Episode Summary
Executive Summary: The episode opens with a viral CNBC clip of investor Mark Minervini unable to explain Upstart, which Jason uses to stress preparation, honesty, and the danger of giving financial advice without understanding the business. He then defends YouTube’s decision to hide public dislike counts, argues about open standards and identity in Web3, and interviews Ready Games founder David Benham on NFT-based mobile avatar/fashion tools. The back half features Rachel Reporting’s Gen Z segment with Emily Herrera, whose women-focused syndicate highlights how younger investors use community, research, and values-driven investing to break into VC.
Main Topics: CNBC Upstart clip and the ethics of financial commentary (Priority: 5/5): Jason analyzes a resurfaced CNBC interview where Mark Minervini could not explain Upstart, framing it as a cautionary tale about unprepared market commentary, retail investor harm, and the need for real due diligence. How Jason prepares for media appearances (Priority: 4/5): He outlines his own CNBC preparation process: gather facts from his team, anticipate reactions, simplify the thesis, and make a prediction—presented as the standard Minervini failed to meet. YouTube hiding dislike counts (Priority: 4/5): Jason discusses YouTube’s move to remove public dislike totals, comparing it to Instagram hiding likes. He supports the anti-brigading intent but worries it softens useful audience feedback and weakens negative signal for creators. Web3, NFTs, and portable digital ownership (Priority: 5/5): In the David Benham interview, the discussion centers on moving from closed Web2 ecosystems to open, distributed ownership models where avatars, clothing, and digital goods can be owned, resold, and carried across platforms. Ready Games and the Icon NFT fashion/avatar platform (Priority: 5/5): Benham explains Ready Games’ evolution from no-code mobile games into social gaming tools and an avatar cosmetics system. Icon lets creators design, sell, and tokenize fashion items and potentially monetize secondary sales via royalties. Gen Z investing culture and the Wire Us syndicate (Priority: 4/5): Rachel interviews Emily Herrera about building a Gen Z and women-focused investing community. The conversation emphasizes beginner’s mindset, community-driven research, and unconventional entry paths into VC. Mentorship, community, and apprenticeship in VC (Priority: 4/5): The Gen Z segment closes on the importance of mentors, peer networks, newsletters, Slack groups, and apprenticeship-style learning as more effective VC entry points than traditional credentials alone.
Key Arguments: A stock pitch on national TV without knowing the company is a severe credibility failure and potentially harmful to investors. Good media preparation requires facts, context, reactions, and a clear thesis—not improvisation based on charts alone. YouTube’s dislike-count change may reduce harassment and brigading, but it also removes a useful public signal for viewers and creators. Web3’s promise is portability and ownership: digital objects should move across games/platforms rather than remain trapped in one company’s walled garden. NFTs become more meaningful when tied to smart, interactive game objects rather than static JPEG-style collectibles. Creators should be able to earn recurring royalties from resale and remixing, making digital fashion more like IP-rich music masters or Creative Commons content. Gen Z investors often prioritize values, community, and long-term mission alignment rather than purely short-term financial return. VC for young people is increasingly apprenticeship-based: learn through communities, memos, Twitter, and direct participation rather than only formal credentials.
Data Points: Upstart peak date: October 15 - Jason cites the day Upstart hit its peak after the CNBC appearance. Upstart share price peak: $390/share - Referenced as the stock’s peak around the viral CNBC moment. Upstart decline after appearance: 35% in 28 days - Jason notes the stock fell sharply after Minervini’s TV segment. Upstart move in four days: 25% - The CNBC guest said the stock was up about 25% in four days. Upstart valuation/trading level: $20 billion market cap; $254/share - Jason describes Upstart’s then-current market value and trading price. Upstart Q3 revenue: $228 million - Jason cites quarterly revenue as proof of rapid growth. Upstart growth rate: 3x year over year - Used to illustrate the company’s accelerating revenue scale. Disney+ worldwide users: 118 million - Jason references Disney’s subscriber base while discussing streaming and digital distribution. Potential global paid subscribers: 250–500 million - Jason predicts major streamers could reach this level over time. Monthly ARPU assumption: $10 per user - Used in a rough model for future streaming economics. YouTube scale: 770 million+ users - LinkedIn ad read mentions the platform’s professional network size; YouTube discussion later contrasts creator feedback mechanics. Masterworks AUM: $250 million+ - Podcast ad copy states the company’s assets under management. Ready Games creators: 2 million+ - Benham says the platform has over two million creators. Ready Games team expansion: 10 engineers - He says roughly 10 engineers rebuilt the creative experience over the last year. Government support in Canada: $1.5 million - Benham says the company has received Canadian support for research and development. Canada vaccination rate cited: 85–86% of ages 12+ fully vaccinated - Used in a pandemic update during the interview. Global gaming cosmetics spend: $40 billion - Benham frames cosmetics as a huge market opportunity. Royalty on resale: 5% - The creator/underlying NFT holder can receive ongoing revenue from secondary sales. Twitter/YouTube social mechanics: ratioing and brigading - Jason references these as examples of public discontent mechanisms. Gen Z retail investors during pandemic: 16% - Emily cites a Charles Schwab survey about new retail investors.
Pivotal Quotes: "What does Upstart do?" — Mark Minervini (as shown on CNBC): The moment that triggered Jason’s critique of the guest’s lack of preparation. "The reason why is that in Internet 2.0, it became about platforms and ad sales. ... Web3 is not going to be about personal identity. It's going to be a return back to, in some aspects, of Web 1." — David Benham / Jason discussion: Core thesis on identity, platform power, and decentralized ownership. "I would never put money or put human capital or attention behind any company or founder that I don't, I wouldn't sit down and have a chat with." — Emily Herrera: Her investment philosophy for The Wire Us syndicate.
Implications: The episode argues that media credibility, creator feedback, and digital ownership are all shifting. For investors and builders, it signals a premium on preparation, open standards, community-led discovery, and portable assets across games, platforms, and social networks.
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.