Bill Gurley, Jason, Likud discussed on This Week in Startups
These these. Trawling me. Love. You back. You. Wonder. You know the nature of the audience who don't understand what the word regulatory capture is. Can you define that while I'm looking at up on Wikipedia? Haven't idea because Bill Gurley says an all time. So I don't know the history of decoded investor rule, but Likud is it actually protect and who does it actually benefit? It actually benefits all the large financial institutions that have used the fact that you need to be A. What's there's a credit investor, but then there's qualified institutional qualified air. Something like. John now. To, invest in venture capital funds to get rid chester actally. Yeah their markets are supply and demand. If you're artificially limiting the supply of capital to go into the highest growth assets, you're capturing it for yourself like that's what's going on here. Yes. Yeah, and more abstractly regulatory capture is that the it's kind of like when to lawyers see each other in court all the time so they have reason to be fraternal with each other based on. That long term relationship more. So than the people they represent at the end of the day, these regulators have been regulating the people in a certain business for a long time. They get to know each other really well, and you can make really compelling arguments when you're the one being regulated that the rules should change in some way and they like the regulators tend to listen to you because. You've built up this relationship over real estate brokerage. Be another one like is a real estate broker work totally you or their client buying the house, the seller or are they working for each other? They're playing an integrated game, not a single turn game where their relationship with that person across the table they need to preserve for future transactions. Right and the person we're talking about here is. The real estate broker, not the buyer and seller in all cases like and they're doing all kinds of shenanigans. I had had my real estate broker I'm GONNA, leave it at that who was like listen Jason I think this is the right time to accept his offer because, Joe Biden you know is going to get an office. It's going to change this and I said stop you right now. Don't ever give Jason Canas financial advice don't ever give Jason Calgon struggle trade. I gave you a copy of my book. Your job is to get me the highest price ever sell me on anything I. Don't want a piece of advice from you other than. Like what's the best new? Restaurant to open and he said, coppee. Each any robot cope each. And my wife was a you're too hard on him and I said, no. These brokers are always trying to work you because. If they sell your home for a million dollars nine, hundred thousand or one point one, they make you know whatever that is two or three points on that it makes no difference. So this is actually I heard this I can't remember I read this the other day a day but somebody had this great idea. Real estate transactions and real estate agents and brokers. Perfect use case for tiered carry solely. Million you get three percent, you sell my home for over one point two, you get five percent of the ups, their her you get seven percent one, hundred percent. One percent of the million they should get for. Once, you pick what price though zillow and everybody agrees is the right pressure this house let's say it's a million. Okay. You get one percent of a million you get your ten k. you get. Two percent of anything from a million to one point one, one, one out. Then you get three percent of everything from or could even be more it could be ten percent, right? It could be you could get one percent on the first million and then ten percent on everything past then I'd. Sitting around, but they will do that. But I sold the other house I saw recently I did I did a buyer transaction you know my legal fee was. Twelve thousand dollars. It's a lot better than this is on. This is on a significant house to men like this is not on a one million dollar house. I'll just leave it at that were shocked. Yes. Longer than US Jason knows you're GonNa be there because I'm getting you in remote our and we're GonNa ride that into the sunset. I got a couple I got a couple of we gotta do some deals boys. We get some deals go and man, you guys got my phone number. You can. Let's get on a phone thread going here I message just start sharing some deals make some money. Let's get some conflicts going consciousness back. Well, that's the next topic and we'll close on this. SPEC. IPO's per year special acquisition, special purpose acquisition. companies, corporations one of those two words, my friends, Corporation corporation my friend mouth brought these back to life three years ago I was at the poker table talking to him about him. When he did IPO A was looking for a company. As you can see in the two, thousand sixteen, we had thirteen of them. Two, thousand seventeen, thirty, four, two, thousand, eighteen, forty, six, twenty, nine, hundred, and fifty, nine, twenty, twenty, eighty, and counting. and. So this is taking off and you can see the chart there if you're watching the video youtubecom. Subscribe to this week in startups to see the video. And I just literally had a wonderful moment. My friend Rick full up damned me and said I need to talk to you and I was like, okay here we go. We sold desktop metal which he got me a little. Yum. Yum Sisa in the early first round and he said I got some good news. I. Said hit me what's the price and he said we're going public and I said what he said yet, which back it out and that was announced yesterday. So now J. cale has uber desktop Matal in a little company waiter that we have a diminished misnomer shares in but at least get three. IPO. Companies these three companies in you know the first hundred investment. So three percent gone public plus it's still early I. Maybe it's the first hundred fifty. I'm not sure of the desktop mental Kurt I'm losing track but I mean, obviously, robinhood com, there's a couple of other companies that are being spec thumb tack data stacks that are being speculated, but these are changing everything. And I. Our good friend Bill Gurley. Who has been lobbying against the wealth transfer that occurs during regular IPO's he was on the direct military capture regulatory literary capture. He was talking about direct listings with spotify did but a very hard and painful specs are very easy and painless, and he just wrote a blog post which sure the two of you read called the third door and he is now on board I would not be surprised. They do not have any answer information if Bill Gurley. who is on his last fund with benchmark. would. Pop Open. A couple of benchmarks packs I. Don't know that I'm completely speculating there. But my best EC Timoth is now on his third or fourth back and I don't have any inside information on those but I would never bet against him authored Bill Gurley what are your general thoughts, David? Question First. Jamaa. Literally brought. This thing will not back from the did he did he disowned one? Yeah. What What inspired him where'd you get the idea? That's a great question. I think you know he at one point we had a deep discussion about this. You know he he he grew up very poor. We came from Sri Lanka had nothing he worked his way to where he got. He got a series of lucky events. We were both at AOL at the same time. We were both at what's called an VP, which is blown EDP, which means you're basically you get to go to meetings with Ted Leonsis and..