Apple's Diminishing Appeal: A Critical Look at Innovation
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Chapter 1: The Apple Event and Its Impact
Recently, Apple conducted one of its annual product launches, showcasing the M1-Ultra chip alongside a new 27-inch display. In a discussion with @Om, a tech enthusiast who owns a high-end Apple display, it became evident that even he is intrigued by the affordability of the new model. What could be the reason behind this allure?
The most significant revelation this week, aside from the ongoing tragedy in Ukraine, is the announcement from Tiger Global Partners. They intend to invest $1 billion of their own funds into seed funds as Limited Partners, averaging around $300 million annually.
In Om Malik's analysis, the excitement revolved around the new Apple Display. After reading his insights, I decided to list my Apple XDR Display on eBay and purchase the new model along with the M1-Ultra version of the Apple Studio. Apple's innovations consistently create a sense of urgency that makes it difficult to resist. I highly recommend reading Om's article, which is featured prominently in this week's newsletter.
Section 1.1: The Importance of Seed Funds
The significance of Tiger's investment in seed funds cannot be overstated. This stage in the venture capital process is crucial for fostering the next generation of Unicorns. The most successful startups often emerge from adept seed managers, making it wise for investors to engage at this early stage rather than waiting for later rounds.
Reflecting on my experience at ADV between 2016 and 2020, my team and I, including Lee Straford and David Carr, sought partnerships with the leading seed investors in the UK. We focused our efforts on twenty-one funds and committed as Limited Partners to seven of them. However, we quickly recognized that being an LP was only a secondary strategy. Our offerings to seed funds expanded significantly, and our top-performing product managed to grow faster than the LP investments themselves, yielding greater returns for fund managers.
Section 1.2: The Shift Towards DAOs
Meanwhile, the venture capital landscape is evolving with the introduction of decentralized autonomous organizations (DAOs). Bessemer Ventures and Bain Capital are both exploring this new structure. This week also saw President Joe Biden announce an extensive examination of how cryptocurrency could influence the US dollar, with Jack Dorsey predicting the dollar's decline as a global reserve currency, potentially replaced by Bitcoin.
Chapter 2: Apple's Technological Advancements
Reflecting on another Apple event, I found it noteworthy how Apple unveiled the Mac Studio Ultra, a device comparable in size to three hard drives yet delivering 25% of the power of IBM's Watson Supercomputer at a price point of around $8,000.
The announcements were largely anticipated, with the new iPad Air featuring the M1 chip and a fresh iPhone SE. Yet, the Apple Studio Display has captivated my attention. Despite owning the top-tier XDR Display with exceptional brightness and a stunning 6K resolution, I find myself envious of the new Studio Display, priced between $1,600 and $2,300.
Section 2.1: The Future of Digital Currency
In light of recent developments, President Biden's executive order emphasizes the urgency of exploring a US Central Bank Digital Currency (CBDC). This initiative aims to enhance transaction efficiency, particularly for cross-border payments, while addressing potential risks associated with private digital assets. Over 100 countries are currently considering or testing their own CBDCs.
Section 2.2: The Crypto Payments Landscape
Stripe has re-entered the cryptocurrency payments sector, providing comprehensive support for various crypto-related businesses. Their APIs now facilitate payment processing across fiat currencies with built-in fraud prevention measures, marking a shift from their previous stance on Bitcoin as an asset rather than a means of exchange.
In conclusion, while Apple's recent innovations draw considerable attention, the landscape of venture capital and digital currency continues to evolve, promising exciting opportunities ahead.