20VC Newsletter - 22nd December 2024
Here are the transcripts and top takeaways from 20VC episodes released this last week.
Monday’s episode with Reid Hoffman, Co-Founder of LinkedIn & PayPal:
Download the full transcript:
My 8 key takeaways:
How Should America Use Tariffs?
We should only use tariffs against certain bad actors, such as Iran and Russia.
We benefit enormously from a global trade regime.
A trade war will significantly reduce prosperity in the US.
Why DOGE Will Not Be Successful
The only way to remove $2 trillion from the budget is to reduce the deficit and defense spending.
We have too many federal employees, but that’s not where the trillions come from.
Presenting that as the only solution will not work.
What Impact Will Elon Have on American AI
It depends on which areas he will focus on.
If his focus is on availability of power, data centres & talent we will have an enormous boom.
If his focus is on tackling woke AI we will have challenges.
How Important Is Chip Sovereignty
In an ideal world, we would have 2-5 semiconductor manufacturers worldwide.
At least 1-2 should be in Western nations.
A single point of dependency on Taiwan has a bunch of global risks.
Why Anti Competition Is S**t and Works the Other Way
Investors will only invest if they can see a potential exit.
Blocking acquisitions by large companies will disincentivize investments in startups.
This will lead to increased aggregation of big powers by stopping the financing of competition.
How Likely Is Nuclear and What Needs to Be Done?
People have invented fission plants powered by nuclear waste.
We are currently not making any progress because of regulatory agencies & public opinion.
I am hopeful we’ll make progress in the next administration that promises deregulation.
What Is Elon’s Biggest Strength and Weakness
His biggest strength is also his biggest weakness.
He has insane conviction even when all the evidence is against him.
His belief in colonising Mars led to SpaceX & Starlink, but he also retweets conspiracy theories on X.
How the Hyper Scalers Are Funding the Future of Energy
All the hyperscalers are committing billions of dollars into green energy companies.
They are covering the initial costs to build nuclear & geothermal plants.
They are functioning as the R&D venture capital for creating green energy.
Wednesday’s episode with Daniel Dines, Founder & CEO @ UiPath:
Download the full transcript:
My 7 key takeaways:
Why We Will Have a World of Many Models
AI will develop similarly to the cloud.
We will have general models & multiple specialized models.
Specialized models will likely be built on top of open source models.
Why Agents Do Not Mean RPA Is F**ked
RPA automates rule-based tasks that are medium to high complexity.
LLMs are not good at following repetitive steps.
They work well in unstructured parts of the business.
The Future of Human Work Is Approvals
We will have semi-autonomous agents that do most of the work.
They will work with a rule-based enterprise workflow.
Most of human work will be giving feedback & approvals.
We Need to Stop Worrying About Jobs and Doomsday and Be Excited
AI will create abundance.
Many of the jobs today will change, but new jobs will be created.
The only way to increase economic growth & combat population aging is to increase productivity.
Why You Have to Have a Neutral Orchestration Layer in the Future of AI
Companies will focus on building agents that stay on their platforms.
Salesforce will not provide a good platform connection to SAP and vice versa.
We need a “Switzerland” orchestration engine that provides equally good access to multiple platforms.
Why 1-1s Are BS
It just gives you an impression that you’re doing work without actually doing any.
I always call my direct reports.
If we cannot have an honest, candid conversation, it won’t work in a 1-1.
Why Finance and Fortune Mean Little
It does not f**king matter.
The only thing that matters is how we think day-by-day.
I wasted my 20s and 30s thinking this way.
Friday’s episode with Matt Plank, CRO @ Rippling:
Download the full transcript:
My 6 key takeaways:
Why Founders Should Not Build the Sales Playbook
The Founder is best at articulating why someone should care about the product.
But they don’t think like a buyer.
The sales leader should create the playbook & the Founder should offer feedback.
Why Replacing not Adding a Line to the Budget is Easier
It’s easier to replace an existing expense than to convince a buyer to create additional budget for something new.
Rippling replaces another existing system every time.
You just need to beat the competition.
The Big Mistake Founders Make on Selling and Pricing
The biggest mistake when transitioning upmarket is not increasing price to a point of friction.
Friction on price is good.
Winning 60-70% of deals shows that your market is too narrow or your price is too low.
Why Time Based Discounts are BS
Time-based discounts are counterproductive.
People don’t sign contracts on the final day of a month just because the discount might disappear.
The reason they sign is because you’ve built a relationship & trust.
Table Stakes as Head of Sales
You don't get any credit for knowing how to do something yourself.
Your job as a Head of Sales is to get your team to do that.
You have to make them able to execute.
Why Efficiency K***s Progress in Growing Companies
When you're in an early stage company efficiency doesn’t matter.
You’re just trying to win clients in any way possible.
When you grow, you have guardrails to operate within.
Efficiency becomes the #1 constraint & slows down growth.
Let us know what your big takeaways from this week’s shows were in the comments below!
Thank you all for reading the 20VC weekly newsletter in 2024.
We can’t wait to return with even more amazing shows in the new year!
Don’t miss the great guests we have lined up to begin 2025, starting on Monday 6th January:
Mike Maples Jr, Founding Partner @ Floodgate
Mikey Shulman, Co-Founder @ Suno
Dan Gill, CPO @ Carvana
Thank you for reading 20VC.
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