This week, the hosts tackle the tumultuous world of cryptocurrency, debating whether news from Elon Musk or Ethereum’s creator caused the recent crash. They dive into a new startup, Caplight, aiming to facilitate short selling in private markets amidst chaotic economic conditions. The conversation shifts to real estate, focusing on Better.com’s transition from IPO to SPAC and the volatility of companies like Zillow and Opendoor. They also touch on Softbank’s surprising profits and the need for inclusivity in venture capital.
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insights INSIGHT
Loss of Signal in the Market
The market lacks clear signals for valuing assets, as valuations are now driven by impressions and news rather than fundamentals.
This shift from revenue-based valuation to influence-driven valuation creates volatility and uncertainty.
insights INSIGHT
Oversaturation of Tech Startups
Even tech journalists struggle to discern meaningful differences between many startups, suggesting an oversaturation in some sectors.
Investors may be funding redundant ideas due to a surplus of capital and a need to deploy it.
insights INSIGHT
Short-Selling Startups
The lack of short-selling opportunities in private markets contributes to inflated valuations and distorted market signals.
A new startup, CapLite, aims to enable shorting of private startup stock, potentially providing a corrective mechanism.
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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.
The fully-vaxxed and officially fully-immune took over the podcast this week, with Natasha and Danny co-hosting the show while the inimitable Alex is out from Shot #2. Grace and Chris, as always, were behind the scenes making sure we sound pretty and don't fall down too many punny board game rabbit holes after vacation.
Here's the rundown of what we got into:
Crypto crashed - thanks to either Elon or the guy who created Ethereum and then donated some to relief efforts for COVID-19. We debated how signal gets lost and rediscovered and lost again in this news cycle, and what that means for anyone in tech trying to get a pulse of. what's actually happening.
We then pivoted into the last bit of our 'The World Is Melting' section to talk about home ownership and the slow stink of real estate stocks right now. Ontop of that, Better.com, a digital mortgage lender, decided to SPAC after reportedly tabling an IPO.
A mention of SPACs obviously opened up a can of worms, or should I say, oasis of woods.
And that's where we break! Follow the podcast on Twitter, be kind to your humans, and be the kindest to yourself. Back sooner than you can raise a $25 million pre-seed round for an audio app for Dogecoin lovers.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
Equity