Unpacking how Dell’s debt load and VMware stake could come together

Last week, we discussed the possibility that Dell could be exploring a sale of VMware as a way to deal with its hefty debt load, a weight that continues to linger since its $67 billion acquisition of EMC in 2016. VMware was the most valuable asset in the EMC family of companies, and it remains central to Dell’s hybrid cloud strategy today.

As CNBC pointed out last week, VMware is a far more valuable company than Dell itself, with a market cap of almost $62 billion. Dell, on the other hand, has a market cap of around $39 billion.

How is Dell, which owns 81% of VMware, worth less than the company it controls? We believe it’s related to that debt, and if we’re right, Dell could unlock lots of its own value by reducing its indebtedness. In that light, the sale, partial or otherwise, of VMware starts to look like a no-brainer from a financial perspective.

At the end of its most recent quarter, Dell had $8.4 billion in short-term debt and long-term debts totaling $48.4 billion. That’s a lot, but Dell has the ability to pay down a significant portion of that by leveraging the value locked inside its stake in VMware.

Yes, but …

Nothing is ever as simple as it seems. As Holger Mueller from Constellation Research pointed out in our article last week, VMware is the one piece of the Dell family that is really continuing to innovate. Meanwhile, Dell and EMC are stuck in hardware hell at a time when companies are moving faster than ever expected to the cloud due to the pandemic.

Dell is essentially being handicapped by a core business that involves selling computers, storage and the like to in-house data centers. While it’s also looking to modernize that approach by trying to be the hybrid link between on-premise and the cloud, the economy is also working against it. The pandemic has made the difficult prospect of large enterprise selling even more challenging without large conferences, golf outings and business lunches to grease the skids of commerce.

Silver Lake to buy additional $600 million stake in India’s Reliance Jio Platforms

Silver Lake is doubling down its bet on India’s Reliance Jio Platforms. The U.S. private equity firm said Friday it is buying an additional stake worth $600 million in the top Indian telecom operator, which has now raised $12.2 billion in less than two months at the height of a global pandemic.

The Menlo Park-headquartered firm, which invested nearly $750 million in Reliance Jio Platforms last month, said the additional infusion increases its stake in the Indian firm to 2.08%, up from 1.15%.

Silver Lake’s new investment is now the seventh deal Reliance Jio Platforms, a subsidiary of India’s most valued firm (Reliance Industries), has secured in just as many weeks by selling nearly 20% stake. Earlier on Friday (local time), Abu Dhabi-based sovereign firm Mubadala said it would invest $1.2 billion in Jio, a firm run by Mukesh Ambani, India’s richest man. Facebook, KKR, General Atlantic and Vista are the other investors that have wrote checks to Jio Platforms.

The announcement further captures the appeal of Jio Platforms, which has amassed more than 388 million subscribers in less than four years, to foreign investors looking for a slice of the world’s second-largest internet market.

Media reports have claimed in recent weeks that Amazon is considering buying stakes worth at least $2 billion in Bharti Airtel, India’s third largest telecom operator, while Google has held talks for a similar deal in Vodafone Idea, the second largest telecom operator.

Egon Durban, co-chief executive and managing partner at Silver Lake, said the recent investment momentum in Reliance Jio Platforms “validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world’s most remarkable technology companies.”

“We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population,” he added.

Silver Lake manages nearly $40 billion in combined assets and committed capital and has invested in dozens of tech firms over the years, including in video game engine maker Unity, audio and video communication service Skype, consultancy firm Gartner, Alibaba’s Ant Financial, computer giant Dell, and Chinese ride-hailing giant Didi Chuxing.

Ambani is raising capital at least in part to cut his oil-to-retail giant Reliance Industries’ net debt of about $21 billion to zero by early 2021, a promise he made to shareholders earlier, said Mahesh Uppal, director of communications consultancy firm Com First. The company was debt free in 2012, but took loans to bankroll the creation of Jio Platforms.

“I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement,” said Ambani in a statement.

Canalys finds PC demand surged in Q1, but shipments lagged due to supply issues

As workers moved from office to home and students moved to being educated online, demand for new PCs surged in Q1, but Canalys found that shipments actually dropped 8% in spite of this, due to COVID-19 related supply chain problems.

The 8% drop was the worst since 2016 when shipments dropped 12%, according to the firm. Companies were looking to get new machines into the hands of employees who normally worked on desktop machines in the office, while parents were buying machines for children suddenly going to school online.

Rushabh Doshi, research director at Canalys says that products were flying off the shelves in Q1, but the PC makers couldn’t keep up with demand as supplies were limited due to a number of factors.

“…PC makers started 2020 with a constrained supply of Intel processors, caused by a botched transition to 10nm nodes. This was exacerbated when factories in China were unable to reopen after the Lunar New Year holidays.

“The slowdown in supply met with accelerated demand, as businesses were suddenly forced to equip a newly remote workforce, placing urgent orders for tens of thousands of PCs. Children, too, needed their own PCs, as schools closed and lessons went online,” Doshi explained in a statement.

Lenovo and HP owned the lion’s share of the PC market in Q1 with 23.9% and 21.8% share respectively. Dell was in third with 19.6%. Apple was well behind in fourth place with just 6% of worldwide market share.

Only Dell projected positive growth with a modest 1.1% annual rate. All others were projected to be negative with Apple projecting the sharpest drop at -21%.

The good news is that from a revenue perspective, at least for the short term, these companies could command higher prices due to high demand and low supply, but overall the year looks bleak for PC makers, as Canalys predicts the rest of the year will see a further drop in sales as companies cut back on purchases, and consumers also likely limit purchases with so much economic uncertainty and demand satisfied for the short term.

Energica CEO plots her Italian EV company’s reboot from lockdown

There could be more demand for electric vehicles post COVID-19 crisis, believes Energica founder Livia Cevolini.

The CEO of the high-performance Italian motorcycle manufacturer offered that point of optimism, as her Modena based EV company remains closed by government decree.

The coronavirus pandemic has forced Energica to hit the brakes on production of its battery powered machines that can reach top speeds of 168 mph.

From lockdown in her Northern Italy home, Cevolini shared perspective on the future of motorcycling, acquisition offers and plans to recharge her company when the COVID-19 crisis subsides.

At a time when her country has been hit particular hard by the coronavirus, she offered some upbeat thinking.

Energica CEO Livia Cevolini on lockdown in Modena, Italy

“I don’t want to look only at the negative…Maybe there are things that are positive that come out of this bad crisis,” Cevolini told TechCrunch on a video call.

One of those is greater demand for EVs after the pandemic. Cevolini highlighted greater awareness of the smog internal combustion mobility creates and scientific evidence that air pollution exacerbates viruses as factors that could swing more folks to electric.

Reporting has made much of urban areas attaining visibly cleaner air — featuring before shots of global cities with smog and after shots of clear skies since COVID-19 forced traffic off the roads.

“Maybe at the end of this situation we will have a greater awareness on climate change. Then people will approach electric with more consciousness,” Cevolini said.

Before the health crisis shutdown most of Italy, Energica had already seen larger demand for its high-performance e-motos, with a price range of $17,000 to $23,000. The company — that has has a California office and U.S. general manager (Stefano Benatti) — filled more orders in the first two months of 2020 than all its sales for 2019, according to Cevolini.

As an EV venture, Energica is located in the famed Italian motor valley and positions itself similar to its neighbors — Lamborghini, Ducati, Ferrari — in offering a merger of sleek design and elite performance.

MotoE Worldcup racing, Image Credits: Energica

The venture is also one of the few e-motorcycle companies drawing engineering tips from competition. In 2018, Energica was named the sole manufacturer to the MotoE Worldup — an electric version of MotoGP motorcycle racing. MotoE riders use the company’s EGO model as their base bike.

Technology from the track is transferring to production models, according to Cevolini. “The goal is to use racing to test in extreme but safe conditions and then we move stuff to the road bikes,” she said.

Energica credits the application of race tech to production e-motos for some of the increased order flow it saw early this year. The company reduced the weight of its 2020 production line by 5% and increased range by 60% based on adaptions it brought over from MotoE.

Track competition is a secondary arena for Energica. The primary venue is an increasingly crowded e-motorcycle marketplace, which will most certainly face declining demand given the economic impact of COVID-19.

Harley Davidson introduced its all electric $29K LiveWire in 2019, becoming the first of the big gas manufacturers to offer a street-legal e-moto for sale in the U.S.

Harley’s entry followed several failed electric motorcycle startups — including Mission Motors — and put it in the market with existing EV ventures, such California startup Zero, with 200 dealers worldwide.

Image Credits: TechCrunch

When it comes to core e-motorcycle specs — such as performance, charge-times and range — Energica has held advantages with its 145 horsepower machines that can charge in 20 minutes for max ranges of 140 to 250 miles.

But the competition is closing in on some of the Italian EV maker’s numbers. In 2019, Zero launched its high-performance SR/F, with 110 horsepower and a top-speed of 120 mph. And the entire motorcycle industry — gas and electric — could face competitive pressures from new EV entrant Damon Motors. The Vancouver based startup debuted its 200 mph, $24K Hypersport this year, which offers proprietary safety and ergonomics tech for adjustable riding positions and blind-spot detection.

On top of strong competition in the e-moto space, there’s a growing uncertainty on the buying appetite for motorcycles that could persist into 2020 — and beyond — given the COVID-19 pandemic gripping the world.

In the U.S., new motorcycles sales didn’t weather the last recession very well, dropping 50% in 2008 and remaining stagnant since. In addition to Energica, other manufacturers, such as Harley Davidson have been forced to stop production due the coronavirus.

Energica CEO Livia Cevolini believes her company has a leg up on its e-moto competitors and an ability to rebound, once it restarts operations.

She flags the manufacturer’s racing connection as something that will continue to give Energica an edge in product development. Speaking to competition with Zero Motorcycles in particular, “We are in a different category,” she said. “They have less power, less range and less fast charge capability.”

Energica has also created another revenue stream through a joint-venture to provide battery, computing and drive-train technology to Dell’Orto, a supplier to the global scooter market.

As more of the major gas motorcycle companies enter the EV market, Cevolini is open to a merger or acquisition, but only on her terms.

“If someone comes to me with a real proposal…that you want to grow our business and our company and not destroy it, we can talk,” she said. “Otherwise, we prefer to go our own way.”

Energica

Image Credits: Energica

Energica is prepared to restart production, and has done contingencies for adaptations — such as safe and socially distanced operations — when it gets the go head from the Italian government to reopen.

“We’re ready to fulfill the orders we received before the shutdown and take more,” she said.

When Energica is able to switch on the plant electricity again, Cevolini suspects her niche market of motorcycle enthusiasts will be eager to roll.

“Our customers are telling us they are just waiting to ride again. And as soon as they can ride again, they will ride again,” she said.

DocuSign acquires Seal Software for $188M to enhance its AI chops

Contract management service DocuSign today announced that it is acquiring Seal Software for $188 million in cash. The acquisition is expected to close later this year. DocuSign, it’s worth noting, previously invested $15 million in Seal Software in 2019.

Seal Software was founded in 2010, and, while it may not be a mainstream brand, its customers include the likes of PayPal, Dell, Nokia and DocuSign itself. These companies use Seal for its contract management tools, but also for its analytics, discovery and data extraction services. And it’s these AI smarts the company developed over time to help businesses analyze their contracts that made DocuSign acquire the company. This can help them significantly reduce their time for legal reviews, for example.

“Seal was built to make finding, analyzing, and extracting data from contracts simpler and faster,” Seal Software CEO John O’Melia said in today’s announcement. “We have a natural synergy with DocuSign, and our team is excited to leverage our AI expertise to help make the Agreement Cloud even smarter. Also, given the company’s scale and expansive vision, becoming part of DocuSign will provide great opportunities for our customers and partners.”

DocuSign says it will continue to sell Seal’s analytics tools. What’s surely more important to DocuSign, though, is that it will also leverage the company’s AI tools to bolster its DocuSign CLM offering. CLM is DocuSign’s service for automating the full contract life cycle, with a graphical interface for creating workflows and collaboration tools for reviewing and tracking changes, among other things. And integration with Seal’s tools, DocuSign argues, will allow it to provide its customers with a “faster, more efficient agreement process,” while Seal’s customers will benefit from deeper integrations with the DocuSign Agreement Cloud.

Gaming-focused investment firm Bitkraft closes in on at least $140 million for its second fund

Esports, video games and the innovations that enable them now occupy a central space in the cultural and commercial fabric of the tech world.

For the investment firm Bitkraft Esports Ventures, the surge in interest means a vast opportunity to invest in the businesses that continue to reshape entertainment and develop technologies which have implications far beyond consoles and controllers.

Increasingly, investors are willing to come along for the ride. The firm, which launched its first fund in 2017 with a $40 million target, is close to wrapping up fundraising on a roughly $140 million new investment vehicle, according to a person with knowledge of the firm’s plans.

Through a spokesperson, Bitkraft confirmed that over the course of 2019 it had invested $50 million into 25 investments across esports and digital entertainment, 21 of which were led by the firm.

The new, much larger, fund for Bitkraft is coming as the firm’s thesis begins to encompass technologies and services that extend far beyond gaming and esports — although they’re coming from a similar place.

Along with its new pool of capital, the firm has also picked up a new partner in Moritz Baier-Lentz, a former Vice President in the investment banking division of Goldman Sachs and the number one ranked esports player of Blizzard’s Diablo II PC game in 2003.

While at Goldman, Baier-Lentz worked on the $67 billion Dell acquisition of EMC and the $34 billion acquisition of RedHat by IBM.

The numbers in venture capital — and especially in gaming — aren’t quite at that scale, but there are increasingly big bets being made in and around the games industry as investors recognize its potential. There were roughly $2 billion worth of investments made into the esports industry in 2019, less than half of the whopping $4.5 billion which was invested the prior year, according to the Esports Observer.

As Ethan Kurzweil of Bessemer Venture Partners told TechCrunch last year:

“Gaming is now one of the largest forms of entertainment in the United States, with more than $100B+ spent yearly, surpassing other major mediums like television. Gaming is a new form of social network where you can spend time just hanging with friends/family even outside of the constructs of ‘winning the game.’”

Over $100 billion is nothing to sneer at in a growing category — especially as the definition of what qualifies as an esports investment expands to include ancillary industries and a broader thesis.

For Bitkraft, that means investments which are “born in Internet and gaming, but they have applications beyond that,” says Baier-Lentz. “What we really see on the broader level and what we think bout as a team is this emergence of synthetic reality. [That’s] where we see the future and the growth and the return for our investors.”

Bitkraft’s newest partner, Moritz Baier-Lentz

Baier-Lentz calls this synthetic reality an almost seamless merger of the physical and digital world. It encompasses technologies enabling virtual reality and augmented reality and the games and immersive or interactive stories that will be built around them. 

“Moritz shares our culture, our passion, and our ambition—and comes with massive investment experience from one of the world’s finest investment firms,” said Jens Hilgers, the founding general partner of BITKRAFT Esports Ventures, in a statement. “Furthermore, he is a true core gamer with a strong competitive nature, making him the perfect fit in our diverse global BITKRAFT team. With his presence in New York, we also expand our geographical coverage in one of today’s most exciting and upcoming cities for gaming and esports.”

It helps that, while at Goldman, Baier-Lentz helped develop the firm’s global esports and gaming practice. Every other day he was fielding calls around how to invest in the esports phenomenon from private clients and big corporations, he said.

Interestingly for an esports-focused investment firm, the one area where Bitkraft won’t invest is in Esports teams. instead the focus is on everything that can enable gaming. “We take a broader approach and we make investments in things that thrive on the backbone of a healthy esports industry,” said Baier-Lentz.

In addition to a slew of investments made into various game development studios, the company has also backed Spatial, which creates interactive audio environments; Network Next, a developer of private optimized high speed networks for gaming; and Lofelt, a haptic technology developers.

“Games are the driver of technological innovation and games have prepared us for human machine interaction,” says Baier-Lentz. “We see games and gaming content as the driver of a broader wave of synthetic reality. That would span gaming, sports, and interactive media. [But] we don’t only see it as entertainment… There are economic and social benefits here that are opened up once we transcend between the physical and the digital. I almost see it as the evolution of the internet.”

Dell sells RSA to consortium led by Symphony Technology Group for over $2B

Dell Technologies announced today that it was selling legacy security firm RSA for $2.075 billion to a consortium of investors led by Symphony Technology Group. Other investors include Ontario Teachers’ Pension Plan Board and AlpInvest Partners.

RSA came to Dell when it bought EMC for $67 billion in 2015. EMC bought the company in 2006 for a similar price it was sold for today, $2.1 billion. The deal includes several pieces, including the RSA security conference held each year in San Francisco.

As for products, the consortium gets RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence — in addition to the conference. At the time of the EMC acquisition, in a letter to customers, Michael Dell actually called out RSA as one of the companies he looked forward to welcoming to the Dell family after the deal was completed:

I am excited to work with the EMC, VMware, Pivotal, VCE, Virtustream and RSA teams, and I am personally committed to the success of our new company, our partners and above all, to you, our customers.

Times change however, and perhaps Dell decided it was simply time to get some cash and jettison the veteran security company to go a bit more modern, as RSA’s approach no longer aligned with Dell’s company-wide security strategy.

“The strategies of RSA and Dell Technologies have evolved to address different business needs with different go-to-market models. The sale of RSA gives us greater flexibility to focus on integrated innovation across Dell Technologies, while allowing RSA to focus on its strategy of providing risk, security and fraud teams with the ability to holistically manage digital risk,” Dell Technology’s chief operating officer and vice chairman Jeff Clarke, wrote in a blog post announcing the deal.

Meanwhile, RSA president Rohit Ghai tried to put a happy spin on the outcome, framing it as the next step in the company’s long and storied history. “The one constant in every episode of our existence has been our focus on the success of our customers and our ability to endure through market disruption by innovating on behalf of our customers,” he wrote in a blog post on the RSA company website.

The deal is subject to the normal kinds of regulatory approval before it is finalized.

VMware completes $2.7 billion Pivotal acquisition

VMware is closing the year with a significant new component in its arsenal. Today it announced it has closed the $2.7 billion Pivotal acquisition it originally announced in August.

The acquisition gives VMware another component in its march to transform from a pure virtual machine company into a cloud native vendor that can manage infrastructure wherever it lives. It fits alongside other recent deals like buying Heptio and Bitnami, two other deals that closed this year.

They hope this all fits neatly into VMware Tanzu, which is designed to bring Kubernetes containers and VMware virtual machines together in a single management platform.

“VMware Tanzu is built upon our recognized infrastructure products and further expanded with the technologies that Pivotal, Heptio, Bitnami and many other VMware teams bring to this new portfolio of products and services,” Ray O’Farrell, executive vice president and general manager of the Modern Application Platforms Business Unit at VMware, wrote in a blog post announcing the deal had closed.

Craig McLuckie, who came over in the Heptio deal, and is now VP of R&D at VMware, told TechCrunch in November at KubeCon, that while the deal hadn’t closed at that point, he saw a future where Pivotal could help at a professional services level, as well.

“In the future when Pivotal is a part of this story, they won’t be just delivering technology, but also deep expertise to support application transformation initiatives,” he said.

Up until the closing, the company had been publicly traded on the New York Stock Exchange, but as of today Pivotal becomes a wholly-owned subsidiary of VMware. It’s important to note that this transaction didn’t happen in a vacuum where two random companies came together.

In fact, VMware and Pivotal were part of the consortium of companies that Dell purchased when it acquired EMC in 2015 for $67 billion. While both were part of EMC and then Dell, each one operated separately and independently. At the time of the sale to Dell, Pivotal was considered a key piece, one that could stand strongly on its own.

Pivotal and VMware had another strong connection. Pivotal was originally created by a combination of EMC, VMware and GE (which owned a 10% stake for a time) to give these large organizations a separate company to undertake transformation initiatives.

It raised a hefty $1.7 billion before going public in 2018. A big chunk of that came in one heady day in 2016 when it announced $650 million in funding led by Ford’s $180 million investment.

The future looked bright at that point, but life as a public company was rough and after a catastrophic June earnings report, things began to fall apart. The stock dropped 42 percent in one day. As I wrote in an analysis of the deal:

The stock price plunged from a high of $21.44 on May 30th to a low of $8.30 on August 14th. The company’s market cap plunged in that same time period falling from $5.828 billion on May 30th to $2.257 billion on August 14th. That’s when VMware admitted it was thinking about buying the struggling company.

VMware came to the rescue and offered $15.00 a share, a substantial premium above that August low point. As of today, it’s part of VMware.

America’s largest companies push for federal online privacy laws to circumvent state regulatory efforts

As California moves ahead with what would be the most restrictive online privacy laws in the nation, the chief executives of some of the nation’s largest companies are taking their case to the nation’s capitol to plead for federal regulation.

Chief executives at Amazon, AT&T, Dell, Ford, IBM, Qualcomm, Walmart and other leading financial services, manufacturing and technology companies have issued an open letter to congressional leadership pleading with them to take action on online privacy, through the pro-industry organization, The Business Roundtable.

“Now is the time for Congress to act and ensure that consumers are not faced with confusion about their rights and protections based on a patchwork of inconsistent state laws. Further, as the regulatory landscape becomes increasingly fragmented and more complex, U.S. innovation and global competitiveness in the digital economy are threatened,” the letter says.

The subtext to this call to action is the California privacy regulations that are set to take effect by the end of this year.

As we noted when the bill was passed last year there are a few key components of the California legislation, including the following requirements:

  • Businesses must disclose what information they collect, what business purpose they do so for and any third parties they share that data with.

  • Businesses would be required to comply with official consumer requests to delete that data.

  • Consumers can opt out of their data being sold, and businesses can’t retaliate by changing the price or level of service.

  • Businesses can, however, offer “financial incentives” for being allowed to collect data.

  • California authorities are empowered to fine companies for violations.

There’s a reason why companies would push for federal regulation to supersede any initiatives from the states. It is more of a challenge for companies to adhere to a patchwork of different regulatory regimes at the state level. But it’s also true that companies, following the lead of automakers in California, could just adhere to the most stringent requirements, which would clarify any confusion.

Indeed, many of these companies are already complying with strict privacy regulations thanks to the passage of the GDPR in Europe.

Startups Weekly: Peloton’s 29 secret weapons

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about a new e-commerce startup, Pietra. Before that, I wrote about the flurry of IPO filings.

Remember, you can send me tips, suggestions and feedback to [email protected] or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.

What’s new?

Peloton revealed its S-1 this week, taking a big step toward an IPO expected later this year. The filing was packed with interesting tidbits, including that the company, which manufacturers internet-connected stationary bikes and sells an affiliated subscription to its growing library of on-demand fitness content, is raking in more than $900 million in annual revenue. Sure, it’s not profitable, and it’s losing an increasing amount of money to sales and marketing efforts, but for a company that many people wrote off from the very beginning, it’s an impressive feat.

Despite being a hardware, media, interactive software, product design, social connection, apparel and logistics company, according to its S-1, the future of Peloton relies on its talent. Not the employees developing the bikes and software but the 29 instructors teaching its digital fitness courses. Ally Love, Alex Toussaint and the 27 other teachers have developed cult followings, fans who will happily pay Peloton’s steep $39 per month content subscription to get their daily dose of Ben or Christine.

“To create Peloton, we needed to build what we believed to be the best indoor bike on the market, recruit the best instructors in the world, and engineer a state-of-the-art software platform to tie it all together,” founder and CEO John Foley writes in the IPO prospectus. “Against prevailing conventional wisdom, and despite countless investor conference rooms full of very smart skeptics, we were determined for Peloton to build a vertically integrated platform to deliver a seamless end-to-end experience as physically rewarding and addictive as attending a live, in-studio class.”

Peloton succeeded in poaching the best of the best. The question is, can they keep them? Will competition in the fast-growing fitness technology sector swoop in and scoop Peloton’s stars?

In other news

Last week I published a long feature on the state of seed investing in the Bay Area. The TL;DR? Mega-funds are increasingly battling seed-stage investors for access to the hottest companies. As a result, seed investors are getting a little more creative about how they source deals. It’s a dog-eat-dog world out there, and everyone wants a stake in The Next Big Thing. Read the story here.

Rounds of the week

DISRUPT SF 530X350 V1 1

Time to Disrupt

Don’t miss out on our flagship Disrupt, which takes place October 2-4. It’s the quintessential tech conference for anyone focused on early-stage startups. Join more than 10,000 attendees — including over 1,200 exhibiting startups — for three jam-packed days of programming. We’re talking four different stages with interactive workshops, Q&A sessions and interviews with some of the industry’s top tech titans, founders, investors, movers and shakers. Check out our list of speakers and the Disrupt agenda. I will be there interviewing a bunch of tech leaders, including Bastian Lehmann and Charles Hudson. Buy tickets here.

Listen

This week on Equity, TechCrunch’s venture capital-focused podcast, we had Floodgate’s Iris Choi on to discuss Peloton’s upcoming IPO. You can listen to it here. Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast and Spotify.

Learn

We published a number of new deep dives on Extra Crunch, our paid subscription product, this week. Here’s a quick look at the top stories: