minute VC

Published: 2026-01-29

Duration: 1 hr 16 min

Guests: R'orio Driscoll, Jason Lamkin

Summary

Brex's acquisition by Capital One for $5.15 billion highlights shifting valuations in fintech, while Anthropic's soaring inference costs reflect broader challenges in AI. OpenEvidence's $12 billion valuation and Andreessen Horowitz's dominance in AI revenue showcase the sector's rapid growth.

What Happened

Brex was acquired by Capital One for $5.15 billion, split between cash and shares, a significant drop from its previous $12 billion valuation. This acquisition positions Capital One more prominently in the fintech sector following its earlier acquisition of Discover.

Anthropic's inference costs have skyrocketed, now 23% higher than anticipated, presenting a challenge similar to the earlier concerns SaaS companies faced with AWS costs. Despite this, Anthropic improved its gross margin from a negative 94% to a positive 40% over the past year.

In the AI sector, Andreessen Horowitz companies now generate two-thirds of private AI revenue, a testament to their strategic investments in leading companies like OpenAI and Databricks. Meanwhile, TSMC's increased capital expenditure underscores a belief in sustained demand for compute resources, with plans to invest $50 billion.

OpenEvidence, an AI-driven decision support leader for medical professionals, raised $12 billion, marking a 12x valuation increase. This reflects significant growth potential, with a $22 billion annual pharmaceutical ad spend potentially transitioning to their business model.

In the IPO market, EquipmentShare's successful debut saw a 33% increase, reaching an $8 billion market cap, while Wealthfront's IPO was considered a disaster, trading down 30-40% from its initial value. Ethos Insurance is also preparing to go public, albeit at a reduced valuation of $1.3 billion.

The episode concludes with Salesforce securing a $5.6 billion contract with the U.S. Army, highlighting the ongoing evolution and challenges within the SaaS industry, including issues like seat contractions and price increases.

Key Insights