Founder of Draper Associates, Draper Associates
Tim Draper on Tesla, Best Bay Area Pizza, Changing the World
www.bayareahq.com At Techmanity 2014 in San Jose, October 1, 214, Tim Draper, featured speaker, talks to Bay Area HQ's Rico on Tesla, how to change the world, and where to get the best pizza in the Bay Area.
About Tim Draper
Tim Draper, founder of Draper Associates, has been active in media appearances and events, discussing his investment philosophy and his views on Bitcoin, SpaceX, and entrepreneurship. In interviews, Draper described himself as an early investor in SpaceX, stating that the company is "going to take us to Mars." He has reiterated his prediction that Bitcoin will reach $250,000, arguing that it is "better, faster, cheaper than the dollar" and will "eclipse fiat currencies." Draper has advised families to hold six months' worth of Bitcoin, businesses to hold two to four weeks of payroll in Bitcoin, and governments to hold Bitcoin as a hedge against hyperinflation. He has also stated that "if you're a fiduciary... and you don't own Bitcoin, you're being irresponsible." Draper has also commented on the broader investment landscape, stating that "every 20 years, seven out of the 10 biggest companies in the world turn over." He has discussed his criteria for identifying entrepreneurs, saying he looks for founders who are "challenging the status quo" and have a "burning desire" that makes them proceed regardless of criticism. Draper has also promoted Draper University, describing it as a "human accelerator" that turns "ordinary people into heroic entrepreneurs." He has criticized what he called "socialist countries," stating they have "weak leaders" and "flatline" economies, while arguing that "free countries and the capitalist countries grow at extraordinary rates."
Transcript (19 segments)
✨ AI-enhanced transcript with speaker attribution
R
Rico0:04
Hey, it's Rico from Bay Area HQ, standing next to Silicon Valley legend, as well as venture capitalist and founder of Heroes University in San Mateo, Tim Draper. A pleasure.
T
Tim Draper0:14
Great legend. Sounds like I'm dead, you know? Listen, you said heroes are from the past, superheroes live on. You are... how about superheroes? Like that? That's a little better. Superhero's better. Oh yeah, I'll go with that. Superhero Tim Draper, folks. Great pleasure to be on. Thank you very much.
R
Rico0:30
Now, Tech Manatee, we're here where tech meets humanity. And you have famously said that you will not invest in anything unless it's trying to change the world. So this is a perfect place for you to be. How does Tech Manatee mean for you?
T
Tim Draper0:44
Well, it's exciting that they're putting those two things together. It's amazing what some of these entrepreneurs from Silicon Valley have been able to do for the world. Think of what Google has done to spread information around the world, or what Hotmail, any of these email services have been able to do to lower geographic borders and allow us all to communicate for free. Yeah, and Skype, and make them all for free. And now with Tesla, one of our investments, they've been able to make it so that we can have a car and it's not a gas guzzler. I mean, it's pretty amazing what these guys have done for the world. And you can drive in the carpool lane in a Tesla. Yes, that actually does save you some time because our infrastructure has not been well taken care of here in California. And if you're on the 405 or the 101, you can be really stuck in traffic. But with a Tesla, you can zip around.
R
Rico1:43
I'm glad you brought up Tesla because, since you are an investor in the company, can you get me somewhere higher on the list? Because I'm in the market for a Tesla right now and it's like three to six months I gotta wait. Aren't they the best? They are the best car and the coolest car on the road. Are you trying to get the S or the new... whatever they'll give me with the wing? There's a great one with gull wings that pops up and it's an SUV, I guess. Yeah, I've heard about it. Family car. But still just as fast as the other one and just as much fun. So sign me up, I'll take you.
T
Tim Draper1:54
Absolutely.
R
Rico2:15
All right, so Heroes University is in San Mateo, and I heard it's actually called Draper University of Heroes. Draper University of Heroes, got it. And you are basically teaching people how to become great venture capitalists in the future. Talk to us about that and what kind of classes you have going on there at Draper University.
T
Tim Draper2:33
That's one of the things, but generally we're trying to encourage heroism, which means we want to get people who have a spark in their eye, who might want to be great entrepreneurs or revolutionaries or artists or whatever, and to encourage that spark. A lot of people are reticent to take that first step and do something extraordinary. It feels scary, dangerous for them. We are trying to encourage them by saying, look, this is how you become a hero, and we're going to take you through a process that by the end you will be a hero and you will be willing to take those risks that are necessary to really make a big impact on the world.
R
Rico3:14
See, that's inspirational. And you also said something on stage during your speech that was also very inspirational as well. You said, when people tell me I can't, I figure out well why can't, or how, and would I, how would I? And that is a question I don't think a lot of people ask themselves. I think when they hear can't, they stop.
T
Tim Draper3:32
Yeah, I know. And that's actually a new way of thinking, and it's kind of an exciting way of thinking. And it's one where you kind of go, okay, well how would I? And I know Elon Musk must think this way because he says we're going to Mars, but then all of the people around him are going, well how are we going to get to Mars? And start thinking, hey, how are we going to get to Mars? Or, you know, now we want to transform the financial industry with Bitcoin. Yeah, okay, so people say, oh you can't transform the industry, the bankers are too entrenched and they're not going to change, and this is the way it's going to be. But then you kind of say, well how would we? And then you have 500 companies out there creating new Bitcoin opportunities, and it's going to start changing the way we do all of our banking and our accounting and our finance and change venture capital.
R
Rico4:29
Unless it changes the world, you're not interested. And that is an amazing bar to set, because really, to change the world is something that not everyone can do, but everyone can do if they want to or try hard enough.
T
Tim Draper4:40
I think it's important to just start thinking about it. I mean, think of all the changes that have happened so far and what's been transformed by the internet. Think of all the communications, information, media that's been created through this internet. Well, the same kind of thing can happen in electric cars with Tesla, and the same kind of thing can happen with Bitcoin to commerce and business and finance. All of these big industries that we think should never be changed are going to change. They're going to change faster than we think. Also, imagine 40 years ago, people thought the post office was the post office, nobody was ever going to change it. Or the phone company was only one company, AT&T, and they had to break up into six companies or something. And then suddenly that competition created a lot better service for all of us at a better price. Competition like T-Mobile, which we're standing in front of right now.
R
Rico5:42
Whoever we stand in front of. Now, you are the guy that people tell ideas to, sometimes outlandish ideas that no one's ever thought of, and you are expected to make a decision on whether or not this idea can become huge. Is there an idea that's come across your desk that you're just like, this person is crazy and that'll never work?
T
Tim Draper6:04
Oh well, I never say it'll never work because I've been proven wrong so many times. There are some really interesting ideas that are really moving ahead and they will get there. One is Cruz Automotive, which is now doing a self-driving add-on to your car. That could be quite... that could be Knight Rider, you know? In 2014, interesting. And then these smart contracts that make it so that people will never need a lawyer or an accountant again because the contract's built into the software and built into the blockchain, just the way Bitcoin is operated. It's very secure and it's built into the blockchain, so that when an event happens, all of the money or all of the value gets spread wherever it was supposed to go, and there's no discussion. And that's pretty exciting. Every entrepreneur knows that lawyer fees are one of the biggest and hardest checks to sign at the end of the month, and they come so big and so early that it can really take the wind out of your sails as an entrepreneur.
R
Rico7:17
Well, we're about to wrap up, but you know, we are BayAreaHQ.com. We focus on events, lifestyle, pop culture that happens in the Bay Area. You are from the Bay Area, you live in the Bay Area, you live in Menlo Park or nearby, right? And I used to spend some time off of Santa Cruz. Have you had the fish and chips over at the famous fish and chip spot on El Camino?
T
Tim Draper7:37
Well, what about the fish and chips they used to have? See, I'm much older than you. There was an H. Salt Esquire that was just over the top. Yeah, I do love going to the Goose. My first drink was at Rudy's.
R
Rico7:52
Nice, nice. University Ave. And there are a lot of good spots around there. You know what else is really good? At Swisha House, they have this sushi that is flavored and they put all sorts of strange things around it. It turns out that's really incredible.
T
Tim Draper8:12
Well then let's go one day.
R
Rico8:16
Investor, no. There's a restaurant called Vesta that is over the top. Best pizza you will ever have. It's very nice, unbelievable. After this airs, you will never have to pay for a meal there, hopefully. Tim, thank you so much.