An Archive of the SOS Email Lists.
Elon Musk’s purchase of Twitter has been finalized, there’s a new sheriff in town, and the tech press is up in arms.
Musk in control of Twitter, ousts top executives, the AP screamed.
And what company doesn’t replace senior executives after an acquisition?
If you’re wondering why Mark Zuckerberg has poured some $15B into his metaverse project despite seeing ‘no results,’ according to the tech press, we’re wondering why no one pays attention to the man behind the curtain. Following its developer conference, Meta was roundly slammed for not being further along, given the amount of money their Reality Labs received to develop it, to the point where Facebook’s ‘desperate’ metaverse push to build features like avatar legs has Wall Street questioning the company’s future, as Business Insider reported. The publication also asked “How many more warning signs does Mark Zuckerberg need to see before he pulls the plug on his metaverse?”
Meta released a new metaverse-friendly headset, and the price tag aside, Meta’s New Headset Will Track Your Eyes for Targeted Ads, Gizmodo reported, coming yet one step closer to reading your mind. “Whether you’re resigned to targeted ads or not, this technology takes data collection to a place we’ve never seen. The Quest Pro isn’t just going to inform Meta about what you say you’re interested in, tracking your eyes and face will give the company unprecedented insight about your emotions.”
The tech times, they are a-changing. Companies are laying off big time and basically across the board, meaning companies large and small, or are in hiring freeze mode. Google employees weren’t happy when they were told that their travel and swag budgets were being cut. Oh, in case you didn’t see the memo, the days of Tech Entitlement are over, too. The economy isn’t what it was during the halcyon days of tech and, news flash – the tech sector is not immune.
Speaking of behemoths, Amazon Abandons Home Delivery Robot Tests in Latest Cost Cuts, Reuters reported. Called Scout, “The slow-moving devices, accompanied by human minders during tests, were designed to stop at a front door and pop open their lids so a customer could pick up a package. Amazon said the battery-powered robots were part of an effort to reduce greenhouse gas emissions in its delivery operations.”
Amazon is feeling the slower sales, too. Then again, the lockdowns are over, and people can go past their doorsteps once again and shop. With many smaller stores shut down in the lockdown era. Amazon was a go-to, and boom! Hockey stick growth. Now, not so much and they’re cost-cutting too, given their now ‘slow growth.’ Did the company think they’d maintain lockdown-level growth or conditions forever? Even hockey sticks have an end point – something tech and tech investors could seemingly never quite grok.
Tech is and has been referred to as the wild, wild west since the early days of Web 1. Like those pioneers who ventures out into terra incognita when the west was being settled, those web pioneers didn’t know what they’d find, and even in their travels, they were making it up as they went along.
Head’s up: the same goes for investors. There’s no startup handbook, although there are books that bear that title. There’s no investor handbook, either. Which is why founders may hear one thing from one investor, get totally different feedback/advice from another. And yet different feedback/advice from a third, and so it may go, all the way down the line.
HealthIT funding is up right now, despite the downturn in global digital health investment, with data collection being such a big part of the reason why investors are all in on the HealthIT sector. Do note that Big Tech et al is paying close attention to the space and making acquisitions.
Dr. Amazon Will See You Now, said the Wall Street Journal, noting that “Amazon and other companies are trying to disrupt the giant, inefficient U.S. healthcare sector. They’ve made little headway but a crop of upstarts is offering industry giants a chance to buy their way in.
“Amazon.com’s repeated failure to disrupt the industry underscores just how hard it is to make meaningful change.. As hard as healthcare has proven to crack, it is also too big of an opportunity to ignore. That explains why Amazon is trying again: It agreed in July to pay $3.9 billion for One Medical, a concierge-type primary-care service with nearly 200 medical offices in 25 markets… and will give Amazon the foothold in healthcare it struggled to build organically. In a not-too-distant future, your Prime membership may include a free annual checkup.”
With the downturn in the unicorn market, founders have lost much of their power with investors. “New unicorns are plummeting. Here’s how volatile markets and shrinking valuations are shifting power from founders to investors, CB Insights reported, and venture funding to startups is ebbing.
Even those certain funds and investors who had ridden to rock star status in the last decade plus with those outsized returns are being scrutinized more closely, especially by the tech press. While new funds are still being raised, existing funds raising follow on funds and investors are still writing checks – albeit more cautiously these days, Adam Newmann and A16z’s investment into Flow aside – if it’s not full-on investor winter in many quarters, we’re certainly getting close.
It’s September. The investors are back from the end of summer break and paying attention again. There are funds to be deployed, and meeting to take, the holidays will be here again before you know it and they’ll once again disappear, so it’s a good time to get that investor deck out and those meetings lined up.
We work with founders all the time, helping them to refine/write their decks, since, as we’ve said before, all founders think the 10-15 slide construct is written in stone in terms of the order of the slides, and often bury the lead. Or are so in love with the tech they’ve created, they didn’t bother to include the lead at all. And do keep in mind that your deck is a teaser. Purpose: to get you to that meeting with investors.
This week is the last hurrah of summer, so something different this time: a look at what’s been happening in Big Tech at large, primarily with a number of the FAANG companies – Facebook, Amazon, Apple, Netflix and Google, for those playing the home version – or more appropriately now MAANG, since Facebook is now Meta – and for our purposes here, MAANGO, as we’re including Oracle and some information that recently came to light. Plus, mangos are very much a summer fruit, after all.
Speaking of just when you thought it was safe to go back into the water (not!): Class-Action Lawsuit Accuses Oracle of Tracking 5 Billion People. “Oracle stands accused of collecting detailed dossiers on 5 billion people, with the information gathered including names, home addresses, emails, purchases online and in the real world, physical movements in the real world, income, interests and political views, and a detailed account of online activity,” PC Mag reported.
“This claim is backed up by a video on the ICCL website(Opens in a new window) of Oracle CEO Larry Ellison describing how the company’s real-time machine learning system collects this information and confirms the 5 billion profiles stored in the “Oracle Data Cloud.” The profiles are referred to as a “Consumers Identity Graph.””
Back in late January, Bolt founder Ryan Breslow called Stripe and Y Combinator the “Mob Bosses of Silicon Valley.” We covered it here (The SiliCON Game). True or a media stunt, we might argue that his list might have been a bit too narrow.
We also like to call them the Boys of Summer – those unicorn tech super founders, that is.
As the New York Times noted, The Boy Bosses of Silicon Valley Are on Their Way Out, dismounting their unicorns and heading for the hills, with their largesse in tow and never mind the layoffs and loss of shareholder value that they’ve left in their wake.