Operating at the Intersection of Technology and the Capital Markets
Category: Venture Capital
The price increases of goods and services in 2021, 2022 and YTD combined with higher interest rates have ensured that a recession will follow. The economic damage is done. The Fed could take interest rates to zero percent tomorrow and restart QE and it would not stave off this recession. Prices for goods and services … Continue reading This Economic Recession Is Baked In
The present market hype around all things AI has driven equity valuations beyond what is reasonable. Is it rational that NVDA shares are up 30% over the past 5 days? NO. Is OpenAI worth the implied $29 Billion as a result of its recent $300 million venture round? NO. Is C3 ai's (ticker: AI) 5 … Continue reading AI Hype and Equity Valuations
Below is the high-level outline for our next book to be published as an Amazon Kindle book later this summer. The book will be focused on CEO communications with public company investors. I. Define Your Company What We Do & How We Do It How We Create Customer Value How We Create A Sustainable Competitive … Continue reading Communicating with Investors: A CEO Handbook
The best CEOs drive the business during economic downturns as well as during good times. Having operating targets large and small across all facets of the operation supported by incentive-based compensation systems greatly increases the probability of driving superior operating performance. The best CEOs define a mother mission. It is ideal if the mission is … Continue reading The Best CEOs
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We recently wrote that there were more Tech-related layoffs in Q4 2022 than during the COVID trough in Q2 2020. Approximately 23% more Tech-related layoffs (73,899) occurred during Q4 2022 versus the COVID trough (60,141), in Q2 2020. There is plenty more room to cut. One thing is for sure - there is more room … Continue reading Was Q4 The Bottom For Tech Layoffs?
Why the venture community invested in kids running crypto exchanges is beyond me. If the venture firms that put money into FTX did an ounce of due diligence they would have passed on the deal. Did anyone ask to confirm bank deposits and customer reserves? Did anyone ask about customer trading records and associated reporting … Continue reading Investor Due Diligence. You Get What You Deserve.
You are crazy if you do not believe that most if not all of the various crypto exchanges were/are front-running customer orders. Similarly, robbing Peter to pay Paul crypto Ponzi schemes make Madoff look like an amateur when one considers total AUM. The SEC ought to have stepped in under Trump and regulated the exchanges … Continue reading Enjoying The Crypto Winter
Zuckerberg is an entrepreneur at heart, not an operator. Therein lies the problem. Our view is that as the macro environment continues to slow and as the original Facebook and Instagram platforms underperform, Zuckerberg will pull investment forward on his metaverse initiative. The metaverse is what interests Zuckerberg and that's where he will spend his … Continue reading META’s Downside Risk
The grow-at-all-costs venture capital culture of the past 20-plus years ruins companies. How? Far too much focus is placed on revenue growth at the expense of sound operations and profitability. Too many venture-backed companies grow at a pace that far outstrips those companies' ability to scale operations in a manner that supports growth. The result … Continue reading VC Culture Ruins Companies
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