At those event, your truly Aleksei Dolgikh unable to speak proper English 😂 but Ibrahim Ajami managed to have Jason Calacanis and Brad Gerstner atHub71 on the event where the founders Lifes in the region was touched!
In the discussion, the speakers involved are:
- Ibrahim Ajami – The moderator of the discussion. He is the head of Ventures at Mubadala, a significant global investor and innovator. Ibrahim guides the conversation, drawing insights from the other participants on the state of the technology industry, financial resets, and the role of founders in this evolving landscape.
- Jason Calacanis – A prominent entrepreneur, angel investor, and host of the “This Week in Startups” podcast. Jason is known for his sharp insights into the startup ecosystem and the importance of execution over ideas. During the discussion, Jason emphasizes the role of founders in maintaining relentless focus, especially during challenging times, and the impact of AI on productivity and future job roles.
- Brad Gerstner – Founder and CEO of Altimeter Capital, a technology-focused investment firm. Brad brings a deep understanding of the tech industry’s financial and innovation cycles. He discusses the concept of financial resets versus tech resets, highlighting the importance of resilience and innovation during downturns. Brad also shares insights about his conversations with Mark Zuckerberg, where he provided critical advice on Meta’s focus, particularly around AI and the Metaverse.
- Mark Zuckerberg (mentioned) – Co-founder and CEO of Meta (formerly Facebook). Though not present in the discussion, Mark’s leadership and decisions at Meta are a focal point. Brad Gerstner references a letter he wrote to Zuckerberg, advising him to focus on AI and reconsider the heavy investment in the Metaverse, which he believes played a role in the company’s recent strategic shifts.
This dynamic discussion, moderated by Ibrahim Ajami, explores the challenges and opportunities in the tech industry, with valuable perspectives from both Jason Calacanis and Brad Gerstner on the role of founders, the impact of financial resets, and the future shaped by AI.
The Great Reset: Navigating Tech’s Financial Cycles
Introduction: The State of the Tech Industry
Ibrahim Ajami, the head of Ventures at Mubadala, opened the discussion with a question that has been on the minds of many founders and investors: “How do we navigate the current state of the technology industry, which is clearly going through a recalibration—a reset, if you will?” He set the stage for an insightful conversation, acknowledging that while the tech landscape is still bursting with innovation, it’s also facing a significant financial correction.
Brad Gerstner: The Difference Between Tech and Financial Resets
Brad Gerstner, founder and CEO of Altimeter Capital, took the lead in addressing the question. He began by drawing a clear distinction between financial resets and tech resets. “Each of the major downturns we’ve seen—whether it was in 2001 with the dot-com bubble or in 2008 with the global financial crisis—these were not technology resets. They were financial resets,” Brad emphasized.
He explained that during these periods, the underlying technology was still advancing rapidly. “Anyone in Silicon Valley in 2001 knew the internet was going to change everything. Similarly, in 2008, everyone knew that the iPhone and cloud computing were about to revolutionize industries. The secular curve of innovation remained steep, but the financial markets were struggling to keep up.”
Scarcity Breeds Innovation: Why Financial Resets Excite Founders
Brad went on to describe why he actually gets excited during these financial resets. “What these resets do is make our job as investors and founders easier. During periods of excess liquidity and free money, two bad things happen: we fund too many companies, and we compete away the natural profits of the industry.” He cited the ride-sharing industry as an example, where capital inflows led to intense competition, destroying the economics of the industry for a decade.
However, Brad sees the current period of financial scarcity as a healthy correction. “This scarcity is beneficial not just for venture capitalists but also for founders. The founders who are truly committed, who are willing to grind it out, like Travis Kalanick or Elon Musk, are the ones who survive and thrive. They’re in it to win it, and they’re the ones who will build things that truly matter.”
Jason Calacanis: The Importance of Focus and Execution
Jason Calacanis, a seasoned entrepreneur and angel investor, echoed Brad’s sentiments but added his own twist. “What we do as founders is build products that delight customers and solve problems for them. During peaks, people get distracted—they raise too much money and start doing too many projects. They forget the basics: team, product, and customers.”
Jason emphasized the importance of relentless focus, especially in tough times. “When you’re scared, when you can’t sleep because you have only 10 weeks of runway left, that’s when you need to double down on talking to your customers and refining your product. It’s about execution, not just ideas.”
He shared a story about how he and his team at his venture firm evaluate founders. “We meet with founders, and then maybe four or five weeks later, we check in to see if they’ve updated their product. We don’t tell them we’re doing this, but we look at the app store, we check the product’s velocity. Those who are obsessed with their product, who move quickly and efficiently, are the ones who stand out.”
The Zuckerberg Letter: A Turning Point for Meta
The conversation then shifted towards Mark Zuckerberg and Meta, with Ibrahim asking Brad about the letter he wrote to Zuckerberg during a crucial time for the company. “You wrote to Mark when many thought Meta was finished,” Ibrahim said. “What drove you to believe that the company could still be special?”
Brad recounted how he had been discussing the “downside of zero rates and free money” with friends and colleagues for two years. “Meta had doubled its workforce from 40,000 to 80,000 in just two years. Google had done the same, going from 100,000 to 190,000 employees. Yet, productivity had slowed, and it wasn’t fun to work there anymore.”
He explained how Meta’s ten-year project to invest billions in the Metaverse seemed misaligned with the company’s immediate opportunities in AI. “AI was the biggest gold mine staring them in the face, yet they were planning to spend more money than the U.S. government did on the Apollo project to pursue something that even Mark didn’t fully understand.”
Brad’s letter to Zuckerberg wasn’t about stock price; it was about working on the most important things in the world with the smartest people. “Mark is infinitely curious and mentally flexible. When I presented him with an alternative vision focused on AI, he listened. And I’d like to think that we made a small impact in steering the company towards this new focus.”
Jason Calacanis: The AI Revolution and the Future of Jobs
As the discussion moved towards the future, Jason brought up the impact of AI on productivity and jobs. “We’re seeing something incredible in Silicon Valley right now. Smaller teams are getting more done because of AI tools like ChatGPT. It’s not just about replacing jobs; it’s about creating new opportunities and solving more complex problems.”
Jason predicted that in the next five years, we would see companies with just three people generating tens of millions in revenue, thanks to AI. “
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