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The Indicator from Planet Money

Revenge of the venture capitalists

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 27 January 2022

⏱️ 10 minutes

🧾️ Download transcript

Summary

Uber's CEO Travis Kalanick grew the company fast, but oversaw scandal after scandal. One venture capitalist wanted Travis out. Today: The epic tug-of-war between venture capital and founders in tech.

Transcript

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0:00.0

NPR.

0:03.7

Bill Gurley was the Michael Jordan of venture capitalists.

0:15.8

And not just because he was six feet and nine inches tall, Bill belonged to a venture

0:20.2

capital firm that considered themselves the Chicago Bulls of investing.

0:24.8

But like the 1990 Bulls, right?

0:26.8

That's right, agent.

0:27.8

Yeah, I'm ending the 1990s Michael Jordan air Chicago Bulls.

0:31.6

And Bill Gurley was an intellectual who loved thinking about the economic potential of

0:35.9

networks, specifically these tech platforms that are more and more useful the more users

0:41.2

they have, things like Facebook and Yelp and that kind of thing.

0:44.4

And that insight helped him and his venture capital firm make a lot of money investing

0:48.8

in tech platforms like Open Table and Glassdoor.

0:52.1

And Bill was an early investor in Uber.

0:54.5

By 2017, his initial investment had just multiplied in value.

0:58.2

The company was worth billions, but Bill had one problem.

1:02.9

Uber CEO Travis Kalanick.

1:05.6

This is the indicator from Plata Money.

1:06.9

I'm Adrian Ma.

1:07.9

And I'm Diane Woods.

1:09.2

Silicon Valley's success has a key ingredient venture capital.

1:13.8

These investors who are willing to risk a lot of money for a potential huge profit.

1:18.7

But over the last few decades, venture capitalists have had to invest more and more money

...

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