E1067: Garry Tan, Managing Partner & Co-Founder of Initialized Capital, on dealing with downstream investors as a Seed-stage firm, software companies acting as governments, possibility of building IPO-level companies while fully-distributed & much more!
Garry Tan, Managing Partner and Co-founder of Initialized Capital, dives into the evolving landscape of seed-stage investing. He discusses how VCs are adapting to pandemic challenges and the significance of pro rata rights in maintaining investor relationships. Garry reflects on the impact of software companies as modern-day governance, data storage challenges, and the role of universal basic income in addressing wealth inequality. He also shares insights on the competitive dynamics of delivery services and startup growth amidst economic shifts.
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Pandemic Business Impact
The pandemic impacts businesses, especially regarding childcare and operations.
Founders face questions about making rent, providing food, and childcare amidst uncertainty.
volunteer_activism ADVICE
Startup Survival
Startups dealing with zero revenue should prioritize survival and find new revenue streams.
Resourceful founders adapt and discover innovative solutions during crises.
volunteer_activism ADVICE
Runway and Investments
Startups should aim for 24 months of runway to navigate uncertain times.
VCs might prioritize existing successful companies over new investments in the coming months.
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The book explores the greatest economic and political transition in centuries, predicting the shift from an industrial to an information-based society. Davidson and Rees-Mogg argue that this transition will liberate individuals, alter the power of government, and lead to the rise of digital currency and cyberspace. They foresee a future where individuals will be freed from government oppression and prejudice, and where states will struggle to collect taxes due to the ease of transferring assets electronically. The authors also discuss the potential for prosperity and renewal in the face of radical changes in human history as we move into the new millennium[1][2][4].
Dollar Crisis
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Richard Duncan
Richard Duncan's "Dollar Crisis" delves into the intricacies of the global financial system, focusing on the role and vulnerabilities of the U.S. dollar. The book analyzes historical trends and economic indicators to predict potential crises and their impact on global markets. Duncan's analysis often challenges conventional economic wisdom, offering alternative perspectives on currency valuation and international trade. The book is a valuable resource for investors and anyone interested in understanding the complexities of the global economy. It provides insights into the interconnectedness of national economies and the potential consequences of currency fluctuations.
1:03 Jason intros Garry Tan and checks in on how his quarantine has been going
4:39 How does Garry look at Initialized's portfolio companies? What are his 3 groups of companies dealing with COVID?
8:04 How will VCs react to the crisis? Why does Initialized specifically focus on Seed-stage companies?
11:13 How does Initialized contact downstream investors about their companies, and how has that changed during COVID?
14:12 Thoughts on Posterous, data-storage singularity & more
18:04 Losing thousands of photos after getting banned from Flickr and how that plays into software as the new government, becoming a super-router
22:32 How Spotify's access to public capital gives them an acquisition advantage, collab concepts
24:51 How does Initialized size their follow-on investments?
29:11 For how long is Initialized planning on operating fully remote? Thoughts on going back to work
35:56 What skills has Garry had to improve during his investing career?
43:33 How downstream investors try and take advantage of early-stage investors
47:51 Thoughts on Clubhouse investment, how/if they can scale their exclusivity
56:27 Thoughts on founders selling secondary shares, and how Chris Sacca helped Garry Tan at Posterous
1:02:09 Structural inequality leading to rich-bashing, how Fiat currency impacts welfare inequality
1:07:09 Thoughts on UBI, Instacart, potential profitability of food-delivery companies
1:11:31 Perception of Tech in the Bay Area, commercial real-estate in SF, Facebook's game-theory remote pay scale
1:18:27 Could today's tech giants (Google, Facebook, Uber) have grown to the heights they did as fully remote companies? Can IPO-level companies be consistently built while remote?
1:24:49 Do the best founders appear ageless? New Twitter features: good or bad?
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