All-In E62: Elizabeth Holmes verdict, fraud origins & takeaways, navigating "The Great Markdown" & more
Episode 62 • 1/8/2022
Elizabeth Holmes Verdict Discussion
- Holmes found guilty on 4 counts of fraud, facing up to 20 years per count
- Verdict focused on investor fraud rather than patient-related counts
- Key fraudulent actions included:
- Falsely claiming Pfizer validation
- Misrepresenting military usage
- Misleading about Walgreens/Safeway partnerships
- The group noted this wasn't truly a "Silicon Valley story" as no major Valley VCs invested
Market Correction & "The Great Markdown"
- Major pullback in tech stocks and SaaS valuations
- Chamath discusses Fed policy mistakes - criticized their inconsistent messaging causing market uncertainty
- Public SaaS multiples have dropped from ~15x to ~10x revenue
- Private market valuations expected to follow but haven't fully adjusted yet
- 900 unicorns face challenging environment for exits
Advice for Founders
Friedberg outlined five key steps for value creation:
- Make a product
- Find customers who want it
- Achieve positive gross margins
- Ensure LTV exceeds CAC
- Scale efficiently
Additional advice:
- Focus on being "default alive" (revenue covering costs)
- Watch burn multiple (ideally 1-2x new ARR)
- Be frugal with spending
- Consider raising money now if needed
- Don't raise at unsustainable valuations
VC Industry Evolution
- Discussion of Andreessen Horowitz raising $9B
- Speculation about major VC firms potentially going public
- Trend toward concentration of capital among few mega-funds
- Debate about changing economics of partnership for next generation of VCs
The episode concluded with brief discussion about planning their upcoming All-In Summit conference.