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- Social Leverage Letter | Issue #33
Social Leverage Letter | Issue #33
Taking Twitter Private (Or Not), Fear Factor, the Marketplace 100, the Perfect Pitch, Managing Risk, and the Fed Put
Pete Weishaupt
April 17, 2022
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“When something is important enough, you do it even if the odds are not in your favor.”
UPFRONT
Elon Musk offers $43 billion in cash to take Twitter private
You would have to be living under a rock, or just not on Twitter that much, to not know Elon Musk put a bid in to take Twitter ($TWTR) private this week. Musk offered $54.20 in cash according to documents filed with the Securities and Exchange Commission.
Why it matters: Elon believes Twitter has the potential to be the platform for free speech around the globe, and the only way to ensure the company thrives is to take it private.
Free speech is imperative for democracy.
Twitter needs to be transformed.
"Twitter has extraordinary potential. I will unlock it." Elon wrote in the SEC filing. Yes, but Twitter has turned to the time-tested poison pill in an effort to thwart Elon.
ICYMI: An unedited conversation between Elon Musk and TED's Chris Anderson. (Recorded April 14, 2022)
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READING
The right kind of fear
Psychological safety is a factor contributing to high performance, yet it’s unhelpful to prioritize that above all else. Former Intel CEO Andy Grove believed the right kind of fear, the fear of losing, can play a productive role. It can be a powerful motivator.
The Marketplace 100
Andreessen Horowitz published its Marketplace 100 for 2022. This marks their third year releasing the Marketplace 100, a ranking of the largest consumer-facing marketplace startups and private companies. Four categories have emerged from 2021 that are worth watching: Ticketing and Experiences; Shopping and Commerce; Games; and the growing world of web3 marketplaces.
From our blog
Learn everything you need to know about creating an effective pitch. First, what is pitching and when do you use it? Second, what differentiates a good pitch from a bad pitch? And third, which pitch and when do you use it?
LISTENING:
The Tim Ferriss Show
“The idea that we want to mitigate risk to zero before we act is really common and really costly.” ~ General Stanley McChrystal
Why it matters: Building a risk immune system is critical for individuals and organizations. Risk control factors like communication, narrative, action, and bias to name a few, are all part of how well you can detect, assess, and mitigate risks.
Start with communication. There are four tests leaders and teams can use to evaluate their communication:
Can I get my message to the people I’m trying to communicate to?
Will I communicate my message?
Can the person receive and understand my message?
Is my message timely and accurate?
The bottom line: Of the ten risk control factors identified by General McChrystal, communication and leadership are the two most important. If we sense threats but can’t communicate, we are unable to do anything about it.
(Note: My former boss took issue with the podcast title saying, "You can never master risk. You can only manage it.")
Panic with Friends
Howard and Marc discuss the ‘Fed Put’ and an era of low rates that coincides with a period of phenomenal tech innovation. At the end of the day, the Fed drives interest rates and interest rates drive valuations. They also discuss the current state of private market investment values as well as the lending side of fintech, growth, and the cloud-based economy.
WATCHING:
Ferrari Monza SP1 ($RACE)
The Ferrari Monza SP1 is a limited production single-seat sports car. The Monza’s design is inspired by the 750 Monza, 250 Testarossa, and the 166 MM. Production is reportedly limited to 499 units.
Details: The SP1 is a single-seat, carbon fiber speedster. And thank God for that. No obnoxious passengers to pacify; and no, you can’t drive mine! The SP1 doesn’t have a windshield and instead relies on Ferrari’s patented “Virtual Windshield” which deviates airflow away from the driver. The car is inspired by early, post-war Ferrari race cars. Ferrari Styling Centre was awarded the Compasso d’Oro industrial design award for the Monza SP1 in 2020.
The engine is a naturally aspirated 6.5L V12 generating 799 hp at 8,500 rpm and 530 lb-ft of torque at 7,000 rpm
Watch Demented Doug DeMuro, aka “Triple D” (that’s my nickname for him) do a good job reviewing the Monza SP1, along with taking a drive to show viewers what it’s like behind the wheel. And maybe we can get portfolio company (Fund III) Rally to buy one?
WHAT WE'RE READING
Here's what caught our eye over the past week.
Abbott: I will do all I can to keep SpaceX at Boca Chica
U.S. Inflation Quickens to 8.5%, Ratcheting Up Pressure on Fed
Why CFOs should take the lead on remote working
Off The Field, Jackie Robinson Left A Legacy Of Black Entrepreneurship
How to avert a branding identity crisis
JOB BOARD
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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.
