17 Burst results for "Joe Lonsdale"
"joe lonsdale" Discussed on The Twenty Minute VC
"Not allow any kind of logical rational pushback on what they're doing, and it's all about. This is the time to listen, not talk, and therefore you have to. To listen to exactly what we're going to implement our policy regardless of any rational discourse, so am very concerned about that culture I anti believe we live in Sandy. Mars issues to my mother about it, because I didn't feel available and free to say actual what I think. Ninety percent of the time because of the public reaction might issue. You know how. How twitter! What's I mean? You have one pass in the nit tons absolute show. Would you agree with me and say hey, we live in not democracy given the lack of freedom of speech well couple of things first of all I think the UK does have like strange online speech laws. Where like the police will visit you for saying things that they? They find offensive. Which I think is just absolutely unacceptable I, think you guys have been huge mistake. There I'm very proud that America still despite everything by law were free, but you're right. There's a lot of groups that you are free by. Law will try to censor you. We'll try to attack you. I feel like part of my role as a leader in. In the ecosystem is stand up and fight against this counterculture in opposing everywhere. Can't I'm not willing to compromise with it I'm not willing to not put forward. Rational discourse strongly believe something that said it does behoove all right now, not to make insensitive jokes, not to purposely provoked the cultural law, because obviously our duty to our companies and our firm is. Is such that we stand for what we believe in, but we shouldn't pick unnecessary fights with these crazy people at this time. busine I totally agree in terms of selecting, which was you're willing to fight so to speak I. Do want to move into Alabama late I didn't often do on a C. in terms of the structure but that was some. Some questions I really wanted to awesome, and they were fantastic suggestions. Routine numbers found is with end so I'm GonNa Roll with Anna Style so as to stay on your team that he seven years, and he's never waited longer than ten minutes from email. If question was, how do you do it? And how do you think about the two of how? Yeah, I struggle with this because I like to think of myself as somebody who's very proactive and I'm constantly researching these new spaces and taking time to go read history economics and philosophy and thinking a lot and applying my views of the world to build things like one nice vision of myself, but then there's the other visionary myself. That is doing six seven hours of email responses and coordination a day and being a traffic cop in being the leader, everyone comes to to get things and to meet the right people as much as Hannah. Try to replace myself with people around me and underneath me, but there's. There's always stuff that has to come back up to me and it's a sense of duty. I suppose I've hired some of the most talented people in the world back. Some of the most talented people in the world are doing very important things that are changing the world in positive ways, and if they're waiting on me to get something done, that's unacceptable, and it's my job to get back to them, and so I guess it's become a mental hack where I have to get back to people as fast as I can. Actually funny I've responded to a few texts while we were talking right now, so. Hopefully didn't catch but I sometimes. It's probably a little bit unhealthy. Honestly I do probably need to have some more space. Charge this, but he's he's right, but I don't reply to an email for freaks. People out because I'm not used to it. I love that I totally appreciate your. You said about race I. Intelligent numbers just by founders lentils a harm. Best talent is made many friends, and they said there are just so many people way you spoke talent before anyone else has and that question was. How do you tell them presented she? And how do you think about Tom? Development and assessment versus going to grow some potential. You know there's a little secret here, which is probably not what you want to tell. People I was on the Peleton this morning. A couple daughter's. Daughter's usually talk about my family and public too much of a three year. Old Is my eldest, and she was doing this fun thing on one of pieces of equipment where she was jumping pretty far, it was actually quite impressive for three looking. She say Daddy. Other little girls can't do this right and she was very proud of the fact that only she could do this and it was very hard thing to do and I think there's something a nate and people where the best. Best Way to interact with them is to help them discover their true scales inculcate skills, and it makes him very proud of them to the point where they do see themselves as unique, and of course they are unique, but it's fine to overemphasize the extent to which they are unique, and so you have to find great talent and I think a lot. More people have a lot of talent than people generally realize and so as much as we talk about finding the very very top. Top talent, it's not everyone has the ability to do these things, but a lot of people have something inside of them that if it's nurtured and inculcated in the right way, and they are made to feel that confidence, they can do truly great things those one and it releases the cash the needed. It's a tough environment by many tightly develops fos downstream seen. How do you advise finalist? Think Bob Trash burning. Rub `way fussed. Yes, this was all mid. March was like the re plans probably. Like seventy re plans, we all had like a plan B. and a plan B. Minus a plan C., and the had to see where things are going, and most people are either on their plan. B B, minus because the economy has not been as bad as people thought I'm generally really conservative about things, which is funny because you think I've built, all these companies are taking all these risks as far as people see, but if you're going to do something as hard as building a new company, you need to create as many unfair. Unfair advantages in as many backups as you possibly can for yourself is Mine General View from the Entrepreneur's perspective, and there is a conflict between the investor in the entrepreneur investors won't entrepreneurs the a little bit, but a little bit more risk than the entrepreneur probably should want to take just given the trade offs, and I generally say nine to twelve months as yellow yellower and six months red alert, and if you're at three months cash, you have star exploring other alternatives. That's my general framework on these things I think it's extremely irresponsible. Irresponsible like sometimes. Other firms don't even know what's going on in. Someone will come and be like. Oh, we have two months cash left. Let's talk about what do we do now and it's like you should have been planning way ahead of that like I. Only want to be involved in something gets situation of a and that means. We screwed something up so general in this kind of environment I will not where things are building. We've told people as much as you can get eighteen to twenty four months in cash as much as. As you can. is all about survival..
"joe lonsdale" Discussed on The Twenty Minute VC
"Be full time in the bay area, or are there other places to build? Do you think he will continue is downloaded I've had like showed before he has absolutely will tribal knowledge. The tight wise will remain here that we will continue to see the dolphins and others say remind Wa tools on financing. Howler is going to democratize entirely. Do you think that it will sustain? They will mockus decentralize I. Think this is one of those dialectic where there's. There's extreme truth on both sides. If you actually look at my best sense of the numbers is that we were kind of completely dominant twenty years ago, like almost dominant ten years ago, and it's been trending down just from our investing, which is probably a reflection of my best judgment, and obviously we're by towards the value, but we spend a lot of time looking elsewhere. I think when I first started the firm almost a decade ago, we were like ninety percent investing around here I think the numbers somewhere around sixty percent now around here. Maybe maybe maybe sixty. Sixty mid sixties and I can very easily see going down to forty or fifty percent five years from now so I do think probably just slightly more than half of a multi-billion-dollar companies being built in America are probably being star in Silicon, valley but I think that number was closer to eighty or ninety percent a decade ago. It is slowly turning away. I think Silicon Valley. Making the right moves could actually turn back up I. Don't think they're going to make the right moves. I think the Political Leaders Shapiro is a joke, and so I think it's GonNa. GonNa keep slowly trending down as a of the whole, but still doing very very important things here and the one thing I'll say Harry is the renaissance in Biology, probably the most important trend going on our space right now and UCSF Berkeley Stanford an ecosystem around here is probably GonNa be really strong in there for the next ten years. It's very hard to replicate that elsewhere. It is pretty good. Obviously university's doing important things, but the core strength here and people have been brought around that I would guess the biggest companies are built here in that way. Cool part of any says he is culture and common criticisms of the monocultures, our inherent uncultured I guess mcrib is back to voice, and this one was trae I believe. How do you believe about the dangers of a work culture? Maybe as relates to free speech yet. You're not supposed to talk too much about, but I have trunk pains on some always getting in trouble here. If I'm not careful, I was on a board. Call this morning. I won't say which board and there was somebody company who had been very prominent company who posted something that some people found offended in the question was. Do we remove him from the board? We rid of them or not, and it is a very interesting question. Would be having that conversation what he said, which wasn't even not offensive to most people, but I don't see how that conversation wasn't in Silicon Valley or wasn't in a blue area at the very least, and what's really happened here is there's like five or ten percent of people core on one political extreme who've really hijack the conversation and who've kind of? Of pushed for this kind of canceled culture who have kind of push for us stuff that really resembles now. Struggle sessions is very much scary like nineteen seventies China where they just really want actually.
"joe lonsdale" Discussed on The Twenty Minute VC
"And we really need those guys to be there the next six to nine months for some critical before they replaced themselves they. They left would have been a bit of a disaster, and so I went and sat down with the guys and said listen. This is really important. Here's what we're going to do. You want to build something. We wanted to talk to build things anyone with our program. I'm happy to make you guys. Ers with US starting any of the year, stay through the full year, aced s for this company, and then come on over. We'll work together, and and that's what they did and. And they came over, and they work with us and integrated on a bunch of ideas along something very exciting right now with our network. Because the bill program we were able to help that portfolio company safe people to finding portfolios. We're helping our portfolio companies with these things. It's just a part of our culture and what we do, so it's kind of hard to separate us from building I'm someone who constantly builds things, and that's what gives me the images I have you. Could internal discussions out Monday from mass with many ability in the venture community loves the thought process of being in charing guy. You know. I think many would agree that this kind of. Jumps of contrived in his mid Manisha what does Sharon is an contrarian think, he means huge S. Howdy, specific team to really engender at encourage it with eight, so it starts obviously with the people you're bringing to the table. You want people who are non consensus people. Generally people are not politically correct jets. Be careful what they put out in public, so they don't get cancelled in this environment. Thanks, you could say, but I mean generally, and of course it's across the spectrum. People of all sorts of political views that I work with. They want to exercise we have. is We write a lot? We put a lot of theses out. Law only internal because they're things. We don't want to share yet. Yet a law from our externally because you're constantly publishing stuff, one of my rules is of Mackenzie could have written this down beer. Be Plus work. It's not good. Enough Rate V has to be something that's out there enough. The Mackenzie would have been maybe uncomfortable publishing at about so that's another thing is just in general. Whatever's popular right now we have to question. What are they sing? What are they wrong? The whole lean startup movement I thought was bullshit when it was happening in terms of the things I wanted to do, and definitely Wesleyan started movement didn't make sense at all for the areas. I want work on and focus on. You couldn't have done lean startup a pound here out of. Our most are things. I've worked on where Pouncey people in winding web to Plano. WHO said well? There's this whole other areas now becoming possible, it's really important in bio. Is another example think platforms don't work while there's actually? Why with it in with breakthroughs, recently you do need platforms their to own a lot of value, long-sighted Therapeutics. Anyway, there's all these areas in which it's just really important to challenge the status quo and Blah Times you challenged Lasko. You're going to be wrong sometimes when you're right, you're gonNA have very very big breakthroughs, not the goal in venture capital is defined. Those breakthroughs is kind of challenging the status quo ease about kind of your final stay on the decision making in. In terms of consensus, I is known consensus and thinking about internally in the decision making structure. Why didn't you choose the single decision? Making land actually is interesting so on the bill side. I am currently as maker of what we do for Bill I. think that's important building as miles a work with a firm on the investment side I am not the single incision maker. We have a full investment. Committee votes the only rule. There is that if I vote against something. Like a super overwhelming, but in general we go by majority vote. That's actually I think much better. You don't WanNa have to force consensus on these things now I'm totally with you attempted consensus. Lot about actually trading help from the ground up when I way to try. It found this from before. He's into specifically. Ask. How do you think about the importance? Not starting new companies just, but she knew sissies. Well both are investing and entrepreneurship or looking for conceptual gaps in the world, right? We're looking for areas. Where here's what it is now in? Here's what it could be an in very oftentimes these gaps you can think of them as opening up as new technological possibilities emerge right, and so if you want to invest in ridesharing couldn't do it before the mobile phone existed. That doesn't make sense if you did it in the first few years in mobile phones, this thing that's great. This is a new thing. Thing as possible, that treats a lot of value for a Lotta people and you make a lot of money. If you want us to sharing now, the gaps mostly closed. There's not these may, maybe as far as I can see. There's giant gaffes versus how ride sharing works now could be working so simple examples you're looking for conceptual gaps in the world, and the question is where the biggest gaps and you know. A lot of people were trying to do good in the world they tend to focus. Focus on gaffes in healthcare and education and I agree those are very important for the world. They actually like a lot of money. You can make these areas by fixing him to I'm very excited about a lot of people. Don't look as closely the gats in government and finance, but if you really stop and think about it, government and finance are at least as important because a lot of times, Belva, those determined for society, what resources are going to have anyway for healthcare and education and everything else. Else, so these are very kind of things. Well, that are really key. Is You look at government like one of the ways fix government, obviously I've started a bunch of companies to address processes in government to fix a lot of stuff works to make government better. There's just so much wrong with our cities, and there's so much their cities could be doing so much better. It's just a really fine exercise. We should probably don't engage in the whole thing now, but you can kind of look and just. Just see all the ways in which cities is wasting people's time, necessarily all the ways which the at the environment, and necessarily all the ways in which they make the cost of living for the poor way higher than it should be i. mean the old days. If you move to a city and you work your way up, now report. You can't even live within two hours of the city. That's not necessarily. There's ways of making it affordable. There's ways of building a city in permanent regulating city so. So all of these problems are solved so such a big gap. It's a very fun thing. Potentially fix I mean speaking of kind of problems within cities east coast of living. Amaze me thinking about silicon camale stay were under the criticism is right in the of the insane high cost of living the question, and this was from drew I have to admit it was like Silicon Valley driven so much innovation continues to do despite the rising costs. Why do you think that is what ensures that Silicon Valley? Valley maintains its monopoly in your mind despite the shitty condition, sometimes, this is something that a lot of must've been arguing about I..
"joe lonsdale" Discussed on Capital Allocators
"CAS website. You've got this advisory board that spans lots of entrepreneurs entrepreneurs very senior company executives people in entertainment any think about that specific network and how you use them each ones different right so we have thirty people people are firm really as twelve people on the team in each person investment team is working with a managing different advisors for different goals in so you have some people who you really just want alike bring to certain things because they bring people around them. If you want to be around especially couple of entertainment guys of they're going to be at something. It's easier to all right and it's easier to get the get access to things where whereas others others are specifically really really helpful for getting deals done in a certain part of healthcare certain parts of finance or whatever what's the to go back to the old Michael Lewis expression. What's the new new thing right now in the valley. I think the most important question in metro capital is what's possible now. That wasn't possible five years ago right because if you want to invest in ridesharing we did before the phone it doesn't makes sense twelve thirteen years so as you had done it within a few year window to really make a lot of money on it and so I think right now there's a few areas but right now the most exciting setting area to me is the renaissance in Biology. You're seeing going on what particular aspect of biology is turned in a lot of areas into information sciences while as well as just like a life science science and so it used to be in the valley. You're either life science guy or you're an. It guy but they're literally platforms that can do things to sound like science fiction right now like one of our companies simply. Go is the leading gene any other company and there's a data network effect so they've got much much more accurate than anybody else gene editing which means they can engineer cells. Nobody else engineer which is also selling sells directly people say Gimme the cell with these twelve thousand people ordering from them now and that's growing an amazing speech and it turns out. There's always do cell therapy. Do things like that and then there's because of newsouth therapies there's other our tools is a whole another company. That's this sorting sells a billion in a time using semiconductor technology and it turned out that applies time tens of therapies and there are saving lives with ads. There's all all sorts of these things that you never would've even thought of doing five years ago there possible now. The list goes on in terms of these kinds of biology. It crossover thanks so when you have a set of opportunities retuning. How much do you dive into just that sector and then just keep going deeper. or how much do you kind of bet on just one company when opportunity well so. I think there's a lot of things going on sectors actress. We've built a team rounded and we spent a lot of time on my doubts about twenty five percent of what we're doing as a fun. I'd say within the Renaissance and Biology area right now join over time can change so I want to get a a little bit time turned some fun closing questions. What's your favorite hobby or activity outside of work family while my favorite hobbies probably policy work we're trying to do nonpartisan partisan type things where he right up legislation or other things that are trying to help fix the government..
"joe lonsdale" Discussed on Capital Allocators
"Go oftentimes be referring to something that we think is really smart. They actually rather than build something. Let's just invest listen. I think over there what's the recent example of recent example is looking into logistics and we're trying to understand Amazon when they ship something when you order. It's about seventy miles away from on average the time you click. It's the time it comes to you. Amazon's forty percent of the market the other sixty percent market when you click it and you ask how far away from you it is as eleven hundred miles so as much worse much much better at this problem which is why they can ship things guaranteed one day sometimes two days runoff three to five. We practice with this and we looked all around figured it out. We've tried to fail. We're going to build. We found a guy who had done it in Amazon. Something related we say wow. This is the guy who was already thinking about this problem. We are able to help them think about it even better. Thanks doing so therefore we were able to. Kinda lead his first round of financing being on much better terms. We never found this guy from Seattle. We have been thinking about this idea now. It's a really fast growing company called deliver. It's this race big brown spots raise another really the gap around we put on Walmart for a bunch of their merchants rather than three to five shifting they distinct garrity wanted to shipping in those merchants sales doubled when she's told consumers had it work. We basically have a virtual warehouse networking to our house compete against each other so you keep about forty or fifty warehouses that we manage. We manage all the carriers for them so they just give us the inventory we rebound for them. We ship it for them and handle. It all turns out. There's several two hundred billion dollars. A year on the economy spent this way really thing now and even if you can get the margins to ten fifteen percent which we think we can. That's that's a big market henny. Think about the risk reward. If something we were starting from scratch compared to something might be a be rec- round so most of what we do is series A. N. B. and it's very funny. It's Silicon Valley. What means what it used to be. This seed round was the very first round and half million or a million and you might do a second small Cedar. He might do an A. which the old days it'd be like three to eight these days. Lotta Times people people raise a seed round is actually what we used to call him. Hey let's raise five or ten star you just there's more money available one of the kind of hidden secrets. We don't talk about as much. Is this a lot more serial. Entrepreneurs even skied on something else before it was very successful Amazon so someone's done something before the show you know what they're doing. It's a very different conversation so much easier fusi investor. You're not coaching him through some really really biggest mistakes that person may building a company so able to give them more upfront and so. I liked doing early investments with really town person because you already know this on the table but you're able to get a great deal do a lot of be rounds as well. There were some things really just starting to work. The tough thing right now in this market environment is that there's a lot a lot of players coming down trying to be around as well so I was. I was just outbid last month for something I love about sixty percent from a firm I won't mention the name but as a firm that writes regularly one hundred hundred million dollar checks excited come down and write a thirty million dollar check so it it is a little bit annoying to see like bs and cs are getting more expensive. Which is the reason? I like to try to stay early. How do you balance out. You've gotta the deal company like presumably a founder like someone WHO's coming down. It's going to price it up. How do you think about at what point in time you say no. That's too expensive. It's really hard. We have different costs the capital so you even though our funds are six hundred forty million dollar fines because we're venture capital firm or bars were looking for ten x on the low end and that's what you have to do our first firms over forty percent..
"joe lonsdale" Discussed on Capital Allocators
"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..
"joe lonsdale" Discussed on Capital Allocators
"I grew up right around here. In San Francisco. Go Bay area right in Silicon Valley and I guess when I was thirteen fourteen fifteen my friend's older brothers raw building companies because it was late nineties so I started at pretty interested and what was your first venture. First thing I started myself was actually pounds here but I was. I was involved with a bunch of things in high school. One of my friend's fathers was senior. Intel off any gossip bunch of really inexpensive chips and we we overclock them and then we got him to to give us the materials to super cool it and play with that. It was really good for playing quake too but you know it wasn't it turns out. No one else really wanted to buy them so it was much more exploring and be part of other people's companies for the first four or five years. I guess pay Pal for Serious Company. I was apart as an intern for a couple of years. What what was your angle. Did you come at it from technology side from the business side the computer scientists originally so I studied computer science when I was Gosh Ten or eleven my friends Tommy to program and we built games. We built programs. Would your math homework for us and that sort of thing and then pay pal. I saw a lot of really smart people going there so I actually got turned down the very first time am I applied there as a programmer. When I was quite young Max luncheon who's now a friend I mean do stuff on the white board and we debated things and they never got an offer from that but then Peter brought me back the next summer and I started started working at paypal and so you went from pay pal originally into Peter's ecosystem yeah exactly so I got to know Peter from entrepreneurship suffered from a paper he'd started called the Stanford Review. Show is editor of and start talking about different things with him and he brought me in along with a couple of other people as a summer intern in the I ended up working for his family the office and I helped him US starting a hedge fund and I helped higher bunch people there so I kind of started working with him on a bunch of things and what was the original idea propounded here well you know they're actually a lot of things being started at the time at Clarion. The Hedge Fund in some of them were quite crazy. There's this thing that was like trying to mental stimulation that was supposed to do things. Thanks good for your brain that ended up being people nightmares other effects to talk about. There was a spam company. There was a restaurant listening millions lars on there's lots of things and of course Peter there was also the time a big investor facebook's. That's another facebook founders really well so just there's all sorts of things going on some of them crazy some of them not as crazy obviously although it was really hard to tell at the time what were the best nice things in it and hired a bunch of my friends at the hedge fund help us with programming and building things and some of them really didn't like finance very much since waste where we're going to work on and we'd had this idea that initially repeaters idea from pay pal like these people were talking to the secret service at the FBI helping us. We try to arrest these bad guys tweet building better technology for them doing something to take. We've learned and apply it to DC. So the idea came from sort of being there inside clarion well. The idea was from pay pal originally where the Chinese and Russian mafia were stealing sealing off our money in there about a competitor's bankrupt to these online money laundering efforts. That's from hacking into the system. Yes Sir so you go to a seven eleven and buy something and the person some behind the counter somehow takes. Snapshot Writes Down Your Credit Card number and because there's now Russians online as of the year two thousand two thousand one ninety nine who are willing going to pay a lot of money for credit card numbers. Maybe five ten bucks you write down a few hundred of these. It's a nice way make money on the size as someone in they take the money run it through pay pal by the time you realize it's fraud fraud the money's already out of the system and then pay packets hit by a charge back so there's all sorts of versions of pay pal losing huge amounts of money to allow competitors and what role did you initially play at here so pound here. I was the founder who created the company and got going there. Lots of things going on around the time it's idea he played with. I took some of the people who had hired tired. Hedge Fund for better or worse. I became a leader the hedge fund the number two guy there was a genius but was also not really a manager so I was kind of helping me lots of things and just kind of fill the avoid as a overconfident twenty one year old running this paper on this thing and run a big drain account there and debating the trading with Peter and then allies guys working for me and a few of them. She didn't really WANNA work finance stuff and I said you know what let's let's prototype. My roommate is down for at the time really really bright guy she along with me we started just running and staying up late at night and sketching applic- different ways that the product could work for the CIA missing Peter to give us a pleasure to fly out and talk to people we knew in DC and he knew in DC a few other adults there were times he this is crazy as even worse than your restaurant and your other ideas. You're doing stop these kids from talking to these people and then to headed to take off from their point in time. Did you leave Claremont. Just dedicate to pound here. We got a little office away on Sandhill road appears old offices and we started using that and started building it out and Peter helped us bring on one of the guys from pay pal became another Co founder Nathan he just started working on it and I was working on it part time we were testing it out and trying it out but it was about a year and Judas Clara starting to get really exciting and I ended up moving there fulltime to start start hiring at the team ended up high most of the first hundred people on help from the products and built it out and at what point in time did you say okay this things off on a tone and time to step away. It was about five or six years of working on it pretty intensely in hiring team building a culture and what happened was is that we built out the government side in about three or four lawyers into it was unclear how long governments I was GONNA take to ramp up so I signed to build the finance side of the company as well so so pounder ended up building out a commercial division where we started with the finance side and we had a few early customers like bridgewater another issue ended up using a system for over ten years as with their analysts did their work so really built out a commercial side of it as well as that was scaling. I'd I fully vested my shares in the company about four or five years in and I was as another division in the company by realized. Maybe we should do something on my on more of I was really passionate about this for Outta par so I stepped aside lied about five and a Half Years Union started working on adipose instead until we're the antequera idea come out of his partially from stuff pound here with seeing when I was seeing in general is building my own very small family office at at the time and realized that that s face was very broken the technology religion at work for it a talk to my friends who are running large offices they had similar complaints and the big theme we have which in general in world in the last ten years and Silicon Valley is. There's these industries where there's platforms that should be using data run them better and that are not realize if you WANNA fix a lot of different parts of the financial world. You needed a platform what form this is on top of the money. So part of the idea was to be the software for our as for family offices for banks and be able to have lots of ways that you can kinda talk to the money through the platform and when you dive into one of these ideas you mentioned a couple times your friend for your roommate from Stanford a bunch of your friends. How do you start to build one of these off of the idea. Well I think the number one thing is getting the very top talent with the computer scientists you WanNa culture where people are really really obsessed. You want to agree on what the mission is and why missions important and yet have mission in a set of people that attract the other people on the becomes a positive something so this is a very intense few years getting them going and convincing others to help you and making sure his own enough of it and then I'm a product guy so it's catch up the product than you. I have to have the marketing sales analysis and you have to go entering talk to a lot of people get a lot of feedback evolve the product time based on that one of the key things for the early engineers is they have to to be on a mock up quickly. You need to get feedback ain't data rate and at what point in time did you shift from being an operator to venture capitals so the thing is really proud about pounds here and then later at par is we had some of the very top talents panthers rate number one in Silicon Valley for the engineers. We were attracting and what happens. A lot of talent will come a place for three four five years. Some of them will stay the whole time still people who've been there for fifteen years now but a lot of them after a while but go on they'll. WanNa build something around so I had probably about ten or eleven different from France who had worked with in some capacity pounds here or even out of pure parley on building things on their own and I was being small investments in them from my office. I was advising them and I realized so that's something I really enjoy doing even more than enjoyed Brian the company day to day. At what point in time did you say okay. I'm going to start a venture capital firm that created. I guess it was formation. Take the time yeah. Formation Eight was the first real serious firm had a small fund. We called the before and that the fund was just with family in France in my own money and we did a bunch of angel investing and that was actually really good because even though that fund is over ten exited great. I also did a lot of dumb things so I think you learn by doing things right so so you want to make mistakes before you do it with larger amounts of money but but after doing that seeing it working well started have really strong opinions a scientist start a fund two thousand eleven. I guess when we decided to start it close. Our first fund the very end of two thousand twelve and then at some point in time. I guess some of your original partners cited not to continue in you continued on yeah you know I think everyone has different ways of running and managing these things and so one of the things we always talk about with our entrepreneurs defined unfair advantages because he's so hard to start one of my unfair advantages. Starting permission eight was the Meyer early partner is Family Bill Elgin Korea. His father gave us fifty million dollars anchor..
"joe lonsdale" Discussed on WTMJ 620
"Own Alex Cortes brings us this next edition. We've lost my mom ten years ago. She was really healthy. He's actually working out at the gym at the time when she dropped her bad overhead and a hitter Kabakov some battling chronicle fracture which was really surprising is supposed to fracture. And they went in. And they found out that she had a tumor in that she has stage four cancer tumors all of our body. We're listening to entrepreneur investor and son Joe Lonsdale. Been planning a little bit about some pain after an operation. And the doctor told you was probably nothing it's normal to have some pain. But turns out the pain was a huge timber in her liver. So it was pretty horrible. I was twenty time and we all took off some time. Which I take an awful lot more time because we only had her for three months, maybe a year. It pretty quickly. So it was really big shock. And I I was already really close with my family. But it brought us even closer. They want us have lost a parent kind of shifts the nature of the world a little bit. My mom was tallied the bedrock. And the family said really really fundamentally changes things. I honestly felt really angry at myself for not having done more in the area of cancer in the area biology before I found out about this. My father host our test. They write a state chess champions, national, chess champions and gave us a lot of confidence as probably good for kids memory to. I thought I was really good at chess. But my dad's still wins. He's coaching the same team for fun thirty years later. So probably wasn't me as probably have it. Also sounds like this father son duo from Silicon Valley. We're some real dorks. Well, this is probably politically incorrect, but the area is about fifty percent Asian. So so I think it was a more studious area rights. So it wasn't that unusual to be studying hard. When they were bullies at school, my friends from the bullies. Did I was a little bit of a bigger athletic? My friends with me. Became good friends with Saudis kids to you. When you. Little boys. Get in fights. You become.
"joe lonsdale" Discussed on KMOX News Radio 1120
"Next addition. We've lost my mom ten years ago. She was really healthy. She was actually working out at the gym at the time when she dropped her bad overhead and hitter clavicle, some cleanup chronicle fractured, which was really surprising is aren't supposed to fracture. And they went in and they found out that she had a tumor in that she had stayed for cancer tumors all over her body. We're listening to entrepreneur investor and sawn Joe Lonsdale. She think a planning a little bit about some pain after an operation, and the doctor told you it was probably nothing it's normal to have some pain, but turns out the pain was a huge tumor and her liver. So it was pretty horrible. I was twenty one time, and we all took off some time span with right which taken off a lot more time because we only for three months, maybe a year. But she passed away pretty quickly. So it was really big shock and. You know, I was already really close with my family, but it brought us even closer. And they want us ever lost a parent of kind of shifts the nature of the world a little bit. My mom was kind of like the bedrock and the family. So it really really fundamentally changes things. I honestly felt really angry at myself for not having done more in the area of cancer in the area biology before I found out about this. My father coach star test team, state champions, national, chess champions, and that gave us a lot of confidence. And I think it's probably good for kids memory to. I always thought I was really good at chess. But my dad's still wins HSEN coaching the same team for thirty years later. So so he's probably wasn't me. Probably have it. Also sounds like this father son duo from Silicon Valley. Or some real dorks? Well,.
"joe lonsdale" Discussed on This Week in Startups
"In startups dot com to your friend who is in the business and who doesn't know about the show. Yet my guest today fade DRA Ellis lampkin 's. She is the co founder of promise, which just went through combinator. I believe yet less congratulations and race, three million dollars from my friends at first round and Hala, Jay Z's Roc nation in the building. Yeah, we raised four, but it's okay. Oh, okay. My I'm correct. He might not be aware you're taking one of those. These. Without today, what credit? IRAs four, four point two. And my friends, I k- poor and eight VC who's eight VCE Joe Lonsdale. Oh, Joe Lonsdale. Okay. There you go. So that's a pretty. High-calibre group of people, and they invest in some cases to make impact Cape whore, but and I'm not sure about Jay z. We haven't worked together by first round and eight VC are not impact investors. Their return based investee are they are first round lead and I run let it fantastic. So let's get to the economics of this. Yeah, you're doing this to make a business. Yeah. It obviously is going to do good in the world, but there's gotta be an underlying business if four million dollars and you get on the venture capital track is the business here. Well, the businesses, we want to save counties money and set of someone being in jail, which might be anywhere from seventy to five hundred dollars a night. You can pay us and so people that would otherwise be incarcerated. You pay us and we make sure to reduce your failure to appear rate and other things. Interesting. So let me ask a stupid question when you're in jail on how are you responsible to pay that money? No. So if you are. Convicted of a crime and you're kept in you don't have to pay it. No. Interesting. So I would just say one thing which is what happens is the longer you stay in the more likely you are to go back and our clients are mostly county governments. And so if let's say you stay in for four days in your mom, you probably lose your job. You lose your housing, which creates a second layer of chaos for the county. Right? Because now I'm there for social services. So what we say to counties is let's get people out of jails quickly as possible, and let's get them home and let's help them be successful in their own lives. Yeah, figure out why this happened at them on the right track, we call it a care plan to provide support so that people can be successful in their own. Life's I noticed you don't use the word criminal. I know you use specific language. Let's talk about that language. What is the proper way to look at these folks? Well, what are the words you use? Yes. So one is I recognize as a woman of color who came from a single mom. I recognize that the how I grew up, the people I grew up with are often the people that are in the system. And so I recognize, but like therefore the grace of God go, I. And so I'm very conscious of that fact. I think about when I volunteered in prison and I volunteered with folks who'd been to Google and other companies that the folks who are in jail often had done the same things that the people that worked at companies were they just had better lawyers. And so I'm conscious of the fact that it's folks who have little resources little support who are trying to do the best they can. So we think of them as clients and participants. And we think our successive our company will be measured by how well they do in their own lives, which is how we want to be measured participants. I like, yeah. So you charge the state fifty bucks a day instead of one hundred or two hundred. Is that how it works? We charge them. We don't charge per day. 'cause I think it's the wrong incentive system. What we charge is either the volume and then we want to be charged on, do they stay out of the system because we think the metrics are wrong, right? Ideally, government should charge you based on, does the person succeed so that my sales team is not trying to get people in every day, but that our operations and sales team are trying to get folks to succeed and get out of the system is really interesting when you put it that way because there is a perverse system at work that has really started to come to light, which is the privatization of the prison system..
"joe lonsdale" Discussed on Capital Allocators
"But then again there's co i know this company up in seattle it's doing big data and artificial intelligence for creating and assessing private equity track records and that's really exciting the idea that you can create on the fly indices that literally benchmark each company in a portfolio to show whether or not a gp actually added value there are things like that emerging which give me hope that the lps won't come be completely swallowed by the gp selling machine but you have to be thoughtful and you have to have like the gumption to be innovative to do any of this stuff if all you're relying on is a fund to funds or a traditional consultant access point to a traditional gp i don't think you're gonna get the outcomes you want to what's the most interesting company or involved with today the most interesting companies the is a company i started so i started a company with lindsay holden called long game and long game is about trying to help people save money who struggle to save money we started this company about a year and a half maybe two years ago and i met lindsay she was the first higher at formation a which was a venture capital fund out in silicon valley i'm friends with the was with a managing partners there joe lonsdale and joe introduced me to lindsey and we hit it off often and then she left fa to go build an auction company that use this in a behavioral trick to capture this g t l d space which is the toplevel domains like dot ventures and they did i don't know what the exact numbers was five hundred million or billion dollars in actions on this platform that she started.
"joe lonsdale" Discussed on Crunch Report
"You know it's an exciting day in tech when i'm talking to you about connected tag tyler tracker but now sampson the company just announce connect tag a small internet enabled device that tracks location in lhasa week between charges and measures four point two one centimetres by one point nineteen centimeters the company says it's one we battery life is because of its use of narrow band network technology a standard that optimizes power usage through more conservative use of data and he claims its ties are the first of their kind to utilize it we don't have a price yet but the samsung connect tight will go on sale in korea first before expanding to other countries in the coming months that big orangemen were little hands has created enough anxiety around the us immigration system that startups are turning to third parties to hire talent abroad terminals started launched by pailin tear in eight me sees joe lonsdale atomics jack abraham dillon's sirotta formerly of event bright is building officespace in canadian cities and working directly with venture backed bay area startups to hire international teams it's basically satellite offices a service for founders at don't want to deal with the message international expansion if this all sounds great but not super scalable you're probably right though the high scale team surely has access to the capital it needs to pull its vision off still gonna take one engineering higher at a time that's hurtful for today hit that life for love blaine share this video and keep raging which bars are reduced seven pm eastern orphans tech rents dot com assigned to you too all right we'll see tomorrow groups.
"joe lonsdale" Discussed on KQED Radio
"Of lincoln network what's yours they didn't work yeah slowly looking at work is a community of technology professionals and we are focused on civic engagement how can we help the country uh from problems two bipartisan ideally solutions so we do that on a number of fronts uh two policy issues we had in advance it's and the area back in may focused on the future civic engagement among tip professionals in the age of trump so we had uh the president of a why tomba neater semov man joe lonsdale form cofounder paul into your signal sir entrepreneur an investor talking about what civic engagement looks like dance uh you know how did they see tech professionals can get involved in get engaged comey the voices heard why is there a need why was there a need when you cofounded this for an organization an affinity group for republicans and libertarians conservatives in the tech industry why was it necessary won't fundamentally we think that is important for professionals to be engaged in the civic process so you know wherever you sit on the spectrum we think that that's important is something that interest you so we wanted to enable that but we also saw during the uh during the election of two thousand twelve the disparity in technology that was being used in the obama campaign versus the our romney campaign a one of my cofounders aaron gene actually went and worked fulltime in boston on the romney campaign he's a gross engineer growth hacker so he saw from the inside and was shocked by the the lack of technology superstition there and they're from my perspective i came from washington dc a working on the senate foreign relations committee policy background.
"joe lonsdale" Discussed on The IVY Podcast
"Yeah i'm sure everybody one is just want more intimate macro side specifically in south carolina you talked about regulation on vested interests keeping a lot of things back in finance government and so forth and yet losing healthcare with pharma silver with you think there are some serious ethical questions on regulations maybe the maybe not when it comes oh yeah this is this is a huge no yeah you sorry yeah you mentioned that i didn't i didn't address that very well yes this is a terrifying question so so i was very involved in military intelligence work if you go spending very much time with people or the dot they're terrified of china in the first as they are disliked these now you've old white guys and stupid but but you start looking at a it's very interesting with this in mind because i am talking to people i talk to on good give who would know this you know the chinese special forces have figured out a way to inject stuff into their eyes to give them better night vision which was financed mainly little scary but the thing i hear there's an i hear there's tons of experiments to make them stronger tomato naughty sleep for their ways there's there's all sorts of negga spanish they're doing and you know when it's probably as possible for the next stuff to really enhance people to be much better soldiers and you can bet i mean china's very smart they're they're they're doing it because that's what you do in that system because it's smart thing to do and we're definitely not doing it because it's completely against western affects and that's that's fair but it did become somewhat terrifying have you start thinking okay they say they keep doing this for the next ten or fifteen years like maybe they get to be just so much better maybe they fear an away to enhance their intelligence as well or who knows if you have always enhanced.
"joe lonsdale" Discussed on The IVY Podcast
"These various colleges that they don't graduated from studying things that have note they're not tied at all the relevant skills right so so i think i think right now there's a tightly separate question there's so many ways you can be giving people skills and getting them jobs and and the unemployment rate by the way is being thanks who knows if it thinks the bomber or trump or maybe not tied to other than but it's an an alltime low right now right so we actually arjun that the danger right now despite the fact that we're all panicking about it in silicon valley the previous generations maybe hundreds and so forth there's been shifts technologies coming in employment patterns but it is probably pretty unique in our time to chris byrne genetic engineering recording stuff you think there might be any fundamental shift sued one one of one of my favorite financial bucks has called this time is different feel like everyone always says that and i and i agree it's different but i think i think there's there's wisdom from the history there for sure the lesson is that i guess for the last three hundred years every ninety years or so replace about half the jobs so join this period of rapid innovation last few years you have continued to replace jobs um it's interesting if you look at if you look at productivity that's really the way to measure how fast replacing jobs and so during some dating as i think it was about so apply correct me here i think it was about between five and seven percent a year that was going up and because we are becoming more more proactive without much each year and that's why the jobs are going away he look at it right now productivity is gone up one or two percent a year for quite a while which actually conned depressing and it's because a lot of labour's gotten trapped in these areas where innovation is not allowed in a lot of parts of healthcare law parts education.
"joe lonsdale" Discussed on The IVY Podcast
"So the mission here also uh is around the world on what can be better so we all know that there's tremendous progress made in all fields by all of work still to be done what do you think are like the primary challenges and time sure well i'm very optimistic i agree that the world is gone just just quantifiably this much much better over the last hundred years over last fifty years i think all of us are you know i mean there's exceptions the world but almost everyone's lucky to be alive today than almost any other time in human history um i think by working could we are i know i actually families regarded so awesome so so i i i tend to think the new talk wlob alec systems thinking and it was systems thinking there's the question of a what are things supporting everything else in terms of the biggest problems and a lot of people who work on the biggest problems will focus first on on health care and education 'cause you're too obvious very problems and i've done a lot in those in those areas as pounds aaron and my companies um the the two things i worked on even more health care education are probably government and financing i think government finance don't get enough attention from silicon valley relative town port they are to be really look around the world and see worth people are i mean where's the bottom fits saudi truly the most visible places where government is very very broken government on operating on the principles that needs to operate on answer to make them successful and then finance especially doesn't get enough love 'cause everyone con agrees fix government the finance discount reminds people of people who are moneygrubbing in making lots of money and why is that really matter but in a lot of ways fis is almost like the free market version of government it's just like very complicated system the allocates all the resources in the world and that's a good thing you want something that's a marketdriven opensystem allocating has you don't want top10 allocation don't work very well doesn't it has lost reasons why doesn't work so they sense if we agree finances important than you want what's more people in it and you.
"joe lonsdale" Discussed on The IVY Podcast
"Joe lonsdale is one of the most successful venture capitalist in silicon valley not to mention a veteran tech entrepreneur investor and philanthropist in early 2016 he launched eight vc a san sanfranciscobased venture capital firm that aims to fix core processes for some of the world's largest industries previously joe was a founding partner of formation eight which manages over two billion dollars across mold we'll funds prior to formation eight he cofounded pailin tiered a multi billion dollar global software company best known for its work in defense and finance lonsdale serves on the words of several highly successful companies including atta par open gove insurance unicorn oscar health illu me oh radius hyper loop one and wish which has evaluation reportedly well above three billion dollars as of additional funding and light 2016 in addition to his work in entrepreneurship and venture capital joe is also the chairman of california comments sets a nonprofit dedicated to opening government to the public and educating citizens about how government works if you look at productivity that's really the way to measure how fast replacing jobs and sowed during some eight as i think it was about so apply cracked me here i think it was about between five and seven percent a year that was going up an because we are becoming more more proactive without much each year and that's why the jobs are going latte he look at it right now productivity is gone up one or two percent here for quite a while is actually conned depressing and it's because a lot of labour's gotten trapped in these areas where innovation is not allowed and a lot of parts of health care law parts of education silicon valley can't impact them because they're not to remember forces are different bother things in this conversation with ivs cofounder berry merrick joe explained how entrepreneurship can help fix large industries and solve complex problems in an impactful way please enjoy our conversation with joe lonsdale.