By Bitwave 
The VC Drama That’s Damaging the Silicon Valley Elite
A decade-old drama involving David Sacks and Rippling founder Parker Conrad over their previous company Zenefits has blown up this week into a finger-pointing fight on X (formerly known as Twitter). Many among the Silicon Valley elite are taking sides, but some have weighed in to say that such fights are becoming damaging to all VCs.
The Drama Unfolds
The hullabaloo began after Sacks posted a political opinion about Republicans and Democrats in an X post on Wednesday using the words "fake coup." Conrad threw a barb by replying: "Let me tell you, coups are this man’s specialty."
Conrad was referring to the meltdown of Zenefits, the previous HR tech company that he founded. Sacks was an investor in Zenefits who joined as COO. Conrad was ousted from Zenefits after allegations arose around improper employee licensing and Sacks took over as CEO. (Sacks left Zenefits not long after that. In 2022, the company sold to TriNet.)
Conrad apparently never forgave Sacks for not issuing a friendly founder-leaving announcement. The press release at the time blamed Conrad for governance issues. Conrad went on to launch another HR tech company that he leads as CEO, Rippling, and has grown it to a $13.5 billion valuation.
Sacks Fires Back
Sacks replied to Conrad on X: "You were sanctioned by the SEC. Nobody else, only you. But you’ve spent the last decade trying to shift the blame onto others for your own poor ethics." It should be noted that Conrad and Zenefits settled an SEC investigation and paid fines without admitting fault.
The Fight Escalates
Almost immediately after Sacks posted his reply, swords were drawn all over Silicon Valley. Y Combinator co-founder Paul Graham entered the conversation, writing: "Do you want to know a secret? David Sacks is not a good guy." Graham’s post was met with both support and criticism from other VCs.
Public Spectacle
While duking it out with Sacks, Graham managed to sneak in a plug for his wife’s podcast Social Radar. The fight culminated with Sacks’ friend Chamath Palihapitiya wading in, not to so much voice support, but to plug the famous podcast the two do with fellow VC Jason Calacanis, All-In.
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!)."
The Damage
The drama has sparked a debate among VCs about the impact of public spectacle on their reputation and the industry as a whole. Some have argued that the constant bickering and fighting are damaging to the community, while others see it as just another aspect of the high-stakes world of venture capital.
The Broader Implications
As the drama continues to unfold, it’s worth considering the broader implications for the Silicon Valley elite. The constant focus on ego and power struggles may be alienating potential investors and partners, and undermining the credibility of VCs in general.
What’s Next?
With receipts (even deleted ones!) promised by Palihapitiya and others, it remains to be seen how this drama will play out. One thing is certain: the fight between Sacks, Conrad, and Graham will continue to make headlines for weeks to come.
The Verdict
As one VC noted on X: "This whole thing is a mess. We need to focus on building companies, not tearing each other down."
Related Stories
- How Barcelona became an unlikely hub for spyware startups
- China is reportedly open to Elon Musk acquiring TikTok US
- Top New York VC Ben Lerer says more mid-sized VC firms are heading for failure