TWiST News: $100k Veteran Pitch Winner EMPEQ, US unicorn dominance, and T500 Updates | E2055

Jason and Alex kick off the show (0s)

• The combination of capitalism and democracy is considered the best operating system humanity has come up with, allowing for competition and driving big outcomes (3s).
• The US economy continues to thrive despite the country's internal conflicts and messy elections, due to its fundamental belief in competition (30s).
• The importance of embracing competition is emphasized, as running towards it can lead to great outcomes, while running from it is seen as a mistake (40s).
• The show "This Week in Startups" is sponsored by Gusto, which offers easy online payroll, benefits, and HR services for modern small businesses, with a promotion of three months free when running the first payroll at gusto.com (52s).
• The show is also sponsored by Fundrise, which provides access to diversified portfolios of private real estate for all investors through its industry-leading platform, with a sign-up option at fundrise.com (1m4s).
• Another sponsor is Dev Squad, which offers an entire product team for the cost of one US developer, with a 10% discount at devsquad.com (1m18s).
• The hosts, Jason Calacanis and Alex Wilhelm, welcome viewers back to "This Week in Startups", a show that airs three days a week, with a possible exception of a fourth show this week (1m32s).
• Jason mentions that he hired Alex for three shows a week, with a total of 150 shows per year, and is hesitant to add a fourth show (1m46s).

Paul Atkins and SEC leadership (1m54s)

• Paul Atkins has been announced as the next chairman of the Securities and Exchange Commission (SEC) by the upcoming president, a move that may be well-received by the crypto community due to Atkins' background and views on crypto regulation (2m6s).
• Atkins is the founder and CEO of Patomak Global Partners, LLC, and previously served as a former SEC commissioner during the Bush W era from 2002 to 2008 (2m37s).
• The president's nomination of Atkins may be seen as a fulfillment of his promise to the Bitcoin community, indicating a potential shift towards less stringent crypto regulation (3m16s).
• Atkins is described as a "proven leader for common sense regulations" who believes in the promise of robust and innovative capital markets that are responsive to the needs of investors (4m8s).
• The president's statement on Atkins' nomination highlights his recognition of the importance of digital assets and innovations in making America's economy "greater than ever before" (4m27s).
• The nomination is seen as part of the president's efforts to create a more favorable environment for innovation in the crypto space, including the potential creation of a national Bitcoin trust and allowing more innovation in the space (4m58s).
• The previous SEC chairman, Gary Gensler, had resigned, and the new leadership under Atkins is expected to bring a different approach to regulating the crypto industry (5m11s).
• The market reaction to the news has been minimal, with Bitcoin's price remaining relatively stable, suggesting that the news may have been "priced in" by the market (6m24s).

Corporate security concerns (6m36s)

• United Healthcare CEO Brian Thompson was fatally shot in a targeted attack in New York, with the suspect using a firearm with a silencer and escaping on a city bike (6m44s).
• The incident occurred at 6:45 in the morning at a public event for United Health's shareholders, suggesting it was planned (7m15s).
• The suspect's use of a silencer implies a level of professionalism, while the escape on a city bike suggests amateurism (7m44s).
• An all-points bulletin has been issued, and authorities are working to lock down the island of Manhattan to prevent the suspect's escape (8m2s).
• The incident is expected to lead to a rapid increase in corporate security budgets, as CEOs of notable companies may no longer be able to move around freely without security (8m19s).
• The incident is being contrasted with a recent stabbing spree in New York, which was committed by a mentally ill individual and is considered easier to reconcile and process (8m58s).
• Research suggests that CEOs are often targeted by individuals who feel mistreated or despondent, and that layoffs or conflicts at work can be a trigger for violent behavior (9m42s).
• The suspect in the Brian Thompson shooting started firing from 20 feet away, hitting the CEO three times, and even fired one shot while he was down, indicating a desire to make an example of him (10m16s).
• The discussion touches on the topic of gun ownership and the possibility of a gun-free environment in the United States, where there are several hundred million guns, making it nearly impossible to achieve without screening every single person (10m41s).
• The idea of a gun-free environment is compared to the Northeast, where guns are restricted, and cities like New York, where handguns are not allowed in Manhattan, unless the individual is a famous person or has a special permit (11m56s).
• The conversation also mentions a past scandal in New York, where under a hundred carry permits were given to celebrities or people who had donated, including Howard Stern (12m2s).
• The topic of freedom of speech is also brought up, suggesting that if one does not like guns or certain words, they might consider moving to a different country, such as England or Australia, which have different views on freedom of speech and gun ownership (11m17s).
• The idea of corporate America arming itself to protect its principles is also mentioned, in light of recent tragedies and the country's gun culture (11m3s).

Gusto - Get three months free when you run your first payroll (12m18s)

• Gusto is a platform designed to help businesses run payroll, handle benefits, onboarding, and HR in one place, allowing entrepreneurs to focus on building their startups (12m18s).
• Over 300,000 businesses trust Gusto, and the platform can grow with a startup as it scales, handling state and federal taxes for staff across the country (12m31s).
• Gusto offers various services, including the option to provide a 401k plan for employees and assistance with compliance, with three out of four employers stating that Gusto helps them be government compliant (12m49s).
• Gusto is known for its simple and easy-to-use software, making it easier for businesses to manage their HR needs (12m59s).
• A special offer is available for new users, providing three months of Gusto's services for free, with no hidden fees, by visiting gusto.com/twist (13m18s).

Mike Sherbakov and Herbert Dwyer join the show (13m24s)

• Mike Sherov from the Veteran Fund and Herbert Dwyer, the CEO of EMPEQ, are the guests for the day, with the Veteran Fund having just closed their first fund of $21 million three weeks ago, and EMPEQ winning $100,000 in the veteran pitch competition (13m41s).
• The host expresses gratitude to Mike and Herbert for their service, acknowledging the sacrifices made by military veterans and the importance of a volunteer military in defending the country and democracy around the world (14m41s).
• Mike Sherov shares his background as a first-generation immigrant who joined the Marines at 18 years old, feeling a duty to serve the country that provided for his family, and later became a founder and investor (15m25s).
• Mike explains that the Veteran Fund invests in the founder archetype of a military veteran, considering them to have gone through the world's greatest Leadership Academy, and being mission-focused and willing to run through walls (16m21s).
• The Veteran Fund initially aimed to raise $10 million but ended up closing over double at $21 million, with portfolio companies like EMPEQ doing well due to the leadership of military veterans (16m38s).
• The companies in the Veteran Fund's portfolio operate in various sectors, including space, cyber defense, and more, and are performing well due to the leadership of military veterans (16m42s).
• The portfolio companies of a venture capital firm include Vaton, Nelson Mills' underwater submersibles, and Dan Maggie and Chad McCoy's Firestorm unmanned aerial systems. (16m56s)
• Firestorm recently closed a series A round and secured a $100 million contract, making them a standout in the portfolio. (17m37s)
• Another notable company is Lunar, which successfully landed on the moon in February and plans to return, making them a fascinating investment opportunity. (17m41s)
• The venture capital firm's investments focus on areas that matter, such as space, cyber defense, and advancing America through venture capital. (18m0s)
• The firm's partners, including Ryan MTI, Justin Nama, Lisa Song Sutton, and the speaker, have reached a point in their careers where they want to focus on investments that align with their values and make a positive impact. (18m5s)
• The speaker believes that discipline, focus, running through walls, leadership, and recruitment are essential qualities for founders, but also acknowledges that sometimes founders need to be rule-breakers and take calculated risks to succeed. (18m41s)
• The speaker notes that in the military, particularly in the Marines, there is a culture of adaptability and overcoming obstacles, which can sometimes involve bending or breaking rules, but also emphasizes the importance of learning to follow rules and protocols before earning the freedom to be more flexible. (19m42s)
• Veterans possess valuable skills such as leadership, resilience, and purpose, which are also desirable traits in great founders, in addition to their ability to adapt and overcome challenges (20m19s).
• Veterans are trained to have contingency plans and understand how to adapt when things do not go according to plan (20m17s).
• The conversation is directed at Herbert, who is asked to provide information about his company, EMPEQ, which was the $100k Veteran Pitch Winner (20m33s).

Herbert Dwyer on EMPEQ (20m37s)

• Herbert Dwyer, a Marine Corps veteran and founder of EMPEQ, emphasizes the importance of being flexible, a value he learned in the military, which is part of his company's culture and ethos (21m0s).
• EMPEQ won a $100,000 pitch competition, beating out over 200 other veteran-led companies, which is a deep honor for Dwyer and his team (21m56s).
• EMPEQ focuses on providing instant equipment insights, helping humans interacting with equipment at scale to make better decisions faster by connecting equipment with the necessary information (22m42s).
• The company's mission is to provide deep information about equipment or its parts, allowing for more informed decision-making, and Dwyer uses the example of finding a replacement light bulb for a refrigerator to illustrate the problem his company solves (22m50s).
• Dwyer's personal experience with multiple homes and water heaters was a catalyst for his work with EMPEQ, as he aims to prevent equipment failures and make maintenance easier (24m2s).

Fundrise - Sign up today (24m21s)

• AI is expected to be one of the biggest wealth creation events in history, with experts predicting it could add over $15 trillion to the global economy by 2030 (24m24s).
• Most AI revolution developments are being built and funded in private markets, primarily through Venture Capital, limiting early investment opportunities for public market investors (24m49s).
• The Fundrise Innovation Fund is a $125 million fund that allows individual investors to own shares in pre-IPO tech companies, including prominent AI names, with a relatively low investment minimum (24m58s).
• This fund aims to level the playing field for everyday investors by providing access to private market investments, where a significant amount of value is created (25m17s).
• To learn more about the Fundrise Innovation Fund, interested investors can visit fundrise.com/twist and carefully review the investment material, including objectives, risks, charges, and expenses (25m27s).
• The fund's prospectus and additional information can be found at fundrise.com/Innovation (25m40s).

Technology applications in military and equipment management (25m44s)

• A smartphone can be used to take pictures of equipment for a quick site survey, which can be useful for any company, not just military organizations, to manage their equipment and parts inventory (25m45s).
• The company EMPEQ has military customers, including the Pentagon and the Air Force headquarters, and also serves other businesses with its B2B model (26m1s).
• Many companies, including those in the critical infrastructure marketplace, still use manual methods like pen and paper to manage their equipment and parts, with 87% of them using analog capture devices (26m39s).
• EMPEQ's technology uses AI to read labels, perform OCR, and make sense of the data, allowing for faster and more cost-effective inventory management (27m12s).
• The company initially used a per-seat pricing model but later switched to a license-based model, where customers pay a yearly fee for unlimited use, which has proven to be highly scalable (28m5s).
• This pricing model has not impacted EMPEQ's gross margins negatively, as it has reduced sales and marketing costs, and the company has seen increased margins with this new model (28m58s).
• The company plans to continue using this pricing model for big companies but may introduce a traditional pricing model in the future to accommodate smaller customers and automate the onboarding process (29m29s).
• EMPEQ's strategy is to focus on a specific ideal customer profile, targeting companies that desperately need a solution, have a budget for it, and see the value in it, and are not too large or too small (29m50s).

SaaS growth, funding, and customer profiles (30m15s)

• EMPEQ is experimenting with two or three ideal customer profiles (ICPs), with a focus on field analysts who are highly analytical and deal with various equipment or parts as part of their job (30m27s).
• These field analysts need deep information about the equipment or parts they are working with, and EMPEQ's technology helps them identify and verify the authenticity of parts, including detecting counterfeit parts (30m48s).
• The company's technology is particularly useful in industries such as aerospace, where counterfeit parts can have serious safety implications, and EMPEQ's solution can help prevent accidents and ensure compliance with regulations (31m9s).
• EMPEQ has achieved significant growth, with a 300% increase in revenue in 2024, reaching an estimated $1.4 million, and the company expects to exceed this estimate by the end of the year (32m18s).
• The company's growth trajectory is often referred to as "triple, triple, double, double," which means that the company starts with $100,000 in revenue, then grows to $500,000, then $1.5 million, and eventually reaches $6 million, with the goal of continuing to grow and expand (32m38s).
• EMPEQ has raised a total of $2.5 million in equity and convertible debt, and has also received $1 million in grant funding from New York State, bringing the total amount raised to $3.5 million (33m17s).
• The company is also eligible for a one-to-one match of up to $4 million in funding from the federal government, which will be applied to in 2025 (34m23s).
• EMPEQ's website is empeq.co, where people can learn more about the company's solution and technology (34m40s).

EMPEQ's dual use technology and contact information (34m42s)

• EMPEQ won a $100K pitch competition, but the investment is being bumped up to a minimum of $250, likely closer to $300, due to the company's impressive dual-use technology and strong commercial traction (35m21s).
• The company's dual-use technology allows it to have both commercial and government applications, which can lead to non-dilutive capital in the form of SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) funding (35m41s).
• SBIR and STTR funding is essentially R&D and product development non-dilutive funding provided by the government, with billions of dollars available to companies (35m55s).
• EMPEQ's technology also makes it eligible for fund matching through TFI (Technology Funding Initiative) (35m50s).
• For those interested in learning more about the veteran fund or potentially participating as an LP, the fund's contact information is "Veteran Fund" (35m16s).
• The fund is not currently fundraising and is targeting a $100 million cap (35m12s).
• Herbert is the contact person for EMPEQ, and the company will be back to market next year (35m8s).

DevSquad - Get an entire product team for the cost of one US developer plus 10% off (36m33s)

• DevSquad offers a complete product team from Latin America, consisting of two to six full-stack developers, a technical product manager, and specialists in areas such as product strategy, UI and UX design, DevOps, and quality assurance, all for 75% less than a US-based team (37m12s).
• The team is available without a long-term commitment, allowing for seamless collaboration and the ability to work on the same time zone as the client (37m36s).
• DevSquad can help founders find top-tier talent and manage timelines, making it easier to build a dream team, especially before raising a series A or series B (36m57s).
• The company is compared to Professor X, who knows where to find exceptional mutant developers, or 10x devs, that can make a significant impact on a startup (37m6s).
• DevSquad is offering 10% off the first engagement for clients who visit their website, Devsquad.com, and use the code "twist" (37m49s).

Launch CloudKitchens incubator and food delivery tech (38m1s)

• A 14-week incubator program for food and tech entrepreneurs is being launched, in collaboration with Cloud Kitchens, founded by Diego and Travis, formerly of Uber, to help entrepreneurs break into the ghost kitchen space and create the next great food brand (38m1s).
• The program aims to provide a lower-cost alternative to traditional restaurant startups, which can require investments of millions of dollars, by utilizing ghost kitchens that cost low thousands of dollars a month and are plugged into high-volume food delivery infrastructure (39m9s).
• The incubator will provide participants with mentorship, networking, and a micro fund of around $1-2 million, as well as guidance on kitchen economics, operations, marketing, and branding within food delivery apps (41m12s).
• The program is currently on its second class and has already seen great companies participate in the first class, with the goal of helping entrepreneurs navigate the technical aspects of the ghost kitchen space and scale their businesses effectively (41m4s).
• Applications for the incubator can be submitted at ck.launch, and the program is internally referred to as "LICK" (41m24s).
• A new bakery coffee shop, Brown Be Coffee, opened near the neighborhood and despite initial uncertainty, it has become successful with a line of customers out the door every time, showing that sometimes entrepreneurs take a gamble without a minimum viable product (MVP) and it pays off (41m41s).
• Modern technology stacks allow businesses to use services like Uber Eats or DoorDash drivers as an API service, and many are trying to convert customers to directly ordering from their websites to avoid fees (42m23s).
• Building direct relationships with top customers and offering high-margin items can be beneficial, such as including a $100 item on every menu to cater to "whales" in the system (42m50s).
• Some food services offer additional items like kids' school lunch or breakfast the next day, similar to what private chefs do, where they prepare meals for multiple days (43m35s).
• Private chef services can be expensive, but some local meal services offer similar options at a lower cost, such as a one or two-person shop that pre-makes meals for customers to finish at home (44m5s).

Twist 500 database and Hugging Face spotlight (44m28s)

• In Silicon Valley, high-end chefs can earn an all-in compensation of $150,000 to $300,000 per year, leading to a competitive market where elite individuals brag about their chefs' previous work experience at renowned restaurants like Quin, a Michelin-starred establishment (44m28s).
• A potential business idea involves hiring a chef to cook meals for a day, with the cost including the chef's fee and the price of food, which could be around $800 for a day's worth of meals (45m37s).
• This concept could be developed into a marketplace business, where customers pay a fee for a chef to prepare meals for several days, including dinner and breakfast or lunch options (45m38s).
• The meals could be prepared in advance, such as egg bites similar to those sold at Starbucks, providing customers with convenient grab-and-go options (46m6s).
• The cloud kitchens model allows for starting a business with a relatively low initial investment, around $25,000 or less, making it a more accessible venture (46m35s).
• Entrepreneurs with experience in the food industry, such as sous chefs or front-of-house staff, could consider starting their own cloud kitchen business with a unique concept, such as a branded restaurant specializing in a single menu item like Caesar salad (47m0s).
• A potential business idea, "Caesar Salad Palace," could offer variations of Caesar salad, including different types of anchovies, wraps, and burgers, providing customers with a unique dining experience (47m23s).
• The discussion starts with a conversation about food, specifically a favorite dish called the Vermonster, a breakfast wrap with sausage, scrambled eggs, and Maple aoli, which is considered a great idea for a 24-hour breakfast wrap shop (47m45s).
• The idea of a 24-hour breakfast wrap shop is well-received, and the concept of having breakfast all day is appreciated, with some people even considering it sophisticated to have an omelet for dinner (48m40s).
• The conversation then shifts to the TWiST 500, a database of the top 500 private companies, selected editorially by the research team, with the goal of reaching 250 companies by the end of the year (49m23s).
• The TWiST 500 database is available at twist500.com and aims to help people identify top private companies after well-known ones like SpaceX and Stripe (49m30s).
• A new company is added to the TWiST 500 database, Hugging Face, an emoji-based startup that hosts AI models, sells AI compute, and hosts an AI community, with a business model mostly based on SAS and some on-demand services (50m4s).
• Hugging Face is a well-known company in the AI space, backed by Lux Capital, and has top-five mind share among AI companies, allowing users to track and use open-source models (50m32s).
• Hugging Face, an AI company, raised $395 million, indicating the AI market's high activity and potential for growth (51m20s).
• Lux Capital led several rounds of funding for Hugging Face, which could result in significant financial gains for investors if the company performs well (51m8s).
• Hugging Face is often referred to as the "GitHub of AI," as it provides a platform for AI models, similar to how GitHub hosts code repositories (51m39s).
• GitHub, owned by Microsoft, also hosts AI models, and competitors like Kaggle could be added to the Twist 500 database as competitors (51m45s).
• The Twist 500 is planning a series of live events next year, featuring companies from specific industries, such as robotics, with the goal of creating content and facilitating connections between founders (52m22s).
• The events will be held in cities with high concentrations of top companies in the featured industry, such as Austin or Boston, and will likely have a multi-track format with several rooms and tracks (52m30s).
• The events are not intended to generate revenue but rather to create opportunities for founders to meet and share knowledge, with a focus on single-track or multi-track formats (52m41s).

Live events for Twist 500 and EU startup culture (53m7s)

• A potential event format is proposed, where 10 companies would pitch for 30 minutes each, with 15-20 minutes for the pitch and 10-15 minutes for questions from the audience, and the groups would then have dinner together (53m9s).
• The event format could be expanded to have 12 companies per day, with five stages, resulting in 60 companies per day, and could be held over two days, allowing for 120 companies to participate (53m50s).
• The idea of hosting a poker game near the event is mentioned, as a way to collect venture capital money (54m3s).
• The host mentions that they played poker previously and were up by $150, but notes that their poker game has fallen off due to having small children (54m16s).
• The company Hugging Face is discussed, and it is mentioned that it started as a chatbot and then open-sourced its model, leading to the growth of the company (54m34s).
• The importance of keeping peripheral vision open is emphasized, allowing founders to notice new opportunities and pivot when necessary (54m59s).
• The idea of solving a "hair on fire" problem for customers is mentioned, and the importance of having a great team and product is emphasized (55m12s).
• The example of Christopher Columbus is used to illustrate the idea of keeping peripheral vision open and discovering new opportunities (55m41s).
• The founder of Hugging Face is invited to come on the show, and the idea of having them on the show is proposed as a way to announce and discuss the TWiST 500 (56m1s).
• The founder of Hugging Face, Clément, is mentioned as a potential guest, due to his interesting 2025 AI predictions and public accountability in grading his 2024 predictions (56m16s).
• The EU's economy is not growing as much as it could be, and a report from the EU in September highlighted the reasons behind this, including rules, regulations, and a culture that doesn't celebrate entrepreneurship, with the report stating that there is no EU company with a market capitalization of over 100 billion euros that has been set up from scratch in the last 50 years (56m55s).
• In contrast, six US companies with valuations above 1 trillion euros have been created in the same time period, indicating a significant gap between the US and EU (58m11s).
• A study by Andrew M from MIT lowered the threshold to 10 billion euros and found that there are several EU companies that have reached this milestone, including Spotify and Clash of Clans, but the US still dominates in terms of the number of companies that have reached this level (58m24s).
• A visual representation of the market capitalization of US and EU companies shows a significant difference, with the US having many more large companies, including the "Magnificent 7" of Amazon, Google, Microsoft, Apple, Nvidia, Meta, and others (59m10s).
• The largest non-tech companies in the US include United Health, Costco, and Vertex, although some companies like Tesla and T-Mobile could be considered tech companies (59m44s).
• The dominance of US companies is attributed to American exceptionalism and a culture that celebrates entrepreneurship and risk-taking (1h0m0s).
• Differences in family business ownership and venture capital participation exist between the US and other countries, such as Italy, England, and France, where old money tends to focus on capital preservation rather than investing in new technologies (1h0m15s).
• In contrast, old money in the US, particularly in Texas, is more likely to invest in tech deals and participate in venture capital, with some individuals anonymously investing large sums of money (1h0m54s).
• The concept of American exceptionalism, a young country with a strong culture of innovation, contributes to the unique capital formation and capital markets in the US (1h1m14s).
• Regulation plays a significant role in shaping the US capital markets, with ongoing discussions about accredited investor regulations and the impact of regulatory bodies on the industry (1h1m26s).
• The crypto industry has become increasingly influential, with a significant percentage of young men supporting Trump potentially due to his pro-crypto stance, and a substantial portion of his fundraising coming from pro-crypto individuals (1h1m55s).
• Crypto is no longer a niche market in the US and other countries like South Korea, with a large contingent of people holding or supporting cryptocurrencies (1h2m17s).

Crypto's impact on elections and economic growth (1h2m28s)

• The discussion revolves around the impact of cryptocurrency on the US election, with the mention of hundreds of millions of dollars spent by crypto super packs to back several hundred candidates, mostly Republicans, and some Democrats, which led to a significant influence on the outcome (1h3m20s).
• The new head of the SEC is aligned with the crypto industry, indicating a win for the industry, with a high return on investment (ROI) for every dollar spent in these crypto super packs (1h3m42s).
• A comparison is made between the US and Europe, highlighting that the US has a significant lead in terms of companies born from scratch and now worth more than $10 billion, with a 70x difference (1h4m57s).
• This disparity is seen as a concern for Europe's economy, dynamism, and ability to compete with China (1h5m7s).
• A statement is made that capitalism plus democracy is the best operating system humanity has ever come up with, despite its flaws, and that socialism is the road to slow economic growth (1h5m33s).
• The US is described as a country that is at war with itself, with messy and sloppy elections, but still considered a better option than socialism (1h6m5s).
• A tweet from Jason is mentioned, pointing out that Europe's economy is tiny compared to the US (1h4m27s).
• A mention is made of a website run by Molly White, which tracks crypto packs and their involvement in the election (1h3m14s).
• The discussion also touches on the topic of Tesla being classified as a tech company, with Jason agreeing that it should be scooted into the green category (1h4m36s).
• The economy thrives due to the fundamental principle of competition, where running towards competition is beneficial, and it's essential to support vibrant competition for significant outcomes (1h6m22s).
• A vibrant capitalist society has its set of problems, including people buying elections and using money as influence, but it also allows for innovation and high performers to earn more (1h7m29s).
• The concept of fairness is subjective, and in a competitive environment, high performers like actors George Clooney and Brad Pitt get paid more than those who are less skilled or less successful (1h8m13s).
• The idea of socialism is often misunderstood, and it's essential to define it, as it can refer to the redistribution of wealth, with the highest performers paying taxes that are redistributed to the rest of the society (1h9m28s).
• Socialism is often seen as a spectrum, with communism being a dictatorship that decides the winners and losers, while socialism throttles the winners and losers in favor of a more equal distribution of wealth (1h9m51s).
• The choice between a capitalist society with a wider gap between the rich and the poor, and a socialist society with a more equal distribution of wealth, is a personal preference, with each having its pros and cons (1h9m2s).
• The concept of universal healthcare is discussed, with the idea that it can be beneficial for taking care of more people and sharing the wealth, but it's also noted that this can be seen as a socialist idea (1h10m6s).
• The speaker believes in freewheeling capitalism as long as laws and rules are not broken, and admires people who reinterpret and fight to change the rules, such as those in the crypto, Airbnb, and Uber movements (1h10m25s).
• Socialism is defined as a system where everyone benefits and has a more similar outcome, but this can also lead to a lack of big huge successes that drive innovation and economic growth (1h11m1s).
• The idea of equal outcomes is discussed, with the speaker noting that this can be beneficial, but also that it's not always possible or desirable to have complete equality (1h11m4s).
• The speaker mentions that they have friends who are socialists and want universal healthcare and limits on wealth, but notes that this can be achieved in other countries, such as France, which has a high tax rate (1h11m40s).
• The definition of socialism is discussed, with the speaker noting that it's often used incorrectly and that what one person considers socialism, another person may not (1h12m13s).
• The speaker believes that their definition of socialism is typical for people in the tech industry, but notes that others may have different definitions (1h12m38s).
• Socialism is defined classically as a system where the means of production, distribution, and exchange are owned or regulated collectively by the community or state (1h12m45s).
• The speaker notes that what they described earlier is more like welfar capitalism, and that socialism is often misunderstood and used incorrectly (1h12m59s).
• The idea of collective ownership of certain elements of the economy is discussed, and the speaker notes that they are not in favor of this, but believes that it's an important concept to understand (1h13m17s).
• The speaker believes that decoupling healthcare from employment is a pragmatic idea that can be achieved through collective action (1h13m40s).
• The current state of the US government is seen as incompetent, leading some to believe that the free market could do better in providing healthcare services, with examples of urgent care and virtual doctor visits being paid for out of pocket (1h13m56s).
• Some wealthy individuals are opting for private healthcare, paying out of pocket for services and having a high-deductible catastrophic plan for emergencies (1h14m12s).
• The idea of a private-public partnership to provide affordable healthcare services is proposed, with the government working with competent vendors to negotiate costs, similar to what is being done with the military (1h15m1s).
• The concept of a global marketplace for healthcare services is discussed, with people traveling to other countries for procedures like plastic surgery due to high costs in the US (1h15m28s).
• The free market is seen as a potential solution to the healthcare crisis, with companies like Pranovo and urgent care services offering better service and lower costs (1h15m44s).
• Mark Cuban's cost-plus pharmacy is mentioned as an example of a more affordable option for prescription medications, with people opting to pay out of pocket rather than using insurance (1h16m0s).
• A personal anecdote is shared about receiving a large bill from Kaiser in California after a hospital stay, highlighting the high costs of healthcare in the US (1h16m15s).
• The idea that kindness from the collective does not constitute socialism is proposed, with examples of shared public goods like roads, schools, and bridges (1h16m33s).
• The distinction is made between public services like water utilities and aircraft manufacturing, with the latter being seen as a more socialist approach (1h16m53s).

Safety nets and basic needs in capitalism (1h17m2s)

• A capitalist society can have a safety net without being stuck in a state of stagnation, and it's possible to determine a percentage of the population that the safety net should cover (1h17m3s).
• In the US, the safety net currently covers around 35% of the population, with programs such as Social Security (68 million people, 20% of the population), Supplemental Nutrition Assistance Program (SNAP, 42 million people, 12% of the population), and Medicaid (23% of the population) (1h17m44s).
• There is overlap between these programs, making it difficult to determine the exact number of people covered (1h17m56s).
• The idea of a safety net is not just about providing financial assistance, but also about ensuring that basic needs such as food and healthcare are met (1h18m41s).
• Robert F. Kennedy (RFK) once suggested that if the US could provide healthy food for everyone, it would be a worthwhile investment, and this idea is still relevant today (1h18m55s).
• Providing healthy food and clean drinking water should be a priority, and programs such as Michelle Obama's initiative to provide healthy lunches for kids are a step in the right direction (1h19m33s).
• The importance of healthy eating and exercise is emphasized, but it's also acknowledged that indulging in unhealthy foods occasionally is not necessarily a bad thing (1h20m25s).
• The conversation highlights the need for a balance between providing a safety net and promoting healthy habits, and the importance of being sympathetic to those who struggle in a competitive society (1h18m39s).