It’s been a stressful week in a stressful couple of years to the point where one barely knows where the road forward is anymore since the landscape is shifting so rapidly.
Given its global footprint, the tech sector is not immune from disruptive global events:
First, Mykhailo Fedorov, who is Ukraine’s Minister of Digital Transformation Urges Apple’s CEO to take action and stop selling products and services in the Russian Federation.
Short and sweet due to President’s Day Weekend and speaking of the men in charge, think about this:
Jeff Bezos stepped back from the daily grind at Amazon (he’s still Executive Chairman and very much involved, trust us);
Google founders Larry Page and Sergey Brin retreated from the spotlight at Alphabet/Google long ago.
Technologies change with time and circumstances. The lockdowns brought the rise of Zoom, Peloton and Hopin, to name a few. But times change, as do needs and fortunes.
While much attention given of late to Peloton, it’s also notable that Virtual events platform Hopin cut(s) 12% of staff, citing goal of ‘sustainable growth.’ As Techcrunch reported, “Following unprecedented growth and several acquisitions, we are reorganizing to align with our goals for greater efficiency and sustainable growth,” the company said in a statement…Hopin acquired five companies in just 2021, including a $250 million purchase of StreamYard.”
David Bowie said that tomorrow belongs to those who can hear it coming, and as TechCrunch noted, Hopin “merely 11 months prior…closed a $400 million raise at a $5.65 billion valuation. Then (founder Johnny) Boufarhat told TechCrunch that “his company intends on being operationally IPO-ready next year.”
f you’ve been following what’s been going on lately in tech and focusing on the headlines, you might have missed the forest through the trees.
Silicon Valley Disruption Part 1:
Facebook just lost half a million users, the headlines screamed (out of nearly 2B, and no bigs, you’d think, but a) they’re not growing, b) those users are in the US: prime market, which meant they took a big hit on their profits and c) it’s the first time ever that FB lost users), and the stock was devalued 20%, wiping $200BN off the value of parent-firm Meta. Of course, founder Mark Zuckerberg was quick to come up with the excuses, par usual (ever notice that it’s never his bad?):
What captured the attention of the Twitterverse of late was the thread from Bolt founder Ryan Breslow (@theryanking) who called out the Silicon Valley Mob. We quote: “two forces have the most power in Silicon Valley. And like… tenfold more than anyone else. Their names: Stripe and YCombinator. The kicker → Their power is in how they work together. Stripe is the darling child of Silicon Valley. Early to YC (YCombinator), Stripe made payment processing APIs easy and signed up all their YC batchmates to use their product. The “official payment processor for YC”, Stripe became a HOT company. Sequoia, the most powerful VC firm in the world, went all-in. Their position today is upwards of $20-$30B in Stripe stock.
“Three forces combined quickly: 1/ The most powerful VC firm in the world. 2/ The most powerful startup accelerator in the world. 3/ The most powerful startup in the world, with the help of #1 and #2.”
It was President Dwight D. Eisenhower who said that when leaving office, although most people quote his warning to beware the military industrial complex. He was right on both counts, but the former seems just a bit more prescient at this juncture.
The news that grabbed the headlines this week was Microsoft’s $70B bid for the troubled Activision (Microsoft’s Activision buy could shake up gaming), but the real news is that Microsoft is bigger than Google, Amazon and Facebook. But now lawmakers treat it like an ally in antitrust battles.
Odd, given that so much attention is focused these days on anti-trust and Big Tech and note to self, the acquisition would make Microsoft bigger in the gaming space than Nintendo. This, as we stand at the threshold of the metaverse and given Microsoft’s ownership of LinkedIn, this would consolidate its position in the metaverse in both work and play.
If your reaction to the above was ‘who cares?,’ do not pass go, do not collect $200. How can we so quickly forget one of the seminal unicorns of Web 2.0.
Theranos founder Elizabeth Holmes was convicted of four of the 11 counts of fraud brought against her (three of the charges were dismissed and the jury was deadlocked on the other four, so it may not be over yet), and while she may serve (a reportedly fairly negligible amount of) jailtime, did this send chills through Silicon Valley, which at this point has become a generic term, like ‘Band-Aid’ and ‘google,’ considering that Report: Californians Leaving for Texas So Rapidly, U-Haul Ran Out of Trucks?
Will this verdict be a wake-up call? The Elizabeth Holmes verdict: Silicon Valley’s reckoning or a single bad apple? Will the guilty verdict change “fake it ’till you make it” culture?, the Mercury News asked. “Experts say the guilty verdict and the potential prison sentence it carries are sure to send a chill down the spines of entrepreneurs and investors — especially in the health care field — and prompt them to tread carefully. But it may not be the major reckoning that some have been clamoring for in Silicon Valley, where criminal charges remain rare and money continues to flow.”
The reference is the third book in Douglas Adams’ Hitchhiker’s Guide to the Galaxy series, The Answer to Life, the Universe and Everything, FYI.
It’s traditional at this time of the year to either look back at the best/worst ofs from the year before, or to prognosticate about the year ahead.
This point in the trajectory of tech feels different, as we venture across the threshold of Web 3.0. meaning that there have been two prior iterations:
According to an audience survey conducted by Yahoo Finance, Facebook/Meta takes the prize, hands down, with 50% more votes than its competitor, Alibaba. According to the article, “its stock price is up 22% year-to-date — strong, but lagging the S&P 500— but down around 13% from its September high.”
So how does one achieve such a dubious honor? Well, there’s CEO and founder Mark Zuckerberg himself, whose list of missteps are just too long to enumerate, considering that many of you no doubt still have holiday shopping to get done and this wouldn’t necessarily be the holiday list worth getting into – again – despite the fact that it is that time of the year.
Then there were “The Facebook Files, a series of investigative reports published by the Wall Street Journal and based on leaks provided by whistleblower Frances Haugen. Much of the publicity around the leaks focused on the impact of Instagram (a subsidiary of Meta Platforms) on teenage girls, and the company’s alleged indifference… Haugen also alleged that Facebook’s potential for radicalization has contributed to genocides in Myanmar and Ethiopia, among a myriad of other concerns expressed in the reports,” as ZeroHedge reminded us.
We used to play competitive field hockey. Center halfback. Winning team and why? We and our center forward had a strategy: Yours Truly always fell back – to the least protected part of the field – rather than shadowing her. She would invariably get the ball at some point, send it to us, who would guard it until she was in position to score, return it to her. Score! Game over. Worked every time.
It’s one thing to skate to where the puck is going, as per ice hockey great Wayne Gretzky’s advice. And quite another to follow the strategy/keep an eye on the field at large. Which is also potentially a winning play.
As a result of our lessons from field hockey, we personally don’t necessarily only follow where the puck is going, but rather, attempt to sort out the underlying strategy as well – and look to what else is happening on the field. For example, it was recently widely reported that Elon Musk says the US should ‘get rid of all’ government subsidies re EVs. As The Verge said, “Musk’s companies have benefitted from many different federal and state subsidies over the years, and the government is a major SpaceX customer (though SpaceX won much of that business by dramatically undercutting the prices of established players). Tesla has also found tremendous success in China after receiving lots of help from the central government there. Musk said Monday that Tesla “did not anticipate any subsidies” when the company was in its early years.