SPEAKER_00: socialism is garbage capitalism plus democracy is the best operating system humanity has ever come out with when you and i look at this capitalism democracy as americans we go well

SPEAKER_04: of course you want to live in the country that is at war with itself is fighting it's messy it's sloppy this election the last election the election before that and every election before

SPEAKER_05: bad it's a mess here it feels crazy but the economy keeps beating everything else out there why because

SPEAKER_02: we believe in the fundamental tenet of competition and that running from competition is a mistake and running towards competition is great if you want to have big outcomes you need to support crazy

SPEAKER_08: vibrant competition this week in startups is brought to you by gusto gusto is easy online payroll benefits and hr built for modern small businesses get three months free when you run your first payroll at gusto.com twist fundrise fundrise provides access to diversified portfolios of private real estate to all investors with their industry leading easy to use platform sign up today at fundrise.com twist and dev squad most dev agencies only offer developers why because product management is hard get an entire product team for the cost of one us developer plus 10 off at dev squad.com twist

SPEAKER_02: all right everybody welcome back to this week in startups i'm jason calacanis

SPEAKER_14: he's alex wilhelm we do this three days a week but this week i think we're doing four shows

SPEAKER_16: uh next year it's just gonna be three i promise you alex i hired you for three shows a week 150 shows a year next week or next year three shows a week and hey if we sell out i don't think i'm

SPEAKER_18: adding the fourth show jason before we get into our guests and the rundown i do want to jump on

SPEAKER_19: some breaking news which is news yes breaking news as of like roughly 29 minutes ago as of right now the upcoming president has announced that paul atkins is going to be the next chairman of the securities and exchange commission aka the sec um i don't think anyone really thought that gary ginsler was going to get more time in the chair so not a huge shock but i do know that paul is a i

SPEAKER_22: would say a person that the crypto community is going to love okay i see this is breaking this has all

SPEAKER_04: happened like uh alex says in the last couple minutes i actually have never heard of this person uh so i'm just pulling up a cnbc breaking news story here so here we go paul atkins founder and

SPEAKER_26: chief executive of potomac global partners llc don't know what that is speaks during a bloomberg television interview at the milken institute which has about 17 000 speakers in may of 2017. all right uh and uh currently he's the ceo of potomac global partners i think i'm pronouncing that right um

SPEAKER_27: critically jason he was a former sec commissioner during the bush w era so 2002 to 2008 and you know

SPEAKER_30: i think he's a crypto guy i think that's his that's his background nature so i think this is trump making good on his promise to the bitcoin folks and so forth who threw their support behind him and so if you were in favor of more stringent crypto regulation uh you're not going to get it and if you wanted less of that well good news for you this appears to be your guy so what did trump

SPEAKER_33: say let's uh let's read the trump quote if you can use your best trump voice that would always be appreciated no i've actually never tried to do trump impersonations i'll pass but he does say that he's

SPEAKER_30: you gotta do a lot of a lot of this i don't know i can't do it oh yeah i i wish he was doing

SPEAKER_40: more of this holding on to bars but he's not all right here we go i'm delighted to announce the

SPEAKER_43: nomination they're going to come it's like paul atkins here we go i'm delighted to okay go for it

SPEAKER_45: the nomination of paul atkins didn't uh to be the next chairman of the securities and exchange commission paul is a proven leader for common sense regulations he believes in the promise of robust innovative capital markets that are responsive to the needs of investors i can't do it

SPEAKER_49: and that provide capital to make our economy capital e interesting the best in the world capital w

SPEAKER_02: okay uh he also recognizes that digital assets and other innovations are crucial to making america

SPEAKER_49: greater than ever before oh it's not maga again magebb magebb it's magebb this time uh okay well

SPEAKER_02: there you have it folks uh the nominations are coming in fast and furious we should think about taking trump seriously not literally is the famous quote that peter teal quotes that somebody else said

Chamath Palihapitiya: okay so he said he was going to create a national bitcoin trust he was never going to sell bitcoin um he was going to fire gary gensler um and then he was going to allow more innovation in the space so if we took him literally i he didn't have to fire gary gary gensler resigned right uh so that happened

SPEAKER_56: literally um we'll see about the reserve building a bitcoin reserve i believe he wouldn't sell i would just sell the bitcoin it's that we don't need the money it's only well i mean well i mean you have to

SPEAKER_16: ask yourself like is it going to grow more than six percent a year or whatever our interest rate is on our

SPEAKER_17: debt you would think that asset is going to grow more than six percent a year well if you're michael

SPEAKER_26: sailor you certainly do you think it's 60 yeah so i mean between six and sixty is a big number so anyway if you think it's six percent you keep it and then here we go new leadership i'm excited about

Chamath Palihapitiya: it i felt gary gensler um did a great job on prosecuting and going after people who are criminals

SPEAKER_02: i think he did a bad job of expanding and clearly explaining a roadmap for these new innovations so you know we'll see but you know the mandate is to execute the laws in the previous administration i

SPEAKER_56: think this administration wants to evolve the laws so that's what we're seeing here yeah it's going to

SPEAKER_66: be interesting to see how this actually plays out how much progress they can make but jason i just

SPEAKER_19: checked and in the last hour bitcoin has moved basically not at all so uh i believe in the words of market folks this was priced in even if it is still good news to the crypto fans i think it is

SPEAKER_71: priced in and then the the second thing is there was a shooting uh oh yes you should just at least

SPEAKER_73: mention that here at the top of the program uh united healthcare ceo brian thompson um and i guess united healthcare's insurance group this is other people in this um fatally shot in new york in a targeted attack if you pull up the drudge report they have actual a picture of the guy um and uh

SPEAKER_75: see him and there was just a um press conference uh nypd is asking for people to help find this person suspect is described as using a firearm with a silencer and there it is folks zoom in on that let's do a little speculation uh this happened at 6 45 in the morning at a public event for united health um reunited health shareholders it was a shareholder meeting so it was known he was going to be there therefore this was planned this happened at 6 45 this person is dressed like an assassin you know prepared to you know be on camera and he had an escape he had escape route on a on a city bike that seems like a really that to me means amateur but the silencer says professional

Chamath Palihapitiya: so this is kind of a mixed bag here um based on my knowledge of uh you know mob hits and other type of hits but this is kind of crazy any thoughts i mean speculating is kind of meaningless here but there is an all points bulletin of like hey watch out for this guy because you can't get off the island of manhattan pretty easily because they can lock it down i don't know if they've locked down the

SPEAKER_00: bridges and gotten people on the platforms in every train leaving and buses leaving cars leaving but

SPEAKER_30: the takeaway that i have here is that i think we're going to see a rapid increase in corporate security budgets ah yes and i i think that the era in which ceos uh of companies of any sort of note are walking around and getting bagels or whatever you do as a normal person are probably behind us because you know if this had been and i'm going to try to get the language right here everyone just give me a little space if this had been a tragic uh random shooting i think it would have the same amount of

SPEAKER_18: pain but not the same implications for security of course yes that's a great insight actually and handled

SPEAKER_02: well we the week before in new york or two weeks ago in new york we had this person who was obviously mentally ill who was in their 50s with a knife stab and kill i think three people going from penn station to grand central or something just like went on a stabbing spree and killed three people that one is um easier to reconcile because it's random um still as horrific somebody dying but you can actually process it and make a plan for it you're right here like now in these situations just looking

SPEAKER_75: statistically you have to think there are a small subset of possibilities they're going to look at

SPEAKER_02: i guess chat gpt hey tell me about ceos actually getting trans pretty interesting um it's almost universally there is a layoff at a company um or somebody feels despondent at a company they've been

SPEAKER_75: mistreated there's some conflict at work and the person uh goes postal that's where the term comes from going postal is a postal worker at some point went crazy and shot up the post office so that's a possibility then of course there's like lovers triangle all kinds of other things gambling you know that's the long tail of crazy things that happened when i did my research but my lord uh how terrible and they said the person started shooting him from 20 feet away hit him three times and even did like one shot while he was down uh so that means they wanted him dead and they wanted to make an example of him in some way or a spectacle of it or the person didn't get their health care coverage had

SPEAKER_56: a loved one who didn't you know there's there's that possibility angle i see a bunch of speculation about

SPEAKER_30: online as well so yeah well in this country where we do have several hundred million guns and just be ever just be clear i got my first gun when i was 12 so you know i'm one of the people who has them or had i don't in my current town but i did it in rural oregon where i grew up um you're not going to be able to have a gun-free environment pretty much anywhere unless you're screening every single person and you can't do that on the street so i think that's why we're going to see a a arming of

SPEAKER_82: corporate america to protect their principles so um a tragedy and a mess and a very sad story you

SPEAKER_26: don't like guns this ain't the country for you because it's number two in the rules freedom of speech if you don't like words you don't like guns might i suggest picking another

SPEAKER_95: country england australia there are plenty of countries that don't have any guns or almost no guns and they have different views of you know freedom of speech and slander right like so or you

SPEAKER_96: can move to the northeast where you can't have guns and you have free speech hey there you go well you

SPEAKER_95: know you do have that's a very interesting thing you know when i lived in new york you as a new york city resident you felt like there were no guns and then you went upstate new york to the catskills or whatever and people had guns over their fireplaces and you had this like juxtaposition what's going on here but no handguns in manhattan you're correct and or in san francisco unless you're a famous person and i remember like howard stern and some other famous people were given in new york

Chamath Palihapitiya: the under 100 i believe it was uh carry permits were given to people who were basically celebrities or

SPEAKER_100: had donated that was some scandal back when i was a kid all right you didn't start your company to run payroll did you of course not we all know that gusto is here to help gusto is going to help you run your payroll and handle all your benefits onboarding and hr all in one place the market agrees 300 000 businesses trust gusto today and you can too as your startup scales gusto is going to grow with you you got state and federal taxes handled for your staff around the country gusto does all that and hey maybe it's finally time for you to offer a 401k plan for your team right gusto's got you on that and you might need to get your compliance sorted right well three out of four employers say gusto helps them be government compliant and even better gusto is simple easy to use software so you can focus on what matters building your startup so here's your quick call to action do you want all gusto has to offer with no hidden fees well how about a discount try gusto and get three months free gusto.com twist that's g-u-s-t-o dot com slash twist also hailing from upstate new york no it's not

SPEAKER_19: a guy with a gun over his mental beast though he might it's mike sherbakov from the veteran fund and herbert dwyer the ceo of impact actually herbert's the one who lives in upstate new york i kind of butchered that uh but jason these are our guests for today um from the veteran fund just closed their first fund 21 million dollars that was announced three weeks ago that was final close and we also have herbert dwyer the ceo of impact empeq which just won a hundred thousand dollars jason in the veteran pitch competition that i do believe someone we know took part in ah yes you know welcome to the

Chamath Palihapitiya: program mike and herbert uh great to have you here we uh i know mike and uh he invited me to come

SPEAKER_95: and you know anytime there's any veteran event i try to say yes like it's kind of the top of my list of things to say yes to why well i've got a family full of law enforcement um i know how hard the job

SPEAKER_04: is and uh listen i didn't have to serve and so i always think gosh so much of my success in life and so much think about how much your success is in american is related to the fact that we have a

SPEAKER_95: volunteer military goes out there and defends this country and not only our country democracy around the world and so mike and herbert just right off the bat alex and i thank you for your service and i know that's like a trite thing to say uh or maybe people say it all the time like as a functuary thing that

SPEAKER_26: they have to say i actually sincerely think about this all the time like gosh i really do appreciate

SPEAKER_107: that the sacrifice uh maybe you could talk a little bit about your service each and uh yeah coming on

SPEAKER_108: the program yeah thanks so much jacal and um you know on behalf of the veteran fund and the veteran

SPEAKER_110: community thank you for everything you do i think i remember at founder x you stood up and said that same thing where you'll do anything for veterans and you shared kind of your support and uh it means a lot to us so thank you for being a judge for the pitch comp and and uh you've been incredibly supportive um i'm happy to kick it off and you know similar to what you just shared jason i you know first generation immigrant to this country and ended up your first generation okay there it is yeah yeah grew up in the bay area and um joined the marines at 18 years old so post 9-11 kind of peak of the war june 2003 when we first went into fallujah and i felt like i had a duty to serve this country and i i saw what this country provided for my family what it would provide for me later in entrepreneurship as a founder and now as an investor and i really felt like it was my duty to kind of protect that way of life and so served in the marines came back ended up going to school did the whole startup founder thing had some wins in that world and then realized that if there's an archetype of founder to invest in you talk about this all the time right the three things investors look for is team product market you could say product velocity as well but if we're investing in the earliest stages why not invest in the founder archetype of a military veteran of someone who's gone through what we consider the world's greatest leadership academy that's going to run through walls that is so mission focused so we end up you know we had this idea for the firm three years ago happy to say that initially it was a proof of concept we tried to go out and raise 10 million we ended up closing over double at 21 million and companies like herbert's and others you know we do space cyber defense everything our portfolio companies are absolutely crushing it largely because they have these incredible military veterans on the leadership team that are going to go out and make it happen awesome and i just showed on the screen some

SPEAKER_113: of the portfolio companies but mike if you had to pick your favorite child that's not impact who's

SPEAKER_30: growing the fastest who's the name that we need to have on the show next week like who's the who's

SPEAKER_115: the superstar come on look they're all amazing you love all the all you love all your babies of course i'll tell you that the two crazy breakouts right now that you absolutely need to have on the

SPEAKER_110: show we'll never you already had vatan on you had nelson mills on the team so the underwater submersibles incredible technology what they're doing in submersibles we have dan maggie and chad mccoy who are doing for firestorm unmanned aerial systems agnostic payload systems you can do isr you can do kinetic incredible technology we did their precedency they just closed a series a they're absolutely crushing it got a big hundred million dollar contract another one that i think you'll find fascinating is a company called lone star lunar that landed on the moon earlier this year february of this year and is going back to the moon so um jason i know you're a big fan obviously elon and spacex and all that i'm going to go to my first space launch next year with the team because we're going back so again space cyber defense these are all investments that matter um one last thing i'll say is it's myself and three incredible partners ryan micheletty who jason you know as well justin nahama lisa song sutton all four of us had reached this point in our careers where i would say we'd had successful careers and it was this time to think about what's next what are the things that we care about most if we're going to put time energy and capital what do we care about and i say you know these are investments that matter our tagline is advancing america through venture capital so you know this is the stuff i wake up thinking about i go to sleep thinking about it's what i'll do for you know the next few decades and so just grateful to be doing this and thanks for your support awesome you

SPEAKER_26: know the one question i have for you about the archetypes and then we'll get to herbert and you're a great

Chamath Palihapitiya: company uh that won the competition there are things that you mentioned like hey um discipline

SPEAKER_95: focus running through walls leadership all great recruitment but is there a weakness perhaps in that founders sometimes are rule breakers and they need to do things that maybe are on the margins a little aggressive or improvised so give me the straight dope because i you know i'm using the word improvised in a very specific way because i've done a little research on the military you know i always thought i would have been good in uh you know a cia type you know on the ground roll i was going to go into the fbi um i was like you know there's a lot of improvisation that occurs dare i say rule breaking bending in the field that maybe doesn't get reported on so maybe tell me about

SPEAKER_124: that piece of the puzzle i'm just curious yeah what i'll say is um in the marines we have a tagline

SPEAKER_110: which is adapt and overcome and so i also think you know to be a good leader you have to be a good follower first so there is something to be said about that progression of when you start you're kind of at the bottom of the totem pole and you have to learn to be a good follower you have to understand i know you're big on checklists and sops and understanding that whole thing then eventually you kind of you know earn your way up to this point where now you can start to be a little more flexible you can break some of those rules and in the marines we understand nothing ever goes perfectly according to plan but you have to have contingency plans you have to understand how to adapt and overcome so to your point jason in addition to the leadership resilience and purpose that these veterans have they also have this incredible adaptability and coachability that we look for

Chamath Palihapitiya: in any great founder got it got it all right harbert uh maybe tell us a little bit about the company you can give us a little picture if you like uh you can run us through it however you

SPEAKER_131: want to tee it up here but uh tell us a little bit about the company and your mission yeah sure

SPEAKER_133: uh thank you jason uh it's a pleasure to be here and you know one more term i'll add uh that we

SPEAKER_135: use in the mori course so everybody is typically familiar with separate fidelis or separate five right always faithful we have separate gumby right fastened after our favorite little green

SPEAKER_136: friend which means always flexible and that that is literally you know separate gumpy separate

SPEAKER_133: i love it it's a thing it ask any marine they'll tell you uh and because it's part of our culture

SPEAKER_135: and our ethos too we are rigid we are the marine corps however we also understand that we always have to be flexible because the battle is always changing right and what worked yesterday is probably not going to work right now in this current situation right so it is important and that that that kind of thing marines take into being founders i i've taken that into my company it's it's it's installed in my culture and the people that work on my team we're separate gumby it's important yeah love it but uh

SPEAKER_133: but with that being said so you know really honored to win the pitch competition there were so many

SPEAKER_135: incredible thank you uh there's so many incredible uh men and women uh veterans that just had over 200 of over 200 uh people uh came in and uh it just is just a deep honor just to be to get first place amongst this peer group right because veterans we are a community hundreds of people applied right

SPEAKER_146: and dozens made it to that final round and and you wound up on top so what is uh impact am i

SPEAKER_133: pronouncing correct impact yes uh impact yes e-m-p-e-q that's right and unlike some of the other technologies that you guys have covered in the show uh you know and even earlier you know we

SPEAKER_135: we don't blow things up it's not a super exciting you know technology however we do stop things from blowing up right and so um what we're focused on is really the the equipment that runs our critical infrastructure right it could be anything from planes and automobiles to the buildings that we we you know work and play within right and so that is our hyper focus our passion is instant equipment insights right helping the humans that are interacting with equipment at scale be able to to have very deep information about that piece of equipment or its parts right so we like to say we're connecting the equipment you know with the information you need so you can make better decisions faster right and a great example uh i guess you know to to uh to bring it home for all of us is we all have an appliance in our home we've all had the light bulb go out in the refrigerator or in the oven or something and it's not just the one you go to your basement or your attic and pull one out you know it's like the regular you know edison bulb and plug it in it's a special bulb and in order to find out what that is and typically the bulb is all burned off you can't see anything so you take down the make model and cereal of the piece of uh you know refrigerator or whatever and then you google it right and you're like that's not mine that's not oh that's mine okay now i gotta find out the part spec and then oh here's the light bulb okay now i'm gonna find out where the light bulb is ready copy paste and you go to maybe amazon or ebay or hardware store or whatever right you just wasted 45 minutes to an

SPEAKER_156: hour of your life looking for doing archaeology i call it we got to do the like archaeology of this

SPEAKER_157: water heater i uh i own multiple homes i'm embarrassed to say and i'm trying to sell them all so that i don't have to deal with so many water heaters in my life and then them blowing up so i

SPEAKER_17: know the dividing line you decided that the homes were too many because of the water heaters i thought

SPEAKER_121: it was the property taxes there's the property taxes in california or not pretty or texas i will say um but it is it's just uh it's a known problem ai is positioned to be one of the biggest wealth

SPEAKER_164: creation events in history that's my personal belief that's why i'm working so hard to find great companies to invest in i mean experts predict ai could add over 15 trillion dollars to the global economy by 2030 and you don't need to be an expert to know that ai is moving at a fast clip just open up all the different chat gpt apps and look at how good they're getting but there's a catch most of the ai revolution is being built and funded in private markets meaning it's venture capital it's not public market investors who are getting in early well here's a game changer the fundrise innovation fund it's a

SPEAKER_168: 125 million dollar fund that gives individual investors like you a chance to own shares in some of the most exciting pre-ipo tech companies and this includes some of the big names in ai

SPEAKER_164: the fundrise innovation fund pairs this with one of the lowest investment minimums the venture industry has ever seen leveling the playing field for everyday investors we all know that a lot of the value is created in the private markets not the public market so getting early with the fundrise innovation fund to go to fundrise.com twist to learn more that's fundrise.com twist carefully consider the investment material before investing including objectives risks charges and expenses

SPEAKER_02: this and other information can be found in the innovations funds prospectus at fundrise.com innovation this is a paid advertisement and so you have people take out a smartphone take pictures of all the

SPEAKER_04: equipment and do a really quick or a fast site survey to kick this off you know this is not just for

SPEAKER_02: military people this could be for any company correct yes that is correct we are b2b uh currently uh we

SPEAKER_135: do have uh military customers um our most notable is the pentagon uh headquarters air force is is actually a paying customer so very proud of that uh but yeah i mean if you picture this at scale imagine your job being to look for light bulb types within refrigerators and you're doing maybe operate with hundreds or thousands of pieces of equipment or parts is part of your job and you're typically a six-figure engineer or field analyst or something right you're wasting a lot of time of just doing manual stuff at 87 this is this is a real number 87 of the critical infrastructure marketplace that has men and women at scale working with parts and equipment every day uh 87 is still using pen and an analog capture device like a paper

SPEAKER_172: or an ncr form or something oh my lord today so that's and now you have ai so when you're taking

SPEAKER_95: pictures like this you know it's silly to say but you're in these old legacy systems somebody would write down the serial number the model number somebody would then type it into a legacy system or maybe into a google sheet and have like a local inventory of stuff it was a disaster uh and now you have ai who reads the labels does ocr and makes sense of it all and you can do this at a fraction of the cost in a fraction of the time and just charge a sas fee per number of items per number of users in the system

SPEAKER_135: how do you price it okay that's a great question so uh we we went to market with a per seat pricing model we're like this is how everybody does sass and this is what we're supposed to do right get in line and we start talking to big customers so i mean our customers include joss control siemens and many others uh worldwide and you know they first out of the game like yeah we don't really we have a hard time with that that's not really how we operate we operate you know kind of more of a uh you know cost the cogs accounting model or cost could sold uh can you you know work with your pricing so it kind of fits into that it makes makes sense to how we we we expend right so

SPEAKER_181: just charge us a license per year yeah and it's just it's it's it's use as much as you want let

SPEAKER_169: the ai run as much as it needs to to do its job for you so it's highly scalable up and it's highly

SPEAKER_77: scalable uh down herbert does that does that impact your gross margins at all because i love

SPEAKER_113: the consumer the customer like friendliness of an all-you-can-eat price tag but ai is famously expensive so i'm curious if if that does impact your overall gross margin profile you know it's

SPEAKER_169: a great question uh it actually we did a case study on this and uh we looked at kind of doing

SPEAKER_135: it the traditional way and versus how much it actually costs to expand into an account right the salesperson has to not to sell the first license it keeps on all the licenses right and they kind of land expand that where the other side of this is you just sell once and it's just you know whoever can come and eat that's fine but then we also looked at the actual cost of running the technology in the back end and it actually the margins increased uh to this new uh new model

SPEAKER_190: uh so not only did you save money on your sales and market in line item but you also save money on

SPEAKER_192: gross gross margin right and we also reduce the barrier of of sales friction right because we're

SPEAKER_135: aligned with how the customer wants to buy right will this be how we're going to go to market for everybody eventually no we're going to have to work our way back and include some sort of uh traditional pricing model just because you know we'll start to automate people to be able to get out of the platform without a human being involved and i think that we'll move in that general area but right now

SPEAKER_194: today this is what's being self-serve people being able to pay like some entry fee for a certain amount

Chamath Palihapitiya: of inventory a certain number of users you'll eventually get to but starting with you know big companies and whales not a bad idea either of these strategies can work what's most important is that you you know define an ideal customer profile as we say in the business in icp and say hey this is who we're going to go after first and you have some rationale behind that hey we're going to go after this group

SPEAKER_95: first because they they desperately need a solution they have a budget for the solution they see the value in it um and um you know they're not so large that it's going to take three years to get through their

Chamath Palihapitiya: process but they're not so small that they don't need the product and that's where you know this great art of go to market comes into play did you define an icp i know you're in early stages here but is

SPEAKER_95: there an icp that that you've settled on or do you have two or three you're experimenting with yeah we do

SPEAKER_135: have two or three that we're experimenting with in regards to uh field analysts right so again this goes back to a male female kind of field engineer type that is highly analytical that's dealing with lots of pieces of equipment or parts as part of their job they need deep information about what they're looking at in front of them right the refrigerator or the car the saleable the counterfeit part the electronic you know part of the heating and cooling system and they're they're there like i know that's a chiller i know that's a you know a printed circuit board but what is that black spec on there does that belong there i don't know right take a picture boom oh oh it doesn't belong there i'm glad i took a picture with fx technology because i almost put in my airplane and put into the sky yeah that is a

SPEAKER_26: whole other uh reason to use stuff like this is to know the provenance um fancy way of saying where it came from uh and making sure you don't have counterfeit parts amazing book by the way alex by michael creighton called airframe which is about the counterfeit it's basically you know one of

SPEAKER_95: his great books he got into like why planes fall out of the sky and found out that there's all these pain planes that are maintained sub optimally and when you get to the uh developing world formerly known

Chamath Palihapitiya: as the third world now called frontier markets and emerging markets i think is the proper term uh yeah people might want to save money on parts and they use third party aka counterfeit parts man you're

SPEAKER_30: giving spirit a lot of props here uh and other discount discount carriers i i want to say though

SPEAKER_113: i'm not shocked that herbert won this competition because we have this um a little bit of information from him about his financial performance jason and i believe that you would call this number tasty

SPEAKER_202: yeah 300 percent uh growth in 2024 uh to looks like 1.4 million in revenue is your your estimate

SPEAKER_02: there and so that means you triple you're gonna triple revenue year over year that's actually like

SPEAKER_207: uh we just found out that we're uh yeah we will be over that issue nice and so there is a term

SPEAKER_208: in sas or just in the industry triple triple triple double double basically means in the early stages somebody starts with 100k in revenue you know that first to second year they get to 500k in revenue second to third year 500 to 1.5 maybe two then they get to like six and then it's harder to get from 6 to 18 obviously you know it's a bigger number and so maybe they go 6 to 12 or 6 to 14 or you know even 6 to 10 things slow down a little bit they have to you know maybe some growing pains here and there headwinds competitors whatever it is but you start to pattern match when you're going for the series a but you're a seed stage company total amount raised for the company is so far uh so 2.5 in

SPEAKER_135: equity and uh convertible to venture uh we haven't had a vc round we're just uh that's what this pitch competition essentially kicked off is a four million dollar seed uh but we have another million dollars

SPEAKER_184: in uh in grant uh instruments mostly from uh new york state nyserda your state research energy

SPEAKER_202: development authority 2.5 million to get to 1.4 million in revenue it's pretty good uh use of

SPEAKER_77: capital so far yeah and then also you said that you have a match i think with the formulae that you're raising so it's actually eight is that correct herbert yeah so what's great about uh dual

SPEAKER_135: use companies right and these are companies that serve a commercial purpose and a military purpose i can tell you the military wants that they don't want they don't want the startup to be fully relying on military funding because that's it's like watching paint dry sometimes so uh with that being said uh there are programs within the federal government that enable you to accelerate uh and provide typically a one-to-one match uh for for highly targeted technologies uh so we have right now two programs that were uh will be applying to early part of 2025 that is a one-to-one match on that four million dollar uh equity so for every dollar we raise an equity up to four million we'll get

SPEAKER_217: a up to four million dollar match from two programs in the federal government amazing awesome listen this

SPEAKER_212: has been great uh what's the website if people want to go learn more about your solution herbert empeq.co empeq.co got it i'm assuming you're herbert at empeq.co perfect mike if people want to learn

Chamath Palihapitiya: more about the veteran fund uh either potentially as an lp down the road i'm not sure if the phone's open or not nor do i want you to say because you'll be soliciting so if they wanted to potentially participate as an lp down the road i'll frame it like that or uh if they want to they were seeking

SPEAKER_222: funding uh how can they get in touch with you yeah thanks jacob we'll be back to market next year so

SPEAKER_110: not fundraising not general solicitation uh and we'll go out for we're targeting a hundred cap on that one uh simple veteran dot fund mike at veteran dot fund super easy and what one quick thing jason i'll say is it was a hundred k pitch comp that we did but because of herbert and empeq we were really impressed first of all we'd love to co-invest with you on this we're bumping our investment up it'll be a 250 minimum probably closer to 300 and what herbert just said is a very important takeaway i think for all founders and investors listening to this is this whole dual use technology we love companies that have strong commercial traction like herbert's and then go out and get the government as a customer they lock in that non-dilutive capital in the form of cibber and sitters and then they get fun matching through tac-fi strap-fi and other vehicles just define those real quick sbir small business innovation research it's essentially uh r d and product development non-dilutive funding the government provides they have billions of dollars available to

SPEAKER_00: companies uh to get into the government amazing all right well done and uh we'll drop you guys off and we'll see you next time keep us uh informed of your progress and i look forward to uh the next

SPEAKER_228: pitch competition thanks so much brother go army all right thanks guys all right oh god i just got

SPEAKER_233: two marines down here okay guys i have to get in the uh the the army the army elbow in there

SPEAKER_100: absolutely for the family all right take a second and picture the ultimate all-star team for your startup okay you got that mental image maybe the avengers maybe even x-men wolverine cyclops pick your favorite superhero team and let's be realistic until you've raised your series a or your series b you might need some help building that dream team and finding top-tier talent managing all the timelines you've got and maintaining quality it's a big lift for all founders i mean scouting for that elusive 10x developer that's going to eat all your time and that's where dev squad comes in think of them as like professor x you know they they know where to find those exceptional mutant developers who are 10x devs and dev squad offers a complete product team from latin america you're going to get two to six full stack developers a technical product manager and specialists in case you need them like product strategy or ui and ux design devops and of course quality assurance all for 75 percent less than a us-based team all for 75 percent less than a us-based team while being on your same time zone which is really important there's no long-term commitment it's just seamless collaboration so if you want a gsd if you want to get stuff done and you're ready to squad up head to devsquad.com twist for 10 off your first engagement that's devsquad.com twist and transform your startup with the all-star

SPEAKER_239: team it deserves alex i just wanted to also inform the audience that we're doing our launch

SPEAKER_02: cloud kitchens incubator again uh all of you know my friend diego and travis formerly of uber created cloud kitchens and they are doing an incubator with us it's a 14-week program for food and tech entrepreneurs if you want to break into the ghost kitchen space and you think that you can create the next great food brand this is the way to do it if you know alex a lot of people will start by doing a pop-up or being like a chef for people maybe doing parties right yeah absolutely and then you build up to like uh maybe a food truck and a food truck that might cost you again and setting up your own catering business and might cost you zero dollars might cost you ten thousand dollars setting up a food truck and going into business there it's like low hundreds of thousands of dollars uh setting up a restaurant or like let's say you had a really cheap storefront like i think a minimum

SPEAKER_75: million dollars two million dollars proper restaurant you know you start getting to three

SPEAKER_02: four five million dollar investment and the problem with that is you don't know if it's going to work or not right there's no mvp of restaurants no well now there is called the ghost kitchen when you get a ghost kitchen and we're investors in cloud kitchens our fund is it's like um you know a cloud kitchen costs you low thousands of dollars a month and you're up and running and you're plugged into immediately an incredibly high volume infrastructure called uh food delivery uber eats doordash etc so the cloud kitchens uh are run you know to make food for those and what we're doing in this accelerator and incubator is just getting you plugged into all that starting you on third base kitchen economics the operations how to do marketing and branding inside of these apps it's completely different than doing a restaurant uh oh right that's actually a really good point it's an entirely

SPEAKER_163: different like marketing space yeah totally different you know should you pay for ads on ubereats

SPEAKER_02: and doordash to move up in the rankings uh what market should you launch in what should you be your second and third market you know there's a big um issue like hey if you're got something great out in

SPEAKER_73: brooklyn is your next best idea to be further into brooklyn brooklyn's a pretty big place or to go to

SPEAKER_06: queens and manhattan or is it to go to philly and boston or rhode island you know how do you you know deploy that second third fourth you know cloud kitchen and that's the magic of i think this new space also delivery food is different than in a restaurant you can do a souffle in a restaurant you can do a little ice cream tasting can you do ice cream and souffle you know delivery i don't know

SPEAKER_243: it's a good question maybe you can figure it out mate if you can figure that out if you can bring me a souffle delivered that's actually good my god i'll give you all my money but there there i can tell

SPEAKER_73: you i know boba and ice cream is getting delivered and it's getting delivered in a certain way a certain radius so anyway these are all the technical things uh we're on our second class we had great companies come to the first it's an experiment i like to do little experiments you can apply at ck.launch.co we

SPEAKER_75: put money into each company we have a little fund a micro fund uh it's like a million or two million

SPEAKER_95: dollar fund and uh we give a little bit of money a bunch of mentorship a bunch of networking so if you want to come to lick the launch cloud kitchens incubator see that we we took the uh letters lcki and we just call it like internally uh go to ck.launch.co i i love that and i'm just gonna say it again i've

SPEAKER_30: i've been watching a new bakery slash coffee shop open a couple blocks from where i live keeping it slightly vague and you know i i met the owner and the proprietor and the entrepreneur behind it before

SPEAKER_22: they opened and i was just so hoping that the care and the effort that will lead put into the place was going to get paid off and now every time i go there there's a line out the door

SPEAKER_19: and i'm like i'm like how dare you guys eat my croissants that i was going to eat get out i live here anyways but there was no mvp to your point so when he built this place brown b coffee he didn't know it was literally a gamble with i think his life savings right yes brutal you're basically and

SPEAKER_16: then if you it doesn't work out hey you gotta go maybe you gotta go drive uber eats and doordash to to pay for the bills and there's all this modern technology stack i've learned a lot there you

Chamath Palihapitiya: know you can use like ubereats drivers and or uber drivers or even doordash drivers as like an api

SPEAKER_02: service so a lot of these folks are trying to convert you to directly going to their website directly ordering from them to get rid of the fees that uber eats or doordash charge so there's a whole bunch of ideas here about how do you build direct relationships with your top customers you know what are high margin things that you can include in it so you know i've been brainstorming with folks i'm like how come you don't have like anything for the whale in the system i'm always wondering like where's the peking duck where's the you know ribeye for two you know you should have a hundred dollar item every menu and i when's the last time you saw a hundred dollar item on uh a to-go menu

SPEAKER_257: well never but i have what feels like a hundred dollars to have a burrito brought to my house

SPEAKER_258: precisely so exactly and so you should be thinking about that and i was talking to one of the

SPEAKER_06: companies i was like you know this is really great it'd be great for breakfast the next day like um when you sell in why don't you put kids because i was literally ordering and i said why don't you offer something for the kids school lunch or breakfast the next day when you get into the private chef space um you know a lot of what private chefs do is they serve you dinner one

SPEAKER_73: night as you know alex and then they will prepare for you breakfast for the next two days lunch for the kids for the next three days and then maybe a dinner you cook yourself tomorrow you know then put the salmon in the tray and let you bake it um so a lot of these i don't know chef services do that yeah

SPEAKER_22: i do not have private chef money uh i have i have used those um there's a local meal service that does something very similar that essentially it was a one or two woman shop and they would you would or sign up for some number of meals per week and they would pre-make like half of it and then you kind of finish it and we loved that but then our kids just were more picky than what the offerings for us we had to drop it but i would love to have a private chef what are those costs uh there was

Chamath Palihapitiya: just a story on it in silicon valley in silicon valley it's 150 to 300k you're all in comp for the chefs and there is a big competition amongst elite people to be able to say my chef previously worked at x y and z uh or z and so i have been to people's homes and hey this person you know worked at quince this person worked at this michelin store place whatever it is and uh it's a little bit of bragging right it's like a little fancy like oh yes our chef at home worked at quince you know a michelin store place in the city um so and then you got food on top of that obviously so you know you would be talking about spending a thousand dollars a day basically on something like this i mean it is rarefied air uh it's one percenter territory but there are other ones that are doing what you're sort of talking about or the one i'm talking about so here in austin i was looking at it because i have some friends who have it who are affluent but not 0.01 percenters with like and don't want a full-time chef and those

SPEAKER_95: services and i i've looked at these because there's like marketplaces that have tried to come out

Chamath Palihapitiya: to do this and i think there might be a marketplace business for it of hey you pay 500 bucks for a chef to come for a day plus the cost of the food let's say 300 bucks so for 800 bucks they make the meals for four days so they serve you dinner that night but they come early they stay a little bit later so you get like this nice you know monday night tuesday night wednesday night meal but then they prepare for you hey you got two kids here's their breakfast for the next couple days you know we like to make um these egg bites that you get at starbucks we make those at the

SPEAKER_75: house because we all love them and so we'll make those in advance when i say we i mean my wife and i will make them um and those are great you know grab and go kind of options and they'll do that kind of thing right or maybe make lunches or maybe make two dinners for you and you know here's your salmon with pesto on it here's your baked lasagna you know pop it in the oven easy breezy so there's a lot of opportunities there and i think this could be a very interesting business what i love about the

SPEAKER_06: cloud kitchens model is you know you you can do these with two people and you can pop it up for

SPEAKER_73: 25k or less if you lose the 25k it's not the end of the world and if you lose our 25 or 50k it's certainly not the end of the world you got to take a shot and so my advice is if you are somebody working at a kitchen maybe you're a sous chef maybe you work in the front of the house or maybe you and your friend work front and back of the house and you got an idea you know hey these three menu items are

SPEAKER_06: we should make a caesar salad branded restaurant and we're just going to do caesar salads yeah but it's caesar salad with three or four different things on it's like you know caesar's

SPEAKER_73: palace uh make some pun about caesar salad palace uh caesar salad palace actually that's pretty good

SPEAKER_06: can you and this is the kind of riffing you can do caesar salad palace would be a great idea you know everybody loves good caesar and you have three or four different options there you have two or three different types of anchovies you got two and you can get a caesar wrap you'd have it as a wrap you'd have it as a salad you can get a caesar burger maybe there's all kinds of like interesting things

SPEAKER_22: you can do in that space and people might want to try it there you go people don't try to pitch that now for the incubator i'm going to be really disappointed and by the way if you do make caesar salad palace uh we'll have you on the show what's your idea alex give me your best idea what's your

SPEAKER_96: favorite dish of the moment what's something you keep going back to what's your favorite dish let's

SPEAKER_30: do a little riff right here i'm not gonna lie it's it's not as adventurous as i wish it was to share on the show but it's a it's a sandwich called the vermontster uh there's a place uh near where i live

SPEAKER_19: called amy's it's open five days a week and the vermontster is a wrap that has sausage and uh scrambled eggs in it it's kind of like a breakfast burrito but critically it has this maple aioli that

SPEAKER_262: goes through it and so it's like hot mapley sweet but salty it's the best breakfast thing i've ever

Chamath Palihapitiya: eaten and i've purchased hundreds of them the breakfast wrap shop there we go dude and so you know doing a wrap shop is such a good idea and making it 24 hours a day because i bet you would eat that for lunch oh yeah and i i'd love the breakfast all day when i see breakfast all day on the menu i'm like a french person you know they like to have an omelet at dinner sometimes you ever see that go to a bistro and they're like you go to balthazar they still got the 18 omelet on the menu i love that uh i'm more than willing to have an omelet for dinner i think it's quite sophisticated

SPEAKER_95: so this could be like a really good one the breakfast wrap shop 24 hours a day absolutely

SPEAKER_262: fantastic idea why did we do this week in startups when we could just pivot the whole brand and do

SPEAKER_26: this week in food this week in food we just talk about food the whole show uh so anyway if you got great ideas ck.launch.co or if you go to launch.co it should be in the menu ck.launch.co so uh let's

SPEAKER_95: talk about the twist 500 the top 500 private companies in a database selected editorially

Chamath Palihapitiya: by our research team and talked about here on the podcast every episode yes that's what we're doing we've got a hundred of them or so and we're trying to get to 250 by the end of the year yep go to twist 500.com to see this database the idea is people always ask me one of the top private companies after spacex and stripe and all the ones you know that are in public yet and we want to help people sort that and so we are slowly but surely getting there yes and uh jason tasked us with putting

SPEAKER_79: together a neat little graphic to show off today's company that we're going to add and jason this is

SPEAKER_19: a company that i would have sworn we had on but i had not added and so i want everyone to say hello to our dear friends over at everyone's favorite emoji based startup hugging face um jason really brief just in a couple of words it hosts ai models it sells some ai compute and also hosts ai community so it's a bit more than just a repository and on the business model front two-part mostly it's sas

SPEAKER_22: they also do have some on-demand compute but i wasn't able to figure out from the outside how much of that their business is predicated on that um but certainly amongst the ai companies this is one

SPEAKER_113: that i think has probably top five mind share out there today uh a lot of people are talking about

Chamath Palihapitiya: hugging your face because if you want to track what's happening on going on in the ai open source model with open source models you just go there and you can actually use them you can fire up instances of them and um yeah it's a backed by lux capital um josh shout out to josh beta works my

SPEAKER_12: friend john borthwick uh salesforce ventures i guess has gotten in there in addition i'm not sure which

SPEAKER_253: firm that is i may know them uh sales force ventures led one of the the later rounds according to quench

SPEAKER_22: base so i threw them in but lux capital has i if memory serves led several different rounds in this company so if hugging face does well josh will be able to afford his own private chef in new york

SPEAKER_291: but the raise 395 million dollars that's a big number that's a lot of money i think that goes to

SPEAKER_113: show jason uh how active the ai market is in a positive sense because yes this is not a foundation model company this is not a neo cloud this is something that sits in between them but has become

SPEAKER_107: the the github of ai i want to say yes and github obviously has their own hosted ai models and github is was purchased by microsoft right it's owned by microsoft there's a really savvy move uh because microsoft loves developers developers developers you can throw in the graphic of steve barmer clapping

SPEAKER_75: and yelling developer developer developers in post if you don't know what that mean uh and the other competitors kaggle obviously k-a-g-g-l-e which we should put into the twist 500 um if they pass the bar and then we would have them in the database as competitors so yes we should

SPEAKER_73: in the database i don't know if we have competitors as a field but let's make a note to add that to the field hugging face welcome to the twist of 500 we're going to do a series of events next year by the

SPEAKER_75: way twist 500 uh just so alex and i can do live events together so um we will be booking like a day for the robotics companies here in austin or maybe boston uh wherever like some of the top ones

SPEAKER_73: are and it's not going to really have an agenda i'm not really doing it to make money i'm doing it because i'm passionate about tech it'll make great content and i'll get to meet all these amazing founders in a very efficient fashion they get to meet each other yeah so i'm trying to think of a format for an event i was thinking of having i usually like single track events i was thinking of maybe making this a multi-track event where there's maybe five tracks going on in five rooms each room has 100 200 seats something like that and then one track for sas one track for robotics one for ai it's one for marketplaces etc uh fine fintech and consumer and my idea is 30 minutes you just pitch your company as best you can for 15 20 minutes you take two or three questions from the audience yeah and then you got a nice like hey here's our company here's why it exists and then at the end you know those groups get to all hang out together and have uh dinner well pretty simple format right so we just have 10 of them what would you do if you did two let's see nine twelve and then two to five is three plus three hours so six hours half hour each 12 companies yeah 12 per day per stage maybe five stages you get 60 companies a day you do it for two days you get 120 so you get

SPEAKER_113: one out of four yeah well are you cool i think it'd be a lot of fun especially because uh what i've learned about how you host events is there's usually a poker table within about a one mile radius of the event and so that means that i can go collect venture capital money via third parties i stayed

SPEAKER_49: through the last time no you didn't uh and i didn't stake you i offered to stake you okay how

SPEAKER_186: did you do did you wind up up or down beyond i was up like 150 or something relatively modest that's

SPEAKER_30: fine yeah but no i mean the reason why i played the lowest out of shape uh my poker game has fallen off because i have um i have small children i do want to add one more thing to the hugging face because

SPEAKER_22: i was looking into them today i i've known them i you know we all followed you there on twitter great company i use it love it but i didn't know that it actually started off as a chatbot and then

SPEAKER_113: they open source either they open source their own model and then they began to open source more models and then it kind of grew from there but i love seeing people come together build something

SPEAKER_18: notice something else and then go hard into it and i i give this speech to people it's so interesting

SPEAKER_02: that you have this observation it's not necessarily a pivot what i call it is keeping your peripheral vision open so when i have a talk with founders like hey you want to have blinders on you're staying super focused got your ideal customer profile as we've talked about with countless founders you know you're really trying to solve an acute problem uh as paul graham would call a hair on fire problem for people that's what these companies do you know startups you build the best team you can to build a product that solves a really hard problem for customers if you do that things tend to work out if you break that model not a great team not a great product that doesn't solve a problem you're going to have problems so keep your peripheral vision open and sometimes you're like on an adventure and

SPEAKER_241: you see something off the side uh christopher combless comes to mind i always talk about christopher

SPEAKER_75: columbus going you know trying to find a new route to uh you know the new spice route or whatever he was

SPEAKER_02: looking for a new way to get spices and he wound up hitting north north america here we go boom uh so keep your peripheral vision open hugging face did it let's get the founder of hugging face on the show

SPEAKER_73: here we should have him on this week in startups and this would be i think the next piece of this twist 500 is we announce them we walk through it boom then we have them on so i'm currently trying to get

SPEAKER_30: clem to come on uh because he dropped some very interesting 2025 ai predictions and then he graded

SPEAKER_22: his 2024 predictions i love the public accountability there saying what he got right and wrong and he was mostly right so i think he's probably the person to talk to at the end of the year as we look forward so that is on the list um uh if hogan you face pr team if you see this i i have emailed you so please

SPEAKER_113: hit me back um and jason to close this out today uh can i can i show you something that i think you're going to find very interesting because i want absolutely i want to talk about europe again

SPEAKER_79: this is one of my um something i've been thinking a lot about uh did you see the report that came out in september from the eu about why its economy isn't growing as much it was the droggy report

SPEAKER_00: i didn't but it's no news uh having been in technology and business since the early 90s which

Chamath Palihapitiya: means i've been doing it for 30 years yep i have been meeting founders in europe all the time and i hear them complaining lamenting rules regs and even like a culture that doesn't celebrate entrepreneurship dare i say reckless entrepreneurship at its best yeah risk-taking reckless abandon pursuing your dream

SPEAKER_95: it's just it's looked at differently there um and that that's actually part of the complaint too is that you just feel unsupported you feel like people look down on you uh as opposed to america they

Chamath Palihapitiya: come to america they're like everybody i told everybody i have a startup they all give me a high five i tell them when i'm in france or europe germany wherever i have a startup people look at me and they think i'm trying to pull one over on people i'm running a rack well in the report

SPEAKER_79: highlighted a result of what you're describing which is that and i'm quoting from um a speech about

SPEAKER_22: the report in fact there is no eu company with a market capitalization of over a hundred billion euros that has been set up from scratch in the last 50 years all six us companies with valuations above one trillion euros have been created in that time period and that is indicative of of the gap but

SPEAKER_19: that's old news people have talked about that what's new is that um a guy from mit andrew mcafee

SPEAKER_18: took the same idea jason he said what if we lowered the threshold to 10 billion dollars not a hundred billion okay jack of corn as opposed to a centurion got it and these would be public from scratch es us and eu companies so they have to make it through the threshold but here is what well so you have

Chamath Palihapitiya: clarna you have uh spotify you have clash of clans i'm wondering if any of these i know obviously spotify went way past the 10 billion mark yeah but i mean we're you're just a wide window this since the

SPEAKER_30: 70s or 80s this is this is 50 years so sap a multi 400 billion dollar company yes is actually 52 years old so it just missed this chart but this is on screen a a look at the different companies and their

SPEAKER_17: uh relative market caps by bubble size um and so we see a lot of green bubbles the giant ones being

Chamath Palihapitiya: the magnificent seven amazon google microsoft apple nvidia etc uh meta and that's wild you see the eu

SPEAKER_79: this is interesting wow what are the purples the purples of the 10 billion uh the no the the the

SPEAKER_22: purples are the other companies so green is tech uh blue is just like you know blackstone home depot

SPEAKER_00: uber so we're living in a tech world so what's what are the two or three largest blue circles in america

SPEAKER_324: i'm curious uh tesla united health t-mobile costco uh vertex uh wait a second i would consider tesla and

SPEAKER_95: t-mobile tech yeah so i mean this speaks to a number of things american exceptionalism being the primary one um and you know the culture of american exceptionalism we are a young country we're a

SPEAKER_02: hungry country uh i think other countries maybe are not as hungry um because they're older and uh when i

SPEAKER_06: meet families there they may be into the country the culture might be into capital preservation and

SPEAKER_02: so when i was talking to some of the people from italy trying to do economic development there or england or france they would often tell me that the differences this is not my opinion this is what it was told to me is that you know families that own businesses there do not participate the legacy companies let's say uh the old money does not participate in things like venture capital now

SPEAKER_73: when i came here to texas and i was talking to a bunch of venture capitalists and people who run spvs here they were telling me the oil money the old money here loves to get in on tech deals loves to do an spv loves to drop a half million a million five million into some new technology i'm like who are these people like they don't want you to know who they are nobody knows who they are they're just rich people and they really want to get in on the action and that is another part of it so the high order bit for me is you know the american exceptionalism a young country but then there's also capital formation in capital markets and regulation and here we talk about regulation all the time we talked about the wrath of lena khan for the last four years we talked about accredited investor regulations and in this show we talked about gary gatzler not creating a path forward getting fired essentially um getting a lot of you know criticism some of it's rightful some of it's not um and you know us

SPEAKER_06: saying you know what let's replace him and i don't know what you think but here's my question for you what percentage of young men coming out for trump do you think could have had to do with the pro crypto stance and then what percentage of the money he raised came from pro crypto you know uh individuals because crypto is not a niche anymore in america or south korea there's a large contingent of people low double digit percentage who are either holders holders or fans of this it's not niche anymore so when you look at the election and getting to denmark to question what percentage of the voting populace

SPEAKER_73: do you think might have voted with that as one of their top issues not the top but it could be the top top issues and then what percentage of the money you think sloshing around is crypto related well

SPEAKER_30: the second one's larger than the first if you look at you know that number compared to the the whole

SPEAKER_22: i don't think the number of people whose votes changed strictly due to crypto was that large in terms of a percentage of the electorate comma but in the us where trump won by about a point and a half one point seven percent whatever the latest numbers of the vote tally a couple of points is a lot and that's why i think people talk a lot about this now on the money side i forget her name is it molly white uh ran a very interesting site looking through all the crypto packs and so forth and

SPEAKER_19: and the answer was hundreds of millions of dollars if i recall correctly and so i think that what crypto did was they uh decided that they were going to get very involved they backed if i recall several hundred different candidates mostly republicans some democrats and they made this an issue that they then won i mean we started off the show with the new head of the sec who is very much aligned with the crypto industry they absolutely won so i think it was a couple points it was a whole hell of a lot of money but the roi jason on every dollar that was spent in these crypto super packs i believe is going

SPEAKER_335: to be very high probably higher than investing in your funds investing in crypto yeah i mean it was a

SPEAKER_95: three percent wind for trump he had three percent more of the overall voting electorate i believe uh there's about 150 million votes he won by two and a half million two and a half million is roughly two three percent of the overall voting so if one percent of those were crypto you know now you're down to a one percent you know coin toss as opposed to a two and a half clear victory um so what was the jervison

SPEAKER_341: tweet did you have a similar observation to me bring it back up jervison pointed out

SPEAKER_22: tiny balls well done steve i thought you were gonna like that um he says that he agrees with you that tesla should be scooted into the green category but the reason why i wanted to bring up jervison is not that his view is agreeing with you that tesla is a tech company versus a non-tech company yeah but it was this stat right here when we look at companies that are born from scratch and in public and now are worth more than 10 billion dollars in the us versus the eu the us wins by 70x and that is bad for europe like i you it's not good for their economy their dynamism their ability to

SPEAKER_19: you know yes with china like a bunch of people that we are nationally politically and militarily

SPEAKER_18: aligned with are really struggling financially and here's what you can take from this okay if you are

Chamath Palihapitiya: i'm just gonna may i be based based cal can base cal come out for a moment all right let's do it

SPEAKER_00: okay it's a base gal socialism is garbage capitalism plus democracy is the best operating system humanity has ever come out with to date flawed it's got all kinds of criticisms you can make socialism is the road

SPEAKER_229: communism is the road to slow economic growth and so we get to pick as human beings on planet earth

SPEAKER_95: in some cases if you want to live in which of these pros and cons when you and i look at this capitalism

SPEAKER_02: democracy as american do we go well of course you want to live in the country

SPEAKER_04: that is at war with itself is fighting it's messy it's sloppy this election the last election election

SPEAKER_05: before that and every election before that it's a mess here it feels crazy but the economy keeps beating

SPEAKER_06: everything else out there why because we believe in the fundamental tenet competition and that running from competition is a mistake and running towards competition is great now in competition you have winners and losers and when you have a vibrant competition that is rabid i think i said reckless before you know that you can pursue with reckless abandon and i brought it up when we interviewed our

SPEAKER_95: veterans um on today's show and so and i'm not sure where that's going to be placed here but i did talk about hey did the military folks uh do they have that like sort of improvising bend the rules kind of

SPEAKER_04: thing if you want to have big outcomes you need to support crazy vibrant competition if you want everybody to live in a tighter tighter strata what you're asking for is socialism and then you know socialism sometimes leads to communism there's dictatorships ending you know what we have in a vibrant capitalist society you have people buying elections you have people using money as influence you have these other set of problems that we have to contend with here where these super packs as we're talking about with crypto could have bought quote unquote bought one or two percent electorate is that a problem uh it feels unfair in some ways but in some ways it feels very fair because they have collectively said we're going to place our resources aka money on influencing uh our government to make rules that go in favor of more innovation could it go the other way and

SPEAKER_241: the rich get richer yes the rich get richer in a competition that's how it works the high performers get more money what do you think happens with actors you think george clooney and brad pitt get paid

SPEAKER_04: less than people who aren't as good looking and aren't as good at acting and don't sell as many tickets of course not robert downey jr sells tickets that's why they brought him back as dr doom a villain like marvel was struggling they brought back the highest performer robert downey jr it's a competition he gets paid more than the ten thousand ten thousand extras who were in those films is it fair i don't

SPEAKER_73: know what fair means all i know is that kid sells a lot of tickets that's it pick your poison and if you want health care that's you know and you want to live in a tighter strata and you want the entry level job and the highest level job to be in a tighter strata and and you know the difference between a ceo comp and the you know entry level comp to be tighter you can do that go to europe and you'll have a bunch of small balls and if you want the big balls you come to america the end base cow i just want

SPEAKER_19: okay so i have a i pulled up sorry a section from the report actually that underscores what you were saying but i just want to take a moment while we're here kind of back after the show kind of loose zone uh how do you define how do you find define socialism because it's one of those words that i feel like sure has a lot of everyone has their own pet definition so when you start off with socialism

SPEAKER_02: sucks yes what are you referring to in that nugget and it's a spectrum so when people say socialism they would say the redistribution of wealth people taking care of each other the highest performers in the society paying a bunch of taxes that they can get redistributed through products and services

SPEAKER_73: for the rest of the folks in that country um and communism we obviously know what that is um you know it's a dictatorship where they decide the winners and losers socialism you kind of throttle

SPEAKER_06: the winners and losers you mute the winners and losers in favor of taking care of more people and more people sharing in the bounty of the big balls thus shriveling the balls and making smaller balls now i actually believe in universal healthcare so am i a socialist i think i am a pragmatist i believe capitalism free wheeling capitalism as long as you're not breaking the laws and the rules that's what i

SPEAKER_05: believe in and on the margins i kind of like people who reinterpret the rules and fight to change the rules in real time so i admire that about crypto people i admire that about airbnb about uber about the full

SPEAKER_06: self-driving movement but i like they're putting pressure on it they're trying things now don't kill anybody i don't want to see it be like theranos where people's lives are at stakes and you're incompetent right so if you want to bend rules and break rules you got to be competent my point is

SPEAKER_95: socialism you know and trying to have equal outcomes i think is how a lot of people would say it is everybody benefits everybody gets a more similar outcome it doesn't result in big huge balls and big huge balls throw off so much tax that the standard of living here tends to be better than most places and the opportunity here is certainly better so again people in socialist countries and um the rabid democracy that's america can move between them you can leave one and come to the other which all the europeans do to come here all the entrepreneurs come here and you know what people say you're smart so my what i say to socialists i have friends who are very socialist and they want universal health care and they want nobody should be able to make over a billion dollars right that's like a real socialist concept bernie saying like why do we even have this one why do we have billionaires why should people be able to acquire acquire this much

SPEAKER_241: well you know what i have an idea move to france enjoy it enjoy paying 55 tax 60 tax whatever the

SPEAKER_95: nordics some of them have on the margins these crazy tax laws we had somebody on recently anyway

SPEAKER_19: that's my right so what do you think that's well i think your definition of socialism is slightly squishy because what what counts as redistribution for one person is probably not for another and so and this is why i wanted to i wanted to get your explanation of it because i i presume that your

SPEAKER_30: views on what socialism is are uh shared amongst other folks in technology is do you do you think your definition of socialism is typical or atypical for people in tech i think it's pretty typical i mean

SPEAKER_02: classically you know i'm just looking at the definition from chad gpt socialism is a political

SPEAKER_208: economic system where the means of production distribution exchange are owned by a regulated collectively by the community or the state yeah democratic control the commanding heights has

SPEAKER_22: always been how i've defined socialism as compared to capitalism i think that what you're describing is more like just welfare-y capitalism and i sure that to me i i think we've deluded democracy socialism

SPEAKER_19: to the point in which people are not using it correctly like communism use you phrased as

SPEAKER_22: dictatorship when actually it's the abolition of private property socialism is collective ownership of certain elements of the economy which by the way not in favor of um but i i think that when we make socialism anything that's to the left of ted cruz in terms of how we spend our national resources we don't give ourselves enough space to be uh creative with our collective pot and get to things like you

SPEAKER_335: might both agree on which is decoupling healthcare from employment which is you know that's the pragmatism i

SPEAKER_95: look at now the reason i don't want to give capital i don't want to give um healthcare to the government right now is the government's so incompetent so i almost feel like the free market would do better and i and you're starting to see it urgent care and paying for doctors virtually post covet is how a lot of people are rolling their own health care i know rich people who roll their own health care now they pay

Chamath Palihapitiya: out of pocket for everything and they have like an umbrella policy where like the first 50k they pay

SPEAKER_86: and over 50 they have like uh what do they call that high deductible plan essentially yeah like absurdly

SPEAKER_208: high deductible it's a catastrophic plan yeah oh my god you know you had a million two million three

SPEAKER_75: million dollars in health care so you pay the first 50 and you have this catastrophic you know god

SPEAKER_02: forbid something terrible has happened but my lord you know we we need to and healthcare is just a huge discussion but um i feel like the government should try to um provide some services extremely affordably for free okay and that would require some private partnership private public partnership with competent people in the government winding down multiple vendors to get the right cost which we're starting to see with the military so if the military can do that why can't we do that with i don't know like what is the proper amount you should pay uh have your blood work done what is the proper amount you should pay for a torn meniscus and when you start to have a global marketplace for these things you see people going and getting their plastic surgery in south korea mexico and europe so now there's this whole plastic surgery tourism because people have to pay out of pocket the free market does it so i kind

SPEAKER_73: of feel like more free market solutions would be good and i think pro novo and some of those new urgent care is one you know like you pay out of your pocket but you get better service 24 hours a day

SPEAKER_06: and then people are going to hymns or hers and getting certain prescriptions or dollar cost you know more cubans and they're rolling their own health care paying for their own pills out of pocket because it's better than using an insurance company yeah i just remember uh i didn't have to pay

SPEAKER_30: it but when i got out of rehab my um i was part of kaiser in california that kind of like um vertical health group and they sent me a bill of like what they counted internally as the costs associated with my hospital stay and then uh a week or two in outpatient rehab and it was some ungodly figure like it was so large i was giggling i paid like 200 bucks because i was insured um but i i don't think

SPEAKER_19: kindness from the collective pot constitutes socialism and that's kind of the point i wanted to make is that i i think we do a lot of things together for example we spend a lot of money on the military and

SPEAKER_383: we share it around the world you know so roads schools bridges i mean there's some things that

SPEAKER_22: we provide you know there's some things we do together i i don't think having public water

SPEAKER_19: utilities counts as socialism but if we did have for example all aircraft manufacturing under the government that would be yeah different so that's kind of a socialist yeah that's my thing i think you can

SPEAKER_22: be a capitalist society with a safety net and not be stuck in the european malaise i think that is a

SPEAKER_96: possible how many people should the safety net catch if you had to pick a number what percentage of society uh answer me this first what percent of people in the us the safety net currently catch i think it's like 50 60 million people yeah because i think medicare medicare like 150 million people are

David Friedberg: on those oh i don't know if i was counting that i was counting more like um how many people are on welfare and so forth yeah um et cetera in the usa yeah i'm curious i thought that was like 50 60 million

SPEAKER_02: um but also there's household so maybe numbers could be wrong but yeah social security 68 million yeah 25 20 of the population supplemental nutrition snap 42 million 12 medicaid 23 so

SPEAKER_75: temp temporary so yeah i mean there's overlap obviously that's the struggle so call it

SPEAKER_200: 35 percent just for the sake of conversation yeah so one in three yeah that that sounds about right yeah so that that's a very high number well i mean there's there speaks to something yeah you

SPEAKER_30: know i don't know how to phrase this uh because i said something um rude about every everyday people on the show about two months ago and people called me out for it and i had to tidy that up

SPEAKER_22: so i'm gonna just be as as as kind as i can jason you and i look at the world through the lens of

SPEAKER_19: our experiences our education and our intellect not everyone has as much to pull from in those areas and i'm sympathetic to people who struggle in a very competitive fast-paced society because not

SPEAKER_30: everyone is born with the same capabilities and i think everyone should still eat if that if that makes

SPEAKER_02: me a socialist bring it on i i there is something to be said for what rfk said about hey you know if we could actually provide healthy food for everybody for what we're doing right now and so as much as some people find him to be like a loon or you know they make him anti-vax whatever you know i think he

SPEAKER_06: does have some insights there about aren't he if if we were starting from a zero-based budget

SPEAKER_02: and we said we wanted everybody to be healthy uh what will we do you know we might all come to the conclusion that clean drinking water would be on that list and maybe vegetables and uh kids lunches healthy lunches would be on the list and we would be okay with it michelle obama was talking

SPEAKER_22: about this 10 years ago and everyone was everyone was so mean to her about this she was like kitchen hot broccoli and everyone's like yes eat doritos and now that trump's doing it everyone's oh my god we

SPEAKER_324: have to make america healthy again make america healthy again cognitive dissonance jason cal can

SPEAKER_89: is not with you everyone else drives me my blood pressure goes up that's because trump is a populist not a republican he's not a conservative yeah he's a populist you know and you know what the two populist positions are getting skinny being healthy uh closing the border uh and crypto these are populist

SPEAKER_262: positions uh those are credibly populist who did you see the picture of him on his plane when he made rfk pose the big mac and rfk looking at it like it was an alien turd yes i wonder if you actually ate any

SPEAKER_282: of that but here's my advice once a week if you want to do fast food once a week your body will be fine with it just don't make it twice a day i don't think it's healthy twice a day no no no i i eat trash but

SPEAKER_22: i also i also eat healthy exercise but like you will never get me to stop eating nerds for example

SPEAKER_418: like i will die with a half box of nerds there's a chewy nerds my daughter's got me on these chewy

Chamath Palihapitiya: nerds at the movie theater it's quite nice all right everybody this has been another amazing episode he's at alexx.com alex we're we're we're into rambling territory now x.com jason we do this three days a week monday wednesday friday sometimes four who knows and uh subscribe to the show and when you come into the you can watch the show live and you get about 20 percent more show if you want 20 more show go to youtube or x and follow the show account and put alerts on you get a thing when the alerts come on and we read your name we say hi to you the first like 20 people who come in we say naughty gang naughty gang is the notification gang so turn your notifications on for youtube it's a lot of fun to talk to the live audience we'll see you all next time bye bye