Tag: Finance

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Medical Politics

Day 1411 and Fever Dreams

I’m not quite sure how I got a bug but I seem to be running a fever. It’s possible it’s passing and I’m on the mend but I still feel a little “delulu” as the kids says.

I was taking a constitutional walk Saturday after eating and my heart rate spiked to 180bpm. I wasn’t exerting myself in a way that would normally bring it above 90.

I have a habit of walking after meals as I feel it aids digesting. Nothing intense as it’s more of a habit than exercise. So I was surprised to find myself getting faint. I found myself on the ground.

I don’t take it particularly seriously. I blamed PMS and the stress of the last two weeks. But then I got a terrible night of sleep and my Whoop score matched how I felt.

I spent Sunday faffing about on the internet as watching reality television. I was definitely sick. What else was there to do but shitpoast and watch the price of Bitcoin go up.

Now that felt like a fever dream. If you are a crypto true believer you have experienced more than a few boom and bust cycles. Holding on tight is part of the game.

I suspect that we are in for more of a ride and I was not one to get too ahead in other bull runs. But I did let myself buy a bunch of cosmetics so I’d look for a recovery in LVMH stock if there are enough women who hold Bitcoin.

Categories
Politics

Day 1406 and Relief

I am so relieved to have the American presidential election wrapped up within just one day. I didn’t think we’d be so lucky to have things decided so quickly.

I was emotionally prepared for a long interregnum with bitter fighting over a slim margin of votes. I remember both 2000 and 2020 and neither hanging chads nor storming chads were pleasant experiences.

I did my normal natural disaster preparation routine of stocking groceries, doing laundry, and washing up. In preparedness communities, we always recommend facing a storm with clean clothes.

But it seemed pretty clear where we were headed last night around 11pm on the west coast when I went to bed. I woke up to the election having been called. Blessedly the margin was so clear a concession speech was soon in order.

I’m not much of a partisan as libertarians are America’s classic independents. I’ve voted for Democrats and I registered as a Republican in Colorado before settling on simply calling myself an independent here in Montana. I spend time on each race, candidate and ballot initiative. I ticket split. I believe in free people and free markets.

I was asked if this election outcome was good or bad for business. I responded that “decided” is good for business. Private industry can manage if it knows the rules of the road.

Now we know where things stand. If you follow financial news you saw the jubilance in the markets. Maybe the interregnum was actually the the campaign season. Either way we’ve got more direction on where we are headed and that means we can act with more confidence.

Categories
Politics

Day 1390 and Rage Against The Machine

As we are getting down to the finish line of the American election season I don’t know how we will do it. It’s all exhausting even though it’s filled with comedy.

I fear another interregnum as the transition from Trump to Biden was an anxious time. I doubt this will be better given the polling is a dead heat and no one knows what to believe.

I’m old enough to remember the Brook’s Brothers riots and hanging chads of 2000. I had just started my own chronicles here on January 6th such that I didn’t even name it as Day 6th. It’s been a long four years.

Being caught up in the concerns of great powers is a little silly when you are just a bystander. I work on my local issues here in Montana and I vouch for issues where I feel I have particular expertise like compute.

What I thought I knew in 2000 and what I think I know now in 2024 feels like a chasm. I enjoyed Rage Against the Machine as a teen and now I find that Caesar Chavez granddaughter is running an establishment political campaign. I don’t know what to make of anything. Maybe the only through line has been my skepticism of central banks.

Categories
Finance Startups

Day 1376 and Q3 2024 Investor Update & Market Analysis for Chaotic Capital

Welcome to the Q3 2024 update for chaotic.capital LPs. I’m choosing to post a selection of our reporting publicly so prospective founders and LPs can see our thinking.

You may be invested in chaotic.capital because we invest in ideas that adapt humanity to our new chaotic era.

Enabling resilience in the face of unexpected & rapid change is our lodestar. It’s a simple heuristic that yields a complex thesis: that technology is a tool for increasing leverage. 

In addition to these investor letters, you can always visit jfredrickson.com, where I write every single day about whatever I’m thinking about. You are also welcome to DM me on Twitter @AlmostMedia or text me on Signal any time.

Q3 was another strong quarter for chaotic.capital. Our ability to identify and back founders early remains core to our success and we’re seeing it both with the inbound flow from founders (as seen in the two new deals we did this quarter) as well as the progress from our existing portfolio, with four new markups this quarter and substantial business progress on those and others.

The markets are increasingly focused on power and compute. What was once a contrarian focus on energy, infrastructure, crypto, and artificial intelligence has now become a core narrative among informed investors.

We believe the future of compute—particularly in relation to crypto and AI—will increasingly be viewed as a basic right, not a privilege, as these technologies scale to mass adoption. 

As governments grow more cautious about debt and monetary risk, individuals and organizations will turn to trustless systems to ensure secure transactions and autonomy.

This is why we focus our investments in the space on foundational layers that will power the next generation of applications.

With portfolio companies like Squads providing on-chain economy tooling, Kuzco reducing reliance on intermediaries while creating an open market, SFCompute pricing compute and creating spot markets, and Chroma becoming the go-to choice for open source vector databases, we see the intersection of crypto and AI creating secure, scalable systems for individuals and organizations alike.

Access to compute is quickly becoming synonymous with freedom of speech and, ultimately, the freedom to transact. 

These open trustless systems enable efficient transactions and verification, a crucial development as geopolitical multipolarity continues to rise, and more people need to ensure their interactions are secure without reliance on the state.

While Americans might not yet fully appreciate this, we’re seeing growing demand for these alternative systems and open models from those who are navigating increasing regulatory pressures and instability.

Europeans, whose governments are deploying strict limits on AI models are beginning to understand, those from countries facing geopolitical uncertainty (e.g., Israel, Ukraine), live it already, and those in countries with unreliable currencies and legal systems have been navigating anarcho-tyranny for decades.

But it can be precarious in the US as well, in California it was only the intervention of a veto from Gavin Newsom that prevented SB-1047 from restricting compute and hobbling the development of open source models.

Looking forward, this ability to access compute at scale may well parallel the right to transact. As nations confront their own risks, network state behaviors will become more prevalent, driven by the need for secure, decentralized systems that ensure autonomy in an increasingly unpredictable world.

We’re excited about the future of chaotic.capital and the opportunities ahead. As always, I’d love to talk about any of this with your discussions with you, so feel free to reach out. We’re just getting started, and there’s much more to come.

Categories
Internet Culture Politics

Day 1369 and California SB-1047 Vetoed

Last night I received a push alert and then a flurry of excited text messages and phone calls. California Governor Gavin Newsom vetoed the controversial SB-1047 artificial intelligence bill.

Gavin Newsom vetoes California’s contentious AI “safety” bill SB-1047

Twitter lit up with joyful streams of relief and praise for this decision. Everyone from politicians, economists, researchers, academic luminaries, open source collectives, founders and venture capitalists.

It was a bad bill that lacked the necessary clarity and focus to even begin the task of regulating the nascent field of artificial intelligence.

We can and will do better in finding regulatory frameworks for safety and competitiveness but this bill wasn’t it. It was especially concerning as they say so goes California so goes the world.

I have been banging on about the #FreedomToCompute and math’s crucial role in our constitutional right to free speech in America. This must be considered in all future attempts at regulation in America.

Math and computing power are as essential as speech. In today’s world, they ARE speech. We may speak in natural language, but the way we extend ourselves, build things, and grow as a species is through our tools. Computation is a tool.

These tools are extensions of the human mind. Consider that the first computers were just regular humans counting. We may have started with our fingers and toes as our first tools. And it wasn’t quick progress as the evolution from the abacus to modern computing took us nearly 4,000 years.

We’ve made an astonishing amount of progress in the last hundred years. We’ve gone from thousands of computations per second in the 1940s to 200 quadrillion calculations per second with modern super computers.

Consumer devices are better too. The computer I’m using to write this post has more power than the computers we used to send man to the moon. It’s 100,000 times faster with seven million times more memory.

Alas, as tools get more powerful the powerful get nervous. This isn’t the first bad artificial intelligence bill we’ve seen. We have Europe to thank for that. And it likely won’t be the last.

But defeating SB-1047 is a rare moment of bipartisan cooperation not only in California but across the world as the entire compute space came together to make its voice heard. And Gavin Newsom listened.

We should celebrate this rare consensus as we look towards better policy in our future.

Categories
Aesthetics Politics Preparedness

Day 1362 and Hilux Drip

The right to repair movement is a worthy effort fighting the banal evil of planned obsolescence.

If you aren’t familiar with the term, it’s an economic and industrial design strategy to deliberately make products with shorter functional lives to “shorten the replacement cycle” aka make you buy a new one.

If you are a user of Apple products (as I am) then you are probably familiar with its reputation for degrading service. They are paying out to the tune of 500m for the practice.

But right to repair issues and planned obsolescence doesn’t just happen in electronics. It’s a problem in auto repair and home appliances too. Repairing a broken part can be more expensive than buying a new item.

And it’s getting worse. Computer chips are now in everything from your refrigerators and dishwasher to your car. Consumers reasonably loathe the increased complexity and challenges of repairing major purchases when everything is “smart.”

At this point I’m willing to pay more money for appliances with zero smart features and physical controls for everything. @ Kelsey Hightower

And I fear most of our regulatory climate is dedicated to making this problem worse. When Japanese automakers first come to the United States their vehicles had longer lifespans so American carmakers were forced to respond by building more durable products. That was a positive thing.

But geopolitical tensions being what they are the, U.S. Commerce Department proposed a national security ban on certain Chinese and Russian-made car parts from U.S. roads The motive is to protect American consumers from digital surveillance and hijacking. But who knows what gets caught up in the effort as we could be allowing in parts that make it easier to repair our own cars.

If we learned anything from Japanese cars it’s that allowing competition was an unalloyed good. There are cars I wish we had in America like the iconic Toyota Hilux. Here is a synopsis from Perplexity on why the Toyota Hilux is considered to be so durable. It’s got a robust chassis, a simple design that is easy to repair, minimal electronics and high quality components.

But you can’t own a Hilux in America. Why? The “Chicken Tax,” a tariff on light trucks, was imposed by the United States in retaliation for tariffs placed by other countries on American chickens.

But maybe it’s good we Americans can’t have a light truck that is easy to repair and designed to last. The internet has a long lore of memes dedicated to the car’s use in revolutions. You certainly wouldn’t want Americans getting any ideas about that.

A viral parody meme about why the Hilux is the choice for insurgents

Categories
Aesthetics Culture

Day 1345 and Class Consciousness

I have written about classism, class anxiety, and class status as part of my interest in how we form group identities. Searching just for the world “class” turns up 504 mentions on this blog.

That seems like a lot but I’d argue that no other identity marker (even race & gender) determines quite so much about your life and trajectory as your class. Yes, even in America. Perhaps especially so in America. If you aren’t read up on the topic I recommend Paul Fussel’s Class: A Guide Through America’s Status System.

Yesterday I happened to be sitting next to a trio of twenty somethings during transit. After glancing at their outfits and listening to their animated discussions, it seemed clear they were either upper class or professional management class. Being both curious and nosy (and having no way out of listening in) I rudely but playfully asked:

Ok I’ve got to ask, are you business school classmates or cosplaying as extras from Industry?

This intrusive question seemed to amuse them and we fell into a long conversation. It turns out they had in fact become friends while getting their MBA from a top European business school. I didn’t inquire into their private family lives obviously but I’d guess that means I was right about both class buckets.

We had a chat about hoe business school was the best decision they could have ever made for their social lives in particular. The class work was fine but it was the friendships that made it worthwhile. Business schools provide an entirely different sort of class experience if catch my drift.

I found it quite pleasant to be in a random IRL social situation where discussion ranged from Biden’s opposition to the US Steel acquisition to the implications of Paul Graham’s Founder Mode essay for the professional management class. Usually that requires Twitter or a Bloomberg podcast (they were fans of Odd Lots).

Naturally this begs the question as to how much I am aware of my own class consciousness and how much I do or don’t fit into my own class (having made the journey through multiple classes).

Do people prefer to socialize within their own classes? I found it relaxing to discuss some class coded topics without fear of looking like a privileged asshole.

Which isn’t to say I think of myself primarily in class terms. Last weekend I attended a gathering of friends & internet mutuals with significant class diversity including lower, working, middle and full on class-opt outs. It was there I realized I was the only person I knew who ever publicly discusses cross-class relationships. This despite cross-class relationships being a significant factor in upward mobility.

I assume it’s as normal as any other kind of cross-identity relationship but now I’m not so sure. Do you socialize outside your own class? Do you even think about it? And most amusingly, is it déclassé to discuss one’s class?

Categories
Community Politics

1302 and Virtual Insanity

It’s a crazy world we are living in

A number of my friends and colleagues have descended on Nashville this week for the Bitcoin Conference. I didn’t make the trek as southern heat in mid-July isn’t for me.

Despite being remote, it’s been easy keeping up on the event. I connected various friends who all different politics & interests. It’s been a delight to get selfies and “ussies” sent to me as my network connects in person. My virtual network exist IRL.

Meanwhile back in “extremely online” land where I spend my workday it feels as if the virtual insanity is at a fever pitch.

We’ve been recycling the same fears of virtual worlds since I was a kid. When I was in middle school the big hit was Jamiroquai’s Virtual Insanity.

You may remember it as a catchy funk hit where a gentleman in a big black hat dances through an underground city.

Oh, futures made of, now, virtual insanity
Now we all, we seem to be governed by a love
For these useless twisting of our new technology
And now there is no sound, for we all live underground
Yes, we do, oh

Jamiroquai “Virtual Insanity” c. 1996

It doesn’t seem like much has changed in the intervening quarter century or so. Everything is a twisting of technology as hyper partisans battle for mindshare on who decides on who can owns the virtual world and its creations.

I hope it provides some small comfort that the things we are challenged by not new. Intractable human nature doesn’t change much. So before drowning in the virtual insanity consider doing something in real life. I’d be happy to facilitate introductions.

Categories
Aesthetics Culture

Day 1288 and Real Fake Girlbosses

All I wanted the first time I raised venture capital was to be able to make my business case. Once I’d done that I was sifted into into the wider cultural moment of girlbossism with everyone else in my cohort.

It quickly became the way to raise money because heaven forbid gender not be important. I was no Diane Green so I better get comfortable mugging for the cameras. I’d not so secretly hoped I’d be able to offload some of that lifestyle element to someone else. Someone more suitable.

At first I figured fine whatever it takes to get the money who cares embarrassing shit like becoming avatars for the zeitgeist doesn’t matter.

But now I think maybe it did. Every time a piece of social media goes viral with women messing around at the office I think what did we do? I’d envisioned that the difference between me in 2014 and the new younger, better, more ambitious versions of me 2024 to be, well, actually better?

Maybe they are. Media isn’t reality. But I had visions of women quietly running companies and venture funds competently and without concern for their gender. Surely in ten years more would have changed?

Instead we’ve got we’ve got the simulacra version of women like me filtered through Cosmopolitan features and glossy magazine spreads into TikTok dances for a company that makes pimple and acne treatments.

And it’s all grist for the mill. People want to blame feminism and gender studies. Pffft. Cute. It’s not gender studies or critical theory that got us here. For all the Baudrillard, Foucault and Judith Butler we all absorbed, the thing is just a representation of a reality that never existed.

Jean Baudrillard’s Simulacra and Simulation explores the concepts of simulacra, simulation, and hyperreality. Simulacra are copies or representations that become detached from their original reality, leading to a state where distinctions between reality and representation blur. Baudrillard identifies four stages of simulacra: the faithful copy, the perversion of reality, the absence of profound reality, and pure simulacrum, where the representation becomes reality itself

Perplexity’s Synopsis

If you want a crack in the timeline go decide what the Summer of 68 produced as a culture. Maybe they were just reactionaries. Maybe I’m just a reaction to them. These girls are a reaction to me.

If you want to be a cynic there is no shortage of commentary on how media showed us culture that didn’t serve us. Those Summer of 68 men turned into Yuppie midlife crisis dads who weren’t there for their children and wives. Feminism giving depressed stifled women a chance to not regret their choices. But the choices already exist.

Your cultural war mileage may vary. Now we have cowardly millenial man children and forever princess boss bitches and endless rounds of upset every time we see women in an office doing something silly.

You can rage at critical theory all you like but this just one elaborate morality play being accountable. And no one wants that. Real fake Girlbossism selling blemish cream.

Everyone deserves better than this. I deserved better than this. The horror of contortions required to simply pursue work means you must do what media and finance require of you to succeed. Go watch Margin Call and see if you think you’d fare better in making those choices.

Categories
Finance Startups

Day 1286 and Halfway There, Living 2024 On A Prayer

An estimated 50% of the global population is participating in elections across 60 countries. That includes as supra-national entities like the European Union holding major elections. Naturally this made anyone who has to do any type of planning anxious.  

Concerns about access to compute and adequate energy, overbearing and inconsistent regulatory regimes impacting exits, growth and liquidity events, and the post-ZIRP monetary policy driving up cost of capital have been in the foreground of startup communities.

I see this reflected in my H1 investments. Access to energy, access to compute, and decentralization of both compute & energy are directionally the major trends that I believe will matter over the next decade. 

CapEx concerns and hyperscaling may grip the Magnificent 7 and worry analysts at Goldman Sachs but I’d encourage students of economic history to look to Carlotta Perez and her theory of deployment in previous economic innovation cycles for a more nuanced take. I think simple reads of over-investment are for suckers. 

From where we stand, capital serves the founders who make things of real value. That takes time. Regular builders have simpler needs while they do it: the freedom to make what they want with readily accessible tools without interference. 

We originated #FreedomToCompute as a tagline that shows our values. Not only has it driven me deal flow, but the coalition of e/acc, crypto, and El Segundo hardware/deep tech autists even changed a political party’s platform.

I’ll admit that I was surprised by the Republican Party’s adoption of innovation in crypto, artificial intelligence, and space as a core policy plank. They must really be courting startups as a constituency but I’m happy to have as many as possible aligned with us.

Science and progress are values traditionally associated with liberalism’s left leaning parties, but it seems the axis of “the best is yet to come”  is a wide coalition. My heuristics have thusly been updated so we can remain up and to the right. 

Anna Gat’s Axis of Hope