The Middle and Upper Classes Take Over the NBA Draft and Where Venture Capital Lives
Stretch Four Volume 59
Happy Monday,
Welcome to this week's edition of the Stretch Four Newsletter, number 59. I hope everyone is ready for a great week as it is now officially the summer time. I spent most of my time last week attending the OnRamp Insurance Conference in the Twin Cities (Minneapolis/Saint Paul). I presented what we've been working on at ModernTax and hosted a panel on embedded insurance with representatives from State Farm and SwissRe.
While in town, I also had the chance to explore and catch a Twins game. As someone who loves Midwest cities in the summertime, I can say that I'm definitely a bigger fan of Minneapolis over Saint Paul after visiting.
This week's highlights:
A recent chart by Carta on "Where Venture Capital Lives"
An excerpt from a book I have been reading, “It's Not TV: The Spectacular Rise, Revolution, and Future of HBO”
Some interesting tweets from the NBA draft and how the sport has become much more suitable for middle to upper-class families
I also highlight some recent work and upcoming events as well as offer insights on books, articles, and interviews that I found thought-provoking. Let's jump in!
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My work
Episode 014: Episode 014: Mistral AI's $130M seed round, the importance of reference customers, and interview with PostHog founder James Hawkins. (Apple, Spotify)
In last week's podcast episode, the focus was on Mistral AI's $133 million seed round, and the host discussed why he thought it was a smart move by the founders despite taking over 40% dilution. I also talked about the value of solid reference clients and how not having them in mind can hurt you in the long run. The episode ended with an interview with James Hawkins, CEO at PostHog and blogger at CEO Diaries.
Some pieces that you can pair with the episode are:
A.I. company raises a record $113 million just a month after being found—despite having no product and only just hiring staff (link)
CEO diary: The things I learned in 2022 (link)
Quote of the week
I’m reading a book on the history of HBO and this excerpt shows the early, early days of what we now know as HBO and most recently rebranded to Max. The book is a riveting display of the long road the company has had to become what it is today.
On November 8, 1972, HBO made its debut for some 375 subscribers in the small town of Wilkes-Barre, Pennsylvania. A year after launching, HBO had roughly ten thousand subscribers. “Very demoralizing,” Levin said. “We started giving away free turkeys at Thanksgiving. Did everything we could.” - It's Not TV: The Spectacular Rise, Revolution, and Future of HBO
Chart of the week
The Bay Area market is opening up a bit, and with the fall coming, things are expected to get very busy starting in August when all the main venture funds return from the Yellowstone Club, Hawaii, and Cabo. According to a recent chart by Carta on "Where Venture Capital Lives," the Bay Area is still a major hub for venture capital, with over $60 billion in funding raised in 2022 alone. With the Bay Area expected to be as active as ever in the fall of 2023, founders are encouraged to get their pitch decks ready and sprinkle in some AI to stand out from the competition.
Tweet of the Week
https://twitter.com/seyitaylor/status/1672694802691784705?s=20
The NBA has become a sport for middle to upper-class guys more than ever in the US. This was apparent during this past week’s NBA Draft, where many stories of parents and their children's path to the NBA were highlighted. One story was about the Thompson twins, who were the first-ever brothers to be drafted back-to-back in the draft at 4 and 5 respectively. Another story that went viral was about a Santa Clara star who was drafted by the Warriors at 19. These stories support the idea that a path of wealth is being legitimized and that the middle and upper middle class are preparing their children for it.
Plugs
As always, if you are looking for access to better business and finance information on non-pubic entities please check out ModernTax.
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Final Thoughts
As we wrap up this week's edition of the Stretch Four Newsletter, I wanted to share some upcoming events and travel plans. I am excited to be getting out of San Francisco for the 4th of July with some friends in wine country and also considering a day trip to Vegas for the NBA Summer League. Later in July, I’ll be taking a trip back to North Carolina to visit my family and check out the Charlotte FC team for the first time. Finally, I will be kicking off August in Milwaukee, WI so stay tuned for updates on my travels and adventures.
That's it for this week's newsletter. As always, please be sure to subscribe and share with your friends and colleagues. And if you have any feedback or suggestions for future topics or guests, please don't hesitate to reach out. Have a great week, and I'll see you next week.