Friedberg argues decentralized funding networks suffer from adverse selection where the best storyteller wins, not the best candidate.
“You see this in, like, the insurance industry. The term is often used to adverse selection where, it's the best storyteller that wins, not necessarily the best candidate.”
Friedberg believes Altos Labs' $3 billion model of acquiring academic teams will likely yield commercial breakthroughs.
“I think it's a really interesting model. I'm really curious to see what comes out of Altos Labs, given that the number of teams that they've gone out and like vacuumed up from academia, the probability of that portfolio of teams having a breakthrough or a set of breakthroughs that has commercial success is very high.”
Friedberg describes Altos Labs raising three billion dollars to pursue epigenetic partial reprogramming using Yamanaka factors for cellular rejuvenation.
“They raised about $3,000,000,000 in startup funding, and they're pursuing this kind of epigenetic partial reprogramming of cells to make them more youthful.”
Friedberg reports Altos Labs raised $3 billion from Bezos and others to recruit academic research teams.
“And they've been going out and just grabbing some of the best academic and research teams out there that are like, they brought a ton of people out from UCSF.”
Friedberg argues decentralized funding networks suffer from adverse selection where storytellers win over qualified candidates.
“The problem with decentralized networks is often you see adverse selection. You see this in, like, the insurance industry.”