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

Alphabet CEO Larry Page. Photo by Bloomberg.

Inside the Problem with Alphabet

By Amir Efrati and Jessica E. Lessin · Nov 22, 2015 12:16pm PST

Alphabet CEO Larry Page was in recent discussions to hire Carl Bass, CEO of Autodesk, to lead Andy Rubin’s former robotics unit, say people briefed on the discussions. The appointment would have ended an almost year-long search for a leader to wrangle Alphabet’s messy group of robotics startups.But the discussions fell through for a... Alphabet CEO Larry Page was in recent discussions to hire Carl Bass, CEO of Autodesk, to lead...

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Nov 21, 2015 8:00am PST

Good morning! You may be looking forward to a quiet Thanksgiving week, after the deluge of tech news in recent days. And we’re not just thinking of the Tinder CEO’s headline-making interview. The ups and downs of the Square and Match IPOs were enough. Good morning! You may be looking forward to a quiet Thanksgiving week, after the deluge of...

The Information's 411

The Information’s 411 — The Pop

By Tom Dotan · Nov 20, 2015 3:38pm PST

Depending on whom you ask, Square’s IPO earlier this week was either a sign of investment banking ineptitude or savvy. In dropping the price below the expected offering range, only to see the stock jump on the first day of trading, the banks behind the deal either misjudged demand or cleverly priced the offering to ensure a first day pop... Depending on whom you ask, Square’s IPO earlier this week was either a sign of investment...

Rent The Runway CEO Jennifer Hyman. Photo by Bloomberg.

The Problem with Reporting About Startups

By Jessica E. Lessin · Nov 20, 2015 7:57am PST · 4 comments

Rent The Runway CEO Jennifer Hyman. Photo by Bloomberg.

The Problem with Reporting About Startups

By Jessica E. Lessin · Nov 20, 2015 7:57am PST · 4 comments

Startup cultures make easy media targets. They’re messy and not often well understood—and lately, there’s been a lot of misleading reporting around them.On Twitter this week, I picked on Fortune a bit for its look at Rent the Runway. The piece lead with the revelation that the fashion startup’s high executive turnover has... Startup cultures make easy media targets. They’re messy and not often well...

Square's opening trading day on the New York Stock Exchange. Photo by AP.

VC Winnings on Square’s First Trading Day

By Alfred Lee · Nov 19, 2015 2:00pm PST

Square’s pre-IPO investors scored paper returns after the first day of trading, but some are doing better than others.The biggest winner was Khosla Ventures, whose $30 million stake across three rounds was worth $660 million after closing, filings say. Sequoia’s $15 million Series B-2 investment was worth $206 million, while Kleiner... Square’s pre-IPO investors scored paper returns after the first day of trading, but some...

Square CEO Jack Dorsey at the New York Stock Exchange for Square's opening day on the stockmarket. Photo by Bloomberg.

This Week in Private Market Scuttlebutt

By Jessica E. Lessin · Nov 19, 2015 12:56pm PST

It’s been a big week for private tech. Those Square employees on pins and needles last night are breathing a bit easier. And questions about the state of the late-stage investing, the higher bar for A rounds, and LP appetite are running rampant. I had a bunch of meetings with investors and startup founders this week and pulled together... It’s been a big week for private tech. Those Square employees on pins and needles last...

Square board member Ruth Simmons. Photo by Bloomberg.

Square’s Price Pop Good News for Employees

By Alfred Lee · Nov 19, 2015 8:35am PST

Square employees are breathing easier–for now–after the payment company’s IPO pop this morning. Square’s IPO pricing at $9 a share Wednesday night put 37% of all options underwater, according to filings. But with the stock trading above $13 by late morning eastern time, about half of those underwater options were back in... Square employees are breathing easier–for now–after the payment company’s IPO...

Couchbase CEO Bob Wiederhold. Photo by Couchbase.

The Mobile Database Race Heats Up

By Steve Nellis · Nov 19, 2015 7:02am PST · 1 comment

Couchbase CEO Bob Wiederhold. Photo by Couchbase.

The Mobile Database Race Heats Up

By Steve Nellis · Nov 19, 2015 7:02am PST · 1 comment

If you want to book a flight on Irish airline Ryanair using its mobile app, it now takes a lot less time. The reason: The old version of the app had to ping a server for straightforward information like seat maps or flight schedules, bogging searches down if the connection was slow.The new version of the app runs faster by storing any... If you want to book a flight on Irish airline Ryanair using its mobile app, it now takes a lot...

Square CEO Jack Dorsey. Photo by AP.

Square’s Big Value Gap is in Options

By Alfred Lee · Nov 18, 2015 7:03am PST

When payments company Square prices its initial public offering late Wednesday, there’s sure to be plenty of analysis comparing its new public market valuation with its most recent private valuation of $6 billion. If its preliminary IPO price range is any guide, Square is expected to be worth only about $3.9 billion when it starts trading.... When payments company Square prices its initial public offering late Wednesday, there’s...

Traders on the floor of the NYSE on the day Fitbit went public. Photo by Bloomberg.

Fitbit’s Stock Slump a Lesson for Square

By Alfred Lee · Nov 18, 2015 7:02am PST

When Square starts trading on the public market later this week, how the stock fares will get an enormous amount of attention as a sign of public investors’ attitudes to tech startups. But for investors, founders and employees, it may be more meaningful to think about the share prices at which they can cash out.And that’s not for at... When Square starts trading on the public market later this week, how the stock fares will get an...

Art by Tom Dotan. Photos by Bloomberg. Data by Nielsen.

Tech Executives Make Lousy Guests

By Tom Dotan · Nov 17, 2015 7:01am PST · 3 comments

Tech companies like Apple, Snapchat and Netflix may be household names across America, but that doesn’t translate to interest in their top executives—at least when they’re late night talk show guests.Half a dozen top-tier tech executives have appeared on CBS’ new “Late Show with Stephen Colbert” since it... Tech companies like Apple, Snapchat and Netflix may be household names across America, but that...

Photo by Flickr/Sancho McCann

S’More Is Less, Tech Execs Say

By Tom Dotan · Nov 16, 2015 3:31pm PST

Photo by Flickr/Sancho McCann

S’More Is Less, Tech Execs Say

By Tom Dotan · Nov 16, 2015 3:31pm PST

Fast Company’s revelation on Monday that Mark Zuckerberg is able to toast a perfect marshmallow while making s‘mores prompted some reaction from fellow tech rivals, as imagined by Tom Dotan.Jack Dorsey: The important thing to recognize here is that s'mores are fundamentally a piece of content. I like to consider myself less a... Fast Company’s revelation on Monday that Mark Zuckerberg is able to toast a perfect...

Tony Fadell. Photo by Bloomberg

Google Glass Successor Dumps Some Glass

By Jessica E. Lessin · Nov 16, 2015 11:26am PST

So much for the screen. We’ve learned that Google's revamped Google Glass project, dubbed Project Aura, is working on a wearable with a screen—and at least one without.People tell us there have been three versions of the head-mounted device in development, although the three may be consolidated into two. One version, targeted at... So much for the screen. We’ve learned that Google's revamped Google Glass project,...

Zirx CEO Sean Behr. Photo by Zirx.

On-Demand Dilemma: Profitability Versus Growth

By Amir Efrati · Nov 16, 2015 7:01am PST · 1 comment

When Zirx, an on-demand valet parking app, raised series B financing in April of this year, it was clear to CEO Sean Behr that a series C round “would never happen without positive unit economics.” In other words, the ability to show profit from each parking job.At the time, Zirx was planning to double the number of cities where it... When Zirx, an on-demand valet parking app, raised series B financing in April of this year, it...

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Nov 14, 2015 8:01am PST

Good Morning! More signs this week that the narrative in tech has turned negative. Twitter’s brief post-Dorsey stock rally has dissipated and the stock is back below its IPO price. And then there’s the private tech sector’s much-publicized issues, including new reports of mutual fund writedowns. Good Morning! More signs this week that the narrative in tech has turned negative....

The Information’s 411 - Bedlam

By Tom Dotan · Nov 13, 2015 2:21pm PST

The Information’s 411 - Bedlam

By Tom Dotan · Nov 13, 2015 2:21pm PST

It was a tough week for the public’s view of private tech companies. A spate of stories came out about mutual funds marking down the value of their holdings in big private tech firms like Snapchat and Zenefits. It was the topic of Jessica’s column this week and as she explained on the podcast, there’s a much more nuanced... It was a tough week for the public’s view of private tech companies. A spate of stories...

The Mystery and Myths of Mutual Fund Markdowns

By Jessica E. Lessin · Nov 13, 2015 7:20am PST · 2 comments

“It’s like we went public without even knowing it.”I heard this sentiment from leaders of major private tech companies this week, as mutual funds grabbed headlines for marking down Snapchat, Blue Bottle and other massive private tech companies. All of a sudden these founders, who have been hell-bent on staying out of the public... “It’s like we went public without even knowing it.”I heard this sentiment from...

Microsoft cloud and enterprise group evp Scott Guthrie. Photo by Bloomberg.

Eyeing AWS, Microsoft Hunts for Data Center Space

By Steve Nellis · Nov 12, 2015 7:01am PST

Microsoft is looking to lease a big chunk of data center space to bolster its Azure cloud computing service in Silicon Valley, in an effort to catch up to its biggest rival, Amazon Web Services.Microsoft is in talks with data center companies Digital Realty and Vantage Data Centers to lease more than 10 megawatts of capacity in the San Francisco... Microsoft is looking to lease a big chunk of data center space to bolster its Azure cloud...

Photo by AP.

VCs’ Message: Winter is Coming

By Steve Nellis and Reed Albergotti · Nov 11, 2015 11:51am PST

At Andreessen Horowitz’s annual summit last week, the venture firm invited its portfolio companies to listen to a series of pep talks from the likes of Golden State Warriors player Andre Iguodala. The event also featured a fireside chat between Amazon.com CEO Jeff Bezos and Marc Andreessen.But on the sidelines, not all the chatter was... At Andreessen Horowitz’s annual summit last week, the venture firm invited its portfolio...

Google's director of Android engineering, David Burke. Photo by Bloomberg.

The Case Against a Google Phone

By Amir Efrati · Nov 11, 2015 7:01am PST · 5 comments

Google's director of Android engineering, David Burke. Photo by Bloomberg.

The Case Against a Google Phone

By Amir Efrati · Nov 11, 2015 7:01am PST · 5 comments

Whether to build a phone from scratch and sell it directly to consumers is a matter of debate inside of Google, as we reported on Tuesday. Given the risks of such a move and the low chance of success, it seems a bad idea for Google to pull the trigger.Among the issues: Google could alienate its handset maker partners, like Samsung or Huawei, by... Whether to build a phone from scratch and sell it directly to consumers is a matter of debate...