All-In E78: VC fund metrics that matter, private market update, recession, student loans, Bill Hwang arrest

Key Topics Discussed:

VC Fund Metrics

• Chamath discussed the importance of standardized reporting for VC funds, highlighting key metrics like:
  • Gross and Net IRR
  • Total Value to Paid In Capital (TVPI)
  • Distributions to Paid In Capital (DPI)
• Revealed how some funds use lines of credit to artificially inflate IRR numbers
• Discussed how returning 2x capital took 11 years, emphasizing how difficult generating real returns is

Economic Indicators & Recession

• US GDP fell 1.4% in Q1 2022, following 6.9% growth in Q4 2021
• Discussion of supply chain issues continuing to impact growth
• Consumer savings rate fell to 6.2% in March, lowest since 2013
• Group expressed concern about Fed's ability to manage inflation while avoiding recession

Student Loan Forgiveness Debate

• Discussed how federal loan programs created inflationary bubbles in education costs
• Analyzed demographics of student loan holders and political implications
• Group agreed system needs reform before any loan forgiveness

Bill Hwang Arrest & Archegos Collapse

• Discussed mechanics of total return swaps used by Archegos
• Detailed how $1.6B in capital was leveraged to $160B exposure
• Analyzed how lack of oversight and clearinghouse requirements enabled the scheme

Content Moderation & Free Speech

• Extended discussion of proposed DHS Disinformation Governance Board
• Sacks proposed using First Amendment case law as framework for content moderation
• Debated approaches to handling health/medical claims on social platforms

Notable Quotes:

Chamath on fund performance: "In these next few years you're going to see who's really, really good. It's kind of that old Warren Buffet quote - you can see who's naked when the tide goes out."