The Information

Elon Musk. Photo by Bloomberg.

Musk Will Have Absolute Control Over Twitter, Documents Show

By Kate Clark, Becky Peterson and Martin Peers · Oct 14, 2022 3:29pm PDT · 5 comments

Elon Musk may be relying on outside investors to help finance his $44 billion purchase of Twitter. But that doesn’t mean he’s giving those investors a say in how the company is run. A shareholders’ agreement prepared by Musk’s lawyers for equity investors shows that Musk will retain absolute authority over key decisions.... Elon Musk may be relying on outside investors to help finance his $44 billion purchase of...

Instacart Cuts Internal Valuation Third Time, to $13 Billion

By Erin Woo · Oct 14, 2022 10:58am PDT · 5 comments

Instacart, the instant delivery company gearing up to go public, has slashed its internal valuation to about $13 billion, according to two people familiar with the matter. It’s the third time the San Francisco startup has reduced its internal valuation this year, in a period when public delivery stocks have continued to shed value. The new... Instacart, the instant delivery company gearing up to go public, has slashed its internal...

Art by Mike Sullivan

Apple’s Mixed Reality Headset to Offer Iris Scanning for Payments, Logging In

By Wayne Ma · Oct 14, 2022 6:00am PDT

By the time Apple introduces its much-anticipated mixed reality headset—planned for sometime next year—Meta Platforms will have had the advantage of selling products in the category to the public for almost seven years. But Apple’s device will also have a few technological tricks up its sleeve that even the latest Meta headset... By the time Apple introduces its much-anticipated mixed reality headset—planned for...

Coatue partner Sri Viswanath. Photo: YouTube.

Coatue, Under Pressure from Late-Stage Bets, Seeks $500 Million for Early-Stage Deals

By Erin Woo · Oct 13, 2022 6:00am PDT · 1 comment

Coatue partner Sri Viswanath. Photo: YouTube.

Coatue, Under Pressure from Late-Stage Bets, Seeks $500 Million for Early-Stage Deals

By Erin Woo · Oct 13, 2022 6:00am PDT · 1 comment

Coatue Management is raising its third fund to invest in early-stage startups, according to two people with knowledge of the firm’s plans. The fundraising efforts come as the firm’s investments in later-stage startups such as delivery firm Gorillas face steep valuation cuts. The New York–based investment firm, one of the... Coatue Management is raising its third fund to invest in early-stage startups, according to two...

Microsoft CEO Satya Nadella. Photo by Bloomberg

Microsoft Forms New Team to Target ‘Industrial Metaverse’

By Kevin McLaughlin · Oct 12, 2022 5:00am PDT · 2 comments

Microsoft’s plan to use the metaverse to spice up decidedly unglamorous applications in factories and other industrial settings is beginning to take shape. Last week, Microsoft internally announced the formation of a new team, Industrial Metaverse Core, that plans to help customers create immersive new software interfaces for operating the... Microsoft’s plan to use the metaverse to spice up decidedly unglamorous applications in...

Illustration by Jesus Escudero.

Startups Avoid Valuation Cuts With ‘Up Rounds in Name Only’

By Maria Heeter and Erin Woo · Oct 11, 2022 12:07pm PDT · 5 comments

When installment lender Klarna revealed in July it had raised $800 million at a valuation 85% lower than its previous funding round, the deal was seen as the first in a likely wave of dramatic down rounds. Instead, startups including fitness equipment maker Tonal, delivery app Jokr and investing app Acorns are still managing to raise money at... When installment lender Klarna revealed in July it had raised $800 million at a valuation 85%...

Photo of Chris Dixon by Getty Images. Art by Mike Sullivan

Chris Dixon Keeps the Crypto Faith

By Cory Weinberg · Oct 11, 2022 6:00am PDT

This summer, venture capitalist Chris Dixon settled down for a dinner conversation about politics, startup investing and the economy with business and entertainment executive Michael Ovitz at Ovitz’s 28,000-square-foot Beverly Hills mansion. At one point, the conversation shifted to a topic Dixon knows intimately: cryptocurrency. ... This summer, venture capitalist Chris Dixon settled down for a dinner conversation about...

Roelof Botha, partner at Sequoia Capital, and Zhao Changpeng, founder of Binance. Photos by Getty Images and Bloomberg.

Sequoia Capital, Binance Stand By Equity Funding for Musk’s Twitter Takeover

By Erin Woo, Kate Clark and Aidan Ryan · Oct 10, 2022 12:28pm PDT

Roelof Botha, partner at Sequoia Capital, and Zhao Changpeng, founder of Binance. Photos by Getty Images and Bloomberg.

Sequoia Capital, Binance Stand By Equity Funding for Musk’s Twitter Takeover

By Erin Woo, Kate Clark and Aidan Ryan · Oct 10, 2022 12:28pm PDT

At least two major equity investors backing Elon Musk’s deal to buy Twitter plan to go ahead with their funding, as the billionaire moves toward closing the deal after dramatically reversing his position on it. Sequoia Capital, which has committed $800 million to the deal, plans to keep its funding in place, according to a person... At least two major equity investors backing Elon Musk’s deal to buy Twitter plan to go...

Jack Ma in Paris in 2019. Photo by Getty Images

Jack Ma’s Investment Firm Struggles to Raise Money in China

By Juro Osawa · Oct 10, 2022 6:00am PDT

Jack Ma, China’s most iconic entrepreneur, whose swift fall from grace with government authorities captivated the country and broader business world, has a new problem: Chinese investors are afraid to give him money. Yunfeng Capital, a private equity firm Ma co-founded in 2010, is having difficulty raising capital from domestic investors... Jack Ma, China’s most iconic entrepreneur, whose swift fall from grace with government...

Philippe Laffont. Photo by Bloomberg.

Two More Coatue Partners Have Departed

By Kate Clark · Oct 7, 2022 2:26pm PDT · 2 comments

Coatue Management general partners Luca Schmid and Sebastian Duesterhoeft, who helped lead its private tech investments, have left the New York-based firm, according to a person familiar with the matter. The partners are the latest senior exits from crossover funds, the firms with Wall Street roots that made big bets on startups during the past... Coatue Management general partners Luca Schmid and Sebastian Duesterhoeft, who helped lead its...

Photo of Mark Zuckerberg by Bloomberg. Art by Mike Sullivan

Meta’s Abandoned Shopping Cart: How Mark Zuckerberg’s Commerce Plans Went Wrong

By Sylvia Varnham O'Regan · Oct 5, 2022 6:00am PDT · 8 comments

It was 2020 and Mark Zuckerberg’s focus on his latest project began to intensify. Online shopping was booming, and the CEO of Facebook—now called Meta Platforms—wanted to transform Facebook and Instagram into shopping destinations. Zuckerberg threw himself into the effort, hosting daily meetings and taking a hands-on approach... It was 2020 and Mark Zuckerberg’s focus on his latest project began to intensify. Online...

Photo via Tiger Global Management.

Tiger Partner John Curtius is Leaving to Launch His Own Fund

By Kate Clark · Oct 3, 2022 3:54pm PDT · 4 comments

Photo via Tiger Global Management.

Tiger Partner John Curtius is Leaving to Launch His Own Fund

By Kate Clark · Oct 3, 2022 3:54pm PDT · 4 comments

Tiger Global Management partner John Curtius plans to leave the firm next year to launch his own fund called Cedar Investment Management, according to a person with direct knowledge of the matter. Curtius, one of Tiger’s most active startup investors, shook up Silicon Valley by backing more than 200 private companies since joining Tiger in... Tiger Global Management partner John Curtius plans to leave the firm next year to launch his own...

Matt Mazzeo. Image via YouTube

Coatue General Partner Matt Mazzeo Departs to Launch Fund

By Kate Clark and Erin Woo · Oct 3, 2022 12:36pm PDT · 1 comment

Matt Mazzeo, a general partner at New York-based investment firm Coatue Management since 2018, has left to start his own investment fund, according to two people with direct knowledge of the matter. Mazzeo’s deals at Coatue, one of the world’s biggest private tech investors, included augmented reality developer Niantic and OpenSea, a... Matt Mazzeo, a general partner at New York-based investment firm Coatue Management since 2018,...

Photo by Getty Images.

Tesla Makes Cash, Not Stock, the Default for Many Employees’ Compensation Awards

By Mark Matousek and Becky Peterson · Sep 30, 2022 7:28am PDT · 5 comments

Tesla will start giving its employees cash grants as their default incentive to stick with the company, rather than the equity awards it has traditionally handed out, according to internal documents viewed by The Information. The electric car maker’s employees will still be able to receive stock awards instead of cash grants if they prefer... Tesla will start giving its employees cash grants as their default incentive to stick with the...

Photo by Bloomberg. Art by Mike Sullivan

Billionaire ByteDance Founder Zhang Yiming Now Living Far From Home

By Juro Osawa · Sep 29, 2022 6:00am PDT

As the future of the world’s most valuable startup—TikTok’s Chinese owner, ByteDance—remains uncertain, its founder Zhang Yiming, one of the richest people in the world, is staying out of the limelight. Zhang, 39, has been spending much of this year overseas, using Singapore as a primary base, according to people with... As the future of the world’s most valuable startup—TikTok’s Chinese owner,...

Locket founder Matt Moss and his girlfriend Ava Thompson, who he says inspired the app. Photo from Locket.

Chasing TikTok: Investor Fever for Rival Photo Apps Ebbs

By Erin Woo · Sep 28, 2022 10:20am PDT · 2 comments

Locket founder Matt Moss and his girlfriend Ava Thompson, who he says inspired the app. Photo from Locket.

Chasing TikTok: Investor Fever for Rival Photo Apps Ebbs

By Erin Woo · Sep 28, 2022 10:20am PDT · 2 comments

Last year, investors competed fiercely to fund the next TikTok. This year, though, they haven’t been willing to pay as much for shares in young apps that might turn into the next social media stars. Take Locket Labs, the seven-person startup behind an app that allows users to share photos directly to their friends’ home screens.... Last year, investors competed fiercely to fund the next TikTok. This year, though, they...

Adena Hefets, co-founder and chief operating officer of Divvy Homes Inc. Photo: Bloomberg

Andreessen-Backed Divvy Homes Lays Off 12% of Staff as Rates Rise

By Cory Weinberg and Kate Clark · Sep 27, 2022 6:16pm PDT · 2 comments

Divvy Homes, a property tech startup backed by Andreessen Horowitz and Tiger Global Management, laid off about 12% of its staff Tuesday. The cuts reflect how younger real estate firms are responding to rising mortgage rates that have battered the home-buying market. The layoffs affected roughly 40 employees at the five-year-old firm. Divvy Homes... Divvy Homes, a property tech startup backed by Andreessen Horowitz and Tiger Global Management,...

Art by Mike Sullivan.

Amazon’s Cross-Selling Team Scores Big With Top AWS Customers

By Kevin McLaughlin and Paris Martineau · Sep 26, 2022 6:00am PDT · 1 comment

Amazon Web Services has a pitch for major customers of its cloud server rentals: Want more Amazon with that? When Peloton last month announced it would start selling its exercise bike and other products on Amazon, the first time it had used an outside retailer, the news appeared significant as a sign of Peloton’s effort to reach a broader... Amazon Web Services has a pitch for major customers of its cloud server rentals: Want more Amazon...

Instacart CEO Fidji Simo. Photo by Bloomberg.

Instacart Cuts Staff, Curbs Hiring in Run-up to IPO

By Mark Matousek and Erin Woo · Sep 24, 2022 3:54pm PDT · 1 comment

Instacart has been letting go of staff, slowing hiring and curbing other expenses as it heads toward a public listing, when the grocery-delivery company will try to convince public investors that it can maintain its growth—and make a profit—as the economy slows. The San Francisco startup over the last two months has fired some of its... Instacart has been letting go of staff, slowing hiring and curbing other expenses as it heads...

Patrick Collison. Photo by Getty Images.

Stripe’s Early Stock Awards Could Spur IPO Plans

By Kate Clark, Mark Matousek and Maria Heeter · Sep 22, 2022 2:00pm PDT · 4 comments

Patrick Collison. Photo by Getty Images.

Stripe’s Early Stock Awards Could Spur IPO Plans

By Kate Clark, Mark Matousek and Maria Heeter · Sep 22, 2022 2:00pm PDT · 4 comments

Stripe founders John and Patrick Collison have indicated the payments software pioneer, valued in its last fundraising at $95 billion, is in no rush to go public. And few tech firms want to test the whipsawed public stock markets. But a new listing could solve one looming problem for the 13-year-old startup: Stock awards to some of its earliest... Stripe founders John and Patrick Collison have indicated the payments software pioneer, valued in...