Feb 22, 2016 · 23m · 20vc

20VC: Tim Draper on Investing In Tesla, The Best Pitch He Has Ever Seen & The Evolution of Venture and Startups

Tim Draper · 17m spoken Harry Stebbings · 4m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, legendary venture capitalist Tim Draper joins host Harry Stebbings to share insights from his storied career investing in tech giants like Skype, Baidu, and Tesla. Draper discusses the evolution of venture capital, essential traits of top founders, his invention of viral marketing, and the disruptive potential of Bitcoin and entrepreneurial education.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 21.9% of the talking time here. How this is scored →

Harry as informed peer 2.4 Guest teaching 2.0 Guest disagreement 0.4 Harry pushing back 0.6
05100:0010:0020:001:47–6:04 · Harry as informed peer 2/10 Tim Draper's Origin Story and Journey into Venture Capital Harry asks standard foundational questions about Tim's background and the evolution of Silicon Valley venture capital. Tim shares anecdotes about knocking on Intuit's door and the globalization of VC in a friendly, conversational manner without any friction.6:04–9:48 · Harry as informed peer 2/10 Investment Stage Focus and Modern Startup Operations Tim discusses his stage preferences and lists various operational software tools like eShares and Sherpa that startups should utilize early on. Harry follows up with an agreeable query about Elon Musk's presence.9:48–14:31 · Harry as informed peer 3/10 Draper University of Heroes and the Startup U Television Show Tim explains the ethos and survival-focused curriculum behind Draper University and its TV show spinoff. Harry offers a clean reframe, asking if it is an 'accelerator for humans,' which Tim enthusiastically confirms.14:31–19:35 · Harry as informed peer 3/10 The Potential and Future Adoption of Bitcoin and Blockchain Tim breaks down practical applications for Bitcoin, including media royalties and cross-border remittances. Harry guides the conversation by asking thoughtful questions regarding adoption timelines and tipping points.19:35–23:11 · Harry as informed peer 2/10 Quick Fire Round: Highlights, VCs, Books, and Recent Deals The interview concludes with a rapid-fire session covering career highlights, favorite books, and recent investments. The tone is relaxed and warm, featuring brief playful banter when Tim humorously asks if he can name himself as a VC thought leader.1:47–6:04 · Guest teaching 2/10 Tim Draper's Origin Story and Journey into Venture Capital Harry asks standard foundational questions about Tim's background and the evolution of Silicon Valley venture capital. Tim shares anecdotes about knocking on Intuit's door and the globalization of VC in a friendly, conversational manner without any friction.6:04–9:48 · Guest teaching 2/10 Investment Stage Focus and Modern Startup Operations Tim discusses his stage preferences and lists various operational software tools like eShares and Sherpa that startups should utilize early on. Harry follows up with an agreeable query about Elon Musk's presence.9:48–14:31 · Guest teaching 2/10 Draper University of Heroes and the Startup U Television Show Tim explains the ethos and survival-focused curriculum behind Draper University and its TV show spinoff. Harry offers a clean reframe, asking if it is an 'accelerator for humans,' which Tim enthusiastically confirms.14:31–19:35 · Guest teaching 3/10 The Potential and Future Adoption of Bitcoin and Blockchain Tim breaks down practical applications for Bitcoin, including media royalties and cross-border remittances. Harry guides the conversation by asking thoughtful questions regarding adoption timelines and tipping points.19:35–23:11 · Guest teaching 1/10 Quick Fire Round: Highlights, VCs, Books, and Recent Deals The interview concludes with a rapid-fire session covering career highlights, favorite books, and recent investments. The tone is relaxed and warm, featuring brief playful banter when Tim humorously asks if he can name himself as a VC thought leader.1:47–6:04 · Guest disagreement 0/10 Tim Draper's Origin Story and Journey into Venture Capital Harry asks standard foundational questions about Tim's background and the evolution of Silicon Valley venture capital. Tim shares anecdotes about knocking on Intuit's door and the globalization of VC in a friendly, conversational manner without any friction.6:04–9:48 · Guest disagreement 0/10 Investment Stage Focus and Modern Startup Operations Tim discusses his stage preferences and lists various operational software tools like eShares and Sherpa that startups should utilize early on. Harry follows up with an agreeable query about Elon Musk's presence.9:48–14:31 · Guest disagreement 0/10 Draper University of Heroes and the Startup U Television Show Tim explains the ethos and survival-focused curriculum behind Draper University and its TV show spinoff. Harry offers a clean reframe, asking if it is an 'accelerator for humans,' which Tim enthusiastically confirms.14:31–19:35 · Guest disagreement 1/10 The Potential and Future Adoption of Bitcoin and Blockchain Tim breaks down practical applications for Bitcoin, including media royalties and cross-border remittances. Harry guides the conversation by asking thoughtful questions regarding adoption timelines and tipping points.19:35–23:11 · Guest disagreement 1/10 Quick Fire Round: Highlights, VCs, Books, and Recent Deals The interview concludes with a rapid-fire session covering career highlights, favorite books, and recent investments. The tone is relaxed and warm, featuring brief playful banter when Tim humorously asks if he can name himself as a VC thought leader.1:47–6:04 · Harry pushing back 1/10 Tim Draper's Origin Story and Journey into Venture Capital Harry asks standard foundational questions about Tim's background and the evolution of Silicon Valley venture capital. Tim shares anecdotes about knocking on Intuit's door and the globalization of VC in a friendly, conversational manner without any friction.6:04–9:48 · Harry pushing back 1/10 Investment Stage Focus and Modern Startup Operations Tim discusses his stage preferences and lists various operational software tools like eShares and Sherpa that startups should utilize early on. Harry follows up with an agreeable query about Elon Musk's presence.9:48–14:31 · Harry pushing back 0/10 Draper University of Heroes and the Startup U Television Show Tim explains the ethos and survival-focused curriculum behind Draper University and its TV show spinoff. Harry offers a clean reframe, asking if it is an 'accelerator for humans,' which Tim enthusiastically confirms.14:31–19:35 · Harry pushing back 1/10 The Potential and Future Adoption of Bitcoin and Blockchain Tim breaks down practical applications for Bitcoin, including media royalties and cross-border remittances. Harry guides the conversation by asking thoughtful questions regarding adoption timelines and tipping points.19:35–23:11 · Harry pushing back 0/10 Quick Fire Round: Highlights, VCs, Books, and Recent Deals The interview concludes with a rapid-fire session covering career highlights, favorite books, and recent investments. The tone is relaxed and warm, featuring brief playful banter when Tim humorously asks if he can name himself as a VC thought leader.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 70.5% · guest 29.5%0:00 · Harry 70.5% · guest 29.5%3:00 · Harry 11.8% · guest 88.2%3:00 · Harry 11.8% · guest 88.2%6:00 · Harry 13.3% · guest 86.7%6:00 · Harry 13.3% · guest 86.7%9:00 · Harry 12.1% · guest 87.9%9:00 · Harry 12.1% · guest 87.9%12:00 · Harry 24% · guest 76%12:00 · Harry 24% · guest 76%15:00 · Harry 2.3% · guest 97.7%15:00 · Harry 2.3% · guest 97.7%18:00 · Harry 13.6% · guest 86.4%18:00 · Harry 13.6% · guest 86.4%21:00 · Harry 28.9% · guest 71.1%21:00 · Harry 28.9% · guest 71.1%
Sharpest disagreement ▶ 20:16 Playful Pushback on VC Thought Leaders

When asked who he considers a thought leader in venture capital, Tim humorously challenges the question by asking 'You mean, other than me?' before providing peer recommendations.

Hardest push from Harry ▶ 3:00 Questioning the Requirement for Entrepreneurial Experience

Harry gently pushes back on the conventional wisdom that VCs must be former founders, asking whether going straight into venture capital is equally viable.

Biggest teaching moment ▶ 15:15 Educating on Blockchain Micro-Payments

Tim details the hidden administrative costs of movie credit royalty payouts to demonstrate how Bitcoin and blockchain technology solve real-world micro-transaction problems.

Harry holds his own ▶ 11:30 Synthesizing Draper U's Core Premise

Harry demonstrates keen listening and domain comprehension by synthesizing Tim's lengthy explanation of Draper University into the succinct phrase 'an accelerator for humans, not for startups.'

the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Tim Draper's Origin Story and Journey into Venture Capital 2201 Harry asks standard foundational questions about Tim's background and the evolution of Silicon Valley venture capital. Tim shares anecdotes about knocking on Intuit's door and the globalization of VC in a friendly, conversational manner without any friction.
Investment Stage Focus and Modern Startup Operations 2201 Tim discusses his stage preferences and lists various operational software tools like eShares and Sherpa that startups should utilize early on. Harry follows up with an agreeable query about Elon Musk's presence.
Draper University of Heroes and the Startup U Television Show 3200 Tim explains the ethos and survival-focused curriculum behind Draper University and its TV show spinoff. Harry offers a clean reframe, asking if it is an 'accelerator for humans,' which Tim enthusiastically confirms.
The Potential and Future Adoption of Bitcoin and Blockchain 3311 Tim breaks down practical applications for Bitcoin, including media royalties and cross-border remittances. Harry guides the conversation by asking thoughtful questions regarding adoption timelines and tipping points.
Quick Fire Round: Highlights, VCs, Books, and Recent Deals 2110 The interview concludes with a rapid-fire session covering career highlights, favorite books, and recent investments. The tone is relaxed and warm, featuring brief playful banter when Tim humorously asks if he can name himself as a VC thought leader.

Statements from this episode (11)

Insight
Tim Draper: Aspiring VCs do not need prior entrepreneurial experience
“Some people are become very good venture capitalists just coming straight. I think if you want to be an entrepreneur, you should just go be an entrepreneur. If you want to be a venture capitalist, you should just go be a venture capitalist.”
Tim Draper Feb 22, 2016 ▶ 3:22
Prediction Not checkable as stated
Tim Draper: Bitcoin and blockchain will disrupt venture capital like Uber
“All of these things, Bitcoin, the blockchain, there are going to be new technologies applied to venture capital just the way file sharing was applied to the music industry, or Uber was applied to the taxi industry. I think venture capital is going to be change…”
Tim Draper Feb 22, 2016 ▶ 5:45
Disclosure
Tim Draper prefers investing in early two-to-three person teams
“I like investing when there are two or three people in the company and they have a really good mission. And that can be before they've gotten any revenue or just after.”
Tim Draper Feb 22, 2016 ▶ 6:43
Insight
Tim Draper: Enormously successful founders share enthusiastic but quiet confidence
“In all the cases of the greatest entrepreneurs, I think it's been enthusiastic, but quiet confidence that I see in the ones that became enormously successful.”
Tim Draper Feb 22, 2016 ▶ 8:41
Disclosure
Tim Draper: We funded Tesla before Elon Musk took over
“And it was actually true of Martin Eberhard when we funded Tesla before Elon Musk came in and refund, refinanced it and took it over.”
Tim Draper Feb 22, 2016 ▶ 9:16
Opinion
Tim Draper: Elon Musk is very thoughtful, unassuming, and nice
“And he's very thoughtful. Unassuming, and one of the nicest guys out there.”
Tim Draper Feb 22, 2016 ▶ 9:40
Assertion Partly supported
Tim Draper: Bitcoin makes cross-border transfers almost free compared to fiat
“People, people spend 10 to 20% of their money just Moving it across. And if you use Bitcoin, it's almost free.”
Tim Draper Feb 22, 2016 ▶ 16:44
Prediction Not checkable as stated
Tim Draper predicts widespread Bitcoin adoption will occur by 2018
“Yeah, I think the adoption, I thought it would be three years and that was two years ago. It might be another two years because all of these entrepreneurs who have worked very hard to create uses for Bitcoin, those uses are starting to be adopted.”
Tim Draper Feb 22, 2016 ▶ 16:57
Assertion Not checkable as stated
Tim Draper: Bitcoin is more secure than money at Goldman Sachs
“And Bitcoin now is, you know, my Bitcoin is more secure than money at Wells Fargo or Goldman Sachs.”
Tim Draper Feb 22, 2016 ▶ 17:27
Assertion Contradicted
Tim Draper: I created viral marketing by putting messages in Hotmail
“I created the idea to put a message at the bottom of everybody's email at Hotmail.”
Tim Draper Feb 22, 2016 ▶ 19:44
Assertion Contradicted
Tim Draper: Plug and Play founder Saeed Amidi created the first incubator
“Saeed Amidi, who has, who really put the first incubator together.”
Tim Draper Feb 22, 2016 ▶ 20:50
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 1,200 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.