The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

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Recent Editions

Art by Mike Sullivan

Five Ways Web3 Companies Will Have to Adapt to Survive

By Tomasz Tunguz · May 27, 2022 9:00am PDT · 8 comments

The summer of 2021 will forever be remembered as DeFi summer in crypto land. Arising from the darkness of 2020’s crypto winter, the decentralized finance sector had grown more than eight-fold by May of last year before peaking at $250 billion in market capitalization in December. Three quarters later, old man winter is back. His calling... The summer of 2021 will forever be remembered as DeFi summer in crypto land. Arising from the...

Art by Mike Sullivan

VC Pay Surged Again in 2021, but Future Jumps Are in Jeopardy

By Kate Clark · May 27, 2022 6:00am PDT · 5 comments

It’s hard to find venture capitalists right now who aren’t telling their startups to tighten their belts. But when will venture firms start tightening their own belts? Pay for venture capitalists has increased steeply in recent years as venture funds have exploded in size and nontraditional investors like Tiger Global... It’s hard to find venture capitalists right now who aren’t telling their startups to...

Photo: Bloomberg

VMware Should Not Expect a White Knight; Wish Sidelined as Dollar Stores Rally

By Scott Thurm · May 26, 2022 6:08pm PDT · 4 comments

Broadcom made official its plan to acquire VMware in a cash-and-stock deal worth around $61 billion. The deal underscores the degree to which CEO Hock Tan has transformed Broadcom from a maker of networking chips into a formidable player in enterprise software. The agreement includes a “go-shop” provision allowing VMware to solicit bids... Broadcom made official its plan to acquire VMware in a cash-and-stock deal worth around $61...

Federal Trade Commission Chair Lina Khan. Photo by Bloomberg

To Combat Declining Staff Morale, FTC Chair Khan Lifts Public Speaking Ban as Deputy Issues Apology

By Josh Sisco · May 26, 2022 3:21pm PDT · 4 comments

Federal Trade Commission Chair Lina Khan. Photo by Bloomberg

To Combat Declining Staff Morale, FTC Chair Khan Lifts Public Speaking Ban as Deputy Issues Apology

By Josh Sisco · May 26, 2022 3:21pm PDT · 4 comments

Federal Trade Commission Chair Lina Khan, facing mounting concerns among her 1,100-plus employees about the agency’s direction and her governing style, on Thursday walked back restrictions that prevented staff from participating in most conferences and other public events. In an apologetic email, Khan’s chief of staff, Jen Howard,... Federal Trade Commission Chair Lina Khan, facing mounting concerns among her 1,100-plus employees...

From left to right: Spring COO Annelies Jansen, Verishop co-founder Cate Khan, creator Dominique Broadway and Patreon’s head of creator partnerships Avi Gandhi. Photo: Mike Sullivan.

Creator Economy

What a Potential Recession Means for Creators; OnlyFans Founder’s Next Act; Pinterest Is Hiring

By Kaya Yurieff · May 26, 2022 2:59pm PDT

The Information’s Creator Economy Summit on Wednesday took place against the backdrop of a looming downturn and rising inflation. Reduced consumer spending would cut to the core of the creator economy. Sponsorships with brands are the top way many creators make money. If advertisers reduce spending this year, that could impact creator earnings—... The Information’s Creator Economy Summit on Wednesday took place against the backdrop of a...

From L-R: Enrico D'Angelo, Sean Kim, Kristin Bannon, Sally Shin, Sam Wick, Erin Miller

Creator Economy Summit

Creator Economy Winter, TikTok’s Rivals and NFTs: Highlights From the Creator Economy Summit

By The Information Staff · May 26, 2022 2:11pm PDT

How Instagram and Pinterest view blockchain technologies. Whether the creator economy is overfunded. Strategies for creators to buck an economic downturn. These were among the topics of discussion at The Information’s Creator Economy Summit Wednesday. Participants included Ashley Yuki, Instagram’s vice president of product; Malik... How Instagram and Pinterest view blockchain technologies. Whether the creator economy is...

LivingCities will begin testing its new social experience in downtown Manhattan. Photo: Bloomberg.

6D.ai Founder’s New Project Exits Stealth; Sony Lines Up PS VR2 Titles

By Mathew Olson · May 26, 2022 11:15am PDT

Bit by bit, inch by inch, we’re seeing companies start to put together full 3D maps of the world, and the implications for the future of AR and the feel of the metaverse could be profound. That’s the technology LivingCities, a new startup led by ex-Samsung, Lucasfilm and Foursquare talent, hopes to build on top of.LivingCities has emerged from... Bit by bit, inch by inch, we’re seeing companies start to put together full 3D maps of the world,...

Photo by Bloomberg

A Top China VC Firm Struggles to Raise Funds After 10% Return, U.S. Investor Fears

By Juro Osawa · May 26, 2022 6:00am PDT · 2 comments

Photo by Bloomberg

A Top China VC Firm Struggles to Raise Funds After 10% Return, U.S. Investor Fears

By Juro Osawa · May 26, 2022 6:00am PDT · 2 comments

Despite a difficult climate for raising money, at least four top-tier Chinese venture capital firms set ambitious goals to raise billions of dollars this year from Western institutional investors. Some have already succeeded—but not all of them. Matrix Partners China, one of China’s most prolific early-stage VC firms and an early... Despite a difficult climate for raising money, at least four top-tier Chinese venture capital...

Musk and Drew Baglino, his chief of powertrain, revealed the 4680 battery concept on Battery Day, in September 2020. Photo: Courtesy Tesla

There’s a New Contender to Replicate Tesla’s 4680 Battery

By Steve LeVine · May 26, 2022 4:00am PDT

Save the date: Next week, BloombergNEF releases its much-anticipated annual outlook on electric vehicles, batteries, and the new mobility. To discuss it, join BNEF's Colin McKerracher and me for Live Chat With The Electric. McKerracher, BNEF's head of advanced transport, oversees the outlook, and you can ask your own questions of him. June 2 at... Save the date: Next week, BloombergNEF releases its much-anticipated annual outlook on electric...

Photo by Bloomberg

Startups in Sequoia’s ‘Crucible Moment’; Musk Pledges More Funding for Twitter

By Laura Mandaro · May 25, 2022 5:34pm PDT

As we reported last night, Sequoia Capital has once again taken on the role of Silicon Valley soothsayer, releasing a 52-slide presentation on advice to startups, which it says face a “crucible moment” as the economy slows and central banks retract the monetary stimulus that kicked off the boom two years ago. In particular, the partners at... As we reported last night, Sequoia Capital has once again taken on the role of Silicon Valley...

Creator Economy Leaders Respond to Texas Shooting; Creator Startups Rise to 200; Understanding Twitter’s CEO

Creator Economy

Creator Economy Leaders Respond to Texas Shooting; Creator Startups Rise to 200; Understanding Twitter’s CEO

By Mahira Dayal · May 25, 2022 3:31pm PDT

It’s hard to jump into the creator economy topics we love to discuss when we’re grieving over the lives lost in Tuesday’s Texas elementary school shooting. That’s what several of our speakers also told us when we kicked off our second Creator Economy Summit on Wednesday. Their comments felt particularly somber given last week’s mass shooting in... It’s hard to jump into the creator economy topics we love to discuss when we’re grieving over the...

Ken Li, executive director of investments and M&A at Binance. Photo: Binance

What Binance Labs Is Telling Founders Amid Downturn; Haun Ventures Adds to Deal Team

By Aidan Ryan · May 25, 2022 1:15pm PDT

Ken Li, executive director of investments and M&A at Binance. Photo: Binance

What Binance Labs Is Telling Founders Amid Downturn; Haun Ventures Adds to Deal Team

By Aidan Ryan · May 25, 2022 1:15pm PDT

Investors haven’t been shy about warning founders that the next crypto winter is upon us—though most are spinning the downturn as a big opportunity for those that can weather the storm to come out even stronger. Andreessen Horowitz seemed to prove this logic right, at least as far as funding opportunities go, when it announced its mega new $4.5... Investors haven’t been shy about warning founders that the next crypto winter is upon us—though...

TikTok star Josh Richards. Photo: Matt Azzopardi. Art by Mike Sullivan.

Creator Economy Summit

Twitch Is ‘Absolutely Dominating,’ Says TikTok Star Josh Richards

By Kaya Yurieff · May 25, 2022 1:00pm PDT

TikTok’s viral short videos put Canadian creator Josh Richards on the map in 2019, after his dance moves and generation-defining hairstyle made him a Gen Z icon. Now also an entrepreneur and investor, Richards says he sees another video format poised to triumph: livestreaming. “I see Twitch absolutely dominating,”... TikTok’s viral short videos put Canadian creator Josh Richards on the map in 2019, after...

A user wearing the R-1 headset. Photo: Lynx.

Lynx’s Series A Raise; New Research Toward Focusable VR Lenses

By Mathew Olson · May 25, 2022 11:02am PDT

Lynx, the French hardware startup aiming to launch its first mixed reality headset, the R-1, this summer, has completed a $4 million Series A raise at an undisclosed valuation. Led by Somnium Space, a blockchain-centric social VR platform and metaverse-focused investor, the new round is very likely Lynx’s last major announcement before... Lynx, the French hardware startup aiming to launch its first mixed reality headset, the R-1, this...

2022 NBCUniversal Upfront in New York City. Photo by Getty

The Upfronts Model Isn’t Dead Yet

By Andrew A. Rosen · May 25, 2022 9:00am PDT

PARQOR is part of The Information’s newsletter network. To receive it in your inbox every Monday, Wednesday and Friday, sign up here. In “Monty Python and the Holy Grail,” King Arthur (played with blustery charm by Graham Chapman) rides across Britain searching for knights to join his Round Table. Having collected a... PARQOR is part of The Information’s newsletter network. To receive it in your inbox every...

Art by Mike Sullivan.

While Battling Musk, Twitter CEO Agrawal Shows Decisive Side

By Sarah Krouse and Kevin McLaughlin · May 25, 2022 6:00am PDT · 1 comment

Art by Mike Sullivan.

While Battling Musk, Twitter CEO Agrawal Shows Decisive Side

By Sarah Krouse and Kevin McLaughlin · May 25, 2022 6:00am PDT · 1 comment

Years before Elon Musk set his sights on Twitter, Parag Agrawal, a senior engineering executive at the social media company, was asked in an all-hands meeting what his hobbies were. He nervously replied that he enjoyed growing plants in water, without soil. Now, as the brazen Tesla and SpaceX CEO moves forward in fits and starts with his... Years before Elon Musk set his sights on Twitter, Parag Agrawal, a senior engineering executive...

A stock exchange monitor with Snap's share price in March. Photo by Bloomberg.

Snap Learns Not to Guesstimate Revenue Growth

By Martin Peers · May 24, 2022 5:30pm PDT

Evan Spiegel certainly can’t complain that the market doesn’t listen to what he says. The Snap CEO’s warning on Monday about a worse-than-expected deterioration in second-quarter conditions brought down tech stocks across the board today, led by a 43% drop in Snap’s price. Is it heretical to suggest the market might be overreacting just a bit?... Evan Spiegel certainly can’t complain that the market doesn’t listen to what he says. The Snap...

Roelof Botha, partner at Sequoia Capital. Photo by Getty

Sequoia Warns Founders of ‘Crucible Moment,’ Advises How to ‘Avoid the Death Spiral’

By Mark Di Stefano, Kate Clark and Nick Wingfield · May 24, 2022 5:17pm PDT · 2 comments

Sand Hill Road’s doomsayer-in-chief—Sequoia Capital—is back with a warning to its startup founders: Don’t expect a recovery from the current market downturn to happen quickly. Over the years, Sequoia, the venture firm behind Google, Apple and Airbnb, has developed a reputation as the tech industry’s Cassandra,... Sand Hill Road’s doomsayer-in-chief—Sequoia Capital—is back with a warning to...

Faraz Fatemi. Photo: Lightspeed. Art: Mike Sullivan

Creator Economy

Lightspeed’s New Consumer Partner on Seed Deals, the Downturn and a Timeline for the Metaverse

By Mahira Dayal · May 24, 2022 3:49pm PDT

Last week, we caught up with Faraz Fatemi, who joined Lightspeed Venture Partners last month as a partner focused on consumer investments. Fatemi previously led monetization, growth and corporate development initiatives at Clubhouse, where he worked from June 2021 to earlier this year, and before that invested in startups at Bain Capital... Last week, we caught up with Faraz Fatemi, who joined Lightspeed Venture Partners last month as a...

Photo by Bloomberg.

Amazon Quietly Axed Millions of Square Feet of Warehouse Space

By Paris Martineau · May 24, 2022 11:42am PDT · 2 comments

Photo by Bloomberg.

Amazon Quietly Axed Millions of Square Feet of Warehouse Space

By Paris Martineau · May 24, 2022 11:42am PDT · 2 comments

Over the last three months, Amazon has canceled plans for nearly 10 million square feet of warehouse space, shelving plans for more than a dozen fulfillment centers and delivery facilities around the U.S. as the company wrestles with a costly space glut on the heels of the pandemic. The scope of the pullback, which is previously unreported,... Over the last three months, Amazon has canceled plans for nearly 10 million square feet of...