No. 239 – Monday Reads

Source: Scott Galloway

Black-Owned Businesses Could Face Hurdles in Federal Aid Program – “This roughly $68 billion will only begin to address the disparities within capitalism brought into relief by coronavirus…By prioritizing clients that already have existing lines of credit, black businesses and nonprofits find themselves yet again excluded from live-saving relief.”

Earl G. Graves Sr., a Voice for Black Entrepreneurs, Dies at 85 – “The white-dominated business world needs to understand that we don’t want charity. We want to do business. We don’t want guaranteed success. We want the opportunity to earn it.”

World’s Biggest Maker of Sneakers Asked to Halt Vietnam Operations – “The group produces over 300 million pairs of shoes per annum, it said on its website, accounting for approximately 20% of the combined wholesale value of the global branded athletic and casual footwear market.”

Capitalists or Cronyists? – “Modern-day “capitalism” in America is to flatten the risk curve for people who already have money, by borrowing from future generations with debt-fueled bailouts for companies. We have consciously decided to reduce the downside for the wealthy, thereby limiting the upside for future generations.”

Zoom Bombing a High School Class – “Learning from your own mistakes and experiences is a good skill. Many people make the same mistakes over and over again. But learning from other people’s mistakes or experiences is a great skill of immense power. It’s rare. Cultivate it.”

No. 194: Zoom | Sony Gets in the Ride-Share Game | Can’t Be a One-Trick Pony

Zoom, Zoom, Zoom! The Exclusive Inside Story Of The New Billionaire Behind Tech’s Hottest IPO

While reading this piece, all I could think about was how different Zoom was from other Silicon Valley unicorns-turned public companies that are more well-known. The company registered to go public with a profit after having already turned a profit. Contrast that with companies like Uber which has had one profitable quarter and is pushing for a $120B valuation at its upcoming IPO.

Apparently, the CEO Eric Yuan reimburses the company even for smaller expenses like swag. Contrast that with Evan Spiegel who recorded $900k in security costs when Snap filed to go public. Yuan recorded no other compensation from Zoom, granted Snap was/is a cultural phenomenon and Zoom is far from that.

Further, there’s so much talk about the mercenary culture in Silicon Valley and how startups need to have all sorts of perks in order to retain talent. I’d be really interested to hear what it was about Zoom that enabled it to grow to 1,700 employees despite not having the flashiest office space.

The startup world has built this calculus around growth trumping profitability. Zoom seems to knock against that. I look forward to seeing how it’s IPO impacts the culture across the valley, particularly with its newly minted set of millionaire employees investing some of their capital in fledgling startups.

Sony becomes Uber’s newest rival in Japan

This can’t be too exciting a development for Japanese e-commerce Rakuten, also the largest investor in newly public Lyft. Rakuten’s CEO Hiroshi Mikitani has talked about his company’s investment in Lyft as more research than competitive move, but with a nearly $3B stake in the company they have got to be itching for Lyft to expand beyond the U.S. and the few Canadian cities where it operates.

It’s time to rethink oil and gas as a funding source for development

The extent to which resource-rich African countries are still placing their bets on oil and gas being the primary driver of their countries’ development induces anxiety. Kurt Davis does an effective job providing cases on Angola, Sudan, South Sudan, Angola, Mozambique, and Tanzania and how they’re probably going to find themselves stuck with their current approach to meeting their budgets and developing their countries. He goes on to map out how the thinking of policymakers needs to shift in order for these sort of countries to begin diversifying their economies. As I think about the rapid changes in technology and how software is driving so much change in how the world works, I really hope policymakers wake up.