Valinor operates as a holding company, acquiring and running defense tech firms that address niche but critical government needs. This model services the vast market of smaller-TAM opportunities often ignored by traditional VCs seeking billion-dollar "moonshot" outcomes.
Steve Jobs' vision of Apple as an inclusive brand conflicted with the necessary exclusivity of credit risk assessment. This led to lower underwriting standards (credit scores around 600) for the Apple Card, contributing to its poor performance and eventual sale by Goldman Sachs at a discount.
In an attempt to acquire Greenland, US officials discussed offering every Greenlander a lump-sum payment up to $100,000. This strategy framed a complex geopolitical negotiation as a direct financial transaction, akin to a corporate acquisition, totaling a potential $5.7 billion.
Unlike typical co-branded credit card portfolios that sell for a premium, Goldman Sachs offloaded the Apple Card's debt to JPMorgan at a significant loss. This underscores the program's unprofitability, driven by high defaults and operational costs, despite the prestigious Apple brand.
Apple insisted all card statements be sent on the first of the month to enhance customer experience. This forced Goldman Sachs to staff a massive, costly customer service team that was overwhelmed at the start of the month and idle for the remainder, unlike the staggered billing used by other banks.
Despite the potential business impact, Palmer Luckey argues that when a company is funded by taxpayers, the public has the right to impose restrictions, including executive salary caps. This view champions accountability for the "war fighter" over complete corporate freedom, a nuanced stance for a tech founder.
LPs are concentrating capital into a few trusted mega-firms, leading to oversubscribed rounds for top players. Simultaneously, a decline in deal formation and liquidity is causing a potential 30-50% "extinction rate" for smaller, emerging managers who are unable to raise subsequent funds.
During a 2023 meeting with President Biden, Chinese officials sprayed a DNA-degrading substance on everything Xi Jinping touched. This was done out of fear that the US could capture his DNA to create a genetically optimized virus, illustrating deep-seated paranoia about biological warfare.
An early version of the Apple Card proposed "iPoints" redeemable exclusively for 99¢ songs on iTunes. While economically brilliant for Apple (capturing a 30% margin on redemptions), this closed ecosystem was less appealing than cash back or travel and would have become obsolete with the rise of streaming music.
The VC landscape has split into two extremes. A few elite firms and sovereign wealth funds are funding mega-rounds for about 20-30 top AI companies, while the broader ecosystem of seed funds, Series A specialists, and new managers is getting crushed by a lack of capital and liquidity.
To participate in highly competitive late-stage deals, some VCs organize SPVs without management fees or carry. While not directly profitable, this helps the startup fundraise, strengthens the relationship, protects the VC's original investment, and signals access to LPs for future funds.
Despite selling out, the viral AI sticker-maker is delaying a push into big-box retail. Instead, it's building software features for kids to create, name, and share characters with friends' devices. This strategy prioritizes building a defensible user-generated IP platform and network effect.
Trump's call to cap defense executive pay at $5M primarily targets the high cash salaries at legacy primes. Newer firms like Anduril, where founders and executives have lower salaries but significant equity, would be less impacted, potentially giving them a talent and operational advantage.
Valinor CEO Julie Busch argues that the VC push for dual-use (government and commercial) products is a distraction. Most government needs are single-use, creating a massive, underserved market. Furthermore, it's far easier to adapt a government-first product for commercial use than the other way around due to stringent compliance hurdles.
Tailwind's business relied on developers visiting its documentation, which promoted paid products. AI coding agents began auto-completing Tailwind's code, eliminating the need for developers to visit the site. This led to a 40% traffic drop and an 80% revenue loss, forcing massive layoffs.