This Week in Startups FTX buys BlockFi for $25M, Sequoia raising $2.25B, AI Umpires for MLB, Substack layoffs | E1497
Jul 1, 2022
Meta's overhaul of Facebook Groups is drawing comparisons to Discord, stirring up discussions about competition in tech. Sequoia is raising over $2 billion for new venture funds, while FTX's acquisition of BlockFi for just $25 million raises eyebrows regarding valuation drops. The MLB is poised to introduce robotic umpires in 2024, blending tech with tradition in sports. Meanwhile, Substack faces challenges with recent layoffs, highlighting the tough landscape for independent journalism.
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Sequoia's Evergreen Fund
- Sequoia's evergreen fund model allows them to hold public company shares longer, potentially increasing returns for LPs.
- This differs from the traditional VC model where funds distribute shares and profits back to LPs after an IPO.
Investing in a Down Market
- In a down market, focus on securing large positions early in startups or before public exits.
- The trend of large late-stage investments has paused due to the current state of the public markets.
FTX's Acquisition Strategy
- FTX acquiring BlockFi at a 99% discount signifies Sam Bankman-Fried's market consolidation strategy in the crypto space.
- SBF leverages his financial strength during market downturns to acquire struggling companies at bargain prices.