June 1, 2020
Photo: The LEGO Group.
Good morning! This Monday, some founders prefer family offices to VCs, we might not need to worry about Big Tech vultures, and Dallas PD had to face K-pop fans. Want Index in your inbox each morning? Subscribe here.
As of 4:42 a.m. PDT: Nasdaq Futures: -0.15% | Euro 600: 0.85% | Nikkei: 0.84% | Hang Seng: 3.36%
A lot of digital ink has been spent figuring out who will win the Cloud Wars: Microsoft, Google, Amazon, IBM? But according to one cloud CEO, that's the wrong way to think about it.
The future, he thinks, is a world where you have different providers for different functions, all of which connect with each other like Lego bricks, using a standard set of APIs. (Amusingly, Friend thinks those APIs will likely be Amazon's, thanks to its existing scale.)
To execute that vision, Wasabi recently raised funding — a round notable for not including any VCs.
Another bonus of family offices? "Most of them are people who have made their fortunes on their own," Friend said, "so they understand my job better than a lot of VCs do, some of whom have never run anything."
There's been a lot of talk recently about the threat this pandemic poses to competition, with U.S. representatives, including Alexandria Ocasio-Cortez, pushing for a merger moratorium to stop Big Tech from using the crisis to snap up small companies. But is that actually something we need to worry about?
There is some downward pressure on valuation, though. Simnett said that the retreat from private equity buyers, who are busy dealing with their own portfolios, could cool the market.
Big Tech's advantage right now isn't necessarily that it can buy distressed companies, Simnett thinks.
Dallas Police Department has an app that lets people submit evidence of crimes, and it recently told people they could submit "video of illegal activity from the protests." People … did not like that. And so K-pop fans spammed the app with videos of K-pop, leading the police to take the app down "due to technical difficulties." 2020's protest songs are wild.