🖥️ The Bulletin #38: Exploring the Techno-Optimist Manifesto, the Link Between VC and University Endowments, and Professional Opportunities!
Exploring the visionary ideas of Marc Andreessen, financial strategies in higher education, and career opportunities.
🕹️ Decoding the Techno-Optimist Manifesto
The VC space has been abuzz since the release of ‘The Techno-Optimist Manifesto’ by Marc Andreessen, co-founder of a16z. Andreessen’s 5,200-word essay argues that technology is the spearhead of human progress and advocates for an ambitious approach toward technological advancement. Several thought-provoking lines from the manifesto encapsulate this techno-optimism, such as “Love doesn’t scale…Let’s stick with money”💌; “We believe in the romance of technology…the eros of the train, the car, the electric light”; and “Victim mentality is a curse in every domain of life, including in our relationship with technology…We are not victims, we are conquerors.” To say that feathers were ruffled upon the release of this statement would be an understatement. ⚡
🗝️ Key takeaways and core principles of the manifesto include:
Technology is the only perpetual source of growth.
Technological progress leads to increases in productivity which in turn drives economic growth and improves living standards.
Free markets are the most efficient way to organize a technological economy.
Technology can solve any material problem created by nature or technology itself.
AI is a universal problem-solver.
Material abundance opens the space for religion, politics, and choices of how to live.
🔐 Key arguments that critics had:
Technology is not a panacea. Critics believe that Andreessen is too optimistic about the ability of technology to solve all our issues given that it is also the cause of many of the problems we are facing, such as mass surveillance.
The vision is too narrow. Some argue that the manifesto is too focused on economic and technological growth without accounting for important values such as personal fulfillment and social justice.
Techno-optimism is dangerous. Skeptics maintain that Andreessen is not accounting for the negative consequences of techno-optimism, such as the increasing concentration of power in the hands of a few and the potential development of autonomous weapons.
We are curious to see which aspects of this techno-optimistic vision will stand the test of time. 🦾
🎓 Navigating the World of Endowments and VC
Several university endowments are posting lackluster returns, attributing their performance to investments in venture capital and startups. On average, colleges with endowments exceeding $1 billion dedicate a substantial 14.5% of their portfolios to venture capital. This strategic embrace of venture capital was influenced by skyrocketing startup valuations, a desire for diversification, and the potential for remarkably high returns.🚀 However, it appears that the outcome has been quite the opposite. Robert Wallace, CEO of Stanford Management Company stated, "While most asset classes delivered strong results over the past year, losses in our venture capital and growth equity portfolios partially offset these gains, continuing a correction that began in 2022." Prominent institutions such as MIT, which reported a 2.9% loss, and Duke, which experienced a 1% loss for the fiscal year ending on June 30th, were notably affected. Although these returns may not be ideal, they represent a considerable improvement from 2022 when many endowments posted their weakest annual performance since the global financial crisis.📉
As universities navigate these financial waters, the enduring lesson remains that investment portfolios, just like their students, should be well-rounded and ready to adjust to the ever-evolving macroeconomic currents.
🐻 Fun fact: In FY 2022, Brown’s endowment boasted the highest allocation to private equity, with 43% of the portfolio dedicated to this asset class.
🖊️ Professional Opportunities
💵 Girls Who Invest:
What is GWI? GWI is a nonprofit organization dedicated to increasing the representation of women in the asset management and finance industries. The program offers educational initiatives and scholarships to undergraduate women, aiming to empower and equip them with the skills and knowledge necessary for successful careers in investment management. Participants receive training in finance, investment principles, financial modeling, and other relevant areas. The ultimate goal is to foster diversity and gender equality within the finance sector by providing women with opportunities and support to pursue careers in investment management.
What? The session will include a panel of past Girls Who Invest Scholars (both of the Summer Intensive Program and the Online Intensive Program) speaking to our experiences and providing insight into the application and its timeline.
When? Wednesday, October 25th, 6-7PM
Where? Friedman 102
Morgan Stanley:
Join Morgan Stanley's Summer 2024 Early Insights Program. The program offers students meaningful information on Morgan Stanley's employee network groups, diversity roundtables, and workplace culture. Morgan Stanley will be hosting its Early Insights Program in person in their New York City, Baltimore, and Alpharetta offices.
Early Insights program participants will be eligible for an interview for a Summer 2025 Analyst role.
Learn more and apply at: https://morganstanley.tal.net/vx/mobile-0/brand-2/candidate/so/pm/1/pl/1/opp/16329-2024-Early-Insights-Program/en-GB
That’s it for this week, feel free to email me at lara_gamaleldin@brown.edu with any inquiries!
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