EIEIO…Brave New World
By: Michael Moe, CFA, Brent Peus, Owen Ritz
Last week, the 14th annual ASU+GSV Summit hosted over 7,000 leaders from 70+ companies well as over 900 of the world’s most innovative EdTech companies.
Below are some of our favorite speeches from this year’s Summit…
Michael Moe (Founder & CEO of GSV) on our “Brave New World” (I know that’s me, but if you don’t love yourself, who can you love?)
Sam Altman (CEO of OpenAI) on the opportunities and challenges oaround the generative AI boom:
Bari Weiss (Founder & Editor of The Free Press) on building a modern media brand:
Bill Gates (Co-Founder of Microsoft) on education, technology, and the importance of math:
Sheryl Sandberg (Founder of Leanin.org, former COO of Meta) sat down with GSV Partner Adam Freed to discuss lessons from Google, grief, and giving all learners an equal opportunity:
Eric Pulier (Founder & CEO of Vatom) on the importance of Digital Identity in the next evolution of the web:
Sal Khan (Founder & CEO of Khan Academy) and Julie Young (Managing Director of ASU Prep Academy) on developing the next generation of personalized learning:
Dan Rosenweig (CEO of Chegg) on CheggMate, Chegg’s Collaboration with ChatGPT:
Chip Paucek (Co-Founder & CEO of 2U) on the incredible potential of entrepreneurs in education:
Alice Waters and Alan Arkatov on being a “Transcendent Educator”:
Wendy Kopp (CEO of Teach for All) on a lifetime of lessons as an education entrepreneur:
Announcing the Inaugural SMU+GSV Mission Summit! May 22–24 in The Big D
Adam Smith wrote the Wealth of Nations in 1776 which effectively was the birth of capitalism. The “invisible hand” guided people to pursue their own interests in a free market, which leads to beneficial social and economic outcomes.
That same year, Thomas Jefferson wrote the Declaration of Independence, which declared that all people were created equal with the right to “life, liberty and pursuit of happiness.” In his inaugural address, George Washington spoke about a different type of “invisible hand” – that people were really motivated by having purpose and meaning to their lives.
While Capitalism has been the greatest creator of wealth and raising the standard of living for hundreds of millions of people around the World, it’s also been under attack, especially among young people. Polls among Millennials and Gen Z consistently show that Socialism is viewed more favorably than Capitalism despite the former’s abysmal track record.
In 2021, Michael Carter and I co-authored “The Mission Corporation,” a best-selling business book on how contemporary capitalism can change the world, one business at a time. We think Capitalism is still the answer, but it needs a “refresh.”
There is a growing tidal wave of businesses that combine purpose and profits which we are calling the “Mission Movement.” We believe the truly great businesses of tomorrow will have the ambition of a for-profit and the heart of a non-profit. Effectively, George Washington’s invisible hand merged with Adam Smith’s.
In addition to host university SMU, partners in the inaugural Mission Summit include Hoque Global and American City Business Journals.
On May 22nd-24th in Dallas, Texas we will gather leaders to promote powerful ideas to help accelerate the Mission Movement…Changing the World for Good!
For more information, including registration, visit smugsvsummit.com
Market Performance
The Dow closed the week down -0.2%, the S & P 500 down -0.1%, and the NASDAQ down -0.4%. All eyes are on Big Tech next week as Amazon, Facebook, and Google are scheduled to release earnings next week. Only twenty stocks in the S&P 500 accounted for 90% of gains in Q1, so mega cap earnings are more important than ever.
Two hallmarks of a bygone era announced that they are shutting down operations. Netflix announced it is ending its DVD-by-mail service (and Redbox is apparently interested in buying it, while Bed Bath & Beyond filed for bankruptcy this weekend.
Airbnb expanded its partnership with Starwood and Greystar to launch Airbnb-Friendly Apartments, which allow renters to use their apartments as an Airbnb on a part-time basis. Snap is releasing its AI chatbot My AI to its 750 million monthly active users for free.
Need to Know
We predict the future balance sheet will shift from property, plant, & equipment to data & human capital.
READ: Insights Into the Human Capital Backed by Bessemer Venture Partners – Live Data Technologies
The business of hip-hop offers many valuable lessons for entrepreneurs (and vice versa).
LISTEN: Dan Runcie (Founder, Trapital) on the Business of Music and What Founders Can Learn from the Top Artists – The Logan Bartlett Show
Third time’s the charm? Building engagement is only going to get more difficult (and expensive), so platforms with a strong and loyal audience like Yahoo are well-positioned.
LISTEN: Yahoo on Private Equity Deals – Capital Allocators with Ted Seides
It’s well-known that venture capitalists love backing second-time founders. Here’s one example why.
READ: Parker Conrad Takes the Pain – The Information
A quick overview of mental math tips that every analyst should know.
READ: Mental Math Gives You Unfair Advantages – Rich Falk-Wallace
This may ultimately be the most entrepreneurial generation ever, with almost two-thirds (62%) of Gen Z has indicated they have started, or intend to start, their own business.
LOOK: How Gen Z Feels About Its Financial Future - Visual Capitalist
Generative AI made its first major splash in the music industry this month when an individual who goes by the name Ghostwriter produced a song called “Heart On My Sleeve” by Drake feat. The Weeknd…without the participation of Drake or The Weeknd.
WATCH: Using AI to make a Drake song featuring The Weeknd - YouTube
GSV’s Four I’s of Investor Sentiment
GSV tracks four primary indicators of investor sentiment: inflows and outflows of mutual funds and ETFs, IPO activity, interest rates, and inflation. Here’s how these four signals performed last week:
#1: Inflows and Outflows for Mutual Funds & ETFs
Source: Yardeni
#2: IPO Market
This past week, The Information reported that SeatGeek filed confidentially for an IPO. SeatGeek is expecting to generate over $500 million in revenue this year, up 3x from 2021.
Source: Renaissance Capital
#3: Interest Rates
Edward Jones shared this week that they expect the Fed to pause rate hikes next month and then leave policy unchanged for the remainder of the year. Reuters found that 59% of economists expect the Fed to keep rates unchanged through at least this year.
Source: Edward Jones
#4: Inflation
US Inflation cooled in March to its lowest point in almost two years. Annual inflation is now expected to fall as it has been over a year since the start of Russia's war on Ukraine.
Source: Statista
Chart of the Week
Source: George Mack
Chuckles of the Week
EIEIO…Fast Facts
Entrepreneurship: 86% — percent of YC Founders that lived in SF during the W23 batch, up from 53% in the last batch (Source)
Innovation: 46% – percent of people that are open to replacing their private vehicles with other modes of transport in the coming decade (Source)
Education: 11.5% – enrollment increase in mechanic and repair trade programs from 2021 to 2022 (Source)
Impact: 50x – decrease in cost per ton lifting capabilities from SpaceX Starship (Source)
Opportunity: 40% — percent of software engineers working in the US that are born outside of the US (Source)
Connecting the Dots & EIEIO…
Old MacDonald had a farm, EIEIO. New MacDonald has a Startup…. EIEIO: Entrepreneurship, Innovation, Education, Impact and Opportunity. Accordingly, we focus on these key areas of the future.
One of the core goals of GSV is to connect the dots around EIEIO and provide perspective on where things are going and why. If you like this, please forward to your friends. Onward!
Make Your Dash Count!
-MM