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StorySherpa: Explosive Drones and Deflating Valuations

Sauid Oil is burning, just like VC money in WeWork
StorySherpa: Explosive Drones and Deflating Valuations
By Yury Molodtsov • Issue #60 • View online
Sauid Oil is burning, just like VC money in WeWork

Saudi Oil Production Cut in Half After Drone Attack from Yemen
How Adam Neumann’s Over-the-Top Style Built WeWork. ‘This Is Not the Way Everybody Behaves.’
How Automattic wants to build the operating system of the web
Recipe for disaster: The meteoric rise and ongoing demise of Blue Apron
Google's Waymo Asked People To Test Its Semi-Autonomous Car Tech. What Happened Next Will Not Surprise You
Lots of excitingly interesting threads on Twitter in the past week so brace yourselves.

Josh Wolfe

Of the $95B of Vision Fund 1
-$25B came from Softbank itself
-$60B came from Saudis + Abu Dhabi
-$10B others

Of the 80 investments made
-5 had IPOs
-4 are below IPO price
-Only 1 (Guardant Health) is up
I’d suggest to read the whole thread, but generally Ryan is talking about how more and more people move to private closed platforms in the same time turning them into something from the old web — Telegram or Discord groups with thousands of people basically operate like old-fashioned bulletin boards.
Ryan Broderick
I think the internet is breaking up again and moving back towards the way it was in the mid-00s and I have several observations about this I'm going to dump in a thread.

The TL;DR is that grassroots internet use is both good and will create all kinds of fun new social problems.
Talk about Amazon utilizing its monopolistic position.
Jeff Morris Jr.
Amazon is now straight copying Allbirds.

We have reached "peak cloning" in Silicon Valley.

There are no rules anymore - if you build a product that works, Amazon or Facebook will copy it.

People used to care. Not anymore.
Something I tend to agree more and more with. People enjoy tech and the general audience doesn’t care too much about privacy in their products, otherwise DuckDuckGo would have more than 0.18% of global searches.
Antonio García Martínez
It's really normie media and political elites (NYC and DC) I'm talking about here.

The average person is not in frothing conniptions about tech, and likes their gadgets.

(Crusaders though, who live on Twitter, think they're leading a populist army.)
Datadog is one of the recent IPOs of a successful company (i.e. profitable). The thing is, when your stock surges by tens of percent points after the IPO – it means it was mispriced and it’s the new, shortest investors who benefit from that difference while the private investors and employees are usually locked-in.
Bill Gurley
The Datadog ($DDOG) IPO today was just another example of how the broken, hand-allocated IPO process results in a extremely large 1-day wealth transfer from the owners of the company to funds that have held the stock for less than 24 hours.
Bill Gurley
Because of this 39% "pop" the true cost of capital for this IPO is the fee (likely 5-6%) plus the mis-pricing discount. So in this case 45% - which is insane. This underpricing is now systematic. Over past 10-years the average VC-backed IPO is underpriced by 21.1% (Jay Ritter)
Bill Gurley
If you look at where that ownership would have resided were supply and demand matched, you see that this process cost investors $175mm & founders $69mm. Unfortunately, it also cost employees who would have $49mm more of the company were it not underpriced.
Ben Carlson
This is just like the dot-com bubble

except every high profile tech IPO is getting slaughtered

and the most egregiously valued private company can’t figure out how to go public

and retail investors are indexing instead of quitting their job to day trade

But other than that
Alex Rampell tells a short version of a fascinating story behind VISA payment network. Bank of America is behind it, and it was a local challenger bank back then.
Alex Rampell
1/ September 18th marks the 61st anniversary of the most valuable network effect of all time: the credit card. How did we get here? Read on. And read @opinion_joe ‘s book “Piece of the Action” for more...
Alex Rampell
13/ Within 3 months, BoA was expanding concentrically -- to Modesto to the north and Bakersfield to the south, and within a year San Francisco, Sacramento, and Los Angeles. Within 13 months of Fresno, there were 2 million cards issued and 20,000 merchants onboarded.
Alex Rampell
19/ Eventually, BankAmericard became a non-profit consortium called Visa -- uniting many banks with competing credit cards. A competing consortium called MasterCharge, later MasterCard, did the same with another set of banks.
“Our government doesn’t block this product” is turning into a clear advantage some companies around the world are proud of. Sad state of the modern Internet.
matthew nf wu
the day that conferencing service/app Zoom is blocked in China, this ad by a competitor circulates

it basically says, if you want a conferencing service that won't get shut down choose ours bc it operates in accordance with Chinese laws and regulations...
Did you enjoy this issue?
Yury Molodtsov

I'm an Investor at Day One Ventures, a venture capital firm that invests in tech startups and leads their communications.

Here I look at tech news I find important and the future they might lead us.

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