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Tim Draper
Founder of Draper Associates, Draper Associates

Empowering Web3 Builders to Transform Finance: A Fireside Chat with Tim Draper

📅 Oct 31, 2024 Stellar Development Foundation 15 MIN 115 VIEWS 14 SEGMENTS · 2 SPEAKERS
Tim Draper joins Meridian virtually to discuss web3 investing and its role in transforming finance. This session highlights initiatives that empower web3 builders, like the Stellar Astro Hacker House, Stellar Embark Accelerator, and share more on DraperU’s role in shaping the next generation of web3 founders. Insights will focus on the intersection of venture capital, education, and decentralized finance. Tim Draper, Founder, Draper Associates Daniel Casanas, SDF (moderator)

Questions asked in this interview

4
  1. 0:55Can you share with us a few experiences that you've had along the way that led you to becoming such a big proponent of blockchain so early on?
  2. 8:55Tim, can we reinstitute this kind of one Bitcoin per Draper U participant?
  3. 9:13... would you have, specific recommendations for them in terms of starting out on the right foot, such that they can eventually land in front of you as a kind of either a Draper U participant or a Series A participant or later on?
  4. 12:53How do you best view that happening?
Daniel Kasas 0:04 ↗
Tim, welcome, sir. Great, thanks, Daniel. Great to see you again. So, by way of introduction, hello everyone. My name is Daniel Kasas. I'm the head of Investments at the SDF. This afternoon, I am so fortunate and privileged for the opportunity to speak with Mr. Tim Draper, the visionary venture capitalist and massive proponent for blockchain innovation. So, welcome, Tim.
Tim Draper 0:30 ↗
Thanks for having me.
Daniel Kasas 0:35 ↗
So at the SDF, we are incredibly pleased that now through Draper University, Tim and his remarkable team are investing directly in startups building on Stellar. So we could not have asked for a better vote of confidence for Tim and his team. So thank you so much, Tim.
So Tim, your track record for being early on things is absolutely legendary. Can you share with us a few experiences that you've had along the way that led you to becoming such a big proponent of blockchain so early on?
Tim Draper 1:08 ↗
Sure. It was really kind of interesting because when, maybe it may have been 2004, and I was meeting with this guy from Korea, and the two of us were just talking, and he said that we have about — he said something like 80% of people from Seoul are playing this game, Lineage. And I said, wow, that's a lot of people playing Lineage. And he said, yeah. And then he said, yeah, I just bought my son a sword. And I said, how is that connected to this Lineage? He said, oh, it's in the game. I spent $40 for a virtual sword. A sword was just pixels on the screen. And something went off in my head that went, okay, fiat money for digital products, there could easily be digital money. And there were a bunch of games that all had digital money, and I kept my eye on it. And then I thought that digital money would happen as games started to make deals with each other, where you'd say you get farm gold for, you know, diamonds from another game or whatever it was. But then Bitcoin showed up, and it created a very secure — knock on wood — very secure system for storing value and a currency that kept perfect records. And so I got very interested, and I invested in something called CoinLab, and I also asked him to buy me $250,000 worth of Bitcoin. And that price was, at the time, he said he could get it to me for $4, and I thought, great. But all sorts of trouble went along with that. He stored the Bitcoin at Mt. Gox. Mt. Gox disappeared all the money, and we were sort of out of luck there. And then with CoinLab, there was a group that was supposed to deliver our chip that was going to mine for the Bitcoin, and it was delayed, and they front-ran us, and so it was chaos. And what I thought was, oh well, you know, I guess that was a good experiment. I was excited about digital money, but that experiment must have failed. But on the news that the Mt. Gox guys, the biggest exchange of Bitcoin in the world, disappeared a whole bunch of money, I thought Bitcoin would go to zero, but it only dropped about 15% in value. And since it only dropped about 15% in value, I thought, whoa, people must really need this. I mean, because if there's that kind of a risk to owning it, and so then I did a lot of deep research, and I figured out that yes, people were trying to buy guns and drugs with it, but it turned out all of them got caught because the blockchain keeps perfect records. But they were also using it for all sorts of interesting purposes, for remittances to their homes in different lands. The big corporations were using it to pay people who were not banked. People who were not banked were using it for their own economies, so they could be a part of the world economy. There were so many good applications that I got very excited, and I started to buy Bitcoin more, and I bought and bought and bought. And then there was a big auction that the U.S. Marshal's Office was holding, some from some confiscated currency or Bitcoin. And there were nine lots, and I thought, well, everybody around me is bidding, trying to figure out what kind of a discount to market that they're going to get these for. And I thought, well, if they're big, it doesn't really matter what I pay here, whether it's 5% higher or whatever. And so I was the only — I think I was the only one who bid over market for all nine lots, and I got them all. And I wasn't really expecting to make that big an investment, but after I had, I just sort of shrugged my shoulders and thought, great. And then Bitcoin went from where I bought at $632 down to about $180. And during that time, I started Draper University, and I started these classes, and I handed out a Bitcoin to each of the speakers — like these Casascius Bitcoins to each of the speakers who came to speak at Draper University. I thought they were kind of a nice little memento, and because they were worth about $180, I thought that was kind of a nice stipend for these people. And you know, of course, since then, people are saying, well, my speaking fee is now $66,000, but actually it's even more because those coins are rare and they're worth about $100,000 each. Then they have — it was pretty funny because I've run into two or three of them who said, I ripped my entire house apart looking for that damn thing and I couldn't find it, or I ripped my house apart and I found it. So that was the beginning. That class, that first class of Draper University had the benefit of not just our pledge, which is great, thank you for mentioning that, but also it had the benefit of me just saying, hey, let's bring in all the experts in Bitcoin and let these guys hear about it. And from that class, or from Draper University, came Quantum Tron. And one of these guys came up, gave me a big hug, and he said, thank you so much. And I said, for what? He said, because of you, I learned about Bitcoin, and I bought a bunch with my bar mitzvah money, and now I can pay to start my own business. And you know, my bar mitzvah money of $10,000 became one of —
Daniel Kasas 8:55 ↗
Tim, can we reinstitute this kind of one Bitcoin per Draper U participant? Because we have about — we have about 60 —
Tim Draper 9:06 ↗
You were paying me for this. Yeah, that did happen.

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APA

Draper, T. (2024, October 31). Empowering Web3 Builders to Transform Finance: A Fireside Chat with Tim Draper [Interview transcript]. Stellar Development Foundation. CEOInterviews.AI. https://ceointerviews.ai/interview/2961043/

MLA

Tim Draper. "Empowering Web3 Builders to Transform Finance: A Fireside Chat with Tim Draper." Stellar Development Foundation, 31 Oct. 2024. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/2961043/.

BibTeX
@misc{draper2024_2961043,
  author       = {Tim Draper},
  title        = {Empowering Web3 Builders to Transform Finance: A Fireside Chat with Tim Draper},
  howpublished = {Interview transcript, Stellar Development Foundation. CEOInterviews.AI},
  year         = {2024},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/2961043/},
  note         = {Speaker-attributed transcript with timestamps}
}