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

A Hai Robotics machine operating in a warehouse. Credit: Hai Robotics

Sequoia-Backed Chinese Robot Maker Valued at $2 Billion Amid U.S. Expansion

By Juro Osawa · Feb 17, 2022 11:30am PST

Venture capitalists are betting Chinese robots can go global. Shenzhen-based Hai Robotics, a maker of robots for warehouses, is close to raising about $170 million from investors at a valuation higher than $2 billion, including the new capital, according to two people familiar with the matter. The previously unreported fundraising comes as the... Venture capitalists are betting Chinese robots can go global. Shenzhen-based Hai Robotics, a...

A look at the Peceptus Lego demo. Tagged pieces can be used to build a specific model. Credit: Singulos Research.

Perceptus Pitches Smarter AR; Kid Cudi Raises $9 Million for AR Concerts

By Mathew Olson · Feb 17, 2022 11:00am PST

It can take newborns a couple years to understand object permanence, and then a few more years after that to have a deep understanding of the characteristics and rules that define those objects, like puzzle pieces or coins with differing values.You can imagine, then, how hard it would be to make an AR app that does anything close to what a... It can take newborns a couple years to understand object permanence, and then a few more years...

Vimeo CEO Anjali Sud. Photo by AP.

Vimeo Is Looking Like a Prime Takeover Target

By Aidan Ryan · Feb 17, 2022 6:00am PST

Barry Diller’s IAC internet-media empire has a long track record of successful spin-offs, including companies such as travel booking site Expedia, ticket seller Ticketmaster, and dating app company Match. Vimeo, its latest, hasn’t exactly shared their fate. Since its May separation from IAC, the video software firm’s stock has... Barry Diller’s IAC internet-media empire has a long track record of successful spin-offs,...

Berkshire Hathaway Chairman and CEO Warren Buffett. Photo: Bloomberg

No, Warren Buffett Didn’t Just Invest $1 Billion in Crypto; Snoop Dogg’s NFT Record Label

By Akash Pasricha · Feb 16, 2022 5:57pm PST

Berkshire Hathaway Chairman and CEO Warren Buffett. Photo: Bloomberg

No, Warren Buffett Didn’t Just Invest $1 Billion in Crypto; Snoop Dogg’s NFT Record Label

By Akash Pasricha · Feb 16, 2022 5:57pm PST

Warren Buffett once famously called bitcoin “rat poison squared.” And despite the frenzy of media coverage this week about Berkshire Hathaway upping its stake in Nubank, a Brazilian digital bank, Buffett probably hasn’t changed his tune as much as people think. With a market capitalization of more than $40 billion, Nubank is one of... Warren Buffett once famously called bitcoin “rat poison squared.” And despite the frenzy of...

Alphabet CEO Sundar Pichai appearing at a conference last November. Photo by Bloomberg

What the Future Holds for Alphabet vs. Meta

By Martin Peers · Feb 16, 2022 5:00pm PST

Just when it looked like Wall Street’s shellacking of Meta Platforms’ stock had ended, we got more news today that reinforced anxieties about the company formerly known as Facebook. Yes, Google’s announcement that it will follow Apple in curtailing ad tracking can only make life harder for Meta’s ad business. (For more on Google’s plans, see our... Just when it looked like Wall Street’s shellacking of Meta Platforms’ stock had ended, we got...

Meta Platforms President Nick Clegg in 2017, before he joined the company. Photo by Bloomberg

By Promoting Clegg, Meta Mimics Microsoft as It Braces for New Political Battles

By Sylvia Varnham O'Regan and Mark Di Stefano · Feb 16, 2022 2:25pm PST

Facebook owner Meta Platforms on Wednesday tried to send a message to regulators and lawmakers who have trained their sights on the company: Nick Clegg, a former deputy British prime minister, is the person they should haul before the cameras, not CEO Mark Zuckerberg. By promoting Clegg, who was leading communications and policy for the company,... Facebook owner Meta Platforms on Wednesday tried to send a message to regulators and lawmakers...

Sundar Pichai. Photo by Bloomberg

Three Ways Google’s New Android Ad-Tracking Limits Will Differ From Apple’s

By Sarah Krouse · Feb 16, 2022 2:14pm PST

Google on Wednesday unveiled proposed rules to limit how advertisers track more than 2.8 billion people using phones powered by its Android software, but the company is taking a different approach than that of Apple, which restricted iPhone ad tracking last year. We talked to several digital ad industry executives steeped in the app-tracking... Google on Wednesday unveiled proposed rules to limit how advertisers track more than 2.8 billion...

Spotter CEO Aaron DeBevoise.

Why SoftBank Invested in Spotter, a Startup Giving Cash to Creators

By Kaya Yurieff · Feb 16, 2022 2:00pm PST

Spotter CEO Aaron DeBevoise.

Creator Economy

Why SoftBank Invested in Spotter, a Startup Giving Cash to Creators

By Kaya Yurieff · Feb 16, 2022 2:00pm PST

Rather than offering creators marketing services, ways for them to connect with fans or software features for managing their incomes, a new crop of startups is focusing on providing them with something both innovative and incredibly mundane: capital.One of these startups is emerging at the head of the pack, at least when it comes to funding. Rather than offering creators marketing services, ways for them to connect with fans or software...

A group of AltSpaceVR avatars. Credit: Microsoft.

Microsoft’s Belated AltspaceVR Safety Changes

By Mathew Olson · Feb 16, 2022 12:00pm PST

AltspaceVR, the social VR platform that Microsoft acquired in 2017, is undergoing some major changes in the name of safety. Open public areas hosted by AltspaceVR are being eliminated, existing safety bubbles and mute options are becoming defaults, and users will soon need to sign in with a Microsoft account.Announced in a blog post by Microsoft... AltspaceVR, the social VR platform that Microsoft acquired in 2017, is undergoing some major...

Art by Mike Sullivan

How the Myth of the Hot Round Hurts Founders

By Aaron Harris · Feb 16, 2022 9:00am PST · 11 comments

Here's a fun little paradox in fundraising: Founders and the media love to talk about how quickly funding rounds happen these days—think about the big, rapid-fire raises from OpenSea, DataBricks and others—but when you watch a fundraising process from start to finish, it’s never as fast as it seems. Even the tidiest-looking... Here's a fun little paradox in fundraising: Founders and the media love to talk about how...

Top row (l-r): Shilla Kim-Parker, Adam Siegel, Wilson Griffin, Andy Ruben
Bottom row (l-r): Ashley Granata, Joseph Einhorn, Emily Gittins, Ryan Rowe

Startups to Watch

5 Startups Vying to Be the Shopify of the $43 Billion Resale Market

By Malique Morris · Feb 16, 2022 6:00am PST

Selling secondhand clothes and accessories online is a booming business, and that’s creating an opportunity for the behind-the-scenes tech players that power the transactions. These include startups such as Trove, Archive, Recurate and The Archivist. These re-commerce startups are following in the footsteps of Shopify, which grew into a... Selling secondhand clothes and accessories online is a booming business, and that’s...

Gary Gensler, chairman of the U.S. Securities and Exchange Commission. Photo: Bloomberg

What the Binance.US Probe Says About the SEC’s Crypto Regulation Strategy

By Akash Pasricha · Feb 15, 2022 6:18pm PST · 2 comments

Gary Gensler, chairman of the U.S. Securities and Exchange Commission. Photo: Bloomberg

What the Binance.US Probe Says About the SEC’s Crypto Regulation Strategy

By Akash Pasricha · Feb 15, 2022 6:18pm PST · 2 comments

Crypto companies are keeping the Securities and Exchange Commission (SEC) busy this week. In Monday’s newsletter, we wrote about the SEC’s settlement with BlockFi, a cryptocurrency lender, to resolve the agency’s allegations that the company’s investment products were illegal. As of Tuesday, the SEC had a new target in Binance.US, the American... Crypto companies are keeping the Securities and Exchange Commission (SEC) busy this week. In ...

Airbnb signage at the Nasdaq when the company went public. Photo by Bloomberg.

Airbnb Now Printing Cash—What Will Chesky Do Next?

By Martin Peers · Feb 15, 2022 5:00pm PST

It has to be acknowledged when a company hits it out of the park, particularly one that doesn’t get much attention. Airbnb, as its fourth-quarter results tonight demonstrated, is one such company. Consider just this one statistic: In all of 2021, the company generated $2.2 billion in free cash flow—that’s the amount of cash produced by its... It has to be acknowledged when a company hits it out of the park, particularly one that doesn’t...

Trace Alexander, 18, runs oatmeal-focused social media accounts. Photo: Trace Alexander

Creator Economy

Roblox Pays Out Nearly $540 Million to Creators; The High School TikToker Sponsored by Quaker Oats

By Kaya Yurieff · Feb 15, 2022 2:45pm PST

Roblox paid out $538.3 million to developers on its gaming platform—also known as creators—in 2021, beating an earlier projection of $500 million, according to financial figures released on Tuesday. Two years ago, that figure was $112 million, the company pointed out.“We believe these financial incentives, which include engagement based payouts,... Roblox paid out $538.3 million to developers on its gaming platform—also known as creators—in...

The ThinkReality A3 enterprise AR glasses, seen here cabled to a PC laptop. Credit: Lenovo.

Motorola’s New AR/VR Accessory; Nintendo Plays Wait-and-See With the Metaverse

By Mathew Olson · Feb 15, 2022 11:00am PST

Hoping to be in the vanguard of AR/VR users over the next few years? If so, you may need to sport not one, but two wearables to get the most from your chosen headset or glasses.Motorola, in collaboration with its parent company Lenovo as well as Verizon, has announced a new “5G XR neckband,” an accessory designed for use with AR glasses or VR... Hoping to be in the vanguard of AR/VR users over the next few years? If so, you may need to sport...

A Ninebot electric scooter in 2018. Photo by Bloomberg.

How Sequoia’s U.S. Investors Won Big From Segway Owner’s IPO—in Backwater China Market

By Shai Oster · Feb 15, 2022 7:50am PST · 3 comments

A Ninebot electric scooter in 2018. Photo by Bloomberg.

How Sequoia’s U.S. Investors Won Big From Segway Owner’s IPO—in Backwater China Market

By Shai Oster · Feb 15, 2022 7:50am PST · 3 comments

U.S.-based investors spent tens of billions of dollars buying shares of private tech companies headquartered in China, such as TikTok owner ByteDance, dronemaker DJI and fashion retailer Shein. But getting the money out has become tougher, now that U.S. stock exchanges are effectively off limits to many of these Chinese companies. But... U.S.-based investors spent tens of billions of dollars buying shares of private tech companies...

What’s Driving Amazon and Walmart’s Ad Prices in Different Directions

By Mark Di Stefano · Feb 15, 2022 6:04am PST

While the cost to buy ads on Amazon’s main marketplace has surged in the past year, prices at Walmart and Instacart have dropped as these retail rivals have added more ad space. The divergence suggests the companies eager to copy Amazon, which has created a $31 billion ad powerhouse, may have success luring merchants by touting cheaper ad... While the cost to buy ads on Amazon’s main marketplace has surged in the past year, prices...

Los Angeles Rams wide receiver Brandon Powell carries the ball against the Cincinnati Bengals during the second half of the NFL Super Bowl 56 football game Sunday. Photo: AP

Coinbase’s ROI on Its Super Bowl Ad; BlockFi Settles with SEC

By Akash Pasricha · Feb 14, 2022 5:34pm PST

How big a deal are Super Bowl ads, really? Sunday night, cryptocurrency exchanges were the talk of the town as many companies flaunted star-studded commercials during the big game. Thirty second slots were reportedly sold for $7 million, according to The Wall Street Journal, meaning Coinbase may have spent approximately $14 million on a dancing... How big a deal are Super Bowl ads, really? Sunday night, cryptocurrency exchanges were the talk...

Peloton's new CEO, Barry McCarthy. Photo by Bloomberg.

Reasons To Be Skeptical About Barry McCarthy's Peloton Plans

By Martin Peers · Feb 14, 2022 5:00pm PST

Peloton’s new CEO, Barry McCarthy, wants the world to know he's not moving across the country just to preside over the sale of the troubled fitness equipment company. Instead, he told the Financial Times, he plans to concentrate on building out the content side of Peloton’s business, where profit margins are much higher than they are on the... Peloton’s new CEO, Barry McCarthy, wants the world to know he's not moving across the country...

Payhawk CEO Hristo Borisov (l), CTO Boyko Karadzhov (center) and CFO Konstantin Djengozov (r). Photo: Business Wire

Lightspeed Leads Deal for Brex Rival Payhawk at $1 Billion Valuation

By Kate Clark · Feb 14, 2022 3:15pm PST

Payhawk CEO Hristo Borisov (l), CTO Boyko Karadzhov (center) and CFO Konstantin Djengozov (r). Photo: Business Wire

Lightspeed Leads Deal for Brex Rival Payhawk at $1 Billion Valuation

By Kate Clark · Feb 14, 2022 3:15pm PST

Lightspeed Venture Partners is leading an investment of $100 million in London-based corporate card startup Payhawk, according to two people familiar with the matter. The deal values the startup, founded in 2018, at $1 billion including the new money, the people said. The new capital gives Payhawk ammunition to expand to the U.S., where it will... Lightspeed Venture Partners is leading an investment of $100 million in London-based corporate...