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Peter Thiel: Majority of venture capital poured into Silicon Valley startups goes to 'urban slumlords'


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2018 Mar 17, 2:39pm   2,783 views  11 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://www.sfgate.com/expensive-san-francisco/article/peter-thiel-silicon-valley-capital-landlords-12759450.php

Even billionaire Peter Thiel can't stomach the high cost of living in Silicon Valley.

The "vast majority" of capital he pours into Bay Area startups goes to landlords and "urban slumlords," the PayPal cofounder said Thursday during an appearance at the Economic Club of New York.

"At some point does it just get so expensive that it doesn't quite work?" Thiel asked. "You have to very quickly make money just to make the rents."

No kidding.

Thiel stressed that the Silicon Valley monopoly on tech may soon come to an end, in part because of the region's egregious housing costs.

"When a one-bedroom is $2,000 a month in San Francisco and $1,000 a month in Austin, maybe the $2,000 reflects that San Francisco is just a much better place," he said. But once that San Francisco apartment's rent hits $4,000 a month, he continued, "perhaps you should be more open to thinking about some of these other places."

The venture capitalist intends to take up his own advice. Thiel recently announced his plans to move from Silicon Valley to Los Angeles, where the rents are lower and the populace "more tolerant," he said Thursday in an additional interview with Fox Business' Maria Bartiromo.

Even before announcing his intentions to move southward, Thiel has been an outspoken critic of the Bay Area and what he perceives to be a groupthink mentality. On Thursday, the self-described libertarian described the region as a "sort of totalitarian place" that does not allow dissenting views.

"Silicon Valley shifted from being quite liberal to becoming a one-party state," he said.

As for Los Angeles: "I think it is significantly more tolerant than San Francisco at this point."


Of course he's right on both counts:

1. Most of the money invested in tech startups goes to programmer salaries, which in turn goes to pay the extremely high rents in the SF Bay Area.

2. The Bay Area does not tolerate any dissent whatsoever from the Koran of PC ideology. Even stating provably true scientific facts about race or gender instantly results in professional beheading, to the cheers of a bloodthirsty crowd, with James Damore being only the most high-profile case lately.

Comments 1 - 11 of 11        Search these comments

1   EBGuy   2018 Mar 17, 2:58pm  

It's hard to believe Thiel gave this talk over two decades ago!
www.youtube.com/embed/E6cxRYgqfHY

Let's see, VCs have been dropping over $10 billion per year on Market Street. I wonder if that will leave a mark? Currently sitting at over $1000 / sq.ft. in the PRoB. This will not end well.
2   EBGuy   2018 Mar 17, 3:22pm  

Patrick, is it possible to link up my old account, EBGuy with my new one. I lost control of the email address, f******g@yahoo.com , for the EBGuy account over a decade ago. Thx
3   Patrick   2018 Mar 17, 3:42pm  

@EBGuy OK, now if you log in with your new email address and the same password you used on both accounts, you should be EBGuy once again.

Shall I move over your 1 post and 16 comments as EBGuy2 to belong to the old EBGuy as well?
4   Patrick   2018 Mar 17, 10:22pm  

BTW, Peter had a great point in the interview: If we impose tariffs on China, they have essentially no leverage again us, simply because they do not import any significant amount of anything from the US.

Basically, we are being fucked by China, but only because we allow it. If we (meaning Trump) stops letting America get fucked by China, then China cannot retaliate because they have already essentially blocked all of our exports.

So Trump should absolutely impose tariffs on Chinese steel, whatever, because there is literally nothing to lose, and a lot to gain.

Previous trade deals have been a disaster for the US, and we can rightly blame previous administrations for that.
5   EBGuy   2018 Mar 18, 1:17am  

Patrick says
@EBGuy OK, now if you log in with your new email address and the same password you used on both accounts, you should be EBGuy once again.

Shall I move over your 1 post and 16 comments as EBGuy2 to belong to the old EBGuy as well?

Thx Oh Fearless Leader. Yes move those over if you can.
6   tovarichpeter   2018 Mar 18, 8:41am  

I don’t always agree with Peter Thiel but he is absolutely spot on about this.
7   lostand confused   2018 Mar 18, 8:51am  

Yeah trade deals, protecting little guys used to be traditional dem positions. Now repubs have taken it over.
8   Patrick   2018 Mar 18, 10:00am  

EBGuy says
It's hard to believe Thiel gave this talk over two decades ago!


Here's a link to his book from back then:

https://www.amazon.com/Diversity-Myth-Multiculturalism-Political-Intolerance/dp/0945999763

He's totally right. "Multiculturalism" and "diversity" are just code words for "anti-Western", and ironically demand an absolute uniformity of thought.

"If you look for racism everywhere, you'll find it everywhere."

"'Hey hey, ho ho, Western culture's got to go' just reflected what the students were being taught by their professors."

"The way these speech codes work in practice is that you as a student will err on the side of silence. It's incredibly stifling."

"There is no significant problem with racism, there is only a continuous search for evidence of racism where any objection to the search is called racist."

"If we are going to be enforcing a liberal orthodoxy, let us say so, but do not go around saying you are open-minded when that is the furthest thing from the truth."
10   MisdemeanorRebel   2018 Mar 18, 1:05pm  

Draft Thiel 2024.
11   Patrick   2018 Mar 18, 1:28pm  

TwoScoopsPlissken says
Draft Thiel 2024.


He should run with Harmeet Dhillon.

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