Episode Summary
Executive Summary: In this special 2020 Twisties episode of This Week in Startups, host Jason Calacanis humorously reviews the year's most memorable moments, including the infamous Trevor Milton interview, the best guest Sarah Cannon, and the funniest moment reacting to Apple's iPhone 12. He also highlights key themes like SPAC risks, accredited investor reform, and his signature 'wet your beak' investing style, while celebrating recurring guest Keith Rabois and teasing ongoing feuds with Andreessen Horowitz.
Main Topics: WTF Moment of the Year: Trevor Milton and Nikola (Priority: 5/5): Jason analyzes his interview with Nikola founder Trevor Milton, where Milton admitted to creating a consumer truck to attract retail investors, leading to Jason's prediction of the company's collapse and subsequent SEC scrutiny. Guest of the Year: Sarah Cannon (Priority: 4/5): Index Ventures partner Sarah Cannon is celebrated for her engaging discussion on accreditation laws, education reform, and technical schools, with Jason praising her chemistry and insight. Funniest Moment: Apple iPhone 12 Rant (Priority: 3/5): Jason's comedic critique of Apple removing chargers and headphones from the iPhone 12 box, highlighting the environmental spin and continued use of Lightning cables. Wet Your Beak of the Year: Darius Goldman and Meritas (Priority: 4/5): Jason negotiates to become the first investor in Darius Goldman's ISA platform Meritas live on the podcast, showcasing his aggressive deal-making style. Recurring Guest of the Year: Keith Rabois (Priority: 4/5): Keith Rabois appears three times in 2020, discussing homeschooling innovations and Miami's rise as a tech hub, with Jason comparing his move to LeBron James joining the Heat. Feud with Andreessen Horowitz (Priority: 3/5): Jason recounts a dispute over pro rata rights in Superhuman, vowing to never have a16z partners on the show and comparing himself to a basketball point guard. Year in Review and Future Outlook (Priority: 2/5): Jason thanks his team and audience, highlights favorite episodes (Dave Portnoy, Brad Feld, Daniel Gross), and promises to continue the show indefinitely, even via AI avatar.
Key Arguments: Companies with billion-dollar valuations but no product or customers are likely scams or destined to fail, as seen with Nikola and Theranos. Creating products specifically to attract retail investors (e.g., Nikola's Badger truck) constitutes market manipulation and invites SEC lawsuits. Accredited investor laws should be reformed to allow more people, like Uber drivers, to invest in private companies, increasing upward mobility. Apple's removal of chargers and headphones from iPhone boxes is a profit-driven move disguised as environmentalism, especially given their continued use of proprietary Lightning cables. Homeschooling is a superior educational model that fosters innovation, and the pandemic has accelerated its adoption. Podcast hosts can leverage their platform to secure early-stage investments, as demonstrated by Jason's 'wet your beak' approach with Meritas. Andreessen Horowitz's aggressive tactics in pro rata disputes damage relationships and warrant public criticism. Technical schools and lifelong learning are essential for workforce adaptability, drawing lessons from Germany and South Africa.
Data Points: Nikola valuation: $34 billion - Nikola's valuation in June 2020 before Trevor Milton stepped down. Apple's lightning headphones: 700 million - Number of lightning headphones Apple claims exist globally. Apple power adapters: 2 billion - Number of Apple power adapters in circulation. Homeschooling population: 4 million - Number of homeschooled students in the US before the pandemic. Episode length with Rory Sutherland: 2 hours 20 minutes - Length of Jason's interview with the Alchemy founder. Episode length with Pomp: 2 hours 16 minutes - Length of Jason's interview with Anthony Pompliano. Recurring guest appearances: 3 - Number of times Keith Rabois appeared on the show in 2020.
Pivotal Quotes: "Our trucks are a gravy train with money. That's where all the money comes from is our big semi-trucks, right? The problem is, 90% of Americans will never own a semi-truck. And so, your investment, your portfolio of investors can be very limited. And we wanted to go and build a company that's going to be worth $500 billion, trillion dollars over, say, 10 or 15 years." — Trevor Milton: Explaining why Nikola created a consumer pickup truck to attract retail investors. "I wonder what the SEC is going to think about somebody creating a product to incent retail investors to buy the stock, but not to make money." — Jason Calacanis: Reacting to Trevor Milton's admission about the Badger truck's purpose. "You can have my pro rata when you pry it from my cold, dead hands." — Jason Calacanis: Describing his response to Andreessen Horowitz's attempt to take his pro rata in Superhuman.
Implications: Listeners should be wary of high-valuation pre-revenue companies and understand the risks of SPACs. The podcast highlights the power of media in exposing fraud and the importance of investor education. Jason's 'wet your beak' strategy underscores the value of early-stage investing and networking.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.