WeRide IPO, Polymarket + Perplexity, the Trump Bump and more! | E1992

Jason and Alex kick off the show (0s)

• The discussion begins with a humorous analogy comparing the media's coverage of a political figure to drug addiction, suggesting that the media becomes reliant on the figure's attention-grabbing behavior.
• The conversation transitions to the topic of the podcast, "This Week in Startups," and the host's recent experience with COVID-19.
• The hosts discuss recent episodes of the podcast, including interviews with founders of companies on the "Twist 500" list, which highlights the most important private companies in the world.
• The hosts mention an interview with the CEO of Gusto, a payroll and HR software company, and discuss the company's success and the evolution of the HR and payroll space.

Evolution of startup costs and media aggregation (3m17s)

• The cost of starting a company has significantly decreased due to the abstraction of services like accounting, HR, and real estate. This allows more people to start companies and focus on product development.
• The cost of running a company has also decreased due to the availability of cloud services and managed services. In the past, companies had to invest in expensive hardware and software, but now they can access these services through APIs and subscriptions.
• The cost of software has also decreased significantly. Companies can now use free or low-cost tools like Mailchimp, Substack, and Beehive for email marketing and newsletters. This allows more people to access these tools and use them to grow their businesses.

Jason and Alex discuss Trump and Elon conversation (7m47s)

• The conversation discussed the recent conversation between Elon Musk and Donald Trump.
• The conversation was framed as a conversation rather than an interview, similar to the format of the podcast being discussed.
• The conversation generated a significant amount of attention and discussion, with many people reacting strongly to it.
• The speaker discussed the "Trump bump" phenomenon, which refers to the increase in viewership or engagement that a media property experiences when featuring Donald Trump.
• The speaker explained that the "Trump bump" can be addictive, as it creates a sense of euphoria and a significant increase in viewership, but can also lead to a hangover effect and a feeling of being brutalized.
• The speaker provided an example of the "Trump bump" on their own podcast, noting a significant increase in subscribers and views after featuring Trump.
• The speaker suggested that the "Trump bump" can lead media personalities to want to feature Trump again, as it can be a powerful tool for increasing viewership.

Google for startups. Accelerate your startup journey with the Google for Startups Cloud Program. Apply (10m9s)

• The Google for Startups Cloud Program offers startups $200,000 in Google Cloud credits, and up to $350,000 for AI startups.
• The program is designed to help startups grow and succeed.
• The program is available at startups.com/twist.
• The speaker discusses the phenomenon of "Trump bumps" in media, where coverage of Donald Trump leads to increased viewership and engagement.
• The speaker argues that both pro-Trump and anti-Trump media outlets benefit from Trump-related content, as it drives ratings and subscriptions.
• The speaker suggests that the media's obsession with Trump bumps may have contributed to his success in the past.
• The speaker also notes that the rise of alternative media sources may be threatening the traditional media business model.

Media's addiction to Trump coverage (13m46s)

• The media's focus on Trump is driven by the power of celebrity and the need to attract attention in a competitive media landscape.
• The media's financial struggles, coupled with the rise of social media and independent media outlets, have led to a focus on topics that generate clicks and engagement, even if they are not necessarily the most important or informative.
• The media's reliance on clickbait and attention-grabbing headlines can be seen as a cheap and low-rent approach to covering news, and it can lead to a lack of focus on important but less popular topics.
• The media's coverage of Trump can be compared to the coverage of other celebrities, such as Taylor Swift and Elon Musk, as they all generate significant attention and clicks.
• The media's focus on Trump can be attributed to his ability to generate controversy and unpredictable statements, which keeps audiences engaged and wanting to see what he will say next.

Vanta - Get $1000 off your SOC 2 (20m4s)

• Founders who want to sell to larger customers need to increase their average customer value (ACV) and lower their churn rate.
• To attract major buyers, companies must pass compliance checks, including obtaining SOC 2 compliance.
• SOC 2 is a standard that ensures companies keep customer data safe.
• Vanta simplifies the process of obtaining and renewing SOC 2 compliance, allowing customers to achieve compliance in two to four weeks on average.
• Vanta also automates compliance for other regulations like GDPR and HIPAA.
• Vanta can save companies hundreds of hours of work and 85% on compliance costs.
• Vanta is offering a $1,000 discount on SOC 2 compliance at vanta.com/twist.

Trump's media strategies and speech analysis (21m18s)

• The speaker discusses Donald Trump's media strategies and speech analysis, specifically focusing on his recent interview on Twitter Spaces.
• The speaker notes that Trump's repetitive nature in his campaign speeches can be tiresome for audiences, comparing it to an elderly person telling the same stories repeatedly.
• The speaker highlights the importance of asking follow-up questions to get to the heart of an interviewee's message, citing his own experience with Trump and Elon Musk's interview with him.
• The speaker discusses the challenges of conducting interviews on Twitter Spaces, particularly the lack of visual cues and the potential for interruptions.
• The speaker criticizes Trump's use of an open-air microphone during the interview, which resulted in poor audio quality and a perceived lisp.
• The speaker speculates that the lisp may have been caused by dentures, suggesting that Trump should invest in better audio equipment and dental care if he intends to participate in public forums.

Chinese autonomous vehicle startup WeRide’s IPO. (26m52s)

• WeRide, a Chinese autonomous vehicle company, is going public in the US this week.
• The company has raised $1.1 billion and has a valuation of $5 billion.
• WeRide is planning to raise approximately $100-$110 million through the IPO, with an additional $340-$380 million raised through a concurrent private placement.
• WeRide offers a range of autonomous driving services, including robotaxis and robo street sweepers.
• The speaker discusses the potential impact of WeRide's entry into the autonomous vehicle market on companies like Uber, Lyft, and Tesla.
• The speaker believes that there will be five major players in the autonomous vehicle market, and that companies that enter the market within an 18-month window of WeRide will be well-positioned to succeed.
• The speaker notes that WeRide has been operating for a year with a good safety record, with no reported crashes or fatalities.

AssemblyAI - Get 100 free hours to start building (30m4s)

• AssemblyAI is a company that provides speech-to-text AI models.
• These models can be used to turn voice data into new product capabilities.
• AssemblyAI's models are accurate, fast, and have a low word error rate.

Societal resistance to tech and the rise of self-driving cars (31m17s)

• The text discusses the societal resistance to self-driving cars and the potential for the technology to be commoditized.
• The speaker believes that self-driving technology will become widespread and that the number of rideshare trips will increase significantly.
• The speaker highlights the challenges of self-driving technology, particularly in areas with limited infrastructure and the need for a large-scale fleet to capture market share.
• The speaker discusses the potential for companies like WeRide to build out their fleets and compete with existing ride-sharing services like Uber and Lyft.
• The speaker believes that self-driving technology could significantly reduce the number of car accidents and fatalities.

Self-driving technology's impact on Uber and Lyft (37m14s)

• The text discusses the potential impact of self-driving technology on ride-hailing companies like Uber and Lyft.
• It highlights that Americans take over a billion trips per day in cars, and Uber reported 7.6 billion trips in 2022.
• The speaker argues that self-driving technology could significantly increase the market for ride-hailing services, as it would appeal to people who dislike driving and could encourage people to take more trips.
• The speaker notes that self-driving technology has advanced significantly in recent years, with cars now able to navigate highways with minimal human intervention.
• The speaker believes that Level 2 autonomous driving features, such as lane assist and adaptive cruise control, should be standard in all cars.
• The speaker acknowledges that some people are resistant to giving up control of their vehicles, but believes that the benefits of self-driving technology will eventually outweigh these concerns.

Polymarket and Perplexity partnership (40m8s)

• Polymarket, a prediction market platform, uses Ethereum as its underlying blockchain technology.
• Polymarket has seen significant growth in daily transaction volume and active traders, indicating its increasing popularity.
• The speaker highlights the "Generation Bet" concept, describing individuals who grew up with platforms like Robinhood, NFTs, and prediction markets, leading to a new generation of investors with experience in risk-taking and financial markets.
• The speaker argues that this generation's experience with financial markets, even if it includes losses and mistakes, will ultimately make them better investors in the long run.
• The speaker acknowledges the potential for addiction and financial ruin associated with these platforms but also recognizes the cultural shift towards financialization and the desire for alternative paths to wealth creation.
• The speaker compares the current trend of betting on prediction markets and NFTs to the historical use of lotteries as a way to access a different future.
• The speaker concludes by acknowledging the risks involved in these activities but also emphasizes the potential for learning and growth through experience.

Hacking capitalism and the FIRE movement (47m34s)

• Hacking Capitalism and the FIRE Movement: The text discusses the concept of "hacking capitalism," which involves individuals finding ways to opt out of or manipulate the traditional capitalist system. One popular method is the FIRE (Financial Independence, Retire Early) movement.
• FIRE Movement: FIRE emphasizes saving a significant amount of money, typically 25 times annual expenses, to achieve financial independence and retire early. This allows individuals to withdraw a portion of their savings each year while maintaining their principal.
• Variations of FIRE: The text mentions different variations of FIRE, including "lean FIRE" for those with lower savings goals and "fat FIRE" for those aiming for a larger total asset base.
• FIRE and Gen Z: The text suggests that the FIRE movement is particularly appealing to Gen Z, who may be disillusioned with traditional career paths and seeking alternative ways to achieve financial security.
• FIRE and Family Planning: The text acknowledges that FIRE can impact family planning, as individuals may choose to have fewer children or delay parenthood to focus on saving and achieving financial independence.
• FIRE and Substack: The text highlights the potential for Substack to be a part of a FIRE strategy, as it can provide a source of passive income.
• FIRE as a Response to Capitalism: The text argues that the FIRE movement and other forms of "hacking capitalism" are a natural response to the perceived shortcomings of the current capitalist system, such as job insecurity and the increasing cost of living.
• AI Startups and Gen Z: The text briefly discusses the rapid growth and partnerships of AI startups, particularly Polymarket and Perplexity, which are attracting significant investment and are seen as potential players in the Gen Z market.

Perplexity's AI competition and the value of proprietary data (54m12s)

• Perplexity faces competition from OpenAI's ChatGPT, which is developing its own search engine. This poses a significant threat to Perplexity's business model, as OpenAI's search engine could potentially offer similar or even superior functionality.
• The value of search engines is immense, with Google's market cap being largely attributed to its dominant search market share. This highlights the potential financial rewards for companies that can successfully compete in the search market.
• The speaker argues that Perplexity's reliance on ChatGPT's underlying language model (LLM) creates a vulnerability. If OpenAI decides to compete directly with Perplexity, it could potentially cut off access to its LLM, leaving Perplexity without a core component of its technology.
• The speaker emphasizes the importance of proprietary data in the AI space. He cites the opinions of industry experts who believe that AI models without proprietary data are less valuable and may struggle to compete in the long term.
• The speaker questions whether OpenAI's primary goal is to develop a search engine or an AI model. He suggests that OpenAI's commercial interests may ultimately lead to the development of a search engine, even if its stated goal is to create a general-purpose AI.

Reddit's traffic and monetization (1h0m45s)

• Reddit experienced a significant surge in traffic, tripling its monthly visitors from 132 million to 346 million between August 2023 and April 2024.
• This traffic increase is attributed to users appending "Reddit" to their Google searches, seeking human-written content instead of AI-generated or sponsored results.
• Despite the high traffic, Reddit faces challenges in monetizing its advertising due to its sophisticated user base, which is more likely to use ad blockers and be cynical about advertising.
• The text suggests that Reddit's value is substantial, but unlocking it will be difficult.
• The speaker proposes that Reddit could be subsidized by allowing users free access while monetizing through AI deals on the backend.
• The speaker also speculates that Google might be interested in acquiring Reddit, but potential antitrust concerns could hinder such a deal.
• The text discusses the potential for mergers and acquisitions among large companies, suggesting that companies with market caps under $250 billion could engage in a "Battle Royale" of acquisitions.
• The speaker highlights the potential synergies that could arise from combining companies like Uber, DoorDash, Airbnb, and Reddit, creating a juggernaut with a large user base and diverse services.

European venture capital and the rise of unicorns (1h7m35s)

• A recent $1.3 billion fundraise for two European venture capital funds, one focused on early-stage companies and the other on growth-stage companies, has sparked discussion about the potential of the European startup ecosystem.
• While Europe is often perceived as a fragmented market with high regulation, recent data suggests that venture capital investment in Europe is on the rise, surpassing 2020 levels and approaching 2021 levels.
• The concentration of European unicorns in the Nordic region, particularly Sweden and Denmark, is attributed to factors such as a strong education system, a focus on design skills, a hard-working culture, and a colder climate that encourages people to stay indoors and work longer hours.
• The text suggests that the perception of Europe as a less attractive market for startups may be outdated, and that the potential for growth in the region is being underestimated.

Work culture: Europe vs. US (1h13m0s)

• There is a difference in work culture between Europe and the United States. European workers tend to value a better work-life balance, with longer vacations and a stronger emphasis on being "off the clock" after work hours. This is in contrast to the United States, where workers may be more willing to work longer hours and check emails outside of work hours.
• The text suggests that this difference in work culture may be related to the different climates of the two regions. The rainy climate of Seattle, for example, is linked to the popularity of coffee culture, as people need a stimulant to get through the day. Similarly, the cold climate of Nordic countries is linked to the popularity of heavy metal music, as people may be more likely to stay indoors and express themselves through music.
• Despite these differences, Europe is emerging as a leader in the field of artificial intelligence, with France specifically being a major hub for AI investment. This suggests that Europe is capable of fostering innovation and attracting investment, even with a different work culture than the United States.

Investing in AI startups and consulting opportunities (1h16m11s)

• The speaker believes that AI models are currently overvalued and that the future of AI lies in open-source projects.
• The speaker suggests investing in companies that build support tools and infrastructure around open-source AI projects, such as Hugging Face.
• The speaker also suggests that there is a significant opportunity for consulting firms to provide services to companies looking to implement and deploy AI software.
• The speaker cites examples of successful consulting firms like Razorfish and Agency.com, which were eventually acquired by larger agencies.
• The speaker believes that there is a high demand for AI consulting services, as evidenced by the complexity of tasks like writing tweets for prominent figures like Aaron Levey.