Chamath: USA Needs to Increase the Appetite for Risk Capital, or Face Stagnation 🇺🇸📈

It's hard to make money. It's just so hard. And if you view making money as some derogatory thing and you put a bunch of impediments in the way, the downstream impact is interesting ways to make money will be out of fashion and simple ways of making money will be the only things that people do. The problem is that society doesn't move forward if all you do are simple things. You need people who are willing to put risk capital to buy these lottery tickets. And if you marginalize the upside, you're just going to have exactly that, a stagnant society of marginal things that doesn't move along. If you look, for example, in the last 5-year period in China or Canada, two totally

different political regimes, but they both had the same thing happen, which is the amount of investment capital that went into both of those countries fell off of a cliff for two totally separate reasons. And you can look historically back and we know what this looks like, which is countries stagnate. In the absence of investment in risk capital, not to slag Europe, but part of what Europe got wrong was that compact didn't exist. Too many administrators, too many hall monitors, not enough ability to put risk capital to work and actually get gigantic outcomes. The most important thing we can do on that dimension is to figure out how to have less regulation, have these companies fight it out, and

create the incentives for these smaller businesses to be bought and/or to go public. And unless people fundamentally embrace that idea, we're going to lose. We being America.