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

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Andreessen Horowitz, Thrive Go Bargain Hunting for Beaten-Down Tech Stocks

By Kate Clark · Jul 8, 2022 11:49am PDT · 2 comments

Plunging shares of tech stocks have prompted venture capital firms to take an unusual step: buying publicly traded stocks. Thrive Capital early this year bought beaten-down shares in online used-car marketplace Carvana, according to securities filings. Andreessen Horowitz bought shares in Jack Dorsey’s Block, which partner Marc Andreessen... Plunging shares of tech stocks have prompted venture capital firms to take an unusual step:...

DoNotPay CEO Joshua Browder leads a crypto horde into battle. Art by Clark Miller.

Crypto Wants Its Cash Back: Inside the Small but Mighty Legal Crusade to Win Back Lost Savings

By Margaux MacColl · Jul 8, 2022 10:03am PDT · 12 comments

Before it collapsed on June 12, crypto lender Celsius Network made irresistible promises:Forget storing your money in a boring old bank—join the “unbanked” by holdingcryptocurrencies while earning up to 18.6% in interest. Celsius CEO Alex Mashinsky bolstered these assurances with populist rallying cries: “Banks have become such monopolistic... Before it collapsed on June 12, crypto lender Celsius Network made irresistible promises:Forget...

Shutterstock; Mike Sullivan

More Job, Expense Cuts Are Coming, According to The Information’s Survey

By Mahira Dayal · Jul 8, 2022 6:00am PDT

Executives are freezing hiring or cutting jobs and curbing spending in areas including travel, marketing and software in the face of falling stock prices and an economic slowdown that threatens to turn into a recession. Investors, meanwhile, are reducing their deal flow, in some cases dramatically. Those conclusions emerge from a subscriber... Executives are freezing hiring or cutting jobs and curbing spending in areas including travel,...

Photo by Bloomberg

Can Musk Shake Up Sun Valley?

By Jessica E. Lessin · Jul 7, 2022 5:15pm PDT

Photo by Bloomberg

Can Musk Shake Up Sun Valley?

By Jessica E. Lessin · Jul 7, 2022 5:15pm PDT

You have to love a jam-packed summer news day. The maestro behind Masayoshi Son’s tech investing—Rajeev Misra—is leaving SoftBank’s Vision Fund. This is a big deal. Misra is notorious for his rough-and-tumble tactics, including allegedly trying to oust his own colleague. His departure basically completes the exodus there. What will Masa do? It’s... You have to love a jam-packed summer news day. The maestro behind Masayoshi Son’s tech investing—...

Portrait photographer David Suh has 4 million TikTok followers. Photo: David Suh

Creator Economy

Livestreaming’s Boom and the Avid Fans of Minecraft

By Kaya Yurieff · Jul 7, 2022 2:00pm PDT

Livestreaming ballooned during the pandemic, but as the world reopened, the hours people spent watching streams started to decline. Now usage is rising again. Total hours watched on Twitch rose to 1.81 billion in May from 1.78 billion the month prior, according to new data from StreamElements, a marketing and livestreaming startup,... Livestreaming ballooned during the pandemic, but as the world reopened, the hours people spent...

China wants to increase production of lithium from Qinghai province, shown here. Photo by Qilai Shen/Bloomberg

The Electric: How China Responded to EV Supply-Chain Problems

By Steve LeVine · Jul 7, 2022 11:37am PDT

Today's column is from Dalibor Petkovic, a researcher specializing in Chinese industrial policies. Since 2017, he has focused on the Chinese EV market, as well as smart cities, urban logistics and battery recycling management.Supply chain disruptions over the past two years have prompted big changes in China’s market for electric vehicles and... Today's column is from Dalibor Petkovic, a researcher specializing in Chinese industrial...

Art by Mike Sullivan

Startup Founders Embrace 409A Cuts to Gain Recruiting Edge

By Mark Matousek · Jul 7, 2022 6:00am PDT · 2 comments

Between 2016 and 2021, investors boosted the valuation of Sendbird, a communications software startup, to $1.1 billion, from $6.5 million. This June, a different kind of evaluator gave Sendbird what might have sounded like frightening news: It had determined the startup was worth around 50% less than it had been a year ago. But that conclusion... Between 2016 and 2021, investors boosted the valuation of Sendbird, a communications software...

Crypto Leads Fourth Straight Drop in Creator Funding

Crypto Leads Fourth Straight Drop in Creator Funding

By Mahira Dayal · Jul 6, 2022 3:48pm PDT

Crypto Leads Fourth Straight Drop in Creator Funding

Creator Economy

Crypto Leads Fourth Straight Drop in Creator Funding

By Mahira Dayal · Jul 6, 2022 3:48pm PDT

On Wednesday, we published a quarterly update to our Creator Economy Database. We’ve now tracked four consecutive quarterly decreases in investments in creator startups—a downbeat sign for founders who had become used to seemingly unlimited check-writing over the last two years. Here are some other takeaways: Investors’ enthusiasm in crypto... On Wednesday, we published a quarterly update to our Creator Economy Database. We’ve now tracked...

Illustration by Laurent Hrybyk

When Your SPAC Dreams Fail, a Financing of Last Resort

By Maria Heeter · Jul 6, 2022 3:08pm PDT · 10 comments

Several electric vehicle and mobility startups went public and raised money in the past two years by merging with special purpose acquisition companies. Now, as companies find it far more difficult to raise cash, they are turning to unusual methods. Scooter rental service Bird, electric truck maker Nikola and electric vehicle startup Canoo are... Several electric vehicle and mobility startups went public and raised money in the past two years...

Art by Mike Sullivan

Bankrupt Crypto Lenders Aren't a Blockchain Problem

By Akash Pasricha · Jul 6, 2022 2:31pm PDT

Crypto has been really quiet this week (sarcasm!), so let’s get the headlines on paper first:Voyager Digital, a New York-based crypto lending company, filed for Chapter 11 bankruptcy on Wednesday. The company has $654 million in outstanding loans to Three Arrows Capital, the crypto hedge fund that a British Virgin Islands court ordered to... Crypto has been really quiet this week (sarcasm!), so let’s get the headlines on paper first:...

Art Shutterstock; Mike Sullivan

The Big Contradiction at the Heart of the Tech Downturn

By Aaron Harris · Jul 6, 2022 9:00am PDT · 15 comments

I’ve read a lot of advice venture capitalists have given founders on the current state of the markets. Most of that advice focuses on how founders need to adjust to survive the deteriorating conditions—cutting cash burn by firing underperforming employees, slowing hiring, shrinking marketing budgets and so on. But this advice is only... I’ve read a lot of advice venture capitalists have given founders on the current state of...

Creator Economy Startup Funding Drops 60% From a Year Ago

By Mahira Dayal · Jul 6, 2022 6:00am PDT · 4 comments

Creator Economy Database

Creator Economy Startup Funding Drops 60% From a Year Ago

By Mahira Dayal · Jul 6, 2022 6:00am PDT · 4 comments

Creator economy startups in the U.S. raised less than $700 million in venture funding in the second quarter of this year. That’s 26% less than the previous quarter and marks a fourth consecutive quarter of decline in venture investments tracked by The Information’s Creator Economy Database. The quarterly drop reflects a decline in... Creator economy startups in the U.S. raised less than $700 million in venture funding in the...

Art by Mike Sullivan

Why New Mega Funds Don’t Necessarily Mean Mega Deals

By Jessica E. Lessin · Jul 5, 2022 5:11pm PDT

I’m baaack. You didn’t think I could stay away from writing for too long, did you? It’s been a period of rapid growth for The Information, and I have been quite busy. But the news in tech, finance and media lately is just too crazy for me to sit on the sidelines, so I’m taking over our evening Briefing newsletter, with help from the wonderful... I’m baaack. You didn’t think I could stay away from writing for too long, did you? It’s been a...

Art: Mike Sullivan

Creator Economy

What TikTok’s Halted E-Commerce Plans Say About Social Shopping’s Future

By Mahira Dayal · Jul 5, 2022 3:51pm PDT

More than a month ago, our colleagues in Hong Kong and London reported that TikTok’s forays into online shopping had fallen short of the company’s own expectations. Today we got some confirmation on just how disappointing that activity has been: TikTok is no longer expanding live ecommerce efforts in the U.S. and Europe after a lack of uptake,... More than a month ago, our colleagues in Hong Kong and London reported that TikTok’s forays into...

Marne Levine. Photo by Bloomberg

Meta’s Top Ad Sales Executive Faces Uphill Battle in Post-Sandberg Era

By Sylvia Varnham O'Regan · Jul 5, 2022 7:20am PDT

This week, three Meta Platforms executives will head to the Sun Valley conference in Idaho to woo advertisers: Chief Executive Officer Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg and Chief Business Officer Marne Levine, a key deputy of Sandberg who will be put to the test when the COO leaves the company this fall. Levine, who... This week, three Meta Platforms executives will head to the Sun Valley conference in Idaho to woo...

Sequoia Capital China chief Neil Shen. Credit: Fortune Live Media via Flickr

Sequoia Capital’s China Arm Raises $9 Billion, Exceeding Target

By Juro Osawa · Jul 4, 2022 10:26pm PDT

Sequoia Capital China chief Neil Shen. Credit: Fortune Live Media via Flickr

Sequoia Capital’s China Arm Raises $9 Billion, Exceeding Target

By Juro Osawa · Jul 4, 2022 10:26pm PDT

Sequoia Capital’s Chinese affiliate is about to close $9 billion in fresh capital for four new funds, higher than its original target of more than $8 billion, according to two people familiar with the fundraising. The final amount could represent the biggest pool of capital ever raised by a single venture capital firm to bet on Chinese... Sequoia Capital’s Chinese affiliate is about to close $9 billion in fresh capital for four...

The Electric Quarterly: Should the West Subsidize LFP Production?

The Electric Quarterly: Should the West Subsidize LFP Production?

By Steve LeVine · Jul 3, 2022 2:00pm PDT

Save the date: In the battery industry, attention is tightly fixed on nickel, manganese and iron as the basis for batteries, but now a very different material has pushed to the surface: Prussian blue, a material usually associated with famous paintings. To discuss this much-ignored electrode, I'm thrilled to host Colin Wessells, CEO of... Save the date: In the battery industry, attention is tightly fixed on nickel, manganese and iron...

The La La Land Life of Venture Capitalist Brianne Kimmel

The La La Land Life of Venture Capitalist Brianne Kimmel

By Jon Steinberg · Jul 2, 2022 8:00am PDT

Hi, welcome to your Weekend! It’s peak out-of-office message season in Silicon Valley, and not just because of the Fourth of July weekend. Tech layoffs are popping off everywhere. Venture dealflow has slowed to a crawl. The economic headwinds are fierce and giving certain people super bad feelings. Plus, after two-plus years of... Hi, welcome to your Weekend! It’s peak out-of-office message season in Silicon Valley, and...

Art by Clark Miller.

Screentime: Venture Founder Li Jin Has Downloaded More ‘Ghost Apps’ Than She Cares to Count

By Annie Goldsmith · Jul 2, 2022 7:00am PDT

Once dubbed the “it girl” of venture capital, Li Jin seems to always be in the loop. With her first fund, Atelier Ventures, Jin was one of the earliest investors to bet big on online creators and influencers, advising the likes of YouTuber Hank Green and investing in Substack and Patreon. She’s now a co-founder of Variant Fund, an early-stage... Once dubbed the “it girl” of venture capital, Li Jin seems to always be in the loop. With her...

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

How Netflix Can Regain Momentum

By Martin Peers · Jul 1, 2022 3:00pm PDT

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

How Netflix Can Regain Momentum

By Martin Peers · Jul 1, 2022 3:00pm PDT

We’re now just a couple of weeks away from the second-quarter earnings reporting season. And if history is any guide, first out of the gate will be Netflix’s report on July 19, which is likely to be one of the most closely watched tech earnings updates of the quarter. Netflix’s first-quarter report, revealing a tiny drop in subscribers and... We’re now just a couple of weeks away from the second-quarter earnings reporting season. And if...