Podcast Notes Key Takeaways
- In its current form, venture capital is essentially signing up for 13 years of illiquidity with terrible returns
- Additionally, risk-averse behavior makes for a narrow distribution of incomes and no alpha
- Think in continuums of risk. For small quanta of capital, constantly fire little investments and learn from mistakes
- For bigger investments, create time to think before making decisions.
- Your challenge as an investor is to take a contrarian risk and end up correct
- Ask, “why would smart people not think this is a good deal, and what do I know that they don’t know?” – Reid Hoffman
- Silicon Valley will continue in strength despite COVID or political concerns
- That said, remote work and meetings facilitate investing outside Silicon Valley
- SPACs provide fast time to market, exact price upfront, ability to raise the amount of money you want, and allow you to explain your vision for the future
- Moreover, SPACs add VC capability because it gives founders a chance for a concentrated ownership position and helps grow their network
- Technology is inherently deflationary, we confuse this with stagnation
- Chamath’s goal for the future is to invest in climate change solutions, specifically, carbon sequestration
Chamath Palihapitiya (@chamath), CEO of Social Capital, and Reid Hoffman (@reidhoffman), partner at Greylock, joined Village Global co-founder and partner Ben Casnocha at a special Village Global event.
Angel Island brought together 100+ angel investors for talks from world-class investors, discussions, and opportunities to make new connections.
In this session they discussed:
– What is broken about venture and how to fix it.
– Why Reid is backing new experiments in venture.
– Their thoughts on the solo GP phenomenon.
– How to think about risk when evaluating an investment.
– Whether they’re long or short Silicon Valley.
– Why SPACs are here to stay.
– How to think about diversification in an angel portfolio.
– The state of pricing across different rounds.
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