DFJ's Steve Jurvetson on the Rise of the Machines | Disrupt SF 2017

Transcript

I don't think I'm on honey's mic needs to be on well Steve is I think widely considered one of the smartest investors in Silicon Valley he's somewhat famously graduated from Stanford and two and a half years at the top of his class went on to work for Steve Jobs at Apple and next and has made a lot of early very smart bets as Jordan referenced incl... Read More

Summary

In this video, Steve Jurvetson, a prominent investor in Silicon Valley, discusses two trends that are currently sweeping through the tech industry: Initial Coin Offerings (ICOs) and Softbank's Vision Fund. He shares his thoughts on ICOs, stating that he finds them fascinating and sees them as a novel financing mechanism for ideas that otherwise would have difficulty getting traditional funding. He also discusses Softbank's Vision Fund and its impact on the VC industry, stating that while it may drive up valuations, it also provides more capital for startups. Jurvetson also talks about his investments in companies like Zuke's and Neuralink, as well as his views on the regulation and future of AI. Lastly, he expresses his excitement about flying cars and the potential they offer.

Questions & Answers

Q: What are Steve Jurvetson's thoughts on Initial Coin Offerings (ICOs)?

Steve Jurvetson finds ICOs fascinating and sees them as a combination of novel financing mechanisms for ideas that might otherwise struggle to get traditional funding. He believes that they are lubricating a huge amount of innovation and will lead to some great things in the future. He sees a little split between investing in protocols and assets and is interested to see the investment enthusiasm for different types of ICOs.

Q: Does Steve Jurvetson believe that ICOs could endanger the VC industry?

Steve Jurvetson does not worry about ICOs endangering the VC industry. He does have concerns about fraud and people investing without proper scrutiny, but he is more focused on the potential for innovation and the positive impact that ICOs can have.

Q: What is Softbank's Vision Fund and what impact does it have on the VC industry?

Softbank's Vision Fund is a $100 billion tech fund that has been raised to invest in various tech startups. It is considered the largest tech fund ever raised. It marks up deals and drives up valuations on one hand, which can be seen as a negative for VC industry. However, on the other hand, it provides more capital for startups, which is considered good news. Steve Jurvetson believes that more money is always better for startups and that in the long run, the better product and service should win.

Q: What is Steve Jurvetson's view on Softbank's investment in Zuke's?

Steve Jurvetson does not confirm or deny Softbank's investment in Zuke's. He only mentions that they hope various parties are excited about the company. He does talk about the potential synergy and overlap between Zuke's and Tesla, which could have led to Elon Musk's public statements about wanting to acquire all the contestants in the autonomous driving space.

Q: Is Steve Jurvetson planning to invest in Elon Musk's The Boring Company?

Steve Jurvetson would love to invest in The Boring Company, but Elon Musk has not taken any outside investments for the company yet. He compares it to SpaceX, where Elon Musk put the first $100 million before getting any external investors. Steve Jurvetson believes that The Boring Company has the potential to revolutionize tunneling and infrastructure by using electric drivetrains and making tunneled transportation simpler and more cost-effective.

Q: What are Steve Jurvetson's thoughts on the regulation of AI?

Steve Jurvetson's thoughts on the regulation of AI are mixed. He believes that there is a difference between current AI technologies and future AI technologies that could be superhuman or close to human intelligence. While he acknowledges the potential risks, he is more concerned with the concentration of AI power in the hands of one company. He believes that regulation should focus on ensuring that there is not too much concentration of power and that there are provisions for the eventual arrival of smarter AI systems.

Q: Do founders pay enough attention to the potential negative impact of AI?

Steve Jurvetson believes that founders need to think more about the potential negative impact of AI and how to navigate towards a future where AI is smarter and more capable than humans. He encourages founders to think about the big hairy audacious goals and how their businesses can contribute to the inevitable future of an information-based economy. He also mentions the importance of network effects and power laws in the tech industry and believes that founders should think about ways to deal with the increasing scale of inequality.

Q: Is Steve Jurvetson planning to invest in flying car companies?

Steve Jurvetson has been looking into flying car companies for some time and is excited about the possibilities they offer. He mentions that there are already companies working on flying cars and that he has met with around 12 of them. However, he also states that the regulatory environment for flying cars is uncertain, and it is difficult to predict when they will become a reality.

Q: How does Steve Jurvetson feel about the concentration of power in tech companies like Google and Facebook?

Steve Jurvetson acknowledges the concentration of power in tech companies like Google and Facebook but does not believe that breaking them up is the solution. He believes that in the tech industry, there are natural power laws and network effects that lead to concentration of power. Instead, he suggests finding other ways to deal with the increasing scale of inequality that comes with these power laws, while still supporting democracy and capitalism.

Takeaways

Steve Jurvetson discusses the current trends in the tech industry, including ICOs and Softbank's Vision Fund. He expresses his fascination with ICOs as a novel financing mechanism and sees potential for innovation and positive outcomes. He also believes that more money in the market is beneficial for startups, despite concerns about fraud. Regarding Softbank's Vision Fund, he acknowledges that it could drive up valuations but also provides more capital for startups. He discusses his investments in companies like Zuke's and Neuralink and his views on the regulation and future of AI. Lastly, he expresses his excitement about the potential of flying cars and the impact they could have on transportation.