How a VC differentiates between a worthy investment and fluff

OpenAI is opening itself up for another funding round that gave the company a $100 billion dollar valuation, according to a report from the Wall Street Journal. Thrive Capital is set to lead the new funding round with an investment of $1 billion. Microsoft (MSFT) currently holds a 49% stake in its profits. Is this AI giant worth another round of investment or is it just looking for more capital because it can? How can a potential investor know the difference?

Tusk Venture Partners Founder And CEO Bradley Tusk joins Market Domination Overtime to give insight into understanding what makes a VC investment solid versus ones that are just fluff, looking for money.

On questioning a potential investment Tusk claims he asks himself: "Is there a regulatory angle here that will give my portfolio companies a real advantage? ...And if the answer is they're kind of like everyone else, then it's really hard to see."

When asked if the founder was a top priority in picking an investment, Tusk says: "Yeah, it's founder. But there also has to be... this is how we're going to make money. This is why people are going to part with their hard earned money to purchase our product, our services, and this is how we're different than everyone else. And if you can show me those two things, it's very likely that I'd be interested in investing."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino