Good news for Rubrik and bad news for TikTok | Equity Podcast

Rubric's Successful IPO

• Rubric, a cloud computing company, had a successful IPO, pricing above its range and debuting at a higher price.
• Despite its slow growth rate and significant losses, investors valued Rubric based on its growth in Cloud subscription annual recurring revenue.
• Lightspeed Venture Partners and Greylock, major shareholders in Rubric, stand to gain significant returns from the IPO.
• The successful IPO of Rubric is seen as a positive sign for the IPO market, indicating a potential rebound.

Pomelo's "Send Now, Pay Later" Service

• Pomelo, a US-based startup, offers a unique "send now, pay later" service, allowing users in the US to send money to the Philippines while building their credit.
• Pomelo's model involves users owing the company the amount sent, which can be paid with the money they intended to send anyway, thus positively impacting their credit score.

Creditas' Expansion and Funding

• Creditas, a fintech company, is expanding to Mexico and has added new payment options like GCash, an e-wallet similar to Venmo.
• Creditas raised $35 million in a Series A funding round led by Vi Capital, Founders Fund, and A Prime Capital.
• The company offers unsecured and secured credit lines and makes money through interchange revenue and foreign exchange.

TikTok's Potential Ban in the US

• The US has passed a bill that requires TikTok to divest from ByteDance within nine months or face a ban.
• The US is not the first country to ban or consider banning TikTok due to privacy concerns and potential propaganda influence by the Chinese government.
• The ban on TikTok could have a broad impact as it has over 170 million monthly active users in the US, affecting both personal and business use.
• Potential beneficiaries of TikTok's ban could include competitors like Meta (Facebook and Instagram), Alphabet (YouTube), and Snap.

Early-Stage Tech Event in Boston

• The energy at the early-stage tech event in Boston was positive, with packed sessions, engaged attendees, and founders actively building their businesses despite the economic slowdown.
• The event highlighted the importance of going over the basics of fundraising, such as pre and post-money valuations, convertible notes, and SAFE notes, especially for first-time founders.
• Founders are still hungry and building, but the power has shifted from founders to VCs in the current market, leading to more favorable terms for investors.
• Some founders are choosing alternative funding options or focusing on growth without venture capital due to the challenges in the current funding environment.
• Startups represent hope for change and improvement, and the event showcased exciting new companies, particularly in the biotech and medical fields, that have the potential to revolutionize industries.

Show Information

• The show, Equity, will be back on Monday with Alex as the host.
• You can find the speaker on X Bay Area Rider, Alex on X, and Equity under the handle Equity pod on X and threads.
• Check out the sister show, Found, which dives deep into the stories behind startups with the founders who built them.
• The show is hosted by Alex Wilhelm and Mary Ann Aeto, produced by Teresa Lo, edited by Kell Bryce, and illustrated by Durban.
• A big thank you to the audience development team and Henry Pavet who manages TechCrunch audio products.