What does it mean to run a disciplined startup in an undisciplined market? A famous quote (often credited to Buffett) comes to mind: “In the short-run, the stock market is a voting machine. Yet, in the long-run, it is a weighing machine.” Today’s market for startup financing is operating like a voting machine. Why is…
Category: Economics
Robinhood: Elon Musk, bad incentives, and the solve (and ok, let’s throw in blockchain)
Ok, Elon Musk was right Robinhood has always had to thread the needle between a populous mission to upend the establishment ($0 trades for everyone!) and running a real business (enough revenue and growth to successfully take the company public). So what’s the answer? Unfortunately, it’s what Elon Musk was alluding to on Sunday night…
In Times of Froth, Choose Your Venture Investors Wisely
History doesn’t repeat itself, but it certainly rhymes—or so the saying goes. For entrepreneurs, I believe 2021 and the years to come will rhyme with 2007. Froth Rhymes In 2007, I worked in leveraged finance at a top Wall Street investment bank. When I started my job, it was so busy that I could barely…