Journalists
Jeff covers the internet and technology sectors from San Francisco. He has prior work experience at First Manhattan Co, a value-based investment manager, and Finnegan Henderson, an intellectual property law firm. Jeff graduated from the University of Michigan with a degree in film and video studies, where he oversaw the largest undergraduate investment club in the country.
New data show VC-backed liquidity fell 80% over the past two years. That’s starving all save the best-connected, like Netscape founder Marc Andreessen, who just raised $300m. Ironically, this thinning of the ranks is just what the VC industry needs.
The popular film star played host to some of history’s greatest images. But even he couldn’t keep up with the changing times. Although his parents pulled the plug on him late Monday, his legacy will live on through his digital offspring.
During the boom it was cool to be an investment banker – or just look like one. A shiny new gadget from Research in Motion was the accoutrement of choice for wannabe financial engineers. RIM’s latest numbers suggest that may be changing.
Rupert Murdoch’s social network was one of the few winners, earning some $200m last year. Now it’s cutting 30% of its staff and looks set to lose money when Google renegotiates its partnership. The first internet bubble ended with a bang; this one could be ending with a whimper.
Neither is bankruptcy – states can’t get protection. Stiffing bondholders would only destroy California’s credit and deepen future budget woes. There may be some half-measures. But the Golden State’s only real option is to make big cuts now and balance its books.
A handful of VC firms are placing big bets on the decline of the US auto industry. Given GM’s recent bankruptcy, some may pay off sooner than expected. Whether electric cars or simply better parts for existing ones, there’s a number of ways VCs can profit.
The Golden State faces a host of problems stemming from its ballooning $21bn budget deficit. They’ll likely lead to higher taxes, more regulation and fewer services. That will scare off some of California’s entrepreneurs. But the alternatives aren’t much better.
Virtual retailers Amazon.com and Overstock.com are scaling back in states that demand they collect sales tax on some purchases. While this won’t dent their revenues much, it foreshadows a larger clash over taxing internet commerce. Cash-strapped states are firing the first shots.
The longtime Lazard rainmaker rescued New York City from bankruptcy in 1975. California’s political landscape is much rockier than New York’s was. But a financial wizard like Farallon’s Tom Steyer could still help bridge the gap.
Media around the world are using tweets from Tehran to supplement their coverage of the post-election upheaval. This has given the revenue-free website a credibility boost. But Twitter still hasn’t proven it can leverage its popularity to make money.
The US bank complained about being force-fed rescue funds and promised to pay them back fast. So the fact that it wasn’t among the first 10 to do raised eyebrows. But Uncle Sam’s cash may help it scrape by while it sorts out Wachovia’s mortgage mess – just as it was meant to do.
The recent probe into the hiring practices of tech heavies like Apple, Google and Yahoo suggests as much. The place is cliquey. But the competition for talent is fierce. This is more likely shot off the bow from competition authorities.
The former web highflier is finally being spun off by parent Time Warner. That can’t hurt its chances of a renaissance. But it has a long way to go to compete with other internet heavyweights. Its independence may prove the preamble to gradual extinction.
The state is about to vote on proposals to curb its $42bn deficit. All look set to fail. Now it needs the federal government to backstop its borrowing. That gives the feds leverage. As with GM, they should demand California make crucial changes before it gets any support.