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A Tale of Two Markets

A Tale of Two Markets
By Keith Teare • Issue #293 • View online
Venture Boom & Wall Street Gloom
January has been all gloom for tech on Wall Street, but there is still a boom in Silicon Valley. What are the implications for Venture investors and founders of startups? Let’s dig into valuations and trends in tech investing.

I have avoided looking at my E*Trade account in 2022. I know it will not be pretty. My portfolio is made up of high growth, recently public, companies stretching from Snowflake and Cloudflare in cloud computing to Tesla, Rivian, Nio, and Li in Electric vehicles, and the Greystone Bitcoin and Ethereum Trusts in Crypto.
I have held most of the stocks for more than a year and they are having a terrible Winter. Google shows they lost about 20% of their value so far this year. Netflix lost 20% just today. On the bright side, they are collectively still up over 100% since I bought them.
I am one of the lucky ones. Peloton, which I do not own, looks like this:
It has declined by $137 from its peak a year ago. Many stocks are down well over 50%.
But then there is my private company portfolio. I have shares in several venture-backed companies. InFarm raised $200m at a valuation well over $1 billion recently. Miles closed an A round and will soon do a B. Around is prospering. Millicast grew revenue by over 300% in 2021. Kadence is booming as is Nodes & Links.
The gloom surrounding public market stocks - for me - is offset by the fact that I bought them early, and that I have private stocks doing very well.
But my 3 sons in their Robinhood accounts, are not so sanguine. And they are part of the vast majority of ordinary investors who are experiencing the re-pricing of tech stocks. Because they are not “qualified investors” they do not have the luxury I have to participate in the fast growth being experienced in the private venture-backed asset class.
Some of the readers of this newsletter are like me, and others are like my sons. This week’s curated articles focus on the discussion about venture capital and attempt to assess the impact of Wall Street on Silicon Valley. Hint, there really is not a major impact until a company approaches a public offering. Tomasz Tunguz has the lead article below.
We also re-engage the Web 3 discussion re-ignited by Prof Scott Galloway and Packy McCormack but now widely discussed in the mainstream media.
I have spent most of the week working on SignalRank - trying to build a way that will allow regular investors to participate in the growth of private companies. That work seems more important than ever this week. More in the Video.
A Tale of Two Markets: Venture Boom and Wall Street Doom
A Tale of Two Markets: Venture Boom and Wall Street Doom
A Tale of Two Markets
The Unbundling of Venture Capital
QED Investors' Frank Rotman in breaking down the venture market today, determining how to compete today, and how QED makes decisions.
Building American Dynamism | Future expands venture arm to $500 million to back early-stage web3 startups - TechCrunch
Web 3 - The Fight Continues
Scott Galloway on the False Promise of Web3
The Web3 Debate
Jack Dorsey and Marc Andreessen's Crypto Feud Puts Web3 at Risk - The New York Times
Investing in Web 3 - Too soon? or Too Late?
Andreessen Horowitz seeks $4.5bn for new crypto investments | Financial Times
Benchmark’s Approach to Crypto Takes a Page From Web 2.0
Full Interview With Benchmark’s Sarah Tavel
Europe is an Asset
Europe’s Most Active Startup Investors In 2021 Hail From Across The Globe
2021 Annual European Venture Report - PitchBook News & Analysis
Microsoft, Preparing for Web3?
Startup of the Week
Student Becomes a Millionaire After Turning Selfies Into NFTs as a Joke
Tweet of the Week
Paul Graham
"In 2021 an extraordinary ten YC companies went public."
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Keith Teare

That Was The Week is a editorialized and curated weekly look at developments in tech, startups and investing

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Keith Teare, Palo Alto, California