So here you have a nonprofit that took a Software asset spun it out into For-profit gave I think 100% of the Equity to the employees or some large Percentage and then the nonprofit owns What a share of the revenue a license Unknown and here because it's software Maybe it's a little bit cloie or maybe It doesn't seem as dramatic as giving People a stack of gold bars but you know Seems like a bunch of employees went From the nonprofit to the for-profit and We're given the gold buan I do think It's really interesting to see how many People are going after coding that's Because of two reasons where does a lot Of value in the world reside and then What is AI good at right now Bingo this week in startups is brought To you by Washington Post stay informed With trusted journalism from The Washington Post right now twist Listeners can subscribe for just 50 Cents per week for your first year at Washingtonpost.com Twist assembly AI get maximum value from Voice data with assembly AI build Powerful products and features for your End users on the industry's leading Speech to text models get 100 free hours To start building at assembly ai.com Twist and brex the financial stack Founders can Bank on brex knows cash is King for startups so they built a
Banking experience that takes every Dollar for further get the business Account trusted by 1 in3 US startups at Brex.com Twist4 all right everybody welcome back To this week in startups I'm Jason Kellis he's Alex Wilhelm and we're back We both had projects uh we were working On for the last couple of weeks I just Finished up the all-in summit you've Probably seen I've birthed all this Amazing content and we'll talk about I Guess some of those highlights but uh You birth something else Alex something Arguably uh much more important well I Didn't birth anything to be clear I I Walked around and and brought people Snacks and so forth but uh yeah we had Our second kid and everyone is healthy And home and uh we are right back Jason In the thick of newborn life and I had Forgotten how great and hard newborns Are it's great because you put them down And they don't move you know unlike a Toddler but then they don't have a Concept of day and night which is not Good so yeah they have a concept of Calories running out and needing to Attach to Mom and get that next calorie Fix and also pass out from a milk a coma Yes then it wears off and they're Screaming it's like milk addiction now That you put it like that it's kind of Like dealing with a really teeny little
Drug addict who wants one thing U the Good news though is uh the new our new Daughter is is incredibly I mean she's She's perfect in in every way so that It's been it's been edifying um Challenging and uh I bring all that up Friends because I'm back and we're going To be easing back into more live news so Make sure that you've subscribed on YouTube hit the bell all that good stuff Because we are going to be back in form On the all-in summit though Jason I was Really well and by the way how's Mom Doing how's Mom Mom's doing great yeah Everyone everyone's healthy and all Things are nominal they are inside the House on the couch right now all cuddled Up while I'm out in the shed I like how He's like nominal all systems nominal Like he's launching a rocket it hasn't Blown up yet H how how many SpaceX YouTube lives have I seen turns out the Answer is most of them correct um well Just um I have two pieces of advice for You Night Nurse they go together it's Really one piece of advice it's two Words I know how much you make you're Doing okay family's good just flour on a Night Nurse once in a while um my Lord That is expensive but worth it all right I want to talk about all in some though Before we get before do our thing I just Want to quickly double click on this I I'm catching up I got to see a little
Bit of the um freedberg Sur chat I know Benof swung by and uh JD I think also Swung by JD the H Travis uh yeah it go So this is the third year uh in the First year nobody wanted to do it I Dragged him Kicking and Screaming I said I think there's an audience for this and We had 800 people come and it was a lot Of scholarships you know low price $500 Tickets for up in comers and some people Paid full Fair which I think at the time Was maybe $5,000 then last year I had Freeberg take over all the content now We all reach out to our specific Speakers and then I do the part I did The parties and this year I focused just On my performance as the moderator and You know the Master of Ceremonies as it Were and um felt actually really good About that it's the first time I wasn't On stage thinking about the lunch the Dinner flow and all that kind of stuff And so like I was able to give a good Per performance ask tough questions it's A little bit strange and we'll talk About it today because I'm a journalist By Trade I like to ask hard questions and I Have this concept of a follow-up Question which I I'll deploy it's a very Strategic thing Alex that um you can use I I'll I'll teach you this master Jedi Trick please if the subject doesn't Answer you then you take another swing
At it right the lightsaber doesn't go Back on the Belt you keep swinging and Sometimes you ask the second or third Time you get the you get the actual Answer to the question so it's a Different type of event it's not Adversarial it's very conversational but Then I also try to push people to Because I know the audience wants Certain questions asked they want a Little bit of drama and you know getting To the hard questions so JD Vance was Great he's super impressive um you know You might disagree with his politics I Disagree with him on a lot of things Whether it's January 6 or taking away a Woman's right to choose and the National Abortion ban that he was a proponent of But you know I do think he's an Impressive individual who will do a lot Of great things for the country if he Gets the shot and he's young and he's a Business person so you know that checks A lot of boxes for me and what I'm Looking for more of in government I Obviously have fundamental issues with His boss and we got to that and then you Know for me the Travis interview was Like coming home you know he after what Happened you know in his out Ser from Uber he just went underground and just You know he never stopped working he Just went all in on cloud kitchens and Hasn't talked so for the last I don't
Know six or seven years you know when I Talk to him I say you know if you ever Want to you know we're friends obviously You ever want to have a conversation you Know the platform is available to you Whether it's here in this ween startups Or at the summit or all in or whatever It is um you know invent hosts whatever And uh this year you know we were Wakeboarding and hanging out and I said You know is this the year and he said I Think it might be day before he says I'll do it and I was like great so we Didn't announce him we didn't announce Sergey Sergey was coming to the event We're obviously friendly and he's been Working too yeah you people don't know But he's going to work every day and I Had dinner with him a couple weeks ago And he was talking about work and he was Late to our dinner because he W he his Meeting went over yeah and I was like Dude come on man can't be late but the Great news is um you know he's super Highly engaged we didn't announce him so When he came out the audience roared for Both of them and it was very touching You know because I think there's been a Pretty adversarial you know press corpse For the last couple years in a lot of Cases for good reason in a lot of cases I think it's a little bit over the top It might be link batty I think they both Felt like the audience wanted to hear
From them and so that that to me on a Personal level interpersonal level like Sergey was taken back he didn't think Anybody would remember who he was oh the Audience roared yeah yeah and then the Audience roared at Travis so I I felt Very nice about that cuz they're humans And you know we all want to be loved and Have our opinions valued so it was a Great time we had a fun time and it Wasn't as exhausting as it normally is For me well I mean you stopped doing Three jobs at once at a major event and You and I having both worked at putting On major events know that there is Plenty of work to go around it's hard to Do more than one set of tasks but on the Uh follow-up question and then the Adversarial journalism point I wonder What percentage of media criticism is Stan culture and fandom being shocked That someone might push back against Someone that they idolize or want to Hold up because in journalism if I say Jason you know blah blah blah blah blah And you don't answer me and I ask again That's standard give and take but if You're a a pop star Stan or something Similar you might view that as I'm being Rude or you know harshing their Buzz or Something that's standard give and take That's the roly poly of commentary so Absolutely and you and I are I think you The reason we get along is because we
Call balls and Strikes and we're kind of Old school classic journalists and then There's advocacy journalism on one side Which is kind of weird to call it Advocacy journalism we just call it Opinion and then on the other side you Have people going direct and not facing Any tough questions and you know I think You know where we sit I think is the Ideal spot I'm not trying to lead the Witness I don't want the audience to Come away with my worldview right I want To ask the question like ijd would you Certify the election and he's like no There's a lot of things you certif it Yes or no and then I asked him I said Listen I'm going to ask you a third time And that's my little device to let People know that I'm not going to stop And that the audience also knows that We're here on the third one and he said Yeah listen I would have not signed it Basically that gives you a lot of Information I'm not telling you you Should vote for either party I just want You to have information that's the first Clip I saw from the all in Summit all Over my uh my Reddit feed was people Discussing that particular comment from Him and it is good to know what someone Thinks about key things especially if They want to be in charge of the nation So yeah I think that was that was well Done I'm going to watch the surgey one
Of course I didn't know the Travis C so I'll watch that one too yeah you'll like It yeah last it was a very emotional one Because you know there's a lot of you Know for all of us PTSD with his outing You know and it's like it's the first Time he's really discussed it it is the First time he's discussed it openly Publicly yeah so couple of Tears were Shed I was pretty heartfelt you'll enjoy It twist is doubling down on news this Year me and Alex man we are reading the News we're bringing it to you we're Giving you our opinion you know how we Stay sharp the exceptional journalism Done by The Washington Post you know all Of their great national news coverage You know politics obviously it's in Washington but you know what they do a Great job on Tech and business they Crush it it's for you newsletter is a Daily personalized Roundup of the Stories that you care about most and They've got great reporters like Drew Harwell going deep on AI The Washington Post is going to help you broaden your Perspective you're going to get really Smart going deep on the Technologies and Topics that you care about and you know What I'm an audio lover you can listen To the articles there in addition to Reading them which is great for me when I'm driving or I'm working and I want to Have something on in the background or
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The State ofthe art forward yeah I mean We are in an inal game right now where It reminds me of the early days of you Know the iPhone and smartphones um where It's like Christmas every three to six Months you know a new app comes out and It's Twitter it's for square you know It's a flashlight whatever it is Spotify The YouTube app comes out it's just this Is Christmas for tech people just yes And so I do think this reasoning is Something that I've heard Sam talk a lot About hey we need to get more reasoning Going um and then there was an Announcement by Google as well that they Had released some data Integrity Solutions where it's an open source Project to kind of check the work check People's path check people's statistics And stuff like that and it was reducing Hallucinations by 60% this is all to say You know the car is on the road it Doesn't feel safe it feels like you're In an experimental plane or an Experimental vehicle sure now if you're Going to put the whole company on it and People are going to start flying and They're going to go see Grandma and Grandpa and the new baby you're going to Want that plane to have certain features And um that's the era we're moving into Which is safer Transportation safer Knowledge Gathering I feel like the Whole name of the game right now is to
Move from these early adopters the Vanguard have been playing with this Stuff for two years now we need to get To that big fat middle which is you know College kids or generally part of the Vanguard but somewhere in between you Know Rank and file employees and then Eventually we'll get the laggards and so As we move into that it's just got to be You know more um reliable and and that Seems to be what they're focusing on What what was your impression of it did You play with it at all did you did you See any good examples online well I was Going through just prepping for today All the different metrics uh discussing How good it is compared to other things Because to me I'm always interested in The underlying Tech in this case we're Talking about what is called the Reasoning tokens and fact that this is Using reinforcement learning and we'll Get into that just a second but I was Curious like okay what's the actual Improvement and the metrics are very Impressive so just to give everyone a Taste of of the progress we're seeing This 3 to six month Christmas or Hanukkah uh we have a an image here of Um what's called codeforce ELO Essentially how good at programming is An open AI model Jason and as you can See GPT 40 on the left over there um Didn't do terribly made it to the 11th
Percenti you know shout out um but if You then look at 01 preview 01 and Another version of the 01 model you can See dramatic and massive improvements And right now just everyone knows we are Looking mostly at the 01 preview and Then also there is 01 mini which is Smaller and faster and more designed Specifically for coding work and Jason I Picked this example because it seems That the thing that is being solved or Being attacked the most quickly with Modern llms is code generation and it Seems to be getting better faster as That than by pretty much anything else That I can see and so I wonder if the Real use case the mag moment really is Just going to be this is going to help People write a lot of code a lot faster Because it just keeps getting better and Eventually it's going to be good enough It does seem to understand reasoning Much more so I did a very simple test so I was born 1970 I said what are the 16 Most important Technologies since 1970 And it thought for 12 seconds you see That here and it says you know when it Thought identifying key developments if You hit the the drop down carrot it Explains to you what it did so this is Interesting this is where you can get Inter reasoning evaluating technology Significance tracking technical project Tracking technolog advancements in
Technology tracing things and it kind of Explains it and then it comes up with Hey the personal computer the internet Worldwide web Mobile phon smartphones uh Global positioning GPS uh MRIs DNA Sequencing renewable energy Etc then I Said put these into a bracket and run The first round it thought for 13 Seconds it designed the bracket it Mapped the technology advanced to the Next rounds weighs choices you get the Idea uhhuh and here it goes it says Personal computer versus blockchain and Cryptocurrencies the internet but it Didn't actually run it and so then I had It run it and uh it did its matchup Personal computer versus blockchain Personal computer wins internet versus Criser spicy the internet I would agree With that so far uh worldwide web versus 3D printing that's an easy one worldwide Web one mobile phones versus wi-fi easy One mobile phones work smartphones Versus social media smartphone one yeah And it's reasoning smartphones combine The functionality of mobile phones with Advanced Computer CES enabling a mult Ude of applications including social Media they have transformed how we Interact so it basically came to the Reasoning Alex in this B off that you Can't have social media without Smartphones now I I don't know how it's Doing that exactly and this is where I
Think we're kind of looking at something Here I'm wondering did it get that from A blog post that somebody else did at Tech crunch where they you know pitted These things and 10 years ago you pitted These things or somebody said in a Reddit thread or on Twitter or Facebook Hey you know smart you can't really Compare social media to smartphones but It did happen and you know I think That's what you're going to start seeing People do which is thank you for doing My you know marketing plan thanks for Helping me write my blog post or telling Me you know what we should have on the Podcast today but you know a little more Reasoning in getting to an answer is Always welcome and so we'll see you know Over time how correct it is yeah and so Those are called the reasoning tokens That are part of the reinforcement Learning process and I I did go through Some papers this morning trying to make Sure that I understood this the best Actually breakdown was from a silly YouTube video that I found in which they Said okay so this is essentially gp4 but It can kind of self- prompt itself to Refine its thinking as it goes through Reasoning as we saw to get a much better Response the upside is more complex Queries I would say better results Frankly what you just showed was very Impressive the downside though Jason is
Just that it's expensive to run uses a Lot of compute power and because it Takes more compute it takes longer so It's actually currently right now slower And more expensive but to me the curve Of those two complaints in technology Always bend one way which is down things Get faster things get cheaper so I don't Really see a downside to this other than In the next 6 to 12 months until it gets Cheaper and faster it will be slightly Hard to use because it'll be costly but Who cares what an dramatic Improvement I Mean that's this feels like progress to Me and I love that now imagine different Language models self-correcting each Other and then agents on top of it so You know when you put an agent on top of Three or four of these and we ask an Agent to do this for us and there's a Third co-host here and we say Hey you Know uh tell us you know the history of SuperSonic flight uh and give us you Know the key moments in a timeline Instead of having a guest on like oh my Lord there's going to be a third person In the mix every time and that's going To be a little bit strange for people to Kind of understand when there is a a Replicant in every Zoom call there is Going to be you know like in Blade Runner a replicant in every aspect of Our Lives it may not be physically there At the start Optimus and human will be
Later but we'll start having them on Call so I think you know it would be Really interesting on this Zoom call or In a slack room or glue is doing this David sa SL competitor yeah has like Some chat in there but when they start Interacting that's going to be really Interesting and then there was some Weird uh news around their corporate Structure um and then a a financing so Maybe quick hit those for us yeah just To keep everyone up to date on all Things open AI because it still Technically kind of mostly counts as a Startup in some way so uh Fortune Recently reported that uh Sam Alman we All know Sam um has been discussing next Year shaking up the open AI model and We've all gone through this discussion Before why is it a foundation that owns A nonprofit that owns it's it's a mess Jason it's always been a Cloe I think And it's very impressive that the Company actually managed to fundraise And grow as much as it did with this Relatively ridiculous corporate setup I Mean if you're going to back a startup What do you want to see a Delaware C Corp or maybe a texas-based C Corp but You don't want to see a foundation that Owns a nonprofit that owns a a For-profit entity right yeah hey when Founders ask me what corporate card Should they use I automatically think of
Brecks that's what I use and when Founders ask me where they should store Their cash well of course I'm going to Think about brecks why do I think about Bre so much because knowing everything About your money is not negotiable Nearly 40 % of startups that fail well They fail because they run out of cash And 100% of startups can't afford to Make Financial mistakes we all know that So you want to be on top of this stuff And thankfully brex has built a killer Banking experience that helps you take Your dollars further and they'll protect Your cash while extending your startups Runway how do they do all that well they Offer the best parts of what you need Checking treasury FDIC insurance and They do this all in a single Powerhouse Account if you need the best because you Are on to something big a brexis banking Solution is going to get you 20 times The standard FDIC protection through Program Banks and Industry leading yield On your cash and the ability to send Money worldwide at lightning speed which Given how Global everything is now is Super important so brex is used by one In every three us startups as you know Because you go out to dinner with other Founders and we talk about it so go get The financial stack that Founders trust At brex.com Twist4 brex bx.com
[Music] T24 you know I think where we're at Right now is going to be more lawsuits And eventually the IRS and the Government doing a full you know exam of What happened here because there is this Discussion of and I was I was talking on A private chat about this you know with Some high-profile people and I just said To myself well what if you did this and You had physical assets right so here You have a nonprofit that took a Software asset spun it out into For-profit gave I think 100% of the Equity to the employees or some large Percentage and then the nonprofit owns What a share of the revenue a license Unknown okay now let's do it again you And I start a startup it's going to be For real estate and we decide we're Going to build a bunch of Airbnb you Know small tiny homes on a ranch let's Say Hypothetically and then we get all these People to donate and they get to get tax Donations against their gains maybe you And I have some gains we donate it we Get the tax gain and then we spin it out And then you and I become employees of The spin out and get equity in it yeah After it's appreciated in value but we Didn't take the risk like this seems Like a really good playbook for Venture And in that case if you donated the
Actual physical assets how do you Justify that and here because it's Software maybe it's a little bit cloie Or maybe it doesn't seem as dramatic as Giving people a stack of gold bars but You know seems like a bunch of employees Went from the nonprofit to the For-profit and were given the gold buan And I wonder what the nonprofit got That's I mean it could be the nonprofit Has 90% ownership 90% of the profits you know and this For-profit thing is just transient but It seems like the opposite from the Outside yeah I mean what's the incentive To give the nonprofit most of the upside I mean there's a lot of investors who Are putting money into this company and And reuter said uh very recently that as Open AI looks to raise I think they said $6.5 billion more at a up to $150 Billion valuation everybody's a little Bit tired of warrants and Foundations And and strange or have you ever seen a Chinese company go public in the US and Then in the F1 filing they have that Diagram of ownership and there's like 74 Entities that's what open AI feels like And it's too clever for its own good so Yeah I look I don't want to get into the Is open AI you know betraying its early Vision and and Manifesto and so forth Because that's in the past and let People who are there fight that out but
I wonder Jason and this is not cynical With me if it's just going to be much Better for open AI to be a regular Company and not this Frankenstein hybrid I love the The Good Vibes behind it but Has it really helped yeah I mean it it Does seem like a bait and switch and Here we are so you know I I I I'm kind Of tired of talking about it I'm I'm Interested to see it Resolved as a capitalist I'd like to Understand the Playbook if somebody Could write the Playbook I'd actually Like to know the attorneys working on it So let me start there if anybody knows Which attorneys are doing the work for Open AI can somebody just leak that to Me my DMs are open my email for life is Jason cicis.com just tell us who's doing Who are the attorneys doing this cuz I Want to know what they're thinking right And also what their specialty is because If they are like you know if they're IP Lawyers tells you a lot if they are M Lawyers tells you a lot so I'm curious If they have a special specialty that Would tell us what their their their Heads down on um but I wanted to put This to you because I've been mulling on This $150 billion number for a long time So uh the information reported that open A has considerating subscriptions of up To $2,000 a month to me what that sounds Like is if you want access to the new
Model for your company you're going to Pay 25k a year that seems reasonable Enough that that's not crazy but um how Much of your own net worth Jason uh Presuming it was all liquid for the sake Of this conversation would you be Willing to invest in open AI tomorrow at A $ 150 billion post zero wow okay tell Me why there's so much potential Downside here that there are other ways To place the that don't have the Downside now while they are the category Leader they're being priced like the Category leader so hey let's say it Becomes a trillion dollar company you Made six times your money Congratulations seven times your money Something like that yeah you know I Think you could play other angles here Whether it's Google Amazon Apple Facebook and maybe get the same result Without the downside and the risk in it So yeah it seems if they're doing two or Three billion dollars in run rate um Maybe they do a billion and a half this Year that's a 100 times Revenue if They're doing three billion next year It's 50 times Revenue so maybe you split The baby 75 maybe a bad analogy for Today but you know you split the Difference you split you split the dad In half and turned him into a Yes so I think maybe 75 times top line Revenue while losing and we don't know
What this company's losing is it losing A billion a year or five billion a year I would say yeah you know and how do you Amortize these you know what is the Lifespan of the h100s five years and Then they have to get chucked and Replaced and they're like the new ones Are that much better so I do think it's Like um absurdly speculative kind of bet That people would make for vanity Reasons it would be Like I think there's a lot of vanity Involved in here if people don't realize This but being able to say I was the Investor in Uber gives me credibility Robin Hood you know I invested in You know open AI would give you some Credibility now you talk to the next People oh yeah we're open AI Shareholders of course we have an Allocation oh we're SpaceX shareholders Like right you can also just buy it on The secondary Market it doesn't mean you Came in when it was a hundred million Doll company or a billion dollar company It means you came in 150 billion so These things trade like public companies Now and I think people are using these In some ways because they get management Fees and there's not many places to put A billion or two billion to work so if You're you know Thrive capital and You've got all this money laying around Or Andre I don't know who's involved in
These rounds I know Thrive had done it Before Josh kushner's company like okay Well he's getting management fees on the Two billion he put in there he's getting Carries so he put a billion dollars into Something if it only doubles only you Get 20% it's $200 million so for the Capital allocator there's no downside Like literally no downside and you get The fees on a billion dollars of 10% so You're making 100 million fees you net That out you get that now guaranteed if It becomes worth two or three times you Get that 3 400 million dollar carry and You know your LPS would have been better Off putting the money into Facebook and Being liquid for the next 10 years so Yeah I think the vanity Point's super Huge I think people really often want to Be seen in in the best companies and the Best rounds it's brand building for the Venture Capital firm and the other thing That I would say Jason is if if I'm an LP and I give Thrive Capital money and They put it into open Ai and I don't get The return that I expected out of it It's a bit like the old adage about no One gets fired for buying IBM you Probably won't get in that much trouble With your LPS for buying into open AI Because of course you were trying to buy Into open AI why wouldn't you so I Wonder if it also Dr risks the Reputational hit of a less than
Performing fund if you put a lot of the Capital into what people expect is going To be the next Microsoft though I I do Want to say that your point about you'd Want to make a different bet it makes a Lot of sense to me there's a new company Called um super Maven Tech just covered Them $12 million round Bess mer Leed uh Open AI co-founder John put some money Into it as well and it is yet another Help people code startup and if you um If you go into our notes do and you Click the little toggle that says Compete with look at the names that I Found that are in this space amazing It's a lot of names and I just I'm Trying to sort out is that the better Bet to pick one of the 30 horses chasing What is clearly going to be a big prize Or do you back the model companies Themselves I don't know where I put my Money frankly okay are you worry that Your startup is the only company out There that's not building with AI Features well if your company records or Collects any voice data I've got a Secret weapon for you assembly AI has The AI models you need to turn that data Into new features that your users are Going to love so don't fall behind put This incredible technology to work for You whether it's podcasting audio books Meetings especially the virtual ones and All the videos that people are
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Hour you're done billion dollars put to Work you know what we do what why Combinator does what David does a Tech Stars you know like we do a 100 new Investments a year obviously by Statistics 80 are going to struggle and Die in the first three you know and then You do it every year you know your whole Life becomes people sending you Desperate emails God we got to save the Company nothing's working and you know We're basically in Hospice Care with 80% Of the portfolio at any given point in Time and that's a really tough life Whereas other people have the other Tough life of a general partner watching Public markets go up and down every day And having your LPS call you what's Going on with apple why is NVIDIA not Doubling why are you in this and then You're dealing with you know having to Get up at 6:00 a on the west coast to Deal with the markets or 5:00 am every Day so you pick your poison and uh I do Think it's really interesting to see how Many people are going after coding That's because of two reasons where does A lot of value in the world reside and Then what is AI good at right now bingo I I don't know if there is a better Category than developers lawyers Accountants right and we have a great Company Tax GPT that went through our Programs then went to YC and you know
They're getting a lot of attention you Know a lot of the legal AI startups Because those are constrained data sets That can be Mastered by AI without Hallucinations quicker than other things And then those professions get paid uh 50 to $1,000 an hour yeah therefore You know if you make them 10% faster it Goes really well I mean 10% faster I Mean I I I flip it around a little bit And I thinking about what if you need 50% fewer developers you know I mean What is the biggest line item at Companies that build software it's Humans well and Cloud credits but like Whatever I am really curious about what This technolog is going to do to the Arc Of the number of developers there's two Ways it could go one is the number of Developers goes down because we don't Need as many of them or the number of Developers goes by 10x because certainly Everyone is one because they can just Run the creation system themselves it's The lad um and I think the reason is if You were to think about typing or Spreadsheets you know the spreadsheets When they were done physically there was A person on like a drafting death yes And they had those sheets with cells in It and they were you know writing it and The accountants were doing oh we made a Mistake rip it up start over and you Would go to that room when I started my
Career at land systems in the 90s we Would go and there be a typing pool at The law firm they still had some Electric typers and then they had word Processing units and then eventually Attorneys started using keyboards but Those the same attorneys were like I'm Not a secretary I'm not going to touch a Keyboard that is like just like we might Be like I'm not GNA write code get a Developer for that now it's just like ah I'll write code um it's not that hard And so yeah so I mean but in your Analogy though then writing code is Going to eventually become something That is both considered to be menial hum Drum and low skill like you know Typing is a skill for sure especially Back in the days of type writers because You can't do what I do which is just Playay T you know spray typos all over The screen I'm just I'm very excited About seeing which of these startups From the the great group of them that Are working on this does come out as the Winner let's make sure we make that a Category on the twist 500 like Specifically AI for devs because that's Like worth tracking I was thinking that This is kind of under the static team Size and AI meets reality cuz one thing We did talk about a couple months ago Was hey you know not every Enterprise Generative AI software service is doing
Well or meeting up to kind of Expectations but here I think we're Seeing static team size run into AI in a More positive sense in the trend Perspective like I do think this is a Place people are having impact and Developers you know love this stuff and That's why um GitHub co-pilot is doing So well gitlab has one Amazon has one And a bunch of startups so I will make Us a new theme to to match this there's A tweet from Michael cyol that I have Been sitting on for a couple days and um He said Michael cyel of course formerly Head of YC now just one of the partners Over there someone that I've talked to a Bunch I like him a lot um he said too Many startups and investors are Exploring the B2B opportunities with Llms and not enough are exploring the Consumer opportunities this is the Moment consumer Founders have been Waiting for And everyone did SAS Jason forever Because it worked s out the companies Make a lot of money huzzah is the Generative AI moment as it is a catalyst For a new wave of consumer servs like we Haven't seen in a while I'm just curious If you're seeing deal flow along those Lines um you know you are seeing it in The social media apps like Facebook and Twitter having grock and I'm seeing People make images inside of Twitter and
Then post them you're seeing something Similar on Facebook so I do think the Big companies are going to keep adding To it but yeah I would like to see more Folks look at say Yelp and Google you Know local and say those Services Finding local you know vendors finding Local restaurants coffee shops now do it With AI you know take anything out there And do it with AI now you're in a race Versus the incumbent to add AI but an AI First version of Yelp would be quite Interesting yeah you know where it's you You don't show up and start doing Boolean searches or clicking off buttons You just say I'm looking for a sushi Place uh in Austin that's open Monday Nights that has an ocasa menu and show Me some great photos and boom it does it You know I wonder if the consumer thing Here could just listening to you Describe this it feels very personal Because if you know I don't care about Sushi and Austin because one Sushi is Disgusting people shouldn't eat fish It's gross and two I don't live in Texas But what I do want though is my own Thing that I talk to that has all of my Context built into it so I wonder if the Consumer killer app here is just kind of A personal agent if you will and I would Love to know you know who's working on That but um enough about AI let's talk About Jason's favorite company in the
World which is Uber and my favorite Company in the world which is wh because Jason they are teaming up in a new way Friday they expanded their partnership Uh I'm going to quotee here they're Going to quote bring the wayo one Experience to Austin and Atlanta only in The Uber app beginning in early 2025 this is big freaking news the Exclusivity really hit my uh the hairs In the back of my neck cuz it feels very Like a deep integration versus is a Lightweight partnership okay so Important for me to do a couple of Disclaimers here I don't have any inside Information you know I know Dar you know Uh but I I don't talk to him on the Regular and so uh it was always Travis's Thought that when this happened Uber Would be participating in the technology In some way they had their own Autonomous unit and that if other people Produced autonomous cars they would be The fleet manager or work with Fleet Managers now why do you need a fleet Manager well cars require maintenance Yeah people puke in the back of cars on Saturday nights they need to be cleaned Uh cars need air pressure in the tires They need to be washed you know there's Uh maintenance that you know if they're A gasoline car they have to have Gasoline in them you get the idea and Brakes you know all the standard
Maintenance so it makes sense that if There's a range of providers and you've Got an established Network MH of 250 Million rides per week MH and somebody Makes a great car they may just want to Focus on making that great car uh Mercedes and BMW don't run cap companies They also don't run run Renta car Companies it's enough work to produce a Mercedes or a BMW or a sprinter van they Don't run fleets of Sprinter vans and I'm sure they've tried I'm sure they've Thought about being in herur is business And so what you realize one business is Manufacturing one is software Development and one is running fleets The other is running a network so if you Were to take those four circles and you Start overlapping them Uber has a Network uh but they don't make the Technology they have investments in a Couple of companies you have byd makes The technology doesn't have a network You have weo testing a network in San Francisco and La they don't make the Cars but they make the software Tesla Makes the cars and the software but they Don't have a network so you know and They don't have Fleet Management so you Start getting into all of this it feels Like it's going to be hard for one Person to do everything it was hard for Uber to try to be a technology company To make this it's going to be hard for
Weo to deploy this in you know a Thousand cities around the globe uh it's Going to be hard for Tesla as well um And it's going to be hard for Tesla Owners like if you're I'm a Tesla owner Do I want my car in the network and Somebody puking in the back of it or Whatever you know I need my car during Prime time do I want to put my car into The network during prime time no uh I Need it available so the times I will Put it in will be when I'm on vacation Or I don't know when so I do think There's a lot of complication here a lot Of heavy lifting and I'll just leave you With often deep Partnerships that are Exclusives result in mergers and Acquisitions yes I can see where that Would Trend the interesting thing is Uber historically Has worked with people who have their Own cars and weo has had to handb build Its own technology because you know if You're at the frontier you can't go to Walmart and buy it off the shelf in time Though once weo sorts out more cities More data more I I can see them Licensing out their they hardw to Someone else to build maybe Mercedes Builds the cars and then you know the Aggregation of demand stays on Uber's Side but in that division of labor I Think Uber is the the fleet provider Which they're not mostly currently right
Now and so that would have to be a new Competency or cost center maybe for Uber But they're savings so I can kind of We're not going to end up with the same Companies at the end of this is my point They're going to look different because They're going to have to start deciding Where to play but what I care about is This feels like acceleration like this Is more cities more Partnerships more Driverless cars out there there Therefore more data better models more Safety more speed I I just want to fast Forward this by 5 years Jason I'm I'm I'm too impatient for the progress here But it is good yeah the co- CEO Teedra Spoke at all in Summit uh last week and I asked her about these things and you Their number one goal is to deploy the Technology widely so I said to her okay If you want to deploy it largely why Wouldn't you do what Android does which Is open source he said open source isn't On the table I said okay if you want to Deploy it widely why wouldn't you sell It to car manufacturers she said that is On the table I said okay I said what About partnering with ride haing Network She said that is on the table and then This announcement came out on Friday lat Later in the week when the stock went up I don't know 5 or 10% based on it uh Yeah yeah so I think what we'll see and To your point like uber is not in Fleet
Management right now MH there's two Possibilities here one is they work with Existing Uber drivers and fleets because There are people who own multiple cars And essentially run fleets now and they Find drivers and have them use their Cars for the drivers you know if they Were let's say immigrants they don't Have to worry about insurance buying the Car they just can drive the car Essentially and so I think they'll work With the existing Fleet managers and Those Fleet managers out there will Eliminate the drivers because they they Do work with them already and they'll Just deploy the cars and clean them um If you look at the economics Uber takes 25% generally speaking the driver gets 75% so I'd love to see the economics of This deal let's say they give you know Weo might be very happy to get 50% 60% 75% of this and not have to deal with All the other stuff they could just Focus on software making the cars and Then let's say there's a who's going to Pay for these cars weo just said they're Going to raise five billion yeah Uber is $150 billion company five billion I Think that buys like 50,000 cars it's It's a lot of vehicles yeah yeah so 50,000 cars you know if they're doing You start doing back of the envelope Math you know okay if they do 10 a week If they were to do 10 rides 50,000 is
500,000 if they do 100 rides that's 5 Million he maybe they could do 300 rides A week each that would be a lot uh maybe 400 rides a week so you start to realize That maybe with that5 billion investment They can do I don't know 5% 3% of what Uber's currently doing which is another Way of saying you're now going to need a Hundred billion dollar in cars and then Somebody's got to manage a fleet of not 50,000 cars but you know 50 million cars Maybe five million cars as this thing Grows from less than 1% of people using Ride sharing to 20% so if the p goes 20% It goes 20x I mean we're talking about a Large number of vehicles and even if Tesla's entire fleet was in the network They might have 7 million cars I think They produced to date yeah let's just Say they they produce two million cars a Year and they have all seven million in The fleet if they're producing two or Three million cars a year they would Need decades to fill the demand so yeah That's I guess the the Big Challenge Here is I don't think one company gets Their Alan I'm not just talking my book I've sold a lot of uber you know uh Before it was public I still own a lot I Could sell my shares anytime and just Buy Google Shares or Tesla shares and Play the other side I actually think the Piie is going to go from less than 1% to 20% of rides either induced or replaced
Public transportation or new rides is Going to go this way and I don't think Young people are getting driver's Licenses so be a decade Journey I don't I don't think so on the driver's license Point I agree also just as a as a parent Who lives in a city I think the first Place we should get rid of human drivers Is the small side streets just because People drive like absolute idiots and They're distracted and they they don't Watch street signs traffic lights turn Signals it's brutal just trying to keep My kids from being hit by cars so I I Would I would love that all of this Makes me very excited the thing is I was Leaning towards as you were talking Saying oh okay well think about it if Everyone needs to have a new Fleet it's Going to be larger two companies GM Tesla because GM has Crews Tesla has its Own self-driving they're already Manufacturing but even them put together Can't make enough cars in the near Future to come up with the amount of Capacity we need for our relatively Optimistic view of where this is going So there's there's like a a hundred Billion dollar or $200 billion in spend Missing that someone's G have to come up With and I I think go back to earlier Point weo Uber whoever it's going to be Someone's going to have to write that Check and you know who can afford that
The federal government and big Tech That's it yeah and Uber is part of big Tech you know Uber could at any point in Time say the public markets we're Raising 10 billion or do a bond for 10 Billion to buy these cars from byd and Even if byd has a 100% tariff on it a $220,000 car going for 40,000 into a Ride sharing network still pretty great Deal so I absolutely I think that's the Thing people people like to think of the World as winners and losers if we were To look at Ecommerce Amazon and Shopify Both crushing it and then other Legacy People Target Walmart still crushing it Instacart still crushing it door Dash Uber's crushing it toast crushing it Toast is crushing it so I think what We're going to see is as dynamic as Uber Has been and lft and door dash for the First for the last you know 10 plus Years in terms of our imagination of how The world could change yeah I think That's like the epilog to the story The Autonomy end game Is upon us this is the beginning of the Autonomy end game we will be sitting Here in 10 years and the number of People who have cars is going to have Driven dropped significantly old people Are going to stop driving completely This idea that 70 year olds have to Drive that's done you know people over 60 are going to stop driving because
They have money and resources so they're Going to move fully autonomous and then This next Generation our kids you know When your kids start you know in 15 Years driving my kids in three four Years and 10 years respectively you know They start driving in the next decade They're not going to drive no I mean I'm Going to teach them to but they're not Going to need to learn and they're Certainly not going to spend all their Hard earned cash buying a car why would You it's a depreciating asset that you Use 3% of the time yeah totally agree With you that I'm just giggling because I learned how to drive in my dad's F250 Uh on logging roads in Oregon big manual V8 and um I used to kind of think about You know am I going to teach my kids how To use a a manual transmission and wrong Question the question is will I teach Them to drive at all because our new Daughter's two weeks old which means That she is 16 years away from the legal Age of driving in the US and 16 years is A is five eras in technology I mean That's a long way from now it's a long Way from now long way and um you know There's been I think Uber is setting Itself up to be uh a platform they have Byd buying 100,000 cars and putting them In out there they've got wave AI they Just put money into last week Cruz They're restarting Cruz Cruz is going to
NG GM is going to be looking to Uber to Run that side of the business ride Alto And now this wh odl and they've got a Couple of other Partnerships um and They've also invested in a couple of Companies like the Aurora I think is the Spin out that was their autonomy and why Did they close the I mean there's a Question from our live audience here um And we go live on YouTube when we do These news programs you can type in this Week and startups And subscribe and hit The Bell you'll get an alert when we do Why did Uber stop uh its autopilot Program they were doing too much uh and When D took over he said we're going to Focus on a small number of things and do Them really well part of that was Culture part of that was regulation and And then part of that was dealing with Uh legality around independent Contractors getting back on the road in London you know selling their shares in Different regions where they weren't Going to compete so there was a lot on His plate and you know I think they did The right thing by becoming a money Printing machine now the only person who Can really go it on their own is Elon And Tesla in my mind I don't have any Inside information there but you know I Do think he shared an app and he has a Unique ability and they're going to be Announcing on October 8th I believe the
Rumor is they're going to show like a Two- seat dedicated car that will go Into production in the next couple years That they could flood the market with That's my prediction they could flood The market with a two-seater that cost 25,000 but only make it for robox so you Can't buy that car oh and therefore Protect their that protects their gross Margins on their actual core on on their Core business or their existing business Okay you still have to buy the Y you Still have to buy the model 3 yeah yeah Yeah and S you can't buy this two-seater Car even though there might be demand For it that one they produced with you Know Bare Bones two-seater with stuff in The trunk if you got four people with You just take two of them yeah why not They're electric and they're cheap like That's ah it's gonna be fantastic yes I I will say I have a smart car you know You know what my neighbors have a smart Car you know what their kids have a Matching smart car so often they Park Their two smart cars back to back it's The funniest thing it looks like two Jokes just come together I like the Mini Cooper better that was my first new car I ever bought in my life was a Mini Cooper the second year I came out I love The Mini Cooper wow so that would be What year was that gosh it had to be 2004 or five yeah yeah have you ever
Been in an original Mini the old British Though I've seen them on the streets in London and in Paris where like parking Is at a premium yeah those things are Real small you think a mini is small Stack it next to that it's very Different now thinking about things that Might be getting smaller the interest Rates might be going down this week Jason we are finally on and I we're Going to get this quick everybody I'm Not going macro on you but it is Ray cut Week so Jason we got to get some uh some Predictions on the board here 25 basis Points or 50 basis points what's your Prediction for this week's fed cut I Mean think the prediction markets are Saying there's a de chance 50 to 70% Chance of a 505 cut I think that might Make them look a little bit desperate That like maybe they waited too long I Am a fan of 25 25 25 just consistently Doing 25 while you get more information In other words they were late to raise Rates and that kind of created a bit of Chaos obviously we saw with Silicon Valley Bank and dated bonds and Treasuries and everything so I I don't Think they want to flip the market here And look panicky just think like every Month 25 get more information look at The employment picture now I do think Politicians specifically in kamla would Love a 50 or 75 because what happens
When you cut rates stocks go market go Up stocks go up I don't care anymore About this stuff because I just like the Idea of Predictability and calm in markets and Thoughtfulness whether it's politicians Or our monetary policy I like Predictability I think they get that They need to be predictable and Independent of administration so people Are saying like this was all done in Some Grand conspiracy I don't think so I Don't think they wanted that whipsaw That happened with Silicon Valley Bank Also they would have I mean let's be Honest if KLA and um and Biden were Secretly running the FED behind the Scenes yeah interest rates would have Come down already like do that do that In the second quarter and then you go Into the debates with a roaring stock Market you go into the third quarter and Then all of a sudden it's November and Hey look it's been six all people know Is six months of going up instead They've been dealing with the highest Interest rates we've seen in you know a Generation um I'm team 50 just because I Think it's time I think we're a little Bit late the labor Market's gotten weak Enough that I think right now a shot in The arm is more important than the Optics of it but I do very much agree That no matter what this first one is
Either a treat or just an expected snack Consistency moving on as forward I I Think we should get down to like 3% next Year three three and a half sounds Pretty good to me so a smooth path there And um it would be good for exits it'd Be good for IPOs it' be good for stock Market prices startup valuations like This is going to be a holistic good and Maybe it's going to make next year a lot More fun than this year for folks in Your profession Jason the the investment Community I love my job and I do it Independent of this hand ringing and if It's a little bit hard and there's Headwinds I consider that part of being A pilot and sitting in the seat that I'm Lucky enough to have you know if you're A quarterback and you get sacked once in A while and you eat a little dirt well You also get to be the quarterback and Throw the touchdown pass and so I I I I Take the go with the bad this has been Brutal the last three years uh with no DPI coming out of funds no m&a LOM we've Talked about it here over and over again And this crazy political cycle just like Get to end the political cycle end the Whipsawing stop steering the car all Over the place and slamming on the Brakes slamming on the gas we don't need To ever go back to this zero interest Rate phenomenon as far as I'm concerned It's healthy to have people be able to
Make a little bit of money from their Savings and understand that savings is Virtuous and you know it obviously I Think um puts a little pressure on my Profession and other people's Professions to perform above whatever That number is yeah The risk-free rate and so I like that And when it's zero it's like well where Else do I put money I I have no choice It's got to go into real estate it's got To go into equities it's got to go into Private equity and Venture there there's Nowhere to put it if you don't have that So let's keep it at three and a half Like you're saying let people make a Little viig on their money and and and Compete for those dollars those Investments my favorite email that I get Every month is when my uh my money Market accounts give me free money and I'm like thank you for the free money Look at that cash because when I started Building a real emergency fund interest Rates were zero so you put in any amount Of money and they flipped you a quarter At the end of the year and we're like be Grateful and that was pretty tough you Know what I did I I was looking at the Pr I stayed at the Beverly Hills Hotel My friend freeberg sets us up there for The uh for the summit nice it's a bit Pricey and I'm at the pool uh it's quite A nice place to say quite charming and
It was $50 for a penac colada $42 for Chicken fingers a frappuccino was $25 For like in coffee beverage with no Booze in It because and then I was at shuters my Favorite hotel to stay in Santa Monica I Moved out when it was on my nickel not The conferences I moved to shutters Which is still a pretty penny don't get Me wrong but it's like a third of the Price and it's on the beach my favorite Hotel to stay in on the west side and You know what I did I ordered Uber Eats For every me I didn't order room service Once because the room service bill is Literally two or three times the Equivalent and you get better food yeah And this was the first time a hotel was Not passive aggressive and sending it up All these other hotels make you come Down yeah as punishment for ordering not From the room service menu and I'm like Can you send it up like can't send it up You have to come down I'm like but you Can send me up a shush a toothbrush can Come right up I so like when you stay at Like a mid- tier Hotel they won't send It up and I understand not sending the Uber Eats or door Dasher into the hotel Randomly but I mean you got people Val And then I give him five bucks still Cheaper I get to try all the great Restaurants it was wonderful so shout Out to my uberit and door Dash I I just
I feel whenever I'm getting charged an Insane amount of money for something I'm Like you have me in some sort of arm Twist like if I'm at a concert and I Need to get a bottle of water I Understand that I'm going to pay $7 for It I'm not going to be furious but I'm Thirsty but when there's options man I'm Not I'm not paying 50 bucks for a frozen Coffee that's going to be middle at best Well and Travis and the all in Su we did Release the video he showed one of the Things they're working on with the some Members of the former autonomy team at Uber went to Cloud kitchens randomly They just applied I guess they got in And they have this new machine you fill The machines up tomatoes lettuce chicken Barbecue chicken steak and then it you Know does a little swirl the bowl comes By and it puts everything in the bowl Then it puts a little sauce on it and Then the bowl goes into a bag and then The bag comes out the end and it has the Label on it and the driver just picks it Up and there's no intervention so like You know these bowls you get in Australia Bowl culture yeah so here it Is we're showing it from the all in Summit and uh you can see like they made Their own Hardware to do all of this you Know purpose built those are the Containers and so this is this means Fresh healthy food 24 hours a day and
You're going to take out I don't know if There was a back order you could be Taking out a half hour of time right cuz This thing can just churn and you see How many bays it has there it looks like Some crazy 3D printer and it's not Printing the food but um they 3D printed All these parts to make it and there Goes the cardboard uh through the Machine on a conveyor belt and right Into the bag boom so this is coming to Uber eat soon and they're going to be Able to make you a breakfast bowl a Lunch bowl a dinner bowl whatever it is A salad and you're done and the folks Over at um uh what's the salad place Sweet greens sweet greens we had the the CEO on the Pod yeah they uh they also Have this technology they're working on So yeah Brave New World autonomy the Autonomy endgame is I think what I'm Going to dub this theme everyone to Dev And the autonomy endgame I got to take Notes everybody so I don't forget it's In the show we got it in the show we Make a lot of content here Jason it's Good to have notes that way I don't have To scrub through my own video one of my Favorite Parts about you is that you Take notes that's why you're a great Journalist obsessive about it because my Brain currently especially because I Have a newborn is made of Swiss cheese Baby brain and you gave me an assignment
On my first day back uh which was here Is a Mr Beast uh leaked production Document it's 37 Pages uh summarize that And have it ready to go for the show so I did uh I got to read lots and lots of Uh of Jimmy Yeah I I honestly Jason there there's a Lot of you in here it was kind of funny Because he's very clear about what kind Of person he wants how he wants them to Communicate and what people should be Obsessed with and also there's a lot of Clarity of goal so if you read this and And you want to learn how to make YouTube videos you will learn how to Make YouTube videos but more it struck Me as how to run a a high- performing Midsized company that has successive Recurring deadlines like this is a Company that has to ship by definition Because they are producing something That consumed and then loses value and There's a lot that I that I really like So I'm going to just call a couple Things out here what is the goal of Someone joining the Mr Beast production Organization really simple one sentence Your goal here is to make the best YouTube videos and he goes on about this He's like look we are not Hollywood We're not trying to be Hollywood we are Trying to be the best at YouTube that's It full stop so Clarity was huge in this Document I really like that and then for
Example another one what is the goal of Our content one sent his answer he goes On but he says to excite me I like it Yeah Haste it's and also if you are building For everyone you're building for No One But if you're building for Jimmy and his Sensibility is I want something exciting I want something that's Snackable like a 20 minute or 10minute Thing okay and it's a YouTube thing and You know one of the great things about YouTube is because it came from Google Uh and they took it over so early it's a Metric driven platform so you can see How you did in the first 24 hours of a Video you can see when people drop off And so everything for him and I I've Talked to him about this uh personally I've played cards with him a couple Times and he's a fan of Wallin pod and Some of my friends are involved with his Business um so he believes like you got To get that first minute right you got To have a bunch of edits in the first Minute Once you pull people in then There's like the setup for the first Next couple of minutes and it's very Much like the threea you know screenplay In Hollywood and you know these Screenplays were kind of built into a Science for Our Generation they they Backed into what makes you know I don't Know Silence of the Lamb Star Wars you
Know pick an iconic movie Rain Man into That and it's like act one act two act Three the resoltion And the the journey and like the problem Solving in the middle act and uh all That great stuff so he he's kind of Produced I guess a Playbook here that Really works for him now if you're not Doing stunt reality television I'm not Sure this is applicable to every Vertical but it certainly there's Lessons in there any other lessons you Took from it Alex well uh Clarity of how To get good from him uh quote get rid of Netflix and Hulu and watch tons of YouTube like don't don't go drink from The pond we're not you know fishing in Only double down on this again back to The clarity and focus Point notes in There about communicating how to Communicate inside of an or could go up Then over don't go over and then up that Way people who are have teams know what They're doing um there was a big thing On creativity saving money which I think Is his way of saying that constraints Breed Solutions essentially yeah um he The example was about Doritos he like if We say we're going to give away $220,000 To the winner of a video no one cares But if we say we're going to give them a 10-year supply of Doritos it could Actually be less money and it's way more Exciting so creativity saving money and
Then I I love this at the very end one Of his last kind of like notes was never Do anything that can make us look bad From a PR perspective which is not a bad Thing to have in your document and They've had challenges like doing these Kind of all the YouTubers have had Challenges around you know when you're Doing stunts uh or you've got Contestants yep Fear Factor had this Issue everybody's had this issue all the Reality TV shows and he he's got that Reality TV event um you're going to have A lot of issues and so I think that's Very wise do not do anything that would Embarrass the organization I want to Throw one more thing in here though now That I'm just thinking about it this is Not a polished dock there are typos There are he he writes haha at one point In time like there's a lot of just very It it it's like he sat down and Literally wrote you a letter and that's I think actually why it's very effective Because if it had been McKenzie or BCG You know it would have been impossible To understand but here is a a very Quotequote founder mode document from Someone who knows what he wants from his Org and how he has gotten it Historically and I just I I think that People can people mistake polish for um Quality in writing and I think here we Have the inversion of that the Polish is
Is crap the writing and the and the Actual information transfer Jason VAR And so that that struck me as impressive I'm not shocked that he's a smart guy But he's smart yeah I think this quote Is the one that's worth pointing out you Kind of previewed it here but I'll just Put it on the screen for a second your Goal here is to make the best YouTube Videos possible that's the number one Goal of this production company this Actually relates to the Purpose Driven Church um a famous book where it's like Each church has to have one thing they Do not everything um it's not to make The best produced videos period not to Make the funniest videos period not to Make the best looking videos period not The highest quality videos dot dot Capital it's to make the best YouTube Capital Videos possible everything we Want will come if we strive for that Bgie sentence sounds obvious no comma But after six months in the weeds a lot Of people tend to forget what we were Actually trying to achieve here so this Is a very like almost like somebody Transcribed him in a meeting or or Having a drink after work and I think This is critical because when you have An organization that gets bigger uh you Want people to point to something and You know I I tell that to folks here at Our investment company we want to do the
Seed or preed round of companies and we Want to help them get to their series a That's the goal we want to find the best Companies with technical co-founder Multiple Technical co-founders and Product velocity and get those folks to Release a product get traction and get Followon funding or What's called the Pull through in our industry and we Track pull through 33% of our companies In the first year pull through to Another round or so you know just Ballpark figures here sure and so if They're not pulling through to another Person investing at a higher valuation From us what did we do wrong is what we Have to ask ourselves did we pick the Wrong team the wrong idea did uh did This team team not achieve product Market fit did they know what they Needed to achieve in order to get Another investment did we not introduce Them to the right people did we invest In a category that VCS don't want to Invest in like event planning you know Apps like what we're going to do this Weekend or you know split the bill apps You know things that are maybe not going To be large businesses and not enough Tam so we know why people will not Invest the team's not technical the team Doesn't have product the team doesn't Have product Market fit the team is not Going after a big enough market so we
Should be asking those questions early And we should be communicating that to The founders hey we're going to have you Come to our accelerator we think the Downstream uh investors are going to Think your Tams too small what's our Strategy there and then we just hear Their answer yeah we're starting with This this our beach head and then we're Going to expand into this larger beach Head and we're going to go International And that makes it a billion dollars in Revenue a year Bo okay good enough for Us let's go yeah Clarity of vision I Mean I would boil down your your launch Proposal there too we help the next 10 Billion do tech companies reach their Series a or whatever but I think you Could you could probably jeal even more If you were doing a similar similar Document but just knowing what you're Doing and this is I think where we see Rot at large companies because if you Think about like what Google does as a Company it does like 55 things and Inside of it everyone's vying for Probably a bit more like self-focused Like progress inside the org versus like The goal because I don't think you can Have 50,000 or 100,000 people sharing The same goal because you can't Coordinate work like that I I I would Love to learn more about like management And systems theory to understand why big
Companies end up always looking and Feeling and acting the same in ways that I don't appreciate there's probably Something here found there's a whole Segue into founder mode yeah well but Given that you've got a kid right now I Don't recommend you getting into founder Mode yeah Dude I I have two Founders at my house And I am the thing that is being moded Uh there's a lot of okay one little Story um have you seen the cars that Children can sit in they're plastic and They have a handle behind them you push Them around yeah they're like strollers Yeah we didn't have one and now we do Cuz our Nanny's former family outgrew it So we got it as a hand-me down love Hand-me Downs by the way as a parent People give you the best stuff uh anyway This car is terrible cuz it has plastic Wheels and a demands that I push her Around the neighborhood constantly and It's the loudest thing and it sucks so I've been bullied into that by a 2-year-old so that's what I've been Doing there's one of those that has two Seats that you'll be doing soon enough Where one's in the front one's in the Back and we had twins yeah oh we did the Side by side double stroller not not not The not the yeah I know what you're Talking about we were awesome we we Bought tons of stuff and then we just
Put it all out in the driveway and our Friends who were having kids we said This SU Everything must go take it on Sunday or It's going to donations people came God Bless them and their families you know Didn't have to buy this stuff because You use it for two years and it's done Yeah people has some of our neighbors Had us over for brunch and and literally Had a room set up of we are going to Donate everything you don't want but we Have two daughters you're having another Daughter come pick and so we left with Like you know loads of stuff cuz I mean Newborn onesies you don't wear for two Years you wear for two months maybe I Love the idea of like we put all of our 14-year-old clothes as she got older her Age and her size put them into plastic Tubs put it in the garage then the Eight-year-olds now when they hit her Age we take out the box and they raid it And it's like oh this is cool stuff Right yeah so it's just absolutely Fantastic otherwise you spend all your Money on parenting stuff um but Jason we Are back to doing News live so next week We're going to uh go back up to two I'm Going to quickly get back up to here Awesome it's great to be back man I miss Doing this to have you back and uh yeah Next week we'll do two and in the Meantime lots of great interviews twist
500 is growing and you're doing those Short ones let's keep uh doing some of Those short ones and we'll see you all Next time byebye
