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The New York Times has a new year's resolution β to get in shape. It plans to do so by splashing $550m in cash on acquiring The Athletic, the sports media start-up founded in 2016.
The idea that millions of people would be willing to pay $5 or even $10 a month for coverage of their favorite sports was a fairly wild one back in 2016. After all, there were already plenty of free opinions to read on the internet. But, The Athletic didn't listen to any of that conventional wisdom, building a 1.2 million subscriber base.
To get there The Athletic took a leaf out of the early Facebook growth model, targeting specific sports city by city, as Facebook did with colleges.
From the NYTimes perspective this deal is a big step towards achieving the company's target of 10 million paid subscribers by 2025 and strengthens their sports coverage.
The New York Times has a new year's resolution β to get in shape. It plans to do so by splashing $550m in cash on acquiring The Athletic, the sports media start-up founded in 2016.
The idea that millions of people would be willing to pay $5 or even $10 a month for coverage of their favorite sports was a fairly wild one back in 2016. After all, there were already plenty of free opinions to read on the internet. But, The Athletic didn't listen to any of that conventional wisdom, building a 1.2 million subscriber base.
To get there The Athletic took a leaf out of the early Facebook growth model, targeting specific sports city by city, as Facebook did with colleges.
From the NYTimes perspective this deal is a big step towards achieving the company's target of 10 million paid subscribers by 2025 and strengthens their sports coverage.
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Myopia, or short-sightedness, is on the rise.
Data from the BHVI predicts that by 2050 almost half of the global population could be affected by Myopia β more than a doubling of the rate from the year 2000.
Has the pandemic made it worse?
With increased amounts of screen-time, it feels intuitive that our eyes might have been put under more strain in the last two years β and there's a decent amount of scientific evidence to back that up, as myopia has long been associated with spending more time indoors.
Although there haven't been any conclusive studies in adults since the pandemic, a study of children in Hong Kong from 2021 found that "the rate of nearsightedness that developed during the pandemic more than doubled what was found in a pre-pandemic study of children the same age". Good time to be a glasses maker.
Myopia, or short-sightedness, is on the rise.
Data from the BHVI predicts that by 2050 almost half of the global population could be affected by Myopia β more than a doubling of the rate from the year 2000.
Has the pandemic made it worse?
With increased amounts of screen-time, it feels intuitive that our eyes might have been put under more strain in the last two years β and there's a decent amount of scientific evidence to back that up, as myopia has long been associated with spending more time indoors.
Although there haven't been any conclusive studies in adults since the pandemic, a study of children in Hong Kong from 2021 found that "the rate of nearsightedness that developed during the pandemic more than doubled what was found in a pre-pandemic study of children the same age". Good time to be a glasses maker.
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Fast Mexican (or Tex-Mex) food is a really hot market β and Chipotle is catching up to Taco Bell, the biggest Mexican-based fast food chain in the US. Last year Taco Bell's sales were flat YoY, but Chipotle grew 7%.
So it's interesting that recently Taco Bell announced its latest innovation to re-invigorate growth: the Taco Lover's Pass subscription, which gives you one taco a day for a whole month for $10.
The idea is that you might stop by Taco Bell for your free taco, and decide that actually you were hungry and thirsty after all, and end up adding to your order.
Taco Bell isn't the first to experiment with subscriptions. Panera has one for drinks, and Sweetgreen just launched a loyalty subscription for its salads.
So far the jury's out on whether these subscriptions actually work, or if they're more of a short-term gimmick.
Fast Mexican (or Tex-Mex) food is a really hot market β and Chipotle is catching up to Taco Bell, the biggest Mexican-based fast food chain in the US. Last year Taco Bell's sales were flat YoY, but Chipotle grew 7%.
So it's interesting that recently Taco Bell announced its latest innovation to re-invigorate growth: the Taco Lover's Pass subscription, which gives you one taco a day for a whole month for $10.
The idea is that you might stop by Taco Bell for your free taco, and decide that actually you were hungry and thirsty after all, and end up adding to your order.
Taco Bell isn't the first to experiment with subscriptions. Panera has one for drinks, and Sweetgreen just launched a loyalty subscription for its salads.
So far the jury's out on whether these subscriptions actually work, or if they're more of a short-term gimmick.
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Zynga, the gaming giant responsible for FarmVille, Words With Friends, Zynga Poker, Mafia Wars and many others is getting bought for $12.7 billion by Take-Two Interactive, the publisher behind Grand Theft Auto and the 2K sports series, in one of the biggest video game deals ever.
From its founding in 2004, until it hit one billion active users in 2012, the early years of Facebook presented an enormous opportunity for game makers. Facebook's rise meant that game makers could get in front of millions of procrastinating people by building a game directly into the Facebook platform, instead of competing for traffic on the wider internet.
Zynga took advantage of that creating some of the most popular Facebook games. Every time you, or that distant cousin, successfully "invited" someone to play FarmVille on Facebook, Zynga got a new user, for free.
Zynga, the gaming giant responsible for FarmVille, Words With Friends, Zynga Poker, Mafia Wars and many others is getting bought for $12.7 billion by Take-Two Interactive, the publisher behind Grand Theft Auto and the 2K sports series, in one of the biggest video game deals ever.
From its founding in 2004, until it hit one billion active users in 2012, the early years of Facebook presented an enormous opportunity for game makers. Facebook's rise meant that game makers could get in front of millions of procrastinating people by building a game directly into the Facebook platform, instead of competing for traffic on the wider internet.
Zynga took advantage of that creating some of the most popular Facebook games. Every time you, or that distant cousin, successfully "invited" someone to play FarmVille on Facebook, Zynga got a new user, for free.
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The chart gives some context on just how big the video game biz is. Last year the video game industry was pegged at somewhere around $180bn. That's roughly 10x what the global movie industry brought in at the box office last year. Admittedly last year the movie industry was still dealing with a pandemic hangover, but even in its best ever year the box office only brought in $39bn.
Video games may not carry the cultural impact of movies yet, but as a market they are in a completely different league. Mobile games, that is games played on a smartphone or tablet, have grown so quickly that they are now bigger than console & PC games combined.
Zynga's pivot to mobile is a great example of a company that's been flexible to its rapidly changing surroundings. Mobile games that almost killed them, now is the reason that got them $12.7bn.
The chart gives some context on just how big the video game biz is. Last year the video game industry was pegged at somewhere around $180bn. That's roughly 10x what the global movie industry brought in at the box office last year. Admittedly last year the movie industry was still dealing with a pandemic hangover, but even in its best ever year the box office only brought in $39bn.
Video games may not carry the cultural impact of movies yet, but as a market they are in a completely different league. Mobile games, that is games played on a smartphone or tablet, have grown so quickly that they are now bigger than console & PC games combined.
Zynga's pivot to mobile is a great example of a company that's been flexible to its rapidly changing surroundings. Mobile games that almost killed them, now is the reason that got them $12.7bn.
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A new survey from Gallup in December reveals that Americans reportedly read just 12.6 books each on average last year, down from the 15.6 average in 2016. The data includes all forms of books, including printed books but also electronic books and audiobooks.
Gallup notes that the "decline in book reading is mostly a function of how many books readers are reading, as opposed to fewer Americans reading any books".
Reading optimists could argue that it's possible that everyone is just reading longer but fewer books than they used to, but when the data is combined with the fact that just 6% of US adults named reading as their favorite way to spend an evening, down from 12% in 2016.
The survey also found that women read more than men, with women getting through 15.7 books, compared to an average of 9.5 for men. Also 18-34 year-olds read more than others.
A new survey from Gallup in December reveals that Americans reportedly read just 12.6 books each on average last year, down from the 15.6 average in 2016. The data includes all forms of books, including printed books but also electronic books and audiobooks.
Gallup notes that the "decline in book reading is mostly a function of how many books readers are reading, as opposed to fewer Americans reading any books".
Reading optimists could argue that it's possible that everyone is just reading longer but fewer books than they used to, but when the data is combined with the fact that just 6% of US adults named reading as their favorite way to spend an evening, down from 12% in 2016.
The survey also found that women read more than men, with women getting through 15.7 books, compared to an average of 9.5 for men. Also 18-34 year-olds read more than others.
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VCs will get liquidity in 2024 from the secondary market, not IPOs
In 2023, many VCs thought 2024 would see the IPO market bounce back, according to TechCrunch. Yet, with Q1 almost done, there's hardly a major IPO in sight except Reddit. Speculation about potential IPOs, like Shein and Turo, continues with little action. Despite hopes, a Reddit IPO might not kickstart a wider trend, with big names like Databricks, Stripe, and Plaid steering clear of going public this year. High interest rates and low valuations from the 2021 highs make IPOs less appealing.
But it's not all bad news. The secondary market, where private shares are sold, is booming as an alternative to IPOs. It's grown massively, with transactions reaching $138 billion in 2023. This market allows companies to offer liquidity without the pressure of going public, showcased by Stripe's $65 billion secondary sale. Even venture funds are getting in on the action, buying or selling shares to manage their portfolios. While the IPO freeze might continue, the secondary market thrives, offering a workaround for companies and investors alike.
Source β Tech Crunch
π This channel is owned by V3V Ventures
In 2023, many VCs thought 2024 would see the IPO market bounce back, according to TechCrunch. Yet, with Q1 almost done, there's hardly a major IPO in sight except Reddit. Speculation about potential IPOs, like Shein and Turo, continues with little action. Despite hopes, a Reddit IPO might not kickstart a wider trend, with big names like Databricks, Stripe, and Plaid steering clear of going public this year. High interest rates and low valuations from the 2021 highs make IPOs less appealing.
But it's not all bad news. The secondary market, where private shares are sold, is booming as an alternative to IPOs. It's grown massively, with transactions reaching $138 billion in 2023. This market allows companies to offer liquidity without the pressure of going public, showcased by Stripe's $65 billion secondary sale. Even venture funds are getting in on the action, buying or selling shares to manage their portfolios. While the IPO freeze might continue, the secondary market thrives, offering a workaround for companies and investors alike.
Source β Tech Crunch
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Source
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Which one is the biggest company in the world by market cap? Hereβs a list of the top companies by market cap in 2024:
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In the early stages of a startup, when funding is scarce, it is important to look for alternative sources of funding besides venture capital. There are many options available to startup companies, including government grants, corporate sponsorships, angel investors, and crowdfunding.
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πSpotify throws its hat in the edtech ring
πNon-sexy industries can appeal to investors too
πCentury Health, now with $2M, taps AI to give pharma access to good patient data
πNew Summit is raising a new $100 million fund to back climate tech and underrepresented fund managers
πA comprehensive list of 2023 & 2024 tech layoffs
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πMeet Kidsy, a kidsβ clothing startup that sells what parents need at a discount
πSkyflow raises $30M more as AI spikes demand for its privacy business
πIbottaβs expansion into enterprise should set it up for a successful IPO
πWhy a16z-backed Wonderschool is acquiring EarlyDay
πClimate tech VC Satgana closes first fund that targets early-stage startups in Africa, Europe
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Venture capital as a source of financing is distinct from other sources of financing because of its unique characteristics, as set out below:
In nut shell, a venture capital institution is a financial intermediary between investors looking for high potential returns and entrepreneurs who need institutional capital as they are yet not ready/able to go to the public.
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The rise in capital raised, and therefore left to deploy, was driven by the bull-run of VC returns between 2010 and 2015. Since 2015, venture capital dry powder has increased by 385%. In the period between 2010 and 2015, 1st quartile managers achieved >3.0x TVPI across in each vintage. In 2024, record amounts of dry powder, or committed but unallocated capital that firms have on hand, will put downward pressure on returns as investors chase deals in a bid to deploy capital.
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Paul Amara famously pinned Amara's law, that we βoverestimate the impact of new technology in the short term and underestimate it in the long term.
The same is true for large language models (LLMs). Despite the incredible advancement in LLMs, it's unclear if there's enough market pull from enterprise organizations to justify all the dollars going into the sector. Expect many of these seed-stage startups to either fold or pivot into solving a more meaningful, less hype-y business problem.
β Ramy Adeeb, General Partner, 1984 Ventures
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In 2024, the insider round (also known as a bridge or extension) will regress from 38% of all rounds back down to 25% or so. 2023 was full of extensions as investors gave additional cash to their current portfolio companies in the hopes of helping them get by until the next primary round. I expect VCs will be less generous to current portfolio companies next yearβbut hopefully this means more cash devoted to new companies.
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