Conversations With Coleman Elites And Experts with David Sacks (S3 Ep.40)
Dec 10, 2022
David Sacks, entrepreneur and co-host of All-In podcast, discusses his background, the success of the PayPal Mafia, and the problems with elite colleges. They critique the expert class, talk about being an unapologetic conservative film producer, and share their mutual love for chess.
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PayPal Mafia's Unique Success
- The PayPal Mafia's success came from a tight-knit, entrepreneurial group recruited through friendship networks.
- Their shared experience, timing, and playbooks fueled multiple successful startups after PayPal's eBay acquisition.
Why Invest Only in Software
- Software businesses have high gross margins because after initial creation, additional copies cost nearly nothing.
- Physical businesses are operationally more complex with lower upside, making them less attractive for venture investing.
Open Tech vs Controlled Entertainment
- Unlike entertainment, tech historically had open ecosystems allowing startups to grow without gatekeepers.
- Entertainment gatekeepers control distribution and profits, limiting creators' earnings and innovation.