20VC: Twitter's Most Controversial VC Delian Asparouhov on Inside the Walls of Founders Fund: What the World Does Not See | Why Western Europe Will Be Like the Third World | Why SaaS as an Industry Might Be Dead
Jul 29, 2024
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Delian Asparouhov, a Partner at Founders Fund and co-founder of Varda Space Industries, dives into the unseen realities of venture capital. He challenges the notion that Western Europe won’t see struggles akin to third-world nations. Delian also critiques current venture practices, predicting major shifts in the industry and discussing why SaaS may be on the decline. Listeners gain insights on the essential qualities for emerging VCs and why the right founding team can make or break a startup's success.
Delian Asparouhov discusses how Eastern Europe is emerging as a competitive startup hub, potentially overshadowing Western Europe economically.
The importance of embracing one's cultural background is emphasized as it fosters a deeper understanding of different perspectives in entrepreneurship.
Asparouhov warns that the software industry may be facing diminished economic returns due to low barriers to entry and easy replicability of products.
Deep dives
The Rise of Eastern Europe
Eastern Europe is becoming increasingly competitive and innovative compared to Western Europe, with a focus on capitalism and engineering. The podcast highlights how countries like Bulgaria, Romania, and Poland are embracing entrepreneurialism, which is reflected in their growing GDP rates and startup ecosystems. This shift may lead to a scenario where Western Europe could be perceived as a third-world region if current trends continue. The juxtaposition between the societal collapse predicted in Western Europe and the energetic growth seen in Eastern Europe illustrates a significant changing dynamic in the world economy.
The Importance of Identity
The speaker reflects on the struggle of balancing his Bulgarian heritage and his American identity, illustrating how these influences have shaped his worldview. He recounts an impactful experience of returning to Bulgaria and realizing that many of his perceived quirks were culturally acceptable there but not in the U.S. This misalignment led to feelings of not belonging in either culture, ultimately shaping his approach to understanding different perspectives. The speaker emphasizes that embracing one's background can lead to a more nuanced understanding of oneself and others.
Multi-Generational Aristocracy in the U.S.
The podcast discusses the concept of a multi-generational aristocracy in the United States, contrasting it with the lack of such structures in Europe. It points to American families like the Vanderbilts and Rockefellers as figures that provide cultural heritage and disrupt socio-economic systems. This contrasts with the political resistance to aristocracy in Europe, where a disdain for the elite rests even as top-tier companies like LVMH represent this very aspect. The narrative argues that acknowledging and accepting this aristocracy could benefit U.S. society by supporting innovation and cultural depth.
The Value and the Critique of Software
There is a discussion about the software industry's appeal, with the low marginal costs of distribution being cited as a major advantage. However, the speaker also cautions that the returns from software are similarly low due to the lack of significant competitive barriers, or moats. The implication is that while software is loved for its scalability and cost-effectiveness, many companies could be easily replicated, leading to diminished economic returns. This view promotes a critical perspective on just how transformative or unique software really is, especially in competitive markets.
The Role of Founders in Venture Capital
The podcast explores the unique qualities found in successful founders, drawing parallels between their paths and the nature of venture capital investment. The speaker points out that successful founders often show exceptional prowess in niche areas which may not directly relate to their companies. This highlights the importance of recognizing unique talents in founders that contribute to their ventures' success. The perspective offered encourages investors to look beyond traditional metrics and find visionary individuals whose potential can lead to groundbreaking innovations.
The Power of Long-Term Thinking
The podcast emphasizes the value of long-term thinking in decision-making and company strategy, particularly in the tech industry. The speaker argues that successful companies rely on leaders who understand the importance of sustainability over short-term gains. This perspective leads to the belief that founders who think generationally cultivate more robust companies. Long-term vision is seen as critical in navigating challenges and fostering resilience, especially when contrasted with the pressures of immediate market performance.
Delian Asparouhov is a Partner at Founders Fund and Co-Founder and President of Varda Space Industries, which is building the world's first space factories. At Founders Fund Delian has led deals in the likes of Ramp ($7BN) and Sword Health ($3BN) among others. Before joining Founders Fund, he was a Principal at Khosla Ventures, Head of Growth at Teespring, and Founder of a healthcare company called Nightingale.
In Today's Episode with Delian Asparouhov We Discuss:
1. Venture Capital: Winners, Losers and Everyone Else:
Who are the Top 3 venture firms in the world today according to Delian?
Why does Delian believe that Benchmark are not the firm they were?
Who will be the winners in venture in the next 10 years?
Who will be the losers in venture in the next 10 years?
2. Inside Founders Fund: What No One Sees:
What are the most important and impactful elements of Founders Fund that no one knows about?
What does Delian believe that the Founders Fund partnership will strongly disagree with him on?
Why does Founders Fund believe the path of most resistance is the best way to make decisions?
What single topic has Delian publicly disagreed with Peter Thiel on most? How did it go?
3. What Every Young VC Needs to Know:
What are Delian's single biggest tips to young VCs looking to scale the VC ladder today?
What are the five core pillars of venture according to Delian? What should young VCs focus on?
Why does Delian disagree with Founders Fund partners that "the best founders do not need the help of their VCs?"
Does Delian agree with Vinod Khosla that "90% of VCs do detract value?"
What are the biggest ways that Delian believes VCs can and do detract value?
4. Europe Will Be Third World, Parenting and Marriage:
Why does Delian believe that Western Europe will become like the third world?
What are Delian's single biggest tips on finding a life partner?
What have been the biggest changes to Delian since becoming a father?
What question does no one ask Delian that someone should ask him?
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