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"""You see it in manufacturing. Contrary to conventional wisdom, American manufacturing output is higher than ever, but why has so much manufacturing been offsh
by kriro 7y ago
"""You see it in manufacturing. Contrary to conventional wisdom, American manufacturing output is higher than ever, but why has so much manufacturing been offshored to places with cheaper manual labor?"""
"""Is the problem money? That seems hard to believe when we have the money to wage endless wars in the Middle East and repeatedly bail out incumbent banks, airlines, and carmakers."""
This is interesting. They are investors, why is he asking the government to provide the capital for this. Shouldn't they be all over these great unexplored opportunities? How many companies that build actual physical stuff have they backed compared to yet-another-SaaS plays? I'm really curious how a pitch of "we want to build/manufacture stuff in the USA" would have went pre-Pandemic at a16z. Even trying to pitch hardware instead of software seems hard enough as is.
"""The problem is regulatory capture. We need to want new companies to build these things, even if incumbents don’t like it, even if only to force the incumbents to build these things. And the problem is will. We need to build these things."""
This is also interesting. Isn't one of the first things they want "moat, moat, moat"? Sure it's nice to ask for easier entry into markets when you try to fund the disruptor. But once said disruptor is funded they also want as much protection as possible.
"""Instead of attacking my ideas of what to build, conceive your own! What do you think we should build?"""
As a start, I would humbly suggest to rethink the model of "relocating all companies to where the capital is located" and move towards "move companies to the places where they should build most of their stuff". It's pretty mindblowing to me why software companies should be located in SV even when their customers are located elsewhere.
I would also argue that building stuff should be done in a more humble way than the typical VC-ambition. Build, test, show profit, grow organically. I think that could be more healthy than pump up 20 builders and hope one goes hyperbolic.
As an aside, the cynic in me thinks that Theranos would probably go through the roof right now if it was still around and waste a lot more capital than it did. It's easy to call for action, any action in times of crisis without being careful and level headed enough.