In partnership with

In Today’s Edition 

• Breaking the J-Curve 

• Reddit files to list IPO on NYSE under the ticker RDDT

• The mobile S-curve ends, and the AI S-curve begins 

Find your next stock investment

Ever wish you could know which stocks the most profitable investors in the world are buying?

Now you can!

The Yellowbrick Road is a free, daily email that shares the best stock investment ideas from the most profitable investors in the world.

We share stock investment ideas from:

• Billion-dollar hedge funds

• Profitable stock analysts

• Millionaire investors

• and more…

Sign up for our free, daily newsletter to start receiving the best stock investment ideas each morning (like when we shared Carvana ($CVNA) before it popped 822% in just 4 months).

🚀Startups Nuts

Breaking the J-Curve 

Venture capital math is smart in theory, but stupid in practice. It’s easy to get caught in metrics like the ideal LTV/CAC ratio. However, be skeptical of rigid J-curve formulas when trying to build a sustainable, growing business long-term. Find an unfair, low-cost source of pipeline that gets you out of the J-curve game.

Other News

• MMI, a microsurgery robotics startup, raised $110 million

• EigenLayer, a crypto startup, raised $100 million

• Clumio, a cloud data backup and recovery company, raised $75 million

• Fabric, a health care management software developer, raised $60 million

• Simetrik, a financial records automation startup, raised $55 million

• Reprieve Cardiovascular, a medical device company, raised $42 million

• Jasper, the San Francisco writing assistant startup, has acquired Stability AI's image platform, Clipdrop.

🏭Business Nuts 

Reddit files to list IPO on NYSE under the ticker RDDT

Reddit on Thursday filed to go public. Its market debut will mark the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019. The social media company, founded in 2005 by technology entrepreneurs Alexis Ohanian and Steve Huffman, has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook.

Other News

• Nvidia had a great Wednesday, with a stellar, expectation-beating earning report. It had an even better Thursday, adding $277B to its market cap. That beats the single-day value gain record that Meta set earlier this month.

• Google cut a deal with Reddit for AI training data. The company will pay Reddit ~$60m per year for real-time access to the social platform’s data, with which it’ll train its AI models

• The IRS claims that US millionaires and billionaires evade $150B+ in taxes every year, something it intends to crack down on with new federal funding

• Buzzfeed sold Complex, the media brand it bought for ~$300m in 2021, to e-commerce platform Ntwrk for $108.6m and is reducing its workforce by 16%. Ntwrk said the deal will allow it to create a “next-generation content and shopping experience.

• Vice announced it’s abandoning Vice.com and laying off hundreds of employees. Rather it’s shifting to a studio model with an emphasis on social media.

• Sam Altman controls an 8.7% stake in Reddit - 4.5% of its Class A shares and 9.3% of its Class B shares

📱Tech Nuts

The mobile S-curve ends, and the AI S-curve begins 

S-curve products are fueled by novelty. This is why there is a rush of new users without much marketing effort whenever there are major tech releases. There is both high growth and high churn in the early stages of an S-curve. The skills needed to succeed in a late S-curve market are very different. Investors will be looking for products that are radically different. A good design can help differentiate late S-curve products.

Other News

• Google paused Gemini’s text-to-image generator after the AI tool began producing historically inaccurate images of Black Vikings and Nazi soldiers. Google acknowledged that while diversity is good, this was “missing the mark.”

• Apple’s iOS 17.4 update brings an increased encryption level to your iMessage chats to protect against quantum computing attacks — a type of breach that has yet to happen

• NVIDIA just released "Chat with RTX", which lets you create a custom GPT chatbot trained on your own local data - including documents, videos, and more

• Microsoft announced the public launch of the Python Risk Identification Toolkit (PyRIT), a tool for identifying risks in generative AI systems.

🎁Miscellaneous

Varda Space, Rocket Lab nail first-of-its-kind spacecraft landing in Utah 

Varda Space Industries' in-space drug manufacturing capsule has finally returned to Earth after more than eight months in space. The capsule landed in the Utah desert, marking the successful conclusion of Varda's first experimental mission to grow pharmaceuticals in orbit. This was the first time a commercial company landed a spacecraft on US soil. The mission launched in June last year and was supposed to just be a month long, but it was extended due to issues obtaining a commercial reentry license.

💡What else are we reading and seeing?

• Americans are working fewer hours

• How KKR helped JPMorgan seal a key victory over private credit

• The most helpful laws of productivity to get more done

• Nvidia declares AI a whole new industry 

• Private equity payouts at major firms plummet 49% in two years

• Winning Strategies for Applied AI Companies

😎Fun Fact

Top 25% of TikTok users produce 98% of content

🐦Joke of the Day

Enjoy The Cash Nut? Consider forwarding it to a co-worker, colleague, classmate, or whoever you think might be interested.