Connect with us

Coinbase, Clubhouse and the inevitable conflict of competition

Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here. This week, cryptocurrency exchange platform Coinbase announced that it is launching its own NFT platform to take…

Published

on

Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here.

This week, cryptocurrency exchange platform Coinbase announced that it is launching its own NFT platform to take on OpenSea, an existing NFT platform. Some techies aptly pointed out that both Coinbase and OpenSea are backed by Andreessen Horowitz, leading to questions around competitive conflicts that could arise from having a shared investor (it’s unclear if a16z ever sold its shares in Coinbase after it went public).

As we discussed on Equity this week, the idea of having competitive companies within the same portfolio feels uncomfortable. It could impact how open each company is with its investors, and, as we saw with Hinge Health, can cause tension if there’s an overlap in advisers. It’s a fair argument.

But, is it just me, or does competitive conflict sound somewhat inevitable? As venture firms grow, especially an institution like a16z, the idea that no portfolio companies in booming sectors like fintech or crypto overlap in vision feels unrealistic. Clubhouse, another a16z-backed company, was met with an entire wave of competitors after its debut — and I joked then that it’s only a matter of time until one of the firm’s portfolio companies pivots to social audio, too.

In a world of rapid deal-making and booming subsectors, competitive conflict will continue to grow. Imitation holds startups to a higher standard. If a startup can copy your idea, and entirely win based off of that, a shared investor is likely not your problem. Sure, there should be some processes in place to make sure that your board member isn’t sitting in meetings with your closest competitor, but, beyond extreme cases, the line is blurring on what should constitute conflicts.

I’m being harsh, but that’s my first reaction. Your competitor can always eat your lunch, but in the great OpenSea, maybe that just means it’s time to swim a little deeper.

As always, you can find me on Twitter @nmasc_ or listen to me on Equity. This week, I also made a guest appearance on Here & Now to talk about edtech’s evolution!

A fund for, and by, South Asian female entrepreneurs

Image Credits: Bryce Durbin

As a South Asian female, I was amped to see the emerging fund manager world get a new influx of my people this week. Neythri Futures Fund announced that it has closed a $10 million fund with investments from leading South Asian men and women.

Here’s what you need to know: The fund, per founding managing partner Mythili Sankaran, brought together 200 investors, with 90% South Asian women and, here’s the kicker, 70% first-time investors. It was built on AngelList, which has been working on a suite of SaaS tools for venture capitalists.

More money, less problems: 

ClassPass has stepped off the treadmill and onto a new track

Image Credits: Dan Bruins

ClassPass was acquired by Mindbody in an all-stock deal that actually got half of TC staff really excited. ClassPass, for those who don’t know, helps fill workout classes with consumers, while Mindbody provides the software that helps fitness centers and boutique shops better run their business.

Here’s what to know: It felt sensical and smart, two words that should be associated with acquisitions.

By combining forces, the Mindbody/ClassPass entity has the opportunity for huge growth. ClassPass studios that are not using a booking software — Lanman says it’s about one-third of the studios on ClassPass — will now have the chance to sign up with Mindbody.

Mindbody’s consumer-facing business will have the chance to double down on their experience by signing up for a ClassPass subscription and get access to those studios. And, of course, gyms and studios that use Mindbody for à la carte bookings could be upsold to ClassPass, as well. — Jordan Crook

When M&A goes away:

A tale of two travel stories

Image Credits: Hey Darlin / Getty Images

This week on Equity, the TechCrunch team looked at how two travel-focused startups have pivoted and rebounded their way through the pandemic. While one startup chose to focus on flexible living, another decided to go the fintech route.

Here’s what to know: TripActions went from $0 in revenue to $7.25 billion in valuation. How? Well, as Mary Ann reports, TripActions leaned into the very nascent fintech product that it launched a month before the pandemic hit, giving it growth and a way to support customers through expense management. The news reminds us all that every startup, eventually, is a fintech company.

Fintech & friends:

Around TC

This week, I’m going to convince you that one of the best, free ways to build a better venture-backed business is … TechCrunch Live. The weekly event, put together by some of the best internal folks at the publication, connects founders and the investors who finance them in a chill chat.

TC interviews investors on their thought process when writing checks, pushing for specifics and reverse engineering their biggest deals to date. Then, in the latter half of each episode, founders in the audience are encouraged to jump on our virtual stage and pitch their products, receiving live feedback from our esteemed duos.

This past week, we had Chime founder and CEO Chris Britt with Menlo Ventures partner Shawn Carolan. In the past, we’ve had Poshmark CEO Manish Chandra, Mayfield’s Navin Chaddha, Planet FWD’s Julia Collins and Cleo Capital’s Sarah Kunst.

TechCrunch Live is free for anyone who would like to attend live, so come hang every Wednesday at 3 p.m. EDT/noon PDT.

Across the week

Seen on TechCrunch

How Los Angeles is preparing for the air taxi takeoff

SoWork just convinced investors (and Tinder) that virtual co-working is here to stay

Reddit hires former Google Cloud exec as its first chief product officer

How to sell clothes online and actually make money

Coinbase is launching its own NFT platform to take on OpenSea

Seen on TechCrunch+

Inside Plaid’s plans to build a new, global finance network

Selling into the enterprise: How Slack and other startups get it wrong

NerdWallet’s IPO filing reveals high-margin content business, accelerating marketing spend

Founders should use predictive modeling to fundraise smarter

How my company is winning the war for engineering talent

Talk soon,

N

Read More

Continue Reading

Uncategorized

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

Published

on

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

Read More

Continue Reading

Spread & Containment

A major cruise line is testing a monthly subscription service

The Cruise Scarlet Summer Season Pass was designed with remote workers in mind.

Published

on

While going on a cruise once meant disconnecting from the world when between ports because any WiFi available aboard was glitchy and expensive, advances in technology over the last decade have enabled millions to not only stay in touch with home but even work remotely.

With such remote workers and digital nomads in mind, Virgin Voyages has designed a monthly pass that gives those who want to work from the seas a WFH setup on its Scarlet Lady ship — while the latter acronym usually means "work from home," the cruise line is advertising as "work from the helm.”

Related: Royal Caribbean shares a warning with passengers

"Inspired by Richard Branson's belief and track record that brilliant work is best paired with a hearty dose of fun, we're welcoming Sailors on board Scarlet Lady for a full month to help them achieve that perfect work-life balance," Virgin Voyages said in announcing its new promotion. "Take a vacation away from your monotonous work-from-home set up (sorry, but…not sorry) and start taking calls from your private balcony overlooking the Mediterranean sea."

A man looks through his phone while sitting in a hot tub on a cruise ship.

Shutterstock

This is how much it'll cost you to work from a cruise ship for a month

While the single most important feature for successful work at sea — WiFi — is already available for free on Virgin cruises, the new Scarlet Summer Season Pass includes a faster connection, a $10 daily coffee credit, access to a private rooftop, and other member-only areas as well as wash and fold laundry service that Virgin advertises as a perk that will allow one to concentrate on work

More Travel:

The pass starts at $9,990 for a two-guest cabin and is available for four monthlong cruises departing in June, July, August, and September — each departs from ports such as Barcelona, Marseille, and Palma de Mallorca and spends four weeks touring around the Mediterranean.

Longer cruises are becoming more common, here's why

The new pass is essentially a version of an upgraded cruise package with additional perks but is specifically tailored to those who plan on working from the ship as an opportunity to market to them.

"Stay connected to your work with the fastest at-sea internet in the biz when you want and log-off to let the exquisite landscape of the Mediterranean inspire you when you need," reads the promotional material for the pass.

Amid the rise of remote work post-pandemic, cruise lines have been seeing growing interest in longer journeys in which many of the passengers not just vacation in the traditional sense but work from a mobile office.

In 2023, Turkish cruise line operator Miray even started selling cabins on a three-year tour around the world but the endeavor hit the rocks after one of the engineers declared the MV Gemini ship the company planned to use for the journey "unseaworthy" and the cruise ship line dealt with a PR scandal that ultimately sank the project before it could take off.

While three years at sea would have set a record as the longest cruise journey on the market, companies such as Royal Caribbean  (RCL) (both with its namesake brand and its Celebrity Cruises line) have been offering increasingly long cruises that serve as many people’s temporary homes and cross through multiple continents.

Read More

Continue Reading

International

This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

Published

on

Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

More Travel:

According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

Read More

Continue Reading

Trending