I can’t believe it is Labour Day weekend already. While this week was relatively quiet in New York with so many people on vacation, the finance team still had a number of important stories (and many more coming next week!).
We took you inside the talent war brewing at hedge fund D.E. Shaw, we dug into the Peloton S-1 to reveal the streaming fitness services’ major risks, and we gave you a look at how Amazon is getting creative (think race cars) to introduce its cloud clients to machine-learning technology.
In one of the more unusual stories from this week (and a great example of the work we’re doing with our new real estate beat), we reported on fundraising for a startup called Salaryo which provides financing for small businesses and startups to pay their security deposits on coworking spaces.
While the amount Salaryo raised was small ($US5.5 million), the company is trying to build on some of the momentum in the coworking space that saw Industrious raise $US80 million and Knotel secure $US400 million in financing in the last week alone. And that’s on top of WeWork’s $US47 billion valuation.
So if Salaryo is lending money to small companies to get fancy office space, does that mean we wont have any more multi-billion companies like Apple and HP that were founded out of garages? Are founders now going to be prioritising securing swanky digs over putting that funding back into building their business?
Separately, don’t forget to register for our Prime webinar with marijuana-analytics company Headset.
Earlier this year, Headset raised $US12 million and signed deals with market-research firm Nielsen and the accounting firm Deloitte.
You can join Headset CEO Cy Scott for a BI Prime webinar on September 5 at 2 p.m. ETas he takes readers through his pitch deck and explains how he convinced VCs, including early Juul investor Poseidon Asset Management, to buy in.
Poseidon partner Emily Paxhia will also weigh in on the unique challenges of investing in cannabis – and how she picks winners in a crowded market. You can sign up here.
Have a great long weekend!
D.E. Shaw has relaxed terms of its deferred-compensation structure ahead of a mid-September deadline on the firm’s new noncompete contract for all investment staff to either sign the agreement or get fired, insiders said.
The move spotlights uncertainty inside D.E. Shaw as it prepares to enforce wide noncompetes, which are fairly common in the hedge-fund industry, for the first time in its 30-year history. At stake is the $US50 billion hedge-fund manager’s investment talent – sources told Business Insider how longtime employees were assessing the terms and weighing if it makes sense to get pushed out and join a competitor.
UBS’s Americas private-wealth head says he thinks losing a ‘few hundred’ advisers would not be a bad thing, and is looking at how robos can help keep the bank’s richest clients
The UBS wealth-management executive John Mathews is so encouraged by a collaboration with SigFig on a digital-wealth tool for smaller accounts that he’s looking at what can be done for wealthier clients, particularly when it comes to the next generation.
Mathews, who leads UBS’s private-wealth management and ultra high-net-worth business for the Americas, spoke about digital capabilities and adviser head count with Business Insider.
The alternative-data provider Quandl is making a push toward creating more proprietary data feeds as large traditional data providers like Bloomberg and S&P push further into their space.
Tammer Kamel, Quandl’s CEO and cofounder, told Business Insider it’s gotten very difficult to obtain exclusive rights to alt-data feeds because of the increase in competition from larger players.
How Morningstar is using machine-learning race cars from Amazon to train employees
Pop into Morningstar’s Chicago headquarters and you might see something unexpected: A group of employees cheering on what appears to be a remote-controlled toy car racing around a track.
It’s not all fun and games, though. Morningstar, one of the world’s biggest investment-research companies, is turning to machine-learning-guided cars to learn about ways to better pull and analyse data.
Amazon Web Services has been using the DeepRacer cars to introduce clients on its public-cloud services to machine-learning technology. Wall Street firms, meanwhile, are talking more about wading into the public cloud and uses for artificial intelligence.
Industrious, which just nabbed $US80 million in fresh funding, is moving away from signing traditional leases and doing more partnerships with landlords instead.
The latest funding round for Industrious came little more than a week after coworking giant WeWork unveiled its detailed financials – a key step towards an IPO that also revealed $US47 billion in future lease obligations and a nearly $US2 billion loss in 2018.
We spoke with the coworking company’s CEO and co-founder, Jamie Hodari, who explained how that approach works and why he thinks it can help Industrious become profitable.
- Herding cows and hiring private investigators: Wealth advisers told us their stories about next-level requests from uber-rich clients
- JPMorgan says these 4 ‘limited-loss’ trades will make you a killing regardless of what happens next in the unpredictable trade war
In tech news:
- Facebook is reviewing hundreds of its official ‘Facebook Marketing Partners’ over Instagram data-scraping issues
- The CEO of a $US600 million startup blasted Silicon Valley’s culture of delaying IPOs, likening it to a college victory lap paid for by VCs
- JPMorgan, Goldman Sachs, and Citi are Wall Street’s most active fintech investors. Here are the 22 startups they poured money into this year.
- Peloton’s margins on its $US2,000 bikes and treadmills are better than Apple’s legendary margins
Other good stories from around the newsroom:
- Here’s exactly what it takes to get into Wharton’s MBA program, according to 6 grads and a Wharton admissions expert
- A startup working with 200 pharmacies is trying to break into the hypercompetitive drug-delivery business and give elderly Americans cheaper medications
- ‘It’s the art of the possible’: How Walmart and Target are harnessing AI to rocket past the competition