This Week in Startups

Wiz passes on Google, Meta pushes open-source AI ahead, Spotify’s earnings, and more! | E1984

Jul 24, 2024
The podcast dives into the fallout from the Wiz-Google deal, showcasing how startups navigate corporate pressures. Spotify's impressive earnings are highlighted, alongside discussions on its strategic pivot towards podcasting. The conversation shifts to Universal Basic Income, exploring its implications for economic mobility and personal agency. Meta's push for open-source AI is also tackled, revealing contradictions in big tech's support for open-source initiatives.
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ADVICE

Going Public vs. Acquisition

  • Prioritize an IPO over a sale to maintain control and company culture.
  • Public markets offer more long-term flexibility than acquisition.
INSIGHT

Wiz Valuation

  • Wiz's $23B offer from Google is rich, considering current market multiples.
  • Achieving similar valuations through IPO in 2024 is challenging due to market conditions.
ADVICE

Secondary Offering Strategy

  • As CEO, consider a secondary offering at $18B for Wiz.
  • This lets founders and employees cash out while avoiding acquisition risks.
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