Institutions such as BlackRock and Vanguard have a massive impact on the funding of everything from media to pharmaceuticals and are worth trillions of dollars. To create legacy wealth at this scale, individuals must start thinking big and understand the power of funding and investing over time.
Some deep tech companies get caught in a cycle of hype and overpromising, raising large amounts of money and failing to find product market fit. Taking money from investors like Softbank can exacerbate this problem, leading to someone becoming the "bag holder."
Zapier is a $5 billion company that raised only $1 million in funding to achieve $60 million ARR, and is now probably worth $10 billion, according to Jason Calacanis.
The podcast discusses the lack of qualification required to become a venture capitalist and how it affects the judgment of capital allocators, turning them into a deal-making machine. Additionally, the speaker emphasizes the importance of disciplined and discerning allocation of capital instead of merely focusing on writing a certain number of checks each year.
Chamath Palihapitiya discloses that there are only a few internet and software companies that are durably worth over $10 billion and highlights the importance of identifying them.
In this episode, the speaker emphasizes the importance of monitoring one's finances, including knowing where money is being held and investing in things that align with personal beliefs.