Podcast Summary
Buzzfeed's Stock Price Drops, EU Mandates USB-C Ports: Buzzfeed insiders sell off shares, causing stock price drop, EU mandates USB-C ports to reduce electronic waste and improve consumer experience
The recent massive drop in Buzzfeed's stock price, with insiders selling off large quantities of shares following the end of the lockup period, is a significant sign of a lack of confidence in the company. With a market cap now worth less than their total 2021 revenue, this sell-off is a concerning development for Buzzfeed and its employees. Meanwhile, the EU's mandate for standard USB-C ports by 2024 is a step towards reducing electronic waste and potentially improving the consumer experience. In other news, a sports-focused startup and an ear transplant technology are this week's highlights in the world of startups and innovation.
BuzzFeed's volatility in the stock market due to small float and significant owners: Despite generating revenue, BuzzFeed's stock market volatility comes from its small float, significant owners, and unpredictable ad revenue, leaving concerns about its financial sustainability and ability to weather a recession.
BuzzFeed's volatility in the stock market can be attributed to its small float and a few significant owners, making it susceptible to extreme fluctuations when major investors sell. The company's SPAC offering in the past faced low investor confidence, resulting in a large withdrawal of funds. Ad-based media businesses, particularly those that don't reach massive scales like Disney or the New York Times, struggle as public companies due to the unpredictability of advertising revenue. BuzzFeed's current market cap is higher than its revenue and cash on hand, and the company has a significant amount of debt, leading to concerns about its ability to weather a recession and its financial sustainability.
Media Industry Faces Financial Challenges: Media companies must focus on content and additional services to succeed, with affordable solutions like Open Phone's business phone service starting at $10 a month.
The media industry is facing significant financial challenges, with companies like BuzzFeed experiencing large losses and the need to drastically cut costs to become profitable again. Valuation for media companies may be based on their revenue or profits, and those with the ability to generate expensive subscriptions for their content may be better positioned to weather the downturn. Additionally, securing personal phone numbers for business use and ensuring their continuity is essential to prevent potential sales losses. Open Phone offers a solution for creating and managing business phone numbers through an app, starting at an affordable price of $10 a month. Overall, the media industry requires a strategic approach, focusing on content and additional value-added services to succeed.
Offer more than just content to thrive and scale: Successful media businesses provide platforms for interaction and community building to keep users engaged and monetize those interactions.
Successful media businesses need to offer more than just content to thrive and scale. The example given is Inside.com, which has become profitable through email newsletters and events, but has recently added a social network and jobs section to attract and retain more users. This shift makes Inside.com more like Reddit and LinkedIn, providing a platform for interaction and community building. Another suggestion is for BuzzFeed to consider adding a creator business or casual games to their platform to keep users engaged and potentially attract even larger audiences. The key is to offer additional value beyond just content to keep users coming back and to monetize those interactions.
Exploring new revenue streams for ad-dependent media businesses: Media companies like Buzzfeed and Barstool Sports are diversifying their income sources through merchandise sales, podcasting, creator networks, and listener-supported journalism to reduce reliance on volatile ad revenue and potentially become profitable.
Companies like Buzzfeed and Barstool Sports, which have been heavily reliant on advertising revenue, are exploring new revenue streams such as merchandise sales, podcasting, and creator networks to stay afloat and potentially become profitable. These streams offer more stable and diverse sources of income compared to the volatile advertising market. The shift towards listener-supported journalism and subscriptions in media is also gaining popularity as a sustainable business model. Venture capital may not be the best fit for these slower-growth media businesses, and instead, they may benefit from a more community-driven approach like public radio. Salary reductions and restructuring may also be necessary for these companies to reach break-even points.
Identifying complementary high-margin businesses for venture capitalists: VCs might consider investing in businesses that complement existing content and audience, such as merchandise sales, design products, mental health apps, or expanding offerings of 'super apps'.
While some businesses, like BuzzFeed, Vice, and Vox, have the potential to be great, they may not be the best investments for venture capitalists seeking exponential returns. Instead, venture capitalists might consider identifying complementary high-margin businesses that can benefit from the existing content and audience. For instance, BuzzFeed could explore merchandise sales, design products, or even mental health apps, as seen with Dial with 2Ls, a mental health app for Gen Z, which was highlighted and built on Squarespace. Another trend is the emergence of "super apps," such as Uber, which are expanding their offerings beyond their core services. In the case of Uber Eats, they are now enabling nationwide shipping for various food brands, allowing consumers to order directly from these brands for a small additional fee. This strategy allows these brands to reach a wider audience and potentially increase sales. Ultimately, it's essential for investors and entrepreneurs to identify opportunities that align with their return profile and adapt to emerging trends in the market.
Uber enters food delivery market, targeting small businesses: Uber's entry into the food delivery market could lead to improved services and more opportunities for small businesses, as they compete with or acquire merchants from DoorDash and Goldbelly.
Goldbelly's popularity surged during the pandemic as a way to order food from local restaurants around the world, helping small businesses thrive. Now, Uber is entering the market, aiming to acquire merchants instead of customers, who are already using platforms like DoorDash and Goldbelly. This competition could lead to better services and more opportunities for small businesses. Uber's strategy is reminiscent of Google's acquisition of YouTube after failed acquisition talks. Ultimately, companies may choose to sell or compete. For Goldbelly, the decision lies between selling to Uber or DoorDash or facing competition. This shift could make it easier for businesses to offer shipping options, similar to Shopify, without the need for additional convincing. Overall, the entrance of Uber into the food delivery market is an interesting development that could benefit consumers and small businesses alike.
Uber's Strategic Expansion into New Markets: Uber is broadening its business model by exploring new opportunities in office spaces, experiences, and service aggregation, leveraging its economies of scale and partnerships for an advantage.
Uber is expanding its business model beyond ride-hailing and food delivery by exploring new opportunities in office spaces, experiences, and aggregating services. The company's existing economies of scale and partnerships with businesses like Goldbelly and UPS give it an advantage in entering these new markets. For instance, Uber could offer co-working spaces by transforming apartments into collaborative offices, providing tables, chairs, and Wi-Fi. Additionally, Uber could leverage its experience in logistics and delivery to offer services like last-minute ticket sales or hotel bookings. By integrating these services into its app, Uber could create a "super app" that provides a one-stop solution for various needs, potentially surpassing competitors like WeWork or iMessage. Overall, Uber's strategic expansion into new markets demonstrates its commitment to innovation and growth.
Tech Companies Eyeing Delivery App Acquisitions: Tech giants like Apple and Google seek to expand their revenue and market reach through acquisitions of delivery apps, such as Uber, DoorDash, and Postmates. Acquisitions can also provide access to new demographics or talent.
Tech companies like Apple and Google are potential suitors for delivery app companies such as Uber, DoorDash, and Postmates due to their ability to significantly increase their revenue and market reach through acquisitions. The discussion also highlighted how acquisitions can serve various purposes, such as gaining access to new demographics or talent. Furthermore, the EU's decision to mandate USB-C ports for mobile devices by 2024 was discussed, with some expressing frustration that Apple, which already uses USB-C, will still be subject to the rule. Additionally, Thorne's personalized health and wellness offerings were introduced as a solution for individuals seeking preventative and holistic care.
Monopolistic companies setting proprietary standards and boosting sales: Monopolistic companies like Apple generate billions in profits by setting proprietary standards, deprecating older ones, and charging premium prices for accessories. This practice, contributing to e-waste, is being challenged by regulations like the EU's mandate for USB-C.
Monopolistic companies, like Apple, have the power to create their own standards and charge premium prices for proprietary accessories, while deprecating older ones to boost sales. This practice, which was discussed in the context of Apple's use of the Lightning connector, results in significant profits for the company, estimated at $7.2 billion from iPhone sales alone. However, this business model raises environmental concerns, as it contributes to the production and eventual disposal of billions of unnecessary cables. The EU's recent mandate for mobile devices to use USB-C is a step towards reducing this complexity and waste. A startup, Religion of Sports, co-founded by Tom Brady, Michael Shrayhan, and Gotham Chopra, is an example of a successful niche production company in the sports media industry, which has raised $50 million in funding and is exploring opportunities in NFTs and athlete trading cards.
Athletes using social media and podcasts to reach larger audiences: Athletes leverage social media and podcasts to extend their reach, impact games, and create drama, with some generating significant income from media projects.
Athletes are increasingly using social media and podcasts as platforms to reach larger audiences and create content while they're still active in their sport. Draymond Green is an example of this trend, using post-game shows as an extension of press conferences, providing real-time insights that can impact the game and create drama around the sport. This approach allows athletes to capitalize on their fame and reach affluent audiences, with some, like Charles Barkley, making more money from media projects than during their playing careers. However, not all of these projects are financially successful, with some being vanity projects driven by the athletes' personal interests. Overall, this trend reflects the power of star power and the growing importance of media in sports.
Athletes and Politicians Turning into Media Moguls: Athletes and politicians are leveraging their followings to create successful media ventures, with potential for significant returns and the opportunity to revolutionize industries
The world of media is evolving, and athletes, like Draymond Green, have the potential to become media moguls. With the rise of podcasts and other digital content, there is an opportunity for athletes to build their own media companies and audiences. This trend is not limited to sports, as politicians, such as Obama, have also capitalized on their followings to create successful media ventures. While there are risks involved, such as the high cost of production and the uncertainty of success, there is also potential for significant returns and the opportunity to create the next big media franchise. In the realm of biotechnology, a Texas woman has made history with a 3D printed ear transplant made possible by the company 3D Biotherapeutics. This breakthrough demonstrates the potential for innovative technologies to revolutionize industries and improve people's lives.
Revolutionizing Medical Field with 3D Printing: 3D printing is transforming the medical field by creating complex body parts and organs using cells, nutrients, and bio ink.
3D printing technology is revolutionizing the medical field by enabling the creation of complex body parts, such as ears, and even organs like heart valves. This process involves isolating cartilage formation cells, supplementing them with nutrients, and using a collagen-based bio ink to 3D print the desired body part. The future holds great promise, with the potential for printing more complex body parts and even organs, potentially making conditions like cancer more manageable. The process is already being used for skin grafts and has been inspired by movies like "The Fifth Element" and "Westworld." The possibilities are endless, and it's an exciting time to be alive as we continue to explore the capabilities of this technology.
Advancements in Science and Technology and Entrepreneurship Opportunities: From medical breakthroughs to funding opportunities, science and technology advancements bring hope and potential for growth in various industries. Stay informed and seize opportunities for learning and investment.
We are witnessing significant advancements in various fields of science and technology, from managing once-incurable diseases like brain and pancreatic cancer, to the development of a universal coronavirus vaccine using mRNA technology, and the potential for a cure for HIV. For entrepreneurs, opportunities for growth and funding are available through events like Founder University, where experts share knowledge on fundraising, hiring, product development, and more. The goal is to create a flywheel of investment and growth, with the potential for funded companies to speak at future events and inspire the next generation of builders. Despite the challenges and uncertainties of the current world, it's important to maintain a realistic yet optimistic perspective and take advantage of opportunities for learning and growth.
Learn from experienced professionals and gain access to investment opportunities through startup programs: Invest in yourself by learning about startups through programs like Founder.university and Angel.university. Gain insights into company growth, fundraising, and hiring, and potentially make a positive impact through charitable giving.
Investing in and learning about startups through programs like Founder.university and Angel.university can be a valuable professional development experience. These programs offer insights into company growth, fundraising, and hiring, and the knowledge gained can potentially pay for the cost of attendance. For those interested in investing in startups, Angel.university provides an opportunity to learn from experienced investors and gain access to deal memos and investment opportunities. All proceeds from these courses go to charity, making it a worthwhile investment. Founder.university, on the other hand, is a free 12-week program designed for early-stage founders who are just starting to build their companies. It's important to note that both programs require an application process and a commitment to being selected. Overall, these programs offer unique opportunities to learn from experienced professionals, network with like-minded individuals, and potentially make a positive impact through charitable giving.
