
connecting dots #withSenzu (@SenzuPartners) | a fractionally professional account
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Joined October 2019
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Foursquare was acquired last month. The outcome was disappointing. It's taken me a while to write this, but I think I'm finally done grieving it. Here are some thoughts on our final years, an effort to honor the team who helped build & maintain FSQ's legacy, and my attempt to finally get some closure. teendrama.substack.com/p/som…
Every move she makes continues to reaffirm it was the right choice. Complete masterclass
Today we're standing up XBOX LABS (labs.xbox.com). Here is the note that I sent to the team:
Team,
The first video games emerged some 75 years ago. In the time since, there have been booms and busts, but every year there are more great games to play, more devices to play them, and best of all, more people than ever playing. That growth helped make XBOX what it is today, and we've helped shape the industry in return, from bringing hard drives to consoles and online gaming through Xbox Live to Game Pass and cloud gaming, alongside franchises that have brought millions of people together.
In recent weeks, we've seen games rapidly decompiled and rebuilt to run on hardware they were never originally designed to support. Windows PC builds have been translated to run on Apple Silicon or ported to run inside a browser through WebAssembly and WebGPU, the latter now approaching 90% global browser support. Perhaps more surprisingly, we've seen many of the biggest games in the world have been remixed into the source code of another.
These experiments challenge long-held assumptions about our industry: the tether between software and hardware, the boundary between creation and play, and how people discover and experience games. While it is hard to predict the future of gaming, it is easy to see the possibilities in making great games easier to access, giving old games new life and allowing more players to become creators and co-creators. These are unmistakably good outcomes for players, even when (and sometimes because) they challenge our existing business models.
To explore these possibilities, I’ve asked Scott to stand-up XBOX LABS, a small group of game makers, engineers and scientists whose job is to turn emerging ideas into things our players and developers can experience. We'll build in the open, learn from what people do, and measure success by whether more people are playing and creating.
I think XBOX has an important role to play here. Coding became the first major workload for agents because they can write, run, and test software. Games share many of those same properties, and people spend more than 72 billion hours a year playing XBOX games, roughly five times the estimated time spent writing code worldwide. We've spent 25 years learning how to make great games, and I want our game makers to help shape what these new technologies make possible. As we learn, we’ll share the tools we build with developers across the industry, just as we always have.
Our priorities aren't changing. We remain committed to the 4Cs, to making great games, to our hardware and to being responsible stewards of IP and the communities built around it. LABS gives us a way to explore new technology that is game design led without abandoning the work already underway.
Asha
M retweeted
Bending Spoons is worth $24 billion.
It trades at 8x ARR and buys B2B companies at 2.3x to 2.7x ARR.
5 learnings from its first 102 days as a public company:
#1. Revenue grew 126%. Organic growth was 3%.
Nearly all of the $393M of added revenue in Q2 came from six acquisitions. The CEO says he doesn't optimize for organic growth. He optimizes for EPS, which grew 167%.
#2. R&D is 8% of revenue. Sales and marketing is 10%.
HubSpot and Datadog each spend about 70% of revenue on those two lines. Bending Spoons spends 18.6%. About 60 people run Vimeo. The core team is under 700 people, at $4M+ of revenue each.
#3. Miro sold at 2.3x ARR, five weeks after Airtable at 2.7x.
$1.08B of ARR for $2.64B, signed 37 days apart. Miro was valued at $17.5B in 2022. Bending Spoons underwrites to a 25% unlevered return. At its 54% margin, that supports about 2.2x ARR.
#4. 1,830 people came with AOL, Eventbrite and Vimeo. Only a few hundred were kept.
Airtable arrived with 935 employees, more than Bending Spoons’ entire core team. Reorganization costs were $51M in Q2 alone.
#5. AI writes 90%+ of the code. Customers pay about 10% more for the AI features.
The CEO says a customer who paid 100 will now pay about 110. The AI gain shows up as capacity: the same 60 people on a business four times the size.
If you're at $300M to $800M in ARR growing under 25%, this is the buyer most likely to at least call. But ... the only do a handful of deals a year.
Its own stock trades at roughly 7x to 8x revenue. Your revenue is worth about 3x more inside Bending Spoons than it is in your hands.
Somebody make this like NFL Street
You can now put your All 22 Pokemon team to the test
Build your lineup, play with your team, throw touchdowns with Alakazam, or hitstick with Gengar
Tecmo Bowl and Madden but with Pokemon :)
All-22 Bowl and All-22 Pro and now available to play
all22pokemon.com/play
Scary hours
Paramount has closed its $81 billion purchase of Warner Bros. Discovery, creating “Skydance” apnews.com/article/warner-br…
M retweeted
My conversation with Michael Moritz, one of the great venture investors of the last 40 years.
Michael joined Sequoia in 1986 and co-led the firm with Doug Leone (@dougleone) from 1995 to 2012. His investments include Google, Yahoo, PayPal, and Stripe.
His new book, Ausländer, traces his parents' escape from Nazi Germany and helps explain his lifelong interest in what shapes exceptional people.
We discuss:
- The infamous Steve Jobs profile
- Why Don Valentine hired him
- The question he finds most revealing when interviewing people
- Monomania and the cost of greatness
- Why he has never felt good at anything
- Writing, journalism and AI
- What he learned about himself writing Ausländer
I'd recommend watching this one if you can. Michael was incredibly thoughtful and reflective throughout, particularly when talking about his parents, childhood, and the more difficult parts of his personal story.
Enjoy!
TIMESTAMPS
0:00 Intro
0:53 Family History & Identity
7:03 Survival & Outsider Instinct
18:53 Studying Exceptional People
33:50 Self-Doubt & Success
41:17 Steve Jobs & Obsession
52:50 Joining Sequoia
1:03:22 Leadership & Alex Ferguson
1:08:25 Elon Musk & AI
1:17:12 Becoming Who You Are










