Tusk Ventures Partner CEO Bradley Tusk discusses innovation and tech companies on 'The Claman Countdown.'
Economist Steve Moore joins ‘The Big Money Show’ with his perspective on President-elect Trump’s economic agenda. #foxbusiness
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Questions asked in this interview
7
0:58The Biden administration cracked down on dealmaking, but will the regulatory roadblocks be removed?
1:13He's been an early investor in everything from Coinbase to Lemonade, Flutter, FanDuel, and you have so many irons in the fire when it comes to startups that you would love to see grow, maybe be acquired or go public, correct?
2:08You need to see one of your companies grow, right?
3:35Well, the top cop at the Federal Trade Commission, Lina Khan — you think she's going?
4:03They said if these two merge, then home health care — which is a huge and burgeoning area — will become way more expensive. How is that wrong?
4:59So what names do you see in your Tusk Ventures portfolio that could really do well for this administration?
It's exactly one week since Election Day, and Elon Musk's Tesla has been one of the brightest and clearest winners of the post-election Trump trade, up 30% over just the last five sessions as speculation grows that Donald Trump's second term could be very beneficial to the world's richest man.
But Tesla's not the only individual company shooting higher in the last five trading days. Let's look at Taser maker Axon Enterprise. It has rallied 35%.
And this is kind of outside the box thinking: two prison and detention center stocks that have contracts with Immigration and Customs Enforcement are also gaining way more than Tesla or Axon. We've got CoreCivic and GEO Group higher, with CoreCivic up 32% and GEO up 55%.
On Wall Street, they're rallying the troops as analysts expect the incoming administration to open the floodgates to the M&A market. The Biden administration cracked down on dealmaking, but will the regulatory roadblocks be removed?
Joining me now is Tusk Ventures' CEO Bradley Tusk. He's been an early investor in everything from Coinbase to Lemonade, Flutter, FanDuel, and you have so many irons in the fire when it comes to startups that you would love to see grow, maybe be acquired or go public, correct?
Yeah. I think ultimately, because there's been so little liquidity over the last three years, it has hindered innovation in the U.S. We have to be making money, sending it back to your investors. There has to be a flow. And when everything is at a total dead stop, which is where it's been for over three years now, we end up investing at a much slower pace, fewer new startups created, fewer survive into their next funding round, and as a result, companies that could potentially become great tech companies and employ a lot of people and pay a lot of taxes don't get off the ground.
But explain to viewers who don't understand how venture capitalists actually make their money: what do you need to see happen? You need to see one of your companies grow, right?
Ultimately, we only can make money if there's an exit, which means my company goes public — that's an IPO, which is wonderful, but it's one out of ten at best, or typically more likely acquired by a bigger company, whatever. That's how you make money. That's how I make money for my investors, and that creates the flywheel to put money back into the tech ecosystem so more startups can be created. So when there's a total roadblock on the whole thing, everything grinds to a halt.
The anticipation is that Donald Trump and his administration will not be, you know, as much of a stumbling block for any kind of merger or acquisition than the Biden administration has been. I mean, Goldman Sachs is projecting mergers and acquisitions could see something like a 20% pop because of what they see as a much friendlier regulatory environment.
Yeah. I mean, not just that, it could even be better. I don't want to be wildly optimistic, but I think the IPO market could open up, and that could start to see a lot of liquidity, a lot more M&A deals, a lot of tech sectors like crypto and fintech, interest rates keep getting cut. So all the conditions seem to be coming together for a really strong period of venture capital, which is great for tech and the economy.
Tusk, B. (2024, November 12). All conditions are coming together for a strong period in venture capital, Bradley Tusk says [Interview transcript]. Fox Business. CEOInterviews.AI. https://ceointerviews.ai/interview/3054639/
MLA
Bradley Tusk. "All conditions are coming together for a strong period in venture capital, Bradley Tusk says." Fox Business, 12 Nov. 2024. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3054639/.
BibTeX
@misc{tusk2024_3054639,
author = {Bradley Tusk},
title = {All conditions are coming together for a strong period in venture capital, Bradley Tusk says},
howpublished = {Interview transcript, Fox Business. CEOInterviews.AI},
year = {2024},
month = {nov},
url = {https://ceointerviews.ai/interview/3054639/},
note = {Speaker-attributed transcript with timestamps}
}
