This post was originally posted on The Startup Project Podcast blog.
The GameStop incident is an anecdote of a larger phenomenon that will be more common in the future. There have been events like GameStop before but not in the capital markets, not at the same scale. Although the short squeeze is a common phenomenon in capital markets, the cause and effect of this particular short squeeze are unique.
In a way, the tiff between PewDiePie and T-Series to become the largest YouTube channel was a predecessor to the GameStop event. Both events have a common throughline.
They are both…
Crowdfunding allows retail investors who are not accredited to invest in early stage companies and get equity in return. This is different than the Kickstarter’s of the world. In Kickstarter campaigns, the backers do not get equity in the company, and often there isn’t even an actual company behind the campaign. Crowdfunding was possible because of the Jobs Act passed during the Obama administration. A slew of platforms like Republic, Start Engine & Seed Invest emerged to facilitate crowdfunding. The pros of crowdfunding are that startups had another way to raise funding, if you are a non-accredited investor looking to…
Languages are often considered as a standard mode of communication. There are standard definitions for each word defined authoritative institutions, there are standard tests that test for these standard language skills as they are defined.
But like most things, the theory and practice differ in nature.
The theoretical and practical languages have their intersections.
But the practical usage of language differs in wide ways across the population which speaks it. This is the meta nature of all languages.
Languages even though look like generic protocols of information exchange, are very much individualistic in their nature. Even the popular ones. The…
[This post was originally published in my blog, here.]
Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.
Archimedes said this 2000 years ago, but it is more applicable today than ever. The quote underlines an important aspect of the economy that we live in.
Leverage is a striking thought paradigm to employ in almost all calculation of effect of a person, idea, technology or a company.
The economy we live in is increasingly becoming a leverage economy. It means to be successful in this economy, you need…
[This post was originally published in my blog, here.]
Hulu purchased the rights of Seinfeld in 2015 for $150 Million. For the same deal after 4 years Netflix wrote a check of $400 Million. During these 4 years, neither Larry David nor Jerry Seinfeld (creators of Seinfeld) has done any new work for the show. There are no new episodes, there is no change in background music, there is no change in the screenplay & there is no change in the people who are getting paid too. The show moved from one streaming service to another. …
Netflix spent $16 billion in 2019 on producing and acquiring new content. Amazon pursued its originals journey with $6 billion. Quiby, a yet to launch streaming service raised a billion dollars to create a catalog for millennial’s.
There is an incredible amount of spending from both the legacy media companies and the yet to launch upstarts to attract the consumer to their streaming services.
This leads to the important question of why this extravagant spending & how does it make sense?
The answer to this question is three-fold —
Media companies are attention merchants. They compete to gain access to…
1/Emergence by Steven Johnson
As a concept emergence is everywhere. It is also one of nature’s biggest mysteries. Understanding emergence opens up a new way to think about many contemporary problems like city planning, media production & social media products.
2/Meat Racket by Christopher Leonard
Like telecommunications, the meat industry in the U.S is also an oligopoly. Tyson with chicken pioneered industrialized farming & changed both the American diet and farming forever. The cheaper the chicken, the worse the farmer’s life gets. Eyeopening read.
3/Trust me I am lying by Ryan Holiday
Incentives matter. The lines between a blogger and…
Reading is a way to gain experiences that would otherwise be not possible. Experiences are only as good and as real as you retain them.
In spite of being the differentiation factor from other species, the human brain has its limitations.
The human brain will subconsciously grasp and ingrain into your psyche what you read but the goal of reading is for conscious, active & strategic change.
To acknowledge these individual biological limitations highlights the need for developing practices that help your brain retain more of what you read. And do it in a time-efficient way.
Long term reading habit…
It is easy to know the value of a product or service which is used often and is accepted as something worthy to pay for. Everyone agrees gold coins are valuable even if they don’t know the current gold rate in their currency. Everyone agrees Amazon Prime is a valuable service even though they might not know the exact market cap of Amazon.
Finding value is something everyone does in life, in different forms. Deciding which college to attend, which subject to study & which job to do are all about understanding the potential value these choices can create.
It is not erratic to say that we have witnessed one of the major value destructing events in recent history with WeWork IPO fall out. The decimated value, in this case, an estimated $35 Billion is comparable to the value lost in the Enron scandal.
The we-work story is a cautious reminder that — irrational exuberance will be punished brutally and you will not see it coming in both public and private markets.
WeWork’s failure is not an indication that every other tech unicorn is overvalued. …