Holiday Special 2022

In this special holiday episode of "Acquired," co-hosts Ben Gilbert and David Rosenthal reflect on the show's growth, favorite episodes, and personal milestones in 2022. Ben shares his experience of getting married and the joy of curating music for the occasion, while David discusses adjusting to parenthood and the decision to continue living in San Francisco. They also explore their tech lineups, with Ben returning his iPhone 14 Pro for the 13 Mini due to size and weight preferences, and both praising the Apple Watch Ultra for its features. The hosts delve into their top book recommendations, with Ben highlighting "Project Hail Mary" and "The Psychology of Money," and David enjoying "Made in Japan" and "Made in America." They discuss favorite podcasts, including "SmartLess" and "Waveform," and mention useful apps like "Flighty" for real-time flight information. Lastly, they recommend TV shows and movies, such as "Andor," "White Lotus," and "Everything Everywhere All at Once," and share their appreciation for places visited this year, including Capri for Ben and Santa Barbara for David. The episode concludes with heartfelt gratitude to the "Acquired" community for their continued support.

• Ben Gilbert and David Rosenthal introduce themselves and the podcast "Acquired".
• Ben is the co-founder and managing director of Seattle-based Pioneer Square Labs and PSL Ventures.
• David is an angel investor based in San Francisco.

"I'm Ben Gilbert, and I am the co-founder and managing director of Seattle-based Pioneer Square Labs and our venture fund, PSL Ventures." "And I'm David Rosenthal, and I'm an angel investor based in San Francisco."

The quote introduces the hosts of the podcast and their respective roles in the technology and investment sectors, setting the stage for the topics they will discuss.

• The hosts plan to recap the events of 2022 for their show, technology, and their personal experiences.
• They will discuss what's ahead in 2023 and have some additional fun segments planned.

"We've got a little agenda. We're going to recap 2022 for the show, for tech, for us, talk a little bit about what's ahead in 2023."

The quote outlines the structure of the episode, indicating a reflection on the past year and a look toward the future within the tech industry.

• Pilot is a sponsor, offering accounting, tax, and bookkeeping services for startups and growth companies.
• The hosts discuss the philosophy of outsourcing non-core activities, referencing Jeff Bezos's axiom about focusing on what makes a company's product unique.

"And speaking of Bezos, we talk all the time on Acquired of Jeff's AWS inspired axiom that startups should focus on what makes their beer taste better."

The quote highlights the importance of startups focusing on their unique value proposition and outsourcing other tasks to specialists like Pilot, which is a practice endorsed by successful business leaders like Jeff Bezos.

• They reminisce about episodes from 2022, starting with one about Taylor Swift in January.
• They discuss the unprecedented demand for Taylor Swift's concert tickets and the challenges of meeting such demand.

"We started the year with Taylor Swift. Isn't that crazy that that was like this year? January? That feels like three years ago."

The quote reflects on the passage of time and the memorable episodes from the year, setting the stage for a deeper discussion on the impact of technology on the music industry and consumer demand.

• The hosts explore how the Internet has created larger markets and demand, using Taylor Swift as a case study.
• They discuss the challenges of ticket pricing and balancing revenue with fanbase nurturing for long-term careers.

"The thing about the Internet is the markets are bigger than you can ever imagine. The demand is larger than you can ever imagine."

The quote captures the essence of how the Internet has expanded the scope of markets and demand, particularly for mainstream figures like Taylor Swift, and how it has transformed the way products and services are distributed and consumed.

• The hosts contemplate the potential loss of Twitter and its role in providing real-time public consensus and trends.
• They speculate on alternative platforms like TikTok for gauging public interest but acknowledge the efficiency differences between text and video content.

"How will I know what the general consensus is around something? How will I know that the tenor has shifted and this thing is not interesting anymore and that thing is interesting."

The quote underscores Twitter's significance in understanding public discourse and the challenges that would arise if such a platform were to disappear, highlighting the unique role of social media in contemporary communication.

• The hosts reflect on the Sony episode, noting its unexpected depth and the company's diverse and balanced business units.

"It has it all. I mean, it has the genius founder. It has the probably the most adversity that we've ever talked about in any founding story in all of acquired."

The quote praises the Sony episode for covering a wide range of topics, from the company's founding to its resilience and diversity, which made it a standout episode for the hosts.

• They discuss the Nvidia episode, highlighting Jensen Huang's multiple bet-the-company moments that paid off significantly.

"The most interesting about the Nvidia story, I think, is Jensen bet the company three separate times and truly bet the company, like, if this initiative fails, it will go to zero."

The quote emphasizes the high-stakes decisions made by Nvidia's leadership, which resulted in the company's success in various technological advancements, showcasing the risks and rewards in the tech industry.

• The Amazon episode, including the precursor Walmart episode, is discussed, emphasizing Walmart's role in transforming retail through technology.

"In order to understand the role of retail in America today, you sort of first need to understand that everything we think of as a retailer or most things we think of as retailer, are actually discounters."

The quote draws attention to the foundational role of Walmart in shaping modern retail, which is crucial for understanding Amazon's subsequent impact on the industry, signifying the interconnectedness of business histories and strategies.

• The hosts talk about potentially spacing out episodes on big tech companies to maintain diversity in their content and keep listeners engaged.

"I think we should do one of these big tech companies a year, not even a season. I think one a year."

The quote reveals the hosts' strategic approach to content planning, aiming to balance in-depth coverage of major tech companies with a variety of topics to cater to their diverse audience interests.

• They express regret for featuring Sam Bankman-Fried from FTX on the show, given the company's recent collapse and impact on listeners.

"So sorry if you were on the fence on FTX and you were like, I don't know if this thing's legit or not, and then acquired, legitimized that for you."

The quote conveys the hosts' sense of responsibility for the content they produce and the potential influence it may have on their audience's decisions, particularly in light of the FTX controversy.

• The hosts end by discussing the evolution of the Acquired podcast and their focus on creating evergreen content that adds unique value to the tech discourse.

"I don't know that that's where Acquired shines because we try to make evergreen pieces that sort of stand the test of time."

The quote reflects on the podcast's identity and mission, emphasizing their commitment to producing content that remains relevant and valuable over time, rather than chasing the latest news cycle.

• Ben Gilbert and David Rosenthal reflect on their experience with Benchmark, expressing it as a "pinch me" moment.
• They discuss the evolution of the Acquired podcast format, finding their ideal approach in storytelling with protagonists.
• The format involves detailed research and narrative storytelling that is unique to their platform.

I mean that like a pinch me moment for you and I both.

This quote from Ben Gilbert captures the significance of their experience with Benchmark, highlighting it as a momentous occasion for both hosts.

I think we should lean into that format as much as possible going forward of we tell a story and then we have the protagonists on.

David Rosenthal suggests that their successful format of storytelling followed by interviews with key figures should be a continued approach for their podcast.

• The hosts discuss their extensive preparation for interviews and how it differentiates them from other interviewers.
• They mention other great interviewers like Ben Thompson and Patrick O'Shaughnessy, recognizing that their unique approach with Benchmark is a differentiator.
• They delve into the concept of strategy versus operational efficiency, citing Michael Porter's work on competitive strategy.

Which is a tactic, not a strategy.

David Rosenthal points out that while extensive preparation is a tactic to improve interviews, it's not a long-term strategic advantage.

But what we did with Benchmark, that's something that only we can uniquely do.

Ben Gilbert emphasizes that their approach with Benchmark is unique to their capabilities and format, setting them apart from others.

• The discussion centers around the concept of trade-offs in strategy, particularly in the context of their podcast.
• They reference Southwest Airlines as an example of a company with a clear strategy based on trade-offs.
• The hosts consider how their podcast's format and business decisions enable them to create unique content.

And I think the lean into the upsides thing for us is if you're doing a super high velocity show benchmark is probably not going to feel like you're giving them a unique spotlight, in a way, to do something like that.

David Rosenthal explains that their podcast's format allows them to give guests a unique spotlight, which may not be possible with a high-velocity show format.

But often that low hanging fruit is counter to your strategic trade offs.

Ben Gilbert discusses the temptation of pursuing easy opportunities but recognizes that they may conflict with their strategic trade-offs.

• The hosts reflect on the impact of their content approach on guest engagement and listener trust.
• They share their experience of how creating detailed content on a topic changes the tenor of conversations with guests.
• The discussion also touches on the importance of proving their seriousness about a topic through their podcast format.

And by us having the format of you and I just doing these deep dives on companies, that is a differentiated strategy than an interview show.

Ben Gilbert highlights how their deep-dive format on companies sets them apart from typical interview shows, offering a unique strategy.

There's an element, in the case of the benchmark episodes, it actually was all pre planned in advance that we were going to do the episode just us, and then we were going to do the dinner with them that was planned before we even released the first episode.

David Rosenthal notes that their detailed planning and format allow for a more meaningful engagement with guests and topics.

• The hosts discuss a listener email about Enron Oil and Gas, reflecting on the company's legacy and rebranding.
• They explore the fragmentation of the oil and gas industry into upstream, midstream, and downstream sectors.
• The conversation includes insights into the rebranding of Arthur Andersen's consulting arm to Accenture and the preservation of a tax organization now called Andersen Tax.

On the Enron one. I neglected to point out that there is a company today called Enron Oil and Gas. That's like an $80 billion company, publicly traded as EOG.

Ben Gilbert acknowledges an oversight in a previous episode about the existence of Enron Oil and Gas, illustrating the ongoing impact of the Enron legacy.

It is actually called EOG Resources. Like the name of the company is EOG.

David Rosenthal clarifies the current name of the company that originated from Enron's upstream business, highlighting the significance of company rebranding.

• The hosts discuss the trade-offs they make in podcast production, such as episode frequency and length.
• They consider the implications of inviting more hosts or creating spinoff shows, emphasizing the importance of maintaining the purity of their content.
• The conversation touches on the strategic decisions they make to keep their content aligned with their vision and audience expectations.

A common wisdom is to release content every week. We don't do that. That has downsides.

Ben Gilbert acknowledges the conventional wisdom of frequent content release but notes the downsides and their decision to prioritize deep research over frequency.

It's one of those things where it's like, sure, you could make more money doing that, but it goes in the too hard pile.

David Rosenthal explains their decision to avoid certain opportunities that do not align with their strategic trade-offs, even if they could be financially beneficial.

• The hosts share their personal growth in embracing trade-offs and how it has influenced their content and business decisions.
• They discuss the challenges of balancing work with personal life, such as parenthood, and how it affects their strategic choices.
• The conversation reveals how their personal values and priorities shape the direction of their podcast.

As I become older, though, I completely have shifted and embraced trade offs.

David Rosenthal reflects on his evolving perspective on the importance of trade-offs as he has grown older and taken on more responsibilities.

The only person I feel bad about with it is you bear a huge brunt of that. Thank you.

Ben Gilbert expresses gratitude to David for bearing the brunt of his decision to embrace trade-offs, highlighting the impact on their working relationship.

• The hosts discuss the complexities of producing live podcast events and the trade-offs involved.
• They recount memorable live events from the past year, such as the arena show and international live shows.
• The conversation explores the balance between creating special experiences for live audiences and maintaining the quality of the podcast for the broader listener base.

Some of the live shows we've done are the most special experiences of the year.

David Rosenthal acknowledges the unique and memorable experiences that live shows provide, despite the challenges they pose to production.

For all those people, it's a worse product. But for the people in the room. That's what we're optimizing for in the moment.

Ben Gilbert discusses the trade-off between optimizing for the live audience experience and the quality of the podcast for listeners who engage with the content afterward.

• The hosts reflect on the growth of their podcast audience and the factors contributing to it.
• They discuss the importance of maintaining the quality of their audience and the mix of listeners as they grow.
• The conversation touches on the relationship with sponsors and how growth affects their business model and content strategy.

We pretty amazingly doubled our audience again this year, which has basically been true every year since we started seven years ago.

David Rosenthal shares the consistent growth trajectory of their podcast, emphasizing the significance of continued audience expansion over several years.

I don't really have like a strong desire to do. I think it would make our lives generally worse if we did.

Ben Gilbert expresses a lack of strong desire for additional growth, considering the potential negative impact on their lives and content quality.

• The hosts discuss their sponsorship model, which involves long-term partnerships and a selective approach to choosing sponsors.
• They highlight the value of building deep relationships with sponsors and how this aligns with their business strategy.
• The conversation considers the trade-offs of not engaging with ad agencies or dynamic ad insertion networks to maintain control over their sponsorships.

We only do six month season long sponsorships, and we are ridiculously choosy about the people that we do that with.

David Rosenthal explains their selective and long-term approach to sponsorships, which differentiates their business model.

It's a big freaking commitment, and there's a trade off there in our business model, which is we're not going to work with that many people when we do, but when we do, we want to go as deep as possible.

Ben Gilbert describes the commitment involved in their sponsorship model and the trade-off of working with fewer sponsors to create deep partnerships.

• Ben Gilbert and David Rosenthal discuss their investment in Kindergarten Ventures.
• They invested almost $10 million in the company this year, primarily from the Acquired audience community.
• The growth of the audience increases the number of high-quality people, which is valued but not directly tied to the business.
• The investment was a transformational moment, indicating a new direction for their business activities.

"And you too invested almost $10 million in the company this year."

The quote reflects the significant financial commitment made by Ben Gilbert and David Rosenthal to Kindergarten Ventures, emphasizing the scale of the investment.

"Mostly kindergarten. Very small."

Ben Gilbert clarifies that the investment was primarily in Kindergarten Ventures, which is a small, early-stage company.

"And most of that capital came from the acquired audience community, like the LP capital that backed that SPV came in very large part from the acquired audience."

David Rosenthal explains that the majority of the funds for the investment came from their Acquired podcast audience community, highlighting the community's financial support and the structure of the investment vehicle.

"And that was a transformational moment for us."

David Rosenthal marks the investment as a pivotal point for their business, indicating a significant change or development.

• Ben Gilbert and David Rosenthal have personally invested in sponsors before, gaining insights from working with CEOs.
• They discuss the importance of understanding a company's growth and the community's reaction to sponsorships.
• The decision to invest a meaningful amount of capital was based on insights and the ability to pool resources from their network.

"It was at least an insight you could sort of test the hypothesis of, like, because you and I have invested small amounts personally in our sponsors before, because we get insight into their business from getting to work directly with CEOs on those."

Ben Gilbert talks about the hypothesis that their personal investments in sponsors were beneficial, as they provided direct insights from working closely with CEOs.

"Could I invest a meaningful amount of capital in this?"

Ben Gilbert questions the possibility of making a significant investment, indicating a strategic consideration based on their insights and the company's potential.

• There is no strategic plan for Kindergarten Ventures, indicating a more organic approach to business.
• The absence of a formal strategy or offsite planning session is acknowledged.
• The investment opportunities arose naturally from discussions and activities related to their podcast, Acquired.

"There is no strategic plan for kindergarten ventures, period."

David Rosenthal states plainly that Kindergarten Ventures operates without a formal strategic plan, suggesting a flexible and opportunistic approach to business decisions.

"May be shocked that there's no strategic plan, but it's not like we did an off site."

Ben Gilbert humorously acknowledges that the lack of a strategic plan for Kindergarten Ventures may be surprising, but emphasizes that their approach is more informal and spontaneous.

• Ben Gilbert and David Rosenthal reflect on the relationship between audience size and business revenue.
• There were years where the audience size doubled, but revenue increased tenfold due to the under-monetized nature of the asset.
• The business model is considered unoptimized, with potential to grow in ways beyond audience size.
• They discuss the possibility of enhancing sponsorships and creating more differentiated content.

"And just to put a finer point on the business being not entirely connected to the audience size, there were years where the audience would two x, but revenue would ten x just because it was a wildly under monetized asset."

Ben Gilbert points out that the growth in revenue significantly outpaced audience growth in certain years, suggesting that the business had untapped potential for monetization.

"Our sponsor for this episode is a brand new one for us, Statsig."

Ben Gilbert introduces a new sponsor, Statsig, showcasing the ongoing efforts to bring in new partnerships and revenue streams.

• Statsig is introduced as a new sponsor for the Acquired podcast.
• The founders' background, including experience at Facebook, is highlighted.
• Statsig's platform offers feature management and experimentation for product teams, with a strong emphasis on data-driven decisions.
• The company has a diverse and notable customer base, demonstrating its industry relevance and credibility.

"So many of you reached out to them after hearing their CEO Vijay on ACQ two that we are partnering with them as a sponsor of acquired."

David Rosenthal explains the decision to partner with Statsig as a sponsor, linking it to the positive response from the audience to an earlier appearance by Statsig's CEO on their platform.

"Customers include Notion, Brex, OpenAI, Flipkart, Figma, Microsoft and Cruise Automation."

Ben Gilbert lists some of Statsig's customers, underscoring the company's broad appeal and success in attracting high-profile clients.

• Ben Gilbert and David Rosenthal discuss potential topics, guests, and episodes for the upcoming year.
• They consider covering OpenAI, given its relevance and connection to their Nvidia series.
• The recent Twitter drama is acknowledged, but they express a preference for focusing on business stories rather than sensationalism.
• They explore ideas for episodes on luxury brands, healthcare, and consumer brands like Nike and Intuit.
• The Acquired podcast's approach to interviews and storytelling is contemplated, with a desire to delve into the emotional experiences of guests.

"Next, we got to talk about next year, 2023. Looking ahead."

David Rosenthal transitions the conversation to planning for the upcoming year, signaling a forward-looking perspective for the podcast.

"One that feels like an obvious one we should do at some point next year is OpenAI."

David Rosenthal identifies OpenAI as a potential topic for an episode, reflecting its prominence and relevance to their content.

"I continue to want to do epic healthcare."

Ben Gilbert expresses interest in covering Epic Healthcare, indicating a desire to explore significant players in the healthcare industry.

• Ben Gilbert and David Rosenthal share personal highlights from 2022, including Ben's wedding and travels to Italy.
• They discuss the impact of life events on their perspectives and the importance of capturing memories, especially with family.
• The conversation shifts to technology, with Ben reviewing his Apple product lineup and David sharing his own device preferences.
• They reflect on the balance between experiencing new places and returning to familiar favorites.

"Yes, I got married. It was wonderful."

Ben Gilbert shares his personal milestone of getting married, describing it as the happiest day of his life and the profound sense of change it brought.

"We took a vacation to Italy. I'd never been to Italy before."

Ben Gilbert recounts his travels to Italy, highlighting the cultural and historical significance of the trip.

"I've got, like, an old, old iPad that I don't think has promotion."

David Rosenthal discusses his use of Apple products, including an older iPad, and considers the potential benefits of newer models like the Apple Watch Ultra.

"I'm still rocking the 2020 original OG M one MacBook Air."

David Rosenthal describes his satisfaction with his current MacBook Air, emphasizing its performance and value even as newer models have been released.

• Promotion is a display feature that was missed when downgrading from a newer iPhone to the 13 mini.
• Non-Pro iPhones do not have Promotion.
• Promotion allows up to a 120Hz refresh rate on the screen, enhancing the visual experience.

"It does have promotion because that I actually missed when I was downgrading from the new iPhone down to the 13 mini, because the non-Pro iPhones have never had promotion. Right." "That goes up to 120. Refresh rate on the screen."

The quotes discuss the Promotion feature, which offers a smoother display with higher refresh rates, and how it's exclusive to Pro models of iPhones.

• Kindle Oasis is used for reading fiction at home.
• The iPhone 13 mini is used as a Kindle substitute while traveling.
• Kindle devices are preferred for outdoor reading due to their screen visibility.
• iPads can be too bright for night reading in bed.
• The durability and lightness of the Kindle are appreciated, especially older models.

"The mini is great, though, for events. It's also really good. I have a Kindle oasis that I use for reading fiction at home, but when I travel, I no longer bring the Kindle Oasis, and I use this as a Kindle. It's great for that." "I find, like, for outdoor stuff, you can't beat the Kindle."

These quotes highlight personal preferences for reading devices in various settings, emphasizing the practicality of the Kindle and iPhone 13 mini.

• The Kindle Oasis has page turn buttons, which are a convenient feature.
• It is also beneficial for night reading due to its built-in light, which can be considerate for partners who sleep at different times.
• Despite being heavier, the Oasis has features that justify the additional weight.

"The nice thing about the oasis is it's got the page turn buttons, which I like." "Jenny and I got the oasis for that very reason. Jenny's a night owl, and I'm a morning person. And Jenny is a huge reader. She has a phd in literature, and I'm a huge reader, too. But she puts me to shame. She would stay up reading at night with the light on and, like, I'm buying you this. Turn the light on."

The quotes discuss the advantages of the Kindle Oasis, particularly the convenience of page turn buttons and the built-in light, which facilitates considerate night reading.

• 2022 was a year of adjustment to life as a new parent.
• The speakers discuss the impact of their daughter's birth on their daily lives and relationship.
• They recount the experience of renegotiating their relationship after a long time without major changes.
• The speakers also reflect on how marriage and parenthood require accounting for another person's well-being in decision-making.

"Oh, 2022 personal year. Well, this was the year of adjusting to life as a parent. Our daughter was born towards the end of 2021, so that was, like, most of the year was preparing." "But we hadn't had to really renegotiate our relationship in a long time, so it was like, oh, wow, flexing old muscles again."

The quotes provide personal insights into the transition to parenthood, emphasizing the challenges and adjustments involved in incorporating a new family member into their lives.

• Parenthood introduces a new being to account for, impacting personal identity and decision-making.
• The speakers talk about the constant need to prioritize the child's well-being.
• They share the emotional journey of becoming a parent and the evolving relationship with their child as they grow.

"When you have a kid, dad's kid starves. Yeah, 24/7 somebody needs to have as, like, a pretty foreground in their mental processes. Like, I need, the algorithm of how I'm behaving needs to have at the forefront, keep this kid alive and happy."

The quote captures the profound shift in priorities and self-perception that comes with parenthood, highlighting the responsibility and love that shape the parental role.

• The speakers discuss how they continued to travel even after becoming parents, including a family trip to Portugal.
• They also talk about the decision-making process regarding where to live, ultimately choosing to stay in San Francisco.
• The city's walkability and cultural offerings are seen as beneficial for raising their child.

"We didn't actually travel any less. Like, we didn't travel in the early, early months, but we did. What did we do? Eight or nine trips with the baby in 2022, including going to Portugal." "We were in the city before and we ultimately decided to stay in the city to stay in the same neighborhood."

These quotes highlight the speakers' experiences of traveling with a child and their thought process in choosing a living location that aligns with their family's needs and preferences.

• Crusoe is a clean compute cloud provider that specializes in AI workloads.
• They partner with Nvidia and use wasted, stranded, or clean energy to power their data centers.
• Crusoe's approach offers better performance per dollar and benefits the environment by not relying on the energy grid.
• Their remote data center locations contrast with traditional cloud providers that need to be near major traffic hubs.

"So Crusoe, as listeners know by now, is a clean compute cloud provider specifically built for AI workloads." "Crusoe's cloud is purpose built for AI and run on wasted, stranded or clean energy, they can provide significantly better performance per dollar than traditional cloud providers."

The quotes explain Crusoe's business model and its unique selling points, emphasizing their focus on AI workloads and sustainable energy usage, which sets them apart from traditional cloud providers.

• Speaker A recommends "Project Hail Mary" as the best fiction and Sci-Fi he has ever read.
• "The Psychology of Money" by Morgan Housel is also recommended for its insights into happiness and investment strategies.
• Speaker B expresses interest in reading "The Power Law" by Sebastian Mallaby for its deep dive into venture capital history and investments.

"I think it's the best fiction I've ever read. Definitely the best Sci-Fi I've ever read." "Another book that I finished about two months ago that I thought was exceptional, and every single person who listens to acquired should read it."

These quotes provide personal endorsements of the books mentioned, suggesting their value to the audience for both entertainment and educational purposes.