World News
Why generalist investors will always win on August 18, 2023 at 12:00 pm
Year after year, vertical-specific investors become increasingly central to the venture world.
Andreessen Horowitz’s American Dynamism practice has carved out a remarkable brand in the “world of atoms.” Paradigm first made a name for itself with bold crypto bets. Numerous funds are currently spinning up to take advantage of the AI gold rush specifically.
It’s understandable: As the venture world becomes increasingly competitive and rich, investors need to build their teams (and brands) to be as targeted and high-impact for entrepreneurs as possible. Choosing a vertical makes commanding capital from LPs more straightforward as well.
And this strategy has worked. The investors mentioned above are often at the top of founders’ fundraising lists. It’s no surprise that other firms feel increasingly pressured to show off their expertise in various spaces by publishing market maps and investment theses.
Generalist investing has rightfully been (and will always be) the primary mode of VC.
Is this trend the future? Will every possible startup soon have an “expert” VC to seek out in their space? I think not; generalist investing has rightfully been (and will always be) the primary mode of VC.
Let’s get a few assumptions out of the way. “Generalist” investing does not mean lack of technical knowledge. It does not mean a lack of preference of some verticals over others. And it certainly does not mean unsophistication in their network.
The eternal relevance of generalism in venture comes down to two simple and easy-to-prove facts: (1) Revolutionary tech companies are thematically unpredictable, and (2) transcendent founder talent is still needed even in the most fruitful spaces.
Looking empirically at some of the greatest investments of all time, it’s difficult to see how concentrating on one theme would have converted to a winning deal. Google was following several preexisting search engines. Facebook had already lost to MySpace as far as anyone could tell. UberCab was a small market, and ride-share wasn’t envisioned from the start. Clearly, the historical trends around consumer internet, social media, and the gig economy were unseeable at the time, even if hindsight feels obvious.
I don’t buy that any forward-looking trend today is more than directionally right. The green tech theses of the 2000s yielded almost nothing at all. The “sharing economy” themes of the 2010s never quite replicated after Uber/Lyft/Airbnb created the concept. This sets a high burden of proof for any conception of vertical-specific investing in the 2020s.
Even today, it’s unclear which vertical-specific firms have capitalized on the emerging winners in the AI space — has OpenAI or Scale led to a firm-returning (not just fund-returning) outcome for an AI-focused investor as much as it has for generalist investors?
But of course it’s easy to paint an extreme picture. In reality there are plenty of excellent firms that nail their specialized vertical. In any case, the problem of “founder picking” persists. And it’s quite the challenging problem.
While some spaces like healthcare or defense may have returns 2x or even 10x greater than other verticals, the best startup within those spaces could have returns 100x greater than its more typical counterparts. The talent of founders and outcomes of their startups have unimaginably more variance than any other dimension. Thus emerges the paradox: The specialist investor must have the same eagle eye for outliers as the generalist investor, but with narrower aperture.
And if, as a firm, you are able to cultivate that eye for outlier founders, why not apply that rare skill across the entire opportunity set? The next Google might be somewhere you don’t expect.
Now, readers may wonder about adding value to founders and winning deals while lacking any sort of specific expertise. How can a generalist compete with a specialist when it comes to customer introductions, or tactical advice?
My answer is simple: We can’t, but we don’t need to. The specific product and marketing challenges faced by entrepreneurs tend to be far too specific for an outsider to properly help. Introductions in “supply chain” are insufficient compared to introductions to “decision makers at roofing supply distributors with $100 million to $500 million revenue who use Epicor as their system of record” as one portfolio company recently requested. Which VC has a roster like that lined up and ready to go?
Ultimately my job as a VC is selling a few simple products: cash, trusted reputation, and access to as much downstream capital as possible. And I can do that just as well as anyone who invests in only AI.
To be clear, the venture world is evolving fast, and specialist investors play a valuable role. But I urge my generalist friends to be proud. With a radical focus on outliers wherever they may be, history is on our side.
How can a generalist compete with a specialist when it comes to customer introductions, or tactical advice? We can’t, but we don’t need to.
News
US May Completely Cut Income Tax Due to Tariff Revenue

President Donald Trump says the United States might one day get rid of federal income tax because of money the government collects from tariffs on imported goods. Tariffs are extra taxes the U.S. puts on products that come from other countries.

What Trump Is Saying
Trump has said that tariff money could become so large that it might allow the government to cut income taxes “almost completely.” He has also talked about possibly phasing out income tax over the next few years if tariff money keeps going up.
How Taxes Work Now
Right now, the federal government gets much more money from income taxes than from tariffs. Income taxes bring in trillions of dollars each year, while tariffs bring in only a small part of that total. Because of this gap, experts say tariffs would need to grow by many times to replace income tax money.
Questions From Experts
Many economists and tax experts doubt that tariffs alone could pay for the whole federal budget. They warn that very high tariffs could make many imported goods more expensive for shoppers in the United States. This could hit lower- and middle‑income families hardest, because they spend a big share of their money on everyday items.
What Congress Must Do
The president can change some tariffs, but only Congress can change or end the federal income tax. That means any real plan to remove income tax would need new laws passed by both the House of Representatives and the Senate. So far, there is no detailed law or full budget plan on this idea.

What It Means Right Now
For now, Trump’s comments are a proposal, not a change in the law. People and businesses still have to pay federal income tax under the current rules. The debate over using tariffs instead of income taxes is likely to continue among lawmakers, experts, and voters.
News
Epstein Files to Be Declassified After Trump Order

Former President Donald Trump has signed an executive order directing federal agencies to declassify all government files related to Jeffrey Epstein, the disgraced financier whose death in 2019 continues to fuel controversy and speculation.
The order, signed Wednesday at Trump’s Mar-a-Lago estate, instructs the FBI, Department of Justice, and intelligence agencies to release documents detailing Epstein’s network, finances, and alleged connections to high-profile figures. Trump described the move as “a step toward transparency and public trust,” promising that no names would be shielded from scrutiny.
“This information belongs to the American people,” Trump said in a televised statement. “For too long, powerful interests have tried to bury the truth. That ends now.”
U.S. intelligence officials confirmed that preparations for the release are already underway. According to sources familiar with the process, the first batch of documents is expected to be made public within the next 30 days, with additional releases scheduled over several months.
Reactions poured in across the political spectrum. Supporters praised the decision as a bold act of accountability, while critics alleged it was politically motivated, timed to draw attention during a volatile election season. Civil rights advocates, meanwhile, emphasized caution, warning that some records could expose private victims or ongoing legal matters.
The Epstein case, which implicated figures in politics, business, and entertainment, remains one of the most talked-about scandals of the past decade. Epstein’s connections to influential individuals—including politicians, royals, and executives—have long sparked speculation about the extent of his operations and who may have been involved.

Former federal prosecutor Lauren Fields said the release could mark a turning point in public discourse surrounding government transparency. “Regardless of political stance, this declassification has the potential to reshape how Americans view power and accountability,” Fields noted.
Officials say redactions may still occur to protect sensitive intelligence or personal information, but the intent is a near-complete disclosure. For years, critics of the government’s handling of Epstein’s case have accused agencies of concealing evidence or shielding elites from exposure. Trump’s order promises to change that narrative.
As anticipation builds, journalists, legal analysts, and online commentators are preparing for what could be one of the most consequential information releases in recent history.
Politics
Netanyahu’s UN Speech Triggers Diplomatic Walkouts and Mass Protests

What Happened at the United Nations
On Friday, Israeli Prime Minister Benjamin Netanyahu addressed the United Nations General Assembly in New York City, defending Israel’s ongoing military operations in Gaza. As he spoke, more than 100 delegates from over 50 countries stood up and left the chamber—a rare and significant diplomatic walkout. Outside the UN, thousands of protesters gathered to voice opposition to Netanyahu’s policies and call for accountability, including some who labeled him a war criminal. The protest included activists from Palestinian and Jewish groups, along with international allies.

Why Did Delegates and Protesters Walk Out?
The walkouts and protests were a response to Israel’s continued offensive in Gaza, which has resulted in widespread destruction and a significant humanitarian crisis. Many countries and individuals have accused Israel of excessive use of force, and some international prosecutors have suggested Netanyahu should face investigation by the International Criminal Court for war crimes, including claims that starvation was used as a weapon against civilians. At the same time, a record number of nations—over 150—recently recognized the State of Palestine, leaving the United States as the only permanent UN Security Council member not to join them.
International Reaction and Significance
The diplomatic walkouts and street protests demonstrate increasing global concern over the situation in Gaza and growing support for Palestinian statehood. Several world leaders, including Colombia’s President Gustavo Petro, showed visible solidarity with protesters. Petro called for international intervention and, controversially, for US troops not to follow orders he viewed as supporting ongoing conflict. The US later revoked Petro’s visa over his role in the protests, which he argued was evidence of a declining respect for international law.

Why Is This News Important?
The Gaza conflict is one of the world’s most contentious and closely-watched issues. It has drawn strong feelings and differing opinions from governments, activists, and ordinary people worldwide. The United Nations, as an international organization focused on peace and human rights, is a key arena for these debates. The events surrounding Netanyahu’s speech show that many nations and voices are urging new action—from recognition of Palestinian rights to calls for sanctions against Israel—while discussion and disagreement over the best path forward continue.
This episode at the UN highlights how international diplomacy, public protests, and official policy are all intersecting in real time as the search for solutions to the Israeli-Palestinian conflict remains urgent and unresolved.
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