Hello, and welcome to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. This is our Friday episode, when we dig back through the most critical stories and themes from the week.
Stripe’s valuation recovers
As part of a tender offer, Stripe is now worth $65 billion. The company’s valuation has been on an up-and-down path in recent years as the company works to make its massive bulk fit into the private markets. Alex Wilhelm has thoughts on when it should go public.
The Implications of Stripe’s Valuation
Stripe’s valuation is a significant development in the tech industry, and its impact will be felt across various sectors. The company’s ability to raise funds at such a high valuation suggests that investors are confident in its growth prospects. However, this also raises questions about when Stripe will go public.
The Case for Going Public
Going public can provide several benefits to companies, including increased visibility, access to capital markets, and the ability to attract top talent. For Stripe, going public could help it achieve a higher valuation and increase its market share.
The Risks of Waiting
On the other hand, waiting too long to go public can be detrimental to a company’s growth and reputation. If Stripe waits too long, it may miss out on opportunities to raise capital and expand its business.
Fervo Energy’s $200M+ round
What if the solution to our energy problems was not in the stars, but beneath our feet? And no, I am not talking about carbon-based fuels. No, instead, what if geothermal energy is what we’ve been waiting for? Fervo wants to make that question into a reality.
The Potential of Geothermal Energy
Geothermal energy has long been overlooked as a viable solution to the world’s energy needs. However, with advancements in technology and increasing concerns about climate change, it is gaining attention as a potential game-changer.
Fervo’s Approach
Fervo is taking a unique approach to geothermal energy by focusing on shallow wells that can be drilled quickly and at a lower cost than traditional methods. This could make geothermal energy more accessible and affordable for countries around the world.
Why VCs are investing in companies that shut down companies
With more startups than usual heading for closure, there’s a mountain of work ahead for founders and backers to shutter companies. Now some angels and other investors are putting their own capital into several companies that specialize in helping other firms close.
The Challenges of Shutting Down Companies
Shutting down companies can be a complex and time-consuming process, requiring significant resources and expertise. It’s not surprising, therefore, that investors are looking to support companies that specialize in this area.
The Benefits of Investing in Shuttering Companies
Investing in companies that help other firms close can have several benefits for VCs, including reducing the risk of their own investments and generating revenue through services offered by these companies.
AI and the law
Microsoft’s move to invest in French AI company Mistralis is not a bad way to spread its bets. Or potentially fend off regulatory scrutiny that is building. AI in general is having a bit of a time-sorting out rights— or lack thereof — that some training data may retain.
The Regulatory Environment for AI
The regulatory environment for AI is complex and rapidly evolving, with various countries imposing different rules and guidelines on the use of this technology. Companies must navigate these complexities to avoid potential pitfalls.
Microsoft’s Move
Microsoft’s investment in Mistralis suggests that it is taking a proactive approach to addressing regulatory concerns around AI. By investing in companies like Mistralis, Microsoft can gain insights into emerging trends and develop strategies for compliance.
Coming up this weekend we have an interview with Nubank’s CEO
And we have another great interview planned for the weekend after! Chat soon!
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- Theresa Loconsolo: @equitypod
- Mary Ann Azevedo: @bayareawriter
