0:00

this episode is presented by linked to when

0:02

you have equity in the unicorn company, but

0:04

what you really need is liquidity linked

0:07

to shares

0:20

hello and welcome back to equity

0:22

a podcast about the business of startups where we

0:24

unpack the numbers and the new ones behind

0:27

the headlines my name is alex and i'm joins a

0:29

with my absolute best friends because it is a live

0:31

show and we need all troops aboard the good

0:33

ship equity natasha please say hello

0:35

hello hello

0:36

and marianne hello i hear austin

0:38

texas is nice and cool the time of year

0:40

yeah it's great hi i'm happy to see

0:43

here is no other guys from the top

0:45

how we are talking about whether

0:46

because i've turned a sea

0:48

of my office records show in it's hot here and

0:50

i was thinking that if i'm sweating marianne as

0:52

he literally turn into a puddle of human do

0:54

oh good vibes athena at

0:57

least we have get air conditioning or thing

0:58

i have my god so rare

1:01

one two and then we have changed as up a little bit

1:03

we are not on hop and because that was a little hard

1:05

to get the would have registered to show up and was have

1:07

an extra know thing to jump through so instead

1:09

run first they can tune of my daughter you

1:11

were on you tube seeking watch a video of

1:14

must be like i think we're also on facebook a

1:16

platinum i have not used in my five years i don't actually

1:18

know what that's door thing but i hear that it is

1:20

so you can tune and them realize the job

1:22

wherever else you want just not on happen

1:24

apparent

1:25

equity in the metaverse you don't have

1:27

such as soon

1:29

the horizon virtual worlds give

1:31

a real quick rundown be a deals with a week as always

1:34

for don't talk about home lister did read

1:36

and also a really need computers bringing

1:39

had gb t three to the communication center

1:41

and then we have coalition robin hood

1:43

and in batches capital and substantial quite

1:45

a lot to get to this week and we're going to start with

1:48

holster marissa this just came out taught us

1:50

yeah so this is an interesting start earth

1:52

is actually been around seven years and

1:55

if you've ever tried to sell a home than

1:57

you know how much you have

1:59

to pay income is

1:59

then when you close on that

2:02

cell and it's a lot of money

2:04

and in most cases about six percent

2:06

the european six again

2:08

as a lot of money so say you

2:10

sell your house for a five hundred

2:12

thousand dollars you're going to pay three thousand

2:15

dollars and commission though some

2:17

i'd argue that that's that's much

2:20

in terms of proportion wise that that amount the

2:22

work that avril say agent might be

2:24

putting

2:24

that would not to diminish what real estate

2:26

agents

2:27

but there are many that so like

2:29

that's just as an insulated amount of

2:31

hamish center

2:32

company homeless or was started by lindsay

2:34

mcclain who haven't experienced telling her

2:36

house and was just astounded by how much equity

2:39

she had to give up considering how little work

2:41

she thought her realtor as a due to she started

2:43

this company to get people away to list of

2:45

homes and sell them for either site and

2:47

they won't charge commission it doesn't matter how much you

2:49

sell your house for they'll charge of sea

2:52

bottom against the lowest see it's five ninety

2:54

nine highest two thousand nine hundred

2:56

ninety nine dollars from righty of services

2:58

if you want the premium plan things like photography

3:01

helping you negotiate sign

3:03

contracts coordinate something

3:06

like that so it depends on how much handholding

3:08

you want but you won't be paying more than three thousand

3:10

dollars bottom line they to freeze

3:13

ten million dollars and a series a round colored

3:15

by and thirteen and homebrew and or

3:17

look into groans

3:18

m13 is the

3:20

non-microsoft in 12

3:22

and 13 one right back

3:30

with a ruler i really like this

3:32

because it feels like it's bringing more power in the

3:34

individual and not concentrating on the platform

3:37

itself they're trying to keep the price low and

3:39

the

3:42

opposite and bring some of of the process inside

3:44

of their business this feels much more like a consumer

3:46

service versus zombies is going to need raise

3:48

a couple billion dollars in debt yeah right

3:51

or not buying pretties for not doing

3:53

that at at all they're just trying to help consumers

3:55

keep more of their

3:56

the when i a house and i think

3:58

you know there are as you can this out unless

4:00

you're out like on mls by yourself but

4:03

a lot of people are intimidated by some of the logistics

4:05

right but sir alex you're saying like will help

4:07

you with support but we're not going to charge you

4:09

an arm and a leg like commission my will help

4:12

you get three some of that tricky stuff and

4:14

you won't be charged more than three thousand dollars and

4:16

you won't be charged unless you're how cells

4:19

as someone i understand even the five ninety

4:21

nine basic plan they don't charge you that unless

4:23

your home cells you get a sense

4:25

of i guess how downturn

4:28

proof the company is right

4:30

now and on the peace the and thirteen

4:32

partner mention that it had been a strong seller's

4:34

market in real estate in recent years with

4:36

demand obviously surpassing supply

4:38

and that's what everyone telling us i don't know how close we

4:40

are that switching and so did the

4:42

capital kind of feel like insurance or did

4:44

it feel like it was going to just

4:47

go to help them sore yeah i mean if

4:49

anything i think this is a kind of is is

4:51

that we're not be hurt by his own

4:53

turn if anything it might be helped by

4:55

it and even as if is a lot of

4:57

cooling housing markets right now like

4:59

and a here after for sure it's the considerably

5:02

the fact is there are still going to be a lot of people

5:04

selling their houses and are still can

5:06

be a lot of people who would like to not

5:08

give up so much money when they do so

5:11

i don't really hurt my think that's gonna

5:13

impact this company too much do either

5:15

of you are selling sunset now

5:17

well i've seen i've seen various

5:19

home sales shows i have not

5:21

seen selling sunset is a reference to southern

5:23

california

5:24

yeah i guess is

5:26

this the other a super the reason i was

5:29

bringing them up though is it actually was my first

5:31

thought because this is betting that people are empowered

5:33

and want to sell their houses themselves

5:36

and i felix on sunset has had some

5:38

sort of role in that it was the most popular

5:40

enough looks sort of all time a with to sat here though

5:42

is attacking go him something like

5:44

it off but i do agree i think i like the fact

5:47

that is kind of funny more control and the hands of

5:49

the homeowners and sellers and that's

5:51

and good saying they seem really passionate

5:53

about this and they

5:55

said they grew revenue by over three times

5:57

from twenty twenty to twenty twenty one

6:00

so they're only i think and seventeen

6:02

states right now that they're they're looking to expand

6:05

over the country i just was a how bad

6:07

you have to feel is really agent that lindsay

6:09

mclean had to deal with an

6:12

have however prices and so under

6:14

service thirty literally bounded accompany

6:16

the stop you from doing your job and

6:19

assets that's pretty much vegas does of all

6:21

time either

6:21

this works at the same time somehow

6:23

the guy's a separate law school

6:25

on to did read the saucer this

6:28

had one of the headlines that i can recall which

6:30

is degrees cofounder as back of the company

6:32

he's left with started he built

6:34

some mystery what's going on

6:36

well thank you for commenting the headline because

6:38

we all were overthinking the heck

6:40

out of it know i

6:42

appreciate you to especially have been just like

6:45

my shoulders this week but with degree

6:47

that most recently they acquired

6:49

learn and which was founded by

6:51

the great co-founder so even play as

6:53

one of my favorite people in ad tech if i'm allowed

6:55

to say that because he has done so

6:58

much he started degree in one of the most well known

7:00

a tech company has left that to do

7:02

political organizing for organizing few years and then during

7:04

then pandemic founded two companies learn companies

7:06

and book club which is kinda masterclass

7:08

for masterclass book club and so i kind of love with this

7:10

like full circle moment where he's now going

7:13

to be the c o he's taking over from the

7:15

great the oh who stepping down and returning

7:17

to like his place obviously there's like conflict

7:19

of interest stuff though that i brought up

7:21

pretty early on in the story because you don't often

7:23

see a company acquired there

7:25

the boundary yeah so for

7:27

people like myself who are a little behind the attack

7:29

ball what is degreed and

7:31

wow how does it become one of the larger i take

7:33

success stories

7:34

oh degree that is one

7:36

of the umbrage at the forefront of the l

7:38

x p space so learning experience

7:41

platform it gives you a bunch of content

7:43

as a learner to go through and wade

7:45

through else as a thing of it as like the provider

7:47

and he was one of the first to really show up and

7:49

do that learn and was david blake's

7:51

second act and it was about taking

7:53

this idea of a learning experience pop warm and

7:55

making it more accessible for employees with

7:58

in a start up until it really did feel just

8:00

like follow up to degree in and

8:02

i don't think we'll ever get like the most specific details on

8:04

why they just didn't do it in degree in and what he says that

8:06

he left to do political organizing which he did

8:09

but of course him going back and doing

8:11

the same problem all over again in a different way

8:13

is interesting learn and comparative to

8:15

degree though has raised i think only around like twenty

8:17

million in capital while degrees has raised

8:19

over one

8:20

hundred oh so much our company

8:22

i dig this i just i'm glad to see a dick

8:24

rounds and a deck activity still happening i feel

8:26

a little marion back in two thousand twenty it was

8:28

like the hottest thing in the world and then a really tailed

8:31

off and i was concerned that all those companies were going

8:33

to die but this makes be over more optimistic

8:36

as you think it's cool when a cofounders like

8:38

hang in our i may have less dispenser

8:40

that i started but i didn't forget it

8:42

so i'm back to health that girl again

8:45

and yet to be clear he was an executive

8:47

chairman act agreed this entire time

8:49

he recused himself from the negotiation process

8:52

and he he kind of admit that he

8:54

is pretty distant he was predestined

8:56

from degree in throughout the past few years it's

8:58

if of lithium gov mitt cofounder to c o two

9:00

executive chairman to ceo yet again

9:02

i swear to god executive turbans like godparents

9:05

like it's does my theoretical a clause a

9:07

relationship it sounds really important

9:09

but still really have to show for anything other than birthdays

9:12

know you know

9:13

however the u s would definitely agree it's

9:15

like that title that you see and it just hopefully

9:17

readers know that i think they did

9:18

yeah it's it's kicking yourself upstairs

9:21

to avoid using going on down below the last

9:23

deal of the week is for a company called

9:25

dot is a i and there's a history

9:27

here with peter relented helping incubated

9:29

and discord our but i want to put that aside because what

9:31

the company does is the most interesting

9:33

thing so customer service as

9:36

we all know big industry everyone's

9:38

had to go to help or something and dealt with

9:40

a chart bought from hell like the thing that you

9:42

type in something and you can tell has decision

9:44

free and you're not fit it into one of the t

9:46

responses accosted by random stuff as you

9:48

you want to scream and curl your laptop

9:50

into the like the idea with

9:53

got a i is to bring advancements

9:55

in essentially his intelligence

9:57

medications of a tbt three and so forth

10:00

and make the chopper experience much

10:02

was miserable and so to me

10:05

that lifted the company's website a little sparse

10:07

there's no pricing information on a lot of stuff

10:09

in the attack itself and so i have a ton of question

10:11

marks yeah but the fact that the computer working on this for

10:13

about four years now has raise some

10:15

money is getting some buys as india up

10:17

on techcrunch and so forth really has me excited

10:20

because i would like to not have

10:22

to talk to people on the phone

10:24

if i can avoid it because i hate waiting

10:26

for them to show up but also i talked to computer

10:28

natasha it makes me want to scream so

10:30

if there is a middle ground i say bring

10:32

it on

10:33

i could be a goldilocks

10:35

problem to the most extreme him and

10:37

relate of or degrees i think i

10:39

definitely get into a little that of like okay

10:41

i don't want this to be completely autonomous like

10:44

what happens when i have this really

10:46

nice palm and you to keep put me back into the same

10:48

with why does your mom not that into these five buckets

10:50

and so one part of the story that really stood

10:52

out to me was that thought ai is inviting

10:54

it's enterprise customers to quote set the tone

10:57

for customer service conversations are

10:59

you set a tone eyes a suicide

11:01

is it's to help them avoid hot water but to

11:03

me setting a tone is hot water in and of itself

11:05

that are now and i got this is also

11:08

your united airlines my preferred provider

11:10

nailed on someone arise and says hello

11:12

united i my flight has been cancelled

11:15

or you lost my bag or you killed

11:17

my cat united with set the tone too dismissive

11:19

hatred of the customer and then he would shout

11:21

at you because that's what they do have

11:24

heard of this your aaa in southern gothic

11:26

you could say too bad such as you've got real mustard

11:28

seed in set the level of antagonism to

11:30

massive brands kind of like product

11:32

output

11:33

i know i'm doubly imagining it like a six

11:35

thing where you can is like dragon to be like i'm not an a good

11:37

mood today

11:37

i

11:40

didn't

11:40

like i'm all for better shot thought

11:43

you know i did dealing with customer service is often

11:45

a nightmare i guess what i'm wondering is like work

11:48

and particular about this technology what

11:50

about what they still makes

11:51

different from existing offerings

11:54

and that's kind of thing lol started figure out before

11:57

we recorded today so

11:59

be a the using next generation

12:01

natural language understanding or in l you i

12:03

think and essentially decrypt flexible virtual

12:06

agents and like this is not that much

12:08

detail out there's i read this you suppose i was

12:10

their side of poked around but it's cover the static

12:12

home pages with the contact us been so

12:14

there wasn't like a white paper that i could go read

12:16

or whatever so it's a little bit uncertain

12:19

but the average fifty million dollars have a couple rounds

12:21

pretty quietly and so there's enough faith

12:23

in the technology and with a building to actually had the

12:25

potential to make things better and that kind

12:27

of why i want to highlight because if it does

12:29

work it's gonna make dress of our lives better

12:32

but until we died still be useful see

12:34

i for doesn't work out

12:36

well perhaps also that the it's intentional

12:38

navy they don't want to give away other secrets to

12:40

cast and i want and

12:42

the coffee so or maybe the he was cigarettes

12:44

or exist was a find out but i will

12:46

say can be much worse than we currently is

12:48

i wanted or one must question on this budget

12:50

which is only thing discord have enough of a simple

12:52

approval to make making the seas pay attention

12:54

to at but how do you think discords involved

12:57

her

12:57

okay so i'm gonna go out and really care what

12:59

the so silicon valley investor peter real and

13:01

helped incubate gotta ai and

13:03

he was also on the board of discord until two

13:06

thousand and twenty and how to incubate that companies

13:08

i think we've essentially had someone

13:10

that people know involved with both

13:12

of these projects and given that discord

13:14

has become something of that

13:17

i use every week i think lots of folks do i

13:19

think it is a stamp of approval and one thing that

13:21

people do like in silicon valley's pedigree this

13:23

is why people have investments in a tour bus by

13:25

dc firms have a powerful your page

13:27

is why sanders like to have a overly

13:29

ornate linked in pit people do like to start

13:31

a signal and so forth and so discord be

13:34

a successor adding does get some way to the company

13:36

added by one of the reasons why we paid attention

13:38

to it because just was coming out we

13:40

know as done well and read setting nine figure revenues

13:42

and so forth so i think it matters more people would like

13:44

to admit i guess

13:45

yeah it's i mean it's only sort of name in that headline

13:47

some

13:48

well you gotta ai

13:51

not exactly the best thing ever and also

13:53

the you are old got dash it

13:55

and i'm like whoa that nineteen ninety four guys

14:00

dot in so yeah i'm not i'm

14:02

not as you son of the website and thing but the product

14:04

to be very hot they get okay

14:06

now we're going to pivot to coalition which

14:08

is something that i'm very excited about but don't fully understand

14:11

but because it doesn't it's not about

14:13

where i just wanna clarify the model but with you but

14:15

we are seen are new form of

14:17

investment and investment and form of network

14:20

management as way to help companies some people

14:22

we know our part of this what's going on

14:23

yeah so i'm going to try my best to

14:25

explain it but i l pause and i follow

14:28

forever because there's a lot going on here and i think that's

14:30

by intention which will get to towards the end

14:32

but a former glossy abp of com ashley

14:34

mayor who logical probably know from tuck twitter

14:36

as well as city block health co-founder toy

14:39

and a dji umbrella co-founder lindsay

14:41

oman and tribe a i co-founder

14:43

jackie nelson have teamed up to kind of

14:45

create this two pronged approach to getting

14:47

women operator into the investment

14:49

world so they closed a twelve

14:51

point five million investment vehicle

14:53

in which all four of them are going to be gps

14:56

ashley mayor's the only full-time tp

14:58

and they also created this network where

15:00

they are connecting interested operators

15:03

to to v from thrive

15:05

and general catalyst for a advice

15:08

basically those two funds will be tapping into that network

15:10

giving them the opportunity to get deals advice

15:12

and in return get a potential of upside

15:14

but not giving advice on deal making

15:17

be giving advice you portfolio companies of

15:19

those to venture capital firms if they find a match

15:21

yeah yes so essentially think of

15:23

it like general catalyst and

15:26

thrive capital will find their

15:28

videos and be really happy with them still

15:30

come to coalescence operator network

15:33

and say hey the or any these operators a good match

15:35

to give the portfolio company advice on

15:37

an ongoing basis if there isn't much

15:39

than the chosen operator will get a percent

15:41

of the upside that that deal could make

15:43

one of those frames one day it sounds a little

15:45

confusing but simply put it gives

15:48

interested investors a chances are building a portfolio

15:50

without needing to front load the capital there's no

15:52

capital extreme and from the operator side

15:54

in order to start benefiting from the investment

15:57

is so

15:57

so does my son

15:59

going these for women are

16:01

villainous thing they are former operators are

16:03

current operators they have a twelve and

16:05

a half million dollar vehicle to be able and us from also

16:08

they have a network people they now and with two

16:10

firms to venture firms i should say they're

16:12

going to help connect talent to individual

16:14

deals those firms execute and

16:16

the operators they connect themselves

16:19

not the coalition group itself will

16:21

get a small portion of the upside as potential

16:23

at that deal goes well so central operators will get

16:25

a chance to have carry on deals for

16:27

major vc firms and to call

16:29

this in crew can invest if they want

16:32

but it's not a requirement they invest

16:34

to have the operator person happen

16:36

yeah i mean i think well great

16:38

summary alex yeah like i said the

16:40

only thing i can add is like the impacted

16:42

makes beyond the technical the impact

16:44

is that know founders can turn to

16:46

cool listen for either capital from that fund

16:49

or their network for advice and no further

16:51

daily sense and buyer and investors can turn

16:53

to the from to begin building out their portfolio

16:56

and lps can put money into an operation

16:58

that is both committed to broadening severs

17:00

didn't have tables and committed

17:02

to investing in syrups so it's

17:04

a lot of things and a kind of goes to what ashley was

17:06

telling me which is to believe along the portfolio

17:08

approach to your career meaning that you should be doing a ton

17:10

of things at the same damn time

17:12

no yeah no

17:14

i have one of the question and i

17:17

guess yeah if you're start up looking for capital

17:19

city you know he should be pitching coalition

17:21

or thrives or general catalyst

17:24

yeah i mean this is the confusion that i

17:26

also had and i think will be one

17:29

that founders will have as well right now

17:31

ah she was saying that shack size kind of is

17:33

what differentiates someone from coming to coalition

17:36

the fund which would be a smaller check vs

17:38

gc or thrive because that would be a bigger type

17:40

more institutional support at this time

17:42

polish and can't lead rounds so i think of coalition

17:45

of fitting into that family and friends round while

17:47

d c or thrive said and to

17:49

the probably same area plus

17:51

some more but when it skills

17:53

i could totally see complex happening so it's a good point

17:56

in yeah to support a datapoint into

17:58

the fun size differential i just the contrary

18:00

to the original catalyst and their last three funds

18:03

the gc growth find the endurance

18:05

fund and early says fund have combined

18:07

capital two point three billion dollars versus

18:09

twelve and a half million dollars so there's

18:11

quite a discrepancy you might get one

18:13

hundred and fifty or tutor to decay from coalition

18:15

and twenty five million from d c

18:18

d kind of put it into compared of term south

18:20

unless you're raising a pre pre seed round

18:22

you're probably not going to go to college and for lead check

18:24

but you may want to have the men because as an officer

18:27

top these are people that are well known

18:29

in technology circles can make a lot of noise i

18:31

mean i don't actually sensor data box in

18:33

a which now feels like i mean brought of

18:35

ancient history

18:35

totally totally i think it really bets

18:38

on this idea where new two

18:40

years ago there was like that new york times or that still

18:42

on me and know said but it was kind

18:44

of like ever becoming an angel investor this is super

18:46

easy and everyone's doing at when in reality

18:49

that has always been a really small percent of people

18:51

even with the existence of rolling fun and

18:53

so i kind of like cool as soon as an answer

18:55

to the really hard reality of

18:57

having upfront capital as an aspiring

18:59

investor and advisor and participating

19:02

in the upside is just it's really are there for still

19:04

such a small percentage of people die and

19:06

before we move i just have to quickly point out this

19:08

is one of three new funds

19:10

that techcrunch covered this week that has

19:13

all female partners

19:15

and that's pretty damn awesome to

19:17

wealth ventures base here in austin closed

19:20

a second fun thirty five

19:22

million dollars they said was oversubscribed

19:24

they invest only invest in companies that

19:26

have a woman in in a leadership

19:28

role decision that you role of some sort

19:31

my a capital latin america clothes on a

19:33

hundred million dollars fund to

19:35

that's a lot american start of sunday to emphasize

19:37

female founders of this is all good news

19:39

oh that's so that out of odd i just saw him was prepping

19:42

not sensors close as two hundred and three million

19:44

dollars doubt you would double double what

19:46

there is in march of last year self a

19:48

lot of growth and i think really reminds

19:51

me and if i could sit for all of us this idea

19:53

that growing assets under management

19:55

with a focus on diverse entrepreneurs is like

19:58

a huge huge or

20:00

what do you gesturing alex

20:01

i'm trying to do am with my

20:03

house

20:04

i when when we can see leaders gather

20:07

some ssssss sorry no

20:10

no yes i do a high but are

20:12

you in our take on think anything will say

20:14

anything and long sorry sir

20:16

and i think said we're seeing we're lot of efforts being

20:19

made to increase the assets under management

20:21

that are targeted towards divers sounders and

20:23

towards getting diverse decision makers as

20:25

these tuck waiting tables but also

20:27

on the other and we're seeing it's always get harder

20:30

overtime said this week we also have

20:32

wouldn't listen to our next section

20:33

whoop know you before you do guy cause

20:35

more funds we've been covering of i think this is actually a pretty

20:38

key thing so dumb it would our data as

20:40

wrote about pure johnson's i think it's

20:42

i did you capital i think of was gold and

20:44

she also took a look at a number of things

20:46

about how lpc to find more to personal said this

20:48

is a topic that if you care about techcrunch has

20:50

tons and tons of coverage on we are focusing

20:53

on we care about a lot so it's really kind

20:55

of top of mine for us are also fearless fund

20:57

and areas mon i think that into this overall

20:59

cause i'm herself lots to read please

21:01

please go read it hundred percent hundred percent

21:04

lox linked to buy

21:06

shares because your life and

21:08

your dreams can't wait for your unicorn

21:10

to go public

21:11

the cash to send your kid to school link

21:14

to buys shares when a house

21:16

that feels less cramped linked to buy

21:18

shares brother in law fall

21:20

for fall get rich quick scheme again linked

21:23

to buy shares

21:24

when you have equity but what you really need

21:27

is pretty you guessed it linked

21:29

to five shares learn

21:31

more at l i n que te oh

21:33

dot com

21:40

the price is listening us to our are second to

21:43

see him him as the time over yet but

21:45

i think on the other end of the

21:48

progress being made for diverse founders

21:50

were also seeing natural struggles that pop

21:52

up over time because the landscape

21:54

is changing and it is so hard to

21:56

be a decision maker inventor

21:59

and he on breathing big fun so

22:01

this week i covered alongside dom about

22:03

backstage capital cutting majority of

22:06

it's staff just weeks after pausing net

22:08

new investments for specifics they downsides

22:10

their south from twelve to three people

22:12

and i was confirmed by the founder arlen

22:15

hamilton in a podcast published sunday

22:17

i mean a huge chains the biggest

22:19

one i've seen in a venture capital firm publicly

22:21

and the most recent weeks and the reason

22:24

it connects your previous section

22:26

is because we really often talk about how

22:28

are you can keep raising these assets under management

22:30

and is really strong that one that doesn't happen as

22:32

arlen hamilton told us in her podcast

22:35

passes capital hadn't struggling to raise new funds

22:37

somebody has to happen and in this case unfortunately

22:40

it was a majority of boxing justice

22:41

it's coming along with taught him about

22:43

his capital i was just trying to refresh my memory

22:46

and i went back to describe space data

22:48

and that's it found one was back in two thousand and

22:50

sixteen so arlen hamilton's vince

22:52

her vehicle and i was a rising public

22:54

profile she will have a good offer for quite some

22:56

time which makes this i'm a mighty rather newsy

22:59

given up with in a hotter on the show and i

23:01

think she's gonna a very good job showing that

23:03

you don't have to look like the standard

23:05

stanford graduate man in

23:07

a vast to build a vc funded that's

23:09

i think really much to recover it also can

23:11

you tell us more about the status of that is

23:13

today so they have a couple of people left or

23:15

the stone doesn't exist in provo a company that to

23:17

stop entirely i don't know where we are now

23:19

of them accents

23:20

yeah so three months ago i actually covered

23:23

bucks is hop at all which puts me

23:25

on the fact that they narrowed their investment strategies

23:27

in which they are now only participating in follow

23:29

on rounds of exist in portfolio companies

23:32

and so that happened and at the time

23:34

on him within physically sad that you

23:37

have some people it is it's as bad news but

23:39

it's not really bad news because they

23:41

are continuing to grow as the premier's met they're going

23:43

to be focusing on follow on funding

23:46

of course that's rare though right because if you're

23:48

raising money why not do both and

23:50

so now that forward to today three months later

23:52

arlen hamilton dead go pretty public

23:54

and saying that it's been hard to raise money

23:56

for their thirty million dollar opportunities

23:59

it's fun i have tried harder right now

24:01

and in her podcast she actually tells

24:03

founders to start pitching one of the twenty six

24:05

funds that she's invested prone capital in

24:08

and so to me that all kind of points towards

24:10

that same answer which is buses capital

24:12

is not active in the way that it was twelve months

24:14

ago or six months ago it's pausing in

24:16

some way and i'm not saying ending but it's

24:18

pausing yeah i mean i see to access

24:20

point you know we've been writing about

24:22

are talking about backstage capital on and some capacity

24:25

or another for several years now

24:27

and ireland's definitely said viewed as

24:29

a champion for starkly overload sounders

24:32

and she has brought a lot to the table there

24:34

for sure and and she isn't a herself invested

24:36

to to set a tosser what and that she doesn't

24:39

yeah other sense i think

24:41

you know this do some kind of made me sad honestly

24:45

it's just disappointing and she sat in her

24:47

podcast something about like i

24:49

think apple told them with the

24:51

apple told her that they were too far along

24:53

are not far along and as and that another company

24:56

sold them the opposite south i could see

24:58

where that would be really discouraging i don't

25:00

know what the future holds for backstage but

25:02

overall i could say it is certainly a little bit

25:04

below that depart

25:05

and to see the struggles they're having speaking

25:07

about things that are a little bit disheartening we've we've

25:10

paired this sequel story and or notes

25:12

with what's going on the sub stock and

25:14

i know that everyone has a view

25:16

on sub stuck everyone has their own perspective the are

25:18

your views on who they've offered kind of like

25:20

contracts to their investor base

25:23

how they approach free speech whatever put all

25:25

that aside for the minute and just kind of digest the fact

25:27

that subsectors cut thirteen people from its stuff

25:29

i think it had lost that one hundred people so i think that's a

25:32

pretty material cut of its overall

25:34

stopping and we've also covered on

25:36

techcrunch dot com a lot of notes that they've been looking to

25:38

raise more funding and essentially

25:40

with the change venture capital market valuations

25:42

base it didn't seem to work out for them as they wanted

25:45

they are cutting their costs but one thing i you know one

25:47

thing i like about some stuck i think i have one natasha

25:49

has a at least one i think we might

25:51

have a three or four between the three of us it's a place

25:53

that puts writers first and so you know as a person

25:55

who makes money typing for a living i was bummed out

25:58

to see this news because my view [unk]

25:59

the tigers is crushing that i have a backup

26:02

plan and retirement fund so

26:04

yeah i mean i think we talked about this another

26:06

previous episodes that you know that the company

26:09

had raised sixty five million last year at six

26:11

hundred sixty million dollar valuation andreessen

26:13

i guess that have a decent amount of that

26:15

funding and part of the issue is that

26:18

it's revenue was only about nine million

26:20

dollars last year so either

26:22

unknown i'm not sure why

26:25

i think that's one of the things i'm wondering about like

26:27

why it's revenue not hire

26:30

and that's

26:30

that's probably a bigger stories it

26:32

to her slow to be my that the the nine million

26:34

dollar figure i think his calendar last

26:37

year so it closed twenty twenty one

26:39

at a faster run rate so it's december

26:41

of incomes twelve was greater than nine noise

26:43

and been growing since then so we can probably

26:45

as a spy on the job or know fifteen sixteen

26:48

million dollar run that i don't like gusts

26:50

still not a ton of money but it's enough

26:53

of bacon pay much their staff with brevity

26:55

vs external capital so damn

26:57

explained to lay offs but marianne people don't like

26:59

to pay for boards on the

27:01

internet the relative them for free citing deaths

27:03

as part of that right spot

27:05

the harper with this way off is that

27:07

it is an impact a lot of h r and

27:09

writer support roles which of course

27:11

come close to home for all three of us but

27:14

subset cut thirteen jobs backstage

27:16

cut nine jobs i think some people

27:18

can have the argument that that's not that many people who

27:20

cares but to me i would never

27:22

want to get into the game where where deciding how

27:25

many people losing a job has impact

27:27

like thirteen jobs and nine jobs

27:29

are a lot of people who just lost their jobs

27:31

during like one of the hardest time that has ever

27:33

been to be a human and so i

27:36

that's just my two cents on i'm gabi wrote the story

27:38

i'm glad that me and dom wrote the backstage

27:40

story because i think it's really important to conceptualize

27:43

how many people were impacted of an overall south

27:45

we've covered the hundreds but we should also be covering

27:47

the nine and thirty

27:48

india just like walk you know if netflix cuts

27:50

one hundred two hundred three hundred people that it's a single

27:52

digit percentage of their overall stuff but if you

27:54

caught a single or double digit

27:56

number and that's a double digit percentage of

27:58

your stuff that's huge new

27:59

especially in fines and companies

28:02

that do a lot with a relatively small staff sized

28:04

you know this is not an amazon warehouse where

28:06

you have to have like hundreds of thousands of people

28:08

adventure couple from can be a dozen or two and have

28:10

announced as inviting the market because of how their model

28:13

functions so we're covering lay off you don't

28:15

love it

28:16

now not fun not everyone hates

28:18

as your phone call their been kind of mean for it's

28:20

not it's not the place you want to spend your time but

28:22

it's what the markets doing so

28:24

and will say like because we cover

28:26

funding round because it covered as growth it is as

28:29

newsworthy as the successes as newsworthy

28:31

as the if i don't want

28:33

is a failure i want to say like the change

28:35

the reacts in the present like that is also

28:37

newsworthy nine and that's as much

28:39

as yeah so have a critical like of covered

28:41

a number of companies that last year became

28:44

unicorns and in this era laying off

28:46

and or not trying to diss any one we're not trying

28:48

to like finer anything

28:50

like that is just just a fast and

28:52

doesn't like that isis or doesn't mean anyone stealing

28:55

maybe notice resetting are correcting

28:57

are trying to and found the live but yeah

28:59

we are kind of under the obligation i think follow

29:01

up on that sort of thing too

29:03

we are not trying to make fun we're not trying to

29:05

death unless you are talking about

29:07

in particular the intrusion horowitz

29:10

new media investing strategy that is apparently

29:12

but the guy was gentlemen

29:14

and bobby injuries and could have put money into

29:16

subs dot it is ray the bruins

29:18

million dollars they lead the last round

29:20

for the event reason

29:22

user recovered is one your birthday i just

29:24

learned day other day

29:25

what about reserve reward uno

29:27

user id andreessen horowitz media

29:29

content marketing

29:30

thing anderson gas guzzling

29:32

a was it was launched around the time they're pretty million

29:34

subs dogs courthouse was adding more popular

29:37

internet business the moment you

29:39

know and then interesting response more money

29:41

then let the happen to subsidize

29:44

because i just went to check if they wanted to

29:47

it up to me before that we want because

29:49

they thought they knew have you are job and turns out

29:51

it's hard okay one last the

29:53

other day is about robin hood stx

29:56

same baseman fried and what's going on

29:58

with crypto the angels and

30:01

equity the changes are just gonna rewind

30:03

the clock you a swimmer and two thousand and twenty when

30:05

everyone was saving cash and trading

30:08

and means dot for high gain stop is blowing

30:10

up the stock market ebling was kind of whimsical

30:12

and silly like yesterday destroyed

30:15

goes for that are generally those days are

30:17

behind us and robin hood is dealing with

30:19

the struggles they're often so forth and we are

30:21

now seem quite a lot of commentary about the fact

30:23

that the man behind

30:25

stx sam big when fleet or sbs

30:27

as he's known in the crypto world

30:30

might by robin hood and so i just want to start

30:32

from want high level and just get out of reactions to that's

30:34

of mariam of new saw the news over the

30:36

last week or two which think

30:37

i mean we first thought was that he no

30:40

problem has been struggling as the have clearly

30:42

sees as an opportunity even though

30:44

he denied act of discussions he temperature

30:47

for seven point six percent stake is

30:49

a company right like last month yeah

30:51

yeah so no

30:53

you did a good job actually alex and and a story

30:55

that you wrote about like why of tx

30:57

might want him by robin hood i think he did

31:00

really good job explaining it is robin

31:02

hood you know obviously is not strictly

31:04

crypto for but it does have crypto

31:06

trading on it's platform there have a whole

31:08

lot of users which might benefit

31:11

that sounds like fcx right here

31:13

as does the used to be so i was trying to personally

31:15

theory game out why this deal might

31:17

be happy why would say they've been freed by the

31:19

chunk of robin hood why might fts added

31:22

to his portfolio and the answer that exists

31:24

as as a user accounts and currently

31:26

today we are in a trough or would you may call

31:28

clipped a winter and when cooper prices to

31:30

press we do see a decline train activity

31:32

and that means that currently exchanges they make their

31:34

money off of trading based incomes

31:36

coin base robin hood etc are

31:39

in the doldrums both in terms of activity and

31:41

evaluation thought of yeah one of money and

31:43

you believe that crypto will rise again

31:45

why not buy a bunch of users our and and make lots of

31:47

money later on and so that's just what i want to say

31:49

the as were recording this i just saw

31:51

a news or the opera cnbc

31:54

i'm scared read this stx closes

31:56

in on deal to buy in battle crypto wonder

31:58

block fi for twice

31:59

it really doesn't fire sale will go

32:02

, not robin hood but fcs has

32:04

been in the market as almost like the

32:07

the sloshed safe your suspicions

32:09

is growing up

32:11

you always articulate exactly

32:13

what i'm thinking it's like you read my mind that's the

32:15

word that i said i had that i didn't say

32:18

that's not your savior

32:21

doctor

32:22

the how awkward as

32:23

that the story was that they were going

32:25

to by robin hood and now they bought block

32:28

fi re is awkward i think of awkward

32:30

well okay i think they might be trying to develop

32:32

i don't really even as i said

32:36

block fi also raised fi sign of

32:38

money last year and was supposedly growing

32:40

like fucking crazy south the

32:42

fact that it's now in a position where position so vulnerable

32:45

that it can be picked up by f t axis f t

32:47

notable yeah that is insane

32:49

so let's play a game natasha how

32:51

much money according yeah

32:57

, have you i hate it when i've done this show enough for

32:59

people that are like i know what's coming back to playing

33:01

exactly you answer your questions questions

33:04

so i mean not including the

33:06

two hundred and fifty million dollars in debt financing

33:08

from block fi the raised in june june

33:11

twenty first which is a about a week ago

33:13

on there is like i think one point one billion dollars

33:16

so if they are sold for twenty five dollars

33:18

is equivalent to i dunno like

33:20

a fill up in a and are free like a hotdog from

33:22

the gas station like it's essentially zero dollars really

33:27

they the crypto market we're not talking about today because of

33:29

it's bad for dot really changing too

33:32

much last couple of days but dog yeah this

33:34

is data point about where things are anyways

33:36

apparently they're going to a block fi for cheap

33:38

so why not by robin hood

33:39

oh my god we need to get sued reaction on

33:42

harrods as a lot of others for as i guess because

33:44

i wish we could just like dial of friends i wish it was

33:46

like that you are to successfully

33:48

think that's crazy

33:50

yeah you get jackie and i need and

33:52

lucas to do like a fired or what

33:54

you thought rapid fire around a lion round

33:56

of responses to do this because i am

33:59

a pro last by how quickly everything

34:01

fell apart i do but thesis though about what's

34:03

happening in crypto

34:04

dude how

34:06

though one thing you can do if

34:08

you create a product category

34:10

that is inherently based on tradable assets

34:13

is lever up dramatically

34:16

and long people money let them

34:18

have more leverage they can make larger baths

34:20

and everything's going out there can be tough on

34:23

a positive reinforcement effect going up and

34:25

urban how leavers up more of things going up of of

34:27

a loss and then the moment snaps

34:29

and having terms of a sudden evans

34:32

who in the wrong end of that particular trait in southern

34:34

that to damage cascades and elmo

34:36

that a contagion style format and i wonder

34:38

if like three a c and block

34:40

fi in celsius and terror

34:43

moon i'd blob of our of all this is

34:45

kind of the same issue working it's way

34:47

through the system that maya my theory crafting

34:49

own of the early

34:50

well and and i'm certainly louder

34:52

voices within these companies that are making

34:54

even if that task it hasn't yet hate you i'm i'm

34:56

sure there's a lead time where people can be they're seeing

34:59

what kind of them as they actually brought on

35:01

are the ones that were comfortable as for

35:03

a long term or just for the moment or fairweather

35:06

yeah

35:07

when they are somewhat of a like there's

35:09

so much to a libertarian triesman a

35:11

dozen a media company

35:12

i will have

35:14

a piece as is our and reason why see

35:16

and product hunt this weekend on pc months

35:18

so everyone said check it out

35:21

not not not abroad but i i happen

35:23

to have already read this and

35:25

fired at out and fired at with his

35:27

had taken the one with a hot takes

35:29

then again and and will have

35:31

a good time i see is probably the

35:33

thing that i've had the most fun reading from texas

35:35

and last month and so sorry

35:38

i love you too i was so much but like and

35:40

is because we would also like you really did just

35:42

flat out of the

35:43

they'll kill i can't wait to read

35:45

as

35:45

they do not agree on saturday for

35:47

am pacific design

35:50

agencies this guy girl has been to settlements

35:52

ergo so eager to be set up know

35:54

some stop

35:55

i guess i'm marianne over

35:57

time the i haven't too much

35:59

on here today

35:59

i'll get bored i was equity we are live

36:02

on thursdays sometimes and this comes out on friday

36:04

robert monday july fourth will be here tuesday

36:07

wednesday and friday next week we do you must

36:09

hi

36:21

everyone this is lucas mapping and i'm

36:23

anita ramaswamy we're launching a new tech

36:25

crunch podcast called chain reaction

36:27

digging into the world of crypto currencies

36:29

and if teas and web three crypto

36:34

hills and valleys most influential and sisters

36:36

and founders griping is the future

36:38

the internet controversial mission

36:40

and one still dominated by scams and

36:43

infighting and whole block by

36:45

block

36:46

each way while unpack and explained

36:48

the latest news drama and trends in plain

36:50

english for the crypto syria will

36:52

be learning alongside you if i interviewing so

36:54

as the saudis investors entrepreneurs

36:57

and steps it along the way subscribe

36:59

now and your favorite podcast that was

37:02

the of them