Freakshow 8/19/20

All versus Apple, Oracle to Buy TikTok WTF!!, Edtech Boom, The Democratization of Venture Capital

I am back in SF!! Back to my attic... Weather is beautiful and warm, but we can't get out of the house because of the wildfires smoke... Northern California is burning (again), and we are stuck at home (again).

Before the show, I thought to myself: "Great I'm at home I have my podcast setup back, I'll be able to play music and sound effects" but I misconfigured my Rodecaster Pro in Restream. Hence, I look like an idiot wiggling around, thinking that you can hear the music just like me when you are not. Another sweet moment of solitude... Anyway, I guess this is what makes the show authentic lol. YOU CAN WATCH IT LIVE HERE!!

This week, we will talk with Marvin about the new cockfight between Epic, Facebook, Apple, and Google - Oracle playing the troublemaker in the negotiations between Microsoft and TikTok - the boom of the Edtech and the unbundling of Venture Capital with the rise of Rolling Funds.

All versus Apple...

It looks like everyone's ganging on Apple for anticompetitive conduct.

The first one was Epic, the Fortnite game's creator, who tried to bypass Apple's mobile payment system. They consider the 30% commission on app transactions a robbery and decided to develop an alternative payment process. Soon after, Apple removed Fortnite from the App Store for violating App Store policies.

Is this removal not, in fact, a perfect demonstration of antitrust behavior?

Epic immediately announced that it is suing Apple for anticompetitive conduct... They are not the only ones complaining about these 30% cut. A lot of app developers have been criticizing Apple and Google for the same thing. Beyond this shameful toll fee that Apple takes on every transaction, it is rather the lack of consideration and support that Apple shows to its developer partners. Tim Cook said during the Congressional hearing: "We treat every developer the same." but the reality is very different. It's common knowledge that Apple will yank an app from the App Store with little notice or warning. Apple is now paying the price for its unfair policy.

Soon after Apple removed Fortnite from its App Store, Google took the same decision. Epic then decided to file a lawsuit against Google. That's two claims in one day!!

The situation on Android is slightly different as there are alternative app stores available, but still, Play remains the most prominent one.

Facebook, who never misses an excellent opportunity to trip someone up, is now joining Epic in its quest.

The social network said Friday that it asked Apple to waive its fee for a new feature that lets Facebook pages host paid virtual events like yoga and cooking classes while businesses shift to online activities due to the global pandemic. Apple refused.

It's kind of funny. It's like using Beelzebub to cast out the Devil.

Let's just remember that Tim Cook and Mark Zuckerberg are not the best of friends. Apple's CEO has long criticized Facebook's privacy management.

Oracle to buy TikTok WTF!!!

So the TikTok soap opera is going off the rails. We already expressed our surprise about Microsoft's interest in TikTok, this time; it's Oracle who says they have started discussions with ByteDance... What does Oracle have to do with this?

Well, indeed, Oracle sells not only database software, but also marketing and advertising tools. The 160 million daily active users can indeed provide Oracle with a ton of valuable data, but I find that a bit far-fetched...

In my opinion, they're just trying to piss off Microsoft, by forcing up the price of TikTok. ByteDance investors, who are close to Oracle, want that to happen as well: The last thing these investors want to do is to give away the crown jewel in a fire sale.

Remember that Oracle is quite close to Washington, and maybe Trump needs an ally to force TikTok or Microsoft's hand... Not mentioning the close ties that exist between Oracle, the CIA, and NSA...

Beyond this Game of Thrones scenario, I think there is in this TikTok story, an interesting debate between two dueling visions of the internet. The first is an older vision: the idea that the internet should, in a neutral fashion, connect everyone, and that blocking and censorship of sites by nation-states should be rare and justified by more than the will of the ruler. The second and newer vision, of which China has been the leading exponent, is "net nationalism," which views the country's internet primarily as a tool of state power. Economic growth, surveillance, and thought control, from this perspective, are the internet's most important functions. If you are interested in this controversy, I highly recommend reading this article from the New York Times.

Edtech is booming (finally)!

With COVID, the world of Education had to face a new reality, Remote Schooling. School closures have led to the digitalization of learning, exams, and homework. Students, teachers, and institutions had to adapt to a new way of learning suddenly.

Edtech is at the forefront of this transformation. Long kept on the sidelines, Education is now forced to rush to adopt a technology that it has rejected for too long. For the first time in a long time, it seems that the education system is ready for this long-overdue digital change. Students won't complain about it; digital goes hand in hand with their generation.

At the same time, remote schooling is not an easy task. There are many distractions at home: Netflix, YouTube, Playstation, Xbox... and it's hard to recreate the benefits of face-to-face when everyone is behind a screen.

The Slow & Steady Unbundling (aka Democratization) of Venture Capital

I highly recommend you to read Marvin's last post on this matter. I am preparing a post about this long-due revolution of the Venture Capital space.

The "Rolling VC Funds" concept introduced by Angellist is getting a lot of attention lately and maybe one of the most exciting developments in VC. I am very proud that Ilan and I were among the first to see this as a great opportunity. Diaspora Ventures is part of the Early Access Program, and even though it was more like a plunge into the unknown, we are already starting to see the positive impact this new model can bring to the industry.

That's all for this week, folks. You can now get back to your normal activities.