Episode Summary
Executive Summary: This episode of This Week in Startups features a news roundtable with host Jason Calacanis, early-stage investor Monique Woodard, and Zapier CEO Wade Foster. They discuss the contentious relationship between tech and the press, the rise of podcasting as an alternative, the unionization of Kickstarter employees, the 'gray new world' of aging demographics, and the challenges of content moderation on Twitter. The conversation also covers Blue Apron's decline, Lambda School's controversies, and the potential of no-code platforms.
Main Topics: Tech vs. Press (Priority: 5/5): The growing tension between tech founders/investors and journalists, exemplified by the Balaji Srinivasan vs. Recode incident. The panel argues that journalists often misrepresent or sensationalize stories, leading founders to avoid traditional media and instead control their narratives through podcasts and newsletters. Rise of Podcasting and Direct Communication (Priority: 4/5): Podcasting and platforms like Substack allow founders to communicate directly with audiences without media distortion. Jason Calacanis notes his podcast reaches 25 million listeners annually, making traditional press less necessary. Kickstarter Unionization (Priority: 4/5): Kickstarter employees voted to unionize (46-37), with average salary $97k. The panel debates whether tech workers need unions, with Monique Woodard seeing potential benefits for worker protections, while Jason Calacanis argues it could lead to salary compression and reduced flexibility. Gray New World: Aging Demographics (Priority: 4/5): Monique Woodard discusses her investment focus on demographic changes, including the aging population. Key stats: 72 million boomers spend $3.2 trillion annually, 79% want to age in place. Startups like SilverNest (senior roommate matching) and Papa (college students helping seniors) address loneliness and care needs. Twitter's Misinformation Fight (Priority: 3/5): Twitter's proposed community-based fact-checking system is criticized as easily weaponized. The panel prefers expert-driven fact-checking over crowd-sourced moderation. Blue Apron's Collapse (Priority: 3/5): Blue Apron's market cap fell from $1.9B to $58M (down 97%). The panel attributes this to poor unit economics and going public before achieving product-market fit. Lambda School Controversy (Priority: 3/5): Lambda School faces scrutiny over job placement rates (86% claimed vs. 50% reported to investors). The panel defends income-sharing agreements as innovative but stresses the need for accurate marketing.
Key Arguments: Founders should avoid talking to journalists on the phone; use email and publish answers on their own blogs to avoid misquotes. Podcasting and newsletters allow founders to control their narratives and build direct audiences, reducing reliance on traditional media. Unions in tech could protect workers from discrimination but may also lead to salary compression and reduced flexibility for high performers. The aging population represents a massive underserved market for startups focusing on aging in place, loneliness, and care. No-code platforms like Zapier democratize entrepreneurship by allowing non-developers to build and automate businesses. Twitter's community-based fact-checking is vulnerable to manipulation; expert-driven moderation is preferable.
Data Points: Zapier ARR: $50 million - Zapier's annual recurring revenue as of 1.5 years ago, with only $1 million in total investment. Zapier Employees: 300 - Fully distributed team, profitable since 2014. Blue Apron Market Cap Decline: 97% - From $1.9B IPO to $58M current market cap. Boomer Spending: $3.2 trillion annually - 72 million boomers in the U.S. spend this amount. Kickstarter Average Salary: $97,000 - Average salary at Kickstarter, where employees voted to unionize. Lambda School Placement Rate Discrepancy: 86% vs. 50% - Claimed 86% placement rate vs. 50% reported to investors in May 2019.
Pivotal Quotes: "Founders, my advice is never talk to journalists on the phone. You will likely be misquoted and your answers will not be as crisp as email." — Jason Calacanis: Advice to founders on dealing with the press, following the Balaji vs. Recode incident. "We need to be investing in more people who are creating platforms and creating new companies. And we also need to figure out how to better reward creatives for creating things on TikTok and on Vine that eventually go viral." — Monique Woodard: Discussing the underrepresentation of people of color in funding and the need to reward cultural creators. "We sort of took the money we need, went through YC, and then did the seed round right after, and then sort of treated it like that was the last money we would ever see." — Wade Foster: Explaining Zapier's bootstrapping approach that led to profitability with minimal investment.
Implications: The episode highlights a shift away from traditional media toward direct-to-audience platforms like podcasts. For founders, controlling their narrative is crucial. The aging population presents a massive opportunity for startups. No-code tools are democratizing entrepreneurship, potentially reducing the need for technical co-founders. The debate over tech worker unions and content moderation will continue to evolve.
About This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.