🍋 Big Tech's Innovation Problem

Together With

Good Morning! A new study found that in almost half of American marriages, women now earn at least as much or more than their husbands. Twitter announced it will let its users trade stocks and crypto as the platform makes a push into finance.

As the dust settles after Brexit, Paris is rapidly emerging as a new financial hub for the world’s biggest banks. And a group led by Apollo co-founder Josh Harris agreed to buy the Washington Commanders for a record $6 billion.

Talkspace is changing the therapy game with their sessions starting at $69/week (with or without insurance). Check them out here.

If you are interested in getting in front of a smart, young audience of business leaders, bankers, investment professionals, policy influencers of over 500,000 people, then fill out this form, we’ll be in touch.

First time reading? Sign up here.

1. Story of the Day: Big Tech’s Innovation Problem

Is Big Tech’s R&D spending stifling innovation in the U.S.? These companies are spending at a record pace, and hiring more and more of America's brightest inventors from smaller startups. But despite throwing record amounts of money at the issue, Big Tech is actually producing 6-11% fewer innovations than their smaller counterparts.

When inventors join Big Tech, they produce fewer patents on average than they did at their startups. Inventors are finding that when they finally get hired by Big Tech, they are incentivized to focus on maximizing the performance of existing products rather than releasing groundbreaking new ideas.

The business structures of Big Tech giants could be contributing to a lack of innovation. The culture at these companies can incentivize employees to prioritize politics and personal ambition over genuine innovation.

Furthermore, rather than utilizing the technology of startups, Big Tech often snuffs out the competition by acquiring them outright. The result is a fragmented R&D process and production department.

Small startups, on the other hand, have the luxury of being nimble and adaptable, with every member of the team working together towards a shared vision. This environment encourages creativity and the ability to take a great idea from conception to reality in record time.

Takeaway: Turns out you can’t buy your way to innovation in 2023, no matter how hard Big Tech tries. It’s looking like smaller startups are still leading the charge in churning out innovation, even if the odds are stacked against them.

2. Markets Rundown

Stocks closed higher ahead of banking earnings.

Movers & Shakers

• (+) Crispr Therapeutics ($CRSP) +16% after Cantor Fitzgerald raised its price target for the gene editing company.

• (+) Amazon ($AMZN) +5% after the company’s CEO released his letter to shareholders.

• (–) Infosys ($INFY) -10% after company’s revenue growth hit 6-year low.

Private Dealmaking

• Lee Equity Partners and Twin Point Capital bought Tessco Technologies, a wireless infrastructure products provider, for $161.4 million

• Altruist, a software provider to investment adviser industry, raised $112 million

• Alphasense, a market intelligence platform, raised $100 million

• Infogrid, a building monitoring startup, raised $90 million

• Teamworks, an athlete engagement platform, raised $65 million 

• Recuro Health, a digital holistic health platform, raised $47 million

A Message from Talkspace: Therapy that’s Covered by Insurance

Mental health is just as important as physical health, yet many people struggle to access the care they need.

That's where Talkspace comes in. They've created a platform that makes high-quality mental health care accessible, convenient, and affordable for everyone.

With their team of licensed therapists, psychiatrists, and nurse practitioners, you can get the support and guidance you need to navigate the challenges of life. And with therapy sessions offered through text, voice, or video, you can choose the method that works best for you. Plus, with insurance coverage, you can get the help you need without breaking the bank.

Sign up today and start taking control of your mental health on your own terms. Use promo code SPACE to get $100 off your first session and experience the power of Talkspace for yourself.

3. Top Reads

• Shadow lenders to bridge real estate void left by banks, bonds (BB)

• JPMorgan MDs asked to work from office 5x/week (Reuters)

• Is Apple’s buy-now-pay-later worth it? (CNBC)

• Carlyle said to end talks over Cotiviti stake sale (BB)

• Dour earnings loom over Wall Street as slowing economy bites (NYT)

• Amazon tells shareholders it’s investing heavily in tech behind ChatGPT (CNN)

• The Fed acknowledges a recession looks more likely (Axios)

• Demand for luxury watches shows no sign of fading (CNBC)

• Manhattan median rents hit another high in March (CNN)

• Cash dries up for VC newcomers (TI)

4. Shortform Book of the Day: Clear Thinking

You might believe you’re thinking clearly in the moments that matter most. But in all likelihood, when the pressure is on, you won’t be thinking at all. And your subsequent actions will inevitably move you further from the results you ultimately seek—love, belonging, success, wealth, victory.

Clear Thinking gives you the tools to recognize the moments that have the potential to transform your trajectory, and reshape how you navigate the critical space between stimulus and response. As Parrish shows, we may imagine we are the protagonists in the story of our lives. But the sad truth is, most of us run on autopilot.

Our behavioral defaults, groomed by biology, evolution, and culture, are primed to run the show for us if we don’t intervene. At our worst, we react to events without reasoning, not even realizing that we’ve missed an opportunity to think at all. At our best, we recognize these moments for what they are, and apply the full capacity of our reasoning and rationality to them.

Through stories, mental models, and more, Parrish offers the missing link between behavioral science and real-life outcomes. The result is a must-have manual for optimizing decision-making, gaining competitive advantage, and living a more intentional life.

“Few things will change your trajectory in life or business as much as learning to think clearly. Yet few of us recognize opportunities to think in the first place.”

Read More Books in Finance, Economics, and More with Shortform

Short Squeez readers - start your FREE trial and get 3 Months FREE when you sign up for the annual subscription!

5. Short Squeez Picks

• The power of a morning routine

• The misunderstood psychological benefits of commuting

• The brilliant secret behind all great innovations

• The 10 best books about productivity

• 7 daily habits that cultivate happiness

Wall Street Brews Drop ☕

Hey there, coffee connoisseurs! Want to upgrade your morning routine with a touch of humor and a splash of style? Feast your eyes on the Wall Street Brews drop.

We've crafted a limited supply of mugs that are sure to make you the envy of your office (or home office, we don't judge). Featuring our Top 12 Wall Street quotes, these mugs are the perfect blend of sophistication and sarcasm.

Imagine starting your day with a sip of coffee from a mug that reads "I just need a job where I do nothing" or "Don't smile, it communicates capacity". You'll be the life of the virtual meeting (and maybe even score some bonus points with your boss).

And if you want to collect them all, we've got a discounted bundle for you.

Shop our individual mugs below and add some humor to your daily grind.

1. This drink tastes like I can do another year of banking

2. Never let anyone ruin your day. Ruin theirs first

3. What a great day to hate your job

4. Private Equity is an essential service

5. I pick my guys like I pick my stocks, always bet on the losers

6. Pronouns? Tired/Depressed/Anxious

7. Tax the fat, not the rich

8. Don't smile, it communicates capacity

9. If you don't work on Wall Street, you don't matter to me

10. Anyone that is happy at their job doesn't make a lot of money

11. I just need a job where I do nothing

12. I didn't get this far in life being sober

6. Daily Visual: Marriages are Becoming More "Egalitarian"

Share of US opposite-sex marriages, by earning arrangement

_{Source: Axios}

7. Daily Acumen

A key factor in personal growth is steering clear of unfavorable influences.

It's easy to believe we have the power to resist absorbing the negative traits of others, but that's rarely the case.

Subconsciously, we mirror our surroundings. If your boss is dishonest, you'll eventually adopt dishonest tendencies.

If your friends are unreliable, you'll find yourself becoming unreliable too.

If you spend time with someone who's pessimistic, you'll gradually adopt a pessimistic outlook.

Bit by bit, you assimilate the beliefs and emotions, the mindsets and standards of those in your circle.

These transformations happen so subtly that they go unnoticed, until they become too significant to reverse.

8. Memes of the Day

 Advertise With Us / Merch Store / Private Equity Course

Want more Short Squeez?

Become an Insider. You'll get access to:

1. Industry deep-dives & compelling investment ideas

2. Wall Street Insider interviews breaking down their investment portfolio, strategy & investment picks

3. Knowledge Drop - an exclusive alpha-generating newsletter covering the best weekly research & content (podcasts, articles, blogs)

4. Vault – a collection of investing & recruiting guides, modeling courses, salary / comp data, institutional research (40+ resources added / month)

See you on the Inside.

*****

Looking to start your own newsletter? Beehiiv is Warren Buffett of creator platforms.

*****