Dec 23, 2018

How Reid Hoffman sees the future

Photo: Steve Jennings/Getty Images for TechCrunch

Reid Hoffman — co-founder of LinkedIn, Greylock partner and co-author of the new "Blitzscaling: The Lightning-Fast Path to Building Massively Valuable Companies" — joins a venture-capital roundtable for Barron's.

What's next: "People think cloud computing is already big, so they move on. But combining multiple sources of data with VR and AI techniques has stunning implications. Would you rather have your average radiologist or a trained AI program read your films? This transformation is just beginning."

  • "Moore’s Law is coming to space. We are going to see a revolution in space. We could see manufacturing in space, and maybe on Mars. At the moment, this sounds like science fiction. It’s not usually talked about much, unlike AI and biotech. I have invested in a satellite propulsion company, Apollo Fusion."

Between the lines: Hoffman weighed in on IPOs...

  • "You can usually tell when a company is really getting ready to go public because they hire a public-company chief financial officer 12 to 24 months beforehand."
  • "In addition to getting liquidity, companies frequently use IPOs ... to have a debutante moment. When you come public, there is a whole bunch of press oriented toward you. But if you have a suck-all-the-oxygen-out-of-the-room political fight [in 2020], that could pose challenges for the debutante feature of going public."

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Scoop: Top NSC official reassigned to Energy Department amid "Anonymous" fallout

Photo: Mark Wilson/Getty Images

Deputy national security adviser Victoria Coates will be reassigned as a senior adviser to Energy Secretary Dan Brouillette, the National Security Council said Thursday — and a senior White House official said that the administration "rejects" the rumors that she is "Anonymous."

Why it matters: Coates has battled claims that she is the still-unknown Trump administration official that penned a New York Times op-ed and book critical of President Trump.

The Fed may be setting the table for 2020 rate cuts

Illustration: Sarah Grillo/Axios

The Fed looks to be laying the groundwork to lower U.S. interest rates this year, just as they did in April 2019 before cutting rates in July, September and October.

Why it matters: A Fed rate cut makes taking on debt more attractive for U.S. consumers and businesses, helping to juice the economy, but also puts the central bank in a weaker position to fight off a potential recession.

Morgan Stanley to buy E*Trade in a $13 billion deal

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Morgan Stanley is planning to buy E*Trade Financial Corp. in a $13 billion all-stock deal, the Wall Street Journal reports, with plans to acquire the company known for helping everyday Americans manage their money.

Why it matters: The deal, which would be the largest by a major American bank since the financial crisis, signals Morgan Stanley‘s desire to bulk up in wealth management.