Disruption comes in many forms. Spotting disruption is difficult and elusive. Binary Zen Ventures was created as a medium for disruption. We are singularly focussed on disruption and how it manifests itself through technology. We have firm views on how to harness, guide and deploy technology that aims to disrupt.
Through our experience and analysis we have concluded the following.
TESLA is disruptive, and the electric drivetrain platform it has created can become the industry wide disruption platform. Tesla has the opportunity to standardise the EV drivetrain platform. Lets see how it plays out. (May 2019) Update Feb 2021 - Tesla has confounded even the most bullish supporters. Elon Musk is now the richest man on the planet and TESLA is worth more than the NINE largest car companies combined.
AIRBNB is disruptive and will continue to innovate and grow into something very special. (May 2019) Update Feb 2021 - Airbnb completed its IPO in the midst of CV19. It was the most successful IPO of 2020 and gone on to a $127B valuation. More than all of the top hotel chains combined.
UBERS’ value is tied to its ability to scale UBER EATS and last mile delivery (not just food delivery but anything you value that can be delivered anywhere, anytime, 24/7, across the world). The global battle is in scalable last mile value creation, not commuter transport (that’s an autonomy play). (May 2019) Update 2021 -Uber has acquired Postmates for $2.5B to solidify its last mile delivery strength.
LYFT is not a viable business model, they are out of business, they just don’t know it yet. (May 2019)
AMAZON WEB SERVICES (AWS) should be spun out to create more value for shareholders. (May 2019)
INSTAGRAM and WHATSAPP will be more valuable than FACEBOOK. (May 2019)
We agree with Prof Scott Galloway - CONSUMERS want less choice and less brands. They prefer an intimate relationship with few brands. Think Apple, Nike & Disney. One super subscription bundle with a brand you trust that takes care of your entertainment, communication, health, financial, & travel needs. (June 2019) Update - Post Covid19 these brands have gone on to thrive and substantially increase their market cap. Momentum for these brands will continue as they diversify their in home and out of home services. Watch for all these brands to launch bundled subscription services.
WEWORK is gearing up for an IPO. At current valuation multiples its value will halve in twelve months. (June 2019). (Update - Wework IPO was cancelled given its fundamental challenges to its business model. It is battling to remain viable)
SAAS & Cloud is the best platform for disruption. (June 2019)
If any of these observations touch a nerve, we want to hear from you.
Send your thoughts or ideas to terryg@binaryzen.com.au