E43: Innovative venture strategies, Zymergen's implosion, Square acquires Afterpay & more
- Aug 5, 2021
- 1:31:11
- Full Episode
Show Notes: 0:00 Big week for the besties: Friedberg's new raise, Sacks' new fund & more 16:30 Innovative venture strategies: internal mark ups, venture studios, deployment strategies 30:44 Zymergen's implosion: role of diligence, how to make deep tech sustainable, finding frauds 43:26 How personal risk impacts decision making on a grand scale, narratives and fundraising 59:12 Chamath & Jason share Theranos stories, Jason calling out frauds 1:07:36 Financial deplatforming, Square acquires Afterpay, Square's savvy move, fintech's future, Jack Dorsey's unique position of power 1:28:05 New Yung Spielburg banger: "Friedberg Index"
Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg
Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast
Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg
Intro Video Credit: https://twitter.com/TheZachEffect
Referenced in the show: CNBC - Early Google exec got Larry Page’s backing to build a start-up factory focused on saving the planet https://www.cnbc.com/2021/07/30/david-friedbergs-alphabet-backed-production-board-raised-300-million.html
Medium - Announcing Craft III: $1.1 Billion for SaaS and Marketplaces https://medium.com/craft-ventures/announcing-craft-iii-1-1-billion-for-saas-and-marketplaces-c3c34448db17
CNBC - Synthetic biology company Zymergen plunges 68% after saying product revenue will be ‘immaterial’ in 2022, removing CEO https://www.cnbc.com/2021/08/03/zymergen-zy-plunges-68percent-on-forecast-for-immaterial-revenue-in-2022.html
Zymergen - Zymergen Provides Business Update https://www.globenewswire.com/news-release/2021/08/03/2274125/0/en/Zymergen-Provides-Business-Update.html
Reuters - U.S. charges Nikola founder Trevor Milton with lying to investors https://www.reuters.com/business/autos-transportation/us-charges-nikola-founder-trevor-milton-with-lying-investors-2021-07-29
CNBC - Square to buy Australia’s Afterpay in $29 billion deal as ‘buy now, pay later’ trend takes off https://www.cnbc.com/2021/08/02/square-to-buy-australia-fintech-afterpay-amid-buy-now-pay-later-trend.html
Brief Summary
The episode discusses venture capital trends, Zymergen's struggles, and Square's acquisition of Afterpay, emphasizing due diligence and market implications.
Key points
- Guess Who's Not in Italy. The hosts share their current locations, creating a humorous contrast.
- David Sacks' Big Fund Announcement. David Sacks announces closing a massive $1.1 billion fund, doubling his previous rounds.
- Innovative Podcasting with Call-In. The hosts discuss the new podcasting app Call-In, blending social audio and podcasting.
- Zymergen's Downfall. Zymergen's stock plummets 70% after revealing issues with its product pipeline and CEO change.
- Narratives Over Numbers. The VC process often prioritizes compelling stories over solid metrics, risking poor investments.
- The Cost of Belief. Investors often ignore basic diligence, leading to massive losses for employees.
Episode highlights
- Guess Who's Not in ItalyThe hosts share their current locations, creating a humorous contrast.“Everybody's favorite game show, guess who's not in Italy!”1:07Aug 5, 2021
- David Sacks' Big Fund AnnouncementDavid Sacks announces closing a massive $1.1 billion fund, doubling his previous rounds.“Saks, you announced you're closing 1.1 billion dollars with a b in craft's third fund!”12:24Aug 5, 2021
- Innovative Podcasting with Call-InThe hosts discuss the new podcasting app Call-In, blending social audio and podcasting.“It's basically long tail podcasting using social audio as the gateway drug.”16:17Aug 5, 2021
- Zymergen's DownfallZymergen's stock plummets 70% after revealing issues with its product pipeline and CEO change.“Zymergen no longer expects product revenue in 2021.”31:31Aug 5, 2021
- Narratives Over NumbersThe VC process often prioritizes compelling stories over solid metrics, risking poor investments.“The VC process measures a founder's ability to tell narratives, not the correctness of their idea.”54:28Aug 5, 2021
- The Cost of BeliefInvestors often ignore basic diligence, leading to massive losses for employees.“Employees thought Zymergen would be worth much more, but the stock plummeted.”57:39Aug 5, 2021
- The Theranos WarningA famous investor's interest in Theranos raises red flags about due diligence in startups.“How can you join a company without seeing past reception?”1:01:32Aug 5, 2021
- Theranos Fraud PredictionThe speaker expresses strong doubts about Theranos, predicting it to be a total fraud.“My gut tells me this is a total fraud.”1:02:50Aug 5, 2021
