Episode
E120: Banking crisis and the great VC reset
1:30:05
Published: Fri Mar 17 2023
Description
(0:00) Bestie intro! (1:35) Recapping the events of the past week (5:39) Understanding the banking crisis (32:55) Solving the global debt problem, righting the ship (54:20) VC market update: Founders Fund splits its eighth fund in two, Sequoia's reported returns, YC cuts its growth-stage team (1:08:36) Science corner: Superconductors (1:24:56) DeSantis update, Ukraine spending run rate, bestie wrap! Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://seekingalpha.com/article/4565388-svb-financial-blow-up-risk https://www.wsj.com/articles/easy-loans-great-service-why-silicon-valley-loved-silicon-valley-bank-6b3f203e https://www.wsj.com/articles/the-silicon-valley-bank-bailout-chorus-yellen-treasury-fed-fdic-deposit-limit-dodd-frank-run-cc80761e https://www.bloomberg.com/news/articles/2023-03-16/credit-suisse-got-its-lifeline-now-it-needs-to-win-back-clients https://www.bloomberg.com/news/articles/2023-03-15/credit-suisse-top-shareholder-rules-out-more-assistance-to-bank-lf9gfhbr https://www.nytimes.com/live/2023/03/16/world/france-pension-vote#france-pension-vote https://www.politico.eu/article/police-fire-dutch-farmer-protest-nitrogen-emission-cut https://www.bbc.com/news/uk-england-london-64968795 https://www.treasurydirect.gov https://www.axios.com/2023/03/03/founders-fund-slashes-vc-peter-thiel https://www.axios.com/2023/03/15/stripe-50-billion https://www.businessinsider.com/sequoia-capital-venture-capital-returns-university-of-california-2023-3 https://www.wsj.com/articles/tiger-global-writes-down-venture-funds-bets-by-33-in-2022-3f9f6ade https://techcrunch.com/2023/03/13/y-combinator-cuts-nearly-20-of-staff-scales-back-growth-stage-investments https://twitter.com/Jason/status/1633570102326202368 https://www.nature.com/articles/s41586-023-05742-0 https://youtu.be/4lE8QWtrEvQ https://www.theatlantic.com/ideas/archive/2023/03/desantis-ukraine-pro-russia-position-gop-presidential-nomination/673392
Chapters
This episode features David Friedberg, Chamath Palihapitiya, and David Sacks discussing a recent dinner and attendees at Laura Piana.
00:00 - 00:40 (00:40)
Summary
This episode features David Friedberg, Chamath Palihapitiya, and David Sacks discussing a recent dinner and attendees at Laura Piana.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
One of the hosts talks about the bank run that happened and how it impacted businesses' payroll.
00:40 - 05:35 (04:55)
Summary
One of the hosts talks about the bank run that happened and how it impacted businesses' payroll. They discuss spreading misinformation around why it happened and the importance of being candid and transparent with their audience.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The issues with First Republic Bank and Credit Suisse are different, with First Republic working to address liquidity issues, while Credit Suisse is dealing with the fallout from the Archegos debacle.
05:35 - 11:38 (06:03)
Summary
The issues with First Republic Bank and Credit Suisse are different, with First Republic working to address liquidity issues, while Credit Suisse is dealing with the fallout from the Archegos debacle. These banks are facing unrealized losses on their balance sheet due to the rise in interest rates causing a regional banking crisis.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The government's response to the COVID-19 pandemic has resulted in the creation of a giant check that will need to be cashed at some point, potentially causing inflation and other economic consequences.
11:38 - 17:52 (06:13)
Summary
The government's response to the COVID-19 pandemic has resulted in the creation of a giant check that will need to be cashed at some point, potentially causing inflation and other economic consequences.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
A recent article in the Wall Street Journal discussed the intertwined relationship between venture capitalists (VCs) and Silicon Valley Bank, where VCs were given cheap interest rate loans, creating a two-tier banking system that needs regulating to create confidence in the regional banking system.
17:52 - 23:51 (05:58)
Summary
A recent article in the Wall Street Journal discussed the intertwined relationship between venture capitalists (VCs) and Silicon Valley Bank, where VCs were given cheap interest rate loans, creating a two-tier banking system that needs regulating to create confidence in the regional banking system.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The Big Technology podcast discusses the ethics of venture capital firms in Silicon Valley and whether there should be more transparency and disclosure around conflicts of interest.
23:51 - 27:52 (04:01)
Summary
The Big Technology podcast discusses the ethics of venture capital firms in Silicon Valley and whether there should be more transparency and disclosure around conflicts of interest.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The speaker highlights the gap in retirement benefits and pension payments, and doubts the capability of fulfilling the same without taxing assets from asset holders, given the current productivity and capital markets scenario.
27:53 - 38:07 (10:14)
Summary
The speaker highlights the gap in retirement benefits and pension payments, and doubts the capability of fulfilling the same without taxing assets from asset holders, given the current productivity and capital markets scenario. The global workforce's retirement benefits and promises made to them are also discussed.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Jason Calacanis believes that people want a service provider who gives them the ability to make payments and earn interest, and is willing to pay for services such as payroll and payables, money market funds and white glove service but not allow the banks to take that money and loan it out or do things with it.
38:07 - 44:12 (06:04)
Summary
Jason Calacanis believes that people want a service provider who gives them the ability to make payments and earn interest, and is willing to pay for services such as payroll and payables, money market funds and white glove service but not allow the banks to take that money and loan it out or do things with it.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
JCal and MK explore the potential risks and benefits of putting your money in a money market fund versus a traditional bank account.
44:12 - 52:33 (08:21)
Summary
JCal and MK explore the potential risks and benefits of putting your money in a money market fund versus a traditional bank account.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Y Combinator is breaking their $8 billion fund into two $900 million funds, becoming their 8th and 9th fund.
52:34 - 57:54 (05:20)
Summary
Y Combinator is breaking their $8 billion fund into two $900 million funds, becoming their 8th and 9th fund. Additionally, YC let go of their growth team this week, including the 17 employees on the continuity fund, which was doing late stage investing.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The average duration for a successful venture fund is around five to seven years to call 90% of the capital and return one x DPI.
57:54 - 1:04:22 (06:28)
Summary
The average duration for a successful venture fund is around five to seven years to call 90% of the capital and return one x DPI. Most of the funds today are in the definition of the J curve, making it important to measure how long it takes the delta t to call committed capital.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Despite a stock being expensive, investing in a business with good management, growing revenues and profits, and happy customers is still a good idea.
1:04:22 - 1:08:41 (04:18)
Summary
Despite a stock being expensive, investing in a business with good management, growing revenues and profits, and happy customers is still a good idea. As long as there is enough capital to support building and the focus is on product-driven and mission-driven founders, it is a great time to invest in these stocks.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The discovery of a room temperature superconductor could lead to a revolution in technology, including infinite battery storage and superconducting microprocessors.
1:08:41 - 1:18:35 (09:53)
Summary
The discovery of a room temperature superconductor could lead to a revolution in technology, including infinite battery storage and superconducting microprocessors. Hydrogen-rich compounds are promising candidates but require high pressures to operate at room temperature. The potential benefits of a room temperature superconductor could also include cheaper renewable energy and more power efficient AI chips.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Superconducting research holds a lot of promise, especially in the field of quantum computing where it can aid in understanding the molecular structure of materials needed for superconductors, which would otherwise take years to test in a lab.
1:18:35 - 1:26:51 (08:16)
Summary
Superconducting research holds a lot of promise, especially in the field of quantum computing where it can aid in understanding the molecular structure of materials needed for superconductors, which would otherwise take years to test in a lab.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The speaker emphasizes the need for a fiscally responsible president and administration, citing the importance of controlling the country's balance sheet in a logical fashion, especially in light of the failures of the last two administrations.
1:26:51 - 1:29:10 (02:19)
Summary
The speaker emphasizes the need for a fiscally responsible president and administration, citing the importance of controlling the country's balance sheet in a logical fashion, especially in light of the failures of the last two administrations.
EpisodeE120: Banking crisis and the great VC reset
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
This is a compilation of random quotes from a podcast, ranging from silly to suggestive.
1:29:14 - 1:29:53 (00:39)
Summary
This is a compilation of random quotes from a podcast, ranging from silly to suggestive.