Happy Friday! In today's show, we're diving into some fascinating developments that go far beyond the sports arena. From China's new e-commerce billionaire to the mass exodus of car YouTubers, there's a lot to unpack. For more: The Founder's Fundraising Blueprint: From Cold Email to $1M in 60 Days | Yesterday’s Show On The Olympics | Youtube
First, a quick note to car YouTubers everywhere: We see you. We hear you. And we're wondering... couldn't you have stuck it out with the private equity folks just a little longer?
I mean, who doesn't love a good boardroom battle royale?
Jokes aside, today's memo is all about China's new e-commerce emperor, the great car YouTube exodus, and why your late-night scrolling habit is making some people very, very rich. Let's get into it.
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The $48 Billion Fast Fashion Empire
Move over, Jack Ma. There's a new richest person in China, and he's selling $5 dresses faster than you can say "add to cart." Colin Huang, founder of Pinduoduo and Temu, has rocketed to the top of Bloomberg's Billionaire Index with a cool $48.6 billion fortune.
But here's the kicker – Huang's empire is built on the foundation of ultra-fast fashion, a trend that's as controversial as it is profitable. While Temu ads flood your TikTok feed, environmental activists are sounding the alarm. It's the ultimate clash of convenience versus conscience, playing out in your shopping cart.
The Great Car YouTube Exodus
Remember when watching car reviews on YouTube was just about, well, cars? Those days are over. Tim Stevens at The Verge dropped a bombshell article detailing why your favorite automotive YouTubers are leaving their channels faster than ever.
The culprit? Good old private equity. Channels like Donut Media, Car Throttle, and Hoonigan are being snapped up faster than limited-edition Ferraris. But instead of revving up creativity, these acquisitions are putting the brakes on experimental content.
It's "churn out hits or hit the road" – and many creators are choosing the latter.
This exodus raises some serious questions about the future of YouTube's creator economy. Can authenticity survive in a world driven by algorithms and quarterly reports? Stay tuned, because this ride is far from over.
Speaking of online businesses changing hands, have you considered selling yours? Flippa makes it easy to sell online businesses and digital assets. Get a free valuation today and see what your online venture might be worth.
The Price of Your Attention
Ever wonder why that fascia scraper (yes, that's a thing) costs $110 on Instagram but only $20 on Amazon? Sam Lessin, former Facebook employee and current VC extraordinaire, has the answer – and it's all about the "Price of Intent."
In today's digital economy, attention is often more valuable than the product itself.
In a world where your attention is the hottest commodity, companies are willing to pay a premium just to catch your eye. That late-night doom-scrolling session? It's worth more than you think. This explains why Google and Meta are money-printing machines – they've mastered the art of serving the right ad at the right time.
So next time you're mindlessly tapping through stories at 2 AM, remember: your attention is gold, and everyone's trying to mine it.
VC Trends & Recession Whispers
Good news for founders – global VC funding hit $23 billion in July, up 20% from last year. The bad news? Those pesky recession fears are still lurking in the shadows.
What does this mean for you, dear founder? A few things:
1. There's still money out there if you've got the goods.
2. Growth is king, but don't burn cash like it's going out of style. My new model is to spend 10-25% of what you raise every 18 months. This forces you to get to revenue quicker but also gives you the ability to have an extended runway and lets you know how much you need to make it.
3. Have a "rainy day" plan – because in tech, it always rains eventually.
Before we wrap up, a quick Elon Musk update (because is any tech news complete without one?): He's playing musical chairs with Tesla and X.ai talent, and Twitter's San Francisco exodus is in full swing, kind of a sad day, that location is always nostalgic for me I pretty much lived out of that SF Fitness, Blue Bottle, and market when I moved to SF in 2017.
That's all for today's memo. Remember, in the world of tech and business, the only constant is change – and maybe Snoop Dogg's ability to stay relevant and make $500,000 a day at the Olympics.
Stay curious,
Matt Parker
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