The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
00:52:30 · Rory O'Driscoll, Harry Stebbings
[00:52:30] S1: Yeah. I mean, if you invest in Venture when you're in the big outcomes, it's good. And, you know, they've had a few lean years, but I you're going to see that. I think one of the other universities who went in direct into SpaceX have made out even more like a bandit. I think it's Washington University, I wouldn't swear on which university, but someone did really well. So yeah, I think it's going to be a thing. It's interesting when it's concentrated in only few assets. The good news, if you're an... If you're a manager, you prob... Not a manager, but if you're an LP, you probably have some exposure to that. So, yeah, you're gonna see a lot of this weakness. [00:53:00] S2: If you are an LP and you do not have exposure to anthropic OpenAI, or SpaceX, you are you are feeling a lot of FOMO right now. [00:53:08] S1: Of course, you are. Yeah. [00:53:09] S2: And and I think the venture market's about to get a lot hotter, by the way, because a lot of people are starting to get cash back now from SpaceX. They're seeing Anthropic on the horizon, and they're hoping for OpenAI on the horizon in q one, q two. And I think we'll start to see that cash recycle back into the ecosystem that provided it. And I think LPs will come in with more money intervention.
00:53:09 · Harry Stebbings, Jason Lemkin, Rory O'Driscoll
[00:53:09] S2: And and I think the venture market's about to get a lot hotter, by the way, because a lot of people are starting to get cash back now from SpaceX. They're seeing Anthropic on the horizon, and they're hoping for OpenAI on the horizon in q one, q two. And I think we'll start to see that cash recycle back into the ecosystem that provided it. And I think LPs will come in with more money intervention. [00:53:30] S0: In 2021, the average college and university did 36.6% from venture and PE, 41% was top quartile, and Cambridge had 62%. So the Harvard's great, but I'm waiting for a banger '27. I want to get back to the nutty IRRs that we saw in the last boom. The outcomes here are an order of magnitude larger, maybe even more than magnitude larger, but I want to see 60% IRRs. Good job, Harvard guys, but this is no 2021 yet. I [00:53:59] S2: feel that 68,000,000,000 is pretty impressive, to be fair. Yeah. Yeah. It still matters. [00:54:05] S1: The 68,000,000,000, you do remember they are the oldest university in America, so they've been piling the money up for quite some time. [00:54:10] S0: Wesley, a 95.3% returns in 2022 from the 2021 invention p from 95.3% returns, Wesleyan. [00:54:18] S2: Wow. Any others that I've missed, boys?
00:54:18 · Harry Stebbings, Jason Lemkin
[00:54:18] S2: Wow. Any others that I've missed, boys? [00:54:21] S0: I think the... You know, the Tesla one, I think it's the last thing we're gonna see before the merger with SpaceX. I think it's the Swan Song, if you wanna know my view. And I think Elon said it. He said this is the last... He said China's going to take over the cars. This is the last car a human will ever drive. Both of which are clearly true, right? China is going to dominate global EV and autonomy. No one can compete with their cost proposition in electric and otherwise. No And one will drive their own cars in a few years, like literally no one. And I think this is a... I some of the... I don't know why I did all of it. Some of it's clearly for fun, but I think it's the last standalone big hurrah before it becomes one big company over the next six months, which was always Elon's goal. Having this company split up makes makes no sense for him. Right? They'll all be they'll all be merged. And so this is the last the last Tesla party as an independent company. [00:55:07] S2: Is it not the most masterful marketing from Elon? The the brilliance of Elon is the Elon premium and his ability to have extremely high valuations because of his presence. Doing these stunts justifies it like no one else can do and gives it life for another twelve months without any recompense. I think it was brilliant.
00:55:07 · Harry Stebbings, Jason Lemkin
[00:55:07] S2: Is it not the most masterful marketing from Elon? The the brilliance of Elon is the Elon premium and his ability to have extremely high valuations because of his presence. Doing these stunts justifies it like no one else can do and gives it life for another twelve months without any recompense. I think it was brilliant. [00:55:27] S0: Well, that and giving a SpaceX share to every American is pretty brilliant. Kid is pretty brilliant too. I thought of it just from a sales perspective. It removes objections. There's so many Elon haters of which I've never... I think he's the greatest founder of our lifetimes. Politics aside, greatest founder of our lifetimes. I really don't see how I can argue with it. But there's a lot of haters out there. Not just not just on the left. There's lot of haters on the right, like all across the spectrum. Pretty hard to hate them when you grow up with SpaceX shares in your account and you watch rockets blasting every day to the moon and to Mars. Pretty hard to hate the man when you're a shareholder. It's just that much harder to hate someone when you're a shareholder. It's really that much harder, man. It's that much harder. [00:56:02] S2: I don't know. I hate Cool Weave today. I know,
00:56:02 · Harry Stebbings, Rory O'Driscoll
[00:56:02] S2: I don't know. I hate Cool Weave today. I know, [00:56:06] S1: but like... But you didn't get it for free. I mean, the thing is Elon's going to park one share in every kid's account. These, you know, these so called Trump accounts for children is a very interesting way for super rich folks to make meaningful donation, well, make significant donations to everyone if they want. I mean, I think the idea here is literally every kid gets one share in their account, which is in aggregate, I saw the numbers sound like $10,000,000,000 It's real money. So it's a super interesting way. Now, I mean, you could argue $200, some compounding, what does that mean? But it's better than a poke in the eye, and it didn't cost you anything. And because it's associated, as Jason said, with the share, there is an interesting element of marketing to it. So it's good.
00:56:06 · Rory O'Driscoll, Jason Lemkin
[00:56:06] S1: but like... But you didn't get it for free. I mean, the thing is Elon's going to park one share in every kid's account. These, you know, these so called Trump accounts for children is a very interesting way for super rich folks to make meaningful donation, well, make significant donations to everyone if they want. I mean, I think the idea here is literally every kid gets one share in their account, which is in aggregate, I saw the numbers sound like $10,000,000,000 It's real money. So it's a super interesting way. Now, I mean, you could argue $200, some compounding, what does that mean? But it's better than a poke in the eye, and it didn't cost you anything. And because it's associated, as Jason said, with the share, there is an interesting element of marketing to it. So it's good. [00:56:47] S0: Yeah. Cool. Hard to hate the man that just gave my kid a SpaceX here. You can hate him, but it's hard to hate him as much. It's really hard to hate him as much. Right? I mean Michael Dell is going to get some kudos too, but this is the big lift. I think this will just gain momentum too, right? This is the next version of the 111 thing, which was nice, but it's going to remove a lot of the toxicity around the massive wealth creation that's only just begun on a scale we've never seen before and giving it directly back to the people rather than through weird charitable Gates whatever foundation. This is a much, much better way to deflect drama to give it directly to people that the ultra rich should do this. It's brilliant.