A long-standing conflict between venture capitalist David Sacks and Parker Conrad, founder of HR tech company Rippling, has erupted into a heated public spat on X (formerly Twitter), drawing the attention of the Silicon Valley elite and sparking a wider debate about the industry’s reputation.
The drama reignited earlier this week after Sacks posted a political opinion about Republicans and Democrats on X, using the term “fake coup.” Conrad responded with a jab: “Let me tell you, coups are this man’s specialty,” referring to the collapse of Conrad’s previous company, Zenefits, where Sacks served as COO before eventually becoming CEO.
Zenefits, the HR tech startup Conrad founded, faced significant turmoil over allegations of improper employee licensing. Conrad was ousted in 2016, and Sacks took over as CEO. Zenefits was sold to TriNet in 2022. The fallout from Conrad’s departure was exacerbated by a contentious press release that blamed him for governance issues, a move Conrad perceived as a personal affront.
The latest exchange on X has seen prominent figures in Silicon Valley weighing in. Y Combinator co-founder Paul Graham accused Sacks of mistreating Conrad, describing the situation as “the worst case of an investor maltreating a founder” he has ever encountered. Graham’s critique led to a fierce rebuttal from Sacks, who accused Graham of unethical behavior toward Jewish VCs without providing supporting evidence.
The feud has drawn support and criticism from various quarters. Cloudflare co-founder Matthew Prince sided with Conrad, criticizing Sacks and suggesting that the conflict highlights broader issues within the venture capital community. “I know this story. It’s very bad. Don’t know if David is the most evil person in SV. Lots of competition,” Prince commented.
Other VCs have voiced concerns about the impact of such public disputes on the industry. Climate VC Jason Jacobs noted that the ongoing drama serves as a cautionary tale for founders considering VC partnerships. “VC Twitter this week has been like a walking advertisement for self-funding. Lots of people out there you don’t want to be in the same room with,” Jacobs remarked.
Eric Bahn of HustleFund echoed these concerns, highlighting the negative image these public spats create. “VC has a serious brand problem. All the bickering and name-calling within the industry are being noticed by founders. This clowniness makes us all look bad,” Bahn said.
Silicon Valley VCs traditionally pride themselves on being “founder-friendly,” often working to cultivate positive relationships with entrepreneurs. However, the recent public exchanges, including an earlier spat between Vinod Khosla and Elon Musk over political differences, and a debate between Khosla and Marc Andreessen about AI regulation, suggest a trend toward increasingly combative and public disagreements.
In the midst of the Sacks-Conrad feud, Graham managed to promote his wife Jessica Livingston’s podcast, Social Radar, while Chamath Palihapitiya, a friend of Sacks, hinted at discussing the drama on his podcast, All-In, which he co-hosts with Sacks and fellow VC Jason Calacanis.