A Week of Unusual Deals on Equity
This week on Equity, we’ve got some deals that are unusual for a few reasons – some good, some… well, we’ll find out.
Story Raises $80 Million to Apply Web3 Magic to AI and Talent Management
First up is the $80 million round for Story, which is trying to apply that ol’ web3 magic to AI and talent management. As one investor puts it, "What Bitcoin did for money and finance, Story is doing for content and IP." That may well be true, but perhaps not in the way he means it.
While web3 has been hailed as a revolutionary technology that promises to democratize the internet and create new opportunities for creators, its application to AI and talent management is still unclear. Story’s attempt to apply web3 magic to these areas may be seen as an innovative step forward, but it also raises questions about how this will impact the industry.
The significance of this deal lies in its potential to disrupt the traditional talent management industry. By applying web3 principles, Story aims to create a more decentralized and community-driven approach to AI and content creation. This could lead to new opportunities for creators and a shift in the way companies approach talent acquisition.
Bolt’s $450 Million Deal: Marketing Credits or Real Money?
Next, Mary Ann attempts to untangle the knotty, weird term sheet for Bolt: $450 million. But is that real money or ‘marketing credits’? The latter, at least in significant part. And the actual money, is it from regular investors, or through multiple private equity shell companies operating through the Caymans and UAE? Well, the second one. But at least Ryan Breslow is coming back – that should simplify things!
What’s going on with Bolt’s deal?
The $450 million deal for Bolt has been shrouded in mystery, leaving many questions unanswered. The use of marketing credits instead of real money raises concerns about the true value of the investment. Furthermore, the involvement of multiple private equity shell companies adds a layer of complexity to the deal.
The Bolt deal highlights the need for greater transparency in venture capital deals. The use of marketing credits and private equity shell companies can obscure the true nature of an investment, making it difficult for investors to make informed decisions.
Balaji Srinivasan’s Private Island Technocapitalist College Town
A new face (and voice) on Equity, Margaux MacColl over in DC, explained Balaji Srinivasan’s private island ‘technocapitalist college town’ where ‘those with a fondness for the current world order need not apply.’ I said it sounds like a cult, and look, cults can be fine in moderation, but I’m worried about this one.
What is Balaji Srinivasan’s vision?
Balaji Srinivasan’s private island technocapitalist college town aims to create a community of like-minded individuals who share his vision for the future. However, concerns have been raised about the exclusivity and elitism of this project.
The concern surrounding Balaji Srinivasan’s private island technocapitalist college town lies in its potential to create a bubble of like-minded individuals who are detached from the rest of society. This raises questions about the impact on democracy and the global economy.
Two AI Companies that Aren’t Enterprise LLM Stuff
Not wanting to stop talking, I went on to get into two AI companies I covered this week that aren’t enterprise LLM stuff.
Reliant AI: Focused on Researchers who Need to Analyze Thousands of Papers at Once
First up is Reliant AI, which is focused on researchers (especially in pharma) who need to analyze thousands of papers at once, and it seems like it could be super useful to data scientists.
What problem does Reliant AI solve?
The problem that Reliant AI solves lies in the need for researchers to quickly and efficiently analyze large amounts of data. This is particularly important in fields such as pharma where time-sensitive decisions are often required.
BeyondMath: Working with Formula 1 Companies to Create a Digital Wind Tunnel
Next, we have BeyondMath, which is working with Formula 1 companies to create a ‘digital wind tunnel’ that does high-accuracy physics-based computational fluid dynamics simulations in near real time. When was the last time ChatGPT made a race car faster?
What problem does BeyondMath solve?
The problem that BeyondMath solves lies in the need for Formula 1 teams to quickly and accurately test their designs. The digital wind tunnel created by BeyondMath aims to provide this capability.
A Rise in Defense Tech Acquisitions
Finally, we have a rise in defense tech acquisitions that is changing the landscape of the industry.
What’s driving these acquisitions?
The rise in defense tech acquisitions can be attributed to the increasing need for countries to invest in their military capabilities. This has led to a surge in demand for cutting-edge technologies such as AI, cybersecurity, and hypersonics.
Conclusion
In conclusion, this week on Equity we’ve seen some unusual deals that are changing the landscape of various industries. From web3 magic being applied to AI and talent management to private island technocapitalist college towns, there’s no shortage of interesting developments happening right now.
As we look to the future, it’s clear that these trends will continue to shape the industry. The question is, what will this mean for creators, companies, and societies as a whole?
