Nico Rosberg on the Booming Business of F1 | All-In Live from Miami
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[Music]
former F1 driver champion in 2016. He's
getting into the venture business.
Please welcome Nico. They started the
season with 20 drivers and they would
end the season with only 18 of them
left. Wow. What was the craziest [ __ ]
you've ever been involved in? Well, my
my rival was my teammates. So,
unfortunately, it really becomes like an
enemy in a way. What were your first few
deals? 11 laps, for example. Holy [ __ ]
Good for you.
This used to be an extremely dangerous
sport. You had people dying every year
in these tiny little cars with no roll
cages, etc. But over time, it's become
incredibly safe. The number of people
dying went from, you know, a couple
dozen a year in the ' 50s, '60s, '7s,
and now it's gotten incredibly safe. How
scary is it to drive in those cars? And
how do you get over that fear of death?
First of all, hello everybody. That's a
pretty That's a pretty intense start to
the to the conversation. I just show
Good job interviewing Jacob. World team
world best. I I I got to get right to
it. It's like set the mood. How are you
still alive?
How are you? Why haven't you died yet,
Nico? I looked at that car. Justify
yourself. Why is there no canopy on it?
Why are your head exposed? It's so crazy
what you're doing or what you did. So,
no, you're absolutely right. And I know
um better than most people also because
my father actually was a Formula 1
racer. Yeah. And he was racing champion.
And a champion. I didn't want to say but
yes, he was also a world champion. But
you you were sorry I asked you
backstage. You're one of only two
fatherson world champions of all time.
That's true. Pretty incredible. Which is
very special. So I mean your dad's out
there racing. You're at home with mom I
assume. This has got to be terrifying to
watch your dad do this. So at in his day
they started the season with 20 drivers
and they would end the season with only
18 of them left. So it was a 10% chance
more or less that you wouldn't make it
through the season which is just that's
crazy. Wow. I mean what then if you do
an 8-year career like what are your
odds? Like that's not looking very good.
So there to your point. Yeah. Yeah. It
was a death every 100,000 miles. Now
it's a death every 67 million miles. I
was very lucky because by the time I
came in they had carbon fiber chassis.
Um they had roll they have a roll hoop
now you know and this this protection
this halo around your head which
recently saved a couple of lives in the
last 5 years cuz Maxappen who's now the
the the four-time world champion at the
moment. He landed on Lewis Hamilton's
head in Italy with the full car and it
was this halo that saved Lewis
Hamilton's life. So, we're very very
lucky how the sport has progressed um
with the safety. How did you start
drive? How old were you? Because um I
didn't realize yesterday I go into the
suite that we have and they say this kid
is 18 years old as a driver. I had no
idea that kids that young were driving.
How old were you when you started and at
what point did you start to become
competitive? So, it's a bit like with
with every sport that you have to start
very very young. I started I was six,
started go-karting I was six and then
racing 10 years old. Now they start
racing at year at when they're 8 years
old. So Antonelli, who was on pole
position yesterday, the 18year-old, uh
he started racing he was eight. He was
in my go-karting team when he was 12. So
I know him very very well and he is a
generational talent, but it's very early
for him cuz he's only 18. And he he took
over the car of the greatest of all
time. Lewis Hamilton left Ferrari, left
Mercedes to go to Ferrari. and Antonelli
took this car from Lewis Hamilton. That
is insane pressure. Answer this question
if you could. You said generation. I'll
try I'll try my best. So if we had to
design some kind of a model you could
you define the
features that he had when he was six,
seven or eight years old that could have
predicted how good it was? Like is it
the Metaclorian? Like so is it the Well,
Anakin Skywalker was really good. I
don't know.
Nico specialist on Star Wars lore and
anyway the metacloran to find the do you
think that you could design something
where people kids could come and take
some kind of test you look at your
reflexes or your you know your eye
twitch speed or the way your brain works
and is there a pattern do you think that
is genetically
predisposes some people to just be
exceptional? So we've not come to that
point yet that we actually go through
such tests. But I think there are a
couple of things that would that would
kind of satisfy that and one is your
speed of processing because in a race
car you're going at 220 mph and you have
so many inputs flying at you and not
only visual also sensual. Yeah.
Everything and also sound um with the
engine and everything and you have to
process that so rapidly. How did you
train for that? Um I even had a uh a
computer program which I developed just
for myself actually where I would have
all these different inputs. So uh audio,
touch, tactile had like a thing around
here um and and even then visual on the
computer and I would be catching these
inputs like and trying to break my
record and the faster I would go the
faster the program would go. Um so I was
trying to develop these kind of things
that to train my brain to move faster
and react. reaction time is the key
skill set of a driver. It's one of the
ones. Is it also being courageous and
like something with your amydala where
like you don't have fear? There's that
certainly. Yeah. Although I would say
that I am actually someone who's quite
fearful. Um and but when you're in it,
you kind of also get used to things.
Yeah. And you start to feel quite safe
in the car nowadays. Um because I'm not
a crazy adrenaline junkie unlike most
other drivers actually out there like
someone you find that they are
adrenaline junkies. Yeah like someone
like first tappen is fearless like
completely um or even Hamilton you know
they're proper quite nutcases. Um so the
paths are a little different for
everyone. Yeah, there's different
characters to the personality type.
There is a then of course there's hand
eye coordination. So to your point,
Chamath, for young kids, probably
there's a high chance that you put a
tennis racket in their hand, they'll
also be pretty good, very very quickly.
And it's a similar set of skills. Can we
shift and talk a little bit about the
business of Formula 1. I mean, we were
talking backstage before the show a
little bit and you shared some of the
anecdotes about some of the valuations
and what's happened over the last
decade, decade and a half. maybe you
can, you know, just kind of paint a
picture for us on how this has evolved
as kind of a business and where things
sit today, where they're where they're
headed and what's driven that. Yeah. So,
um I'm a venture capitalist myself and
that's why I'm very interested in the
business side of uh of sport and F1 has
gone through such an incredible
inflection and there's a couple of
factors that have come into play. They
brought in budget caps for the teams. So
the teams were spending just on sha on
their car development like north of 200
million a year and now it's like limited
to 130 million a year just for the
chassis itself not excluding engine
drivers and top personnel. $130 million
on how many cars is that like for a well
there's 10 teams. Yeah. No, but is the
13 cars? Two race cars per year. Per
year. But that's just the chassis. You
then have the engine which is another 70
million. You then have the top driver
who takes 50 million a year or 100. No,
100. No, that was the verse stopen rumor
to go. Yeah. Plus marketing plus plus
you get to maybe 70 80. Yeah. So
fielding a team is how much? Fielding a
team is around uh you get close to 300
million. Wow. Yeah. But you're saying
that the budget cap allowed everything
to kind of So the budget cap brought in
this cap for developing the chassis to
130. Um then suddenly Netflix also came
in and Netflix has just made the sport
so much more popular. It's
unbelievable. Really changed the land.
Just in the US you've gone from in a
couple last couple of like six years 20
million fans to like 50 million fans.
It's more than doubled only in the US
alone. What do you think Netflix did?
Right. So Netflix the owners of F1 are
Liberty. Yeah. Which is a US right. It's
a US-based uh company and they did very
well. They opened up social media. The
new generation of drivers are really
social media savvy and are are like the
fan base is 40% women in America. How
many women here today are F1 fans?
Loads. There we go. Okay. Not too bad.
Um,
are all the drivers as good-looking as
you or No. No. I don't want to go into
that kind of Don't be to yourself in
Miami. So, the audience blew up. The
audience is has blown up. And you asked
me what did they get right?
So, what did they get right? The Netflix
show, for those of you who have seen it,
it's like a reality TV show. It's not
just a sports documentary like, hey,
this guy won here, but they go, they
managed to capture these personas behind
the scenes and you really get to see the
human beings behind the sport and that's
very special. and they tried to
replicate it in other sports like I
think golf and tennis and it didn't work
out as well because I think they got a
little bit lucky also that here quite a
few characters allowed them and
completely opened up and allowed Netflix
to capture the real intense
behind-the-scenes moment and it's just
fascinating to follow. Yeah. Um, so
that's what we're before if you come in
as an outsider, I had this experience
like what team are you, you know, who
you support like I'm not really sure,
but once you get to know the
personalities, you have a vested
interest, you have a history, there's
something that you can contextualize.
Let me just end on the on the business
part. Yes. Um, so teams like 10 years
ago, F1 teams were like worth $150
million. Yeah. And they would lose 50
million a year. And now the top teams go
for five to six billion dollars 10 years
later. It's like eye watering. It's
incredible. Each other on the when
you're driving the race, you try to like
Yeah. bump into each other, you know.
100%. It's part of the game. Yeah. You
have to unfortunately. Explain cuz I'm a
neoight. I don't understand it. And I I
see like once in a while these NASCAR
guys pull over, they get out, they throw
their helmets at each other, you know,
they get really upset. They seem like
but they seem like hillbillies. You guys
seem like a bunch of Europeans
and like you guys seem like you're
fancy, like a little more elegant. What
What do you guys do? Do you guys like
spray with Cleico on each other or
something? Like how do you guys mess
with each other? Nico didn't watch. So
the the word we had one guy pushed it
was first stop and pushed the other guy
and he got like one week of community
service. So uh that was a that was as
far as it went. That's as far as the
physical but when you're in the car.
Yeah. It's fierce. It's fierce. So take
us through like what was the craziest
you've ever been involved in
altercationwise? Well, my my rival was
my teammate. My rival was Louis Lewis
Hamilton at the time. We were both
racing for Mercedes. Any Lewis Hamilton
fans here today? A little bit. Okay.
Send me here. Good. Actually, Nico, can
you talk about that in that period? He's
so dominant, but the car is so dominant
and then you win. What is it like where
you're teammates with your biggest
competitor? Like what is that dynamic
like? That psychological dynamic? It's
Are you friends? Are you guys friends or
So with Lewis Hamilton, we were actually
best friends when we were 14 years old.
We grew up racing together in the same
team. Best friends, but when you get to
F1, it's just so intense and so much is
at stake. And if it's just the two of
you racing for race wins every single
time, it you can't stand him. You hate
him. Yeah. It goes into hating. Yeah.
Hate. I can see the content. Do you talk
during the week or you don't even really
interact? No, you don't interact much.
So, unfortunately, it really becomes an
like an enemy in a way, you know, and
internally in your own team. Yeah. It's
a horrible dynamic cuz also even your
the rest of the team then need to start
to be neutral. They can't take any
sides. So, even when you win, it's not
like everybody's like leaning in with
you. It's really a tough situation. So
it's like two people in the same project
who can't stand each other. Freedberg
yet they keep but you keep working
together. How much of that um fed your
decision to retire literally days after
you won the That was a little I think
that caught some people off guard. Can
you just tell us what happened? I was in
my prime and I won that championship
which for me was my dream come true and
it was extremely intense. Thank you. It
was extremely Thanks, Mom. I got one I
got one clap from my mom sitting in the
very big fan.
Way to go, mom.
Um, yeah, it was extremely intense and
for me it just felt like the right
moment to I had a young daughter at
home. She was one year old. Family um
just felt like the right moment. I was
in one piece to your comment it being
dangerous and I just decided rationally
you know I never wanted to exit on the
way down. That's something I definitely
wanted to avoid. I wanted to exit at the
top and that was my moment and and I
decided to pull the trigger. Has there
been a good ROI for the car companies
that that have invested in F1 in that
all this money that they spend other
than the notoriety? Are they inventing
things that we all use and see and
interact with day-to-day in our own
daily driving experience or not really?
So, you probably will be driving an AMG
at some point. I had an AMG at one
point. There you go. Um, and there is
tech from the F1 team in there now.
Okay. From the for the hybrid from
Mercedes. Yes.
Hybrid and yeah, every every car car
company will be benefiting. But the
return on investment is also in terms of
marketing. Mercedes there's a calculated
return on investment which is 2 billion
for their brand annually and they don't
actually invest money anymore because
the team is profitable now and highly
profitable like these teams make 200
$300 million in profit every year. So
they now have $6 billion valuations. Is
have we kind of peaked from your point
of view? Is the market and the valuation
curve still being climbed? There's still
a lot of uh there's still a lot of
upside at the moment because this growth
has just happened in the last 5 years.
Yeah. And there's still I mean even
America there's still loads of growth
potential. More races. There's
licensing. The sport hasn't really even
tapped into that yet. Do you think
there's something about sports that are
kind of more tuned to the way our brains
now operate in a social media world,
like a fast-paced world? Like, you know,
golf became Liv. I mean, Liv really kind
of changed the the face of golf. There's
now baseball's obviously dead. I mean,
MLB has been on the decline for years in
the United States. Not saying anything
negative about baseball. I'm just saying
that the viewership is going down. No,
no, no, no. You're you're But there's
also these conversations about
basketball, the NBA. I'll tell you this
crazy anecdote. I I was a co-owner of
the Warriors. I sold two years ago. A
friend of mine, friend of ours is in the
market for a sports team and he went to
Europe to look at a bunch of soccer
teams and then we were all having dinner
and his bankers produced this study that
showed exactly this problem which is
young people their attention span is
shrinking. As it shrinks there are
certain sports they just cannot watch
anymore. And it's totally correlated the
negative viewership in baseball, the
increase in the use of clips. So people
are willing to watch baseball clips.
They will not watch a baseball game to
save their life. People will watch
basketball clips. They won't watch
basketball. The NBA's moving to clips.
Yeah. And so it's this weird
construction, but in some ways F1 is
very set up for this already naturally,
right? Do people don't really watch the
whole sport as much as they want to
watch clips. I'm guessing
it's not
that hour. How long is this race on
sight? It's not that long. It's never
been and it's not that long. I mean
that's the thing about but you guys also
have a lot of a lot of data telemetry
like you can feed that kind of anxious
mind and there's no breaks it just goes
I'm not I'm not sure if you have a point
there unfortunately but um but pretty
diplomat I was just trying to move the
conversation no what I can say is that
our sport has like the highest
engagement rates across all sports even
comparing to NBA and everything um but
why is that I think there's just a huge
hype at the moment and maybe yes maybe
okay Maybe a little bit. It is
fast-pacing. There's there's incredible
action scenes like thrilling action.
There's huge crashes. Did you not want
to get in the business given your
knowledge and your experience? You
didn't want to be in the because you you
now have transitioned into venture
capital. How did you make that decision
versus working in the business of
Formula 1? Oh, great question. Um
because um yeah, that's a good qu. So,
in Formula 1, what jobs would have been
left for me now after driving would be
for example running a team. But running
a team is 24/7. Like you need full
commitment. You need to move to the UK.
All the teams are in the UK. It's a full
life dedication. And I've been I've done
that. Been there, done that. Now I want
more freedom in my life to define my my
calendar and everything and be at home
more. And so that job for example would
not be a possibility and not something I
want to do. And then beyond that, yeah,
you can be a driver manager, but even
there you need full commitment. So tell
tell us about this transition then to
tech and investing and venture and what
was that journey and what attracted you
to that? I was always inspired by people
like Elon Musk who obviously you talking
about uh before and those achievements
that you have this idea and then you
achieve something which has impacts like
millions of lives. I just found that
fascinating. Um so I I always just
wanted to pursue that path. So I started
investing as an angel investor and now a
second. Oh take it easy. Angel
investing.
What are you doing after the show? Did
you ever read the book Angel? It's a
phenomenal book in 12 languages. Yeah,
I'll sign a copy book called Angel. It's
84 pages long. What were your first few
deals? Uh 11 Labs, for example. Um Oh,
good for you. Yeah, that's uh that's
gone really well. Um how did you find
that? Yeah. How did that How did that
come about? I mean, I'm really putting
an effort into this community as well.
I'm spending a lot of time in in Silicon
Valley meeting everybody and and also
connecting to the European corporate
landscape. So I'm bringing customers,
revenues, connecting, building bridges
cuz there's a unique angle that I can
bring, you know, thanks to my sports
past. So I've just built my way into it
and built a reputation and then and then
you start getting the opportunities.
What themes, Nico, have you invested in
that today you would not invest knowing
what you know today? Not the ones that
are Yeah, that's um the the flying
taxis, the vitals, for example. Um yeah,
Germany was leading the way on those.
You have Joby, for example, Joby
Aviation, which is probably currently
best positioned in the US. Um but
Germany was leading the way with two two
horses in the race and and both of them
have run into trouble. One is bankrupt,
one was both bankrupt, I think. Um, so
that's something that then in hindsight
you of course if you had uh read the
book, you would have known hardware is
hard, right? I would have avoided that.
You should have gotten that chapter. Get
a highlighter out. Hardware is hard.
Hardware is even harder now with the
tariffs. I'm hearing now like I have a
um I invested also in a cyber escooter
here in New York called Infinite Machine
and now with the tariffs because the
supply chain is so concentrated on in in
China um it's it's just it's a complete
mess. Yeah. Nico, what about the
political landscape in Europe? There was
a pretty important election in Germany.
It seemed to kind of go down the middle.
What goes of Europe? What's happening in
Europe? The investability of Europe, the
ability to do business in Europe. What
do European industrial businesses do?
There's a ton of skill. There's a ton of
cash. When you talk to those folks, what
do you tell them? I know you're very,
very bearish on Europe. You wouldn't put
a dollar there, but uh is that correct?
Well, no, for sweaters and wine, he puts
much more than a dollar. That's true.
It's pretty prolific. It's a really good
question. I actually think industrials
chargers, right? Yes. Industrials, I
would industrials, I think there's
tremendous skill. Yeah. outside of
industrials I think it's hard. Yeah. So
we have the we have the problems with
regulatory frameworks being way too
cumbersome. Um we have the geographic
fragmentation in Europe which is very
different to the US. Um politically it's
it's really I mean quite in a bad place
at the moment and so yeah I understand
but at the same time as you said talent
density is insane. The universities are
some of the best in the world. So that's
where our hope is in the next generation
that's coming now. Stick to the Nordics.
And the Nordics are very powerful. Yes.
But
Spotify a little bit. There's a lot of
hope still. Yeah. Hey, what's your daily
driver? Daily driver is a Porsche. A
Porsche. And then when you're with your
with your with your daughter, I don't
know how old she is, but you ever like
pull some tricks and like does she like,
"Hey, Dad." No. She shouts, "Drive
slowly, daddy." Really? I'm not I'm not
allowed to drive fast with her. No.
terrified, which is fine. Which is fine.
You you don't want her to get into the
family business. No, no, no. What? Okay.
What are some investments that you're
really excited by? Beyond uh 11 Labs, um
there would be Applied Intuition,
another one. Oh, great business where
I'm uh where I'm in. That's a really
really interesting company. It's a
company that supplies software primarily
to all the legacy car manufacturers that
have not managed this transition to
being software first like Tesla has
shown the way. Um and this It's like
scale AI for automotive in some ways,
right? For part of the business. Yeah.
Nico, you're going to fit right in. Have
you learned to play poker yet? I'm a
good poker player. You're a good poker
player. We'll see you on Thursday.
Excuse me. Hold on, Nico. Now you
dec. Thanks for coming out. Thanks to
our new bestie, Nico Rosberg, for
joining us in Miami for F1. And thanks
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