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All-In PodcastAll-In Podcast

E75: Fast shuts down, board culpability, Elon buys 9% of Twitter, deplatforming's evolution & more

0:00 Bestie intros, All-In Summit update, and more 8:01 Layoffs and shutdowns: Fast, Better.com, GoPuff; Chamath gives a macro- and micro- overview for startups 14:09 Preventing layoffs, culpability in Fast's shutdown, VC diligence strategy, VC/founder model 41:51 Elon buys a 9% stake in Twitter and joins the board: what does this mean for Twitter, free speech online, evolution of deplatforming 1:03:24 Food shortage update, ideal US objectives going forward Follow the besties: https://twitter.com/chamath https://linktr.ee/calacanis https://twitter.com/DavidSacks https://twitter.com/friedberg Follow the pod: https://twitter.com/theallinpod https://linktr.ee/allinpodcast Intro Music Credit: https://rb.gy/tppkzl https://twitter.com/yung_spielburg Intro Video Credit: https://twitter.com/TheZachEffect Referenced in the show: https://www.theinformation.com/articles/live-fast-die-young-behind-the-fall-of-a-one-click-wonder https://techcrunch.com/2022/04/08/better-com-cto-steps-down-agrees-to-voluntary-separation-in-wake-of-mass-layoffs https://techcrunch.com/2022/04/06/better-com-offering-employees-60-days-severance-losing-tens-of-millions-per-month-per-sources https://www.theinformation.com/articles/gopuff-plans-hundreds-of-layoffs-to-cut-40-million-in-costs https://articles.sequoiacap.com/rip-good-times https://sacks.substack.com/p/the-saas-board-meeting https://medium.com/craft-ventures/blitzfail-how-not-to-go-off-the-rails-24ccaf92c410 https://www.bloomberg.com/news/articles/2022-04-04/musk-takes-9-2-stake-in-twitter-after-questioning-platform https://twitter.com/paraga/status/1511320953598357505 https://twitter.com/jack/status/1511329369473564677 https://twitter.com/elonmusk/status/1507259709224632344 https://twitter.com/micsolana/status/1511360061670662149 https://twitter.com/micsolana/status/1511674851202945024 https://www.cnn.com/2022/04/06/tech/pinterest-climate-change-misinformation-policy/index.html https://gro-intelligence.com/insights/gro-predicts-us-corn-stocks-will-drop-sharply-in-2022-23 https://www.theamericanconservative.com/articles/the-state-department-failed-to-prevent-the-war-will-it-now-prevent-the-peace #allin #tech #news

Jason CalacanishostChamath PalihapitiyahostDavid Friedberghost
Apr 8, 20221h 17mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Tech reckoning, board failures, and Elon’s free-speech Twitter gambit

  1. The episode opens with the All-In hosts recapping a frothy tech cycle turning sharply downward, using the collapse of Fast and layoffs at Better.com and Gopuff to illustrate how cheap capital, poor governance, and founder psychology led to reckless burn and blitzscaling gone wrong.
  2. They dig into the responsibilities and failures of boards and VCs, contrasting serious governance and diligence with the “co-founder, hands‑off” culture that enabled WeWork-style blowups and the Fast implosion.
  3. The conversation then shifts to Elon Musk’s 9% stake and board seat at Twitter, which the hosts frame primarily as a high-stakes intervention in the direction of free speech, censorship, and deplatforming on major platforms.
  4. They close by discussing the broader macro environment—Fed tightening, Ukraine’s war impacts (especially food and fertilizer), and long-term U.S. strategic priorities around energy independence, semiconductors, and containing China.

IDEAS WORTH REMEMBERING

5 ideas

Founders must immediately reassess burn multiples and runway assumptions.

With the Fed moving to aggressive rate hikes and quantitative tightening, the hosts argue startups should assume 18+ months where capital is available only on investor-friendly terms; cutting burn early can save companies that would otherwise hit the wall like Fast.

Basic financial governance could have prevented Fast’s catastrophic shutdown.

Chamath and Sacks note that a simple board slide tracking cash, burn, and runway would have made a $10M monthly burn on ~$50K–$100K revenue impossible to ignore, and could have forced a course correction months earlier while ~$30–40M was still in the bank.

Board quality and VC incentives heavily shape startup outcomes.

The episode contrasts hands-on, high-gravitas investors (e.g., Sequoia, Kleiner, John Doerr) who provide real governance and tough advice with AUM‑driven VCs who overextend, sit on too many boards, and default to founder-pandering, leaving companies unguided in crises.

Founder coachability and intellectual curiosity are critical at scale.

Friedberg emphasizes that the most enduring founders (Collisons, Google founders with Eric Schmidt) are both visionary and deeply curious, seeking and incorporating advice; charismatic but uncoachable founders tend to blitzscale into “blitzfail” when conditions change.

Elon’s move on Twitter is framed as a free-speech intervention, not just product.

Sacks and Chamath see Musk’s board seat as a unique chance to re-anchor Twitter around free speech, countering what they view as a drift toward cartel-like censorship and “woke mob” pressure that escalated from fringe cases to banning entire categories of opinion.

WORDS WORTH SAVING

5 quotes

They hit the wall at 100 miles an hour.

David Sacks (on Fast’s collapse and failure to cut burn in time)

If he is able to make free speech cool again, he’ll actually do more doing that than potentially through SpaceX and Tesla.

Chamath Palihapitiya (on Elon Musk’s impact via Twitter)

This whole woke mob thing is a paper tiger. They don’t have the support of most of the population; it’s a handful of very noisy voices on Twitter.

David Sacks (on perceived overreach of online activist pressure)

Scarcity breeds success. When there wasn’t a lot of venture money, the best opportunity wins and gets picked. In a world where everyone was raising a billion‑dollar second fund, a lot of these businesses maybe shouldn’t have existed in the first place.

David Friedberg (on how capital abundance warped VC selection)

I was a person that was a little disingenuous in the sense that I was for free speech as long as it was stuff that I agreed with. Two years later, I’m much more on David’s original camp now.

Chamath Palihapitiya (on his own shift toward stronger free-speech absolutism)

Collapse of Fast and startup burn discipline amid tightening capital marketsBoard governance, VC incentives, and due diligence failures in Silicon ValleyBlitzscaling vs. “blitzfail” and founder psychology during market turnsElon Musk’s Twitter investment, free speech, and evolving deplatforming normsUkraine war’s second-order effects on food, fertilizer, and global famine riskU.S. grand strategy: energy independence, China containment, and tech resilienceCultural shifts inside tech companies: woke pressure, employee activism, and CEO pushback

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