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Turner Novak.🍌🧢 Profile picture
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Feb 11, 2019 • 4 tweets • 2 min read
Agree w/ sentiment on this one... Reddit raising $150M @ $3B from Tencent seems off-brand, curious what direction they go.

Recent AMA with Cheddar hints at more partnerships w/ publishers, and monthly video views now at 1.4B per month, up from 1B in Sept

techcrunch.com/2019/02/11/red…
Reddit experimenting with tipping individual users.

Per announcement comments, Reddit has a 18.5% take rate, Stripe gets 3%, and the tipped user keeps 78.5%.

This is very significant IMO. Lots of great individual contributors that monetize off-platform.

engadget.com/2019/02/27/red…
This highlights both the power and limitations of Reddit. It really needs to provide more customization tools to subreddits if it wants to keep them. Worth watching how well the standalone CAV site does to see if the off-platforming trend continues.

wired.com/story/change-m…
Reddit has turned subreddits into an endless feed, and showing post-previews in this way gets people to read before clicking in.

I wonder how big this ad business could become? 🤔

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More from @TurnerNovak

Turner Novak.🍌🧢 Profile picture
Feb 3
Quick @BananaCap_ Q4 update (unaudited)

- Fund 1 at 1.83x MOIC (gross), 1.54x TVPI (net of fess, carry)
- All 🍌🧢 at 1.57x and 1.41x
- Gross (Net) IRR on Fund 1 at 276% (205%)
- Fund 1 was 73% deployed
- $26.2m AUM ($16.2m in SPVs), ~81% in follow-ons (some my prev investments)
66% of Fund 1 capital is invested at Pre-Seed/Seed, and 54% with US HQs (JOKR + Umba skew this, US HQs but operate mostly in LatAm + entirely in Africa)

In Q4 we deployed more capital at Pre-Seed/Seed than Series A and beyond, and increased ecom + fintech exposure (mostly ex-US)
Outside of North America, our two most active markets were France and Pakistan with three new investments in each country. I'm blaming @2lr and @aatif_awan for this, but do think both are good things 😂
Read 15 tweets
Turner Novak.🍌🧢 Profile picture
Sep 23, 2021
Very excited to invest in VINN and support @calebbernabe_ and team!

They have built an incredible product and the foundations of capital efficient business in a trillion dollar market.

Quick thread on my largest publicly announced investment to-date:

forbes.com/sites/ninawolp…
VINN has a crazy business model: they help consumers buy cars online but hold zero of their own inventory.

It’s an online marketplace with a very simple and effective product connecting consumers and cars at local dealerships.
There's a few other companies that sell cars online; however their models are very similar to traditional dealers. Dealerships can be great businesses, yet can’t have high market share.
Read 15 tweets
Turner Novak.🍌🧢 Profile picture
Sep 12, 2021
Here’s the story of how I almost sold my company to Time Warner in 2000 for hundreds of billions of dollars - but instead walked away with nothing.

🧵 🧵 👇 👇
It was Nov 19th, 1999. I had spent the last 34 hours (maybe 35 hours) coding.

But that wasn’t the full story - I‘d been building non-stop the first 34 years of my life.

I learned to code in the hospital the night I was born and have been inseparable from a PC ever since.
Same with my co-founder.

We met that first night in the newborn ward.

He moved in with us at age six and my parents legally adopted him at 11.

We had grown up building together.

But we were burnt out.
Read 11 tweets
Turner Novak.🍌🧢 Profile picture
Apr 16, 2021
Quick update thread on the Stitch Fix thesis:
The tl;dr is Stitch Fix has permission from 3.9m consumers to auto ship them products. It’s ecom’s “recommended bar” but IRL and converts at 10-20%. They know what will sell before its even produced. Can monetize this from suppliers, with private label, + their Direct Buy app.
The market didn’t like Q4 earnings, which were impacted by lockdowns + freight issues over the holidays. SFIX also recognize revenue at checkout which (usually) happens after customers receive the order and decide what to keep / send back. Could be impact from Direct Buy ramping
Read 9 tweets
Turner Novak.🍌🧢 Profile picture
Feb 25, 2021
“Online friend finding and social discovery is currently growing twice as fast as online dating, and we think it will be a 2x larger market as well" - Match Group

👀 👀 👀
fwiw, all these apps will add audio rooms (long $API), video rooms, games, messaging tools that reduce friction of self expression (AR filters, stickers), subscriptions, etc.

Winners will figure out moderation at scale, move fastest on new features, and crack long-term retention
we may see some vertical products emerge IE friend finding for gamers. Winners will be ones who build a unique, defensible social / interest graph (we also may just see these swallowed over time by co's with existing matching algo's and monetization models like Match, Yubo, etc)
Read 5 tweets
Turner Novak.🍌🧢 Profile picture
Feb 23, 2021
Spotify's Stream On event:

"By 2025, we could have 50m creators on our platform, whose art is enjoyed by 1b users around the world. We want to be the place educators, entrepreneurs, storytellers, and artists can touch the world through audio" - @eldsjal

Spotify says it has 40% market share of music streaming and will get to a similar share in podcasting.

Paid-audio increases from $7b to $40b/yr. Combined with podcasting, becomes a $55b opportunity.

…eamoninvestordiscussion.byspotify.com
One of the more interesting things Spotify's doing: investors have always focused on perpetually low gross margins due to payouts to record labels. The biggest expense for most labels is marketing. Spotify's now starting to capture some of that marketing spend on its ad platform.
Read 4 tweets

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