This Week in Startups NEWS: Ackman's SPARC, Unity CEO steps down amidst dev revolt, AI operating costs skyrocket | E1827
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Oct 12, 2023 
Dan Dorfman, CEO of Roots, discusses the innovative SPARC investment vehicle launched by Bill Ackman and its potential to reshape investor strategies. He also dives into the controversy surrounding Unity's recent pricing model shifts and the CEO's resignation, emphasizing the importance of transparent pricing in tech. Additionally, the conversation explores the skyrocketing operating costs of AI and how big tech companies are managing these challenges, plus Google’s initiatives using AI to optimize traffic for environmental benefits.
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Ackman's SPAC Failure & SPARC
- Bill Ackman, after failing to find a deal for his $4B SPAC, returned money to investors.
- Investors received rights to participate in future deals, leading to the SPARC.
SPAC vs. SPARC
- Traditional SPACs involve investors betting on promoters before deals are revealed.
- Ackman's SPARC lets investors see the target company before committing funds.
Pricing Strategy
- Get pricing right early in your startup's lifecycle.
- Changing pricing later can feel like a "rug pull" to customers.