Sebastian Mallaby, a bestselling author and senior fellow at the Council on Foreign Relations, discusses the origins and success factors of venture capital. Topics include mentorship, ownership structures, competition, capital deployment, venture capital abroad, the industry's gender gap, and future challenges.

Huge interview today. "Power Law" author Sebastian Mallaby joins the show to break down some of the most important moments in VC history and his lessons from writing the book, including: the youth revolt (14:18), KP vs Sequoia (27:02), what makes a legendary VC (38:40), and more! (0:00) Jason tees up today's interview with "Power Law" author Sebastian Mallaby (1:42) Sebastian explains how and why he wrote a book on the history of VC (13:13) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist  (14:18) The virtuous cycle of luck early in a VC career, youth revolt in startups, Zuckerberg spurning Sequoia (26:02) Embroker - Use code TWIST to get an extra 10% off insurance at https://Embroker.com/twist  (27:02) Tom Perkins and the Kleiner Perkins rise and fall vs Sequoia's sustained dominance, KP's Genentech investment (37:18) Harmonic - Get $4000 off at https://harmonic.ai/twist (38:40) What characteristics make a legendary VC? (56:29) Why are institutional LPs allocating more capital to VC, what happened with China's interest in the industry? Other investable industries other than software FOLLOW Sebastian: https://twitter.com/scmallaby FOLLOW Jason: https://linktr.ee/calacanis FOLLOW Molly: https://twitter.com/mollywood BUY "Power Law": https://www.amazon.com/Power-Law-Venture-Capital-Making/dp/B094PSKDZV

Sebastian Mallaby, CFR fellow, delves into business journalism, EMH, private vs public markets, liquidity premium, investor specialization, VC vs hedge funds, decision making at the Fed, Powell's role, and Fed's political independence in an insightful discussion.

In this discussion, Gideon Rachman talks with Sebastian Mallaby, author of The Power Law and a Senior Fellow at the Council on Foreign Relations. They explore Elon Musk's strategic alignment with Donald Trump, considering what this political partnership offers Musk and his ventures. Topics include the shifting ideological landscape in tech, the growing discontent in Silicon Valley regarding taxation, and how potential tariffs on electric vehicles could bolster Tesla's position. The conversation reveals the intricate dance of power, politics, and business that Musk navigates.

Venture capital powered the tech revolution, but what powers venture capital? With his in-depth knowledge and coverage of the sector you’d be forgiven for thinking Sebastian Mallaby is a veteran of the Silicon Valley scene. The author of several books on finance and economics, Sebastian takes pride in understanding his subjects intimately (perhaps too intimately, if you ask his critics). His latest book, Power Law: Venture Capital and the Making of the New Future, sheds light on the small but mighty industry. Sebastian joined Tyler to discuss why venture capital skills aren’t more replicable, the promise of biotech despite increased regulations, why venture capital remains concentrated in the Bay area even after the pandemic, the differences in risk-taking between East and West coast finance, the secret to Mike Moritz’s success as an investor, how Peter Thiel’s understanding of the power law set him apart, why he isn’t interested in becoming a venture capitalist himself, his predictions for the European tech ecosystem over the next ten years, the original sin of “too big to fail,” the major failure of Alan Greenspan during his tenure at the Fed, the Darwinian evolution of good hedge fund strategy, what Ray Dalio got right with Bridgewater, the finance topics he feels are undercovered, what it takes to be a good Substack writer, why he’s bullish on The Information, reasons to be optimistic about the innovative and entrepreneurial trajectories of Japan, the greatest living British historians, the future of the World Bank once China stops borrowing from it, what’s causing the decline in popularity of liberal capitalism, the zany appeal of The Grand Budapest Hotel, and more. Check out Macro Musings. Follow Macro Musings on Twitter. Subscribe to Macro Musings on your favorite podcast app. Read a full transcript enhanced with helpful links, or watch the full video. Recorded January 31st, 2022 Other ways to connect Follow us on Twitter and Instagram Follow Tyler on Twitter  Follow Sebastian on Twitter Email us: cowenconvos@mercatus.gmu.edu Subscribe at our newsletter page to have the latest Conversations with Tyler news sent straight to your inbox.