Episode
E62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
1:06:37
Published: Sat Jan 08 2022
Description
0:00 Bestie intro and poker recap 3:14 Elizabeth Holmes verdict, origins of the fraud, breakdown of the Theranos promise 17:51 Lessons for founders and investors from the Theranos debacle, bad behavior a sign of the top 26:09 Implications of "The Great Markdown" on public and private markets, confusing FED decisions 45:56 Advice for founders on navigating a downturn 1:00:01 a16z's new mega funds; should they go public? How does that change partner dynamics? 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://www.wsj.com/articles/the-elizabeth-holmes-verdict-theranos-founder-is-guilty-on-four-of-11-charges-in-fraud-trial-11641255705 https://www.bbc.com/news/technology-58469882 https://www.nytimes.com/2022/01/04/technology/elizabeth-holmes-verdict.html https://www.wsj.com/articles/the-theranos-fraud-elizabeth-holmes-convicted-trial-blood-testing-start-up-11641330471 https://www.businessinsider.com/bill-maris-explains-why-gv-didnt-invest-in-theranos-2015-10 https://www.skadden.com/insights/publications/2021/06/insights-the-delaware-edition/delaware-courts-expand-plaintiffs-rights https://www.cnbc.com/2022/01/05/fed-minutes-december-2021.html https://fred.stlouisfed.org/series/T10YIE http://www.paulgraham.com/aord.html https://www.socialcapital.com/annual-letters/2019 https://medium.com/craft-ventures/the-burn-multiple-51a7e43cb200 https://www.statista.com/statistics/266206/googles-annual-global-revenue https://techcrunch.com/2022/01/07/andreessen-horowitz-raises-9b-in-new-capital-for-venture-growth-bio-funds
Chapters
The host talks about the season of candles and his $24,000 Brazilian sandalwood candle made from an extremely rare and sacred tree that lasts for 45 minutes.
00:00 - 00:53 (00:53)
Summary
The host talks about the season of candles and his $24,000 Brazilian sandalwood candle made from an extremely rare and sacred tree that lasts for 45 minutes. He also mentions the incoming DMs from Candle Karen's and asks his guests about their poker game.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Elizabeth Holmes, the founder of Theranos, has been found guilty of two counts of wire fraud and two counts of conspiracy to commit fraud, related to misleading investors about the capabilities of her blood-testing technology.
00:53 - 07:53 (06:59)
Summary
Elizabeth Holmes, the founder of Theranos, has been found guilty of two counts of wire fraud and two counts of conspiracy to commit fraud, related to misleading investors about the capabilities of her blood-testing technology. The verdict could potentially have significant financial implications for hundreds of millions of dollars of Theranos investors.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Although machines like flow cytometry can detect the number of blood cells and different types of white blood cells in a droplet of blood, it is still not possible to replace broad profile panels that require a larger amount of blood for an accurate reading.
07:53 - 17:47 (09:53)
Summary
Although machines like flow cytometry can detect the number of blood cells and different types of white blood cells in a droplet of blood, it is still not possible to replace broad profile panels that require a larger amount of blood for an accurate reading. The lack of expertise in biotech among major VC firms have also led to red flags in investing in such technologies.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
This podcast discusses the dangers of misrepresenting your startup in the media, including the potential consequences of inaccurate numbers and partnerships, as well as the risks of letting others do your thinking for you.
17:47 - 22:17 (04:29)
Summary
This podcast discusses the dangers of misrepresenting your startup in the media, including the potential consequences of inaccurate numbers and partnerships, as well as the risks of letting others do your thinking for you.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The Delaware courts are taking shareholder accusations seriously and allowing even the smallest shareholders to access detailed financials.
22:17 - 27:45 (05:28)
Summary
The Delaware courts are taking shareholder accusations seriously and allowing even the smallest shareholders to access detailed financials. On the other hand, the market pullback for tech stocks has caused a major regression to the mean for the valuations of companies like Adobe, Shopify, and Workday.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
A discussion about investment strategy for the first quarter, focusing on the 10-year bond and its derivatives, and the potential impact of tapering and quarter-point rate hikes.
27:45 - 38:05 (10:20)
Summary
A discussion about investment strategy for the first quarter, focusing on the 10-year bond and its derivatives, and the potential impact of tapering and quarter-point rate hikes.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The Athletic, which was valued at $500 million just two years ago, was sold for the same price to the New York Times.
38:05 - 43:34 (05:28)
Summary
The Athletic, which was valued at $500 million just two years ago, was sold for the same price to the New York Times. Also, the public markets experienced record highs in 2020 and 2021 due to the expansionary monetary and fiscal policies, but this trend may not trickle down to the VC markets unless the latest stage investors start paying less for the late-stage growth companies.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
In this episode, the hosts discuss two rubrics for building a successful business: default alive vs default dead and focusing on value creation.
43:34 - 52:19 (08:45)
Summary
In this episode, the hosts discuss two rubrics for building a successful business: default alive vs default dead and focusing on value creation. They also touch on the economy's potential recession this year due to the Fed's overreaction.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The best businesses in the world after 15 to 20 years are barely growing at 20%, so it is unrealistic to think that any company can grow infinitely forever.
52:20 - 1:00:06 (07:46)
Summary
The best businesses in the world after 15 to 20 years are barely growing at 20%, so it is unrealistic to think that any company can grow infinitely forever. Even VCs won't fund a company that burns more than they earn.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
This episode discusses the financial implications for individuals who are on track to becoming a partner in VC firms that choose to go public rather than keeping the company privately owned.
1:00:06 - 1:03:57 (03:50)
Summary
This episode discusses the financial implications for individuals who are on track to becoming a partner in VC firms that choose to go public rather than keeping the company privately owned. The potential loss of true ownership for partners and the impact on financial compensation is also considered.
EpisodeE62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The All In Summit organizers are aiming to create a magical, high-end experience compared to TechCrunch's more simple conference format.
1:03:57 - 1:06:24 (02:27)
Summary
The All In Summit organizers are aiming to create a magical, high-end experience compared to TechCrunch's more simple conference format. They are seeking to hire a professional to take charge of the event.