#115 - How Instant-Commerce Will Disrupt Food Delivery Marketplaces, BVP Cloud Index, SBF on FTX, & Expensify S-1
In this week's episode of Reformed Millennials, Broc and Joel talk about the trend of instant-commerce, so this is a whole layer of apps beyond the marketplaces we're familiar with like Doordash and Uber Eats that instead are vertically integrated so they own and operate their stores that serve a mile radius with a 15 minute or less wait time. One of the big themes on this topic is pricing and efficient markets and because of that we're going to start the conversation broad talking about the interview where Sam Bankman-Fired, he's the Founder FTX and also currently the richest in the world in under 30, talks about key functions of a perfect market. They go on to discuss why the current global supply chain issues might have created the perfect storm for this new Instant-commerce market and a couple examples of companies hit the hardest by that problem. And lastly get into a specific examples of instant-commerce apps in the space that you might be seeing in Canada soon, including one company that just raised a pre-seed round last week led by the former CEO of Sobey's.
Listen on Apple, Spotify, or Google Podcasts.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
The latest earnings season has just begun.
So far, it is passing with flying colors.
Most financials rallied in the two weeks preceding their earnings reflecting rising interest rates and expectations. This time around, we did not see the usual “buy the rumor, sell the news” event. In fact, most financials continued higher post their reports. Add to that the high-volume breakouts in aluminum producer Alcoa and transportation company J.B. Hunt, and it seems the market is forming a new narrative – earnings growth is catching up with high valuations and some stocks might actually be not as expensive as previously thought.
In the meantime, crypto is on fire and becoming more mainstream with every passing week.
Bitcoin passed 60k in anticipation of the launch of its first ETF.
Ethereum is approaching a potential breakout near 4k.
No one really knows how to value them and therefore they can be worth anything – this is a good quality to have when there’s plenty of liquidity and risk appetite going around and a terrible weakness when everyone suddenly decides to run for the exits.
As a result, most crypto-related stocks are rising to the occasion – MARA, RIOT, COIN, HUT, BTBT, BLOK, MSTR.
In other words, market breadth is improving as more and more industries are starting to break out. Most tech stocks report earnings in the next 3 weeks or so.
If they don’t disappoint, we won’t be surprised if we see new all-time highs in the indexes.
💸Reformed Millennials - Post of The Week
The rethinking of "work".
*"A finite game is played for the purpose of winning, an infinite game for the purpose of continuing the play."*
We're all fortunate to live in a time where almost any passion can fund your lifestyle. And when we see someone obsessed with the infinite game they've managed to find themselves in, to the point where it's all they want to do in their free time, we shouldn't admonish them for being too "work-obsessed." We should be jealous of them. We should want to find that for ourselves. Because what more could we want out of life than to wake up every day excited to throw ourselves at the problems in front of us?
If your work isn't providing progress towards some meaningful goal, then by all means, half-ass it with everything you've got. Don't get trapped chasing the next rung in a ladder to nowhere. Don't let your work define you.
But if you can find that incredibly meaningful work, the infinite game you can't stop playing, don't feel bad for playing it.
Brocs Comany Notes:
COVID-19 pandemic, the average number of paid members on our platform declined 15% from 742,000 in the quarter ended March 31, 2020 to 630,000 in the quarter ended June 30, 2020 and we have rebounded to 639,000 paid members in the quarter ended June 30, 2021. The amount of expenses incurred by the paid members remaining on our platform has also declined. In 2019 and 2020, our annual gross logo retention was 88% and 86%, respectively. In 2019 and 2020, our net seat retention was 119% and 98%, respectively.
$35.3 million in Q2 2021, up 88% or so from its pandemic-impacted Q2 2020 result
Q2 2021 run-rate: $141.2 million
Market comp multiples range: 87.7x – 95.9x
Implied IPO valuation estimate: $12.4 billion – $13.5 billion
🌊 Canadian Companies To Peruse🌊
Relocalize - Toronto based - 5 employees, $1.4m pre-seed October 12th Relocalize builds micro-factories for food. Our onsite industrial-scale packaged food production platform is designed to decarbonize and secure supply chains, while improving product quality. Our current focus is on transforming the packaged ice industry.
🔮Best Links of The Week🔮
Two little stories from nature that teach us a few things about investing from Morgan Housel
One of our subscriptions (Fabricated Knowledge) posted a fantastic piece on Global Foundries who filed an S-1 recently.
‘UK to put nuclear power at heart of net zero emissions strategy’, Nuclear Power Edition
Ford CEO on the Electric F-150 Lightning + EVs & Connected Vehicles
Zillow Group Inc. is taking a break from buying U.S. homes after the online real estate giant’s pivot into tech-powered house-flipping hit a snag.
Playing Solo Games - Packy McCormik LP update on his Fund