MONEY: FACEBOOK’S FINAL FRONTIER

Fast Company, June 18th, 2014

See full piece here

Change won’t come, though, until the products are “not just a little bit better but five times better,” says Kristo Kaarnmann, cofounder of the foreign exchange disrupter TransferWise, one of the startups Facebook tried to partner with on its e-money product. One five-times-better possibility? WhatsApp, the drop-dead simple messaging service that’s already used by more than 500 million people around the world. Facebook is looking for a way to make money from its expensive purchase, one that ideally wouldn’t force Facebook to trample upon the startup’s anti-advertising pledge. “WhatsApp is potentially a massive m-payment system,” says Lou Kerner, a venture capitalist and founder of the Social Internet Fund. “If you look at WeChat [a competing messaging platform], it’s already a payment system.” Or perhaps

Instagram: Conference Call and Deck

In the wake of Facebook’s acquisition of Instagram, Lou Kerner recently hosted a conference call and published a new deck profiling the deal. Robert Scoble, Peter Relan and Vic Singh (whose slides are below), participated in the call.

To listen to a replay of the call, dial 888-632-8973, or 585-295-6791 (if outside the U.S.), The replay code is 599-456-76#

The Social Internet

While I thoroughly enjoyed my time as a Wall Street analyst, compliance issues hampered my ability to blog on SecondShares.  Now that I’m back angel investing, I look forward to sharing thoughts and analysis on the social and mobile companies I refer to as “Social Internet” companies.  Just as the siloed internet companies disrupted the offline leaders (e.g. Amazon v Walmart), Social Internet companies that are BORN social, will disrupt incumbent firs internet leaders.  I first outlined my thesis in the only real thought piece I wrote a year ago.  I now update those thoughts in a deck “The Social Internet“.  While the deck is meant to be given live (which I love doing, as it’s such a fun dynamic topic to discuss), a lot of value can be derived by reviewing the slides.   Enjoy the deck, share it, and I look forward to future posts.

This Week In Private Shares Trading

The Facebook auction that took place on Wednesday cleared at a price of $31.25, flat versus last week, and implying a value of $77.2 billion.

Facebook had traded at its high of $31.50 for four straight weeks, beginning on March 9th, before moving down slightly.  The high price of $31.50 implied a value of $77.8 billion.

Figure 1: Facebook Shares Trading at $31.25, Implying a Value of Just over $77 BN

Source: Company data, Wedbush Securities, Inc.