20VC: David Friedberg on The Framework for Business Value Creation, The Bifurcation in Venture Today That No One Talks About, The Impact of Interest Rate Hikes on Venture and Step by Step; How TPB Incubates, Funds and Exits The Next Generation of Companie
David Friedberg, founder and CEO of The Production Board, discusses his journey from academia to entrepreneurship, emphasizing lessons learned from scaling The Climate Corporation. He analyzes the effects of interest rate hikes on venture capital and shares insights on the changing landscape of capital deployment. Friedberg also critiques traditional venture models, advocating for a focus on sustainable growth and partnerships with scientific experts. He delves into the balance between happiness and wealth, highlighting the personal fulfillment found in service and innovation.
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From Astrophysics to Tech
David Friedberg transitioned from astrophysics to tech after seeing dorm-mates get rich during the dot-com boom.
He started in investment banking, then Google, and finally founded The Climate Corporation.
insights INSIGHT
Dot-com Bust Lessons
The dot-com crash showed Friedberg that startups are not always successful.
He witnessed public companies being sold for less than their cash balance due to flawed business models.
insights INSIGHT
Tech Disruption and Interest Rates
Modern tech companies are disrupting entire industries, not just selling technology.
Interest rate hikes reset investment time horizons, affecting valuations across markets.
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In 'Zen Mind, Beginner's Mind', Shunryu Suzuki explores the core principles of Zen Buddhism, focusing on the concept of 'shoshin' or 'beginner’s mind'. This mind is empty, free of the habits of the expert, and open to all possibilities. The book discusses various aspects of Zen practice, including zazen (sitting meditation), breathing techniques, and the importance of maintaining a non-dualistic and compassionate mindset. Suzuki uses simple language and everyday examples to illustrate how to apply Zen principles in daily life, emphasizing the need to approach each experience with freshness and openness, rather than preconceptions or a sense of achievement.
David Friedberg is Founder and CEO of The Production Board (TPB), a holding company established to solve the most fundamental problems that affect our planet, by reimagining global systems of production. Prior to founding The Production Board, David founded The Climate Corporation, a 10-year journey that culminated in their $930M acquisition by Monsanto. If that was not enough, David is the Founder and Chairman at Metromile and also sits on the board of Soylent, Clara Foods, Tillable, Cana Technologies and more.
In Today’s Episode with David Friedberg You Will Learn:
1.) Origins:
How David made his way into the world of startups and technology from academia and physics?
What were David's biggest takeaways from scaling The Climate Corp to $930M exit to Monsanto?
How did the exit put pressure on David for all future companies he builds? How does he manage that?
2.) The Macro: Venture + The Economy
How does David foresee the impending rate hikes? What impact will this have on venture and the economy?
What segment of the market will be first to be hit? Why is growth investing last to be hit? How does early stage play out in this very new environment?
How will we see the velocity of capital deployment change in this new period? What does David believe are some of the crucial flaws of the venture model?
How does David reflect on his own price sensitivity? What lessons has he learned from deals he has done or missed that have changed his perspective?
3.) David Frankel: The Business Builder
What is David's rubrik for business value creation? How has this changed with time?
How mentally plastic does one have to be around the time it takes to see margins, unit economics etc change from negative to positive?
How does David and the team approach building new companies at TPB? Where do they find the founding teams? How do they incentivise them?
How does TPB approach continuous funding for the companies they create? What milestones need to be hit? How do they assess them?
How does David approach liquidity with regards to exits for the companies they create? Why does their holding company structure mean they have different incentives to VCs?
4.) David Friedberg: Father and Husband
How does David reflect on his own relationship to money today? How has it changed over time?
What have been David's biggest realisations on what provides him true happiness?
How did having children change his operating mentality? What does being a great father mean to David?
Item’s Mentioned In Today’s Episode with David Friedberg
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 
