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Venture Capital News
Medium
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291
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Why SoftBank’s Investment in WeWork Failed
- WeWork was founded in 2010 by Adam Neumann and Miguel McKelvey, who envisioned a new kind of workspace that was dynamic, flexible, and aimed at fostering community and collaboration.
- SoftBank’s massive funding pushed WeWork to pursue rapid global expansion without sustainable financial controls in place.
- The co-working business model relies heavily on local markets and the capacity to balance supply and demand effectively.
- WeWork struggled to achieve profitability due to high fixed costs in each location and variable occupancy rates.
- WeWork was largely rooted in the real estate sector rather than the technology industry.
- Adam Neumann’s leadership style and the lack of proper governance structures were major factors that contributed to WeWork’s decline.
- Multiple conflicts of interest were revealed including Neumann leasing properties to WeWork that he owned personally.
- SoftBank failed to foresee competitive and market dynamics which highlighted the importance of considering market trends and inherent risks.
- WeWork’s failure demonstrated how essential adaptability is, especially in markets influenced by macroeconomic trends.
- The WeWork story serves as a cautionary reminder of the importance of due diligence, realistic valuations, and disciplined leadership.
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Medium
2w
93
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12 months in VC
- Analyzing businesses from the perspective of an investment evaluation involves acknowledging the presence of similar companies in the market.
- The competitive landscape portrayed by companies in pitches should be taken with caution, as it may not fully reflect reality.
- The author has become more cynical but still finds excitement in discovering companies that stand out.
- Building a network of investors, ecosystem actors, and founders is a key aspect of the venture capital industry.
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Insider
2w
2.6k
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VCs are 'hedging their bets,' backing competing LLMs like Anthropic and OpenAI, breaking a long-standing venture taboo
- Venture firms are breaking the long-standing taboo of not backing competitors by investing in multiple competing large language model (LLM) startups like OpenAI and xAI.
- Some VCs argue that investing in multiple LLMs is strategic, while others see it as unethical.
- Investing in competing companies is perceived by some VCs as an affront to their commitment to a particular company and potentially sharing confidential information with competitors.
- However, others argue that backing multiple LLMs is justifiable given the early stage of the industry and the need for diverse models.
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Medium
2w
248
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[Startup/Investing] Microthesis
- A microthesis is a short, focused report that encapsulates key insights about a specific industry sector or a startup within that sector.
- It helps analysts understand the market landscape, assess opportunities and challenges, and communicate effectively.
- In investment firms, analysts use microtheses to save time, demonstrate analytical skills, and facilitate decision-making.
- A well-crafted microthesis typically comprises four main sections: understanding the core problems and trends, sector breakdown, assessment of potential investments, and prioritization of startups.
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Medium
2w
335
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Polymarket’s Role in Predicting the 2024 U.S.
- Polymarket is experiencing a surge in demand, with bets on the U.S. election accounting for 46% of its yearly volume.
- The platform's popularity is due to the advantages of decentralized prediction markets over traditional polling methods.
- Recent market trends show a shift, with Donald Trump gaining a significant lead over Kamala Harris in betting odds on Polymarket.
- The success of Polymarket highlights the real-world utility of decentralized finance applications and the integration of DeFi with predictive analytics.
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Medium
2w
43
Breaking Barriers: How Blockchain Can Empower the Unbanked and Transform Global Trade
- Blockchain technology can empower the unbanked population to access global markets and trade with greater ease and efficiency.
- The unbanked population faces significant challenges when attempting to participate in global marketplaces with limited access to financial services and technology, difficulties in meeting the requirements of digital transactions and limited trust in online transactions.
- Proper identification and documentation, trust in online transactions, cross-border payment challenges, currency conversion, and exchange rates are other significant challenges faced by the unbanked population.
- Language and cultural barriers, logistics, and shipping challenges, limited access to marketing and online presence, and regulatory and compliance hurdles are additional challenges that the unbanked population faces.
- Initiatives such as mobile banking, digital identity solutions, and blockchain-based payment systems can help extend financial inclusion, enabling unbanked entrepreneurs to access international markets and trade with greater ease and efficiency.
- Investing in startups that can make a genuine impact on the world can break the monopoly that traditional financial institutions have maintained for far too long.
- Blending Web 2 and Web 3 companies can challenge and transform the traditional financial sector and allow for wider crypto adoption.
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Medium
2w
200
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Waymo’s Monster $5.6B Series C: Is This the Tipping Point for Robotaxis?
- Waymo is shifting its focus towards conquering the ride-hailing market with robotaxis in major cities.
- They aim to revolutionize urban infrastructure by seamlessly integrating robotaxis, public transport, and pedestrian-friendly streets.
- Waymo is exploring various monetization strategies such as real-time advertising, subscription services, and data partnerships.
- Challenges remain in terms of battery life, sensor technology, AI capabilities, and navigating regulatory hurdles.
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Saastr
2w
383
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5 Simple Tips to Quickly Improve Sales Performance
- Concentrate leads in those who can close.
- Be more involved with sales.
- Listen to their calls and Zooms.
- Build them better collateral and get them more air cover.
- Put an SLA in place. Make sure every lead is called back fast.
- Pay more per deal closed.
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Medium
2w
174
Married to a Maestro: Life with Kenton, the Nordic-French Stoner Culinary Wizard
- Kenton’s passion for cooking isn’t just a hobby; it’s a full-blown love affair. His unique Nordic-French stoner cuisine invites a loyal following of food enthusiasts. Kenton is set to host an exciting pop-up event on November 16th, 2024, with the talented local chef, Riley Savick. Kenton's dream is to create a cozy yet chic restaurant where patrons can enjoy a rich and unique culinary experience. Kenton's journey is a testament to the power of passion and perseverance. Kenton’s culinary passions spill over into everyday life, making it a delicious blend of chaos and charm. Kenton is looking for investors to turn his bistro vision into a tangible reality. Kenton dreams big, envisioning eco-friendly Midwestern choco-shops and gourmet bistro pop-ups.
- Kenton's menu is a testament to his relentless pursuit of culinary excellence, blending unexpected ingredients and techniques. Kenton's ability to fuse Nordic simplicity with French elegance, with a playful, stoner-inspired twist, sets him apart in a crowded field. From impromptu cooking classes at the dinner table to experimenting with molecular gastronomy during lazy Sunday mornings, life with Kenton is a delicious blend of chaos and charm.
- Kenton will be stepping into the role of sous chef for an exciting pop-up event called Le Bosc. Kenton and Riley’s innovative dishes offer a taste of their unique Nordic-French stoner cuisine. Kenton's ambition isn’t just about creating delicious food; it’s about crafting an experience.
- Marrying a chef is an adventure in itself. Kenton’s culinary passions spill over into our everyday life, making for an environment that’s as dynamic as his menu.
- Kenton’s journey is a testament to the power of passion and perseverance. Starting from humble beginnings in Indiana and Michigan, he has risen through the ranks of the local culinary scene
- Investing in Kenton’s restaurant isn’t just backing a business; it’s supporting a movement. A movement towards innovative cuisine, community engagement, and the celebration of Midwestern resilience with a side of French finesse.
- Kenton is on the hunt for angel investors to help turn his bistro vision into a tangible reality. From sourcing the finest Nordic ingredients to incorporating eco-friendly practices, every detail is meticulously planned.
- Kenton remains focused on expanding his horizons. The dream restaurant is just the first step; next on his list are gourmet chocolate shops and a series of bistro pop-ups.
- Interested in supporting Kenton’s gastronomic ventures or eager to experience his mouthwatering creations firsthand? Secure your tickets for the pop-up event at [www.le-Bosc.com] and become a part of this flavorful journey today!
- Kenton’s dream is to infuse gourmet chocolates and bistro dishes into the heart of Indiana and Michigan. “The Midwest deserves a restaurant that’s as cultured as it is comforting,” he often muses.
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Medium
2w
18
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What exactly is demand response and why does it matter?
- Demand response is a strategy used to balance electricity supply and demand by incentivizing consumers to reduce or shift their energy use.
- Similar to surge pricing in Uber, demand response offers rewards or lower rates to consumers who adjust their electricity consumption during peak times.
- Efficient demand response management relies on seamless communication between utilities, the grid, and end users, enabled by smart technologies.
- As electricity demand and intermittent energy sources increase, demand response becomes crucial in maintaining a stable grid and addressing climate change challenges.
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Medium
2w
126
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Why We Invested in Hue: Bridging the Authenticity Gap in eCommerce
- Hue, an AI-powered SaaS platform, announced their $4.5M seed round co-led by Fika Ventures and Underscore.
- Hue is addressing the need for authentic and scalable user-generated video content, which is already trusted by 45 brands and retailers.
- It enables eCommerce brands to compete with unrealistic content expectations that consumers have due to platforms like TikTok, Instagram, Snap, and more.
- Hue allows consumers to filter video reviews based on their own personal attributes to make sure they are optimized for key areas of shopper interest.
- The platform integrates user-generated video content directly onto eCommerce websites and across digital marketing channels.
- Hue is solving a clear and critical short-term pain while also preparing them for a long-term future.
- The Hue team is made up of three women of color who met at Harvard Business School with a shared passion for bringing authenticity and representation to eCommerce.
- They are uniquely qualified to tackle the problem of representation for diverse skin tones, initially the number one pain point consumers have when shopping for makeup online.
- Hue is helping to shape the future of scalable authenticity in eCommerce and redefine the online shopping experience.
- Video plays an increasingly central role in eCommerce, and Hue is at the forefront of this transformation.
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Siliconangle
2w
239
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Waymo raises $5.6B to grow its autonomous taxi service
- Waymo, Alphabet's autonomous driving unit, has closed a $5.6 billion funding round led by its parent company.
- The funding will be used to enhance Waymo's autonomous driving system and expand its vehicle testing program and ride-sharing service.
- Waymo plans to bring autonomous vehicles to Austin and Atlanta through a partnership with Uber.
- The funding could also allow Waymo to invest in emerging use cases such as food delivery and autonomous freight transport.
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TechCrunch
2w
362
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Not all startups mourn IPOs, but liquidity still must flow
- Startups are no longer solely focused on reaching unicorn status and are instead prioritizing annual recurring revenue (ARR) figures.
- Vinted, a Lithuanian secondhand marketplace, was valued at €5 billion in a secondary share sale, joining the trend of European scale-ups seeking liquidity through this route.
- Telehealth company Ro's CEO, Zachariah Reitano, is open to going public but highlights the growing benefits of remaining a private company.
- Indian fintech company Groww and several other startups are relocating their headquarters to India to comply with local legislation and potentially go public more easily.
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Medium
2w
21
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Navigating Business Evaluation: The Why and The How
- Business evaluation is essential for everyone because its framework and approach apply to all things of value. There are five ways to evaluate a business: an asset-based approach, an income-based approach, a market-based approach (market sentiment), an Earning multiplier, and a Return on Investment (ROI). An evaluation approach focuses on determining a company’s value based on its net assets. The income-based approach estimates the value of an investment based on its expected future cash flows. Like discounted cash flows, it is an approach that values a business based on its expected future earnings, which are divided by a capitalization rate to determine its present value.
- A method that values a company by comparing it to similar companies based on key financial metrics, the market-based approach is influenced by market conditions and external factors, and therefore not ideal for privately held companies or companies in less stable industries. Like comparable company analysis, Precedent transactions value a company based on prices paid for similar companies in past transactions. The earnings multiplier approach determines a company’s value based on its earnings by applying a multiplier to its earnings before interest, taxes, depreciation, and amortization. The Return on Investment (ROI) approach measures the profitability of an investment by comparing the return on an investment to the cost of that investment.
- Five methods evaluate a business: An asset-based approach, an income-based approach, a market-based approach, a Return on Investment (ROI), and an Earning multiplier. The methods consider market demand, talent, capability, and product fit. Private companies' shares not traded on public exchanges, and investors typically apply a discount for the illiquidity of their stakes. Determining a company’s worth is crucial for informed investment decisions. Information is not the problem. It is the willingness to learn and overcome the confirmation bias.
- Warrant Buffet said that in his 2023 shareholder meeting, he wouldn't invest in AI because he didn't understand why it was essential. It is necessary to overcome our biases and conduct research based on all relevant information to understand a company’s value. The approach is relatively simple and helpful for valuing stable-earnings businesses. It provides a market-driven evaluation based on real-world data. It reflects the company’s productivity and potential for future growth. It is ideal for assessing the performance of specific investments, projects, or business ventures.
- The asset-based approach is easy to calculate and less subjective than others because it uses readily available financial data. It is ideal for manufacturing and oil and gas businesses. The earnings multiplier approach focuses exclusively on earnings and may not account for company risk differences, growth potential, or capital structure. The income-based approach provides a detailed analysis of future cash flows to help make long-term investment decisions.
- Like comparable company analysis, Precedent transactions heavily rely on high-quality, readily available transaction data; it can be outdated or skewed by the unique circumstances of individual transactions. Three approaches evaluating private companies are comparable company analysis, precedent transactions, and discounted cash flow. It provides a realistic valuation since it reflects actual prices paid in the market. Comparable company analysis helps benchmark company performance and gain insights through market trends.
- The market-based approach is generally not ideal for privately held companies or companies in less stable industries. The Return on Investment (ROI) approach oversimplifies complex investment decisions, focusing solely on the return on investment. The moral of the story is don’t invest in anything you don’t understand, and it is about the Mindset.
- Information is not the problem. It is the willingness to learn and overcome the confirmation bias. Several sound approaches can be used to obtain the relevant information and arrive at a reasonable conclusion when evaluating a business.
- Determining a company’s worth is crucial for informed investment decisions. To understand a company’s value, one must have the will to overcome the confirmation bias and recognize the truth. It is necessary to conduct research based on all relevant information and apply the appropriate evaluation method.
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Medium
2w
283
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How AI is Powering the Future of Material Science: From Lab to Real-World Breakthroughs
- The use of AI in material discovery has revolutionized the way researchers predict the properties of materials and scaled their innovative capabilities.
- AI is crucial to accelerate discovery, address global challenges, and optimize manufacturing in industries such as energy storage, sustainable manufacturing, and carbon capture.
- Physics-Informed Neural Networks (PINNs) and Graph Neural Networks (GNNs) are some of the AI-driven technologies used to analyze massive data sets, identify patterns, and predict material behavior.
- Both Physics AI and Physical AI tackle different aspects of material discovery, enhancing our understanding of complex scientific phenomena.
- A challenge in applying AI to material science is the scarcity of scientific data and the need for inductive bias to counteract the need for data.
- Diffusion models and generative AI models are two exciting developments in AI for material science.
- The slow pace of innovation in material science limits AI-driven breakthroughs from achieving broad commercial success due to the high cost and complexity of scaling new materials from laboratory experiments to full-scale production.
- GPU costs have dropped, which is beneficial for fields like material science that rely on vast datasets and advanced simulations that require significant computational power.
- Collaboration between startups, corporates, and investors will play a crucial role in overcoming the challenges of scaling and commercialization and unlocking unprecedented innovations.
- Hitachi Ventures and KOMPAS VC are optimistic about the possibilities and look forward to close collaboration between startups and corporates driving the materials discovery development further.
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