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

The Andreessen Effect — The Information’s 411

By Cory Weinberg · Apr 23, 2021 12:17pm PDT

Cory talks to Kate Clark about what her recent reporting on Andreessen Horowitz tells us about the firm’s history and its strategy to win deals. Then, Kevin McLaughlin discusses his story looking at why high-profile artificial intelligence startup DataRobot ousted its CEO. Cory talks to Kate Clark about what her recent reporting on Andreessen Horowitz tells us about...

Average Tech IPO First Day Pops Drop by a Third Since March

By Berber Jin · Apr 23, 2021 9:02am PDT · 4 comments

If it seems like the stock market has cooled a little on new offerings, that’s because it has. Since March, the share price of tech companies going public in an initial public offering have risen an average of 41% on the first day of trading, down from an average first-day pop of 59% in January and February, according to data from... If it seems like the stock market has cooled a little on new offerings, that’s because it...

Slack employees at the company's New York office. Photo provided by Slack

Slack’s Investigation Into Executive Highlights Diversity Challenges

By Kevin McLaughlin · Apr 23, 2021 6:00am PDT · 5 comments

Earlier this week, Slack revealed that underrepresented minorities have begun leaving the company at higher rates than in the past, disclosing the trend as part of a broader report about the diversity of its workforce. It’s a particularly sensitive issue for Slack’s CEO, Stewart Butterfield, who has long been a vocal proponent of... Earlier this week, Slack revealed that underrepresented minorities have begun leaving the company...

Snap CEO Evan Spiegel. Photo by Bloomberg.

The Briefing: Snap’s (Mostly) Great Quarter

By Martin Peers · Apr 22, 2021 5:30pm PDT

Snap CEO Evan Spiegel. Photo by Bloomberg.

The Briefing: Snap’s (Mostly) Great Quarter

By Martin Peers · Apr 22, 2021 5:30pm PDT

If Snap’s earnings today are any guide, the digital advertising sector had a booming first quarter. Snap continued a streak of robust results by reporting 66% higher revenue and, for the first time, generating real cash. The top line increase, which was better than Snap had projected, marked the third quarter in a row where Snap’s... If Snap’s earnings today are any guide, the digital advertising sector had a booming first...

A screenshot from Lone Echo 2. Image from Ready at Dawn/Oculus Studios

TI Reality Check: A Subdued Oculus Gaming Showcase

By Mathew Olson · Apr 22, 2021 11:02am PDT

As any videogames journalist will tell you, Nintendo puts on some of the most high-energy events in the games business, jamming them with new product announcements and attracting millions of views to streamed versions of the nearly hour-long events. While its rivals often try to mimic the spirit of the Nintendo events, with varying degrees of... As any videogames journalist will tell you, Nintendo puts on some of the most high-energy events...

Tim Cook, left, and Tim Sweeney. Photos by Bloomberg; Getty Images

Why Apple Has the Edge in Epic Antitrust Trial

By Josh Sisco · Apr 22, 2021 6:00am PDT · 1 comment

In 11 days, Epic Games will square off against Apple in an Oakland, Calif., courtroom in a trial over whether the iPhone maker violated U.S. antitrust law by forcing the videogame app developer to pay certain fees. A win by Epic would reshape the world’s most valuable company and carve a path for competitors and governments to challenge... In 11 days, Epic Games will square off against Apple in an Oakland, Calif., courtroom in a trial...

Sen. Amy Klobuchar at today's hearing. Photo by Bloomberg

The Briefing: Tile’s Powerful Strike Against Apple

By Martin Peers · Apr 21, 2021 5:02pm PDT · 1 comment

Congressional hearings involving tech executives have lately been dull affairs, with politicians ranting on one side and tech CEOs offering bland assurances on the other. But Wednesday’s Senate hearing into app stores was a different matter. In the testimonies of Tile general counsel Kirsten Daru and Spotify global affairs chief Horacio... Congressional hearings involving tech executives have lately been dull affairs, with politicians...

Rapyd's office in Mountain View, Calif. Photo: AP

Fintech Startup Rapyd Doubles Valuation Again to Over $5 Billion

By Kate Clark · Apr 21, 2021 4:23pm PDT

Rapyd's office in Mountain View, Calif. Photo: AP

Fintech Startup Rapyd Doubles Valuation Again to Over $5 Billion

By Kate Clark · Apr 21, 2021 4:23pm PDT

Rapyd, a startup whose technology helps businesses embed financial services into their own apps, is raising money in a round that would double its valuation to more than $5 billion, just four months after unveiling its last fundraising, according to two people familiar with the deal. Existing investors including European venture firm Target... Rapyd, a startup whose technology helps businesses embed financial services into their own apps,...

Partner Roundtable

Shift to Consumption-Based Cloud Models Create New Challenges

By The Information Staff · Apr 21, 2021 11:07am PDT

On April 7th, The Information hosted a roundtable discussion with business leaders to discuss the shift to a consumption-based cloud pricing model. The event and conversation, sponsored by PwC, was confidential. We want to share with our subscribers several key themes business leaders are facing in the fluctuating cloud consumption model at... On April 7th, The Information hosted a roundtable discussion with business leaders to discuss the...

Apple's Raja Bose discusses Apple's M1 chip at the company's spring event on Tuesday. Screenshot via Apple.com

TI Reality Check: Apple’s M1 Chip Meets AR

By Mathew Olson · Apr 21, 2021 11:01am PDT · 2 comments

Apple is conserving its energy. Yesterday’s product event—the company’s first in 2021—was of special interest to podcasters and folks who pine for those old colorful iMac G3s. It didn’t really come across as a look at Apple’s future, though, save for one possible exception. M1, Apple’s proprietary chip... Apple is conserving its energy. Yesterday’s product event—the company’s first...

DataRobot founder and former CEO Jeremy Achin in a screengrab from a company promotional video via YouTube

Conflict Over IPO, Sales Led to CEO Ouster at DataRobot

By Kevin McLaughlin · Apr 21, 2021 6:01am PDT · 2 comments

Jeremy Achin had had enough of the questions about an initial public offering. Late last year, Achin—then the CEO of DataRobot, a nine-year-old artificial intelligence startup valued at nearly $3 billion by blue-chip investors—presided over a virtual company meeting in which he responded pointedly to employee questions about when... Jeremy Achin had had enough of the questions about an initial public offering. Late last year,...

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

The Briefing: Netflix’s Growth Hits a Wall

By Martin Peers · Apr 20, 2021 5:31pm PDT

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

The Briefing: Netflix’s Growth Hits a Wall

By Martin Peers · Apr 20, 2021 5:31pm PDT

Netflix has lost its luster with investors, no doubt about that. Shares of the video-streaming giant dropped 10% in after-hours trading after the company reported a sharp slowdown in subscriber growth in the first quarter, and projected negligible growth for the second quarter. The news likely confirmed investor worries about increased... Netflix has lost its luster with investors, no doubt about that. Shares of the video-streaming...

Joseph Jerome of Common Sense Media.

TI Reality Check: VR’s Overlooked Privacy Problems

By Mathew Olson · Apr 20, 2021 11:00am PDT · 1 comment

Tech companies and government regulators around the world are battling over how consumers’ personal information should be protected on the internet. But often overlooked in these debates are the privacy issues that accompany virtual and augmented reality technology. As we move to more sophisticated VR headsets and, eventually, to all-day... Tech companies and government regulators around the world are battling over how consumers’...

Illustration by Mike Sullivan

‘Truly extraordinary’: Unicorn Startups Boast 300X Valuations

By Kate Clark · Apr 20, 2021 6:00am PDT · 3 comments

Orca Security’s March funding round made the two-year-old software startup a unicorn—and gave it an unusual claim to fame. With approximately $4 million in annualized revenue when it briefed investors early this year, the cybersecurity company’s $1.2 billion valuation translated to 300 times that revenue, according to two... Orca Security’s March funding round made the two-year-old software startup a...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

The Briefing: Facebook Goes All In on Audio

By Martin Peers · Apr 19, 2021 5:32pm PDT · 1 comment

It’s doubtful there has been this much excitement about audio since the first radio broadcast. On Sunday Clubhouse confirmed our scoop from Friday about its latest $4 billion valuation fundraising. And today Facebook unveiled its new line of audio products, some of which offer Clubhouse-like features while others allow people to record... It’s doubtful there has been this much excitement about audio since the first radio...

A rendering of a surgeon using a VR headset. Image: Vicarious Surgical

TI Reality Check: A Questionable Quest Move

By Mathew Olson · Apr 19, 2021 12:01pm PDT

A rendering of a surgeon using a VR headset. Image: Vicarious Surgical

TI Reality Check: A Questionable Quest Move

By Mathew Olson · Apr 19, 2021 12:01pm PDT

Last week, Facebook announced the first exclusive game for the Oculus Quest 2. Later this year, Oculus will co-publish a VR version of Resident Evil 4. While many fans are excited to experience the game’s story in virtual reality, the decision to keep the game off the original Quest headset is going to rankle some users. While the Quest 2... Last week, Facebook announced the first exclusive game for the Oculus Quest 2. Later this year,...

February's Super Bowl. Photo by AP

Sports Site Action Network Looks for Buyer as Online Betting Grows

By Jessica Toonkel · Apr 19, 2021 9:01am PDT

Several sports media firms are looking for buyers or investors, hoping to cash in on the expansion of online sports betting across the U.S. The Chernin Group’s The Action Network, a news and data source for sports betting, has tapped boutique bank Moelis & Co. to explore a sale, according to people familiar with the situation. The... Several sports media firms are looking for buyers or investors, hoping to cash in on the...

Startups Are Poaching Facebook, Google Execs

By Sylvia Varnham O'Regan · Apr 19, 2021 6:01am PDT · 2 comments

A few days before DoorDash went public last December, the food-delivery company hired a new vice president of enterprise sales and business development, Shanna Prevé. A 16-year veteran of Google, Prevé weighed the decision for six months before making the jump. Yet she’s far from unusual. Prevé is part of a growing... A few days before DoorDash went public last December, the food-delivery company hired a new vice...

Why I Love and Fear Amazon Basics

By Jessica E. Lessin · Apr 17, 2021 7:47am PDT · 5 comments

Jeff Bezos this week wrote his final shareholder letter as he steps aside as CEO of Amazon. It is remarkable what he and the company have accomplished. I vaguely remember buying my first book on Amazon. Today, I buy…well, that brings me to the point of this week’s column. I recently realized that my kids’ whiteboard markers... Jeff Bezos this week wrote his final shareholder letter as he steps aside as CEO of Amazon. It is...

Dion Foxworth, co-host of the “Stock Market Moves” show, uses the Clubhouse app. Photo:Bloomberg

Andreessen Horowitz Values Clubhouse at $4 Billion With DST, Tiger

By Alex Heath · Apr 16, 2021 6:20pm PDT · 6 comments

Dion Foxworth, co-host of the “Stock Market Moves” show, uses the Clubhouse app. Photo:Bloomberg

Andreessen Horowitz Values Clubhouse at $4 Billion With DST, Tiger

By Alex Heath · Apr 16, 2021 6:20pm PDT · 6 comments

Andreessen Horowitz is valuing the social media app Clubhouse at $4 billion in a round of financing with new investors DST Global and Tiger Global Management, according to a person familiar with the matter. The round triples Clubhouse’s valuation from January, in a deal Andreessen Horowitz also led, and comes as rivals Twitter and Spotify... Andreessen Horowitz is valuing the social media app Clubhouse at $4 billion in a round of...