003 – Smoking Your Own Supply
Is marking up your private investments by leading consecutive rounds a mistake or a brilliant move? Doug and Gene discuss SoftBank’s tactics, Lyft, Lime, Faire, and SPACs vs. direct listings.
Top 3 Takeaways:
While SPACs may be useful in some circumstances today, direct listings still offer a better alternative to the traditional IPO process.
Illiquidity in the private markets and the lack of frequent price discovery hides the fact that private market investors still worry about valuations all the time.
Lime currently has structural problems related to unit economics, but one of several innovations, especially around the durability and payback period of scooters, could make it a great business.
- [0:27] Virgin Galactic goes public via a SPAC.
- [2:31] SPACs vs. direct listing, and why direct listings will evolve to include a capital raise.
- [4:03] Lyft earnings and what it means for the tech IPO climate.
- [8:22] Illiquidity in the private markets and the lack of frequent price discovery hides the fact that private market investors still worry about valuations all the time.
- [9:35] Smoking your own supply – a mistake or a brilliant move?
- [11:33] Should Lyft have been more upfront about a real path to profitability when they were marketing?
- [13:41] Does Lime have a structural challenge with their business model?
- [17:20] Will we ever get to a scooter model that lasts long enough to payback the cost and generate revenue?
- [18:19] Marketplaces, fintech, and subscription software continues to be well received by the market. How will Faire fair?