A $700M SAFE, more IPOs, and how one venture fund is transcending borders | Equity Podcast

()

Startups and Incubators

Onyx, a Y Combinator-backed digital bank, is pivoting from B2C to B2B, offering a white-label platform for community banks, regional banks, and credit unions to launch digital apps for young affluent consumers.
Philip Krim, co-founder of Casper, has launched Monto Climate, an incubator focused on climate-related startups. Unlike traditional accelerators, Monto Climate will work on its own ideas and bring in external people to run successful businesses, raising traditional venture capital later.
The host expresses skepticism about the effectiveness of startup incubators that are not founder-led and highlights the lack of prominent companies that have emerged from such incubators.
The host mentions the Reddit IPO as an example of a successful company that came from an accelerator model.
The host criticizes Wonder, a food delivery company that raised $700 million in a SAFE, calling it an excessive amount of funding for a crowded market.
The host suggests a hypothetical scenario where Monto Climate raises $700 million and Wonder raises $8.5 million, expressing a preference for more funding for climate-focused initiatives.

Late-stage VCs may be holding back their portfolio companies from going public due to concerns about market volatility, regulatory changes, and the potential for better valuations in the future.
This revelation challenges the common perception that founders are the ones delaying public listings and shifts the focus to the role of investors in this process.
VCs have a fiduciary responsibility to their LPs, so they may hold back companies from going public to maintain a higher valuation.
The host introduces Ethos Fund, a new venture capital firm that invests in founders bridging the gap between the US and Vietnamese tech communities.
The host notes the geopolitical significance of investing in Vietnam and the potential benefits of investing in "third culture founders."
Saudi Arabia is planning a significant investment of $40 billion into the field of artificial intelligence (AI) through its sovereign wealth fund.
This move aligns with the Saudi government's broader focus on venture investing, innovation, and following industry trends.

Airbnb reported strong Q4 results and a positive outlook for travel demand.
Robinhood reported disappointing earnings and a declining user base.
Affirm reported revenue growth and increasing adoption of its BNPL service.
Reddit's IPO exceeded expectations, with a 52% increase in stock price on its first day of trading.
The secondary market valuation of Reddit was around $5 billion, but the public market valuation is now closer to $9-10 billion.
The success of Reddit and AER lab's IPOs is a positive sign for the tech industry and may encourage more companies to go public.