Social Leverage Letter | Issue #43

Masters of the Bubbleverse, Rescinded Job Offers Rising, and Emerging Market Payments

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READING

Masters of the Bubbleverse – Secretive hedge fund Tiger Global changed the rules on tech investing. Then it all went bad. And although Tiger Global is trying to assure investors that its business is “set up to weather storms when they arise,” the reality is few hedge funds have survived such a steep drawdown.

The labor market remains hot, but businesses are pulling back job offers to recruits they were courting just a short time ago. Businesses across industries are rescinding job offers they made just a few months ago, in a sign the tightest labor market in decades may be showing cracks. Startups, companies in the ad-tech industry, and those that are pre-IPO are the least stable right now.

WHAT ELSE WE'RE READING

Here's a few other stories that caught our eye over the past week.

LISTENING

Patrick O’Shaughnessy interviews Sebastian Kanovich, the CEO of dLocal. The company allows global companies like Uber, Spotify, and Google to service billions in emerging markets. Patrick covers dLocal’s playbook for facilitating payments, what Sebastian has learned about building great APIs, and how he challenges himself to improve personally.

Sebastian Kanovich - Powering Emerging Markets Payments - [Founder’s Field Guide, EP. 56]

Listen to this episode from Invest Like the Best with Patrick O'Shaughnessy on Spotify. My guest today is Sebastian Kanovich, CEO of payments company dLocal. Sebastian founded dLocal in 2016 to bridge the infrastructure gap between payments in developed and emerging markets. Since then, the initially bootstrapped start-up has enabled global merchants like Uber, Spotify, and Google to service billions of emerging market users. And in doing so, dLocal has created $10bn of equity market value, having IPOd last year. Our discussion covers dLocal’s playbook for facilitating payments in emerging countries, what Sebastian has learned about great API building, and how he challenges himself to improve personally. Please enjoy my conversation with Sebastian Kanovich. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to you by Pilot. Pilot handles your startup’s finance, accounting, and tax prep needs, so you can focus on what matters most—building your business. Join over 1,000 startups that rely on Pilot to help them scale. Founder’s Field Guide listeners get 20% off their first six months. Get in touch with Pilot at https://pilot.com/founders. ----- Founder's Field Guide is a property of Colossus, LLC. For more episodes of Founder's Field Guide, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Show Notes [00:02:13] - [First question] - His take on global payments, what is interesting about this system today, and dLocal’s role within it [00:04:06] - Approaching a country that could benefit from low-friction payments and the playbook for helping them improve their system [00:06:10] - Differences between being an API business versus a protocol one [00:07:13] - What companies handle these systems outside of emerging markets and why they haven’t entered the emerging market space [00:08:59] - A specific example of the steps involved in getting a country integrated into global payments for an app or service provider [00:11:22] - Whether or not they interact with consumers [00:12:09] - The trading and foreign exchange component of global transactions [00:13:16] - Country specific product teams and consolidating their process [00:14:52] - What he would look for in early-stage payment companies to invest in [00:16:23] - Defining excellent when it comes to working with regulators and regulatory environments [00:17:53] - Their role in digital globalization and trends that might arise in the future [00:19:52] - Ways that low-friction payments have helped accelerate regional innovation [00:21:31] - The unit economics and costs of a single payment [00:24:05] - What the source of cost is to process a payment or transaction [00:25:10] - Variables in currencies that make them desirable to work with [00:26:38] - Lessons learned from distribution and customer acquisition of their service [00:29:23] - Advice he would give to developers building API products [00:31:16] - An example of wanting to build a function into an API that was never built [00:32:40] - How they’ve been able to move and scale so fast [00:34:23] - Ways their business could most improve [00:35:14] - The operating system he uses to run the company [00:36:38] - Ways he’s most improved or gotten better as a CEO over the years [00:37:58] - Why deep humility is such an integral part of his character [00:38:30] - The biggest mistake they’ve ever made as a business and what they learned [00:39:20] - The kindest thing anyone has ever done for him

WHAT ELSE WE'RE LISTENING TO

A few more podcasts you might like:

WATCHING

Solana unveiled Saga, an Android web3 smartphone, with the goal of creating a seamless mobile crypto user experience without having to be tethered to a desktop.

DEAL FLOW

The latest venture funding from around the globe:

CRYPTO CORNER

News on Crypto/web3:

JOB BOARD

Explore openings at our portfolio companies:

Featured Jobs:

Check out all of our portfolio companies at Social Leverage.

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Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.