It was Aileen Lee of Cowboy Ventures who coined the term ‘unicorn.’ Now she has taken a fresh look: Welcome Back to the Unicorn Club, 10 Years Later. A lot changes in ten years, especially in tech.
As Lee observed, ten years ago, the majority of unicorns were consumer focused. Now, the pendulum has swung hard to enterprise, and the herd is about to be thinned – for now -, as many a so-called unicorn is a ‘papercorn.’ Capital efficiency has dropped precipitously, Silicon Valley is no longer the unicorn hub (“The Bay Area is still the largest unicorn pasture, but lost a lot of ground”). She also predicts that AI will be a superunicorn.
Facebook was the standout beast in 2013, but our question is, how good is a unicorn’s eyesight? One would think or at least hope that unicorns are visionaries in some way (preferably in a good way), but the two terms are hardly interchangeable. Apple co-founder Steve Jobs certainly was that square peg in the round hole who was crazy enough to think that he could change the world – in a good way – and he did. The iPod, the iPhone. The NeXt cube, that changed computers forever. Jobs was no doubt a visionary, and a design genius.Read More...
We’re under the weather this week. This is not a reference to the cold spell sweeping across the US: we’re literally down with a stomach flu, and the perfect opportunity to report American Dialect’s 2023 Word of the Year – “Enshittification,” as we feel like, well, need we spell it out?
The word “became popular in 2023 after it was used in a blog post by author Cory Doctorow, who used it to describe how digital platforms can become worse and worse. “Here is how platforms die: first, they are good to their users; then they abuse their users to make things better for their business customers; finally, they abuse those business customers to claw back all the value for themselves. Then, they die. I call this enshittification,” Doctorow wrote on his Pluralistic blog.”
The good news is, re this stomach bug, we will recover. What about those platforms? “Gen Z is crazy about a handful of online platforms including Twitch, Reddit, TikTok, Imgur, Unfold, Brat, NTWRK, and Lomotif,” according to Business Insider, while Later reports that YouTube is their online entertainment channel of choice, “and TikTok (68%) and Snapchat (67%) aren’t too far behind. Interestingly, the platform that has really skyrocketed in this group is BeReal, as according to zdnet, “On BeReal you cannot have followers. Similar to the earliest forms of social networking sites (remember AIM), on the app you have friends instead of followers and only these select groups of people can see your posts. This takes away the pressure of wanting to curate a perfect public image and brings back the fun of sharing content only with your friends.”Read More...
Almost all startups pivot at some point. This we know. Since many people consider a new year a new/clean slate as well and a good time to reflect on where you’ve been/where you’re going, we decided it’s a good time to talk about the pivot.
We recently hosted an investor at one of our Online Insights who mentioned a unicorn exit from one of their portfolio companies. We knew the founder. Very sharp guy who had majorly pivoted not long after said investor’s fund had invested in them. One of the partners had spoken at our Insights not long after the pivot and was livid: this was not what he had invested in.
Well, how often do investors mention that the ‘team’ is one of their top considerations when it comes to deciding to whom to write the check? Just a few short years following the pivot, the company had a serious unicorn exit. The founder also happened to be something of a subject matter expert, rethought the approach, did a major change of direction – and did we mention the company had a serious unicorn exit? Apologies, but we have learned from experience that one of the major always unnamed problems when it comes to why startups fail is that founders don’t listen.Read More...
23 Memorable People and Peccadillos of Tech in ’23 – Part Two
As we were saying last week, with the year drawing to a close, here are our final dozen picks for the people and peccadillos in a very odd year.
While not everything mentioned in these points might not necessarily have started this year, it was a year when they’ve certainly been ramped up and time to take a closer look. In no particular order:
Climate change. Fact: the climate has been changing since long before mankind came along and started exploiting fossil fuels, but never underestimate hubris. Or (dare we say it?) possible manipulation.Read More...
The 23 Memorable People & ‘Peccadillos’ of ’23 – Part One
Image by Rosy / Bad Homburg / Germany from Pixabay
Remember all the dumb things you did when you were 23 and thought you knew everything? No, the year wasn’t all bad. Then again, when you were 23, you had your moments, too…
We’ve made our list and checked it twice, so without further ado, the people and peccadillos of the year that’s coming to an end, but the real question is, in many cases, when – and where – does it stop?
Sam Bankman-Fried. He held our attention for quite a spell, as tales of his exploits were revealed: defrauding investors left and right and spending money like it grew on trees. Which it did for him: shake the tree and there were even more funds in the FTX coffers. The one-time crypto king believed that his true strength was in his hair and that those carefully unkempt locks made all the difference in his meteoric rise. Maybe they did for a spell, but speaking of locks, fraud is fraud and the former wunderkind is heading to prison for an even longer spell.
The new cryminal class. SBF tops long list of crypto hot shots facing legal reckoning. “His case was far from the first — or last — time that crypto founders and executives found themselves in legal hot water related to their digital-asset activities,” the Toronto Sun pointed out. There was also Terraform Labs co-founder Do Kwon; Alex Mashinsky, the former chief executive of Celsius Network; Su Zhu, co-founder of the bankrupt Three Arrows Capital hedge fund and Thomas Smith, Kyle Nagy, and Braden Karony — the people behind the crypto token SafeMoon, who were accused by federal prosecutors of using millions in investors’ funds to buy luxury homes and McClaren sports cars. When you can live that large is so short an amount of time, chances are there’s a small cell in your future.
Biometrics collection is certainly growing. Read More...
We sometimes like to look at various parts of tech and do the math. We know that climate change and reducing the carbon footprint is a high priority for the planet, because Al Gore warned us in 2009 that “the North Pole will be ice-free in the summer by 2013 because of man-made global warming.” According to life-long politician/non-scientist Gore, carbon emissions are the culprit and note to self: that didn’t happen. Which may have contributed to the president of Cop28, Sultan Al Jaber’s, claim that “there is “no science” indicating that a phase-out of fossil fuels is needed to restrict global heating to 1.5C,” as The Guardian reported.
If the billionaires who flew to the Cop28 are so concerned about carbon emissions and the seas rising, why did they all fly to the summit on private jets and own beachfront properties? In fact, “Jeff Bezos’ Superyacht Generates 447 Times the Yearly Carbon Emissions of Average US Household,” said Gulf Insider. And “the Tennessee Center for Policy Research charged (in 2007, just after he won the Oscar for An Inconvenient Truth, his documentary about the coming climate ‘disaster’) that the gas and electric bills for the former vice president’s 20-room home and pool house devoured nearly 221,000 kilowatt-hours in 2006, more than 20 times the national average of 10,656 kilowatt-hours,” ABC News reported.Read More...
It’s that time of year. Holiday season and no matter how many tree lightings there are to see or gift lists to address, before we break out the eggnog, time for a reality check.
We know that ‘get funded’ is on every founder’s holiday wish list. It’s not impossible, but having worked in retail advertising, we will tell you that the holiday catalogs are compiled and put to bed in August.
Which is when you should have started, if you wanted to at least have had a shot at Santa checking that one off his list.Read More...
Unless you’ve been cut off from all worldly communications, you’ve heard that co-founder and CEO Sam Altman was very unceremoniously booted from OpenAI – and was informed in a Google Meet, despite Microsoft being a major OpenAI investor and partner.
No one seems to know the precise reason why he was terminated. Malfeasance? Was it his reported lack of transparency with the board, which now consists of three independent directors holding no equity, and its Chief Scientist Ilya Sutskever? A coup?
Or something quite different transpiring behind the curtain…Read More...
No one wants to say it out loud, but is the latest tech bubble bursting? While the Web 1.0 demise was a result of too much money chasing too much youth and inexperience, this time around it’s different: It’s a result of a different kind of huckster class which has woven itself into the fabric of tech.
And many investors were complicit.
WeWorked It
Yes, he did, ‘he’ being Adam Neumann, the company’s charismatic founder/showman who somehow convinced investors that WeWork was a tech company, and not just another real estate play. Tech startups were drawn to the space, but being able to rent office space using an online system doesn’t make you a tech company. There was WeWork Labs, but it was something of an accelerator by any other name and which other accelerator considers itself a tech company? WeWork’s rapid expansion into new spaces and more cities did grab attention, as they’d almost instantly be 90+% full, it would be announced. Although the play was to rent ten floors, build out three, fill them, and as for the floors that hadn’t been converted? Details! Kick the can down the road and stick to the plan to show hockey stick growth.Read More...
