Ex-WeWork CEO returns 👀
All eyes on Adam Neumann
Gm. No way out but hodl 😭
Welcome to Issue 12 of The Quest Digest, where we break down Silicon Valley news for you every week, in 3 minutes.
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WeWork Ex-CEO Adam Neumann returns
Controversial WeWork founder, Adam Neumann, has recently launched startup, Flowcarbon. The startup, started by Neumann, his spouse – Rebekah, CEO Dana Gibber, and two others, Caroline Klatt and Ilan Stern has now raised $70 million in funding led by Andreessen Horowitz.
The company’s protocol sells tokenised carbon credits on the blockchain to companies looking to reduce their carbon footprint. Credits can be traded on crypto exchanges.
Our Take
Despite the controversy, it’s hard to say whether Adam will influence Flowcarbon’s operation in a WeWork’s style collapse, given him not being CEO.
That being said, the company is entering a crowded space with many startups jumping on the regenerative finance (ReFi) band wagon which plan to leverage blockchain technology to solve sustainability issues. Some examples of such projects include Toucan, Regen, Moss, and KlimaDAO.
Crypto cash
Amid turmoils in the markets, crypto has seen big funds being raised for investment into the space.
Here’s the go:
Andreessen Horowitz announced a $4.3B fund, 2x the size of its last fund. It is led by longtime GP, Chris Dixon. One-third of the fund will be earmarked for seed deals.
As well as this, a group of former Binance executives created a $100M fund, named Old Fashion Research – focused on the metaverse and bringing crypto adoption to Latin America, and Africa.
Our Take
At the same time these announcements were made, investors have pulled out $143M from digital assets funds during the week through May 20.
Confidence in crypto has been flailing given both retail and institutional investors that got into crypto in 2020-21 are in the red.
For long-time evangelists of crypto, starting a fund has never been at such a discount – with cheaper and lower valuations occurring during the market downturn, and a lot of overhyped companies getting popped by the bubble.
Sequoia Capital’s presentation to portfolio companies
As Sequoia has done in the past during times of turbulence (R.I.P. The Good Times in 2008, and Black Swan in 2020), the venture firm has released another long-form memo to portfolio and partner companies.
Here are our biggest takeaways:
Those that survive will be the ones that move the quickest and have the most runway
Don’t view cuts as a negative, but as a way to conserve cash and run faster
Ask what you would do if you have just 6 months of cash left. What would you focus on? Get that focus now regardless of how much is in the bank
Talent is ripe for the picking. All the FAANGs have frozen hiring
Courage is a decision, so choose courage and confront reality. Whatever we are facing today, it can’t be worse than the uncertainty at the start of the pandemic
Start with why, reaffirm the mission, and showcase your leadership. Ask for your team’s commitment… or politely ask them to lighten the boat
Track sales, metrics, and cash daily. What gets measured gets managed.
Create financial degrees of freedom: Earn more from users, improve your unit economics, cut excess, if necessary raise debt or equity
Managing change is everyone’s job. As a leader: It’s your personal assignment
The best, most ambitious, and most determined will use this moment to rise to the occasion and build something remarkable – there is opportunity ahead.
🔥 Press Worthy
Oh $SNAP – Snapchat’s shares fall nearly 40%, company to miss revenue goals
Uber hits 1 billion rides in Africa
Netflix rolls out 4 more games on platform
Bumble looks to expand outside online dating with communities feature
Kim Kardashian steps in as Beyond Meat’s first chief taste consultant
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The Quest Digest is written by Hannah Ahn and edited by Brent Liang, two dropouts who hate long tech newsletters. You can sign up to our next issue below.