'Rich brats fighting online': All about Silicon Valley's latest fued
What's the story
David Sacks, a prominent venture capitalist, and Parker Conrad, founder of Rippling, have reignited a decade-old feud on social media platform X. The disagreement traces back to their shared history with Zenefits, an HR tech company Conrad founded and where Sacks later served as COO and then CEO. The argument was sparked by a political opinion posted by Sacks on social media, which drew a sarcastic response from Conrad referencing past controversies at Zenefits.
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How the fued started
Let me tell you, coups are this man’s specialty. https://t.co/qGSGorBa9B
— Parker Conrad (@parkerconrad) July 24, 2024
Past scandals
Zenefits controversy fuels online spat
Conrad's sarcastic comment was a veiled reference to the Zenefits scandal, where he was ousted following allegations of improper employee licensing. Sacks subsequently took over as CEO, and Conrad's departure was marked by a press release blaming him for governance issues. In response to Conrad's jab, Sacks reminded him of his sanction by the Securities and Exchange Commission (SEC). It is important to note that Conrad and Zenefits settled an SEC investigation and paid fines without admitting fault.
Industry voices
Silicon Valley luminaries join public dispute
The online dispute drew in other big names from Silicon Valley. Y Combinator co-founder Paul Graham accused Sacks of maltreating Conrad, terming it as "the worst case" he had ever heard and calling Sacks "evil." In response, Sacks, who is Jewish, accused Graham of underhanded behavior toward Jewish VCs. Cloudflare co-founder Matthew Prince also joined the conversation. He wrote, "I know this story. It's very bad. Don't know if David (Sacks) is most evil person in SV. Lots of competition."
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Graham displayed no restraint during feud with Sacks
I don't need a sixth sense. I know he's an awful person from things he's done.
— Paul Graham (@paulg) July 25, 2024
Industry impact
Public feuds impacting venture capital reputation
Eric Bahn of HustleFund commented on the situation, stating that the ongoing bickering within the industry is damaging venture capital's reputation among founders. This public spat is part of a growing trend among Silicon Valley's most successful founders and investors who are increasingly engaging in public disagreements. This follows recent arguments between venture capitalist Vinod Khosla and Elon Musk over political choices, and between Khosla and Marc Andreessen over AI regulation.
More to come
More drama to unfold in new 'All in' podcast episode
The Graham-Sacks duel culminated with Sacks's friend Chamath Palihapitiya stepping in to plug 'All-in' podcast the two host with VC Jason Calacanis. Palihapitiya posted on X, "There is so much to say about this. We will document and talk about all of it this week on @theallinpod. PS - with receipts (even deleted ones!)." "So at this point things have mainly just devolved into YC/Parker camp and Sacks/All-In camp calling each other liars," wrote tech entrepreneur Deva Hazarika on X.
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How another X user reacted to Silicon Valley's latest fued
TLDR: a bunch of rich assholes are fighting online https://t.co/BVYEZv5sT5
— clear cola (@CrystalPepsi) July 25, 2024