Issue #38

Podcaster raises $400 million fund, Google acquires nuclear reactors, Jane Street interns make $250k, and more. 

News from October 10 - October 17, 2024

Podcaster Raises $400 Million Fund 

28-year-old British podcaster Harry Stebbings, founder of venture firm 20VC, has raised a new $400 million fund for early-stage start-ups, positioning him among Europe’s top tech investors.

Supported by MIT, Thrive Capital’s Josh Kushner, and other tech leaders, 20VC uses Stebbings’ popular podcast, The Twenty Minute VC, to draw in leading founders. The firm has grown since its $140 million fund in 2021, adding specialized sub-funds.

Despite a slow dealmaking environment, 20VC continues to invest in companies like AI start-up Poolside and Linktree. Stebbings: “investing in consumer tech is very hard, the most brilliant companies in 20VC’s portfolio are boring as hell.”

Source

Google Acquires Nuclear Reactors 

Google has ordered six to seven small modular nuclear reactors (SMRs) from Kairos Power, making it the first tech company to commission nuclear power plants to supply low-carbon electricity for its data centers. 

The SMRs, with a total capacity of 500MW, are expected to begin operating by 2030. This partnership will help Kairos bring its first commercial reactor to completion, with more reactors planned by 2035. 

The deal signals a significant shift in the tech industry, as companies like Google and Microsoft increasingly turn to nuclear energy to meet the growing energy demands of their data centers while reducing carbon emissions.

Source 

‍US Bank Secures Swiss Pension Custody

U.S. bank State Street has won a mandate to act as custodian for a multibillion-dollar Swiss pension fund, previously held by UBS for 26 years. The AHV/IV/EO fund, worth over 40 billion Swiss francs ($44.48 billion), will be transferred to State Street by year-end after a two-year tender process. 

Though State Street will handle administrative duties, UBS will continue managing the fund's Swiss assets as a sub-custodian. The shift marks a significant change as U.S. institutions increasingly hold Swiss retirees' pension assets.

Source 

Bulletin Board

• Brits Crave Craft Pastries. The new Gail's bakery in Walthamstow, east London, has drawn attention for its rapid success despite initial local resistance. On its second day, it was already busy, with residents queuing for coffee and pastries. Gail’s, now with 150 branches across the UK, has prompted a debate: some view it as broadening access to quality baked goods, while others see it as a threat to local, independent craft bakeries. The popularity of Gail's highlights both the consumer demand for artisanal products and the tension around maintaining local authenticity amid chain expansion. Source
• Jane Street Interns Earn $250k. Jane Street offers interns annual salaries of up to $250,000, with bonuses that can be multiples of their base pay. Despite the high compensation, these positions require no prior finance industry experience. In comparison, the Federal Reserve chair earns $203,500 and the NATO secretary-general €317,707 annually, both tax-free. However, Jane Street internships provide higher potential earnings, reflecting the firm's rapid expansion and competitive compensation structure. Source
• UK Gambling Tax Hike Fears. Shares of UK-based bookmakers, including Entain, Flutter, and Evoke, dropped sharply amid concerns that the government may raise gambling taxes in the upcoming Budget, which could impose additional costs of up to £3bn on the sector. Entain saw an early 14% plunge, recovering slightly but closing 8% lower. Proposed tax hikes, especially on online casinos, could rise from 21% to 50%, threatening operators' profitability. Analysts warn the increases may lead to closures and push gamblers to offshore sites. Despite the speculation, Chancellor Rachel Reeves downplayed the likelihood of severe tax hikes. Source
• Protestors Endanger UK Arts. UK arts organizations are under growing financial pressure as activists target sponsors associated with industries like oil and Israel, pushing companies to withdraw funding. Protests against museum partnerships with oil companies and other sponsors, such as those seen at the British Museum, have intensified the strain on cultural institutions. Critics argue that these actions harm the arts sector without solving larger issues like climate change, putting staff jobs and creativity at risk. Additionally, proposed tax changes may further reduce philanthropic donations, worsening the financial situation for the UK’s cultural sector. Source 
• Schools Deploy AI for Vaping Surveillance. A Colorado school district is using facial recognition cameras to monitor vaping in bathrooms. The Cheyenne Mountain School District has installed 400 AI-powered cameras and air sensors to detect vape use, which then helps identify students involved. Greg Miller, the district’s executive director of technology: “We went down the road of Verkada tech even though it's definitely not the cheapest. We can click on a face and know which door that child exited so they can find them and safely make sure they aren't harming themselves.” Critics raise concerns about privacy and ethics. Source  

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