Dordash, Affirm, Roblox, Airbnb, C3.ai and Wish all filed to go public in recent times, meaning some venture capitalists have the best week of their lives.
Publicly known tech companies capture our imagination because they are literally happy endings. An initial public offering is the promised land for startup pilgrims, who may wander the desert for years to fit into the product-market. After all, “I” in “ISO” means “incentive”.
In a week the haggling of the new S-1s forced me to rearrange our editorial calendar, but I had no objection; Our 360-degree coverage ejected the air from various propagation balloons and exposed many unique angles.
For example: I was familiar with Affirm, The service that allows consumers to shop, but I had no idea that the peloton received 30% of its total revenue in the last quarter.
“What happens if the peloton hits the brake?” I asked Alex Wilhelm as I edited my breakdown of Affirm’s S-1. We decided to use it as a subheading for our analysis.
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Senior Editor, ClearTips
What is Roblox?
Gaming company Roblox filed to go public yesterday afternoon, so Alex Wilhelm pulled out a scalpel and dissected his S-1. Using your patent mathmagic, He analyzed Robox Fundraising history and revenue to estimate where it can be evaluated.
Noting that “public markets appear to be more risk-averse than the private world in 2020,” Alex pegged the number at “just under $ 10 billion.”
What can China’s fintech teach the world
For all the hype about new forms of payment, the way I transact has not changed fundamentally in recent years – even in tech-focused San Francisco.
Sure, I use NFC card readers to tap and pay a street musician using last weekend’s Venmo. But my landlord still demands a paper check and taps on the “cater only” registered at the coffee shop close to me.
In China, it’s a different story: Alibaba’s employee cafeteria uses facial recognition and AI to determine which foods a worker has chosen and which ones to charge. Many consumers out there use the same app to pay utility bills, movie tickets, and hamburgers.
Finance researcher Martin Chorzempa says, “Today no one uses Alipay or WeChat Pay to pay except people outside China.” “So this is a big ambiguous side that I think is going to pose a lot of geopolitical risks.”
Inside the Affiderm’s IPO filing: A look at its economics, profits and revenue concentration
The consumer lending service was confirmed to have gone public on Wednesday evening, so Alex used Thursday’s column to unpack the company’s financials.
After reviewing Affirm’s profitability, revenue and impact of COVID-19 on its bottom line, they asked (and answered: three)
- What is Affirm’s loss rate on consumer debt?
- Is its gross margin improving?
- What does Unicorn say about the contribution benefits from its lending business?
If you haven’t made $ 1B this week, you’re not doing VC right
“A rare thing more rare than a unicorn is an undeniable one,” believes managing editor Danny Crichton, who answered the “simple question – how to make money look back at Exitappleza 2020?”
Covering each exit from the point of view of the founders and investors, Danny makes it clear who will take home the biggest slice of each pie. TL; Dr. “Founders among some really great winners, and many with billions of dollars in venture capital is going home.
5 questions from Airbnb’s IPO filing
The S-1 AirBnB released early in the week provided insight into the core financials of the home-rental platform, but according to Alex Wilhelm, it raised many questions about the company’s health and long-term viability:
- How far did Airbnb booking take place during Q1 and Q2?
- Since when has AirBNB booking been back?
- Did Airbnb survive the local, long-term stay?
- Has Airbnb really made money?
- Is the company rich despite the epidemic?
Autodesk CEO Andrew Anagnost outlines the strategy behind acquiring Spacedecker
Earlier this week, Autodesk announced the purchase of Spacemaker, a Norwegian firm that develops AI-supported software for urban development.
ClearTips reporter Steve O’Hear interviewed Autodesk CEO Andrew Anagnost to learn more about the acquisition and asked why Autodesk paid $ 240 million for Spacemaker’s 115-man team and IP – especially when its There were other startups close to the Bay Area headquarters.
“They have built a real, practical, usable application that helps machine learning a part of our population that produces better results in a really important area, which is urban redevelopment and development.” Anagnost said.
“So it’s completely aligned with what we’re trying to do.”
Unpacking C3.ai IPO Filing
On Monday, Alex engaged in an IPO filing for enterprise artificial intelligence company C3.ai.
After paying attention to its ownership structure, service offerings and its last two years of revenue, he asks and answers the question: “Is the business itself any good?”
Is Internet Advertising Fracking The Economy?
In his new book, “Subprime Attention Crisis”, author / researcher Tim Hwang has attempted to answer a question that I have wondered about for years: Does advertising really work?
Managing Editor Danny Crickton interviewed Hwang to learn more about his thesis that there are similarities between today’s advertising industry and the subprime mortgage crisis that helped reverse the Great Recession.
So, are online advertising effective?
Says Hwang, “I think companies are too frugal to omit the data that will allow you to find a definitive answer to that question.”
Will zoom apps be the next hot startup platform?
Even after much population immunization against COVID-19, we are still using a large number of Zoom’s video-conferencing platforms.
This is because Zoom is not just an app: it is also a platform play for startups that add functionality using APIs, an SDK or chatbots that behave like smart assistants.
Enterprise reporter Ron Miller spoke to entrepreneurs and investors who are leveraging Zoom’s platform to build new applications with an eye to the future.
“By offering a platform for building applications that leverage meeting software, it is possible that this could be a valuable new ecosystem for startups,” says Ron.
Will EdTech empower or eliminate the need for higher education?
Without on-campus experience, many students (and their parents) are wondering how much a hostel is worth attending classes through a laptop.
Worse: Reducing enrollment is helping many institutions figure out other ways to eliminate large companies and cut costs, such as cutting employee and athletic programs.
The Edtech solution can fill the gap, but there is no real consensus in higher education about which tools work best. Many colleges and universities are using “third-party solutions to sustain the operation”, reports Natasha Mascarenhas.
“This is a stress test that can cause a backlash between edtech startups.”
3 development strategy that helped us surpass Nome and Weight Watchers
I look for guest-written additional crunch stories that will help make other entrepreneurs more successful, which is why I regularly decline submissions that seem highly promotional.
However, Heinrich Torstensen (CEO and co-founder of LifeSum) presented a post about the technologies used to scale his nutrition app over the last three years. “This is a strategy that any startup can use regardless of size or budget,” he writes.
According to Censor Tower, Lifesum is growing almost twice as fast as non-weight and weight watchers, so putting its company at the center of the story.
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Every year, we ask ClearTips journalists, VCs and our Extra Crunch readers to recommend their favorite books.
Have you read a book you want to recommend this year? Send an email with the title and a brief description of why you enjoyed it email@example.com.
We will compile suggestions and publish the list as we get closer to the holidays. These books do not need to be published in this calendar year – any book you read this year is eligible.
Please share your presentations by 30 November.
Dear Sophie: Could the H-1B co-founder be Delaware C Corp himself?
My VC partner and I are working with 50/50 co-founders on their startup – let’s call it “Newco”. We are looking for the word pre-seed.
A founder is on a green card and already works there. The other founders are from India and are working on H-1B in a large tech company.
Can H-1B co-founders lead this company? What is the time to get away from everything? If we invest, we want them to run in the field.
– Hardworking in Daily City