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

Photo credit: Mike Sullivan

Creator Economy

Why Creator Boycotts Are Spreading; Amazon Starts Social Audio

By Kaya Yurieff · Aug 31, 2021 4:00pm PDT · 1 comment

On Wednesday, some Twitch streamers plan to boycott the live-gaming service for a day in response to “hate raids,” where trolls flood chats with bots spewing harassing messages. People of color and streamers who are LGBTQ+ are often the targets. Emily Bello, who runs a video game live-streaming account on Twitch with her husband, told me... On Wednesday, some Twitch streamers plan to boycott the live-gaming service for a day in response...

Photo by Bloomberg

A Rival to Upwork, Fiverr Uses Blockchain to Slash Fees

By Hannah Miller · Aug 31, 2021 3:23pm PDT

Blockchain technology is mostly associated with creating and using cryptocurrencies. But a project called Braintrust uses the decentralized structure—controlled by users rather than a company—for something very different: finding work.Founded in 2018, Braintrust connects skilled tech freelancers with clients like Goldman Sachs, American Eagle... Blockchain technology is mostly associated with creating and using cryptocurrencies. But a...

ByteDance's founder Zhang Yiming, who is stepping down as CEO this later year. Photo by Bloomberg.

Where ByteDance Might Go Next in VR and AR

By Mathew Olson · Aug 31, 2021 11:00am PDT

ByteDance’s acquisition of headset maker Pico Interactive, confirmed Monday, is undoubtedly one of the most intriguing acquisitions in the VR space since Facebook’s purchase of Oculus in 2014. Arriving hot on the heels of news around AR creator tools for TikTok, the deal suggests ByteDance aims to compete with Facebook not just in social media,... ByteDance’s acquisition of headset maker Pico Interactive, confirmed Monday, is undoubtedly one...

An employee working at Alibaba's logistics unit Cainiao. Photo by Bloomberg

Alibaba Rival J&T Express in Talks to Raise $1 Billion from Tencent and Other Investors

By Juro Osawa · Aug 31, 2021 10:15am PDT

An employee working at Alibaba's logistics unit Cainiao. Photo by Bloomberg

Alibaba Rival J&T Express in Talks to Raise $1 Billion from Tencent and Other Investors

By Juro Osawa · Aug 31, 2021 10:15am PDT

J&T Express, a fast-growing Asian startup that is challenging Alibaba’s logistics network in a brutal price war, is in talks to raise more than $1 billion from Tencent and other investors at a pre-money valuation of $20 billion, people familiar with the matter said. The investment could make J&T one of Asia’s most highly... J&T Express, a fast-growing Asian startup that is challenging Alibaba’s logistics...

FTC chair Lina Khan. Photo by Bloomberg.

FTC Chief Khan Faces New Pressure on Amazon Deal—From Progressives

By Josh Sisco · Aug 31, 2021 7:49am PDT

Two weeks ago, a $2.5 billion merger of two big U.S. food distributors closed without an in-depth antitrust review by the Federal Trade Commission. That surprised both of the companies, as well as some of FTC Chair Lina Khan’s key allies, who had expected her to challenge any major attempt at corporate consolidation. In a sign that... Two weeks ago, a $2.5 billion merger of two big U.S. food distributors closed without an in-depth...

Vice cofounder Shane Smith. Photo by Bloomberg

Vice Raises $85 Million as SPAC Talks End, Smith Yields Control

By Jessica Toonkel · Aug 31, 2021 6:00am PDT

Vice Media is raising over $85 million in fresh capital from existing investors, as talks to go public via a special purpose acquisition company have ended for now, according to people familiar with the situation. As part of the fundraising, Vice’s co-founder, Shane Smith, has agreed to give up his voting control, said the people. He... Vice Media is raising over $85 million in fresh capital from existing investors, as talks to go...

Alphabet CEO Sundar Pichai. Photo by Bloomberg.

Google’s App Store Profits No Plaything

By Martin Peers · Aug 30, 2021 5:00pm PDT

It seems only to be a matter of time before Apple and Google have to give up the tight controls they exercise over their mobile app stores, given the onslaught of litigation, investigation and legislation they each face around the world. And that means investors need to start thinking about the bottom line impact of the potential changes.We got... It seems only to be a matter of time before Apple and Google have to give up the tight controls...

Photo: Mike Sullivan

Startup Sees Apple ‘Firewall’ Lowering Over App Store Fees

By Kaya Yurieff · Aug 30, 2021 4:00pm PDT

Photo: Mike Sullivan

Creator Economy

Startup Sees Apple ‘Firewall’ Lowering Over App Store Fees

By Kaya Yurieff · Aug 30, 2021 4:00pm PDT

Apple’s recent decision to allow app makers to tell customers about payment options outside its mobile App Store largely underwhelmed developers. But Sahil Lavingia, founder and CEO of Gumroad, a seller of services for creators, said there’s reason to believe Apple could eventually concede to future demands. “It feels like the narrative is... Apple’s recent decision to allow app makers to tell customers about payment options outside its...

Square CEO Jack Dorsey. Photo by Bloomberg

Jack Dorsey’s Square Moves Closer to a Bitcoin Exchange

By Hannah Miller · Aug 30, 2021 3:44pm PDT

Jack Dorsey’s Square has gotten a step closer to starting a decentralized exchange dedicated to bitcoin, a move that will set Square apart from other payments companies such as PayPal and Stripe—and could mark the first time a major company outside crypto delves into decentralized finance. On Friday, Dorsey tweeted details about Square’s... Jack Dorsey’s Square has gotten a step closer to starting a decentralized exchange dedicated to...

Melio chief operating officer Ziv Paz (left) CEO Matan Bar (center) and chief technology officer Ilan Atias (right) Photo: Business Wire

Payments Startup Melio to Triple Valuation to $4 Billion

By Kate Clark · Aug 30, 2021 2:23pm PDT

Melio Payments is tripling its valuation in a new funding round that will value the financial software company at $4 billion, according to three people with direct knowledge of the deal. Thrive Capital, the New York–based investment firm founded by Josh Kushner, and existing backer General Catalyst are co-leading the financing, one of the... Melio Payments is tripling its valuation in a new funding round that will value the financial...

A vistor to the DuSable Museum watches the "I Have a Dream" speech presented in VR. Photo by AP.

The Growing Pains of Exploring History Using VR and the Metaverse

By Mathew Olson · Aug 30, 2021 11:00am PDT

However well-meaning, a new attempt by Time magazine and Epic Games to teach history through Epic’s Fortnite has sparked debate around how videogames, VR and the metaverse should handle historical subjects.Launched late last week, the “March Through Time” experience in Fortnite is a digital exhibit based on 1963’s March on Washington, including... However well-meaning, a new attempt by Time magazine and Epic Games to teach history through Epic...

Startup investor Elad Gil. Photo by Bloomberg, Illustration by Joanna Lin Su.

The Rise of Elad Gil, Silicon Valley’s Biggest Solo Venture Capitalist

By Berber Jin · Aug 30, 2021 6:01am PDT · 4 comments

Startup investor Elad Gil. Photo by Bloomberg, Illustration by Joanna Lin Su.

The Rise of Elad Gil, Silicon Valley’s Biggest Solo Venture Capitalist

By Berber Jin · Aug 30, 2021 6:01am PDT · 4 comments

When venture capital investors shied from funding travel startups in the months after the pandemic hit last year, Elad Gil sensed an opportunity. The investor asked TripActions CEO Ariel Cohen if he could invest in his startup, which provides travel-related expense management software for businesses. The deal didn’t happen—Gil... When venture capital investors shied from funding travel startups in the months after the...

Nano One CEO Dan Blondal in his "One Pot" pilot factory. Photo: Courtesy Nano One

These Startups Are Reconfiguring the Lithium-ion Battery. Their Aim Is to Beat China.

By Steve LeVine · Aug 29, 2021 2:00pm PDT

Save the Date: The Electric Presents: Making the Forever Battery. In its second live chat, The Electric is delighted to present a conversation between editor Steve LeVine and Sila Nanotechnologies CEO Gene Berdichevsky, who for a decade and a half has helped lead development of some of the world’s most important commercial batteries. Sept.... Save the Date: The Electric Presents: Making the Forever Battery. In its second live chat,...

What Silicon Valley Got Wrong About OnlyFans

By Jessica E. Lessin · Aug 28, 2021 7:45am PDT · 7 comments

Here’s a puzzle I can’t quite crack when it comes to Silicon Valley: Investors, entrepreneurs and reporters here pride themselves on spotting what’s new. Yet they so often gravitate to the old and familiar. Investors fund entrepreneurs who look and act like those who came before them. Entrepreneurs emulate iconic leaders like Steve Jobs,... Here’s a puzzle I can’t quite crack when it comes to Silicon Valley: Investors, entrepreneurs and...

The Curious Timing of Apple’s App Store Settlement; Amazon’s Affirm-ation

By Josh Sisco · Aug 27, 2021 5:31pm PDT

Late last night, Apple caught a break in its ongoing battle with app makers. To settle a class action antitrust lawsuit from a group of small developers, Apple will fork over $100 million to give to those who generate less than $1 million in annual revenue. It will also loosen some of the restrictions that had prevented developers from letting... Late last night, Apple caught a break in its ongoing battle with app makers. To settle a class...

Google Cloud chief Thomas Kurian. Photo by Bloomberg

Why a $2 Billion Google Cloud Contract Has Generated Only $10 Million in Revenue So Far

By Kevin McLaughlin and Amir Efrati · Aug 27, 2021 12:18pm PDT · 1 comment

Google Cloud chief Thomas Kurian. Photo by Bloomberg

Why a $2 Billion Google Cloud Contract Has Generated Only $10 Million in Revenue So Far

By Kevin McLaughlin and Amir Efrati · Aug 27, 2021 12:18pm PDT · 1 comment

Sabre Corp. CEO Sean Menke says his company’s decadelong agreement with Google Cloud, announced January 2020, is the key to finally weaning the 61-year-old provider of travel-booking technology off mainframe computers. Judging from how Menke has described Sabre’s work with Google Cloud during recent earnings calls with stock... Sabre Corp. CEO Sean Menke says his company’s decadelong agreement with Google Cloud,...

A-Star Partners co-founders and general partners Bennett Siegel, Kevin Hartz and Gautam Gupta. Source: A-Star Partners

Fund Led by PayPal, Airbnb Backer Kevin Hartz Targets $250 Million

By Kate Clark · Aug 27, 2021 6:00am PDT · 1 comment

Kevin Hartz, best known for his early, lucrative investments in PayPal, Airbnb and Pinterest, is raising $250 million for a new venture capital fund alongside former Coatue Management partner Bennett Siegel and Gautam Gupta, a former finance executive at Opendoor and Uber, according to two people familiar with the matter. The new firm, A-Star... Kevin Hartz, best known for his early, lucrative investments in PayPal, Airbnb and Pinterest, is...

Mathias Döpfner, chief executive officer of Axel Springer SE, at a conference in 2019. Photo by Bloomberg

The Risk of the Politico Deal; Peloton’s Party Ends

By Jessica E. Lessin · Aug 26, 2021 5:00pm PDT

I interrupt this regular Briefing—which will once again be brought to you by Martin Peers next week when he returns from vacation—with a dispatch from the land of the news media, which seemed to be on fire Thursday. German media company Axel Springer agreed to buy Politico in a deal worth more than $1 billion. Forbes is preparing to go... I interrupt this regular Briefing—which will once again be brought to you by Martin Peers next...

Chart credit: Joanna Lin Su

Creator Economy

TI Creator Economy: Charting SoftBank’s Creator Economy Bets

By Kaya Yurieff · Aug 26, 2021 4:00pm PDT

Our latest chart highlights an underlying theme of SoftBank’s strategy when it comes to backing creator economy startups: Artificial intelligence is key. Of the two creator economy deals that SoftBank Vision Fund 2 led this year, both are AI-related. All of its creator economy investments this year were for Series C rounds. The most recent... Our latest chart highlights an underlying theme of SoftBank’s strategy when it comes to backing...

A billboard in Birmingham, Ala. opposing crypto tax reporting requirements in the infrastructure bill. Photo: Fight for the Future

The ‘Don’t Kill Crypto’ Billboard; The Rise of Crypto Compliance Startups

By Hannah Miller · Aug 26, 2021 2:48pm PDT

A billboard in Birmingham, Ala. opposing crypto tax reporting requirements in the infrastructure bill. Photo: Fight for the Future

The ‘Don’t Kill Crypto’ Billboard; The Rise of Crypto Compliance Startups

By Hannah Miller · Aug 26, 2021 2:48pm PDT

With the deadline for a key vote on the bipartisan infrastructure bill just a month away, the controversy surrounding the bill’s crypto tax reporting requirements continues to heat up. A billboard emblazoned with “#Don’tKillCrypto” that went up in Birmingham, Ala., is gaining traction, showing that the fight over proposed legislation isn’t... With the deadline for a key vote on the bipartisan infrastructure bill just a month away, the...