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:
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While SPACs may be useful in some circumstances today, direct listings still offer a better alternative to the traditional IPO process.
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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.
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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.
Show Notes
* [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?
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