💵The Bulletin #55: The Fed's Big Rate Cut, CEOs pledging support for Harris, and We're Recruiting!
Welcome back! In this week's bulletin -- The Fed cuts interest rates by half a percentage point, recent polling reveals that CEOs expect Harris to beat Trump, and a peek into our recruitment process🙌
Hey there! Welcome back to The Bulletin :) I hope summer has been a restful time for you, and that everything (school, relationships, hobbies, passions) is slowly falling into place.
💡For this semester, keep up with our content if you’re interested in:
Demystifying & breaking into VC
Finding opportunities in the start-up world
Keeping up with VC investment news at Brown & beyond (pro tip: this is essential to breaking in and finding opportunities)
Enjoy The Bulletin!🥳
The Fed’s Big Rate Cut
On September 18, the Fed cut interest rates for the first time in four years. Here’s a quick break down of everything you should know:
🏦What Happened?
The Federal Reserve cut interest rates by 0.5%—double the usual quarter-point cut. This unexpected move has had major implications for the U.S. economy, markets, and politics.
What was the goal? Boost household finances, protect jobs, and prevent a recession. Although the Chair of the Federal Reserve, Jerome Powell, did not explicitly reference a “soft landing”, Fed officials remain hopeful that they might be able to pull it off and put the economy on a healthy and sustainable track without causing a recession.
🚀Market Reactions
Stocks soared: The S&P 500 jumped 1.7%, reaching record highs, while the Dow Jones rose 1.3%.
Bonds and cryptocurrencies also gained, signaling that investors are feeling optimistic.
The real estate and consumer discretionary sectors—areas that benefit from lower interest rates—are seeing big gains.
🌍Global Impact
International markets cheered as well. Europe’s Stoxx 600 had its best day in over a month, while Japan’s Nikkei 225 rose over 2%.
The U.S. dollar weakened by 5% since end June, easing pressure on global currencies and boosting trade prospects.
⚡Risks to Watch:
While markets are up, there are risks ahead. Stock valuations are high, and upcoming corporate earnings will need to be strong to maintain momentum.
Geopolitical uncertainty, the upcoming U.S. election, and a slower labor market could pose challenges in the months ahead.
⏭️What’s Next?
More rate cuts could be on the horizon, with futures markets expecting two more quarter-point cuts this year. However, the Fed has signaled no more “jumbo” cuts are expected soon.
Fed officials forecast that interest rates will fall to around 3.4% by next year, from the current 4.9%.
The Fed’s bold move is lifting markets and improving financial conditions—but it’s not without risks. Investors are watching closely to see how this impacts growth and stability over the next few months. Stay tuned!
👩💼Growing Support For Harris Among CEOs
With the 2024 election approaching, a growing number of business and tech leaders are throwing their support behind Vice President Kamala Harris over former President Donald Trump. This includes high-profile endorsements from Silicon Valley and beyond, showing a shift in political dynamics within the business community.
🗝️Key Endorsements From Business Giants
Over 100 Silicon Valley investors and 88 corporate leaders have publicly endorsed Harris for President, showcasing strong backing from some of the biggest names in business and tech. This movement is seen as a direct counter to the rising influence of conservative voices in the tech world, such as Elon Musk and Marc Andreessen, who have aligned themselves with Trump.
Notable Names Supporting Harris:
Reid Hoffman – LinkedIn Founder
Jeffrey Katzenberg – Forman Chairman of Walt Disney Studios
Mark Cuban – Entrepreneur and Investor
Ron Conway – Angel Investor
James Murdoch – Former CEO, 21st Century Fox
Indra Nooyi – Former CEO, PepsiCo
Magic Johnson – NBA Hall of Famer & Businessman
💼Why Some Business Leaders Are Backing Harris
As reported in The New York Times’ DealBook, a recent poll conducted by Jeff Sonnenfeld of the Yale School of Management revealed that 80% of business leaders expect Harris to win the 2024 election. This is part of a broader trend of CEOs distancing themselves from traditionally supporting Republican candidates, particularly in light of Trump’s rhetoric.
Key concerns among executives include:
Hate Speech and Violence: 68% strongly agree that hate speech is inciting violence in the U.S., and 87% believe Trump should apologize for spreading false rumors about Haitian immigrants.
Economic Optimism: 84% of respondents believe the U.S. economy is on track for a soft landing, despite challenges in the labor market.
Trade and Tariffs: 42% support tariffs to protect U.S. industries from foreign competition.
As the 2024 race tightens, Kamala Harris is gaining significant momentum with the backing of the business community. Nevertheless, Trump's support remains strong among conservative tech figures. This growing divide in the business world underscores the high stakes of the 2024 election—an election where business, technology, and politics are more intertwined than ever.
🚀Recruitment Kicks Off For VWV’s Largest Cohort Yet
We’ve officially started recruitment for our newest—and largest—cohort! The application form closed last Friday, and we want to thank everyone for their interest.
We will be reaching out today to schedule first-round interviews for shortlisted applicants, so please check your inbox :) We’re excited to meet you during the upcoming interviews!
Here’s what you need to know:
VWV isn’t looking for prior industry experience or specific technical skills.
What matters most is that you’re motivated, enthusiastic, and eager to bring your unique perspective.
We value members who are ready to learn from Day 1 and contribute to our dynamic team!
To give you a glimpse of what it’s like to be part of VWV, we’d love to walk you through the process of a diligence—
(💌Shoutout to Julie Qian ‘24 for putting this together)
🛣️The VWV diligence process
1️⃣ First Phase
First call with founder: Typically, a solo associate gets to know a startup by asking questions to the founder
Pitching to the VWV team: If it captures the associate’s attention, they have the opportunity to pitch reasons they love the start-up during our weekly Pipe meeting
The rest of the team grills in with more questions, bringing up possible concerns or additional reasons they’re particularly bullish. Gauging general team interest, we either table the conversation & follow up with the founder in a few months or dive into the following steps.
2️⃣ Second Phase
Second call with founder: The associate brings on a diligence team, ranging 2-4 associates, to ask follow up questions that were brought about during Pipe
Investor reference call: We’re put in touch with a current investor through the founder to understand their investment decision
Customer reference call: We’re put in touch with an current or previous user through the founder to understand their experience using the product/service
Advisor reference call: We speak with one of our advisors that knows the most about the industry for additional guidance
Additional research: Primary or secondary sources to back up our understanding of the market landscape, how investing works for that segmentation, and anything else that is uniquely crucial to thinking critically of the start-up
Third call with founder: Only if necessary*
Initial pitch deck feedback: We send out the initial pitch deck!
3️⃣ Third Phase
Deck feedback implementation: Revising the deck based on feedback
Pitching to IC: Our IC now have the opportunity to grill us with questions and holds an internal voting on the investment
Hope this snippet of what the diligence process sheds some light on what VWV does! We can’t wait to meet you.❣️
💻We’re Updating Our Website
We love our website, and want to make sure it is accurate and up-to-date. Please let us know through this form if you are a part of the VWV team (Investment Committee, Advisors, Alumni) and have changes you wish to make to your personal profile.
Thank you! 💗
🍅What We’re Consuming In Venture
🤖This news article in The Wall Street Journal on how how AI is really a feature in other products at this stage.
💴This article by Jonathon Sine on the China’s local government financing vehicles.
🤳A special report from The Economist on how America is becoming “less woke”.
🐐Re-listening to Hamdi Ulukaya’s story on How I Built This with Guy Raz.
That’s it for this week, feel free to email me at zyn_yee_ang@brown.edu with any inquiries!
✨ Follow us:
Instagram: @vanwickleventures
Twitter: @VanWickleV