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Biggest Startup Markdowns: Magic Leap, WeWork, Airbnb

By Cory Weinberg · Sept. 2, 2020 7:02 AM PDT

Investors in Magic Leap have marked down their stakes in the troubled augmented reality startup by 93%, on average, between the start of the year and the end of June, previously unreported figures show. The dizzying drop makes Magic Leap the private tech firm in which investor sentiment has soured the most in 2020, surpassing hard-hit firms... Investors in Magic Leap have marked down their stakes in the troubled augmented reality startup...

Despite Flurry of Activity, Software IPOs to Fall Short of 2019 Numbers

By Ross Matican · Sept. 1, 2020 7:01 AM PDT

The last week has seen a flurry of subscription software companies filing to go public in the last few months of the year, hoping to cash in on the booming stock market and rich valuations accorded the software sector. But thanks to the drought in initial public offerings, brought on by the pandemic, this year’s total of software IPOs is... The last week has seen a flurry of subscription software companies filing to go public in the...

Amazon’s Massive Spike in Delivery Stations Poses Threat to USPS

By Paris Martineau · Aug. 24, 2020 12:10 PM PDT · 2 comments

Amazon has carried out an unprecedented physical expansion during the coronavirus pandemic as homebound consumers have sought to have supplies delivered to their doorstep. While its hundreds of vast suburban fulfillment centers still make up the largest chunk of its physical footprint in the U.S., openings of smaller facilities—delivery... Amazon has carried out an unprecedented physical expansion during the coronavirus pandemic as...

Roku, Amazon Devices Risk Losing Grip on Streaming TV

By Jessica Toonkel · Aug. 5, 2020 12:45 PM PDT · 2 comments

media/telecom entertainment

Roku, Amazon Devices Risk Losing Grip on Streaming TV

By Jessica Toonkel · Aug. 5, 2020 12:45 PM PDT · 2 comments

In recent weeks, the absence of two high-profile new streaming services—WarnerMedia’s HBO Max and NBCUniversal’s Peacock—from streaming devices made by Roku and Amazon has shown how important the two tech companies have become as media gatekeepers. That clout might not last, though.Streaming-video devices are losing... In recent weeks, the absence of two high-profile new streaming services—WarnerMedia’s...

Covid Slowed Startup Recruiting, but Not for Long

By Cory Weinberg · July 21, 2020 10:19 AM PDT

As the coronavirus outbreak took hold in the U.S. early this spring, prompting layoffs at startups across Silicon Valley, engineers and product designers at big tech companies appeared to lose interest in making the leap to smaller firms. The presumed job security offered by Apple, Facebook, Amazon suddenly seemed more appealing, new data... As the coronavirus outbreak took hold in the U.S. early this spring, prompting layoffs at...

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China’s Pinduoduo Is Nipping at Alibaba’s Heels

By Juro Osawa and Yunan Zhang · July 9, 2020 7:01 AM PDT

For well over a decade, Alibaba has been China’s top destination for online shopping. But the rapid growth of its leading competitor, Pinduoduo, suggests its hold on the market isn’t guaranteed.Pinduoduo’s monthly active users climbed 40% in May from a year ago to 471 million, narrowing the gap with Alibaba’s Taobao app,... For well over a decade, Alibaba has been China’s top destination for online shopping. But...

startups covid-19

Unicorn Deals Drive Valuations to Record Highs

By Kate Clark · June 25, 2020 7:01 AM PDT · 1 comment

When coronavirus fears sent stocks tumbling this spring, venture capitalists expected startup valuations to follow. Instead, late-stage valuations for U.S. startups have risen in the first half of 2020 as the stock market, shaking off fears of a pandemic-caused recession, rebounded.The median valuation for Series C or later-stage... When coronavirus fears sent stocks tumbling this spring, venture capitalists expected startup...

Just 2.7% of Top Roles in Big Tech Held by Black Executives

By Cory Weinberg · June 19, 2020 12:39 PM PDT

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Just 2.7% of Top Roles in Big Tech Held by Black Executives

By Cory Weinberg · June 19, 2020 12:39 PM PDT

Shavone Charles got her start in the tech industry as an intern at Google in 2011, before moving to full-time media and partnerships jobs at Twitter and, later, Instagram. She has watched those businesses succeed in part because of their popularity with African Americans. But tech companies have few black executives. Charles, who is black, has... Shavone Charles got her start in the tech industry as an intern at Google in 2011, before moving...

covid-19 e-commerce

Instacart Blows Past Walmart in Online Grocery Business

By Amir Efrati · June 9, 2020 7:00 AM PDT · 2 comments

The coronavirus pandemic gave a major boost to online grocery orders, as many people sheltered in their homes. But one company—Instacart—benefited a lot more in the business than its bigger rival, Walmart, as new data demonstrates.Walmart saw its weekly share of the online grocery business relative to other major players in the... The coronavirus pandemic gave a major boost to online grocery orders, as many people sheltered in...

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Tech Workers Could Face Steep Pay Cuts for Leaving Bay Area

By Cory Weinberg · June 1, 2020 7:01 AM PDT · 5 comments

Last year, Michael Snow joined GitLab, an open-source collaboration software firm that has long allowed its employees to work remotely from anywhere they want. After several months of working while traveling the world, Snow eventually settled in San Francisco. The decision surprises people, who ask Snow why he didn’t choose a much cheaper... Last year, Michael Snow joined GitLab, an open-source collaboration software firm that has long...

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Where Are Most Tech Layoffs? Not Silicon Valley

By Cory Weinberg · May 26, 2020 11:02 AM PDT

Some of San Francisco’s most well-known tech firms have cut deep into their staffs in recent months. But much of the pain is being felt outside the Bay Area. An analysis of public filings from 20 tech firms based in the region, including Uber, Lyft and Airbnb, show that three-quarters of employees laid off worked outside the region,... Some of San Francisco’s most well-known tech firms have cut deep into their staffs in...

Boom in Home Electronics Sales Shows Signs of Peaking

By Nick Bastone · April 21, 2020 10:29 AM PDT

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Boom in Home Electronics Sales Shows Signs of Peaking

By Nick Bastone · April 21, 2020 10:29 AM PDT

When cities across the U.S. shut down due to the coronavirus, consumers flocked online to beef up their home office and entertainment setups. The surge in spending for consumer electronics has extended into April, with only a slight cooling in growth, according to an analysis of email receipts from online transactions provided to The... When cities across the U.S. shut down due to the coronavirus, consumers flocked online to beef up...

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Why Now Could Be Apple’s Moment in TV

By Martin Peers, Tom Dotan and Jessica Toonkel · April 13, 2020 1:01 PM PDT

This could be Apple TV Plus’s moment.If Apple wanted to get a jump on its rivals in video streaming, it would use some of its $200 billion in cash reserves and buy up as much available programming as it could—including any unreleased movies Hollywood studios might be inclined to sell. None of its rivals, with the exception of... This could be Apple TV Plus’s moment.If Apple wanted to get a jump on its rivals in video...

startups venture capital

VCs Could Exhaust ‘Dry Powder’ in a Year Unless They Slow Investing

By Kate Clark · April 9, 2020 7:00 AM PDT · 3 comments

Venture capital investors are flush with cash, but they may want to slow down their spending.U.S. venture firms have roughly $150 billion of funds available to invest in cash-starved startups, a little more than half of the $279 billion they have raised since 2014. That estimate of the VC industry’s “dry powder”—business... Venture capital investors are flush with cash, but they may want to slow down their spending.U.S....

Chart by Jesse Howe

Cash-Rich Tech Giants Could Provide Alternative to Federal Loans

By Nick Bastone · April 7, 2020 11:47 AM PDT · 2 comments

The Small Business Administration has a $349 billion emergency fund to provide some relief to small businesses across the country hurt by the coronavirus. But a possible alternative source of funding for cash-strapped tech startups could be the tech giants, which between them have much more cash than the SBA.Apple, Alphabet, Amazon, Facebook and... The Small Business Administration has a $349 billion emergency fund to provide some relief to...

Airbnb Costs Under Microscope as Travel Shrinks

By Cory Weinberg · March 31, 2020 7:00 AM PDT · 3 comments

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Airbnb Costs Under Microscope as Travel Shrinks

By Cory Weinberg · March 31, 2020 7:00 AM PDT · 3 comments

Airbnb shut down its marketing efforts last week, saving an estimated $800 million annually. But it likely will need to make more-substantial cost reductions across the board as the spread of coronavirus ravages its business. An analysis of Airbnb’s profit statements shows that the company spends much more on fixed costs—such as... Airbnb shut down its marketing efforts last week, saving an estimated $800 million annually. But...

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Amazon’s Retail Power Could Grow During Pandemic

By Priya Anand and Ashley Gold · March 24, 2020 7:02 AM PDT

Amazon’s critics were worried about the company’s growing power in retail before the coronavirus pandemic. It may be even more powerful by the time the crisis is over. There’s a credible argument that the shutdown of many retail stores, along with a general anxiety about going out in public, could end up increasing... Amazon’s critics were worried about the company’s growing power in retail before the...

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Money Pit: Self-Driving Cars’ $16 Billion Cash Burn

By Amir Efrati · Feb. 5, 2020 7:01 AM PST · 12 comments

A group of 30 companies has spent at least $16 billion on developing fully self-driving cars over the past few years—and so far they have little, if any, revenue to show for it. But billions more will likely be needed before the technology is ready for primetime.Just three companies spent half of that money—Alphabet’s Waymo,... A group of 30 companies has spent at least $16 billion on developing fully self-driving cars over...

startups venture capital

Venture Capital’s New Normal: Outsized Checks and Unsolicited Offers

By Kate Clark · Feb. 4, 2020 10:01 AM PST · 2 comments

Last year, Papaya Global, a financial services business based in New York City and Tel Aviv, pitched investors on its hopes of raising $15 million to expand the business, according to a person familiar with the situation. But after talks with venture capital firm Insight Partners, Papaya ended up raising a $45 million Series A round from a group... Last year, Papaya Global, a financial services business based in New York City and Tel Aviv,...

Facebook CEO Mark Zuckerberg testifying before Congress last October. Photo by Bloomberg

Facebook Is Already Paying a Regulatory Tax—in Its Stock Price

By Martin Peers · Jan. 27, 2020 10:00 AM PST · 1 comment

Facebook CEO Mark Zuckerberg testifying before Congress last October. Photo by Bloomberg

Facebook Is Already Paying a Regulatory Tax—in Its Stock Price

By Martin Peers · Jan. 27, 2020 10:00 AM PST · 1 comment

Washington’s antitrust investigations into big tech are probably years away from finishing. But already Facebook, at least, appears to be getting hit by a “regulatory tax” of at least $160 billion—on its stock price.The social networking giant is trading at the lowest valuation, relative to its earnings growth rate, of... Washington’s antitrust investigations into big tech are probably years away from finishing....

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