Over the last year a few things have become clear: the world is more uncertain than ever, and the situation for small businesses is more perilous than ever.
Technology and capital can play a role in solving this problem.
It may sound boring to some but Insurance is a key enabler of economic growth and backstops trillions of dollars of economic activity.
As many business owners found out, significant gaps exist in coverage for the business interruptions that are becoming more and more frequent.
@davidsoloff and I are building @ottrisk to combine machine learning with traditional risk underwriting to make a meaningful start in filling the business interruption coverage gaps which are upending economic lives.
To learn more please read my one pager or visit ottrisk.co
If you want to help, we are looking to partner with and hire data scientists, engineers, actuaries, underwriters, and financial markets professionals.
Email hello@ottrisk.co to get in touch. 🙏
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A children's book explanation of what's happening:
1. If you are "smart money" you are allowed to take your $1 and leverage it up to $15+
2. You can now buy $15 of stock AND if you promise to short companies, you can short $15 of stock as well
3. In finance language, this means that you are $30 "gross" ($15 of longs + $15 of shorts) but $0 net (+$15 of longs -$15 of shorts). This makes everyone feel good because it feels like you are taking zero risk...but in reality, your $1 is exposed to $30 of risk.
4. Now you go around and tell your friends about both your longs and your shorts and when you do it at a restaurant vs on Reddit, its called an "ideas dinner".
5. You also publish your longs on a quarterly lag via an SEC rule. You don't have to tell anyone about your shorts.
Here's the story of how I came to own a piece of the @warriors.
In 2011, I was 34 and had left $FB to start @socialcapital. When I was raising my first fund, I spoke to @peterthiel about investing. He asked me how much I planned to invest as the founder and only keyman.
- 1,000 total proposals submitted
- 156 were rated "Excellent" and were surveyed
- 29% were collaborative efforts
- 86% male / 14% female
- 38% non US (45% non US citizens)
- 24 countries represented
- 51% work in the private sector
Passion about climate change and recognition that this is one of the biggest challenges of our time was the driver for almost all applicants.
More than half of applicants were also interested in working with us on setting up this NewCo.
•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).
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.