Hey Snackers,
A devoted Pizza Hut delivery man was tipped more than a few dollars for his decades of service: within two days, a community in Indiana raised $19K to buy him a brand new car.
Stocks closed at record highs ahead of Big Tech earnings this week. Also yesterday: CA lifted its stay-at-home order and curfew, allowing restaurants to reopen for outdoor dining.
Clubhouse raises cash at a reported $1B valuation — now it’s locking in audio influencers
In Da Club(house)... you can find more than 50 Cent. Audio-based social network Clubhouse just raised some fresh cash... at a reported $1B valuation. That's 10X its valuation in May, when the invite-only app raised $12M with just 1.5K users — now it has a whopping 2M (less #exclusive). How it works:
- It's kind of like social podcasting. Clubhouse lets you spontaneously tune into topic-themed "rooms," where members openly discuss everything from race, to TikTok marketing, to Kanye West vs. Taylor Swift.
- It's kind of filled with celebrities. But instead of just following a blue checkmark, you listen in on convos "moderated" by celebs. Like rapper 21 Savage, venture capitalist Marc Andreessen, and actress Tiffany Haddish — and if you're really lucky, Oprah.
Show me the money... Clubhouse doesn't make any (yet). But it might eventually, thanks to its hosts: in addition to humble-flexing its fundraise, Clubhouse also revealed plans to help creators get paid. Think: subscriptions, tipping, and ticket sales for exclusive talks. It's also using part of the funding to launch a Creator Grant Program, to support emerging hosts and entertainers. Later down the line, it could choose to take a cut of creators’ $$$ — or charge its own subscription.
Exclusivity builds buzz, but quality builds loyalty... Cue the Fyre Festival memes. While hype-driven FOMO might drive downloads, people won't stay if the experience falls flat. Investment in creators is key — giving them a reason to stay gives everyone else a reason to stay. That's why: Facebook paid TikTok stars to post on Instagram Reels, TikTok created a $200M fund for creators, and now... Clubhouse is rolling out cash incentives for talent.
Biden signs on "Buy American" — what it could mean for companies & the economy
We're gonna need more pens... During his first week in office, President Biden has signed a whopping 33 executive orders. The latest: an order that'll force the US government to buy more American-made products. TLDR: the order makes it harder for federal agencies to import goods and services from abroad.
- $586B: How much the federal government spent on procurement contracts in 2019. Think: tech, construction, healthcare supplies, and weapons.
- ~5%: How much of that was spent on foreign products (aka: not much).
But this is just one step... toward fulfilling Biden's “Buy American” campaign pledge: a $400B increase in government purchases of American-made goods and services. That includes more American PPE (think: gowns and masks) — which could benefit everyone from 3M to smaller manufacturers like Shawmut Corp. But it also includes massive infrastructure investments (think: roads, bridges) — which could benefit Caterpillar and John Deere.
- Sound familiar? The idea behind Biden’s “Buy American” initiative is similar to former President Trump’s “America First” policy.
- Trump slapped tariffs on $250B of Chinese goods in 2018, making them pricier to import. The "protectionist" goal: protect US businesses by nudging companies to... buy American.
Expect “American-Made” to be a priority... for the next four years. Biden said he's in no rush to remove Trump's China tariffs. Treasury Secretary Janet Yellen promised to take on China's "abusive, unfair, and illegal practice" of undercutting US companies. While China's economy grew last year (partly thanks to exports), the US economy is shrinking — and ~10M+ Americans are still unemployed. That could spark more support in DC for "Buy American" proposals.
Mobile lock company Latch is going public at a $1.5B valuation (tapping is key)
I'm latching on to you... If Disclosure's 2012 hit made you feel some type of way, this 2021 SPAC will unlock all the feels. Latch will be the first pure-play "lock stock" — it literally makes smart-locks for your door.
- Hardware: Latch's "access devices" are basically techy door handles that can be placed on any door, from your apartment to a hotel gym.
- Software: Through Latch's app, you can unlock connected doors with your smartphone, Apple Watch, or by typing a door code (lame).
SPACial relationship... Special Purpose Acquisition Companies (aka: SPACs) go public for the sole purpose of one day acquiring a real company and taking it public via marriage. In this case, a SPAC called TS Innovation Acquisitions (they always have ugh-worthy names) is snatching Latch.
- Latch gets to go public without a traditional (lengthier) IPO. Aaaand: it's snagging $450M in cash at a $1.5B valuation.
- TS Innovation gets a promising tech company. While Latch is unprofitable, it forecasts sales will nearly 3X this year and hit $877M in 2025.
The mobile-everything economy is here... From paying for coffee, to managing finances, to boarding planes, our phones are our passports for the modern world. The coronaconomy has made us even more comfortable with tapping for nearly everything — Latch wants that to include keys. So far, Latch’s products are in less than 1% of the 47M rental units in the US. But it couldn't have chosen a friendlier time to sell its contactless tech to hotels, gyms, and real-estate companies.
What else we’re Snackin’
- Action: AMC shares surged 26% after the movie theater chain snagged $917M in financing to stave off bankruptcy.
- Oilsay: Gas giant Shell is buying the UK's largest electric vehicle charging network (2.7K on-street charge points).
- Herbal: Arizona starts (legally) selling recreational marijuana, becoming the 15th US state to have broadly legalized pot.
- Vax: Moderna says its Covid-19 vaccine appears to protect against new coronavirus variants in lab tests.
- Live: Twitter and NBCUniversal launch a multi-year partnership to bring live content (like red carpets and sports highlights) to your Twitter feed.
- Fly: Delta plans to bring back 400 pilots by this summer, seeking to position itself for a rebound in travel.