Unveiling the Power of Social Influence: Howard Lindzon

Welcome to a special edition of Wolfcast for our first ever episode of the Single GP Podcast (at least that’s what we’re calling it for now)! Our guest today is none other than seasoned venture capitalist, Howard Lindzon from Social Leverage.

Before we get into the episode, it is important that I introduce our hosts of the single GP Podcast Michael Devellano and Shane Feldberg. Michael Devellano as many of you may already know is the Founders Pack Startup Chief Wolfpreneur. Shane Feldberg is the Founder and General Partner of Feldberg Ventures based in Toronto, Ontario, Canada. Feldberg Ventures invests in entrepeneurs who love building, and empower early stage companies to reach their full potential. Their one simple rule- Founders come first.

Who is Howard Lindzon?

Howard Lindzon is a well-known entrepreneur, investor, and financial media personality. He is best known as the co-founder of StockTwits, a social media platform for sharing stock market insights and ideas. Lindzon is also the founder and general partner of Lindzon Capital Partners, a hedge fund, and the managing partner of Social Leverage, a venture capital firm.

Lindzon has a background in finance and technology. He started his career in the financial industry, working as a stockbroker and hedge fund manager. In addition to his work with StockTwits, Lindzon is actively involved in the investment community and frequently shares his insights and opinions on markets, investing, and entrepreneurship.

Lindzon is known for his energetic and engaging presence on social media platforms like Twitter, where he shares market commentary and interacts with his followers. He has also been a guest on various financial media outlets and has spoken at conferences and events related to investing and entrepreneurship.

Howard’s Takes on the Industry Trends:

Howard expresses a nuanced perspective on the startup industry, noting that while it's an excellent time to start a company and invest, there is a considerable influx of capital chasing a limited number of quality deals. This dynamic creates challenges for venture capitalists, particularly LPs (limited partners) investing in these funds. Howard also highlights the shift in power dynamics between venture capitalists and founders over the years and the need for a balanced approach that prioritizes returns for investors.

Privileges, Rights, and Digital Opportunities:

Moving forward, the discussion takes an introspective turn as Howard delves into the privileges and responsibilities associated with the digital age. He emphasizes the need to approach these advancements as opportunities rather than entitlements. Howard draws attention to the consequences of misusing these privileges, urging individuals to curate their networks and recognize the ever-evolving nature of the industry. By touching upon the pitfalls of excessive complaints, he offers a refreshing perspective on embracing the digital realm as a means to create value.

The All In Podcast and Media Influences:

Our hosts, Michael Devellano and Shane Feldman then shift the conversation to inquire about Howard's thoughts on the popular All In podcast and its hosts' takes on various subjects, including politics and finance. While Howard acknowledges the podcast's popularity, he highlights the challenge of dealing with the influence the podcast holds over his LPs and founders, even though he personally finds it uninteresting. Furthermore, he reflects on the transformative power of disruptive media and how it has given rise to new "hot take" generators, akin to the Jim Kramers of the past.

The Importance of Level-Headedness and Focusing on Real Trends:

In the second part of the discussion with legendary investor Howard Lindzon, he shared valuable insights about the role of level-headedness in navigating the market and the need to focus on real trends rather than succumbing to fear and misinformation. Lindzon emphasized the significance of following trends and taking a contrarian approach when appropriate. Despite some technical difficulties, his wisdom shines through as he offers a unique perspective on the current state of affairs in the venture capitalist industry.

Lindzon points out that many individuals in the industry possess exceptional intelligence, having graduated from prestigious universities like Harvard and Stanford, and boasting extensive experience with successful investments. However, he highlights the importance of trust, acknowledging that even though these individuals are highly intelligent, he personally struggles to place his trust in them. He humorously compares them to "very savvy Velociraptors" who exploit chaotic situations to build their audiences. Lindzon emphasizes the need for accountability, as individuals who provide authoritative information should eventually be proven right and own up to their mistakes.

Filter Failure and Misinformation:

Lindzon delves into the issue of filter failure, wherein people listen to the wrong sources of information. In a world teeming with curiosity and advancements like AI becoming more accessible, Lindzon prefers to focus on networks of individuals working on significant advancements rather than fear-mongering or spreading misinformation. He calls for leaders to step up during times of crisis and highlights the importance of discerning reliable sources from those promoting chaos.

The Role of the Government, Media and Institutions:

Reflecting on the 2008 financial crisis and the recent events involving Silicon Valley Bank, Lindzon discusses the role of the government and its response to crises. While acknowledging the shortcomings of government interventions, he recognizes that the system has held up reasonably well despite the chaos caused by internet commentators and elected officials. Lindzon believes that the markets are acting healthily considering various factors such as rising interest rates, geopolitical tensions, and banking situations. He encourages investors and individuals to carefully weigh these factors and make informed decisions accordingly.

Lindzon expresses his disappointment with the media's portrayal of events in the venture capitalist industry, which he perceives as spreading unnecessary fear. He acknowledges that while there may be other lurking challenges ahead, he maintains a positive outlook for the future. Lindzon suggests that the next few years will likely prove that the system has weathered the storm, thanks to the resilience of institutions and individuals who understand how to navigate uncertain times.

Howard Lindzon's insights provide a refreshing perspective on the venture capital industry and the importance of level-headedness amidst chaos. By emphasizing the need to follow real trends and filter out misinformation, Lindzon encourages investors and individuals to make informed decisions. His belief in the resilience of markets and institutions serves as a reminder that despite challenges, there are always opportunities for growth and success. As Lindzon concludes his thoughts, we look forward to future discussions with this legendary investor and gain further insights into the ever-evolving world of finance. Watch the full episode at the link below to learn more about this legendary investor!

To connect with Howard you can follow his Linkedin or Twitter!

In addition he has a newsletter called ‘Howie Town’ where he shares his daily thoughts about trends, markets, investing and life.

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