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

TikTok creator Taryn Smith. Photo: Taryn Smith

Creator Economy

Influencers Take On SXSW; Q&A with Comedic TikTok Creator Taryn Smith

By Kaya Yurieff · Mar 17, 2022 2:00pm PDT

As I wrote for our Weekend section, crypto’s influence was hard to escape at South by Southwest this year. But when I wasn’t turning myself into a 3D avatar and minting it on a blockchain or walking around an Instagrammable exhibit celebrating pastel-themed non-fungible tokens called Doodles, I checked out creator-focused events. ... As I wrote for our Weekend section, crypto’s influence was hard to escape at South by Southwest...

The new Crypto.com Arena sign at the former Staples Center on December 22, 2021 in Los Angeles. Photo by Shutterstock.

The Top 15 Crypto Startups That Moonlight as VC Investors

By Aidan Ryan · Mar 17, 2022 11:00am PDT

The venture capitalists and hedge funds competing to back crypto startups are increasingly facing a third set of rivals: other startups. In just the past year, at least eight highly valued crypto startups—ranging from crypto exchange Gemini to peer-to-peer payments startup Circle—have launched venture capital arms to invest in other... The venture capitalists and hedge funds competing to back crypto startups are increasingly facing...

Art featuring two of the character types in Zenith: The Last City. Credit: Ramen VR.

Team Behind Hit Game Zenith Raises $35 Million for VR “Super-App”

By Mathew Olson · Mar 17, 2022 11:00am PDT

What’s the next step for a VR developer once they’ve got a successful massively multiplayer online game on their hands? Expanding in the metaverse-like direction of Fortnite or Roblox might seem like the natural move, but the makers of Zenith: The Last City at Ramen VR—who say their MMO has gained “several hundreds of thousands” of players since... What’s the next step for a VR developer once they’ve got a successful massively multiplayer...

Photographs, clockwise from top-left: Doodles, Kaya Yurieff, Chris Hershman/Blokhaus.

In Austin, a Coronation for Crypto, a Celebration of Doodles, and Confusion for Nicolas Cage

By Kaya Yurieff · Mar 17, 2022 10:05am PDT · 1 comment

Photographs, clockwise from top-left: Doodles, Kaya Yurieff, Chris Hershman/Blokhaus.

Scene and Heard

In Austin, a Coronation for Crypto, a Celebration of Doodles, and Confusion for Nicolas Cage

By Kaya Yurieff · Mar 17, 2022 10:05am PDT · 1 comment

South by Southwest, the annual tech and arts festival in Austin, Tex., kicked off this year against the backdrop of a Russian invasion of Ukraine, record inflation, skyrocketing gas prices and a two-year pandemic hangover. It also coincided with a sudden dip in the price of cryptocurrencies and non-fungible tokens. But all the bad news didn’t... South by Southwest, the annual tech and arts festival in Austin, Tex., kicked off this year...

Salesforce co-CEO Marc Benioff. Photo by Bloomberg.

Why Salesforce Trades Like Oracle—Investors Fear Benioff’s Next Big Deal

By Martin Peers · Mar 17, 2022 6:00am PDT · 5 comments

If you want an example of just how much more weight investors are placing on profits than on revenue growth, take a look at Salesforce and Oracle. On one side is Salesforce, whose top line has grown at a remarkably stable rate, averaging 26% over the past seven fiscal years. On the other is aging software giant Oracle, whose revenue averaged... If you want an example of just how much more weight investors are placing on profits than on...

Monica Long, General Manager of RippleX. Photo by Ripple. Art by Mike Sullivan.

Ripple to Give Out $794 Million of Tokens for Developers; Recapping Yuga Labs’ Big Year

By Aidan Ryan · Mar 16, 2022 6:03pm PDT

Ripple will give out 1 billion of its XRP tokens as grants for developers to create projects based on its payments-oriented distributed ledger, the company’s representatives told The Information. Based on the value of the digital currency, XRP, that translates to $794 million in tokens, which Ripple says it will disperse over the next 10... Ripple will give out 1 billion of its XRP tokens as grants for developers to create ...

Troy Aikman. Photo by Bloomberg.

What Troy Aikman’s ESPN Move Says About Amazon’s Status in Media

By Martin Peers · Mar 16, 2022 5:00pm PDT

ESPN’s confirmation today that it signed former star Dallas Cowboys quarterback Troy Aikman, along with sportscaster Joe Buck, to announce Monday Night Football games is a reminder of the pull that the Disney-controlled cable sports channel still exercises in the media. Aikman, most recently at Fox Sports, had been reportedly courted by Amazon... ESPN’s confirmation today that it signed former star Dallas Cowboys quarterback Troy Aikman,...

John Riccitiello, Credit: Unity

Unity CEO Riccitiello Responds to Calls to Cut Off Russia Accounts

By Mahira Dayal · Mar 16, 2022 4:19pm PDT

John Riccitiello, Credit: Unity

Creator Economy

Unity CEO Riccitiello Responds to Calls to Cut Off Russia Accounts

By Mahira Dayal · Mar 16, 2022 4:19pm PDT

Two weeks ago Ukraine officials called on gaming companies to temporarily block Russian accounts to encourage people to pressure the Russian government to stop its war in Ukraine. The response was mixed: Fortnite creator Epic Games said it’s blocking Russian purchases within games but wouldn’t stop game play; Electronic Arts said it’s removing... Two weeks ago Ukraine officials called on gaming companies to temporarily block Russian accounts...

Photo by AP.

Tech Executives Threatened With Jail Time Under Proposed U.K. Law

By Mark Di Stefano and Sylvia Varnham O'Regan · Mar 16, 2022 12:32pm PDT · 6 comments

Executives from Facebook parent Meta Platforms, TikTok and other big tech companies would face the prospect of jail time under sweeping new legislation proposed by the U.K. government that aims to curb illegal and harmful internet content. Under the Online Safety Bill, to be introduced on Thursday, tech executives may face criminal... Executives from Facebook parent Meta Platforms, TikTok and other big tech companies would face...

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

Google Buys microLED Supplier; Snap Expands AR for Landmarks; Meta’s New VR Parental Controls

By Mathew Olson · Mar 16, 2022 11:45am PDT

Here’s an Information-exclusive scoop that could send tremors throughout the AR/VR industry: Google has made a deal to buy Raxium, a Bay Area-based developer of microLED components. The move suggests that Google is indeed getting serious about launching a mixed reality headset and selling its Starline video conferencing booths within the next... Here’s an Information-exclusive scoop that could send tremors throughout the AR/VR industry: ...

Google co-founder Sergey Brin wearing Google Glass, the company's failed consumer smart glasses, a decade ago.

Google Buys Hardware Startup Raxium to Fuel AR Ambitions

By Josh Sisco, Stephen Nellis, Mathew Olson and Sarah Krouse · Mar 16, 2022 11:30am PDT · 1 comment

Google has struck a deal to buy Raxium, a five-year-old startup that develops tiny light-emitting diodes for displays used in augmented and mixed reality devices, according to people familiar with the deal. The acquisition, which has not been previously reported, is a sign that Google wants to own more of the physical components needed to... Google has struck a deal to buy Raxium, a five-year-old startup that develops tiny light-emitting...

Illustration by Jesus Escudero

Web 2.0 Investors Aren’t Cut Out for the Web3 World

By Edith Yeung · Mar 16, 2022 9:00am PDT · 10 comments

Illustration by Jesus Escudero

Web 2.0 Investors Aren’t Cut Out for the Web3 World

By Edith Yeung · Mar 16, 2022 9:00am PDT · 10 comments

Solana was my very first token investment, and it was not an easy one to make. Back in 2018 when I first met Solana co-founder Anatoly Yakovenko, my fund at the time, 500 Mobile Collective, was legally not allowed to invest in digital assets. To back Yakovenko’s company, then known as Loom, I had to get two-thirds of my limited partners to... Solana was my very first token investment, and it was not an easy one to make. Back in 2018 when...

A worker for the instant delivery service Buyk in New York. Photo by Shutterstock

Hours After Russian Invasion, Funding for Instant-Delivery Startup Collapsed

By Berber Jin · Mar 16, 2022 6:00am PDT

In February, instant-delivery firm Buyk was just days away from receiving $275 million in cash when the Russian invasion of Ukraine sent the startup spiraling into liquidation, co-founder Rodion Shishkov told The Information. The New York–based startup had arranged new funding from Russian investors including USM Holdings, the global... In February, instant-delivery firm Buyk was just days away from receiving $275 million in cash...

Simon Morris, Chief Strategy Officer of ConsenSys. Photo by ConsenSys. Art by Mike Sullivan.

ConsenSys’s MetaMask Growth Drives $7 Billion Valuation

By Akash Pasricha · Mar 15, 2022 6:18pm PDT

To anyone wondering if the months-long crypto slump that tanked token prices is holding back investments in blockchain startups, ConsenSys’s whopping $450 million Series D fundraising, at a $7 billion post-money valuation, provides a partial answer.The New York company more than doubled its valuation since its previous funding round in November,... To anyone wondering if the months-long crypto slump that tanked token prices is holding back...

Arm CEO Rene Haas. Photo by Bloomberg.

Arm’s Job Cuts Could Be a Sign of Things to Come

By Martin Peers · Mar 15, 2022 5:00pm PDT

Amid the crush of bad news lately, one thing we haven’t seen too much of is job cuts. In fact, the story has been more about the tightness of the labor market, as tech companies struggle to hire enough people. But a Bloomberg report today about chip designer Arm planning to cut up to 1,000 jobs to improve its profitability ahead of an IPO may be... Amid the crush of bad news lately, one thing we haven’t seen too much of is job cuts. In fact,...

Meta Platforms CEO Mark Zuckerberg during a virtual conference in October. Photo: Bloomberg

Zuckerberg on Instagram NFTs; How Facebook Could Use its TikTok Account

By Mahira Dayal · Mar 15, 2022 3:38pm PDT

Meta Platforms CEO Mark Zuckerberg during a virtual conference in October. Photo: Bloomberg

Creator Economy

Zuckerberg on Instagram NFTs; How Facebook Could Use its TikTok Account

By Mahira Dayal · Mar 15, 2022 3:38pm PDT

Mark Zuckerberg’s meandering keynote at SXSW was fairly short on details. But he did drop a few:In the next several months, users will be able to bring their non-fungible tokens to Instagram, the Meta Platforms’ founder and CEO said via video livestream to the festival on Tuesday. Zuckerberg added that users will also eventually be able to mint... Mark Zuckerberg’s meandering keynote at SXSW was fairly short on details. But he did drop a few:...

A soldier wearing the IVAS headset during a test. Photo: Microsoft/U.S. Army.

More Doubts on the Army’s AR Deal; Adobe’s New Metaverse Angle

By Mathew Olson · Mar 15, 2022 11:30am PDT

It’s been almost a year since Microsoft won a $22 billion U.S. Army contract to create combat-ready AR headsets based on HoloLens technology. The work doesn’t appear to be going well; a new report from Business Insider quotes from a memo sent to members of Microsoft’s team working on the headsets warning that the company is “expecting negative... It’s been almost a year since Microsoft won a $22 billion U.S. Army contract to create...

TSMC CEO C. C. Wei, center, at the company's annual shareholder meeting in Taiwan in 2020. Photo by Bloomberg

Apple’s Latest Chip Could Help TSMC Gain an Edge on Intel in New Battleground

By Stephen Nellis · Mar 15, 2022 10:28am PDT · 1 comment

When Apple Inc. introduced its newest computer last week—a boxy desktop machine called Mac Studio—the star of the show was the powerful chip at the heart of it. But that chip, the M1 Ultra, isn’t new at all. It consists of two existing Apple chips—the M1 Max, which powers Apple’s high-end MacBook Pro... When Apple Inc. introduced its newest computer last week—a boxy desktop machine called Mac...

Photo by Bloomberg

Startups to Watch

Five Cloud Startups Going After AWS’ Blind Spots

By Kevin McLaughlin · Mar 15, 2022 6:00am PDT · 4 comments

Amazon Web Services has built a commanding lead in the cloud computing market by listening to what services and features its customers want and then delivering them. But some application developers believe AWS, in its relentless pursuit of Fortune 500 customers to fuel revenue growth, has become more aligned with corporate IT departments than... Amazon Web Services has built a commanding lead in the cloud computing market by listening to...

Amy Wu, Head of FTX Ventures. Photo by FTX Ventures. Art by Akash Pasricha.

FTX Ventures’ Amy Wu on Startup Valuations and Rate Hikes; Stellar Foundation Backs Early Stage Startups

By Akash Pasricha · Mar 14, 2022 6:20pm PDT

Amy Wu, Head of FTX Ventures. Photo by FTX Ventures. Art by Akash Pasricha.

FTX Ventures’ Amy Wu on Startup Valuations and Rate Hikes; Stellar Foundation Backs Early Stage Startups

By Akash Pasricha · Mar 14, 2022 6:20pm PDT

The Federal Reserve is expected to raise the federal funds target rate this week by a quarter percentage point, from 0%-0.25%, and major banks have forecast it will steadily raise rates to as high as 2% this year. One way of valuing companies, using discounted cash flows, suggests these rising rates should compress private valuations even among... The Federal Reserve is expected to raise the federal funds target rate this week by a quarter...