The trend below can’t hold b/c 1) it will create class warfare if left unchecked and 2) many feel genuinely bad that success isn’t shared.

My prediction for 2021: A new political party is founded that is Pragmatic and Centrist - electing people to try and bridge inequality.
Why is a new political party the solution?

It may not be, but it can help fix the fact that half the population of the US have everything and the other half, increasingly, nothing.

It has happened at critical points in US history before when people felt no one was listening.
1) It will force our political class to cooperate to get things done.

2) It will give voters more nuanced choices at the ballot boxes.

3) It will allow the natural coalescing of ideas without being forced to give them up (Bernie, TeaParty etc).
4) Americans aren’t stupid. We can handle choice - especially from 2 to 3.

5) 3 parties will make it harder to buy our elections.

6) 3 parties will make disinformation harder.

7) And back to (1): All of this will force our political class to cooperate to get things done.
Right now, our politicians are engaged in internecine warfare. They would rather destroy themselves and us in the process than actually compromise.

I think we will be surprised by how many people would support this idea of a new centrist Party.
The establishment will first label it as a protest vote.

Then the establishment will mock it.

Then the establishment will try to stifle it.

Then it will win.

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More from @chamath

17 Dec
Update on SC Emerging Managers:

•1,392 applications
•96.2% Male
•40% Non-US
◦76 countries represented!
•56% non-white or multiracial
•44% of applications are currently full time or professional investors
The opportunity to join a community of investors was the primary driver for most applicants, even beyond the opportunity to manage capital (although this may be skewed by the high number of people already managing capital).
Age breakdown:
Read 5 tweets
10 Nov
Today, we are launching a new effort, SC Emerging Managers, for people who want to become investors.

We want smart learners especially from diverse, nontraditional backgrounds.

We will give you money, training and a community around you to become successful.

Learn more...
One of the hardest problems for new investors is getting started – how to establish a capital base without a track record, how to build out all the expensive infrastructure that’s required at scale, and how to pay the rent when you aren’t initially drawing fees.
Beyond the practical challenges, it’s even more difficult doing this on your own. Having a sounding board for new ideas, support in down markets, and mastering the mental side of investing are all crucial – and dramatically more difficult by yourself.
Read 10 tweets
4 Nov
Think about what we’ve just witnessed:

1. Four years of chaos, incompetence and bickering.

2. A pathetically managed pandemic that politicized everything.

3. Conspiracy theories that brought every cook out of the woodwork.

4. An economy in tatters.
But despite this chaos and vacuum in leadership, we have a stalemated election that may likely tip Biden but, barely, and not for a few days.

Why is Trump so hard to defeat?

How could the Democrats screw this up especially after 2016?
Things I’m currently thinking about:

1. A plurality of Americans just gave coastal elites a big “Fuck You” when you see how many Hispanics, Blacks, Jewish voters went Trump all across the US.

2. The Democratic Party needs retooling.

3. How do we fix America?
Read 4 tweets
25 Oct
In investing, so many people seem to have “the solution” but they are incapable of profiting from it themselves so they convince you to pay them fees and carried interest to do it with your money.

This is the principal/agent conflict with most funds.
A few questions you should always ask:

1) How much of the investment/fund is your own capital?

2) How much above the minimum in your LP Agreement is your capital commitment?

3) Over the past 5, 10 years, what percentage of your comp were fees vs carried interest?
Whether you’re an entrepreneur raising money from a GP or a prospective LP investing in a fund (of any kind), the funds/GPs with the most skin in the game will act like a principal and be aligned with you and will seek to make money only when you do.
Read 4 tweets
7 Oct
SPAC Dynamics: An interesting turn in SPACs are those SPACs being raised by Venture Funds, Growth Funds or Crossover funds in the hopes of working with an existing portfolio company.

There are a lot of interesting turns that may play out here:
In some private company boards, politics can be intense with "Alpha" Directors and "Beta" Directors.

Also is the issue that the earliest investors are oftentimes the largest owners versus later stage investors who usually own less but have invested a lot more capital
Success of the startup typically amplifies the dynamics of both of these trends.

Now consider when one of the Directors approaches the CEO and the rest of the board with a SPAC:

1. Is it the Alpha Director or one of the other Beta Directors? How will that drive reactions?
Read 5 tweets
1 Oct
Running a company in 2020 is hard. It's no longer just about employees and shareholders. It's now also about stakeholders of which there are many:

Regulators, employees, partners, existing users

But the most important, imo, are mass market potential new users (MMPNU).
MMPNUs are critical because they are the only way of achieving a massive outcome. You can build a very good/big company without MMPNUs, but not necessarily world-changing.

If you want to maximize MMPNU demand, you need to understand their psychology.
MMPNUs are not picking features and functionality - that's what early adopters do.

MMPNUs are initially triggered by virality but their choices are cemented by a sensation that the product is aligned with who they are.

When it is, they adopt. When it's not, they churn.
Read 5 tweets

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