Social Leverage Letter | Issue #44

Race to the Bottom, Remote Hiring on the Rise, Embracing Data to Make Smarter Decisions, and Staying in the Game

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UPFRONT

It's going down, it's going timber...

BNPL giant Klarna is raising a new round, mostly from existing investors, which reportedly has the company valued at around $6.5 billion – about 1/7 of the $45.6 billion the company was valued at in their last round in June of 2021.

Not to be outdone in the race to the bottom, rumors circulated BlockFi was being acquired by FTX for $25 million...

The rumors where put to rest at the speed of Twitter... Turns out the buyout could be as high as $240 million, based on performance triggers. After having raised nearly $1.2 billion in venture funding, BlockFi was reportedly valued at nearly $5 billion just last year. 

READING 

Remote hires now represent 62% of new hires so far this year. A majority of companies are taking employee location into consideration when deciding on compensation. Engineers continue to be key hires – accounting for nearly half of payroll at companies valued between $1 and $10 million. According to Carta’s data, terminations are on the rise, with 29% of them involuntary – nearly double the involuntary terminations recorded in August of 2021.

NFTs Have ‘Fallen Off the Cliff’ as Sales Sink to Lowest Levels in a Year: Sales have plunged to below the $1 billion mark he JPG NFT Index is down by about 70% since its April launch.

WHAT ELSE WE'RE READING

Here's a few other stories that caught our eye over the past week.

LISTENING

Managing partner Howard Lindzon sat down with Social Leverage GP Matt Ober to talk data and tech. Matt is based out of New York City, which gives us boots on the ground in a very important tech city. He’s also started his own company in the Web 3 sector, which is covered in the conversation.

Matt Ober of Social Leverage on Embracing Data, Information, and Technology to Make Smarter Decisions (EP.208)

Listen to this episode from Panic with Friends - Howard Lindzon on Spotify. Today’s guest, Matt Ober, is a really good friend of mine. We laugh about everything – but now we’re laughing on the same team, which is the best. Matt joined Social Leverage as a GP a few months ago – and he’s the upgrade we’ve needed to think about the future as the surface of tech continues to expand. Matt was most recently the Chief Data Scientist at Third Point. Prior to that he was head of Data Strategy at WorldQuant and part of the WorldQuant Ventures founding team focused on private investments. Matt is based out of New York City, which gives us boots on the ground there as the web evolves into the next web. He’s also started his own company, which we talk a little bit about; I’m always excited to have people on our team who have companies – it keeps the entrepreneurial juices flowing. Matt is wicked smart and knows the business. We overachieved by bringing him on board. He’s got all the gifts – he knows how to be social, and how to ask the right questions.  Guest - Matt Ober, General Partner at Social Leverage   howardlindzon.com, socialleverage.com  Twitter: @howardlindzon, @PanicwFriends, @obermattj, @knutjensen  linkedin.com/in/matt-ober-caia-b2469214 #fintech #invest #investment #venturecapital #stockmarket #finance  Show Notes:  Introduction. (00:39) Welcome Matt. (05:19) Working with Social Leverage (06:41) Starting out at Bloomberg (07:18) Responding to a Craigslist ad (08:07) No information overload, only filter failure (09:33) Learning the startup business (11:07) Good rabbit holes and bad rabbit holes (12:40) Working with Dan Loeb at Third Point (13:51) Getting into crypto (15:12) Why crypto is enticing to smart people (17:02) Matt's startup (18:01) Consistent returns on the quant side (21:19) More freedom with a smaller firm (23:00) Concentration v. 1,000s of positions (24:17) Geography matters less now (25:02) Leveraging web3 to build the future (25:20) Talent migration (27:02) The next generation of digital natives (27:15) Staying connected by disconnecting (28:04) What Matt reads to stay ahead (30:27) It's data, content, filters, and your network (33:29) Wrapping up (35:06) Closing thoughts. (39:44) 

Howard sat down with Bobby Kraft of Planet MicroCap to talk about staying in the game, his criteria for new investments, and his thoughts on the current state of public and private financial markets. 

WHAT ELSE WE'RE LISTENING TO

A few more podcasts you might like: 

DEAL FLOW

The latest venture funding from around the globe:

CRYPTO CORNER

News on Crypto/web3:

JOB BOARD

Explore openings at our portfolio companies: 

Featured Jobs:

Check out all of our portfolio companies at Social Leverage.

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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.