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

Five times/week

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.

By providing your email, you agree to The Information’s Privacy Policy

Recent Editions

Photo by Bloomberg.

EU Ruling Means More Paperwork for Tech Firms

By Reed Albergotti and Steve Nellis · Oct 8, 2015 7:06am PDT · 1 comment

Startups: Find a good lawyer in Europe. Tech companies doing business there will have to deal with a lot more paperwork to comply with European data privacy rules thanks to a European court ruling on Tuesday. That ruling invalidated the international “Safe Harbor” pact that allowed U.S. tech companies to transfer customer data across... Startups: Find a good lawyer in Europe. Tech companies doing business there will have to deal...

Sam Altman. Photo by Jessica E. Lessin.

Y Combinator Launches Research Non-Profit

By Jessica E. Lessin · Oct 7, 2015 11:15am PDT

Sam Altman’s plan for Y Combinator is entering a new phase. Since taking over in 2014, Mr. Altman has expanded the number and breadth of companies that YC funds. Now he’s launching a non-profit YC research arm that he’s financing with $10 million of his own money. Waiting in the wings: a still unannounced venture fund for... Sam Altman’s plan for Y Combinator is entering a new phase. Since taking over in 2014, Mr....

Oscar co-founder Joshua Kushner. Photo by AP.

What Oscar Is Up Against

By Alfred Lee · Oct 7, 2015 7:06am PDT · 1 comment

Of all the industries for a startup to tackle, health insurance may be one of the toughest. Cumbersome state and federal regulations, powerful suppliers such as hospitals and a market dominated by big corporate customers combine to favor big incumbents. Oscar Health Insurance, a venture-backed East Coast startup launching in California next... Of all the industries for a startup to tackle, health insurance may be one of the toughest....

Art by Myk Klemme

Introducing The Information’s Future List

By Peter Schulz · Oct 6, 2015 6:51am PDT · 2 comments

Art by Myk Klemme

Introducing The Information’s Future List

By Peter Schulz · Oct 6, 2015 6:51am PDT · 2 comments

Less than one percent of senior VCs involved in investment decisions are Black—four of 552 people. And only 1.3% are Hispanic. These were among the findings of a three-month study The Information conducted with Social Capital, a VC firm. We had two missions. First, we wanted to contribute to the discussion around the poor state of... Less than one percent of senior VCs involved in investment decisions are Black—four of 552...

Subscriber Op-Ed

Bros Funding Bros: What’s Wrong with Venture Capital

By Chamath Palihapitiya · Oct 6, 2015 6:51am PDT · 12 comments

There is a laggard in our backyard that is slowing down progress. Fortunately, Silicon Valley trades on entrepreneurs disrupting this old guard.The venture capital industry is stuck in yesteryear—the same people, living the same lives and having the same experiences making largely the same decisions. This sameness may have been a strength,... There is a laggard in our backyard that is slowing down progress. Fortunately, Silicon Valley...

Microsoft's VP for Windows and Devices Group, Terry Myerson. Photo by Bloomberg.

In the Business Tablet War, It’s Not the Specs that Count

By Steve Nellis · Oct 5, 2015 3:33pm PDT

Microsoft is expected to unveil its new flagship tablet, the Surface Pro 4, on Tuesday in New York. It will compete directly against Apple’s recently announced iPad Pro. Both devices are firmly targeted at business users with the idea being that enterprises will ditch laptops in favor of tablets for their employees.Plenty will be written... Microsoft is expected to unveil its new flagship tablet, the Surface Pro 4, on Tuesday in New...

Art by Matt Vascellaro.

The Big Interview

How Motorola Plans to Survive

By Amir Efrati · Oct 5, 2015 7:06am PDT

The Great Android Smartphone War is taking its toll on everyone. Rick Osterloh, the chief of Motorola Mobility, now part of Lenovo, hopes to carve out a niche in part by focusing on hardware advancements that he says the market badly needs.“The form factor hasn’t changed in a while so that has got to change,” he says. Phones,... The Great Android Smartphone War is taking its toll on everyone. Rick Osterloh, the chief of...

The Information You Missed

By The Information Staff · Oct 3, 2015 8:06am PDT

The Information You Missed

By The Information Staff · Oct 3, 2015 8:06am PDT

Good morning!For those of you on the East Coast, we hope you’re staying dry. If you’re in San Francisco, see you at our Subscriber Summit Thursday! This week’s most popular stories were about people: Snapchat’s Imran Khan and Twitter’s Jack Dorsey. Good morning!For those of you on the East Coast, we hope you’re staying dry. If...

The Information's 411

The Information’s 411 — The Coronation

By Tom Dotan · Oct 2, 2015 11:59am PDT

On the eve of Jack Dorsey’s official coronation as permanent CEO of Twitter, we have two questions: how did we get here, and what does it mean now?That’s what Jessica and Tom mull over in this week’s podcast. But at least there’s no more question about who’s in charge. Jack is going to be anointed permanent CEO just... On the eve of Jack Dorsey’s official coronation as permanent CEO of Twitter, we have two...

Axel Springer CEO Mathias Döpfner. Photo by Bloomberg.

The New Dumb Money in Digital Media

By Jessica E. Lessin · Oct 2, 2015 9:53am PDT

You know you are in for a treat when someone who just paid a boatload of cash for an asset tells you not to judge the price by “traditional metrics.” That’s what happened this week when Axel Springer paid $343 million for most of Business Insider, at a roughly 9x revenue multiple. Axel Springer Chief Executive Mathias... You know you are in for a treat when someone who just paid a boatload of cash for an asset tells...

Dropbox CEO Drew Houston. Photo by Bloomberg.

Mutual Funds Mark Down Dropbox Holdings

By Alfred Lee and Steve Nellis · Oct 2, 2015 7:06am PDT · 1 comment

Two of Dropbox’s largest mutual fund investors have marked down the value of their holdings in the company by a little over 20% in recent months, the funds disclosed in recent days.While the reasons for the markdowns aren’t clear, they could reflect the funds’ faltering confidence in the company, valued at $10 billion at its... Two of Dropbox’s largest mutual fund investors have marked down the value of their holdings...

Apple's iPhone. Photo by Bloomberg.

The Revolution Will Be Streamed: The Era of the Streaming OS

By James Higa · Oct 1, 2015 11:19am PDT · 1 comment

Apple's iPhone. Photo by Bloomberg.

Subscriber Op-Ed

The Revolution Will Be Streamed: The Era of the Streaming OS

By James Higa · Oct 1, 2015 11:19am PDT · 1 comment

During my nearly 30 years at Apple, I witnessed the birth of the personal computer revolution in the Macintosh group, saw the development of iOS and watched the transformation from the Apple II days to UNIX with NeXT to Macbooks and the iPhone and iPad. In short, I’ve seen the full evolution of the operating system—starting from when... During my nearly 30 years at Apple, I witnessed the birth of the personal computer revolution in...

Source: SEC Filings

Stock Comp Expense Rising for Tech Firms

By Peter Schulz and Martin Peers · Oct 1, 2015 7:06am PDT · 9 comments

It’s no secret major tech companies have been hiring lots of people. What hasn’t received as much attention is how that hiring has been driving up stock compensation expenses, hurting companies’ bottom lines.As the accompanying chart shows, stock comp expense as a percentage of revenue has been rising at Apple, Google and... It’s no secret major tech companies have been hiring lots of people. What hasn’t...

Phillip DeFranco. Photo by Flickr/Gage Skidmore.

Why Comcast’s Watchable Isn’t

By Tom Dotan · Sep 30, 2015 1:22pm PDT

Were you among the people who checked out Comcast’s new video streaming app, Watchable, when it was released yesterday? Perhaps you looked at Buzzfeed’s channel and saw videos like, “Things You Did in the 90s that Would Be Weird Today.”If that video looked familiar, it may be because the exact video is also on... Were you among the people who checked out Comcast’s new video streaming app, Watchable,...

Announcing the Summit Roundtables

By The Information Staff · Sep 30, 2015 10:17am PDT

We're so excited to see everyone next week at our sold-out inauguaral Subscriber Summit. An important part of Summit is our roundtables: a chance for you to visit some nearby startups and investments firms to hear straight from our subscribers about important topics. Our team will also be on-hand to answer your questions. If you're... We're so excited to see everyone next week at our sold-out inauguaral Subscriber Summit. An...

Art by Matt Vascellaro.

Okta Goes Head to Head with Microsoft

By Steve Nellis · Sep 30, 2015 7:06am PDT

Art by Matt Vascellaro.

The Big Interview

Okta Goes Head to Head with Microsoft

By Steve Nellis · Sep 30, 2015 7:06am PDT

You might think that with heavyweights like Microsoft, Salesforce and VMware gunning for its business, a startup like Okta would be playing defense. Instead CEO Todd McKinnon says his main concern is maintaining the IT security company’s ample gross margins and spending discipline.Okta (pronounced “ahk-tuh”) helps big companies... You might think that with heavyweights like Microsoft, Salesforce and VMware gunning for its...

Jack Dorsey. Photo by Bloomberg.

Inside Jack Dorsey’s Vision for Twitter

By Jessica E. Lessin and Amir Efrati · Sep 29, 2015 11:25am PDT

With all the speculation around whether Jack Dorsey will drop “interim” from his title at Twitter, there’s been surprisingly little reported about what he would do if he returned to permanently lead and turn around the company he co-founded. Would he focus on reaching people who don’t actively Tweet? Double down on the... With all the speculation around whether Jack Dorsey will drop “interim” from his...

Imran Khan. Photo by Getty Images.

Snapchat’s Adult In the Room

By Tom Dotan · Sep 29, 2015 7:06am PDT · 1 comment

When Snapchat’s chief strategy officer Imran Khan takes meetings on Madison Avenue, ad executives are given a piece of advice: Pretend Evan is in the room.For the last few months, chief strategy officer Imran Khan has served as CEO Evan Spiegel’s proxy on all things ads. Marketers give him feedback on Snapchat's advertising... When Snapchat’s chief strategy officer Imran Khan takes meetings on Madison Avenue, ad...

Micromax co-founder Rahul Sharma, who runs the company's "Yu" subsidiary. Photo by Bloomberg.

India’s Micromax May Jump Into U.S. Smartphone Market

By Amir Efrati · Sep 28, 2015 4:06pm PDT · 1 comment

Shifts in the way wireless carriers sell smartphones are luring an array of new lower-priced phone makers into the U.S., with India’s Micromax Infomatics expected to be one of the next brands to jump into the market, according to people briefed on the plan.Micromax, a 15-year-old privately-held electronics maker in India that started... Shifts in the way wireless carriers sell smartphones are luring an array of new lower-priced...

Graphic by Sam Lessin.

The Case Against Product-Market Fit

By Sam Lessin · Sep 28, 2015 7:06am PDT · 6 comments

Graphic by Sam Lessin.

Modest Proposals

The Case Against Product-Market Fit

By Sam Lessin · Sep 28, 2015 7:06am PDT · 6 comments

If you spend more than a hot second discussing startups, you have undoubtedly heard the term "product-market fit," a reference to whether a product is clicking with a certain customer base. It’s typically used in two ways. One is negative: When teams say, “We haven’t yet found product-market fit,” they almost... If you spend more than a hot second discussing startups, you have undoubtedly heard the term...