He founded Greensill Capital to disrupt "supply-chain finance", a $7T industry that supports global trade.
A few months ago, Greensill was headed for a $40B IPO. Now, it's likely worth $0 (oh, and Softbank is involved).
WTF happened? π§΅
2/ First, what is supply chain finance (SCF)?
Let's say you supply widgets to a car company. Typically, you give CarCo 90-120 days to pay its invoice for the widgets.
Waiting for the money sucks, though. You have working capital needs that CarCo's money could help with.
3/ Let's say your invoice to CarCo is $1000.
A bank or lending organization will offer you this SCF deal:
1β£They advance you $990 upfront
2β£Take on the credit risk of CarCo's bill owing
3β£At 90-120 days, CarCo pays the full $1000 and the financier profits $10
1/ In 2004, Elon Musk and Jeff Bezos met for a meal to discuss space.
It was one of their few in-person interactions.
The conversation they had perfectly captures the different approaches they've taken to space exploration.
Here's the story π§΅
2/ For Bezos, the path to the meeting began in 1999 when he and famed sci-fi author Neal Stephenson watched the film "October Sky" (about NASA engineer Homer Hickam)
After the viewing, the Amazon founder told Stephenson he always wanted to start a space company...
3/..and Stephenson said "why don't you start today?"
Stephenson -- author of classics such as "Snow Crash" -- was hire #1 and put together a team of thinkers and engineers.
Bezos dropped in on the team one Saturday a month, mostly to discuss alternatives to chemical rockets.