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

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The Briefing

By Martin Peers, Jessica E. 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

Sam Bankman-Fried. Photo by Bloomberg

In FTX Bankruptcy, Startup Stakes Could Be Sold Off Fast

By Aidan Ryan · Nov 11, 2022 1:47pm PST

The bankruptcy of Sam Bankman-Fried’s global crypto exchange FTX, its U.S. affiliate and Alameda Research means its stakes in startups including Aptos Labs, Mysten Labs and the Near Protocol could be for sale. FTX invested at least $1 billion on venture bets in these and other companies. Selling those stakes could generate cash that could... The bankruptcy of Sam Bankman-Fried’s global crypto exchange FTX, its U.S. affiliate and...

Sam Bankman-Fried. Photo by Bloomberg.

Inside the Venture FOMO Machine That Powered SBF’s Meteoric Rise

By Cory Weinberg · Nov 11, 2022 1:18pm PST · 7 comments

Venture capitalists who had managed to get into white-hot deals to fund the cryptocurrency exchange FTX in the past couple of years used to boast privately that Sam Bankman-Fried was “the most important person in crypto.” The 30-year-old, shaggy-haired finance savant not only controlled two separate cryptocurrency exchanges and a... Venture capitalists who had managed to get into white-hot deals to fund the cryptocurrency...

Graphic by Mike Sullivan.

SBF’s Web of Influence Is a Tangled Mess of Investors, Investments, and Firms Stuck In Between

By Akash Pasricha · Nov 11, 2022 11:48am PST

Sam Bankman-Fried touched nearly everything under the crypto sun. Now that his kingdom has imploded, more and more of his sprawling web of financial ties is coming to light. The firms interacting with Bankman-Fried were at times intertwined, playing multiple roles in his life. Multicoin Capital, for example, was not only an investor in... Sam Bankman-Fried touched nearly everything under the crypto sun. Now that his kingdom has...

Animation by Clark Miller.

Matt Levine Explains the World: A ‘Weird’ Walk in the Park With the Star Bloomberg Columnist

By Abram Brown · Nov 11, 2022 11:00am PST · 17 comments

Animation by Clark Miller.

Matt Levine Explains the World: A ‘Weird’ Walk in the Park With the Star Bloomberg Columnist

By Abram Brown · Nov 11, 2022 11:00am PST · 17 comments

A few months ago, Matt Levine, Bloomberg’s ascendant tech and finance columnist, schlepped from his home in Westchester County into New York with his wife and three small children to have weekend brunch on the Upper West Side, joined by his parents, his aunt and his uncle. The whole extended Levine clan was enjoying their meal when a woman... A few months ago, Matt Levine, Bloomberg’s ascendant tech and finance columnist, schlepped from...

FTX’s VC Backers That Lost the Most

By Kate Clark · Nov 11, 2022 9:07am PST

A sovereign wealth fund, a public pension fund, and dozens of venture capital firms invested $2 billion in FTX, propelling its valuation to $32 billion in January. FTX’s chapter 11 bankruptcy filing on Friday will likely wipe out the value of the equity stakes. Already several prestigious investment firms that backed it are marking their... A sovereign wealth fund, a public pension fund, and dozens of venture capital firms invested $2...

Tech Goes Cold Turkey: Inside Silicon Valley’s New Temperance Society

By Annie Goldsmith · Nov 11, 2022 9:00am PST · 5 comments

The year was 2008, and at Justin Kan’s Y Combinator–funded livestreaming site, Justin.tv, the end of the week meant only one thing: Fine Alcohol Friday. The ritual began when someone—Kan doesn’t remember who—sent a bottle of Johnnie Walker Blue Label to the company offices. “It wasn’t even that good, to be honest,” he recalled. Justin.tv was... The year was 2008, and at Justin Kan’s Y Combinator–funded livestreaming site, Justin.tv, the end...

Illustration by Josh Brill.

Amid Layoffs, Tech Companies Throw Cash, Stock at the Workers They Still Want

By Mark Matousek · Nov 11, 2022 7:00am PST · 1 comment

In August, amid a slump in stock and crypto prices, Robinhood took the dramatic step of slashing 23% of its workforce, just four months after laying off 9% of its employees. But those who survived the online brokerage’s cuts soon got an incentive to stick around and work hard. Shortly after the layoff, Robinhood told employees it would... In August, amid a slump in stock and crypto prices, Robinhood took the dramatic step of slashing...

Art by Mike Sullivan

Apple Loses Web Search Technology Chief to Google

By Jon Victor · Nov 11, 2022 6:00am PST

Art by Mike Sullivan

Apple Loses Web Search Technology Chief to Google

By Jon Victor · Nov 11, 2022 6:00am PST

In late 2018, Apple boosted its development of a web search engine by buying Laserlike, a startup founded by a trio of former Google search engineers to recommend websites to people based on their interests and browsing history. Four years later, Laserlike’s founders have returned to Google, according to a person with knowledge of the... In late 2018, Apple boosted its development of a web search engine by buying Laserlike, a startup...

Photo by Bloomberg

Musk’s Cure Is Making Twitter Sicker

By Martin Peers · Nov 10, 2022 5:00pm PST · 2 comments

Elon Musk certainly dodged a bullet when it comes to Sam Bankman-Fried. Those paying attention might remember that text messages unearthed in the Twitter litigation showed Bankman-Fried’s adviser suggesting to Musk in March that the FTX founder could easily invest up to $8 billion—and up to $15 billion “with financing”—in a joint Twitter... Elon Musk certainly dodged a bullet when it comes to Sam Bankman-Fried. Those paying attention...

Gwynne Shotwell. Photo by Bloomberg.

SpaceX’s Gwynne Shotwell Takes Over Starbase Mars Mission

By Becky Peterson · Nov 10, 2022 3:08pm PST · 2 comments

SpaceX President and Chief Operating Officer Gwynne Shotwell will assume oversight of the company’s Starbase facility in Texas that is building Starship, the rocket planned for a trip to Mars, according to two people familiar with the change. The appointment is part of a reorganization at Starbase that follows a summer of strategy... SpaceX President and Chief Operating Officer Gwynne Shotwell will assume oversight of the...

Creator Alyssa McKay posts on Snapchat about 100 times per day. Photo: Brian Nelson

Creator Economy

Musk’s Twitter Wants to Take On YouTube; The Snapchat Creator Who Posts 100 Times Per Day

By Kaya Yurieff · Nov 10, 2022 2:58pm PST

We knew Elon Musk wanted to go big with his new Twitter purchase. Now we know just how high he’s aiming—YouTube. Musk, at an all-hands with Twitter’s product meeting Thursday, indicated he has aspirations to turn Twitter into a home for video creators, including by sharing ad revenue with those who post videos on Twitter. We knew Elon Musk wanted to go big with his new Twitter purchase. Now we know just how high he’s...

Amy Wu. Photo via YouTube

FTX’s $2 Billion Startup Fund Ensnared in Collapse

By Kate Clark · Nov 10, 2022 1:35pm PST

Amy Wu. Photo via YouTube

FTX’s $2 Billion Startup Fund Ensnared in Collapse

By Kate Clark · Nov 10, 2022 1:35pm PST

The Lehman Brothers–style collapse of crypto exchange FTX is shaping up to be a major embarrassment for the venture investors who backed it. Already it’s left one VC fund in shambles: FTX’s own venture investing arm, FTX Ventures. In fact, at least one startup that received an investment from the 10-month fund has taken advantage of FTX’s... The Lehman Brothers–style collapse of crypto exchange FTX is shaping up to be a major ...

Elon Musk.

Musk Warns Twitter May Lose Billions Next Year

By Erin Woo · Nov 10, 2022 1:13pm PST · 5 comments

Elon Musk told Twitter employees on Thursday the company may have a “net negative cash flow of several billion dollars” next year, adding that “bankruptcy is not out of the question” if the company can’t “bring in more cash than we spend." “We can’t scale to a billion users and take massive... Elon Musk told Twitter employees on Thursday the company may have a “net negative cash flow...

Photo by FTX Arena.

From Voyager to Miami, FTX Implosion Leaves Crypto World in Limbo

By Maria Heeter, Aidan Ryan and Akash Pasricha · Nov 10, 2022 12:45pm PST · 1 comment

The near-collapse of Sam Bankman-Fried’s crypto empire, FTX, has sent shockwaves across the crypto industry, leaving many firms with ties to Bankman-Fried in limbo. Most notably, Bankman-Fried was poised to buy up the assets of bankrupt crypto lender Voyager, but while that agreement was announced in September, it hasn’t closed.... The near-collapse of Sam Bankman-Fried’s crypto empire, FTX, has sent shockwaves across the...

Art by Mike Sullivan

Modest Proposals

From Theranos to FTX: Silicon Valley’s ‘No Additional Work Required’ Late-Stage VC Culture and What to Do About It

By Sam Lessin · Nov 10, 2022 12:20pm PST · 18 comments

First, two caveats: I have invested in two outright frauds in my life (to my knowledge) and lost in total a few million dollars on them. At the seed investment stage, losing around 1% to things that turn out to be frauds probably says you’re being innovative. I pick on Marc Andreessen for his “no additional work required” line,... First, two caveats: I have invested in two outright frauds in my life (to my knowledge) and lost...

Photo by Bloomberg.

FTX’s Bankman-Fried Quietly Invested More than $500 Million in Sequoia and Other VCs

By Kate Clark · Nov 10, 2022 11:53am PST · 3 comments

Photo by Bloomberg.

FTX’s Bankman-Fried Quietly Invested More than $500 Million in Sequoia and Other VCs

By Kate Clark · Nov 10, 2022 11:53am PST · 3 comments

FTX founder Sam Bankman-Fried was not only a tireless fundraiser from venture capital firms including Paradigm and Sequoia Capital, but also quietly made investments in those same funds, according to two people familiar with the matter. The unusual moves show how entangled Silicon Valley VC firms are in Bankman-Fried’s collapsing crypto... FTX founder Sam Bankman-Fried was not only a tireless fundraiser from venture capital firms...

Coinbase headquarters in San Francisco. Photo by Getty.

Coinbase Is Cutting More Jobs

By Aidan Ryan · Nov 10, 2022 10:45am PST

Coinbase is laying off staff in a fresh round of cuts, a company spokesperson confirmed. The layoffs, announced internally on Thursday, affect the company’s recruiting and institutional onboarding teams. The cuts come as the broader crypto industry is reeling from the high-profile struggles of the FTX crypto exchange, which have... Coinbase is laying off staff in a fresh round of cuts, a company spokesperson confirmed. The...

Art by Shane Burke/Shutterstock

TikTok’s Secret Weapon Has Always Been Audio

By Ryan Broderick · Nov 10, 2022 9:00am PST · 2 comments

There have been whispers all summer that some kind of stand-alone audio app is coming from TikTok. In May of 2020, TikTok launched a social music app called Resso in Brazil, Indonesia and India. Then in late July, Insider reported that the company had filed a trademark for “TikTok Music,” which would allow users to “purchase,... There have been whispers all summer that some kind of stand-alone audio app is coming from...

ServiceTitan's co-founders Ara Mahdessian (left) and Vahe Kuzoyan. Photo by ServiceTitan.

ServiceTitan Held Talks to Raise Money at 20% Valuation Cut

By Maria Heeter · Nov 10, 2022 7:00am PST

Software startup ServiceTitan, which about two months ago was trying to raise $900 million in a form of pricey debt-like funding, is going a different route—one that involves a different kind of pain. The company has held talks within the last few weeks to raise about $600 million in traditional equity from investors including TPG, at a... Software startup ServiceTitan, which about two months ago was trying to raise $900 million in a...

CEOs Mario Schlosser of Oscar Health, David Baszucki of Roblox, Tony Xu of DoorDash and Vlad Tenev of Robinhood (left to right) received "mega grants" of stock, but are far from realizing any of the shares. Photos by Bloomberg and Getty Images. Background created with DALL-E 2.

These CEOs Wanted to Be Paid Like Musk. They Failed

By Cory Weinberg · Nov 10, 2022 6:00am PST · 4 comments

CEOs Mario Schlosser of Oscar Health, David Baszucki of Roblox, Tony Xu of DoorDash and Vlad Tenev of Robinhood (left to right) received "mega grants" of stock, but are far from realizing any of the shares. Photos by Bloomberg and Getty Images. Background created with DALL-E 2.

These CEOs Wanted to Be Paid Like Musk. They Failed

By Cory Weinberg · Nov 10, 2022 6:00am PST · 4 comments

Elon Musk became the world’s richest person in part through a controversial pay plan four years ago that awarded him millions of additional Tesla shares as the company’s valuation swelled. Other tech CEOs took note. Many executives taking their companies public in the years following reached for similarly massive deals. But it... Elon Musk became the world’s richest person in part through a controversial pay plan four...