SPEAKER_01: you know, once star net comes online, I don't think it would take that much or that long for the CCP to start rolling up all these countries with being either the complimentary service or the main service. And again, that's gonna be a very different version of the internet that people are going to be exposed to. If you're going through star net, as opposed to either star link or Kuiper, or even just the regular homegrown African telcos.
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All right, everybody, we are honored today to have FCC Commissioner Brendan Carr back on the show. Commissioner Carr joined me back in July of 2022. Episode 1509 to talk about the banning of tik tok and should it be banned back then he made a lot of waves when he called for Tim Cook and Sundar from Google to remove tik tok from the apps or something.
SPEAKER_02:
That has turned out to be pretty prescient. People are now starting to take that much more seriously. Well, we've got him back on the show because he is in his unique style being very candid about the regulatory harassment of Elon Musk by the Biden Administration Commissioner Carr. Welcome back to the program. So good to be with you. Thanks for having me. All right, let's get right into it. Well, I want to get an update from you about obviously what's happening with tik tok.
SPEAKER_02:
But the FCC revoked a $900 million subsidy, I guess, program from Starlink. And you felt it was because why?
Yeah, this is a pretty puzzling decision to me that really can't be explained on the law or the facts are really policy. I think it can only be explained when you step back and look at what you know, frankly, it wasn't my turn, but the Wall Street Journal, called regulatory harassment of Elon Musk, and it cuts across a wide range of administrative agencies. With the FCC in particular, you know, we issued this award to Starlink back in 2020, almost a billion dollars, to your point to subsidize the
SPEAKER_01: to ensure that 640,000 rural homes and businesses will get covered with high speed internet 100 over 20. And what the FCC did last week was in a three to two decision. So there's five commissioners, the senior republican, there's three democrats was a party line vote, they decided to revoke that award of one nearly $1 billion. And the reason they said was because they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy.
And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy.
And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy. And so they were going to get a $100 million subsidy.
SPEAKER_02:
at both of my homes. Here as you can see, I'm at my ski house and then at my other house. It frequently performs at the level of my broadband connectivity. In other words, I'm able to tape this week in startups and the all in podcast over starlink. And in fact, I have starlink because I need a backup. I'm a professional podcaster, the $1,200 I spent each year on starlink at two different homes, which is $2,400. If I were to miss one episode of a podcast, you know, it's thousands of dollars in ads, it easily justifies me having them as just as back in the day.
I'm not a fan of the backups. But when I use them a commissioner, respectfully, they hit 100 slash 20. And people who are on boats who are remote areas are buying these because it is the hands down best solution for a rural or a non landline connection.
So what am I missing as a consumer, a dedicated consumer starlink and all the people who are in rural areas? What are they missing and the people on boats and planes and the government? What are we all missing about 100 slash 20, which we get from starlink. And we're over the moon about and people are raving raving on social media. When they get on a plane with starlink. I believe there are a couple of airlines that have it now that they cannot believe that the broadband wireless broadband is good. What are we all missing from our first person realities? Yeah, look, again, we didn't have any milestone or deadline for starlink to kick in until 2025. That's when they were supposed to provide service to at least 40% of that 640,000 location. And yet the FCC's decision said we don't think it's likely that they're going to get there by 2025. Which again, doesn't make sense when you look at people's individual experiences, what they pointed to specifically was there was some ookla nationwide speed test average data that was showing speeds below 100,000.
SPEAKER_01: And that was a big difference. So we're not going to hit 120. But again, starlink didn't need to hit 120 until 2025. And moreover, the ookla data was, you know, averaged nationwide, it wasn't about how are they directing beam to these particular communities. And the other thing to think about is, you know, competitively as well. So we ran this, we call it a reverse auction, which means in 2020, we said, we're setting aside $9 billion. And we're gonna try to connect something like 8 million homes and businesses that were on the wrong side, that you'll provide too high speed connectivity for the first time. And so we're going to have to make sure that we're not going to have to make a lot of progress. And we let a range of different technologies compete. And it was controversial at the time that we even let starlink and there's other low worth orbit satellite systems that are going up right now. Amazon's kyper is one that's getting up and off the ground now as well. And so we bid it out and starlink one in these areas, but other providers one in other areas or something like 180 different winners, some fiber, some fixed wireless. So there's a lot of different technologies that one. But again, you know, we really sort of created an entirely new standard and applied it only to one of those 180,000. And so we made it a lot of fun to make it one of these 180 winners, which was starlink and said, look, since you're not doing 120 today, we're not, you know, reasonably confident that you're going to do in the future. And again, it was a backwards decision too, because they looked at the starship, the starship launches, and they said, Well, those have been failures. I'm thinking myself, you know, we made fun of trade press, that thought that those were failures, we don't understand how technology works. So again, to say, we're looking at these two data points, these two ukeleus B test data points, and we're gonna somehow draw a straight line between them and say, look, you know, we don't think you're gonna get to 120. That's not how technology develops. It's a hockey curve that sawtooths along the way. And so I think it was a really sort of backwards looking decision from the FCC from from just an understanding of technology perspective to listen selling software is hard enough right now man, it's hand to hand combat out there and b2b land, the last thing you need to do is slow your sales team down because you don't have your sock to dialed in. So if you're SAS or a services company, and you store consumer data in the cloud, you know what you need to do, you need to check out Vanta, they're going to get your sock to comply and easier and faster. And
SPEAKER_02: Vanta makes it so easy to get in renew your sock to on average and customers are sought to comply in just two to four weeks. Compare that to three to five months without Vanta, they're going to save you hundreds of hours of work and up to 85% on compliance costs and Vanta does more than just sock to they also automate up to 90% compliance for GDPR, HIPAA and more, you can't afford to lose out on those major customers, the lighthouse customers, the big fish, the whales because of silly stuff like locking compliance, just work with Vanta and Vanta. I'm an investor in the company. It's a great company, get your compliance automated, get it tight, tight is right and close those big deals. Here's the best part Vanta is going to give you 1000 off because they love this weekend startups, they love startups vanta.com slash twist that's v a n t a.com slash twist to get $1,000 off your sock to so just for me to wrap my heads around this, I always think about the consumers, the consumers that we are as a government as a society, we've elected to say the digital divide is real. It's important. If we're going to have
high speed in cities, we should make sure that people who are in the rural areas of America, this incredibly expansive landmass that we're blessed with, we should subsidize them. And am I correct in understanding that our taxes, collectively for the people who live in high speed, you know, cheap areas, cities, suburbs, pays for the people in rural areas? Am I correct in just broad strokes why we're doing this? Yeah, that's right. You know, it used to be when we had this mobbell telephone monopoly, we had a system called implicit subsidies, which means we're going to let the AT&T
SPEAKER_01: monopoly get you know, good profits in urban areas in exchange for that we're going to compel you to build out other places when we introduce competition into the broadband market, we move from implicit subsidies to explicit subsidies meaning right now, on your traditional telephone bill, you're going to see a line item charge maybe called universal service, it ends up being two or three bucks a month that two or three bucks a month goes into a federal pot of money that we administer at the FCC called the Universal Service Fund. It's about $9 billion a year. And we take that $9 billion and we divide it up into a couple categories about four and a half billion is what you're talking about, which is subsidizing internet builds in parts of the country where there will just never be a private sector business case. And again, with this starlink technology we were providing as a government we're planning on about $1,300 per location and a subsidy to make sure that starlink would be available there. On that point, it's super important to understand it costs but $1,300 to put a starlink, you know, at let's call it, you know,
SPEAKER_02: we're in the middle of America. We're in in Jason's farm, out in the middle of America. What would it cost our government to run fiber, or a cable modem to that same location? I've read estimates 15 $25,000 is that ballpark correct? That that would be another number that is $5,000. So there's a there's another bite administration program right now that's looking to get you know, principally fiber to these communities. So it's 5000. So yeah, you can look at it as $1,300 in subsidy for starlink versus almost $5,000.
SPEAKER_01: So it's 75% cheaper. 75% cheaper. Yeah, it's what we're talking about. It's the efficient use of resource but also time right? I mean, you can get a starlink system virtually overnight. Whereas if the federal government says wait, I think fiber is better. It's a better technology in my view as a government Okay, fine. What four or five years to trench the conduit get the permitting process done. So it's both money and speed of connectivity. So let me ask this follow up question there. Knowing what I know about consumer behavior, consumers naturally go to the most
SPEAKER_02:
affordable product that they perceive is the best. It is clear that if you were a rural American today, that you can get starlink right now and get the best product at the lowest price. So if the Biden administration or the FCC voted, hey, we're going to go fiber, that's our decision. And we all say, hey, that's a terrible decision. But okay, I guess our government failed us and made a stupid decision to take five years for these people and get $5,000. We're all banging our heads as well.
What would the consumers do in your estimation during that five year period with their own money? Well, what we're telling them to do is just continue to wait on the wrong side digital divide. But I think what they would do is if they have the opportunity, they would sign up with starlink or Amazon's Kuiper or something like that. Okay, if you were to step back as a matter of first principles, what's the most efficient thing for the government to do to bridge the digital divide? One argument is to just cut everybody a coupon for $600, which is effectively the price of a starlink dish, mail that coupon to
SPEAKER_01: starlink and call it a day doesn't even take 1300 dollars mean the $1300 is to make sure that starlink is putting capacity over these 640,000 locations that could require them to put in new ground stations. There's lost business opportunities. So the $1300 is partly compensating for that. But if you're narrowly focused on ending the digital divide, mail everyone a coupon for $600 right now. Okay, but look, we want to be committed. I must respectfully ask a very listen, I do not have as much experience as you have inside of, you know, the halls of government.
SPEAKER_02:
Luckily, I must repeat back to you what you said. At this moment in time, today, we could spend 90% less of American US taxpayer dollars by sending a coupon of $600 instead of spending 5000 on a fiber that comes in five years. So today, we could offer these people $600 five 600 bucks to get the dish and let them be on their own for paying for the service sounds pretty fair to me, I would have liked that. You know, I paid for it. And we would be done with this issue. And the the commission
SPEAKER_02:
would have to pay for that. And the government and the individuals would have to have the ability to work on something else. And we would save 90 cents on the dollar. But the FCC some number of your commissioners, three of them who happen to be Democrats have decided instead of sending or even testing, sending the $600 coupon. Instead of testing that they've decided to block access to this and then force people to wait as much as five years to spend 10 times as
they've done. So is my assessment in any way hyperbolic? Or did I just repeat back to you basic ground truth first principles? Yeah, that's right. And look, there's again, you have to keep in mind in the background here, there's a separate federal program called the Biden administration is running. It's their signature broadband initiative that passes part of the Infrastructure Act two years ago, it's called bead, or internet for all is the branding. And that's a 42 $44 billion infrastructure investment that is, you know, skewed almost exclusively towards
SPEAKER_01: fiber. And we're about to spend right now, you know, 40 plus billion dollars on fiber, look, fibers, a great technology. I love it. I've been in the field, I've spliced a lot of it. And there are some knock on benefits right to fiber, because you can connect cell sites to fiber when you're going by homes, and there's, you know, schools and anchor institutions like there are some knock on benefits to fiber that you don't get necessarily with starlink. But yes, if you're looking at this from the perspective of how do we quickly and efficiently bridge the digital divide, then looking at something like starlink or Amazon kyper when it gets going, that would be the most efficient way to build fiber. And I think there's a ton of union jobs that come from building out fiber. And I don't think that that's something that you can dismiss when you look at how the policy sausages make it in DC right now. Yeah, we all know the one thing the Biden administration bases their actions on is the impact of unions or non unions, they literally didn't invite Elon to the EV summit. Because he has a non union shop. Now we have the second piece of evidence. They're not giving this
SPEAKER_02:
any kind of information. It's the best option out there. And if we were to look, you know, and listen, Jeff Bezos and Amazon is a great company, but they are pretty far behind they have tested, but two satellites to the 1000s that starlink has and starlink has millions of users. Amazon will not be ready until 2029. So they'll have what starlink has in five years or probably less, starlink has not stopped innovating. So just to catch up with
you, they're arguably seven, eight years behind. So if we are as Americans, and we're looking at this, and let's say we're a democratic American, and we voted blue our whole lives, how could we look at this as anything other than harassment? Is there any steelman argument we could make for not allowing people to just have starlink? I'm desperately trying to find it. I'm desperately trying to understand something this crazy. Yeah, I don't think so. I look, I think if starlink was owned by someone else, or owned by the same person with different
SPEAKER_01:
interests, I don't think that that award would have been raked back. And I think it's part of what I would describe as the Biden administration having what I sort of term a need hate relationship with Elon Musk, where they need his technology, which they do in a lot of cases, to deliver on their own policy goals, whether it's you know, EV, or NASA getting to space, you know, they're going to rely on that technology, including connectivity, when the military like absolutely needs it and doesn't have another choice. They're going to enter into contracts with Elon Musk starlink for this, but where they think they can get away with it, and they're going to actually compromise one of their own policy priorities, then you see actions like the revocation of the starlink award, it is a very odd sort of need hate dynamic that's taking place right now. But it's also me look, I mean, it's part of a broader symptom in this country where we're just having a difficult time building, you know, actual physical things for a variety of reasons, we get caught up on environmental review, we get caught up in historic preservation reviewing one of the reasons why this country did so well, the last 20 years was so much investment and innovation went into Silicon Valley into the application space into the internet space, which was very, very lightly regulated. I mean, just more broadly right now, we are just really holding ourselves back through, you know, over regulation from the administrative state. Yeah. And so if we were if you were to look back, how long have you been with the FCC and or been involved in telecommunications more broadly? Yeah, a long time during the FCC back in 2012, became a commissioner in 2017. I was general counsel of the agency before that. So you've been with the FCC
SPEAKER_02:
for over a decade. So you've seen it all. If you were to look back on that decade, and then the decade before it in the last 20 years, what would you say has been the most transformative, competitive broadband product released in the last 10 or 20 years? Well, look, I think, you know, the emergence of, you know, 5g as this next generation platform, I know people are sort of a little bit down on 5g right now, because they thought of it as sort of 4g, which was, you know, 4g was all about the smartphone was all about the app economy, and you could see it, and you
SPEAKER_01: could experience it, you know, you had Uber, you had all sorts of, you know, dating apps and everything that, that flourished. And so people were really amped on it. But I still think that this 5g this idea that you can now get connectivity that can compete with fiber, again, whether it's Starlink, or otherwise, we have this sort of convergence of technologies right now to deliver high speed service that we never had before. Again, before people thought that, you know, they could only get a high speed service from their cable provider, or maybe your telco had fiber, but now we have what we call fixed wireless, where you can get again, wirelessly from a cell site that's basically the same service you had before. So I think this convergence of technology, and this idea that, you know, previously siloed companies are now competing, you know, again, you know, traditional mobile wireless guys, Verizon T mobile, they're taking a larger market share right now, the in home broadband market, which was usually sort of the exclusive province of cable. And so that type of, you know, competition has been pretty interesting to see. All right, listen, I know, I'm a founder, just like you, and there are things that I love doing.
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or duopoly getting into your house or your apartment. That is a 5g connection coming via a Verizon and at&t and very few people have that right. It's low millions, I believe. It's and it works primarily in big cities, I think, nicely. So it doesn't work in rural areas, because you still need to get fiber out to that rural area, you still got to build towers, it requires towers. Then you have satellite requires no towers requires no fiber only requires clear line of sight, which means just getting above the tallest tree, and they literally have
SPEAKER_02:
to get the tallest tree mounts. So when I was looking at my Tahoe home, and how do I get my home at Lake Tahoe to have it, they said put it on the top of your house or find your tallest tree and put on the top of this is a treatment. So the two things, there are two things that have made it cheaper or at least had other options. But the prices have they started to come down now because of Starlink and because of 5g direct into your home through a router, providing broadband have the prices come down because it feels to me like it hasn't. It come down in two ways. One, people
SPEAKER_01: have to have a trick math, you're getting a ton more data now for effectively the same price as before. So by some measures, you could say it's a lot cheaper on per megabit basis. But also more generally, if you look at you know, I mean, inflation sort of helps everything from a from a pricing point, but the price of internet has not kept up with the price of inflation. So in sort of real terms, it's gone down as well. So I do think we're seeing that some competitive pressure there as well. Do you believe when Starlink, you know, becomes more prevalent, and then we get Amazon's offering, maybe fuse is also going to have a lower orbit.
SPEAKER_02:
And then we have the Amazon's offering. When those offerings happen, and you have two people competing with Starlink. Now they're going to be in a price war. So right now, Starlink, I think on average, what is it 70 to 100 bucks a month, something in that range? And yeah, so I think it starts to half maybe do you think, and then it's game on, right? We could actually see Americans really competitively shopping for internet providers because of the satellite. Yeah, I think that's right. I mean, look, I think there's a lot of reasons why we need to have the backs of America's, you know,
SPEAKER_01:
China's, of course, those competitive dynamics are one. But even, you know, globally, if you step back, you know, China is launching their own copycat service to Starlink. They're calling it star net. They're usually not very creative when they end up stealing us technology. And I don't think we really grapple with as a country, what that's going to mean when China has started. So just step back for a second, let's say it's, you know, roughly 2028 given give or take a year is what people are thinking about for China's star net to take place. We already are obviously very familiar with this concept of belt and the way that we can do this through various mechanisms, sort of locked up different markets, particularly Africa, you know, goes with ports, it goes with rails, we saw it with, you know, Huawei technology, power. Yeah, now imagine that, you know, the CCP can be the global internet provider, they will undercut, you know, Starlink and Amazon by price by half, right. And they can offer, you know, let's take Africa, they can offer nations in Africa, internet filters and censorship that are both amenable to those African nations into
SPEAKER_01:
the CCP. And that's a really scary world, we think about the geopolitics that are opened up when China can be a global high speed internet provider and you know, controlling the content filters and you know, and all of that. And so again, we need to make sure that, you know, Starlink and Amazon are going we need to be helping them lock in sort of long term market access to countries in Africa and South America, because I think, you know, we're gonna see quite the brawl happen once this star net technology gets gets up and running. Commissioner, this is a very important point, you bring up that I
SPEAKER_02: think people are not aware of, you know, China has an explicit strategy to give loans, to build roads and bridges, they call this belt and run. And if you look it up online, we the Wikipedia page, basically, it looks like a belt going across, you know, from China, across India, Pakistan, etc, all the way to Africa. And they want to have influence in the frontier markets and the emerging markets were in the developed world, first world we used to call it, but there are frontier markets, which tend to be not democratic, which is kind of like the West, where you have emerging markets, maybe they have some democratic components. And then obviously, you have the free world, the West and the developed world, these emerging countries are going to go one direction or the other, they're going to lean towards democracy, capitalism, and freedom for individuals. Or they're going to lean towards authoritarian. And every time the authoritarians, if I'm understanding you correctly, offer them services, that kind of builds the fiber and the relationship to use a term there,
because they want to have that relationship. They want to build that fiber with Africa, Pakistan, India, anybody over there. And the United States, this is actually critically important. So having Elon Musk and Jeff Bezos and Amazon, getting to Africa and supporting them is a national security and a humanity level issue. Correct? Yeah, look, I visited Nairobi, Kenya, I was about actually two hours outside of Nairobi, this, you know, dusty, small town called
SPEAKER_01: Nairobi, Kenya, and I'm driving to this town, and there's just Huawei billboards everywhere, everywhere in the small town, you know, a two hour bumpy drive outside of Nairobi. At that point in time, Huawei has something like an 80% market share. And you know, right now, Starlink is moving into Africa, they are seeing a little bit of pushback from African nations that want to protect their own sort of national telecom monopoly. So there's just some basic, you know, incumbency bias there. But yeah, you know, once you get to the point where you're going through the internet, I don't think it would take that much or that long for the CCP to start rolling up all these countries with being either the complimentary service or the main service. And again, that's gonna be a very different version of the internet that people are going to be exposed to. If you're going through star net, as opposed to either Starlink or kyper, or even just the regular homegrown African telcos. As we wrap here, and I know you're busy, and I appreciate your time. What is happening with tik tok, you and I've been talking about, you know, how this
SPEAKER_02: is super, super dangerous for America for democracy to have a foreign nation, which is on the board, which controls something as powerful and influential as tik tok, or even owning x or Twitter, or if they own Facebook or Instagram or LinkedIn, whatever platform and happen to be at scale. And then we have this Hamas attack in Israel. And we're seeing on tik tok 100 to 1501 pro Hamas or pro Palestinian, you know, and obviously, this is a very nuanced
situation. You could be anti Hamas and pro Palestinian. In fact, I think most of us are, but it is trending towards anti semitism often. Two part question one, should this be the wake up call for us that the thumb might be on the scale here by the Chinese and the CCP? And do you think that they would waste the opportunity to use tik tok strategically on something like the Middle Eastern conflict? Or you think they would save that ability for say, the
SPEAKER_01: US? Yeah, it's good question. When we talked about this last, again, it was sort of July of 2022 was sort of the leading edge of some of the pushback on tik tok. And we've seen since then, is tik tok has come out and admitted that they were in fact surveilling us journalists and accessing their data. illicitly, there's been more information has come to light about just the mass amounts of data that's being accessed from inside Beijing by officials that are themselves members of the CCP. And stepping back, I think tik tok is two main threats. One is surveillance. That's sort of what I was talking about the data flows. And the second is what you were talking about, which is foreign influence. And we've seen it again in spades ahead of our most recent midterm elections after we talked. There was evidence came out that the CCP is propaganda outlets was using tik tok to target select us politicians for criticism, as you pointed out, there's all sorts of data coming to light right now about pro Hamas content, you know, trending, you know, outrageously, as compared to sort of other neutral content. So I think it is a two prong issue surveillance and foreign influence. And I'm, it's sort of a tale of two. And I think that's the worst of time since we talked, there has been some progress, we did pass a nationwide ban on tik tok. For federal devices, there's 2530 states that have done that as well. That's good. At the same time, I am frustrated that we haven't gone further as a federal government. And I'm hopeful that as you know, Congress comes back into session in this new year, that we will sort of follow up with the concrete steps we need to protect ourselves from from tik tok. I think the answer is this, we need to require the genuine divestment of all ties back to CCP. So getting rid of all CCP controls the platform itself, I don't have a problem with people doing short form videos. The problem is it being you know, connected back to the CCP. So people that are worried, I think, look, on the left, there's some concern that electorally we can't, you know, shut down tik tok because you know, our younger democrat voters sort of skew on the tiktok that okay, I don't agree with that. But but my answer that will be the platform can continue, we just need to require the divestment of ties back, I'm actually somewhat hopeful that we're going to make some additional progress on that. And then in the new year, but but frankly, that the tide is going out, whether it's next year, or the following year, I just don't see a future in which the CCP and ByteDance can continue to have the same degree of control over tik tok that they want that they once enjoyed. And then we can do this entirely consistent with the First Amendment, you know, some people do that because of the First Amendment. And there's a variety of reasons why that's not the case, you know, one, the Supreme Court case called our car books where there's a bookstore, and they were running basically a prostitution ring at the bookstore, and the government shut down the bookstore, and the guy said, you can't shut down the bookstore. That's, you know,
First Amendment protected activity in the Supreme Court said, No, you know, it's got nothing to do with it, you're engaging in illegal conduct. And therefore, you know, as a collateral consequence, yeah, your bookstore shut down, but we're not doing it based on content. And so that's the key distinction is conduct versus content and tiktok's conduct, meaning the surveillance, meaning the actual taking of data is sufficient, standing alone to ban it without violating the First Amendment. Or another way to think about it is you can take a pen, and you can write the most salacious sort of anti American propaganda you want to write, and you can write the most salacious sort of anti American propaganda you want, and the government can't take the pen consistent with the First Amendment. But if you take that same pen, and you pick a lock, well, then that's conduct, and we can take the pen from you. And it's no defense to say, Well, I was writing anti American propaganda before you took the pen from me. And so I think, you know, we got to move forward and get tiktok, you know, across the finish line here. Listen, I appreciate you taking a stand and being so transparent have the other three Democratic FCC chairs addressed in any way, the
SPEAKER_02:
that you put forward about, yeah, on the Starlink side, they've said, Look, we had an obligation to just make an assessment of whether we thought was reasonably capable that they would hit it. And we just applied the law. And we just came out where we came out. And that's what they have, you know, consistently said, any rebuttal to that? Other than I just don't think I just don't think it was stands, you know, sort of even casual scrutiny. Again, I think you can look at it, you know, narrowly or again, just the macro view that, you know, come on, the federal government is relying on Starlink entering into contracts with them. So the idea that, you know,
SPEAKER_01: it's not a reliable technology, just it just doesn't, you know, seem to the military. Good enough for a rural farm. I think we can. Or good enough for putting, you know, in private jets for rich people are putting it, you know, on military bases, I think good enough for everybody else. Commissioner, Brendan Carr, thank you again for coming on the program. And we'll see you all next time on this week in startups. Bye bye.
SPEAKER_02:
SPEAKER_02:
It was a mess now with Northwest registered agent. It only takes 10 clicks and 10 minutes. Northwest provides everything you need to start and maintain your business. Every LLC, corporation or nonprofit Northwest forms comes equipped with registered agent service, a business address, a website and hosting email a phone number. And all of this is covered by Northwest privacy by default settings. Again, your full business identity is going to be live in 10 minutes and in 10 clicks. So here's a very simple call to action for 39 bucks plus state fees. They're going to form your LLC, your corporation or your nonprofit, and you'll be able to launch your business in just minutes. Visit Northwest registered agent comm slash twist today. That is North West registered agent comm slash TW is t today. Hey, everybody, I wanted to just talk to you a little bit about starting a company. I've been in the technology industry now for 30 years, starting my first companies in the early 90s. And one thing I remember over all of these decades of innovation is people lamenting, oh, my God, if only I started a company at the start of the internet, I was there I was doing my magazine covering all these companies. And then the dot com bust happened. And everybody said, Oh, man,
I missed my window. But before that, I heard a lot of people say, during the internet era, right as that was getting started online services like AOL and CD roms, people would lament, Oh, my God, if only I started my startup during the PC revolution of the 80s and 90s, I would have been Bill Gates, I would have been Steve Jobs, I would have been Mitch Kapor doing Lotus 123, I would have been Michael Dell. Right. And then I heard people during web 2.0. When I started
web logs, Inc, and gadget auto blog, well, that's right blogs, I sold the day well, I heard people say, Oh, if only I had started my company during that web 2.0 period when Zuckerberg was doing Facebook and Instagram came out and WhatsApp, YouTube and all these incredible companies. And now I hear people saying, Oh, my God, I missed my window, I should have started a company during the cloud revolution, during the app revolution of 2009, all the way to 2021. And I missed it. You didn't miss anything.
The technology industry, and the markets are like the tides, the tide comes in, the tide goes out, the best time to get to the beach, and to start to prepare to surf the big waves is when the tides gone out, you kind of learn a little bit, you get your company started the waves start coming in, they get progressively bigger and bigger. And before you know it, the market crests and you are big wave surfing. So don't worry about having missed your window.
Understand that it's a cycle. And we are now at the bottom of the cycle in 2023. This is the bottom of the cycle. The cycle ran from 2009. When I started investing in companies like Uber and Robin Hood and thumbtack and calm calm, superhuman grin, I hit so many amazing companies. And the market peaked. Some of us cashed in some chips, yum, yum, people made fortunes, and then it all collapsed. And here we are, in 2023. This
is the best time in our lifetimes to start a company. Why is it the best time now, I just told you about four incredible super cycles. This is the super cycle of all super cycles, because it's built on those previous four super cycles. It's built on the PC revolution, it's built on the internet revolution. And it's built on the app and cloud revolution. And here we go. This is the AI revolution and the efficiency revolution. And it really is a globalization revolution as well. Because when you start a company, if you do get product market fit, and the market pulls that company in, and your service, it can go global very quickly. And that is something nobody expected in our industry. Nobody expected that Airbnb and Uber and Coinbase, Robin Hood would become global phenomenons as quickly as they have. But when you think about it, it makes sense because a video can go viral on Twitter slash x, Instagram, TikTok, a blog post can go viral. And what happens, everybody in the world knows about some really interesting piece of technology. And all of the companies I've mentioned, they all started with one
two or three founders. That's how they all started. So if you're sitting there wondering if you have what it takes, you probably do if you can find two other really talented people. And what I've done, you know, I'm an angel investor, an early stage investor. But truth be told, I have a venture capital firm. I like to say angel because we invest early, we have a venture capital firm, we get 20,000 applications, the venture capital firm is called launch, you can visit at launch.cl launch.co. I can't get the M launch.com.
I tried to get it but can't buy the domain name. So we go launch.co great domain name, when we get these 20,000 applications, and we sort them. And we try to figure out which founders we should meet with, we have a limited amount of time. So we meet with about 3000 companies a year about the top in the top 15%. When we looked at these companies, more than half were in the ideation, should I get started phase, I have a prototype, I have an idea I have wireframes. So what I decided to do was an experiment. And the experiment is called founder dot university, what is
founder dot university, it's a 12 week course, it occurs Monday and Thursdays at 6pm. That's all you need to know. So if you got a full time job, 6pm Pacific, 9pm East Coast, if you're anywhere else in the world, you're going to be staying up in the middle of the night. This course is 12 weeks. And we teach you a number of the most important items that you need to know about creating a startup. Now, the most important thing is launching your product, right? Then after you have a product, well, you need to get users and you need to talk to customers,
hopefully you talk to some customers before you make your product to figure out what you should build, then you have to have a business model, right? This is really seems simple, doesn't it? And then ultimately, you have to figure out how to scale the company. Well, at founder university, we have had thousands of people go through our 12 week course, and 96% of people graduate. How did we get 96% of people to graduate? Very simple, I came up with a trick if you're accepted, and we accept about 10% of the teams that apply. So we had 2000 applicants last time we accepted 200 teams 450 or so founders because most people have two or three co founders on a team, we charge them $500 to come to the course. And if they come all 12 weeks, one of the founders, it doesn't have to be both. If you come all 12 Mondays, we just give you the $500 back 96% of people have completed the course. So I came up with a little trick. And it works really well. So the course is essentially free if you show up, I don't want you to burn a spot, right? I want you to finish all 12 weeks, which is an hour and a half a week. So it's not a lot of we're talking about 18 hours of time total. What we found was about half of the knowledge in our program is known by the founders already. Well, that's great. The problem is, or the great thing is, you don't know which half you don't know. And so as we walk you through this, we're going to point you to the greatest content, the greatest best practices in the world, not just ours, just from the founders who built great companies. And listen, we've sat there and watch them do it. And so we're going to help educate you and make
sure that you don't have any holes in your knowledge. This is important. Well, if you make a mistake with how you set up your company, your cap table, the rights, your board, investor rights, if you screw up, you know, employee stock option plans, the accounting, or how you design a product and who your first employee is who your first hire is, all of that can derail a company. And these would be in the category of kind of self inflicted unnecessary wounds. So what we want to do is teach you how to build the car.
And then we tell you, hey, here's the track. Be careful on this turn, we've seen cars flip on that turn, you go into that turn too fast, you can flip the car. Hey, be careful, it is a really tight part of the course, you can go you can speed up on it, but there are some potholes. So just be wary of that. Hey, you want to make sure that bolts are on pretty hard on this Ferrari that you're building here. And here's how to get the right tires on the car, because that's where the rubber meets the road. We try to figure out all of those things just to make it faster for you and more efficient for you to get your
product to market to get customers and to start learning. You can do this. If you have ideally one of the three following skill sets. Number one, you're a developer, you can write code. Number two, you're a designer UX UI expert, you can make the front end of the product, the user interface, super important, right? So if you think about, you know, any great product, you know, take Uber as one example, the fastest growing company I've invested in along with calm and grin, a couple of other ones went really fast, too.
You know, you have the underpinnings, the code, hey, you know, matching with the algorithm, a driver and rider. But you also have the rider has to have a beautiful interface, right to see the cab coming to do the tip to rate the driver and the driver needs to have a beautiful, you know, application on the driver side that they have a different app. And then third, you need to have a growth hacker, somebody who understands customers and customer acquisition. Those are the three best archetypes for you have in your startup, if you can get any combination of that to developers,
one growth hacker, to growth hackers, one developer, two designers and a developer, any combination of that is a very strong start. Here's the secret. Being a developer takes about six months to learn. Being a UX designer, about three months being a growth hacker about three months, you can actually learn 50 6070% of the job, depending on how much you apply yourself, just by doing one of those three and think about that for three to six months. So if you don't
have any skill, you're just an idea person, quote unquote, pick one of those three, pick all three and spend six months of your life going all in on learning UX and interface design. Very simple to do. Look at what Apple says are the apps of the month apps of the year, their favorite apps, the ones they write editorials of and work backwards, right? So very simple tip that you might not have thought of if you want to have a world class app. Well, who determines what's world class Apple does they pick calm as the app of the year. So if you look at the comment, they love that app. They love design,
they love UX, you don't need to be the expert on it, just draft off of Apple selections. So these are the kind of nuggets of wisdom that we do. If you come to the program, you also get to come to a kickoff or a closing event with me in San Francisco or New York. And so I hang out with these companies. And here's the best part. We every week, will offer the companies to apply for $25,000 in funding, we have a fund, we're raising $100 million fund, our last fund was 44 million. And what we like to do is the reason we do founder University is not
just because we want to help founders we do. But we're also a business, what is our business, our business is getting on your cap table and owning some shares in a large number of companies with the hope that one or two turn into Uber thumbtack Airbnb, whatever. So what we're going to do is every week, if you need it, you can check a box that says, Hey, I want to be considered for the launch friends and family round. Last class, I think we invested in 30 companies 25k each, about half of the people, it turns out, are interested in a small 25k
check to get them started. And most of the companies are not yet incorporated come to founding university. So this is what we call a pre accelerator. We also have an accelerator at launch, it's called the launch accelerator, we invest 100k in founders, typically with a product in market, then there's Y combinator 500 startups, hair VC does a great accelerator on summer. So there's lots of accelerators out there. This is a pre accelerator founder dot university is a pre accelerator. And you can do it at night, you don't need to be full time, we want to meet you early, so that we can be your first investor, I get a kick out of that personally, to just tell you sincerely, when I invest in a company like thumbtack, I was literally the first investor on thumbtack, it just is a wonderful feeling when I see Jonathan and Marco, the founders of that awesome company. And they say thank you to me, thanks for believing in us and being the first person to believe in us or superhuman. I was the first investor in that with my friend Darmesh from HubSpot. This is one of the great joys of my life. And a lot of other early stage investors tell me this is why they do it. To be an early supporter
of an entrepreneur and watch them change the world. Man, as my kids say that will fill your bucket, it will make you feel emotionally amazing. It makes me get out of bed every day and do this week and startups and all in podcasts and the events I do. And listen, if I hit a unicorn every hundred or 200 it means I can keep hiring people for my team. We have 21 people at the launch fund, which runs founder dot university, that's the URL and I want you to come to founder dot university, I want you to apply. And so please start a company
that's going to be a great start up. Now some people will tell you can't do it, some people will tell you the majority fail. Of course the majority fail. But what you're trying to do is learn. And if startups fail at an 80 or 90% rate, right to return and when we say fail, failure to return money to investors is what we're saying. So there's other reasons to do a startup, you're learning your confidence, your ability to lead people to build a product. There's so many other things that come even in the quote unquote failure. What I found is the founders who stick with it and they do 234 startups, they eventually get a win, which kind of
makes sense. Mathematically, if you think about it, if you have a 15% chance of success, and you do it 345 times, and each time, you will get five times better at being a founder, literally at least five times, maybe 10 times. So between your first and second project, 10 times better between your second and third product project, five times better. Third and fourth, you might be three times better, because you get better at building a team, right? You get better at building a product, you get better at interviewing potential customers and understanding their needs. So it's very simple. My request for you today is to please consider starting a company. And it doesn't matter if you're graduating high school and going to college, it doesn't matter if you're at Google, you're getting paid a ton of money, but you're kind of bored at Facebook or Google and you're 35 years, it doesn't matter if you're 60 years old, or 50 years old, or 40 years old, just get two or three of the people you respect most, who can build a product, you don't want three idea people, you don't want three salespeople, you need builders, you got to have people who can build write code, design, and get your team to get together and apply, please, founder dot university, please apply. We're doing our seventh cohort right now we've invested in about 7080 companies now, either with that 25k check 100k check, or sometimes we'll even invest directly. So we just invested $250,000 in one company and 500,000 another who came out of found university with it just a direct investment. So we're very flexible in terms of investment dollars. And listen, you got nothing to lose. It's basically free. If you just come for 12 weeks, you're going to learn a
ton. Even if you don't, if your startup fails, who cares, if you'll learn a ton, and you bring all that all that experience back. And now's the time. So as I said, at the top of this, this is the start of the supercycle. This is the artificial intelligence supercycle that is building on everything that came before it. And it's so much cheaper now to run a company. So the instructions here, very simple founder dot university, please apply. If you don't know if you should apply,
go ahead and apply. And then at least you're on our mailing list. And you'll get updates. And then once in a while when I'm doing I'll do like a private speaking gig kind of thing. And you're on our mailing list. And I'll invite you to something cool. So you go to find a university apply, join the mailing list. And let's get started. Let's build companies that change the world. We want to be your first investor, I want you to say J Cal Jason Calacanis was my first investor, please apply founder dot university. And I'll look forward at seeing you during the kickoff, and the wrap up week. It's weeks one and 12. And then I want to change the world with you. I want to build 100 billion dollar company with you and your team.
