The split of Sequoia Capital into three organizations emphasizes the importance of regional focus in venture capital and the influence of global politics on investment decisions.
Pricing trends, such as massive price increases and dynamic pricing models, are being closely observed to understand the impact of inflation, volume declines, and the effectiveness of pricing strategies.
The growth and investment in women's sports highlight the potential for long-term success and economic implications for the sports industry.
Observing the travel and entertainment industries can provide insights into the health of the macro economy, inflation control, and the impact on overall inflation.
Deep dives
Split of Sequoia Capital
One of the main stories to watch this summer is the split of Sequoia Capital into three different organizations focused on the US, China, and India/Southeast Asia. The split was driven by portfolio conflicts, the prominent role of the main investor in China, Neil Shen, and the geopolitical tensions between China and the US. This story highlights the importance of regional focus in venture capital and the impact of global politics on investment decisions.
The Fascination with Pricing
Pricing is a major focus this summer, with trends of massive price increases and willingness to accept volume declines in various industries. Companies like Pepsi and Disney are implementing variable and dynamic pricing models. Tesla's pricing strategies, including price cuts and variations influenced by customer understanding, are also being closely watched. The impact of inflation on pricing decisions, the willingness to withstand volume declines, and the effectiveness of dynamic pricing are key points of interest.
Looking Forward to Women's Sports
A noteworthy theme this summer is the growth and development of women's sports. The increased investment, attention, and emergence of new stars in women's sports are generating excitement and potential for long-term success. Observing the progress in women's sports and its impact on the sports industry, including its economic implications and the possibility of new platforms, is a significant trend to follow.
Travel and Entertainment as Economic Indicators
The travel and entertainment industries are important to watch as they can indicate the health of the macro economy. Despite booming business, there is uncertainty about whether this growth is permanent. These industries also have implications for inflation, particularly services inflation, which needs to be addressed to control overall inflation.
Brand Activism and the Labor Union Movement
Brand activism, where companies take a stand on social issues, has become a core strategy. Consumer boycotts of brands that engage with social issues are on the rise, and it remains to be seen whether brands will pull back or remain true to their values. The labor union movement in the United States is growing modestly, but faces challenges due to economic turmoil and the Supreme Court's stance. Observing how these movements evolve over the summer will be fascinating.
Energy Markets and Carbon Tax Credit Market
Energy markets, including alternative energy investments and capital allocation, are important to watch this summer. The market for tradable tax credits for renewable energy projects is developing, and its success will determine the viability of these technologies. Additionally, the capital allocation in energy markets, as big oil companies pull back from alternative energy, will impact the future of the sector.
Interest Rates and Monetary Policy
Interest rates and their impact on the economy will be an important story to watch this summer. Observing how rising rates affect various sectors and whether the economy can withstand the rate hikes will provide insights into the effectiveness of monetary policy. This will shed light on long-held assumptions about the trade-off between price stability and a healthy labor market.
Felix and Mihir are joined by friends to discuss their stories to watch this summer, including the bust up of Sequoia, pricing, Gen AI, sports stories, the FTC and PBMs, Amazon in healthcare, and the future of theatres, travel, unions, brand activism, energy tax credits, interest rates and the war in Ukraine.
