The Bulletin #45: Big Tech Shines In Earnings Season, Alums Achieve Startup Success, and A Great Start To Our VWV GISP!
In this week's bulletin-- Big Tech gets a lift from AI and cost cuts, Brown startups closing amazing deals, and a look into our first class of the GISP!
Hey everyone, welcome back🌟Hope you all had a great winter break, and are ready for a new semester with The Bulletin!💖
💡Big Tech Shines in Earnings Season
In a week of contrasts for Big Tech, Mark Zuckerberg of Meta faced scrutiny on Capitol Hill, publicly apologizing for online abuse incidents. However, the company swiftly shifted gears as its latest earnings report revealed a remarkable surge, emblematic of a broader trend in the tech industry.
🤖Meta's Triumph with A.I. and Efficiency
Meta, the parent company of Facebook and Instagram, delivered stellar fourth-quarter profits, tripling from the previous year. A key driver of this success was attributed to the effective implementation of artificial intelligence in its core advertising business. Additionally, the company executed significant cost-cutting measures, including substantial layoffs, as part of its self-described "year of efficiency." This dual strategy catapulted Meta's profits to unprecedented heights.
The substantial profitability prompted Meta to announce groundbreaking initiatives, such as paying stock dividends for the first time, potentially reaching $700 million annually for Mark Zuckerberg alone. This move, coupled with a $50 billion buyback, signifies Meta's evolution and maturation in the tech industry, aligning it with stalwarts like Microsoft and Apple in regular payouts to investors.
Mark Zuckerberg, in an earnings call, affirmed Meta's commitment to further investment in A.I., pledging aggressive expansion in this domain. While the company declared the conclusion of its cost-cutting phase, analysts are keen to see Meta demonstrate a tangible return on its significant spending.
☁️Amazon's Embrace of A.I. and Cloud Computing
Amazon, another tech giant, echoed the trend with a focus on A.I. initiatives. The earnings call highlighted Rufus, a new smart assistant designed to enhance the shopping experience and potentially reduce ad spending on competitors like Google and social media platforms. As Amazon strives to assert its position in the A.I. landscape, it reported steady growth in cloud computing, serving as a proxy for A.I. services to corporate clients.
Although the 13 percent growth in Amazon's cloud computing division met analysts' expectations, it falls short of the robust growth reported by counterparts at Microsoft and Google, intensifying the competitive landscape in the A.I. realm.
🍎Apple Stays Resilient Amid Challenges
Apple, amid concerns about slowing revenue growth in China, demonstrated resilience in its latest earnings report. Sales growth rebounded with a 2 percent increase in the quarter, powered by robust sales of iPhones and services like Apple Music. However, Apple faced market scrutiny in after-hours trading as investors expressed apprehension over its performance in China, where resurgent competition from Huawei and economic challenges pose threats.
Apple's CEO, Tim Cook, hinted at the company's foray into A.I. initiatives, addressing concerns about potential delays. Despite a lacklustre introduction of its new product, Vision Reality Pro, Apple remains optimistic about the opportunities in generative A.I. and artificial intelligence.
Big Tech's recent successes underscore the pivotal role of artificial intelligence and strategic cost-cutting in driving financial performance. Meta's exemplary quarter, Amazon's focus on A.I. innovation, and Apple's resilience amid challenges collectively highlight the industry's trajectory toward technological advancements and financial prosperity. Read more here. 📈
🐻Brown Alums Achieve Startup Success
It’s been a great season for Brunonian startups, with our alums closing impressive deals. Here’s a shoutout to these incredible feats 📢
Owner.com just raised a $33M Series B, with a $200M post-money val.
Co-founder and CTO Dean Bloembergen concentrated in Computer Science and graduated from Brown in 2018. Their cap table features names you may recognise, such as Dylan Field (CEO and Co-Founder of Figma), Kimbal Musk (Restauranteur, and brother of Elon), and Naval Ravikant (Co-Founder and former CEO of AngelList)
Fishwife’s (a VWV port-co!) Becca Milstein appeared on Shark Tank, and closed a sweet deal with Guest Shark Candace Nelson and Shark Lori Greiner. The deal was $350k for a 6% stake and 2% in advisory shares, and the three women celebrated the deal with a joyous hug💗
We are so proud of these companies, and can’t wait to see more Brunonians achieve success with their businesses! VWV is committed to adding value to Brown’s entrepreneurial ecosystem, so reach out if you have an exciting venture you’d like to share with us🌟
🧑🏫A Great Start to the VWV GISP
The start of shopping period last week marked the first class of our VWV GISP — From Shark Tank to Sequoia: The World of Venture Capital! Taught by Co-Directors Cecile Tang and Ben Piekarz, and sponsored by Professor Emeritus Barrett Hazeltine, our GISP aims to demystify the opaque world of venture capital (VC) and democratize access to the industry.
Although many have been exposed to the concept of VC through popular shows such as Shark Tank, venture firms such as Sequoia, Andreessen Horowitz, and Greylock are often seen as part of a black box industry reserved for a select few who are uniquely positioned to enter the venture world, due to their background in economics or experiences in adjacent and well known industries such as investment banking.
Designed for students from all semester levels and backgrounds, our course aims to:
Explore the origins and evolution of venture capital and its current role in private capital markets, as well as other methods of funding innovation.
Introduce theoretical and empirical methods for evaluating startups.
Emphasize the importance of leveraging diverse perspectives in investment and startup decision-making.
We are so grateful for the interest shown in our GISP, and have received an overwhelming 70+ applications for 10 spots in the class. Here are a few pictures from last Wednesday!
🍇What We’re Consuming in Venture
💻Andrew Chen (a16z partner's) breakdown of how to evaluate early-stage companies on their metrics
🐤Tweets (are they still called tweets?) by Peter Berg, Managing Partner at m12 (Microsoft's Venture Arm)
🎙️This interview on the LaBossierre Podcast with Jeff Morris Jr, MP at Chapter One Ventures
Paper Belt on Fire, a book by Michael Gibson on the founding of the 1517 Fund
That’s it for this week, feel free to email me at zyn_yee_ang@brown.edu with any inquiries!
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