The Information

Cisco Systems CEO Chuck Robbins in May. Photo by Bloomberg

What Belt-Tightening? Cisco CEO Plans $1 Billion Budget Increase to Retain Employees

By Aaron Holmes · Aug 19, 2022 6:00am PDT · 1 comment

Cisco Systems CEO Chuck Robbins told managers earlier this month that the networking hardware pioneer would increase its operating expenses $1 billion over the next 12 months, in part to raise employee pay to stem a rise in departures, said a person with direct knowledge of the situation. Robbins made the surprising comment after the... Cisco Systems CEO Chuck Robbins told managers earlier this month that the networking hardware...

Singapore's business district. Photo by Bloomberg

Chinese Venture Firms Expand in Singapore as Risks Rise at Home

By Juro Osawa and Shai Oster · Aug 18, 2022 6:00am PDT · 2 comments

China’s venture capitalists made fortunes gambling on the country’s blockbuster tech successes such as Alibaba and Meituan. But as a slowing economy, new regulations and pandemic restrictions cast a pall over China’s tech sector, some of those investors have begun looking to make their next big bets from new outposts in another... China’s venture capitalists made fortunes gambling on the country’s blockbuster tech...

Bolt co-founder Ryan Breslow. Photo by Julian Buitrago. Art by Mike Sullivan

Startup Workers Find Founders Cashed Out When They Couldn’t

By Erin Woo, Becky Peterson and Kevin McLaughlin · Aug 17, 2022 6:00am PDT · 2 comments

A few weeks before Ryan Breslow stepped down as CEO of commerce software startup Bolt in January, he made a deal with investors. As part of a funding round in which BlackRock and other investors bought new stock in Bolt that valued the privately held company at $11 billion, Breslow also sold $10 million worth of his own shares to existing... A few weeks before Ryan Breslow stepped down as CEO of commerce software startup Bolt in January,...

Gili Raanan of Cyberstarts. Art by Clark Miller

How a Former Sequoia Capital Partner Cornered the Israeli Security Startup Market

By Aaron Holmes · Aug 16, 2022 6:00am PDT · 2 comments

Gili Raanan of Cyberstarts. Art by Clark Miller

How a Former Sequoia Capital Partner Cornered the Israeli Security Startup Market

By Aaron Holmes · Aug 16, 2022 6:00am PDT · 2 comments

Whenever a cybersecurity startup seeks capital from venture capital firms in Israel, whose military trains an outsize number of security software entrepreneurs, the first thing prospective investors usually do is check whether Gili Raanan has invested in it. If he hasn’t, there had better be a good reason, said Shlomo Kramer, co-founder of... Whenever a cybersecurity startup seeks capital from venture capital firms in Israel, whose...

Art by Clark Miller.

How Instagram’s TikTok Envy Finally Backfired

By Kaya Yurieff · Aug 15, 2022 6:00am PDT · 2 comments

Last month, Kim Kardashian, Kylie Jenner and other influencers stirred up a public relations firestorm for Instagram, complaining to their hundreds of millions of followers about the app's recent attempts to mimic TikTok. Those efforts were just part of a broader internal effort to take on the Chinese short-form video app, though. The... Last month, Kim Kardashian, Kylie Jenner and other influencers stirred up a public relations...

Illustration by Mike Sullivan.

Fintech Investors Cherry-Pick Deals in Boom’s Aftermath

By Erin Woo · Aug 12, 2022 6:00am PDT

In October, QED Investors managing partner Nigel Morris addressed the CEOs of several dozen fintech startups in an Alexandria, Va., hotel at the venture capital firm’s annual summit. After two days of discussions—and a cycling trip in Shenandoah National Park—he had a message for them: “These are the salad days.” ... In October, QED Investors managing partner Nigel Morris addressed the CEOs of several dozen...

Art by Josh Brill

TikTok’s $4 Billion Advertising Machine Is Messy Behind the Scenes

By Sylvia Varnham O'Regan · Aug 11, 2022 12:39pm PDT · 2 comments

Two years ago, social media sensation TikTok came up with a slogan to prod brands to be more authentic in their advertisements on the app: “Don’t Make Ads. Make TikToks.” But last June that approach went off the rails with a high-profile marketing stunt by Starbucks. The coffee chain launched an ad campaign with Chance the... Two years ago, social media sensation TikTok came up with a slogan to prod brands to be more...

Viral Patel, global head of technology investing for Blackstone Credit. Art by Clark Miller.

Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending Push

By Maria Heeter · Aug 11, 2022 6:00am PDT · 1 comment

Viral Patel, global head of technology investing for Blackstone Credit. Art by Clark Miller.

Blackstone Plans to Back Tech Startups in $2 Billion–Plus Lending Push

By Maria Heeter · Aug 11, 2022 6:00am PDT · 1 comment

Private equity giant Blackstone is gearing up to make its first major push into lending to startups and technology companies—joining a corner of the debt market that’s quickly heating up. The firm expects to invest at least $2 billion in technology debt deals over the next few years, including venture debt, deals with... Private equity giant Blackstone is gearing up to make its first major push into lending to...

TikTok’s Owner ByteDance Quietly Changed Its China Unit’s Name After U.S. Political Fears

By Juro Osawa and Shai Oster · Aug 10, 2022 5:00am PDT · 2 comments

Since The Information reported last year that the Chinese government had quietly taken a stake and a board seat in a key Chinese corporate entity of ByteDance, the parent company of TikTok, politicians in the U.S. and elsewhere have fanned fears that the Chinese government holds dominion over TikTok too. ByteDance, which is headquartered in... Since The Information reported last year that the Chinese government had quietly taken a stake...

From left, DataRobot executives Tom Levey, former CEO Dan Wright and CFO Damon Fletcher. Fletcher and Levey are departing. Art by Mike Sullivan

DataRobot’s CFO, Three Other Senior Execs Depart Amid Fallout Over Share Sales

By Kevin McLaughlin · Aug 8, 2022 8:45am PDT · 2 comments

The chief financial officer and several other senior executives at artificial intelligence startup DataRobot have resigned as the company prepares a second round of layoffs this year, according to two people with knowledge of the situation. The changes, announced internally in a meeting, are the latest sign of an ongoing leadership shakeup... The chief financial officer and several other senior executives at artificial intelligence...

Illustration by Jesus Escudero.

Debt Is Back for Startups Shut Out of IPO Market

By Maria Heeter · Aug 5, 2022 6:19am PDT · 3 comments

Tech startups that had been eager to go public this year have been forced to put those plans on ice amid the market meltdown. With initial public offering conditions likely to remain tough at least through the end of the year, firms offering alternatives to equity raising are clamoring to help fill the gap. Direct lender Owl Rock Capital, which... Tech startups that had been eager to go public this year have been forced to put those plans on...

Photo by Bloomberg

Food Delivery Wars Heat Up as 7-Eleven Quietly Acquires a Delivery Startup

By Erin Woo and Amir Efrati · Aug 4, 2022 5:18pm PDT · 2 comments

Photo by Bloomberg

Food Delivery Wars Heat Up as 7-Eleven Quietly Acquires a Delivery Startup

By Erin Woo and Amir Efrati · Aug 4, 2022 5:18pm PDT · 2 comments

7-Eleven, the Japanese-owned convenience store chain, has acquired Skipcart, a four-year-old startup that developed a major network of drivers for fast delivery of restaurant food and other goods in the U.S., according to two people with knowledge of the deal. The move is significant because it could change how 7-Eleven does business with... 7-Eleven, the Japanese-owned convenience store chain, has acquired Skipcart, a four-year-old...

Photo by Bloomberg. Art by Mike Sullivan

Anxiety at the All Hands: Startup Workers Lurch Between IPO Hopes and Layoff Fears

By Erin Woo, Becky Peterson and Mark Matousek · Aug 4, 2022 6:00am PDT

Last Thursday, employees were on pins and needles at Instacart’s San Francisco headquarters ahead of the 10 a.m. all-hands meeting. The week before, the company’s founder and executive chair, Apoorva Mehta, announced that he would step down “once Instacart becomes a public company.” The language announcing... Last Thursday, employees were on pins and needles at Instacart’s San Francisco headquarters...

Photos by Bloomberg. Art by Mike Sullivan

Elon Musk’s No. 2 at SpaceX Does Damage Control

By Becky Peterson · Aug 3, 2022 6:00am PDT

For years, many investors and employees at Space Exploration Technologies have regarded the company’s No.2 executive, Gwynne Shotwell, as the adult in the room at the boundary-pushing rocket company founded by Elon Musk. Her acolytes have lauded Shotwell’s ability to translate her visionary boss’s wild ideas into a business... For years, many investors and employees at Space Exploration Technologies have regarded the...

Kat Manalac of Y Combinator speaks during Startupfest in 2019. Photo by Bloomberg

Y Combinator Slashes Startup Accelerator Class Size by 40%

By Kate Clark · Aug 2, 2022 2:14pm PDT

Y Combinator has cut the number of startups it is funding and training this summer by about half compared to its winter program, a spokesperson confirmed. The famed Silicon Valley accelerator responded to a downturn in the economy and in venture capital funding in reducing its class size. The move means as many as 250 companies will pitch... Y Combinator has cut the number of startups it is funding and training this summer by about half...

Tesla employees assembling a car. Photo by Bloomberg.

Tesla Builds Its Own Recruiting Software in Fresh Push to Cut Outside Providers

By Mark Matousek · Aug 2, 2022 6:00am PDT · 11 comments

Tesla employees assembling a car. Photo by Bloomberg.

Tesla Builds Its Own Recruiting Software in Fresh Push to Cut Outside Providers

By Mark Matousek · Aug 2, 2022 6:00am PDT · 11 comments

Tesla has introduced proprietary software for tracking its job applicants, three current and former recruiting employees told The Information, a move that could lower hiring-related costs as CEO Elon Musk follows through on his goal to reduce the electric vehicle maker’s reliance on external software vendors. The move by Tesla marks an... Tesla has introduced proprietary software for tracking its job applicants, three current and...

A Lalamove-branded vehicle in Shanghai, China, 2018. Photo by AP.

Delivery Startup Snags Unexpected Gain From Didi’s Pain: A $13 Billion Valuation

By Juro Osawa · Aug 2, 2022 5:00am PDT

Beijing’s sweeping regulatory assault on the domestic tech sector hurt a lot of companies. But for some startups, the government’s moves knocked out the competition. Take Lalamove, a last-mile–delivery startup for business customers whose backers include Sequoia Capital China and Tiger Global Management. When Didi Global,... Beijing’s sweeping regulatory assault on the domestic tech sector hurt a lot of companies....

Oracle's office (and former headquarters) in the San Francisco Bay Area. Photo by Bloomberg

Oracle Axes U.S. Staff, Part of Plan to Lay Off Thousands

By Amir Efrati · Aug 1, 2022 9:42am PDT

Oracle has begun to lay off employees in the U.S., a move that will impact some staff in the San Francisco Bay Area, where the company was previously headquartered, said a person with direct knowledge of the matter. The database pioneer planned thousands of job cuts for its global workforce of 160,000 after discussing cutting $1 billion in... Oracle has begun to lay off employees in the U.S., a move that will impact some staff in the San...

Katie Haun (left) and Andreessen Horowitz's General Partner Chris Dixon. Photos by The Information, Bloomberg

Andreessen Horowitz’s Dixon Replaces Katie Haun on OpenSea Board

By Aidan Ryan · Jul 29, 2022 5:47pm PDT · 1 comment

In an unexpected move, Andreessen Horowitz General Partner Chris Dixon has joined the board of directors of OpenSea, one of the most highly valued blockchain startups, replacing former Andreessen Horowitz general partner Katie Haun, according to a person with direct knowledge of the matter. Haun, who launched her own crypto-focused investment... In an unexpected move, Andreessen Horowitz General Partner Chris Dixon has joined the board of...

Smrti Lab co-founders Wang Lusho (left) and Wang Bowen

China’s Top Angel Investors Pour $90 Million Into Crypto Hedge Fund, Betting on Recovery in Prices

By Shai Oster · Jul 29, 2022 6:00am PDT

Smrti Lab co-founders Wang Lusho (left) and Wang Bowen

China’s Top Angel Investors Pour $90 Million Into Crypto Hedge Fund, Betting on Recovery in Prices

By Shai Oster · Jul 29, 2022 6:00am PDT

The stomach-churning collapse of cryptocurrency tokens, savings accounts, and hedge fund Three Arrows Capital has wiped out fortunes just as the collapse of the Lehman Brothers investment bank did during the 2008 financial crisis. That means it’s the perfect time to buy cryptocurrencies, according to the founders of a young crypto... The stomach-churning collapse of cryptocurrency tokens, savings accounts, and hedge fund Three...