In a recent interview, Keith Rabois, a general partner at Founders Fund and CEO of OpenStore, discussed various topics ranging from venture capital, his newest investment, and his preferred presidential candidates. Rabois, who is based in Miami, is known for his active involvement in the startup ecosystem and his expertise in the marketplace space. In the interview, he shared his views on the current state of venture capital, his recent investment in Traba, a jobs marketplace, and his thoughts on Marc Andreessen’s latest manifesto.
Key Takeaway
In this interview, Keith Rabois provides insights into the current state of venture capital, discusses his latest investment in Traba, and shares his thoughts on politics and the future of technology. His pragmatic approach to fund size, confidence in marketplaces like Traba and Faire, and political endorsements demonstrate his expertise and opinions in these respective fields.
The Decision to Cut the Fund
When asked about the size of the fund he is currently investing, Rabois revealed that they had initially announced a large amount but later decided to cut it in half. The decision came after realizing that generating venture returns with a fund of that size would be challenging in the current market environment. This move demonstrates a pragmatic approach to ensure the fund’s success and maximize returns for investors.
Founders Fund Portfolio: Excitement Over Traba
Rabois expressed his enthusiasm for Traba, a jobs marketplace connecting hourly workers with fulfillment centers. Traba focuses on the “light industrial” sector, which has a massive market size of approximately $50 billion annually. The unique value proposition that Traba offers in this space, particularly in terms of variable staffing during peak seasons, caught Rabois’ attention. The fact that Founders Fund has invested in Traba multiple times, with a significant increase in valuation each time, speaks to the company’s potential and Rabois’ confidence in its future success.
Marketplaces and Faire’s Soaring Valuation
Rabois has a strong interest in marketplaces, evident from his involvement with Faire, a marketplace connecting indie brands and retailers. Faire’s valuation has skyrocketed from $7 billion to $12.4 billion in a short period. Rabois believes Faire will be worth tens of billions of dollars in the future, highlighting the founders’ capabilities, impressive metrics, and substantial market opportunities. Despite the current challenging market conditions, Rabois does not foresee a down round for Faire before it goes public.
Perspective on Marc Andreessen’s Manifesto
Regarding Marc Andreessen’s latest manifesto, Rabois appreciates its direction and reminds us of the importance of technology and its impact on the future. As a firm believer in the potential of technology, Rabois finds hope in a tangible document like Andreessen’s manifesto that rallies people together and reminds them of their shared vision. He emphasizes that while the media often portrays a negative outlook, it is crucial to remember the multitude of individuals who believe in and drive technological advancements.
Political Backing: Ron DeSantis and Nikki Haley
As a vocal figure in the political landscape, Rabois expressed his support for Governor Ron DeSantis of Florida, whom he considers the best governor in the country and is thrilled to have in office. Additionally, Rabois is endorsing Nikki Haley for President, stating that she is a phenomenal candidate with a bright future, and he believes she would easily defeat President Biden if nominated. Rabois also mentioned the restrictions on venture capitalists donating to state officials, preventing him from financially supporting Governor DeSantis.
The View on Vivek Ramaswamy
Rabois shared his thoughts on entrepreneur Vivek Ramaswamy, characterizing him as a savvy businessperson but dismissing his political understanding. While acknowledging that Ramaswamy has some valid domestic policy ideas and cultural critiques, Rabois criticized his lack of foreign policy knowledge, comparing it to that of a two-year-old. Rabois expressed concerns about Ramaswamy’s uneducated mistakes and highlighted the importance of deep understanding and seriousness in the realm of politics.
