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As it turns out, technology demand only increased and the Nasdaq had its best year since 2009, spurred on by low interest rates and a surge in spending on products for remote work.

“Companies that recently raised at very high prices at the height of valuation inflation may be grappling with high burn rates and near-term challenges growing into those valuations,” Shakir told CNBC in an email. “Others that were more dilution-sensitive and chose to raise less may now need to consider avenues for extending runway that would have seemed unpalatable to them just months ago.”

“Our companies heeded that advice and most companies are now prepared for winter,” Lux wrote.

“This time, many of those tools have been exhausted,” Sequoia wrote. “We do not believe that this is going to be another steep correction followed by an equally swift V-shaped recovery like we saw at the outset of the pandemic.”Sequoia told its companies to look at projects, research and development, marketing and elsewhere for opportunities to cut costs. Companies don’t have to immediately pull the trigger, the firm added, but they should be ready to do it in the next 30 days if needed.

And among companies that are still private, staff reductions are underway at Klarna and Cameo, while Instacart is reportedly slowing hiring ahead of an expected initial public offering. Cloud software vendor Lacework announced staffing cuts on Friday, six months after the company was valued at $8.3 billion by venture investors.“We have adjusted our plan to increase our cash runway through to profitability and significantly strengthened our balance sheet so we can be more opportunistic around investment opportunities and weather uncertainty in the macro environment,” Lacework said in a blog post.

Shakir agreed with that assessment. “Like many, we at Lux have been advising our companies to think long term, extend runway to 2+ years if possible, take a very close look at reducing burn and improving gross margins, and start to set expectations that near-term future financings are unlikely to look like what they may have expected six or 12 months ago,” she wrote.

Lux highlighted one of the painful decisions it expects to see. For several companies, the firm said, “sacrificing people will come before sacrificing valuation.”But venture firms are keen to remind founders that great companies emerge from the darkest of times. Those that prove they can survive and even thrive when capital is in short supply, the thinking goes, are positioned to flourish when the economy bounces back.

conditions.”CORRECTION: This story was updated to reflect that cloud software vendor Lacework raised $1.3 billion in growth funding at a valuation of $8.3 billion.

Ms. James’s filing argued that the company misstated the value of the properties to lenders, insurers and the Internal Revenue Service. Many of the statements, the filing argued, were “generally inflated as part of a pattern to suggest that Mr. Trump’s net worth was higher than it otherwise would have appeared.”

“Three years later, she is now faced with the stark reality that she has no case,” the spokeswoman said on Wednesday.

Because Ms. James’s investigation is civil, she can sue Mr. Trump and his company but cannot file criminal charges. Her inquiry is running parallel to a criminal investigation led by the Manhattan district attorney, Alvin Bragg, which is examining some of the same conduct.

Ms. James already questioned another of Mr. Trump’s sons, Eric Trump, in October 2020. He invoked his Fifth Amendment right against incriminating himself in response to more than 500 questions, the new court filing said.

After receiving the subpoenas, lawyers for Mr. Trump filed a federal lawsuit seeking to halt Ms. James’s civil investigation and to bar her office from participating in the district attorney’s criminal investigation.

A case could be hard to prove. Property valuations are often subjective, and Mr. Trump’s lawyers are likely to note that his lenders and insurers — sophisticated financial institutions that turned a profit off their relationship with the Trumps — did not rely on the company’s estimates.

The Manhattan district attorney’s office and the New York attorney general’s office are investigating whether Mr. Trump or his family business, the Trump Organization, engaged in criminal fraud by intentionally submitting false property values to potential lenders.

The Atlanta district attorney is conducting a criminal investigation of election interference in Georgia by Mr. Trump and his allies.

In 2015, for example, while seeking to refinance a loan on his 40 Wall Street tower in Lower Manhattan, Mr. Trump’s statement of financial condition estimated that the property was worth $735 million. Yet one lender concluded it was worth only $257 million.

Ms. James’s lawyers also argued that Mr. Trump submitted at least two misleading statements to the Internal Revenue Service, saying that he substantially overstated the value of land at both his Seven Springs Estate in Westchester County and his Los Angeles Golf Club. The value of Seven Springs, Ms. James said, had been boosted by counting the value of seven nonexistent mansions, said to be worth $61 million. Mr. Trump received tax deductions worth millions of dollars on both properties.

Mr. Weisselberg, the filing contends, also falsely told one of Mr. Trump’s insurance companies that the property valuations were based on assessments by professional appraisers, when that was not the case. In reality, “the valuations were prepared by Trump Organization staff,” the filing said.

Consider Yahoo. The company bought back shares worth $6.6 billion from 2008 to 2014, according to Robert L. Colby, a retired investment professional and developer of Corequity, an equity valuation service used by institutional investors. These purchases helped increase Yahoo’s earnings per share about 16 percent annually, on average.

a company’s overall profit growth is unaffected by share buybacks. And comparing increases in earnings per share with real profit growth reveals the impact that buybacks have on that particular measure. Call it the buyback mirage.

Those who run companies like buybacks because they make their earnings look better on a per-share basis. When fewer shares are outstanding, each one technically earns more.

But a good bit of that performance was the buyback mirage. Growth in Yahoo’s overall net profits came in at about 11 percent annually

Given these figures, Mr. Colby reckoned that Yahoo, if it had invested that same amount of money in its operations, would have had to generate only a 3.2 percent after-tax return to produce overall net profit growth of 16 percent annually over those years.

But Mr. Colby pointed out that buybacks provide only a one-time benefit, while smart investments in a company’s operations can generate years of gains.

Mr. Colby said his research “confirms my suspicion that while buybacks are not universally bad, they are being practiced far more broadly and without as much analysis as there should be.”

Perhaps the crucial flaw in buybacks is that they reward sellers of a company’s stock over its long-term holders. That’s because a company announcing a repurchase program usually sees its stock price pop in the short term. But passive investors, such as index funds, and other long-term holders gain little from the programs.

Another hazard: companies that spend billions to repurchase stock without substantially shrinking the number of shares outstanding. That’s because in these circumstances, prized corporate cash is used to buy back shares that offset stock grants bestowed on company executives in rich compensation plans.

And there are plenty of companies whose buybacks have simply left them with less money to invest in more promising opportunities. Advertisement Continue reading the main story “By throwing away money on buybacks, companies are giving up on the ability to grow in the future,”

proposals ask the companies to adopt a policy of excluding the effect of stock buybacks from any performance metrics they use to determine executive pay packages.

At 3M, for example, research and development expenditures plus strategic acquisitions have totaled $22 billion over the last five years, Mr. Kanzer said. In the meantime, the company’s buyback program has cost $21 billion.

“You really have to ask why a company’s board decides to return a big chunk of capital instead of replacing managers with ones who can figure out how to develop the operations,”

“If the board doesn’t think it’s worth investing in the company’s future,” Mr. Lutin added, “how can a shareholder justify continuing to hold the stock, or voting for directors who’ve given up?”

The rise of China’s venture market “signifies a shift from a single-epicenter view of the world to a duopoly,” he says.

The surge also positions Asia’s investors to win stakes in markets that Western companies covet, or that have national security implications.

. “If you think that being the locus of invention gives you a boost to your GDP and so forth, that’s a deterioration of the U.S. competitive advantage.”

Although one of the biggest Asian investors is Japan’s SoftBank Group Corp. , which has tapped Middle Eastern money to create the world’s largest tech-investment fund, it is Chinese activity that is having the greatest impact.

China is creating unicorns—startups valued at a billion dollars or more—at much the same pace as the U.S., drawing on funding from internet giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. as well as more than a thousand domestic venture-capital firms that have raised billions of dollars a year for the past few year

Chinese-led venture funding is about 15 times its size in 2013, outpacing growth in U.S.-led financing, which roughly doubled in that time period

Most Chinese-led investment so far has gone to the country’s own firms, the Journal analysis found. Many of them, like the Yelp equivalent Meituan-Dianping, are household names with millions of customers in China, yet virtually unknown elsewhere.

Many Chinese tech companies are “at this critical size that the China market alone is not enough to support their business and valuation,

Madhur Deora, chief financial officer for Paytm, one of India’s biggest e-payments firms, says the company approached Alibaba affiliate Ant Financial instead of U.S. backers for funding in 2015 because Chinese mobile-internet innovations are “way far ahead of anything that’s happened in the U.S.

One reason China’s push into new technologies worries many in the U.S. is that, unlike the hunt for good returns that underpins most Western venture finance, a lot of Chinese investment is driven by strategic interests, some carrying the specter of state influence.

China is pushing hard into semiconductors, for which the government has provided billions of dollars in public funding, and artificial intelligence, where Beijing in July set a goal of global leadership by 2030

Mr. Lee, the venture investor, predicts that in the next five to 10 years Chinese tech companies will become pacesetters for tech-related development, vying with the likes of Alphabet Inc.’s Google and Facebook for dominance in markets outside the English-speaking world and Western Europe.

“All the rest of the world will basically be a land grab between the U.S. and China,

“The U.S. approach is: We’ll build a better product and just win over all the countries,” says Mr. Lee. The Chinese approach is “we’ll fund the local partner to beat off the American companies.”

Asia’s rise as a startup financier is even starker in the biggest venture investments—those of $100 million or more. These megadeals have become an increasingly important part of venture finance as valuations have ballooned, with their proportion of deal volume growing from around 8% in 2007 to around half of the total last year.

In Southeast Asia, a flood of Chinese money into local startups—such as the $1.1 billion Alibaba-led investment into Indonesian online marketplace PT Tokopedia last year—is drawing the region closer to China

Chinese money is also playing a big role in India, which, with a population of 1.2 billion, has been described as the next big internet market. Chinese and Japanese investors each led nearly $3 billion in venture finance in India last year, ahead of the nearly $2 billion in deals led by U.S. investors

“Think of strategic investments and M&A as playing a game of go,” said Mr. Tsai, the Alibaba executive vice chairman, at the investor conference last year. “In a game of go the strategic objective is to put your pieces on the chessboard and surround your opponent.”

“As a venture-backed scale-up that will need to fundraise again in the future, we therefore need to adjust our business plan to reduce costs and accelerate our path to profitability.”

The recent raft of layoffs in the industry highlights a broader shift in investor sentiment toward high-growth tech companies, many of which have taken steps to cut down on costs recently against the backdrop of a sharp plunge in global stock markets. Earlier this week, buy now, pay later firm Klarna said it would lay off about 10% of staff following reports the company was seeking a new round of funding that would reduce its valuation by a third.

Meanwhile, New York start-ups Fridge No More and Buyk — which both raised money from Russian investors — wound down their operations after facing issues with fundraising after Russia’s invasion of Ukraine.

Earlier this month, London-based grocery service Jiffy said it would stop making deliveries and instead shift its focus toward in-person grocery collection, in a bid to convince investors that it can achieve profitability. The company has since announced plans to resume deliveries through a deal with Zapp.

Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. He did not build enterprises the old-fashioned way—out of inspiration, perspiration, and a long slog in the free market fostering a new product, service, or process of production. Instead, he spent his 15 years raising debt in prodigious amounts on Wall Street so that Bain could purchase the pots and pans and castoffs of corporate America, leverage them to the hilt, gussy them up as reborn “roll-ups,” and then deliver them back to Wall Street for resale—the faster the better.

That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.

So the vast outpouring of LBOs in recent decades has been the consequence of bad policy, not the product of capitalist enterprise. I know this from 17 years of experience doing leveraged buyouts at one of the pioneering private-equity houses, Blackstone, and then my own firm. I know the pitfalls of private equity. The whole business was about maximizing debt, extracting cash, cutting head counts, skimping on capital spending, outsourcing production, and dressing up the deal for the earliest, highest-profit exit possible. Occasionally, we did invest in genuine growth companies, but without cheap debt and deep tax subsidies, most deals would not make economic sense.

In truth, LBOs are capitalism’s natural undertakers—vulture investors who feed on failing businesses. Due to bad policy, however, they have now become monsters of the financial midway that strip-mine cash from healthy businesses and recycle it mostly to the top 1 percent.

Accordingly, Bain’s returns on the overwhelming bulk of the deals—67 out of 77—were actually lower than what a passive S&P 500 indexer would have earned even without the risk of leverage or paying all the private-equity fees. Investor profits amounted to a prosaic 0.7X the original investment on these deals and, based on its average five-year holding period, the annual return would have computed to about 12 percent—well below the 17 percent average return on the S&P in this period.

having a trader’s facility for knowing when to hold ’em and when to fold ’em has virtually nothing to do with rectifying the massive fiscal hemorrhage and debt-burdened private economy that are the real issues before the American electorate

Indeed, the next president’s overriding task is restoring national solvency—an undertaking that will involve immense societywide pain, sacrifice, and denial and that will therefore require “fairness” as a defining principle. And that’s why heralding Romney’s record at Bain is so completely perverse. The record is actually all about the utter unfairness of windfall riches obtained under our anti-free market regime of bubble finance.

When Romney opened the doors to Bain Capital in 1984, the S&P 500 stood at 160. By the time he answered the call to duty in Salt Lake City in early 1999, it had gone parabolic and reached 1270. This meant that had a modern Rip Van Winkle bought the S&P 500 index and held it through the 15 years in question, the annual return (with dividends) would have been a spectacular 17 percent. Bain did considerably better, of course, but the reason wasn’t business acumen.

The secret was leverage, luck, inside baseball, and the peculiar asymmetrical dynamics of the leveraged gambling carried on by private-equity shops. LBO funds are invested as equity at the bottom of a company’s capital structure, which means that the lenders who provide 80 to 90 percent of the capital have no recourse to the private-equity sponsor if deals go bust. Accordingly, LBO funds can lose 1X (one times) their money on failed deals, but make 10X or even 50X on the occasional “home run.” During a period of rising markets, expanding valuation multiples, and abundant credit, the opportunity to “average up” the home runs with the 1X losses is considerable; it can generate a spectacular portfolio outcome.

The Wall Street Journal examined 77 significant deals completed during that period based on fundraising documents from Bain, and the results are a perfect illustration of bull-market asymmetry. Overall, Bain generated an impressive $2.5 billion in investor gains on $1.1 billion in investments. But 10 of Bain’s deals accounted for 75 percent of the investor profits.

The credentials that Romney proffers as evidence of his business acumen, in fact, mainly show that he hung around the basket during the greatest bull market in recorded history.

By contrast, the 10 home runs generated profits of $1.8 billion on investments of only $250 million, yielding a spectacular return of 7X investment. Yet it is this handful of home runs that both make the Romney investment legend and also seal the indictment: they show that Bain Capital was a vehicle for leveraged speculation that was gifted immeasurably by the Greenspan bubble. It was a fortunate place where leverage got lucky, not a higher form of capitalist endeavor or training school for presidential aspirants.

The startling fact is that four of the 10 Bain Capital home runs ended up in bankruptcy, and for an obvious reason: Bain got its money out at the top of the Greenspan boom in the late 1990s and then these companies hit the wall during the 2000-02 downturn, weighed down by the massive load of debt Bain had bequeathed them. In fact, nearly $600 million, or one third of the profits earned by the home-run companies, had been extracted from the hide of these four eventual debt zombies.

The bankruptcy forced the closure of about 250—or 40 percent—of the company’s stores and the loss of about 5,000 jobs. Yet the moral of the Stage Stores saga is not simply that in this instance Bain Capital was a jobs destroyer, not a jobs creator. The larger point is that it is actually a tale of Wall Street speculators toying with Main Street properties in defiance of sound finance—an anti-Schumpeterian project that used state-subsidized debt to milk cash from stores that would not have otherwise survived on the free market.

Ironically, the businesses and jobs that Staples eliminated were the office-supply counterparts of the cracker-box stores selling shoes, shirts, and dresses that Bain kept on artificial life-support at Stage Stores Inc. At length, Wal-Mart eliminated these jobs and replaced them with back-of–the-store automation and front-end part-timers, as did Staples, which now has 40,000 part-time employees out of its approximate 90,000 total head count. The pointless exercise of counting jobs won and lost owing to these epochal shifts on the free market is obviously irrelevant to the job of being president, but the fact that Bain made $15 million from the winner and $175 million from the loser is evidence that it did not make a fortune all on its own. It had considerable help from the Easy Button at the Fed.

The lesson is that LBOs are just another legal (and risky) way for speculators to make money, but they are dangerous because when they fail, they leave needless economic disruption and job losses in their wake. That’s why LBOs would be rare in an honest free market—it’s only cheap debt, interest deductions, and ludicrously low capital-gains taxes that artifically fuel them.

The larger point is that Romney’s personal experience in the nation’s financial casinos is no mark against his character or competence. I’ve made money and lost it and know what it is like to be judged. But that experience doesn’t translate into answers on the great public issues before the nation, either. The Romney campaign’s feckless narrative that private equity generates real economic efficiency and societal wealth is dead wrong.

The Bain Capital investments here reviewed accounted for $1.4 billion or 60 percent of the fund’s profits over 15 years, by my calculations. Four of them ended in bankruptcy; one was an inside job and fast flip; one was essentially a massive M&A brokerage fee; and the seventh and largest gain—the Italian Job—amounted to a veritable freak of financial nature.

In short, this is a record about a dangerous form of leveraged gambling that has been enabled by the failed central banking and taxing policies of the state. That it should be offered as evidence that Mitt Romney is a deeply experienced capitalist entrepreneur and job creator is surely a testament to the financial deformations of our times.

There were 606 firearm-related accidents in the same year -- about 5% of the number of intentional gun deaths.

There are about 310 million guns in the country. About 40% of households have them, a fraction that has been slowly declining over the last few decades, down from about 50% in the 1960s.

gun ownership has gotten much more concentrated among fewer households: if you own one gun, you probably own several

The most comprehensive public list of U.S. mass shootings is the spreadsheet of 62 incidents from 1982-2012, compiled by Mother Jones. Their list shows:

Mass shootings happen all over the country. Killers used a semi-automatic handgun in 75% of incidents, which is about the same percentage as the 72% in overall gun violence. Killers used an assault weapon in 40% of incidents. This is much higher than overall assault weapon use in crimes, estimated at less than 2%. The guns were obtained legally in 79% of mass shootings. Many of the shooters showed signs of mental illness, but in only two cases was there a prior diagnosis. There were no cases where an armed civilian fired back.

they account for only a small fraction of gun violence in the United States.

It's also possible that gun ownership is a deterrent to crime, because criminals must consider the possibility that their intended victim is armed.

. In 2010, different researchers re-examined Lott's work, the NRC report, and additional data up through 2006, and reaffirmed that there is no evidence that right-to-carry laws reduce crime.

The most comprehensive estimate is that a 10% reduction in U.S. households with guns would result in a 3% reduction in homicides.

current federal gun regulation (see above) contains an enormous loophole: While businesses that deal in guns are required to keep records and run background checks, guns can be transferred between private citizens without any record. This makes straw purchases easy.

There's abundant evidence that under the current system, guns flow easily between legal and illegal markets.

guns are used to commit a crime about 10 times as often as they are used for self-defense.

Won't criminals kill with other weapons if they don't have guns? The crux of this question is whether most homicides are planned, or whether killers more often confront their victims with no clear intention. In the second case, adding a gun could result in a fatal shooting that would otherwise have been avoided.

In 1968, Franklin Zimring examined cases of knife assaults versus gun assaults in Chicago. The gun attacks were five times more deadly

Here are some approaches that don't seem to work, at least not by themselves, or in the ways they've been tried so far: Stiffer prison sentences for gun crimes. Gun buy-backs: In a country with one gun per person, getting a few thousand guns off the street in each city may not mean very much. Safe storage laws and public safety campaigns.

We don't really have good enough evidence to evaluate these strategies: Background checks, such as the Brady Act requires. Bans on specific weapons types, such as the expired 1994 assault weapons ban or the handgun bans in various cities.

These policies do actually seem to reduce gun violence, at least somewhat or in some cases: More intensive probation strategies: increased contact with police, probation officers and social workers. Changes in policing strategies, such increased patrols in hot spots. Programs featuring cooperation between law enforcement, community leaders, and researchers, such as Project Safe Neighborhoods.

Removing legal restrictions that prevent the Centers for Disease Control and other agencies from tracking and researching gun violence is also a sensible idea, and follows a long history of calls from scientists (see: what don't we know).

We lack some of the most basic information we need to have a sensible gun policy debate, partially because researchers have been prevented by law from collecting it. The 2004 National Research Council report discussed above identified several key types of missing data: systematic reporting of individual gun incidents and injuries, gun ownership at the local level, and detailed information on the operation of firearms markets. We don't even have reliable data on the number of homicides in each county.

Centers for Disease Control, the main U.S. agency that tracks and studies American injuries and death, has been effectively prevented from studying gun violence, due to a law passed by Congress in 1996.

anonymized hospital reporting systems are the main ways we know about many other types of injuries, but the Affordable Care Act prevents doctors from gathering information about their patients' gun use. A 2011 law restricts gun violence research at the National Institutes of Health. The legal language prevents these agencies from using any money "to advocate or promote gun control."

Much of Mr. Klarman’s anxiety seems to emanate from Mr. Trump’s leadership style. He described it this way: “The erratic tendencies and overconfidence in his own wisdom and judgment that Donald Trump has demonstrated to date are inconsistent with strong leadership and sound decision-making.”

“While they might be popular, the reason the U.S. long ago abandoned protectionist trade policies is because they not only don’t work, they actually leave society worse off.”

He worries, for example, that Mr. Trump’s stimulus efforts “could prove quite inflationary, which would likely shock investors.”

“Exuberant investors have focused on the potential benefits of stimulative tax cuts, while mostly ignoring the risks from America-first protectionism and the erection of new trade barriers,”

“The big picture for investors is this: Trump is high volatility, and investors generally abhor volatility and shun uncertainty,” he wrote. “Not only is Trump shockingly unpredictable, he’s apparently deliberately so; he says it’s part of his plan.”

he warned, “If things go wrong, we could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst.”

he issued a statement after Mr. Trump criticized a judge over his Mexican heritage, saying he planned to support Mrs. Clinton: “His words and actions over the last several days are so shockingly unacceptable in our diverse and democratic society that it is simply unthinkable that Donald Trump could become our president.”

“Despite my preference to stay out of the media,” he wrote, “I’ve taken the view that each of us can be bystanders, or we can be upstanders. I choose upstander.”

“This should give long-term value investors a distinct advantage,” he wrote. “The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.

“In matters of style, swim with the current; in matters of principle, stand like a rock.”

Such big drops are a reminder of how investors don't have any tolerance when stocks at large are hovering around their long-term average valuations. "Any company that misses in this environment is getting hurt big time," says Peter Cardillo of Rockwell Global Capital. "It's a question of investors not being forgiving."

Intel, founded by Gordon Moore and Robert Noyce, both physicists, began by building memory chips that were twice as fast as old ones. Sun Microsystems introduced a new kind of modular computer system, built by one of its founders, Andy Bechtolsheim. Their “big ideas” were expressed in physical products and grew out of their own technical expertise. In that light, Meraki, which came from Biswas’s work at M.I.T., can be seen as having its origins in the old guard. And it followed what was for decades the highway that connected academia to industry: Grad students researched technology, powerful advisers brokered deals, students dropped out to parlay their technologies into proprietary solutions, everyone reaped the profits. That implicit guarantee of academia’s place in entrepreneurship has since disappeared. Graduate students still drop out, but to start bike-sharing apps and become data scientists. That is, if they even make it to graduate school. The success of self-educated savants like Sean Parker, who founded Napster and became Facebook’s first president with no college education to speak of, set the template. Enstitute, a two-year apprenticeship, embeds high-school graduates in plum tech positions. Thiel Fellowships, financed by the PayPal co-founder and Facebook investor Peter Thiel, give $100,000 to people under 20 to forgo college and work on projects of their choosing.

Much of this precocity — or dilettantism, depending on your point of view — has been enabled by web technologies, by easy-to-use programming frameworks like Ruby on Rails and Node.js and by the explosion of application programming interfaces (A.P.I.s) that supply off-the-shelf solutions to entrepreneurs who used to have to write all their own code for features like a login system or an embedded map. Now anyone can do it, thanks to the Facebook login A.P.I. or the Google Maps A.P.I.

One of the more enterprising examples of these kinds of interfaces is the start-up Stripe, which sells A.P.I.s that enable businesses to process online payments. When Meraki first looked into taking credit cards online, according to Biswas, it was a monthslong project fraught with decisions about security and cryptography. “Now, with Stripe, it takes five minutes,” he said. “When you combine that with the ability to get a server in five minutes, with Rails and Twitter Bootstrap, you see that it has become infinitely easier for four people to get a start-up off the ground.”

The sense that it is no longer necessary to have particularly deep domain knowledge before founding your own start-up is real; that and the willingness of venture capitalists to finance Mark Zuckerberg look-alikes are changing the landscape of tech products. There are more platforms, more websites, more pat solutions to serious problems

There’s a glass-half-full way of looking at this, of course: Tech hasn’t been pedestrianized — it’s been democratized. The doors to start-up-dom have been thrown wide open. At Harvard, enrollment in the introductory computer-science course, CS50, has soared

many of the hottest web start-ups are not novel, at least not in the sense that Apple’s Macintosh or Intel’s 4004 microprocessor were. The arc of tech parallels the arc from manufacturing to services. The Macintosh and the microprocessor were manufactured products. Some of the most celebrated innovations in technology have been manufactured products — the router, the graphics card, the floppy disk

One of Stripe’s founders rowed five seat in the boat I coxed freshman year in college; the other is his older brother. Among the employee profiles posted on its website, I count three of my former teaching fellows, a hiking leader, two crushes. Silicon Valley is an order of magnitude bigger than it was 30 years ago, but still, the start-up world is intimate and clubby, with top talent marshaled at elite universities and behemoths like Facebook and Google.

Part of the answer, I think, lies in the excitement I’ve been hinting at. Another part is prestige. Smart kids want to work for a sexting app because other smart kids want to work for the same sexting app. “Highly concentrated pools of top talent are one of the rarest things you can find,” Biswas told me, “and I think people are really attracted to those environments.

The latter source of frustration is the phenomenon of “the 10X engineer,” an engineer who is 10 times more productive than average. It’s a term that in its cockiness captures much of what’s good, bad and impossible about the valley. At the start-ups I visit, Friday afternoons devolve into bouts of boozing and Nerf-gun wars. Signing bonuses at Facebook are rumored to reach the six digits. In a landscape where a product may morph several times over the course of a funding round, talent — and the ability to attract it — has become one of the few stable metrics.

there is a surprising amount of angst in Silicon Valley. Which is probably inevitable when you put thousands of ambitious, talented young people together and tell them they’re god’s gift to technology. It’s the angst of an early hire at a start-up that only he realizes is failing; the angst of a founder who raises $5 million for his company and then finds out an acquaintance from college raised $10 million; the angst of someone who makes $100,000 at 22 but is still afraid that he may not be able to afford a house like the one he grew up in.

San Francisco, which is steadily stealing the South Bay’s thunder. (“Sometime in the last two years, the epicenter of consumer technology in Silicon Valley has moved from University Ave. to SoMa,” Terrence Rohan, a venture capitalist at Index Ventures, told me

Both the geographic shift north and the increasingly short product cycles are things Jim attributes to the rise of Amazon Web Services (A.W.S.), a collection of servers owned and managed by Amazon that hosts data for nearly every start-up in the latest web ecosystem.Continue reading the main story

now, every start-up is A.W.S. only, so there are no servers to kick, no fabs to be near. You can work anywhere. The idea that all you need is your laptop and Wi-Fi, and you can be doing anything — that’s an A.W.S.-driven invention.”

This same freedom from a physical location or, for that matter, physical products has led to new work structures. There are no longer hectic six-week stretches that culminate in a release day followed by a lull. Every day is release day. You roll out new code continuously, and it’s this cycle that enables companies like Facebook, as its motto goes, to “move fast and break things.”

A few weeks ago, a programmer friend and I were talking about unhappiness, in particular the kind of unhappiness that arises when you are 21 and lavishly educated with the world at your feet. In the valley, it’s generally brought on by one of two causes: coming to the realization either that your start-up is completely trivial or that there are people your own age so knowledgeable and skilled that you may never catch up.

These days, a new college graduate arriving in the valley is merely stepping into his existing network. He will have friends from summer internships, friends from school, friends from the ever-increasing collection of incubators and fellowships.

As tech valuations rise to truly crazy levels, the ramifications, financial and otherwise, of a job at a pre-I.P.O. company like Dropbox or even post-I.P.O. companies like Twitter are frequently life-changing. Getting these job offers depends almost exclusively on the candidate’s performance in a series of technical interviews, where you are asked, in front of frowning hiring managers, to whip up correct and efficient code.

Moreover, a majority of questions seem to be pulled from undergraduate algorithms and data-structures textbooks, which older engineers may have not laid eyes on for years.

America’s greatest advantage is its pluralism: It can govern itself horizontally by its people of all colors and creeds forging social contracts to live together as equal citizens.

But right now we’re messing around with that incredible asset. Yes, we must control our borders; it is the essence of sovereignty. It has been a failure of both our political parties that the Mexican-American border has been so porous. So I am for a high wall, but with a very big gate — one that legally lets in energetic low-skilled workers and the high-I.Q. risk-takers who have made our economy the envy of the world — and for legislation that provides a pathway for the millions of illegal immigrants already here to gain legal status and eventually citizenship.

Every era spews up a Joe McCarthy type who tries to thrive by dividing and frightening us, and today his name is Donald Trump.

Last month, it eclipsed Walmart as the most valuable retailer in the country, with a market valuation of $250 billion, and Forbes deemed Mr. Bezos the fifth-wealthiest person on earth.

Others who cycled in and out of the company said that what they learned in their brief stints helped their careers take off. And more than a few who fled said they later realized they had become addicted to Amazon’s way of working.

Amazon may be singular but perhaps not quite as peculiar as it claims. It has just been quicker in responding to changes that the rest of the work world is now experiencing: data that allows individual performance to be measured continuously, come-and-go relationships between employers and employees, and global competition in which empires rise and fall overnight. Amazon is in the vanguard of where technology wants to take the modern office: more nimble and more productive, but harsher and less forgiving.

“Organizations are turning up the dial, pushing their teams to do more for less money, either to keep up with the competition or just stay ahead of the executioner’s blade,”

At its best, some employees said, Amazon can feel like the Bezos vision come to life, a place willing to embrace risk and strengthen ideas by stress test. Employees often say their co-workers are the sharpest, most committed colleagues they have ever met, taking to heart instructions in the leadership principles like “never settle” and “no task is beneath them.”

In contrast to companies where declarations about their philosophy amount to vague platitudes, Amazon has rules that are part of its daily language and rituals, used in hiring, cited at meetings and quoted in food-truck lines at lunchtime

“You can work long, hard or smart, but at Amazon.com you can’t choose two out of three,” Mr. Bezos wrote in his 1997 letter to shareholders

mazon, though, offers no pretense that catering to employees is a priority. Compensation

As the company has grown, Mr. Bezos has become more committed to his original ideas, viewing them in almost moral terms, those who have worked closely with him say. “My main job today: I work hard at helping to maintain the culture,”

perhaps the most distinctive is his belief that harmony is often overvalued in the workplace — that it can stifle honest critique and encourage polite praise for flawed ideas. Instead, Amazonians are instructed to “disagree and commit” (

According to early executives and employees, Mr. Bezos was determined almost from the moment he founded Amazon in 1994 to resist the forces he thought sapped businesses over time — bureaucracy, profligate spending, lack of rigor. As the company grew, he wanted to codify his ideas about the workplace, some of them proudly counterintuitive, into instructions simple enough for a new worker to understand, general enough to apply to the nearly limitless number of businesses he wanted to enter and stringent enough to stave off the mediocrity he feared.

Company veterans often say the genius of Amazon is the way it drives them to drive themselves. “If you’re a good Amazonian, you become an Amabot,” said one employee, using a term that means you have become at one with the system.

But in its offices, Amazon uses a self-reinforcing set of management, data and psychological tools to spur its tens of thousands of white-collar employees to do more and more. “The company is running a continual performance improvement algorithm on its staff,” said Amy Michaels, a former Kindle marketer.

As the newcomers acclimate, they often feel dazzled, flattered and intimidated by how much responsibility the company puts on their shoulders and how directly Amazon links their performance to the success of their assigned projects

Every aspect of the Amazon system amplifies the others to motivate and discipline the company’s marketers, engineers and finance specialists: the leadership principles; rigorous, continuing feedback on performance; and the competition among peers who fear missing a potential problem or improvement and race to answer an email before anyone else.

many others said the culture stoked their willingness to erode work-life boundaries, castigate themselves for shortcomings (being “vocally self-critical” is included in the description of the leadership principles) and try to impress a company that can often feel like an insatiable taskmaster.

“One time I didn’t sleep for four days straight,” said Dina Vaccari, who joined in 2008 to sell Amazon gift cards to other companies and once used her own money, without asking for approval, to pay a freelancer in India to enter data so she could get more done. “These businesses were my babies, and I did whatever I could to make them successful.”

To prod employees, Amazon has a powerful lever: more data than any retail operation in history. Its perpetual flow of real-time, ultradetailed metrics allows the company to measure nearly everything its customers do:

Amazon employees are held accountable for a staggering array of metrics, a process that unfolds in what can be anxiety-provoking sessions called business reviews, held weekly or monthly among various teams. A day or two before the meetings, employees receive printouts, sometimes up to 50 or 60 pages long, several workers said. At the reviews, employees are cold-called and pop-quizzed on any one of those thousands of numbers.

Ms. Willet’s co-workers strafed her through the Anytime Feedback Tool, the widget in the company directory that allows employees to send praise or criticism about colleagues to management. (While bosses know who sends the comments, their identities are not typically shared with the subjects of the remarks.) Because team members are ranked, and those at the bottom eliminated every year, it is in everyone’s interest to outperform everyone else.

many workers called it a river of intrigue and scheming. They described making quiet pacts with colleagues to bury the same person at once, or to praise one another lavishly. Many others, along with Ms. Willet, described feeling sabotaged by negative comments from unidentified colleagues with whom they could not argue

The rivalries at Amazon extend beyond behind-the-back comments. Employees say that the Bezos ideal, a meritocracy in which people and ideas compete and the best win, where co-workers challenge one another “even when doing so is uncomfortable or exhausting,” as the leadership principles note, has turned into a world of frequent combat

Resources are sometimes hoarded. That includes promising job candidates, who are especially precious at a company with a high number of open positions. To get new team members, one veteran said, sometimes “you drown someone in the deep end of the pool,” then take his or her subordinates. Ideas are critiqued so harshly in meetings at times that some workers fear speaking up.

David Loftesness, a senior developer, said he admired the customer focus but could not tolerate the hostile language used in many meetings, a comment echoed by many others.

Each year, the internal competition culminates at an extended semi-open tournament called an Organization Level Review, where managers debate subordinates’ rankings, assigning and reassigning names to boxes in a matrix projected on the wall. In recent years, other large companies, including Microsoft, General Electric and Accenture Consulting, have dropped the practice — often called stack ranking, or “rank and yank” — in part because it can force managers to get rid of valuable talent just to meet quotas.

Molly Jay, an early member of the Kindle team, said she received high ratings for years. But when she began traveling to care for her father, who was suffering from cancer, and cut back working on nights and weekends, her status changed. She was blocked from transferring to a less pressure-filled job, she said, and her boss told her she was “a problem.” As her father was dying, she took unpaid leave to care for him and never returned to Amazon.

“When you’re not able to give your absolute all, 80 hours a week, they see it as a major weakness,” she said.

A woman who had thyroid cancer was given a low performance rating after she returned from treatment. She says her manager explained that while she was out, her peers were accomplishing a great deal. Another employee who miscarried twins left for a business trip the day after she had surgery. “I’m sorry, the work is still going to need to get done,” she said her boss told her. “From where you are in life, trying to start a family, I don’t know if this is the right place for you.”

A woman who had breast cancer was told that she was put on a “performance improvement plan” — Amazon code for “you’re in danger of being fired” — because “difficulties” in her “personal life” had interfered with fulfilling her work goals. Their accounts echoed others from workers who had suffered health crises and felt they had also been judged harshly instead of being given time to recover.

Amazon retains new workers in part by requiring them to repay a part of their signing bonus if they leave within a year, and a portion of their hefty relocation fees if they leave within two years.

In interviews, 40-year-old men were convinced Amazon would replace them with 30-year-olds who could put in more hours, and 30-year-olds were sure that the company preferred to hire 20-somethings who would outwork them. A

A 2013 survey by PayScale, a salary analysis firm, put the median employee tenure at one year, among the briefest in the Fortune 500

Recruiters, though, also say that other businesses are sometimes cautious about bringing in Amazon workers, because they have been trained to be so combative. The derisive local nickname for Amazon employees is “Amholes” — pugnacious and work-obsessed.

By the time the dust settles in three years, Amazon will have enough space for 50,000 employees or so, more than triple what it had as recently as 2013.

just as Jeff Bezos was able to see the future of e-commerce before anyone else, she added, he was able to envision a new kind of workplace: fluid but tough, with employees staying only a short time and employers demanding the maximum.

“Amazon is driven by data,” said Ms. Pearce, who now runs her own Seattle software company, which is well stocked with ex-Amazonians. “It will only change if the data says it must — when the entire way of hiring and working and firing stops making economic sense.”

It burned through more than $120 billion in foreign currency supplies last year. It now has $388.5 billion left in total international reserves, including gold and other liquid foreign assets.

Juul is the logical extension of the Silicon Valley growth-hacking playbook: Design a flawless product, add a dopamine response, stir in some influencers and watch your product, game or app go viral.

Consider the outcry last week when TechCrunch reported that Facebook had been paying people (including teens) $20 a month to download an app that monitors a user’s mobile and web activity. Apple, long a privacy advocate and favored troll of Facebook, reacted swiftly by cutting off “Facebook Research” and the company’s internal apps. Tech Twitter, however, seemed largely perplexed: In the future, won’t we all sell our data rather than give it away for free?

If Silicon Valley was once converging on a moral cohesion of sorts — where progressive values and wokemanship acted as a loose ethical framework — it’s now becoming harder to avoid the varying ethical debates concerning privacy, addiction and growing geopolitical discord.

For the virtuous founders avoiding addictive products and invasive data-gathering, even they have to worry about who’s getting on their equity ownership table.

founders have to wonder whether that seemingly diverse venture capital fund is backed by regimes where women, minorities and dissidents are killed for expressing themselves.

of course, the morality of a company often depends on the morality of the people in charge

If and when recession comes, the world will have much less room than usual to maneuver.

The world can accept a message that the United States wants a fairer allocation of the burden of upholding the global system, that after a period of weak economic performance America needs to concentrate more efforts at home, and that it will be guided by its economic and security interests, not the promotion of abstract values.

If the short-run concern of those gathered in Davos will be how the world will deal with the next recession, the long-run one has to be declining appeal of democratic global values. In countries as diverse as the United States, Britain, Turkey, Russia, Israel and China, it appears that the governmental platform that commands the most popular support is rooted in nativism, nationalism and negativism. Populist nationalism eventually produces bad economic results, leading to more pressures for anti-establishment leadership and extreme policies.

At the political level, the kind of agreement forged in London in 2009 between the G20 group of most developed countries to keep markets open, support international institutions and cooperate to stimulate their economies seems much more difficult to achieve today. And there is the real risk in many countries that recession would reinforce tendencies toward authoritarian nationalist politics.

But such a message needs to be accompanied by clear signals that the United States will strive to be a reliable and predictable partner, that it understands its interest in strong effective global institutions and that it recognizes that even self-interested nations can benefit from thoughtful diplomacy

what matters for equity valuations is which energy sources dominate the growth in demand, not which sources dominate the overall level of demand.

It is the marginal change in the composition of the German power market every year over the last decade rather than the annual system change in the composition of demand that explains why the German utilities E.ON and RWE have lost ~80% of their market capitalization since 2008.

In a mature market with a fast-growing, low-cost new entrant (renewables) the equity market will price in the decline of fossil-fuels far quicker than their market share will actually fall

the oil & gas (O&G) and Automotive sectors are increasingly exposed to the same kind of disruptive change that the German utilities have faced over the last decade.

Equities are priced on expected discounted cash-flows, and for energy companies expected future cash-flows depend on market expectations of future volumes sold and prices achieved. In the German power market up until 2008, the largest incumbent power generators, E.ON and RWE, had a diversified mix of conventional power plants consisting mainly of fossil-fuel (i.e. coal and gas) and nuclear capacity, but these incumbents were not investing in renewable energy at all over 2002-2008.

nearly all of the demand growth over 2002-08 has been captured by renewable energy sources. Indeed, and as can be seen in Figure 1, of the total 50TWh increase in demand over these six years, 47TWh was captured by renewables, and only 3TWh by conventional power sources. It also means that since 2008, as renewables have continued to grow relentlessly, the market share of conventional generation, including fossil fuels, has inexorably declined.

even after the last 15 years of spectacular growth in renewables, conventional generation – nuclear and fossil-fuel based capacity combined – still accounts for the lion’s share of generation, with 325TWh of total output in 2018 (60% of the market) versus 219TWh for renewables (40%). This is precisely why the German government is having to accelerate the phase-out of coal to help it achieve its longer-term emissions targets – the current rate of system change is simply not fast enough to meet those targets.

the equity market started to price in the end of conventional power generation in Germany as soon as it peaked 10 years ago, even though at that time it still accounted for over 80% of the market.

it would be of little consolation to shareholders in the oil majors if the share of oil and gas in the global energy mix in 2030 were still above 50% but demand had peaked before that and prices had started falling owing to the continuing rapid growth of low-cost renewables.

it is worth contemplating that in 2017, while fossil fuels still accounted for 85% of total system demand and renewables for only 3.6%, renewables already accounted for 30% of the growth in energy demand

Based on epidemiological projections, as the virus ran unchecked, it would quickly expand to infect somewhat over half the population before herd immunity would slow its course. Assuming a death rate of about 1 percent of those infected, about 1.7 million Americans would die within a year.

The only case in which the benefits of lifting restrictions outweigh the costs in lost lives, Mr. Wolfers said, would be if “the epidemiologists are lying to us about people dying.”

Government agencies calculate these trade-offs regularly. The Environmental Protection Agency, for instance, has established a cost of about $9.5 million per life saved as a benchmark for determining whether to clean up a toxic waste site.

The economy would contract sharply even without a government-imposed lockdown as people chose to stay away from workplaces and stores, hoping to prevent contagion. In that case of voluntary isolation, Mr. Eichenbaum and his colleagues estimated that U.S. consumer demand would decline by $800 billion in 2020, or about 5.5 percent.

It’s useful to adopt the cost-benefit frame, but the moment you do that, the outcomes are so overwhelming that you don’t need to fill in the details to know what to do,”

A policy to contain the virus by reducing economic activity would slow the progression of the virus and reduce the death rate, but it would also impose a greater economic cost.

Mr. Eichenbaum and his colleagues say the “optimal” policy — assessing economic losses alongside lives — requires restrictions that slow the economy substantially. Under their approach, the decline in consumption in 2020 more than doubles, to $1.8 trillion, but the deaths drop by half a million people

That would amount to $2 million in lost economic activity per life saved.

an important corollary is that there are limits to the sacrifice: Beyond a certain point, it would not be worth it to lose more economic activity in order to save more people.

The discussion gets even more touchy when one considers the age profile of the dead. It raises the question: Is saving the life of an 80-year-old as valuable as saving the life of a baby?

Cass Sunstein, a legal scholar who worked for the Obama administration, heading the White House office in charge of these valuations, once proposed focusing government policies on saving years of life rather than lives, as is customary in other countries.

Classes will be online-only until further notice. Smart. But at some point parents will surely ask, “Why again are we paying 78 grand a year?” Is the end of universities far behind?

What about mobile and cloud computing, and even the stock market and its trillion-dollar valuations? It’s worth asking, as venture capital and private equity using cheap debt are keeping companies private longer, or forever

No, growth will still rule, but with a different set of leaders. In the bio world, DNA sequencing and Crispr gene editing are starting to ramp up.

Health care will be transformed by new ways to detect and treat cancer and other ways to cure previously incurable diseases like sickle-cell anemia.

Here’s hoping for some knock-your-socks-off new mobile products. Note also that we’re only about a third of the way into the cloudification of enterprises. And we’re only beginning to master machine learning and artificial intelligence, with their ability to find patterns that humans can’t. I think the next tech era will be driven by implementation of AI-infused systems into every business.

the past 30 year’s tech abundance means the developing world’s billions will finally see productivity improvements and attract an increasing share of investment. That’s probably right.

US coal companies had already lost 90% of their value, he noted, but banks were also at risk. “Just like in any other major structural change, those banks overexposed to the sunset sectors will suffer accordingly,” he told the Guardian.

“Some [assets] will go up, many will go down. The question is whether the transition is smooth or is it something that is delayed and then happens very abruptly. That is an open question,” he said. “The longer the adjustment is delayed in the real economy, the greater the risk that there is a sharp adjustment.”

Far from damaging the global economy, climate action bolsters economic growth, according to Carney. “There is a need for [action] to achieve net zero emissions, but actually it comes at a time when there is a need for a big increase in investment globally to accelerate the pace of global growth, to help get global interest rates up, to get us out of this low-growth, low-interest-rate trap we are in.”

“Certainly the UK financial system is one of the most sophisticated at managing this risk. The UK can extend that lead, for the good of the UK, for the good of the world,” he said. “A number of the industrial solutions draw on the strengths of UK innovation, from the use of artificial intelligence in energy systems through to potentially advanced materials like graphene. There is a big upside for the UK economy.”

Reacting to the Guardian’s revelations about fossil fuel companies, Jeremy Corbyn, the leader of the UK Labour party, said: “Labour will delist companies that fail to meet environmental criteria from the [London Stock Exchange], and reform the finance sector to make it part of the solution to climate change instead of lending to companies that are part of the problem.”