Silicon Valley, Peter Thiel, ABC discussed on Capital Allocators

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I was able to raise with my network most of the remaining four hundred forty million dollars raised but it was really really great to have him and have a help early on it turned out that the way we understood entrepreneurship way we manage things are preferences provide different gone through fewer bigger things having a lot more people on my team still a lot more more connections in the network. We held a lot of events I like doing lots of thesis papers and whatnot so we have different ways of doing things the most team came with me and we split off our third which now call ABC. I see so what you're segment of venture landscape. Today venture capitals obviously at much larger asset class than it was ten or fifteen years ago which which makes a lot of intuitive. It's much bigger part of the economy right so used to be in venture capital that maybe you'd have people coming to Silicon Valley. Who are the does or who run different special initiatives for big companies companies. Now the people coming in Silicon Valley are the CEO's the fortune five hundred companies. It's the people who are actually making the decisions and actually out the corporate strategy for the biggest companies in the world. That's fraud reasons right because the technology is redefining. What's possible in these industries so venture world has become a lot broader and causing a lot more things than having to do a lot more money at stake. How do you stay competitive entry. Actually a few different things at say one is that the people who are running the top venture firms right now are almost all founders unders successful companies and so as someone who's founded a few quite successful companies as big advanced hunters. WanNa work with our founders and if you look at the very big names venture capital obviously Marc Andreessen very well known enter Peter Thiel who I work with learn a lot from or Marceca sauce on the board of is there starts. I've learned from both those guys or if you look note Khosla or even Reid Hoffman did linked in who's with the the pay path list goes on and on like all these same people have heard of their founders of big companies and so there are very rare exceptions from the previous generation. I think March is great exception of someone who never found that a company and I think you could do that in the eighties or nineties and be aggressive capless. It's very rare these days so first of all being a founders advantage. I think second of all being in touch of being close to lots of other founders is very important. Jordan says one thing we've spent a lot of time doing is we happen to have a lot of friends who built companies. We've enjoy spending time with them. It's not my social life is here in Silicon Valley interacting with other founders and that's you have to do that to do things well counters that wants to know where the town's going what's going on. They're kind of decor top than our way to put. It is an L. A. If you want to know what's going on you probably I want to hang out with the list actors the diplomatic them in DC pylon like with the senators with people around the president of the heads of agencies. The founders are the ones who run things here in Silicon Valley number one one so let's walk through kind of step-by-step your investment process and just start with where the ideas come from the end up investing in a Lotta ways that come from half of the deals are and referred from other founders. We're talking about a lot of them. Come from looking what we want to build ourselves networks. That's the one thing we do at our firm. That's different than a lot of other firms. Is We still use about ten percent of the fun on towards things we're building ourselves and we're very involved entrepreneurs and a lot of times. I'll be looking at a space with a really really deep on the macro happenings area of healthcare what's happening in Syria. Logistics get to know all the people who are leaders in that field in spend a lot of time with them in based on doing nat..

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