No good co will actually take money from the incumbent they're trying to uproot
Mozilla is funded by google.
fair
Facebook establishing a venture arm to invest in startups
91–100 of 165 posts
Re: Facebook establishing a venture arm to invest in startups
#92my (stupid) theory is fb/goog/youtube are now trying to help small businesses as much as possible on their platforms to drive more traffic and revenue since expansion is tapping out at some point
Re: Facebook establishing a venture arm to invest in startups
#93I would dread having Facebook on my board. I intend to treat my future users very well and wouldn’t want somebody with 1-2/5ths ownership in my company pushing me to chase their data
Re: Facebook establishing a venture arm to invest in startups
#94Earlier quoted context omitted.
That's fair, looking forward to your 'incredible journey' with Facebook. I'm sure they can't wait to see what your startup will come up with. /s
Why the sarcasm? Most of the times, acquirehire by these top companies is probably better than being a regular senior FAANG engineers. Not sure why that is bad. It's probably not the top of the world (e.g. billionaires). But it's definitely a great situation to be in.
There’s more to it than money, as the regretful WhatsApp founder showed by leaving a fortune on the table to escape
Re: Facebook establishing a venture arm to invest in startups
#95my (stupid) theory is fb/goog/youtube are now trying to help small businesses as much as possible on their platforms to drive more traffic and revenue since expansion is tapping out at some point
I don’t think that’s stupid at all. When you are as big as a small country, you legitimately do benefit from a strong, lively economy
Re: Facebook establishing a venture arm to invest in startups
#96If you were an investor in Facebook, instead of Facebook investing excess cash, wouldn't you prefer Facebook to return the excess cash to investors? Then if you agree that investing in startups is a winner, you could reinvest the cash through some venture fund? Or if you disagree and feel that there's a better use for the cash, such as investing in index funds or paying off your student loans or buying a yacht or wha…
Depends. If zuckerberg has a really great eye for potential, this might have a larger return
Re: Facebook establishing a venture arm to invest in startups
#97Earlier quoted context omitted.
That's not really insider trading. Matt Levine pops up here all the time, and one of the really distilled mantras he has: inside trading isn't about fairness , it's about theft . Like the people who track flights to speculate on M&A, or use satellite and aerial imagery to look at parking lots. Gathering information isn't a crime, in fact gathering and acting on that information is explicitly what you want at an aggre…
> track flights to speculate on M&A, or use satellite and aerial imagery to look at parking lots This is very interesting, got any source or article? Thanks edit: found this https://www.theatlantic.com/magazine/archive/2019/05/stock-v...
Here's an article about how they can look at how much oil exists via shadows cast from the sun.
Re: Facebook establishing a venture arm to invest in startups
#98Earlier quoted context omitted.
And hedge funds are uniquely positioned by having a bunch of economists and traders working for them. The point is it's not considered insider information.
Just like how CDNs are uniquely positioned with traffic data (and payment processors have spend data), right? ;)
Exactly right. What do you think they're doing with that data - acting as social altruists? :-)
Having unique data and insights you develop is not a crime - indeed it's what you specifically want. Sourcing and acting on information from inside the company you're not authorized to have is.
Re: Facebook establishing a venture arm to invest in startups
#99Earlier quoted context omitted.
Can't remember off top of my head but if I'm not mistaken, Muddy Waters Research did similar things with a listed Chinese company: went all the way to China just to fimd out that there's not much going on in those warehouses,while they were reporting record resuls.Shorted the stock,made tons of money.
Luckin coffee. Matt Levine wrote about it.
That is sort of the modus operandi for Muddy Waters, there are a few public cases like that. Given that parent talks about warehouses, it sounds to me more like the aluminum company China Zhongwang.
Re: Facebook establishing a venture arm to invest in startups
#100It's pretty interesting that FAANG doing venture capital is basically like legal insider trading. They clearly have data on web traffic, consumer usage, advertising spend, etc. that other VC firms and investors generally don't have access to. They can use this to understand entire markets, see who the incumbents are, estimate revenue/users, see who's up-and-coming, etc. Obviously within some margin of error. I wonder…
[deleted]