Why it matters and how it is happening

Hi friends!

There has also been some activity recently around the potential for retail investors to participate in IPOs at the IPO price — the “democratization of IPOs” so to speak, which is what I’ll go into in this piece.

I’ll cover:

  • The need for democratizing the IPO
  • The brokerage-centric approach
  • The company-centric approach

In Jeff Bezos’s recent shareholder letter, he included a note he received from a couple that bought Amazon shares when it IPO’ed. Given the appreciation, each share is up ~2000X. …

How long can Coinbase’s incredible economics persist?

Hi friends!

Coinbase is a leading cryptocurrency exchange and will be going public via a direct listing on April 14th. Its shares last traded hands at a ~$100B valuation in private markets.

With most startups going public these days the key question is “can the economics improve long-term?”. What I find most interesting with Coinbase is that the key question is “can the economics stay this good long-term?”

In this piece I’ll cover:

  • Coinbase overview
  • Coinbase business and financials
  • The bull and bear case for Coinbase
  • S-1 tidbits

Coinbase began in 2012 with the mission to “create an open financial…

Why TAMs don’t matter but thinking through TAMs can be helpful

Hi friends!

I didn’t think I’d be writing about Total Addressable Markets but here we are. Every startup pitch deck (or company S-1) has a slide or section about TAMs. But in the quest to show large TAMs to entice investors, sometimes the TAM number has become meaningless. That’s what I’ll be discussing today.

I’ll cover:

  • TAMs, SAMs, and SOMs
  • Do TAMs matter for Startups
  • How TAMs are helpful
  • How to calculate TAMs

TAM stands for Total Addressable Market and refers to the maximum theoretical revenue potential of a company at that moment given the products or services it has.

Creators have more options than ever for how to monetize and are increasingly choosing to go with a mix of approaches

Hi friends!

One of the things I’ve noticed is how quickly creators and influencers these days are diversifying their revenue streams. Seems like only a few years ago, many creators were reliant on one platform and revenue stream for their income. Today, many of them might start by building an audience on one platform but monetize in many ways, on and off the platform.

In this piece, I’ll cover the various monetization methods I’ve seen, some of the companies enabling each, and a rough sense of scale of the various methods.

Different methods target the casual fans vs the super…

EVs, The Dot Com Bubble, and what happens when hype emerges around entire verticals

Hi friends! I previously wrote about the importance of narratives in private and public markets and how reflexive processes help make narratives a reality.

This time, I want to cover narratives at a vertical or industry level. I’ll discuss:

  • Narratives within industries
  • The Dot Com Bubble
  • Electric Vehicles Today

Sometimes a narrative emerges about a certain vertical or industry getting completely disrupted or shaken up, typically based on new technology. This often results in a rush of money into companies that play into that narrative, with many beginning to trade at extremely high valuations ahead of their initial progress.


Beyond financial returns and the blurring between consumption and investment

Last week, in the changing nature of investing I talked about the rise of alternative assets and how companies have made it easier for investors to put their money in them, and why it might be good for financial returns.

But financial returns aren’t even the only goal of investing for consumers. Increasingly, investing is becoming personal and a way to express one’s identity. It’s what I consider passion investing. This week I go deeper into that idea.

I cover:

  • The jobs to be done of investing
  • How different assets fulfill these jobs
  • Blurring between consumption and investment

Classic economic…

Diversification and the democratization of assets

Hi friends!

One of the interesting changes over the past few years is how people are increasingly investing their money in a more set of asset classes compared to earlier. One could put it down to us being in a historic bull-run amidst low-interest rates and the rampant speculation seemingly everywhere but I think there have also been some other changes that have been taken place, which is what I’ll cover this week.

I’ll go into:

  • Modern Portfolio Theory and diversification
  • The democratization of existing assets
  • The emergence of new assets
  • Investing beyond returns

In 1952, a 25-year old graduate…

Digital art, collectibles and the future of scarcity and authenticity

NFTs have done close to half a billion dollars in transactions this year and we only just got into March. I’ve been digging into the space and what follows are some of my thoughts around it.

I cover:

  • What NFTs are
  • Core use cases — digital art and collectibles
  • Emerging use cases — gaming, merchandise, and real-world assets
  • What drives NFT value
  • Closing thoughts and opportunities
Beeple Artwork Sells for Record-Breaking $6.6
Beeple Artwork Sells for Record-Breaking $6.6
Beeple’s Crossroads, a piece of digital art, which sold for $6.6M

NFT stands for non-fungible token. What is that?

Something is considered fungible if it is interchangeable with something else which is similar. A dollar bill for example is fungible in that you can exchange…

How narratives and hype can become reality in private and public markets

I was joking with some friends the other day that companies went from being valued on free cash flow multiples to revenue multiples to narrative multiples. The truth is narratives and stories have always been a big part of investing in both the earliest and the later stages of companies.

In this post, I’ll go deeper into how narratives can emerge and touch on:

  • reflexivity and self-fulfilling prophecies
  • how narratives play a role in private markets
  • how narratives play a role in public markets

Reflexivity refers to the idea that in areas where a lot of subjectivity exists, perceptions of…

Why the Super Bowl continues to command high prices for commercials

Hi friends! On Sunday, commercials at the Super Bowl cost ~$5.5M for a 30-second slot. At an estimated 110M viewers, that works out to a cost per thousand impressions (CPM) of $50.

TV typically has CPMs in the ~$15 range, and most digital ad platforms have CPMs in the $5–10 range.

Even if you factor in earned media (i.e., organic media and reach generated as a result of the ad), Super Bowl ads probably still come out more expensive.

So is Super Bowl advertising a waste of money?

From the perspective of driving awareness or driving sales, most other mediums…

Tanay Jaipuria

Curious about technology, economics, and business. You can find me on twitter (@tanayj) or substack: https://tanay.substack.com/

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