Image of podcast

Jason Unplugged: IPO market, WaPo tactics against Dave Portnoy + Live Q&A | E1815

This Week in Startups

Fri Sep 22 2023



Acquisition of cybersecurity company Splunk by Cisco:

  • Splunk, a leading cybersecurity company, is set to be acquired by Cisco.
  • The acquisition highlights the growing importance of cybersecurity in today's digital landscape.
  • This move will likely strengthen Cisco's position in the cybersecurity market and enhance its ability to provide comprehensive solutions to customers.

IPO trends and what that means for the startup market:

  • There has been a surge in IPO activity recently, with many startups going public to take advantage of favorable market conditions.
  • This trend indicates investor confidence in the startup ecosystem and reflects a positive outlook for the overall economy.
  • However, it also raises concerns about potential overvaluation and the sustainability of this IPO boom.

WaPo tactics against Dave Portnoy:

  • The Washington Post (WaPo) has been employing aggressive tactics against Dave Portnoy, founder of Barstool Sports.
  • These tactics include publishing negative articles and attempting to tarnish Portnoy's reputation.
  • This situation sheds light on the power dynamics between traditional media outlets and influential individuals in the age of social media.

"Do VCs ever go back to previous business trends or does everyone focus exclusively on the it-thing like AI today?":

  • Venture capitalists often prioritize emerging technologies and trends, such as AI, due to their potential for high returns.
  • However, VCs may still consider opportunities in previous business trends if they see value and growth potential.

"How do startups outside Silicon Valley access VC funding or do you just have to make the journey there?":

  • While being located in Silicon Valley can offer advantages when accessing VC funding, startups outside this region can still secure investments.
  • Startups need to build strong networks, leverage industry connections, attend relevant events, and demonstrate compelling business models to attract investors.

"Heard you say you believe we still have six months of this down market. What makes you arrive at this prediction...?":

  • Jason's prediction of a six-month down market is based on his analysis of economic indicators, market trends, and historical patterns.
  • Factors such as inflation concerns, geopolitical tensions, and the potential for interest rate hikes contribute to this prediction.

"Since you invest in so many companies each year, how do you find alpha and separate these startups from each other?":

  • Finding alpha refers to identifying startups with above-average returns. Jason employs various strategies like conducting thorough due diligence, leveraging his network, and analyzing market dynamics to identify promising investments.
  • Differentiation among startups involves evaluating their unique value propositions, market positioning, competitive advantages, and growth potential.

Why Jason is doing the cloud kitchen incubator?:

  • Jason has embarked on the cloud kitchen incubator initiative to tap into the growing trend of food delivery and virtual restaurants.
  • By providing infrastructure and support services to aspiring restaurant entrepreneurs, he aims to catalyze innovation in the food industry.

"Do you believe there should be guardrails on AI or as little regulation as possible to help spur innovation?":

  • The question of regulating AI is complex. Striking a balance between fostering innovation and ensuring ethical use is crucial.
  • While some argue for minimal regulation to encourage technological advancement, others advocate for safeguards against misuse and potential risks associated with AI.

Which areas do you recommend founders cut burn that impacts growth released?:

  • Founders should prioritize cost-cutting measures that have minimal impact on growth prospects.
  • This could involve optimizing operational efficiencies, renegotiating vendor contracts, streamlining processes, or reducing discretionary spending without compromising core business activities.

Interest is forbidden in Islam but I really want to invest or create an investment group without interest. Is this possible?:

  • Islamic finance principles prohibit charging or paying interest (riba). However, alternative financial instruments compliant with Shariah law exist.
  • These include profit-sharing agreements (mudarabah), equity-based partnerships (musharakah), or leasing arrangements (ijara), which can be utilized to create investment opportunities without interest.

How do you advise founders to solve disagreements internally?:

  • Resolving internal disagreements requires open communication, active listening, and a willingness to compromise.
  • Founders should foster a culture of transparency, establish clear decision-making processes, and consider seeking external mediation if necessary.

What is a book that you've read recently that you would highly recommend?:

  • Jason recommends reading "The Innovators" by Walter Isaacson. This book provides insights into the history of technological innovation and profiles some of the greatest minds behind groundbreaking inventions.

Do you think the UK is underperforming when it comes to unicorns and big impact on startups?:

  • The UK has produced several successful startups and unicorns in recent years but may not match the scale of Silicon Valley or other tech hubs.
  • Factors such as access to capital, regulatory environment, talent pool, and market dynamics contribute to a region's startup ecosystem performance.