Get smarter than your boss in 5 minutes with today's business news.
Happy Monday, Flux fam!
Here's everything you need to know today - in under 3 minutes.
🚗Aussie customer research start-up Dovetail raises $89 million
🎬Peloton shares sink - again
🥤New laws seeking to rein in Big Tech are headed to the US Senate
Famous quarterback and seven-time Super Bowl champ Tom Brady’s NFT startup Autograph has just raised a massive $236 million in new funding. Prepare your wallets for the influx of sport celeb-themed NFTs.
Background: Dovetail is a Sydney-based startup that launched back in 2017. They produce data analysis software to help businesses interpret survey responses, user feedback and interviews.
What happened: The founders were early employees at Atlassian (ya know, real good pedigree). Now, they've just raised $89 million, valuing the company at a huge $960 million.
What else: But according to the founders (post capital raise), venture capital might be heading into bubble territory.
💡A bubble is an economic cycle where company market values increase quickly...only to crash, or 'burst' even quicker.
💡There are generally five stages to a bubble. We've got:
💡Dovetail founders believe venture capital is currently in the Euphoria stage...which means we're not too far from a 'burst' - aka funds could dry up for other start-ups seeking funding.
Background: Peloton are the exercise equipment company behind those exxy exercise bikes every celeb has (Lizzo, Venus Williams...even Joe Biden).
What happened: During the pandemic, Peloton took off because gyms were forced to close. In fact, their share price rose around 725% between March and December 2020.
What else: But now, shares are tracking 85% lower than their peak. But that's not all...internal docs show Peloton is pausing production of its main stationary bikes and its treadmills, because there just isn't enough demand.
💡The days of companies booming off the pandemic might be behind us. And we're not just talking fitness companies. It's all companies in all industries.
💡COVID-19 saw a tonne of restrictions and lockdowns around the world, and this changed the way we lived and worked. While some businesses suffered (i.e. retail and hospo), others killed it.
💡But now, the pandemic shine has kinda worn off. And Peloton...well, we know that story. But it might mean there's a Peloton discount coming to your hot little hands before you expected it.
Background: US regulators - and in fact, regulators all around the world - have been trying to rein in big tech's power for years now. Remember when Australia forced tech companies to pay Aussie publishers?
What happened: Now, the US has put forward a new bill targeting companies that are 'self-preferencing'. AKA, when big tech companies favour their own services in a way that's anti-competitive.
What else: The EU have also recently passed a law that requires big tech companies to police content...so is this the year big tech finally meets it regulatory match?
💡We've known for many years that big tech companies are getting too big for their own gigantic boots. But 2022 may be the year that regulators finally tighten their grip.
💡So far, big tech have gotten away with breaking competition laws, and paying minuscule fines (relates to their revenues), but last year, tensions hit a boiling point
💡If this new legislation passes, it would completely change the way these companies operate. And, it could mean for smaller tech companies...it's their time to shine. Grab ya popcorn, Flux fam. This is gonna be interesting.
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