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What goes up must come down
Gm. Well, this was an interesting weekend in tech.
FRESH POWDER
Looking at two funds that recently topped up their coffers.

STARTUPS
A Wave Of Layoffs

The rough patch for tech continues.
In the past couple of weeks, weâve discussed the diminishing amount of VC funding and less-than-ideal Q3 earning reports, which, although concerning, is not completely devastating.
But when put together and combined with the harsh macro environment we now live in, you find yourself with something that nobody wants to see:
A gutting round of layoffs.
Blood On The Streets
The layoffs came hard and heavy last week:
Couple these with recent cuts at Microsoft, Snap, and Dapper Labs, and the picture becomes clear: this is the most adversity tech has faced in several years.
Why Is This Happening?
The likely scapegoat for the cuts is the Fed and their quest to nuke inflation by any means necessary, collateral damage be damned. It makes sense. A hawkish macro backdrop is not conducive to growth in a risk-on sector like tech.
However, although the Fed is definitely not helping the cause, whatâs really happening here is a natural contraction after a period of extreme growth.
Tech grew like a weed in the era immediately following the pandemic when the Fed money printer was on and stimulus checks were handed out like candy.
Big tech grew so fast and made so much money that they hired more people than they normally would. And why not? Thereâs all this excess money, and you can grow even faster with more employees. Seemed like a no-brainer.
The problem with this line of thought is what happens when the music stops. As Warren Buffet eloquently puts it, âonly when the tide goes out do you discover whoâs been swimming nakedâ.
The Fed made the tide go out, but the tech companies were the ones who decided to go swimming naked.
The Big Picture
Layoffs, low funding, and bad earnings reports are not fun for anybody. However, it does not mean we should start writing obituaries.
The amount of innovation happening right now in AI, web3, climate tech, and life sciences is staggering and shows no signs of slowing down. Hundreds of billions of dollars of VC dry powder are ready to deploy. A Fed pivot becomes more likely with each passing month.
The best days are still ahead.
QUICK HITS
Seed Round

Stat: $75 million: The amount that Houston sports bettor âMattress Mackâ cashed in last night with the Astros World Series win, believed to be the largest payout in sports betting history. Maybe Meta should get into sports betting.
Story weâre watching: Russia is reactivating its American election propaganda machine with Tuesdayâs midterms on the horizon. Letâs see if Elon can keep his promises and chuck these bots off Twitter.
Rabbit hole: Ways to think about a Metaverse (Ben Evans)
WHAT ELSE IS GOING ON
Jack Dorsey blames himself for the Twitter layoffs and says it was his own fault for growing Twitter so big. He's onto bigger and better things anyways.
HBO series Westworld was canceled after four seasons. It costs $80 million per year. That money could've gone to a lot of generative AI funding...
Thereâs some concern over the financial health of crypto trading giant Alameda Research.
TikTok confirmed that European usersâ personal data is accessible by employees in China. Theyâre watching you.
PICK THAT PITCH DECK
Hint: their ad platform needs some work...

MONDAY MUSIC
Artist: JR JR (Spotify)
Playlist: Acoustic Hip Hop Covers (Spotify)
Song: BAD FRUIT by Jean Dawson (Spotify)
P.S. Shout-out to Krimsey Lilleth for sending in BAD FRUIT last week. If you have any songs or artists you love, feel free to reply to this email and send âem our way.
LAYOFFS TRACKER
Notable layoffs this week
LiveRamp: 150 people (10%)
Planetly: 200 people (100%)
Twitter: 3750 people (50%)
FOUNDERS CORNER
The best resources we came across this weekend that will help you become a better founder, builder, or investor.
đ¤ A concept from physics teaches us a lesson about productivity
đ§ Netflix co-founder Marc Randolph drops a đŁ thread on taking on Blockbuster
đ§đťââď¸ r/digitalminimalism â a forum to chat about finding tranquility in the digital age