Josh Wolfe is one of the most successful venture capitalists in the country right now. He is an iconoclast that leans against the mainstream narratives. Josh articulates that most future shorts will come from venture-backed companies that are premised on a narrative and expectations that are completely outrageous. He posits that 90% of companies are crap and 10% are run by real operators and management. The problem with investing is that 90% of companies get the benefit of a rising tide where their cost of capital is a lot lower than it should be. Josh confronts the question of whether innovation is better when the cost of capital is high or low. He offers that due diligence goes out the door when capital is abundant and makes Carson’s job as a short-seller way more fruitful. Even in one of the most bountiful ages for VC Josh also agrees with Jim Chanos that this is a golden age of fraud. Carson and Josh also confront the question about how Silicon Valley VCs or private equity buy one another’s portfolio companies as a way to cover up performance issues.