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All-In PodcastAll-In Podcast

E92: Adam Neumann's second act, a16z's $350M bet, housing policy, Inflation Reduction Act & more

0:00 Bestie intro plus a new moderator! 7:19 Adam Neumann raises $350M from a16z for his new residential real estate startup Flow 25:32 Housing policy: Bay Area, Houston, Miami differences 45:41 China, Saudi Arabia, Russia increase relations: should the US be worried? 1:01:09 Inflation Reduction Act signed into law: climate change impact, CBO scorecard, IRS beefed up, carbon tax, big pharma pricing, and more 1:29:47 Chamath ends his spat with Phil Hellmuth, FBI raid follow-up 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.nytimes.com/2022/08/15/business/dealbook/adam-neumann-flow-new-company-wework-real-estate.html https://www.google.com/finance/quote/PLD:NYSE https://www.google.com/finance/quote/WE:NYSE https://www.google.com/finance/quote/BX:NYSE https://a16z.com/2020/04/18/its-time-to-build https://www.bloomberg.com/news/articles/2022-08-05/vc-marc-andreessen-opposes-plan-for-multi-family-atherton-housing https://www.politico.com/news/2022/08/16/xi-jinping-saudi-arabia-trip-middle-east-influence-00052023 https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541 https://www.wsj.com/articles/china-to-join-russia-military-exercises-as-u-s-rivals-deepen-ties-11660755790 https://www.reuters.com/markets/europe/saudi-pif-buys-shares-alphabet-zoom-microsoft-us-shopping-spree-2022-08-16 https://www.foreignaffairs.com/ukraine/playing-fire-ukraine https://www.cbo.gov/system/files/2022-08/hr5376_IR_Act_8-3-22.pdf https://www.weforum.org/agenda/2022/02/what-a-carbon-tax-can-do-and-why-it-cannot-do-it-all https://www.realclearinvestigations.com/articles/2022/08/18/fbi_unit_leading_mar-a-lago_probe_previously_led_russiagate_hoax_848582.html #allin #tech #news

David FriedberghostJason CalacanishostChamath PalihapitiyahostGuestguest
Aug 19, 20221h 39mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Tech titans debate Neumann’s comeback, housing wars, and climate policy

  1. The episode opens with Dave Friedberg moderating and the All‑In crew publicly processing recent on‑air conflict, reaffirming their friendship while admitting the podcast has evolved into a demanding ‘job.’
  2. They then dive into Adam Neumann’s $350M Flow funding from a16z, dissecting repeat founders, REIT economics, and Andreessen Horowitz’s strategy as an institutional tech asset manager.
  3. The conversation shifts to housing policy and NIMBYism in California, using Marc Andreessen’s Atherton zoning letter as a springboard to debate zoning, school funding, and why California’s housing market is so broken.
  4. In the back half, they cover the emerging China–Russia–Saudi alignment, the Inflation Reduction Act’s real impact on energy and climate tech, tax and IRS changes, drug‑pricing reforms, and briefly revisit the FBI’s Mar‑a‑Lago search and Trump’s future.

IDEAS WORTH REMEMBERING

5 ideas

Repeat founders can be backable even after spectacular failures if they have proven audacity and category‑defining track records.

Despite WeWork’s implosion, Neumann created a globally recognized brand and is putting significant personal capital at risk in Flow, which VCs may view as outweighing past governance issues.

Flow is more REIT than tech, so its upside is likely capped by real‑estate fundamentals, not software‑style multiples.

The hosts argue that multifamily housing is valued on funds‑from‑operations and cap rates; a national ‘apartment brand’ might deliver higher rents and lower vacancy, but still fits within REIT economics.

Andreessen Horowitz’s giant check into Flow reflects its institutional strategy and capital‑deployment constraints, not just conviction in Neumann.

With tens of billions under management, writing one $350M check serves their goal of becoming an all‑tech asset platform, simplifies deployment, and burnishes their brand as a firm that backs controversial ‘bad‑boy’ founders.

California’s housing crisis is systemically driven by permitting friction, tax structures, and school‑funding gerrymanders, not just one wealthy suburb.

Using Atherton as a media villain misses the bigger issue: Byzantine approvals, tenant rules, and ZIP‑code‑based school finance create powerful incentives for affluent communities to block density almost everywhere.

Geopolitically, energy‑rich nations are rationally monetizing hydrocarbons now while diversifying into global financial assets, not forming a simple ‘axis of evil.’

Chamath frames Saudi, Russia, and others as acting like portfolio managers—maximizing resource rents and redeploying into tech stocks and sovereign wealth funds—while Sachs warns U.S. policy has unnecessarily pushed allies toward China.

WORDS WORTH SAVING

5 quotes

Credible audacity trumps prior blunders.

Jason Calacanis, on why Neumann can still raise massive capital

Doing anything in the physical world with atoms is ten times harder than doing anything with bits.

David Sacks, explaining why his firm avoids asset‑heavy models like Flow

I don’t think they’re necessarily out to generate massive returns for LPs; they want to become a credible, reliable institution to absorb hundreds of billions of dollars.

Chamath Palihapitiya, on Andreessen Horowitz’s long‑term business model

We’ve so broken the free market for housing that we then come along and say, ‘See, the free market’s not working. We need more government mandates.’

David Sacks, on California’s housing policy failures

What this bill did was kill the idea of a carbon tax.

Chamath Palihapitiya, on the Inflation Reduction Act’s impact on climate policy design

Interpersonal dynamics of the All‑In hosts and the evolution of the podcast into a ‘job’Adam Neumann’s new venture Flow, WeWork’s legacy, and a16z’s $350M betVenture capital business models and Andreessen Horowitz’s strategy to become a ‘Blackstone of tech’California housing policy, NIMBYism, zoning battles, and school‑funding incentivesGlobal geopolitics: China–Russia–Saudi ties, petro‑strategy, and U.S. energy independenceThe Inflation Reduction Act: climate subsidies, carbon tax vs. industrial policy, and permitting reformTax and regulatory changes: 15% corporate minimum tax, 87,000 IRS agents, and drug‑price negotiation

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