Shervin Pishevar Identifies a Tectonic Shift in Silicon Valley

Shervin Pishevar, the venture capitalist best known for being the founder of Sherpa Capital, recently launched dozens of tweets across Twitter. Business blogs later identified it as a tweet storm because of the volume of tweets sent within a 24-hour period.

Shervin Pishevar took the time to explain a lot of things that he has noticed recently, including what he identifies as a tectonic shift taking place across Silicon Valley. There are new, competing zones of innovation, which means that Silicon Valley has lost their competitive edge.

Often, people view Silicon Valley as an idea as opposed to a physical place. It has gone viral and entrepreneurship is more of a movement than a location. It is borderless.

One of the reasons, according to Shervin Pishevar, as to why Silicon Valley has lost their edge is because immigrant talent is no longer coming to the United States. Part of this is because the government has built cultural and physical walls that are keeping immigrants out. Further, due to the Internet and e-commerce, the talent no longer needs to come to the United States. Romania, India, China, and plenty of other countries have talent that is being innovative.

Shervin Pishevar chose to share a 2009 essay in his 30th Tweet, which talked about the classic American entrepreneurial spirit. We no longer have that monopoly. It’s global. Speedy execution is also causing us to lose our edge. He provided the example that China built a train station in only nine hours.

With the tectonic shift occurring in Silicon Valley, the United States has lost its edge. It is unclear as to whether we will ever get our edge again because of how entrepreneurship has become borderless. These thoughts were just a few of what was shared across the 50 tweets that Shervin Pishevar sent during the first week of February.


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In a 50-Tweet Downpour, Shervin Pishevar Highlights America’s Economic Challenges

A well-versed investor, Shervin Pishevar recently logged into his @Shervin Twitter account to discuss troubles he sees in the American economic system. He distilled his points into 50 tweets that took him 21 hours to post on February 5 and 6, 2018. Here are his biggest thoughts.


The Dow Will Go Down


Shervin Pishevar’s tweet storm coincided with a scary stretch for the United States stock market. During early February, the Dow Jones Industrial experienced its worst week since the Great Recession that began in 2008. Pishevar predicted that things would worsen. “I expect a 6000-point drop in aggregate in the months ahead,” he tweeted. In the tweets that followed, he gave evidence supporting his position.


First, Shervin Pishevar listed reasons for the downturn. They included rising credit deficits, increasing interest rates, tax cuts that were not attached to reduced spending and his opinion that the bond market is not deep enough to gently absorb repeated heavy blows. He also said factors exist that could lead to another prolonged recession.


Additionally, Pishevar decried exchange-traded funds. “All volatility indexes are suspect for trading. 24 ETFs with a combined market cap of near $6 billion,” he tweeted, and he continued this point in the next tweet. “The inverse ETFs are over $3 billion of that and are essentially zero overnight,” Pishevar wrote. Read This Article for more information.


Silicon Valley Is Now a Concept


Pishevar also warned that America has lost its competitive advantage in the substantial niche of venture-capital-backed innovation that has been centered in Silicon Valley for several decades. “As I’ve said before, Silicon Valley is no longer a physical place but an idea that’s gone viral,” he wrote. He then criticized U.S. immigration policy. “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore,” he noted.


Shervin Pishevar has helped launch projects that will shape the distant future, like Virgin Hyperloop One, and explosively growing tech brands, like Uber and Airbnb. He warrants undivided attention.


Will leaders on Wall Street and in D.C. listen to Shervin Pishevar’s message? Doing so would be wise.