We looked inside some of the tweets by @KateClarkTweets and here's what we found interesting.
Inside 100 Tweets
wow every line in this story about a rogue scooter company in SF that doesn't think it needs permit is hilarious, including where supervisor peskin calls the Go X founder a "ding-dong"https://www.sfexaminer.com/news/sfs-quiet-war-with-alleged-scofflaw-scooter-company/
https://heyrowan.com . One more and it’ll be time for a trend piece.
Like once a week I discover an odd (or dumb) startup that I wouldn’t have thought existed and then almost immediately realize there’s another one just like it and they are both VC-backed! This week it’s D2C ear piercing startups. Two, both VC-backed, taking on Claire’s.
I've never heard of a "rescue valuation" but that's probably not good news for your company - https://www.bloomberg.com/amp/news/articles/2019-10-18/softbank-is-said-to-eye-wework-rescue-valuation-below-8-billion
We talked with @GreylockVC general partner @saranormous about @alex’s favorite subject: https://techcrunch.com/2019/10/18/greylock-gp-sarah-guo-is-as-bullish-on-saas-as-ever/
No startup has both:
1. a one-word dictionary domain name
2. a reasonable valuation
One long extended tweet on Airbnb, WeWork, direct listings, more: https://techcrunch.com/2019/10/17/airbnbs-wework-problem/
What should I get?
WeWork long enjoyed software multiples vs. real estate and became a Silicon Valley cautionary tale pretty much overnight. Airbnb, probably still overvalued, has an existing roadmap to profits.
Comparing WeWork & Airbnb at this point is fruitless. Both are historically unprofitable unicorns born amid the gig-economy boom but their futures look very different.
Now I’m going to try to turn these tweets into a story.
Another key takeaway here is Airbnb has a lot of money readily available for M&A and is well set up for the market downturn everyone has been expecting for like 3 years now.
So WeWork, which is seconds from totally running out of cash, and Airbnb aren’t similar but that doesn’t mean Airbnb won’t have to face its fair share of skeptics as it readies an IPO of direct listing.
Airbnb has been “cumulatively” free cash flow positive for some time, meaning it’s mostly been free cash flow positive but not every quarter... per sources. This info comes after @theinformation reported the company doubled its operating losses in Q1 to $306M.
So Airbnb has more money in the bank than it’s raised in venture capital. It’s raised ~$3.5B, debt aside. & the company has an untouched $1B line of credit. Slack had $800M on its balance sheet ahead of its direct listing. Seems impossible Airbnb wont do a direct listing...
"Cloud kitchens is just adding more competition to one of most competitive industries in the world, and that isn’t a path to leverage." https://techcrunch.com/2019/10/17/cloud-kitchens-is-an-oxymoron/ @DannyCrichton
Thinking of adding a section to my newsletter for passing along insider tips from reliable, informed sources (I'm copying @kirstenkorosec, subscribe to The Station). It would be focused on upcoming deals or funds or whatever I'm hearing that week. Yes, no, maybe?