All-In with Chamath, Jason, Sacks & Friedberg E1: US Response to COVID-19 & Impact on Startups, Venture Capital & Public Markets with David Friedberg
Mar 19, 2020
The discussion delves into whether the US has overreacted or underreacted to COVID-19. Key insights on potential treatment options and the necessity for mass testing are highlighted. Startups face significant challenges, advocating for financial prudence amidst market turmoil. The podcast critiques corporate bailouts and manipulative practices affecting equity. It also addresses systemic flaws in the US healthcare system, calls for global bans on wet markets, and speculates on timelines for reopening restaurants and workplaces.
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Startup Survival Tips
- If you're a startup CEO, close any deals on the table immediately and assume no new money for 3-6 months.
- Cut burn drastically, even if it means salary cuts and trading milestones, to prioritize survival.
Adapting to the New Normal
- Startups must adapt their customer model to the changing economic landscape and ask where their customer will be.
- Focus on unit economics, reduce burn, and extend runway by prioritizing survival over growth.
VC Landscape Shift
- LPs will likely force VCs to mark down their books, impacting returns and their ability to invest.
- Startups need a long runway (36 months) to weather the storm as VC funding dries up.
