You can only invest if you promise not to read the fine print, ok?

Mar 26, 2021

The podcast dives into David Dobrik's departure from Dispo amid serious allegations and its impact on celebrity-driven startups. Excitingly, Robinhood is finally set for an IPO, drawing everyone's attention. Microsoft is eyeing a $10 billion investment in Discord, raising questions about market dynamics. Meanwhile, Plaid is in the spotlight with a potential $600 million raise and a focus on inclusivity through its new FinRise accelerator for underrepresented founders. The hosts also discuss the unique challenges of modern fintech and health innovation startups.

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ANECDOTE

Dispo Controversy

David Dobrik, co-creator of Dispo, faced allegations regarding a member of his vlog team.
This led to investors distancing themselves from the photo-sharing app.

INSIGHT

VC Due Diligence Dilemma

VC firms struggle to unwind early-stage investments due to legal complexities and potential reputational damage.
This can lead to a "tragedy of the commons" where VCs prioritize speed over due diligence.

ADVICE

Prioritize Due Diligence

VCs should prioritize due diligence, even in competitive investment environments.
Background checks on founders are crucial to avoid reputational and financial risks.

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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. News was right back up to a dull roar this week, so we did our best to trim and hone and just bring you the most important things.

Here's the rundown:

David Dobrik stepped down from Dispo, the photo-sharing app he co-created, this past week after allegations came out about him. We talked about the venture capital angle, since early-stage investors in the app reactively distanced from their investments. Could this set precedent or have a chilling effect on celebrity-startups?
Robinhood filed privately to go public! So, it's happening everyone. At long last, one of Silicon Valley's hottest companies is kicking off its IPO process. We're hype, you're hype, and we had some jokes.
And in other mega-unicorn news, it appears that Microsoft is tempted to plonk down $10 billion for Discord. Why, you ask? Well why not. It's just $10 billion from Microsoft's $1,780 billion valuation. Or around half a percent.
Sticking to the $10 billion-and-greater category, Plaid could be raising $600 million at a valuation of $10 billion to $15 billion. That's a lot of money. Danny, however, has some doubts.
Also, Plaid has announced the inaugural cohort of its FinRise accelerator, a program focused on helping fintech startups led by underrepresented founders.
And then there were a few rounds to chat about. Namely the intensely interesting Bevy deal, and Ro raising $500 million at a $5 billion valuation.
And to wrap, Natasha and Alex shared their favs from TechCrunch's massive Y Combinator demo day coverage. Which you can read here, and here.

Let's all get some rest!

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.

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