Shervin Pishevar is one of the nation’s leading venture capitalists. With his specialty in the tech sector, Shervin Pishevar has financed some of the top brands in the tech industry today. Some of the companies that he and his firm, Investment company, have been responsible for creating include such names as Uber, Airbnb and Virgin Hyperloop. Shervin Pishevar has also formed a number of companies as a solo entrepreneur, including Social Gaming Network and Ionside.
When he isn’t fully consumed with creating some of the top companies in the world, Shervin Pishevar often takes to the social media sphere, tweeting to his more than 100,000 followers on everything from baseball to the state of the U.S. economy. Many of Pishevar’s tweets contain highly valuable insights. And as one of the most successful entrepreneurs and venture capitalists in the country, his opinions on subjects that he knows well are always worth considering.
One of the topics on which Shervin Pishevar has expounded at length is the area of finance. In particular, Pishevar has discussed the fact that innovation in the financial space doesn’t mean the same thing that it does elsewhere.
With many of the projects on which Pishevar has worked in the tech industry, innovation usually refers to the creation of new and groundbreaking technologies that create huge value in the marketplace and solve real-world problems. However, Pishevar says that innovation in finance often reduces to little more than creative ways to repackage debt. Restated, financial innovation is about hiding risk because debt always entails risk. And Pishevar says that this hiding of risk can be hugely useful to fund managers who are able to participate in upside earnings while not putting any of their own funds at substantial risk.
Pishevar likens such payment schemes, which prevail throughout Wall Street, to simple principal-agent scams. He says that fund managers have every incentive to maximize risk so that their chance of a big payoff is also maximized. He says that these fund managers have little incentive to mitigate downside risk because there are few consequences for them personally if a fund loses huge.
Shervin Pishevar used social media to express the deep concerns he has about the US economic situation in February 2018. He tweeted 50 points in 21 hours addressing immigration, bitcoin, bonds, and more. He had some grim predictions for the stock market, big US companies, and big funds.
The last time Shervin Pishevar used Twitter, he announced that he would be resigning from Sherpa Capital. This is a venture capital fund that invested in Munchery, Uber, and Airbnb. He got his start in the Silicon Valley area and has seeded at least 60 companies. He has been recognized for some of his work, even being awarded the Ellis Island Medal of Honor in the year 2016.
One of the concerns that Shervin Pishevar expressed in his Twitter rant had to do with Silicon Valley no longer being the modern Rome that it once was. It has lost its exclusivity and no longer is the stronghold on ideas and talent. He mentioned that the US is building physical and cultural walls to keep immigrant talent out, but he says that this talent does not need to come to the US anymore. Entrepreneurship is a movement that has gone viral. One of the examples that he gives is of individuals in China building a train station in less than 10 hours.
He had particularly ominous predictions for the stock market, saying that he expected it to go down an aggregate 6,000 points in 2018. He also had dark predictions for big companies like Google, Microsoft, and Apple. These big companies are able to buy out small startups, which is bad for the overall economy. He talks about how they should fall because that is the way evolution works.
Shervin Pishevar mentioned that currency is the ultimate app. An entrepreneur can raise capital in any way they want using any kind of currency. Since small companies can use unique capital, they can spur the economy onward. This means that governmental and financial institutions are facing a reckoning of irrelevance. The shift has to do with a revolution in stateless digital currencies. According to Shervin Pishevar, this will be unleashed over the next few decades.