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Counting down to the Reddit IPO (again)
PLUS: Feminvest's €8.8m fund to focus on female ownership...
Wishu
January 23, 2024
Using chatbots for customer service is going really well. DPD, a package delivery company based in Europe, said it has used AI-powered customer chat “successfully for a number of years,” according to a BBC story. But this week a series of screenshots showed the chatbot swearing, insulting DPD, and writing a bad, self-deprecating poem about how useless it was. The company blamed a recent update and disabled the chat to address it, the article said.
Headlines
👩💻 Remote work doesn’t seem to affect productivity, Fed study finds. San Francisco Fed economists don’t see evidence of correlation. About 30% of paid workdays were still remote as of end of 2023.
📈 A rising trend reveals that CFOs, with a growing emphasis on operational roles, are increasingly securing CEO positions at major US companies, with 8.4% making the transition last year, up from 5.8% a decade ago, showcasing a shift in the perception of CFOs from traditional number crunchers to strategic leaders.
🤖 OpenAI banned Delphi, an AI start-up, from its platform for creating Dean.Bot, a chatbot supporting Representative Dean Phillips' presidential campaign, as it violated OpenAI's new policy against political campaigning using ChatGPT; the super PAC plans to explore open-source alternatives.
Anticipating the Reddit IPO: A game-changer for consumer-focused companies…
As Circle gears up for its IPO, a major revelation hits the news — Reddit is gearing up to go public in March. However, let's set the record straight: while Reddit's IPO won't swing wide the IPO doors for tech companies, its success could shift the perception of public offerings.
Unicorn backlog (IPO window yearning to open): Aileen Lee's recent analysis unveils a staggering backlog of 532 unicorns in the U.S., with only 7% having gone public. The IPO window needs to open sooner to accommodate this backlog, bringing challenges for companies to match private-market valuations.
Reddit's dilemma (defying expectations in a crowded market): Despite Reddit's 2023 advertising revenue of $800 million, up 20% YoY, the challenge lies in beating market expectations. To be a champion IPO, Reddit must exceed the market's IPO filing expectations, potentially inspiring confidence in a market waiting for a tonic.
Beyond reddit (the quest for a market catalyst): With Instacart, Klaviyo, and Arm's IPOs not catalyzing the market as hoped, the spotlight shifts to potential game-changers. Databricks emerges as a clear contender, with its substantial size, rapid growth, and compelling AI narrative.
As we gear up for Reddit's IPO spectacle, other contenders like Shein and Circle add to the IPO fervor. Yet, the larger question remains — will these debuts be the market tonic startups have been awaiting?
Feminvest's new frontier: Bridging the ownership gap
Cracking the ownership code: Feminvest's €8.8m fund for female-led startups
When the gender equality conversation gets stuck on superficial managerial shifts, Michaela Berglund, Feminvest's CEO, calls it out. In Sweden, where only 1% of listed companies are owned by women in management, she says promoting women isn't enough — ownership is the real game-changer.
Money matters: Unpacking the capital disparity
In 2023, all-women founding teams got a measly 3% of total investments, per Atomico's report. While debates on boosting female representation in VC swirl, Berglund's focus is clear: equal access to risk-taking is the key to breaking the cycle.
"Men invest in men, and diversity will disrupt the status quo," Berglund insists, emphasizing the need for equal risk opportunities for women.
Data dilemma: Seeking proof for returns
With outdated data on returns from female-led companies, Berglund urges for fresher stats. BCG's 2018 report showing double returns is a start, but she wants more recent and robust evidence.
Despite challenges, Berglund remains optimistic, foreseeing a shift as more women lead successful companies. "The next Klarna will have a woman fronting it," she predicts.
Empowering ownership: Feminvest's move
Feminvest, known for its education platform and angel investor network, just got approval for an €8.8m fund. The catch? Women must own at least 50% at the time of Feminvest Ventures' initial investment.
Investing €175k-440k in early-stage startups, Berglund envisions this fund altering the game in female ownership. With hopes to get support from Norwegian and Swedish state funds, Feminvest sets out to redefine the startup landscape with a focus on tangible ownership.
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