#259: Why Data Is the Stack

The Decade of Data with Tomasz Tunguz

In a recent episode of The Generalist Podcast, Tomasz Tunguz—managing partner at Theory Ventures—made a compelling case that we’ve entered the decade of data. His thesis: data isn’t just a layer in the stack—it is the stack. Whether you’re building with AI, blockchain, or SaaS, the real unlock comes from how you capture, structure, and activate data.

“All of them [our theses] are underpinned by data... AI, machine learning—that’s data. And blockchains, well, that's just a different kind of database.”

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The Data Stack, Visualized

Here’s a simple framework we use to think about how innovation—and value—builds on top of data:

From raw data to insights that move markets, every layer compounds the value of the one beneath.

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Data Businesses Scale Differently

The biggest winners of the last cycle—Snowflake, Databricks, OpenAI, Ethereum—aren’t just great products. They’re scalable systems for managing and monetizing data. The outcomes are outsized because the leverage is built in.

“These systems create really big companies.”

It’s not about hype. It’s about structured information flow—and the operational discipline to make data a source of compounding insight, not just noise.

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Internal Systems = External Advantage

One of the most important takeaways was around internal knowledge systems. Investing isn’t just about picking—it’s about tracking what you’ve seen, how it connects, and where the edge lives.

“The nuances of one wave... if you have them stored... is a huge advantage later on.”

Firms that revisit their market maps and treat research as a compound asset are playing a different game. They're not reacting to trends—they’re recognizing familiar patterns early and building conviction faster.

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The Power of Triangulation

A theme I keep seeing: faster, higher-confidence decisions come from diverse expert inputs. Not more opinions—sharper ones. Think GTM operators evaluating founder narrative. Technical leads digging into infra choices. These aren’t one-off consults—they’re core to the investment loop.

“It gives us a mosaic, a better triangulation of understanding a particular business or market.”

That mosaic matters more than ever, especially in AI and deep tech, where what looks like signal is often just noise dressed up with a demo.

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The Liquidity Stack Is Evolving

Finally, one of the more forward-looking points: crypto may unlock new venues for startup liquidity—especially for software companies currently stuck between late-stage stasis and IPO purgatory.

“Software startups will have a much faster path to IPO as a result of crypto.”

It’s early. But the idea of bridging public market access and crypto-native capital formation isn’t theoretical anymore.

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Bottom Line

If the last decade was about mobile and cloud, this one is about data—structured, leveraged, and compounding.

The firms (and founders) who win won’t just use data—they’ll build systems that let them think with it. Faster pattern recognition. Sharper decision loops. More surface area for insight.

We’re going deeper on this thesis—how it applies to fund managers, firm design, and secondaries strategy—in this week’s subscriber-only memo.

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🛠 Turn Data Into Edge: Tools for Fund Builders

If you’re a fund manager building your next model—or an LP evaluating small fund strategies—our premium toolkit is designed to bring clarity to your process and precision to your decisions.

These are the same internal tools we use when advising funds and underwriting early-stage venture: