Japanese internet cafes' latest service is VR theater for one

Japanese internet cafes' latest service is VR theater for one

'Attack On Titan' and 'Ghost In the Shell' VR content will debut on Gear VR hardware.


'Attack On Titan' and 'Ghost In the Shell' VR content will debut on Gear VR hardware. And occasionally inside egg chair 'pods'.

Smokey Japanese internet cafesaren't where the possible future of entertainment is typically revealed to the press, but here I am. An association of said internet cafes and entertainment complexes will roll out a virtual reality 'theater' service across Japan, starting with 31 establishments in the Kanto region. Importantly, it'll feature content that people might actually want to watch: a quick VR take on popular anime series Attack On Titan as well as a full 15-minute Ghost In The Shell 360-degree CGI movie. For better or worse, Gear VR will be powering the service, and to make it seem all the more futuristic, some cafes will have egg chairs to sit in. Cool, yes. But, comfortable? Well...

Gallery: Virtual Reality Theater comes to Japan's internet cafes | 10 Photos

New Music: Patty Griffin Records Lost Karen Dalton Song

New Music: Patty Griffin Records Lost Karen Dalton Song

Remembering Mountains: Unheard Songs by Karen Dalton comes out May 26.

Courtesy of the artist hide caption

toggle caption Courtesy of the artist

Remembering Mountains: Unheard Songs by Karen Dalton comes out May 26.

Courtesy of the artist

Karen Dalton's career was built on covering the songs of others. Patty Griffin writes songs that others famouslycover. Both artists are considered masters of their respective crafts by their peers, but neither is a household name. Each has a voice that sounds like it couldn't possibly be made by the person making it.

The latest bond between these two artists a generation apart is that Griffin is among a dozen women who have taken on a cache of unrecorded Karen Dalton songs, two decades after their writer's death. "All That Shines Is Not Truth" is Griffin's offering to Remembering Mountains: Unheard Songs By Karen Dalton , a collection of songs Dalton wrote and never recorded — or, in some cases, shared at all — before she died in 1993. A few of the songs in this collection came with ideas for tablature. Many didn't, and contributors like Lucinda Williams, Sharon Van Ettenand Marissa Nadlerwere given carte blanche.

Griffin took hers, a dark poem about the difference between beauty and perfection, and aimed it at the back row of pews. She recorded "All That Shines" in an Austin church, filling both the structure and the song to the brim with swooping gospel vocals, piano and organ. This song is in a low register for Griffin's soprano, which seems like a nod to her source material. Dalton's world-weary voice and devastatingly intimate delivery are her legacy, particularly as they related to and hinted at her troubled personal life. The dips might be Dalton's, but the soar is all Griffin's.

The question of authorship in regard to Karen Dalton has always been complicated. She released two albums in her lifetime, neither of which contained any original material — at least nothing Dalton wrote herself. Her blend of folk and blues was indeed original, and she sang words she didn't write so convincingly that pushing the point of who created what seems slightly blasphemous. And now we're hearing her own words, sung by voices that aren't hers, in melodies she wouldn't recognize. Remembering Mountains is a patchwork quilt of collaboration, and, missing a pattern to go from, the stitches will never match seamlessly. But it's also a fantastic act of faith that art can survive and bloom, even when its makers can't.

Interest Rates, Unicorns And What The Fed Means To Silicon Valley

Interest Rates, Unicorns And What The Fed Means To Silicon Valley

Bill Reichert Crunch Network Contributor
Most citizens of Silicon Valley see the drama around the Fed’s activities as only marginally relevant to innovation and entrepreneurship.

Bill Reichert is a managing director at Garage Technology Ventures.

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But three big macroeconomic forces have supported, if not driven, the extraordinary growth of Silicon Valley startups over the past several years, and changes in these forces could have a dramatic impact on Silicon Valley and other startup hubs.

Of course, macroeconomic trends have always had an impact on startup fundraising and venture capital investment. Interest rates, commodity prices, currency rates, and regional economic growth rates are all relevant to the investment climate. But lately Silicon Valley has seemed insulated from this reality. If you joined the startup world in the past five years, you might think that the explosion of new companies, new venture funds, and new unicorns is just the natural order of things.

Now, changes in these macroeconomic forces — starting with the interest rate hike — could have a dramatic impact on Silicon Valley and other regions.

First, the extended era of low interest rates has pushed asset managers to seek out new opportunities for return.  Traditionally, economists talk about “easy money” spurring increased business investment, but venture capital is not particularly sensitive to interest rates directly.  The impact of low interest rates has been indirect.

Asset managers seeking higher rates of return saw an opportunity in the venture capital asset class, and so we saw a bunch of new investors jump into the space who were not commonly considered players in venture capital — massive firms like Goldman Sachs and Fidelity Investments.

Great news, right?  Well, the problem is that venture capital is actually a very tiny asset class.  The main asset classes, like public equities, bonds, real estate, commodities, and currencies make venture capital look like a kindergarten sandbox in comparison.  Each year, tens of billions of dollars go to venture capital investments.

By comparison, each year tens of trillions of dollars go to stock market or bond market investments.  Goldman Sachs alone has over $1 trillion of “other people’s money” under management.  That’s probably ten times more than the entire U.S. venture capital industry.

Changes in these macroeconomic forces — starting with the interest rate hike — could have a dramatic impact on Silicon Valley and other regions.

So if only a tiny bit of money flows out of one of the major asset classes into the venture capital market, it can have a huge distorting effect.  And that’s exactly what we’ve seen over the past five years.  Venture capital investing has expanded dramatically as this “trickle” of money — only tens of billions of dollars — has shifted from low-return assets to venture capital.

The majority of this new money has come in the form of “late stage” investing and corporate investing.  The result?  Unicorns!  When more money chases a limited stock of investment opportunities, prices (in this case, valuations) go up.

Second, compounding this run up in asset prices is the appreciation of the dollar on the global currency markets.  Because the world was anticipating an increase in U.S. interest rates, the value of the dollar has been increasing for the past two years, since the Fed started signaling that it would eventually raise rates.

Historically, an increase in the value of the U.S. dollar tends to correlate with a decrease in commodity prices. So global asset managers tend to shift assets out of commodities, like gold and oil. This accelerates the above problem of money managers chasing returns.

This disparity in global pricing is not lost on startup companies.  Entrepreneurs in Europe and elsewhere see that their counterparts in the U.S. are getting investor valuations that are sometimes 2x to 5x higher than anyone in their local markets can get.  Not to mention the harsh reality that in most parts of the world, the venture capital base is very thin.  So every day, on pretty much every plane landing at San Francisco International, another team of entrepreneurs arrives in Silicon Valley to seek out their fame and fortune.

Third, the slowdown in global industrial growth has, ironically, added to the unicorn phenomenon.

Corporations all over the world have discovered that most of the low-hanging fruit from the last thirty years of global growth have been plucked, and continued growth is going to get harder and harder.

As a result, corporations have embraced the concept of “open innovation,” which means buying growth rather than inventing it yourself.

This has prompted a thundering herd of corporate venture capital groups to set up shop in Silicon Valley and partner with startups who might otherwise disrupt them out of business.

All this has been great for Silicon Valley.  At least, as long as you are participating in the increase in jobs, salaries, and equity.  (If your only exposure to the ebullience is increased traffic and rent, it’s not so much fun.)

Entrepreneurs who are hoping to raise a few hundred million dollars and play with the unicorns will be sadly disappointed.

So now the big question is, when will the music stop?  Will an increase in interest rates reverse the flows?  We have learned that markets are driven by expectations:  Buy on the rumor, sell on the news.  As interest rates go up, and rumor becomes news, will the flow of assets into venture capital reverse?  Will the prices of unicorns come down?

It is very hard to see how the trend of the last few years can be sustained.  Already we can see that the public markets can’t possibly absorb all the unicorns at their current prices.  And very few unicorns can get comparable prices from corporate acquisition.

Meanwhile, the overwhelming bulk of the returns that venture capital firms are reporting to their limited partner investors are “unrealized” returns — increased valuations on paper that have not yet turned into cold, hard cash.

The most likely path forward, or maybe it is just the most hoped-for path, is a series of modest disappointments as valuations deflate.  But even at half their valuations, almost all the unicorns and their lesser brethren (companies worth only a few hundred million dollars) will generate very nice returns for most of their venture capital investors.

Some late stage investors will get burned — those that didn’t negotiate a ratchet in their investment agreements.  The flow of money into venture capital will weaken, and it will get harder for everyone, investors and entrepreneurs alike.  But innovation and disruption will continue, and investors will still chase the next big things.

Where does that leave venture investors? A few will still do well. Those that have focused on companies with real core value, with novel technology and a sustainable competitive advantage, will stand to benefit as these companies mature into a later-stage environment now cleared of overinflated expectations.

Entrepreneurs who are hoping to raise a few hundred million dollars and play with the unicorns will be sadly disappointed.  With luck, the markets will not overreact in the other direction, and solid, disciplined execution will once again be rewarded.

TSMC narrows production of 16nm FinFET chips to late 2013, wants 10nm in 2015

TSMC narrows production of 16nm FinFET chips to late 2013, wants 10nm in 2015

For as often as TSMC has extolled the virtues of FinFET chip designs, we've been wondering exactly when we'd find them sitting in our devices.

chip designs, we've been wondering exactly when we'd find them sitting in our devices. Thanks to competition from rival semiconductor firms, we'll get them relatively soon: the company now expects to produce its first wave of FinFET-based, 16-nanometer chips toward the end of 2013. While they won't be as nice as 14nm-XMchips in the pipeline, the 16nm parts should still offer battery life and speed improvements over the 28nm chips we know today. These improvements also won't be the end of the road -- TSMC anticipates 10nm designs built on extreme ultraviolet lithographylate into 2015, and CEO Morris Chang believes there's seven or more years of advancements in manufacturing before Moore's Lawstarts breaking down. We'll just be happy if we see FinFET reach our phones and tablets in the near term.

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Sam Cooke At 80: The Career That Could Have Been

Sam Cooke At 80: The Career That Could Have Been

Sam Cooke in an RCA Recording Studio in Los Angeles, circa 1959.

Michael Ochs Archives/Getty Images hide caption

toggle caption Michael Ochs Archives/Getty Images

Sam Cooke in an RCA Recording Studio in Los Angeles, circa 1959.

Michael Ochs Archives/Getty Images

It feels strange to suggest that Sam Cookeisn't appreciated enough. Cooke, a legend of soul, has been celebrated in nearly every way a musician can. He's been included in lists of the greatest singers of all time, voted a charter member of the Rock & Roll Hall of Fame and awarded a posthumous lifetime achievement Grammy. You can still hear his songs in movies and sing them in karaoke parlors.

But the adulation has an effect of obscuring what's most enduring about Cooke's legacy — that he never sat still long enough to become as big a star as he might have deserved.

Cooke would have turned 80 years old on Saturday. He was a songwriter, a label owner, and a performer who "[lived] in the 'top ten,'" as his record label once put it. His was a career defined by ambition — a desire to push against the limits of his success — nearly as much as it was by the success itself. Born in Clarksdale, Miss. and raised in Chicago, Cooke's singing career began when he was just six, a standout talent in a family of gospel singers that traveled to accompany their father's sermons. He joined the Soul Stirrers at the age of 19; the gospel group, still around today, was five years older than Cooke. At 26, he ventured into the world of secular music. He brought a gospel authority to pop songs about broken hearts and puppy love. When he turned away from songs about twisting and aimed at social concerns, he did it by degrees, making a sympathetic depiction of prisoners working on the side of the road sound like a love song, or rewriting reverent gospel songs to reflect concerns and anxieties related to love or money.

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But think of classic soul singers, and he's not the first one that comes to mind (that'd be Aretha Franklinor Marvin Gaye). The same goes for R&B ( Ray Charles, James Brown) or pre- Beatlesvocal pop ( Sinatraand nobody else). Cooke's hits may stay with us forever, but in some way they overshadow a monstrous career that could have been but, through accidents of timing and fate and caution, wasn't.

The music that exists is worth plenty, though. No one else does so much with so little. Again, I know that sounds strange — Cooke had an enormous natural talent — but he mined a narrow vein, one in which restraint was prized over embellishment. So Cooke sang direct and clean lines, never pushing or straining his voice, always perfectly in time and tone with thoughtfully arranged instrumentals. No flailing, cathartic vocal runs, no bursts of horns, just precision filigreed with the occasional, sighing "whoa-oh-oh-oh" like the one that punctuates the chorus of "You Send Me."

But it's difficult to hear his songs and not feel a nagging desire for the fulfillment of a promise that's never quite met. From those sweetly anodyne backing vocals on "You Send Me," designed to ease his introduction to white pop audiences, to his absurdly perfect pronunciation of the phrase "How are you doing out there?" as he greets the black Miami crowd at the 1963 concert recorded and released as the album One Night Stand , you can always hear the facade Cooke and his producers are building. They anticipated and played to the desires of an audience that didn't yet know it wanted to be led by the hand away from puppy love and into a relationship that burned with a little more fervor. Yes, even on One Night Stand , the album that's held up as proof of a grittiness and depth unexplored in his studio recordings, Cooke's singing is always careful, a display of studied perfection and control that's the opposite of his notoriously wild private life, his messy financial dealings, and the shocking and salacious story of the night his life ended at the Hacienda Motel in Los Angeles in 1964. The more you find out about Cooke's life (Peter Guralnick's Dream Boogie: The Triumph of Sam Cooke , a brick of a book, has answers to questions you'd never think to ask), the harder it becomes to square the man with the music.

Still, I love Sam Cooke's singing as much as I love anyone's. What's the problem, then? I can only imagine Cooke's restlessness never allowed his talent to catch up with his ambition. With a few stellar exceptions, he doesn't have perfect songs in his catalog. That Cooke's songs were classics isn't up for debate. They're covered endlessly, and with nearly zero exceptions, fail to live up to his standard (call it blasphemy, but I prefer Otis Redding's version of "A Change Is Gonna Come"). And yet, to listen to a Sam Cooke song carefully, to hold it close to you, is to feel a shred of disappointment, in his choice of songs, in their subject matter, for the fate of a life cut short.

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The issue may be one of historical perspective. The Sam Cooke in my mind contains multitudes: gospel hero, teen pop idol with white America on a string, soul heavyweight with a vibrant political consciousness who heard Bob Dylan's "Blowin' In The Wind" and couldn't restrain himself from penning a civil rights anthem that matches in bruised hope what Dylan laid down in righteous sarcasm.

But Cooke lived these personae in series, not in tandem; it's the deification of the man's talent that accordions history. To make an argument out of a historically jumbled metaphor, imagine a singer moving from the peaks of gospel to teen dance pop to political folk — Kirk Franklin to Cali Swag District to Bob Dylan — within a few short years.

So it's a paradox, but a rewarding one, that in his best recordings, Cooke can almost eerily flatten time. He can make you feel two conflicting emotions at once — and then recognize in that conflict the tug of a third, something that I can only identify as awe for his abilities. My own favorite Sam Cooke song (my favorite anyone song) is "Bring It On Home To Me," a 1962 Cooke composition that was a hit when it was released, and has been covered by a list of greats that includes Aretha Franklin, Otis Redding, Paul McCartney, John Lennon, Rod Stewart and the Faces, Van Morrison, and more recently, Spoon's Britt Daniel (whose own "Anything You Want" is a rewriting of Cooke's song and the most heartbreaking thing in Spoon's catalog) and the Decemberists' Colin Meloy.

Cooke's version is one of those few perfect recordings from his catalog. "Bring It On Home To Me" is a heartbreak song, with perfectly chosen lyrics and a structure that wobbles between verses and choruses so short and strong that one nearly leans into the other. It's sung from the perspective of a lover whose partner has already departed — it's too late to convince her to come back — but is so blunt in its desperation, and so clear in its depiction of desire, that you can almost imagine her returning. Or maybe it's a song of reconciliation, and that touch of jubilation in Lou Rawls' call-and-response backing vocals mimics the memory — like a gentle, shared joke — of the time they spent apart. Maybe she's already come home. Of course she has. If she hadn't, who would be there to hear that lovely voice?

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Workers in their 20s are more likely to get free food than health insurance

Workers in their 20s are more likely to get free food than health insurance

Millennials are gaining a reputation as the generation that can’t stand still.

They’re more likely to embrace the gig economy, and the length of time they stick with any company is shortening, according to recruiting-software firm Jobvite.

“With my father’s generation, people changed jobs four times in their lifetime,” Jobvite CEO Dan Finnigan tells Quartz. “With my generation, it’s eight times—which by the way, this is my seventh or eighth job. Today, people in their early 20s will change jobs 15 to 20 times or more—every three to four years.”

But what the young adults lack in stability, they make up with free food. That’s the top job perk reported by those between 18 and 29, according to a survey Jobvite released today (March 23) that polled 2,035 adults in the US. Thirty-five percent of them say their companies provide them with free snacks and meals—a benefit that’s become more common than health and dental insurance for this demographic.

There is no gender gap in tech salaries

There is no gender gap in tech salaries

Silicon Valley has long suffered the reputation of being unwelcoming to women, from brogrammer attitudes to sexist apps to gender inclusivity , but whatever problems women may have with the tech industry, wage discrimination isn’t necessarily one of them.

Read Cynthia’s response to reader questionsabout this article.

, but whatever problems women may have with the tech industry, wage discrimination isn’t necessarily one of them. New research shows that there is no statistically significant difference in earnings between male and female engineers who have the same credentials and make the same choices regarding their career.

A recent study by the American Association of University Women titled “ Graduating to a Pay Gap: The Earnings of Women and Men One Year after College Graduation“ ( pdf) examined data on approximately 15,000 graduates to estimate the effect of gender on wages. Their sample was restricted to those under 35 years old receiving a first bachelor’s degree, in order to avoid confounding factors which affect labor market outcomes. Regression analysis was used to estimate wage differences, after controlling for the following choices and characteristics: graduates’ occupation, economic sector, hours worked, employment status (having multiple jobs as opposed to one full-time job), months unemployed since graduation, grade point average, undergraduate major, kind of institution attended, age, geographical region, and marital status.

“Our analysis shows that occupations like nursing; engineering; and math, computer, and physical science occupations are the best-paying jobs for women one year out of college,” the authors Christianne Corbett and Catherine Hill report. “These tend to be occupations that are well paying throughout a career as well.”

According to the study, there are seven professions with pay equity (see below). When controlled for all factors other than gender, the earnings difference between men and women is about 6.6%, something most people don’t know. The casual observer often has an exaggerated view of the gender wage gap since occupational choices aren’t reflected in the statistics that are cited when the topic of wage equality is discussed in the media.

Professions-with-equal-pay-for-men-and-women-US-year_chartbuilder (1)

Since men and women tend to choose different professions, occupational segregation explains some of the difference in the gender pay gap since men are more likely to choose higher-paying fields. This results in women being disproportionately represented in lower-paying jobs. So men may enjoy an earnings advantage, but it doesn’t mean that women are being paid less for the same job.

The most common explanation for lower wages in female-dominated fields is occupational crowding. Women may be crowded into some occupations, either due to a preference against, or a barrier to, entering a STEM (science, technology, engineering, and mathematics) field. As more women enter a particular field, the pool of candidates becomes larger. Employers are able to pay lower wages and still attract employees who meet the job qualifications. Over time, we see wages decline in fields that have many applicants and an increase in wages in fields that have few applicants.

There is a negative correlation between the share of women in an occupation and the occupation’s average wage, but it is almost always impossible to draw any causal conclusion from a simple statistical correlation. We can take nursing as an example of an occupation that is highly paid even though most of the workers are female.

I asked University of Chicago Professor of Behavioral Science and Economics Dr. Richard Thaler if he thought social pressures influenced women in choosing lower-paying, predominantly female occupations. “Historically, that was certainly true,” said Thaler, the co-author of the 2008 best-seller, which discusses the frameworks and biases that shape decision-making, “but my impression is that it is no longer the primary factor. I think that young women are certainly encouraged to take up traditional male fields much more now than in the past.”

And he’s definitely right, particularly at the best universities in the United States. The 2013 entering class of Massachusetts Institute of Technology, which offers only a Bachelor of Science as an undergraduate degree, is 45% female, compared to 5% in 1966. Last spring, there were more women than menin the Introductory to Computer Science course at the University of California at Berkeley, which TechCrunchdescribes as a “feeder school to Silicon Valley’s top companies.”

In his 2014 State of the Union Address, President Obama said it was “wrong” and “an embarrassment” that women are paid 77 cents for every dollar a man makes, implying that the pay disparity is due to sexism and gender wage discrimination. His careful construction elides the fact that the 77% statistic does not refer to “equal work.” That number is a Census Bureaucomparison of the annual wages of all workers, regardless of occupation.

The United States Bureau of Labor Statisticsshow that when measured hourly, not annually, the pay gap between men and women is 14% not 23%. The Federal Reserve Bank of St. Louisprefers working with hourly wages, arguing “an incomplete picture” is cast with weekly earnings because women work fewer hours than men, “which would make a gap in weekly earnings between the two groups substantial even if their hourly wages are the same.” The BLS does have earnings data segregated by occupation and gender, but this is only a comparison of the same type of job. It doesn’t compare wages for equal work in the exact same job, a distinction which is made even clearer when we are gently reminded, “It is important to note that the comparisons of earnings in this report are on a broad level and do not control for many factors that can be significant in explaining earnings differences.”

College majors also play a large role in predicting future wages. Yet even when men and women choose the same major, graduate from similar types of colleges and receive similar grades, women still earn less than men but female engineering graduates earn 88% of what male engineering graduates earn ($48,493 for women compared to $55,142 for men). So, what we are seeing is that there are some women who get engineering degrees but then don’t become engineers. I studied computer science in high school and math in college but I’m neither a computer scientist nor a mathematician. Instead, I decided to make life choices that were more personally and spiritually rewarding: I was a rainforest conservationist in Brazil and a teacher in India.

One reason that explains why there is a pay gap when measured by college major but not when measured by profession is that some female engineers abandon their careers months after starting. This would explain why overall annual incomes measured one year after graduation would be lower for these women. If employers are risk averse, wages offered will be lower where productivity is less easily predicted (and where lower productivity is already revealed). The issue in this case is not gender differences in productivity but, rather, how employers predict what kind of worker they’re hiring based on his or her previous employment history.

Also, some women don’t go into the careers their college degree prepares them for because they have less attachment to the labor market. Men and women who have intermittent labor force participation have lower earning paths for several reasons: their current skills depreciate, they don’t receive on-the-job training, and they don’t build up seniority.

Another possible explanation for the lower earnings of highly educated women is that some women may not feel college is about building skills, but see it instead as an opportunity to demonstrate their value through signaling. Signaling in labor marketsallows for employees to reliably communicate unobservable qualities to prospective employers in order differentiate themselves and gain a higher wage. The theory is that education can distinguish between a higher quality candidate and a lower quality one since the costs of education (time, money, effort) will be lower for the former.

Corbett and Hill don’t have data on women who work 30 to 40 hours per week (only 40 or more) but the BLS weekly earnings report showed that women who work 30 to 39 hours per week make 111% of what men make(see table 5). It’s possible that women who are more educated are able to work fewer hours because they have higher-earning partners.

The magnitude and interpretation of the relationship between gender and wages remain in dispute. After adjusting for all the known factors, Corbett and Hill’s model showed an “unexplained” 6.6% difference in wages between men and women who are full-time workers. Conflicting data from the BLS shows that some women who work full-time have a wage premium, and earn 11% more than men. The tech industry is unique in its history of being “equal pay for equal work”: A longitudinal study of female engineers in the 1980s showed a wage penalty of “ essentially zero” for younger cohorts and today, the two highest paying professions with wage equality are in technology (computer scientist and engineer).

Despite strong evidence suggesting gender pay equality, there is still a general perception that women earn less than men do, and this perception is just one more factor discouraging women from entering the tech space.

Follow Cynthia on Twitter @Nin jaEconomics. We welcome your comments at ideas@qz.com.

Correction : An earlier version of this story referenced table 4 instead of table 5 in the BLS weekly earnings report.


Read This Next: The Ninja Economist takes on your attacks over the (lack of a) gender gap in tech salaries
Doomed-i-corns: Unicorns Seemingly Reach a Tipping Point

Doomed-i-corns: Unicorns Seemingly Reach a Tipping Point

This morning, the law firm Fenwick & West published new findings about all the U.S.-based unicorn financings that took place during the last nine months of 2015.

published new findings about all the U.S.-based unicorn financings that took place during the last nine months of 2015. It’s rife with interesting nuggets, but perhaps most fascinating is that in the fourth quarter of last year, half of the 12 rounds it tracked featured valuations in the $1 billion to $1.1 billion range — and with terms that were far more onerous than earlier in the year.

Fenwick & West politely suggests these companies may have been “willing to be more flexible” regarding “investor friendly terms” in order to attain their billion-dollar-plus valuations. We’d call it bone-headed.

The instinct is understandable, to a degree. For the last couple of years, the media has been almost singularly obsessed with companies valued at north of a billion dollars. Some management teams invariably concluded that to attract the attention of reporters and even potential recruits, they needed so-called unicorn status.

Slack is among them. CEO Stewart Butterfield told Fortunein January of last year that if he couldn’t get a billion-dollar valuation straightaway for his company, he wouldn’t raise capital at all, saying the valuation was a “psychological threshold” for “certain types of customers” who want the “comfort of knowing we’re highly valued and financially secure.” Butterfield said the valuation helped with hires, too. “There is a class of employees who are more risk-averse and work at some company like Google or Facebook and they have a mortgage and kids,” he told Fortune. “It helps a lot of those kinds of people as well.”

Well, it does until it doesn’t.

By last fall, plenty of employees were beginning to sense a serious downside to being part of a unicorn company. For one thing, outlets like this one were beginning to write moreabout the liquidation preferences that later-stage investors have come to demand, and the impact such terms have on earlier employees’ holdings.

More employees also began to learn the hard way that when a company’s valuation soars too quickly, the amount of money that the employee needs to buy his or her options escalates too fastfor anyone who isn’t already well off to afford them. (Selling to secondary buyers is sometimes an option permitted by management, but even then, settling on a fair price isn’t easy.)

Perhaps most meaningfully, investors were starting to catch on to problems with their fast-growing portfolio companies, including Fidelity and Blackrock, which began massively marking downthe value of some of their holdings (and attracting the attention of a confused SECin the process).

Indeed, almost overnight, the term “unicorn” became such a liability that industry wags coined a newer term: unicorpses.

The note-taking app maker Evernote, once lauded for cleaning its employees’ homesevery two weeks and offering them unlimited vacation, suddenly began to make headlines for other reasons, including switching its CEO, losing its COO, staging layoffs, killing off products and closing offices.

Former press darling Theranos was very publicly revealed not to have its act together, either.

Of course, this week, high-flying Zenefits – a 3.5-year-old online health benefits manager that managed to garner a $4.5 billionvaluation back in May — booted its co-founderand CEO, Parker Conrad, over the company’s “inadequate” internal processes, controls, and actions around compliance (in the words of its new CEO, David Sacks).

Even pop culture has piled on, with HBO’s “Silicon Valley” being just one show portraying the seeming lunacy and entitlement of today’s would-be tech billionaires.

In the midst of all this, we’re unsure why a CEO would angle for a billion-dollar valuation in the fourth quarter, particularly at terms that were so disadvantageous. Fenwick’s research shows that in 42 percent of the fourth-quarter rounds, investors received senior liquidation preferences, meaning preference over common stock and also other series of preferred stock. That was way up over the third and second quarters of last year, when only 15 percent of rounds included senior liquidation preferences. (In 2014, 19 percent of deals included these terms.)

Blocking rights – which give investors the right to block an IPO if it isn’t priced as high as the unicorn round price, or in some cases, even higher than the unicorn price – also became far more prevalent, with 33 percent of deals including them, versus 25 percent in the third quarter and 20 percent in the second quarter.

Investors basically ask for these terms, and get them, when entrepreneurs don’t have a whole lot of leverage in exchange for the money and valuation they want.

There does seem to be a silver lining in Fenwick’s new report, though. Its numbers suggest we’ve seen a tipping point in unicorn mania.

The reason: There were more unicorn financings in the last three quarters of last year than in the previous 12 months, but the rate of companies becoming newly minted unicorns dropped precipitously in the fourth quarter. (You can see the study here.)

The entire unicorn phenomenon is awfully young, but it’s the first time we’ve seen that kind of dip. (As you may recall, the numbers of unicorns until last quarter have only acceleratedover time.)

Such is our interpretation, anyway. Asked if he agrees that we’ve just witnessed an inflection point, Barry Kramer, one of the Fenwick study’s three authors, tells us it’s entirely possible, but he thinks it’s probably too soon to know for certain, noting that “a lot of variables determine which path a company takes.”

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Says Kramer, “For a number of years, the private-financing unicorn path has been very attractive. But if the terms in unicorn deals start becoming significantly worse, or valuations become significantly worse, or it becomes harder to raise financing, the other alternatives” — including going public, cutting burn rates, and selling to an acquirer — “start looking better.”

VCs aren’t ready to call a top, either. At the same time, some have observed a palpable shift in startup thinking of late.

“We counsel founders to focus on who is the right [investment] partner for their stage and needs, then to try to find mutual ground,” says Hunter Walk, a co-founder of the San Francisco-based venture firm Homebrew. “Of course, a competitive environment and strong company performance will help founders push the market to them,” Walk adds. “But founders – and employees – are being reminded by high-profile stumbles that valuations are a byproduct of great performance, not vice-versa.”

“I think if entrepreneurs think their company is worth [a billion-plus dollars], they still want that kind of valuation,” says Greg Gretsch, a co-founder of Jackson Square Ventures in San Francisco.

That said, adds, Gretsch, “People are listening a little more. We’ve always tended to be on the more conservative side in our guidance to companies. You try to keep people from doing stupid things. It’s not like we’ve changed who we are or the advice we provide. But now there’s not as much of a debate [about the value of that advice]. Now it’s ‘Maybe I should think about X before I do Y.’”

The marijuana industry’s newest customers are sick and elderly dogs

The marijuana industry’s newest customers are sick and elderly dogs

A day before a scheduled vet appointment to euthanize her dog, Wendy Mansfield decided to try one last resort to alleviate the chronic pain of her 15-year-old labrador mix: cookies from a marijuana dispensary made specifically for ailing dogs.

Kali, a mild-mannered 80-pound rescue, was never much of a complainer. But she often licked her paws—an obvious sign of pain, according to her vet—which was typically accompanied by bouts of coughing because of the shedding fur that got in her throat. One cookie and 20 minutes later, the licking suddenly stopped.

Seeing this, Mansfield, who lives in Fort Bragg, California, gave her dog a second cookie, and then a third. Kali, who had been listless and depressed, got up to drink some water and walked outside—something she hadn’t been able to do recently without groaning or obvious signs of pain.

Mansfield then called the vet to cancel her appointment. That was three weeks ago. “Never in my wildest dreams would I have anticipated this,” she tells Quartz. “It brought my dog back.”

With marijuana flourishing into a big business in the US, a new segment of the market catering to aging and ailing pets has been growing under the radar. The legal weed market raked in $2.7 billion in revenue in 2014, and one estimate by the ArcView Group, a network that connects investors with cannabis startups, projects the industry to top $10 billion in salesby 2018.

The pet-pot market is treading on new territory, however. The legal gray area is posing challenges for companies that want to market and distribute cannabis-derived products for animals. There’s also insufficient scientific backing and industry guidelines. Still, that’s not deterring desperate pet owners, like Mansfield, or keeping investorsfrom getting on board.


The FDA is watching

The special cookies given to Kali were produced by Auntie Dolores, an Oakland-based maker of edible marijuana goods, including caramel corn, cheese crackers, and savory pretzels (a bestseller). The seven-year-old company launched its pet treat line, Treatibles, about a year ago.

Unlike its edibles for humans, Treatibles products, which are sold in dispensaries, aren’t made from marijuana but from hemp—the stem of the cannabis plant that’s low in the psychoactive component tetrahydrocannabinol, or THC, which produces that feeling of getting high. Hemp, however, does contain cannabidiol, or CBD, a chemical compound that alleviates pain. The US government also defines hemp as cannabis—not necessarily the stem—that measures less than 0.3% in THC, a threshold that allows its movement across state lines.

Most companies making cannabis-derived pet products choose to use hemp because the federal government still classifies marijuana as a Schedule 1 substance, defined as “drugs with no currently accepted medical use and a high potential for abuse.” Currently, 23 states and the District of Columbia have medical marijuana laws. But as it stands, veterinarians aren’t empowered to prescribe cannabis to pets. That could change soon. Nevadais currently debating a bill that would allow people to obtain medical marijuana for their pets with a vet’s approval.

Though Auntie Dolores CEO Julianna Carella has heard from customers like Mansfield, she’s hesitant to promote the product’s effects, or even market Treatibles at all. “Honestly, we’re hands off with that because we’re not doctors and it’s not our place to prescribe it in that way,” she says. The company’s also wary of attracting the attention of the US Food and Drug Administration, which recently began sending out warning letters to some companies selling cannabis-based products for animals.

One such recipient is Canna Companion, which in February got an ominous letterdelivered to its headquarters outside Seattle saying that its product is an “unapproved new animal drug and your marketing of it violates the [Federal Food, Drug, and Cosmetic] Act.”

Sarah Brandon, an owner of Canna Companion, had no idea such rules existed. She and her husband have researched the effects of cannabis on pets for the past decade, stemming back to their days in veterinary school. In 2014, they took out a $20,000 loan to build a business selling ground hemp powder that dogs and cats consume orally.

They also used language on Canna Companion’s website and social media accounts that made the product sound like a drug, rather than a supplement, which the FDA noticed. This included phrases as innocuous as “safe and effective” and bolder claims like “reduce cancer-associated symptoms.”

“Being vets, we are required by law to use medical terminology,” Brandon says, explaining the original phrasing. “We don’t say an animal has tummy pains. We say they have gastritis and we use those terms.” But she understood the FDA’s point of view, and the company updated the language on its site and social media accounts.

Peak Pharmaceuticals has an exclusive licensing agreement to sell Canna-Pet products.

Canna-Pet, a Seattle company that sells capsules and biscuits for dogs made with hemp, received a similar letterfrom the agency. “It’s not an unusual thing for the supplement industry where the marketer is making claims that might be going too far,” admits Soren Mogelsvang, CEO of Peak Pharmaceuticals, which has an exclusive licensing agreement to sell Canna-Pet products. “We’re all a little guilty of that and were reprimanded by the FDA. We responded to the guidelines and adjusted our marketing materials accordingly.”

That said, the letter didn’t negatively impact sales. “If anything, it might have bumped it up a little,” he says. “Any PR is good PR.”


The role of THC

Some companies play it safe by using hemp, but Alison Ettel, CEO of San Francisco-based TreatWell(previously known as SweetLeaf), takes issue with the ingredient. She says companies that make cannabis-derived products for pets often source industrial-grade hemp, which is bred for fiber instead of medicinal properties.

Ettel only started using marijuana after she fell into a coma in 2011 due to complications from meningitis. In 2014, she created TreatWell with a grower in Humboldt County in California. About six months ago, Ettel, a former dog walker and animal shelter volunteer, began custom-making tinctures after desperate pet owners reached out directly to her. She also gave the concoctions to her own cat, who suffered from cancer and lived to be 15 years old before she was put down in January.

(Treatwell)

Industrial- and food-grade hemp is typically low in extractable cannabinoids. Multiple vets interviewed for this story say cannabis is most effective as a medicine when its full spectrum of cannabinoids (at least 85 have been identified) are deployed, even if they’re not as well studied as THC or CBD. Furthermore, Ettel says most industrial hemp is imported from overseas, where farming practices, such as the use of pesticides, might be more lax compared with the US. Though the marijuana industry can’t lay claim to the organic label, which is federally regulated, TreatWell prides itself on using marijuana grown following organic standards, she says.

Currently, there are no guidelines for marijuana’s use in dogs. But TreatWell believes THC shouldn’t be discounted, even if it draws scrutiny from the government. “What I’ll say is we target certain ratios for certain illnesses,” Ettel says. “I can’t make any claims it’ll cure anything.” Though results vary by individual animals, the company suggests a THC-to-CBD ratio of 1:1 for pain relief and appetite stimulation. A THC-to-CBD ratio of 3:1 is recommended for conditions associated with extreme arthritis, for example.

Because it’s operating in a legal gray area, TreatWell has avoided marketing its pet products and has taken extra precautions with distribution, selling directly to patients in California with medical marijuana cards that have joined its collective. The company also requires vet records from its members to prove their pets’ conditions are legitimate.

“There’s always going to be risk involved,” she says. “To be honest, helping these pets and these people is much more important to me.”


Undeterred investors

Despite the risks, investor interest hasn’t subsided. TreatWell hasn’t taken any outside funding to date, but it’s currently in the process of raising money from investors so it can produce tinctures for pets with standardized dosing and sell them in dispensaries. “[Investors] already swallowed that pill,” says Ettel. “They wouldn’t be there if they weren’t comfortable with cannabis.”

That’s the case with Doug Leighton at Dutchess Capital, a marijuana-focused investment firm in Boston. “I’m already in this space anyway,” he says. He’s also not concerned about the challenges of selling the product because “the dog is not going to go to jail,” he adds.

One of the firm’s investments is in Dixie Elixirs and Edibles, which Leighton says is developing a line for pets. The company, which makes cannabis-infused drinks, treats, and lotions, declined to be interviewed for this story. A representative said it was too early to talk about its plans for the pet market.

Because the cannabis market for pets is so new, others are treading lightly. “The potential issues around politics and legislation are always a concern in the cannabis space,” says Emily Paxhia, a partner at Poseidon Asset Management, an investment firm in the marijuana industry. Still, she can’t deny the “massive market potential” since it sits at the intersection of two billion-dollar industries: pot and pets. In total, investors, including Poseidon, have injected $800,000 into Auntie Dolores so far.

Paxhia saw how Treatibles helped her own dog, Sprout, a three-legged terrier mix. She says the treats have helped reduce Sprout’s inflammation, caused by the additional stress put on her front leg, and calmed her anxiety.

Treatibles is still only a small fraction of Auntie Dolores’s business, having sold about 1,100 units thus far. To provide some context, Carella, who declined to disclose revenue figures, says the company “sold almost a quarter of a million units last year with all our products combined.” The edible goods maker is looking to raise an additional $1.25 million to scale its operations, and it’s in the process of spinning off Treatibles as its own entity, so investors can choose to put their money into either or both businesses.


Scientific backing

Veterinarians are only staring to learn about marijuana’s effects on animals. In March, the California Veterinary Medical Association held a conference in Yosemite National Park where one of the major themes was cannabis.

Dawn Boothe, who teaches at Auburn University’s College of Veterinary Medicine in Alabama, presented on the topic, but admits there’s much that’s unknown. “If you want to back up and have a discussion about the scientific evidence on the use of medical marijuana in dogs, we’re done because there isn’t any,” she says. Prior studies have found, however, that cannabinoid receptors are present in mammals, birds, reptiles, and fish.

Her department recently submitted a grant application to the Morris Animal Foundation, a nonprofit organization that funds scientific studies for animals, to conduct research on cannabinoids’ effects on dogs.

Peak Pharmaceuticals, which has a lab at the University of Colorado in Denver, is also doing its own research. It’s partnered with a vet hospital to conduct clinical studies on the effects of cannabinoids on dogs with epilepsy. The company has also struck an agreement with a university to study the effects of cannabinoids on horses that suffer from joint pain and anxiety.

“If you think about it, universities are still in limbo,” says Mogelsvang, who contractually couldn’t name the company’s research partners yet. “They don’t know if they can research cannabinoids and are worried about losing grant funding. The hemp laws, the farm bills—there’s very little case law that defines what’s right and what’s wrong.

Though Boothe knows the evidence is lacking, she points to past marijuana studies done on lab animals and existing human drugs on the market that contain cannabinoids. One such example is Sativex, a mouth spray prescribed in Europe that controls symptoms associated with multiple sclerosis. It lists THC and CBD as active ingredients. “We can’t ignore the therapeutic benefits,” she says.

That said, she’s extremely wary of hemp-based pet products on the market, especially since there’s so little oversight for supplements.

Many players in the marijuana industry are hoping new research will shed light on cannabis’s effectiveness in pets and help the industry set guidelines on quality and dosage. (The companies interviewed for this story offer suggestions based on the animal’s weight, recommending pet owners start with a lower dose and gradually increase the amount as needed.)


Playing doctor

What Boothe is most concerned about is pet owners making health decisions without the guidance of a vet. “I’d like to think that people would think it’s a bad idea to treat children without a physician’s advice,” she says. “I think it’s the same with animals.”

Even Brandon of Canna Companion agrees. “As a business owner, pet parent, and veterinarian, I absolutely understand that desperation people feel,” she says. “They feel this beloved member of their family is suffering and they don’t know how to help them.”

But she strongly urges pet owners to consult their vets before taking their animals off prescribed drugs. Suddenly stopping some anti-convulsive medications could make their dogs seriously ill, she says, as an example.

Wendy Mansfield never consulted a professional before giving Kali those cookies. Her vet, however, was open-minded about the alternative treatment and asked Mansfield to periodically check in.

Mansfield also reduced the number of drugs Kali takes now. Instead of taking four pills, two of them narcotics, Kali now gets three to four cookies every few hours and a pain blocker to help her sleep at night. “[Vets] are in a strange position, and this is all new,” she says. “The best way to gauge your dog is to watch them. With my involvement with my dog, my vet feels comfortable with my decision.”

Mansfield, who suffers from Bell’s Palsy, chose the same alternative for herself four years ago as she recovered from the effects of meningitis, encephalitis, and a medically-induced coma. Her doctor had prescribed her oxycodone, a narcotic pain killer, but Mansfield was adamant against it, choosing instead to self medicate with marijuana. “I never took one of those pills—never, never, never.”

She can’t help but see the parallel between her and Kali’s lives. “I’m a walking miracle, too,” she says.

Playdate: Crushing the Rebel scum in 'Star Wars: Battlefront'

Playdate: Crushing the Rebel scum in 'Star Wars: Battlefront'

Not too long from now, on a Twitch stream in the very near future, Sean Buckley and myself will be blasting Rebel scum in Star Wars: Battlefront .

. The sci-fi shooter's the topic du jour on the latest edition of Playdate and you can tune in starting at 6 PM ET/ 3 PM Pacific to catch two hours of the hot Empire on Rebel action across Sullust, Hoth, and who even knows where else? And since we streamed the game's betaon PlayStation 4we're giving the full version a go on PC today. As always, you can tune in here on this post, the Engadget Gaminghomepage or Twitch.tv/Joystiqif you'd like to join us in chat -- it's your destiny.

Playdate Crushing Rebel Scum in 'Star Wars: Battlefront'

[We're streaming Star Wars: Battlefront at 720p through OBS so rest assured, destroying the Rebels will look dramatically better on your setup at home.]

Meet the world's first phone with a Snapdragon 820 chipset

Meet the world's first phone with a Snapdragon 820 chipset

It's called Le Max Pro, and it's not French.

Just a few years ago, we might have scoffed at the idea of buying a smartphone from a Chinese OEM. Now, with companies like Huaweiand ZTEshowing us that smartphone pedigree matters less than ambition and execution, things are totally different. That's exactly the opening China's LeTVis trying to capitalize on with its new Le Max Pro. Not only is it the world's first phone to run Qualcomm's Snapdragon 820 chipset, it's also the company's first attempt to break into the absolutely insane US market.

Gallery: Letv Le Max Pro hands-on | 10 Photos

Samsung details the Exynos processors inside the Galaxy S5 and Note 3 Neo

Samsung details the Exynos processors inside the Galaxy S5 and Note 3 Neo

Samsung has been hinting at new Exynos processors for both a Galaxy S5 variant and the Galaxy Note 3 Neo , and today it's detailing the two CPUs in earnest.

the two CPUs in earnest. The GS5's expected chip, the Exynos 5422, is primarily a speed bump of the eight-core Exynos 5 Octa we saw last July; it boosts the clock speeds of the Cortex-A15 and Cortex-A7 cores to 2.1GHz and 1.5GHz respectively. The processor also delivers support for running all eight cores at once, and can handle both 2,560 x 1,600 displays as well as 4K video recording.

The Exynos 5260 (aka Exynos 5 Hexa) destined for the Note 3 Neo isn't quite so glamorous, dropping to two 1.7GHz Cortex-A15 cores and four 1.3GHz Cortex-A7 cores. However, it still has many of the features of its bigger sibling -- it can run all six cores at once and use the same screen resolutions. Not surprisingly, it doesn't have the horsepower to record 4K video. Both of the new Exynos designs are either in production or will be by the end of the first quarter, so you can expect to see them in shipping smartphones relatively soon.

Samsung Exynos 5 Hexa processor

The Ninja Economist takes on your attacks over the (lack of a) gender gap in tech salaries

The Ninja Economist takes on your attacks over the (lack of a) gender gap in tech salaries

I recently wrote an article for Quartz in which I challenged the idea of gender wage discrimination in some fields in the tech industry.

in which I challenged the idea of gender wage discrimination in some fields in the tech industry. A few minutes after the article posted on the website, the World Economic Forum sent the tweet:

There is no #gendergapin tech salaries says @NinjaEconomics http://t.co/KwoGkJf5bi #wef

— World Economic Forum (@wef) March 3, 2014

But, that’s not actually what I was arguing. Headlines and tweets have the problem of fitting a lot of information into a small amount of space, so nuance is often lost. The central thesis of my article was that new research shows no significant difference in earnings one year after graduation between male and female engineers, who have the same credentials and make the same choices regarding their career. How’s that for a more precise headline?

On Twitter, many readers have questioned the data collection and research methodology. Others wondered how accurately I was portraying the issue of the gender gap. The following are the comments that came up most often in tweets, reader annotations and personal emails, and the responses from Claudia Goldin, a professor of Economics at Harvard University and Catherine Hill, director of research at American Association of University Women, who was co-author of the study, and myself:

@RealLisaC @nilofer @NinjaEconomics"confounding factors" quite interesting terminology.. + "sample" is frankly BS… #skeweddata

— Lauren Cooney (@lcooney) March 3, 2014

Since Quartz is a publication for a general audience, it’s possible some terms were misunderstood when not clearly defined. Confounding typically means “confusing” or “surprising,” but in statistics, it also refers to hidden variables that can lead researchers to think a relationship between two variables exist when they don’t. A popular example is, “Ice cream sales increase swimming deaths.” The two things are positively correlated but there is a more likely explanation than their relationship. In this case, the “season” is the confounding variable since summertime influences both ice cream sales and swimming pool deaths.

In AAUW’s study, the sample was restricted to those under 35 years old, who were earning their first bachelor’s degree. If someone is over 35, he or she is more likely to have more work experience, which would lead to higher wages when compared to a recent graduate with little or no work experience. Also, if someone has two bachelor’s degrees, he or she is also likely to earn more money than someone of the same age, but who holds one degree. Therefore, removing these two confounding factors makes it easier to study the effects of gender.

@Spacekatgal @NinjaEconomics @lcooney"hidden variables" are exactly what drive the real wage gap.

— Lisa Caywood (@RealLisaC) March 3, 2014

Most labor economists agree that the majority of the gender wage gap is explained through choices like education, occupation, or hours worked. Goldin, former president of the American Economic Association, is widely considered one of the top scholars in her field and believes that “the gender gap in wages is a summary statistic for gender differences in work.”

“Women without children have earnings almost equal to those of comparable men,” Goldin told me. “As women have increased their productivity-enhancing characteristics and as they ‘look’ more like men, the human capital part of the wage difference has been squeezed out.”

@NinjaEconomicsIt's misleading to look for gender pay gap only in 1st year of work: inequalities emerge over time http://t.co/iL5H33xsRf

— Niamh O Riordan (@niamhmoriordan) March 4, 2014

I don’t make the claim that wages in the first year are representative of lifetime wages. Though Goldin’s research also shows that in some science and technology fields for those under 45, women earn more than men(pdf) when controlled for education and work hours.

It’s true that the gender gap widens as women get older, but more research needs to be done to understand why the pay gap increases more in some occupations than in others. One explanation is the relationship between work hours and earnings, since some mothers reduce the number of hours they work or choose a more flexible schedule—two decisions that affect career path and lifetime earnings.

“The gender gap in pay would be considerably reduced and might even vanish if firms did not have an incentive to disproportionately reward individuals who worked long hours and who worked particular hours,” says Goldin. “Such change has taken off in various sectors, [including] technology.”

@guan @mimsACS 3-year estimate of median earnings for f/t workers: not so much equal pay. cc @NinjaEconomics pic.twitter.com/C9Be098xSQ

— Shane (@shaneferro) March 3, 2014

First, median earnings don’t control for factors such as education or occupation, which are controlled for in the AAUW study. Second, women’s earnings rapidly decline to .70 (over her lifetime) and the study I am referencing looks at graduates one year out of college. Comparing raw earnings versus adjusted earnings isn’t analogous and neither is comparing lifetime earnings and young cohort earnings.

Constructing birth cohorts using data from the US Census and ACS, Goldin observes the following(pdf, table 1b): “Men and women begin their employment with earnings that are fairly similar, both for full-time year-round workers and for all workers with controls for hours and weeks. College graduate men and women working full-time, full-year earn in the 90% range when controlled for hours, weeks and education.”

@ninjaeconomics @halsrethinkI don't think you've found any positive changes. Coming to the opposite conclusion of the study should have…

— Brianna Wu (@Spacekatgal) March 4, 2014

Highlighting pay equality in STEM fields might lead to more young women entering those occupations, a change many people would support. When I asked if Professor Goldin feels there is public perception of wage discrimination, she agreed that “Now, it’s a lot less.” Pay equality may also encourage women to stay in the labor force longer since their participation in the labor market will be stymied if they feel disadvantaged, according to Goldin.

@cmtrapolino @shaneferro @mimsAt first glance study seems suspect. What engineers make $55,142 here? Starting salaries much higher

— Vivek Wadhwa (@wadhwa) March 3, 2014

“Regarding our estimate of earnings for engineering majors one year out of college, it is similar to findings by other scholars[pdf],” said Dr. Hill. “The commenter seems to be misunderstanding the difference between the whole engineering workforce and those working one year after college graduation. Of course, we would expect salaries to rise over time.”

@Spacekatgal @GlennFThe article seems to come to the opposite conclusion from the original researchers. “Tech” not a sector in the study.

— David Starke (@dstarke) March 4, 2014

The authors agree with my concluding statement that the two highest paying jobs, according to their study, are computer science professional and engineer. “We don’t have the breakdown on the relative importance of math, computer science and physical sciences,” Hill said. “In general, computer science and engineering account for the majority of STEM jobs.”

According to a statement from Dice.com, career website that serves information technology and engineering professionals: “With tech workers, the compensation gender gap has disappeared. Average salaries are equal for male and female tech pros, provided we’re comparing equal levels of experience and education and parallel job titles.”

@shaneferro @mimsyou can’t. they think they’re being clever by restricting to recent graduates, but it’s lazy.

— guan (@guan) March 3, 2014

“It is not lazy,” Hill told me, “It’s simply what we can accomplish with the data set we used. Our study is limited to one particular time because we’re trying to get an apples-to-apples comparison. We have a panel of experts that reviews our reports; this information is on our site.”

The gender pay gap is a focal point of AAUW’s research and advocacy work. Taking a closer look at the data, the study finds that women’s choices—college major, occupation, hours at work—do account for part of the pay gap. It’s beneficial to do a study that only captures a portion of a woman’s career because it can help us have a more detailed understanding of the changing factors that affect the gender wage gap. By studying cohorts (age bands), Goldin’s research shows that women and men start their careers very close in earnings, then the gap widens for the first few decades but then narrows as men and women become older.

@mitrakalita @mimsIt was the way new piece was framed and the inaccuracies and questionable data that were at issue. misrepresented study

— Vivek Wadhwa (@wadhwa) March 4, 2014

I asked Hill if my premise and conclusion were supported by their evidence. She replied that my statements were consistent with their findings, that “one year after college, among those students who go on to work full time in the year after graduation, we found no statistical difference in the earnings of men and women who took jobs in engineering and math, computer sciences or physical sciences.”

“We used the Baccalaureate and Beyond data that is a federal survey for which information is available on the NCES website,” said Hill. “For most of our calculations, we used the online tool that is on the website and students (or anyone) can easily reproduce the numbers. For the regression analysis, we used internal data using a consulting firm called MRI. MRI is a well respected firm and a leader in educational analysis. The report was based on an earlier analysis that I did with Judy Dey, an economist who now works for the BLS. It is called Beyond the Pay Gap. We did a similar analysis although it is not identical.”

Some have said my approach is excessively optimistic. In my article, I do state that this study shows there is a gender pay gap by college major, in most occupations, and overall. However, I decided to focus on the positive aspect, that there are some professions with no statistical difference in earnings between men and women in the beginning of their career.

@wadhwa @shaneferroLinkbait headline + questionable data + its conclusions are bad for women. Disappointing, @NinjaEconomics.

— Christina Trapolino (@cmtrapolino) March 3, 2014

My conclusion was this: The tech industry is unique in its history of being “equal pay for equal work”: A longitudinal study of female engineers in the 1980s, by Laurie Morgan at the University of Michigan, showed a wage penalty of “ essentially zero” for younger cohorts. Today, the two highest paying professions with wage equality are in technology (computer scientist and engineer).

I support pay equality as well as a healthy discussion surrounding it. It’s important not to overlook the challenges women have faced in the fight for equal pay while we celebrating the more recent successes.

I asked Goldin if we shouldn’t discuss a narrowing pay gap because it hurts womenby minimizing the issues they face. She replied, “Facts are facts. Truth doesn’t hurt.”

Follow Cynthia on Twitter @Nin jaEconomics. We welcome your comments at ideas@qz.com.

Google Shopping Gets A Mobile Makeover With A Focus On Local Commerce

Google Shopping Gets A Mobile Makeover With A Focus On Local Commerce

As the holiday shopping season starts to get into full swing, Google this morning announced a brand-new design for its Shopping vertical, the Google Shopping search engine.

As the holiday shopping season starts to get into full swing, Google this morning announced a brand-new design for its Shopping vertical, the Google Shopping search engine. This is the largest mobile redesign the service has had to date, and it offers a variety of new elements aimed at helping consumers better discover and locate products they’re interested in, says Google. That also now includes more easily checking the availability of products at nearby stores.

According to Google, the redesign was prompted by the shift the company has been seeing when it comes to shopping-related searches – that is, as of this fall, more shopping-related searches took place on mobile devices instead of desktop computers.

To better address the way consumers today shop – in shorter bursts on their smartphones, instead of longer, Black Friday weekend marathons– Google has updated its Shopping mobile experience to feel more like a mobile application, with features that let you tap and swipe to navigate through its many pages.

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For starters, Google Shopping will now help shoppers narrow down their searches when they enter a broad search term, as 40% of shopping searches today involve. Similar to how Google Images will show you subcategories related to a given search term so you can better find the right photo, Google Shopping will now do something similar by showing consumers the most commonly searched categories related to their search query.

For example, if you type in “droids,” Google Shopping will return options like “Collectibles,” or “Dolls, Playsets, & Toys” as subcategories you can further explore.

android_groupby_1_gif

In addition, when you search for a certain item, like “tricycles for kids,” Google Shopping will now let you filter the list by attributes that people commonly shop for, like features (“folding,” “recumbent”), brand, and price, says Google.

For consumers, the experience is an improved way to narrow down what you’re looking for while searching, but for merchants it means those who click through to their site are more likely to find the item what they wanted at the price they want, having already done their comparison shopping.

android_infinite_1_gif

This comparison shopping is also being enabled by another added feature that lets you browse through your narrowed-down options without having to load new pages in order to see more product information.

Instead, shoppers can tap on a product, browse images, skim reviews, and read the product description without having to visit the retailer’s site. They can then swipe over to see the next product in the list, or delve deeper by reading specs or watching videos all while still using Google Shopping.

When the shopper is ready to buy, they can click through to online stores or find the product locally. The service will also now better highlight which nearby stores have the product in-stock by applying the “available nearby” filter. After doing do, Google Shopping will switch over to a map view that shows all the closest stores that have the product, and their distance to you.

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Google Shopping has been able to point users to local availability in the past through Product Listing Ads on desktop and mobile,and it later integrated this availability feature into Google Now. But now the option to see your local retailers’ inventory is being surfaced upfront, says Google. The change comes at a time when Google has seen shoppers using their smartphones as a guide to local stores, which is why it wanted to capitalize on this behavior – since 2011, mobile searches with the term “near me” have increased 34x, the company notes in a related merchants’ guide.

The new Google Shopping experience is rolling out now on the mobile web.

Rocket Internet’s Africa Internet Group raises $326M from Goldman Sachs and others

Rocket Internet’s Africa Internet Group raises $326M from Goldman Sachs and others

Fresh from pulling in $83 million from European insurance giant AXA last month, Africa Internet Group (AIG) — the Rocket Internet-backed company behind e-commerce site Jumia — has announced that it has raised a much larger €300 million ($326 million) in fresh funding.

That sum includes that previously disclosed chunk of money from AXA — which valued AIG at over $1 billion, by the way, making it Africa’s first tech unicorn — and participation from existing stakeholders MTN, an Africa mobile operator, and Rocket Internet as well as new backer Goldman Sachs. (Rocket Internet watchers will recall Goldman invested in Food Panda last year, and Rocket Internet tends to attract repeat investors once they buy into its philosophy.)

Jumia is one of Rocket Internet’s (many) Amazon-like emerging market e-commerce plays. The company was formed in 2012, and today it covers 11 African countries. Unlike some of Rocket Internet’s vertical plays, Jumia covers fashion, electronics and more. The idea is to put a tent pole down in Africa’s emerging online commerce early on, and then reap the rewards as increased Internet access and growing middle classes increase demand for e-commerce. That’s the same blueprint Rocket Internet companies employ in Latin America, Asia and other places, but Africa is a more extreme testbed.

Screenshot 2016-03-03 17.08.59

AIG runs a number of Rocket Internet-backed services in Africa, including its Uber rival Easy Taxi, Hellofood and travel booking site Jovago, but this new funding has been earmarked for Jumia. AIG was pretty general about how it will deployed stating only that it will “significantly strengthen the balance sheet of AIG enabling the company to leverage the significant growth of Jumia and to capitalize on the significant opportunities in Africa.”

“From the very first investment in Jumia, we have been consistently impressed by both the high-quality management team and growth trajectory. We believe that Jumia is a proven winner and that it will continue to be the leading e-commerce platform in Africa,” Rocket Internet CEO Oliver Samwer said in a canned statement.

Last month we reportedthat Jumia is exploring new financial products, inspired by Asia, to help overcome issues like low credit card penetration and bank usage and enable more consumers and retailers to use its service. You can imagine that the new round will go towards these initiatives and other projects that help increase awareness of Jumia and grow the size of its addressable market.

“Many of the consumers and small businesses we work with do not have access to financing, credit ratings, or other financial services,” AIG CEO Sacha Poignonnec told TechCrunch contributor Jake Bright. “We’ve been looking at some examples in India and Indonesia where consumers can gain access to loans, ratings, and financial services through performance on e-commerce platforms.”

AIG may now be a unicorn, but the company isn’t talking about its profit or loss figures for now. Poignonnec did disclose that the company did €206 million ($224 million) in revenue during the first nine months of last year, a figure that he said represents 265 percent growth on the previous year. But that’s all we have for now. The main focus is certainly on future growth and potential, as is the case with many of Rocket Internet’s green field projects in emerging markets.

“We are impressed by AIG’s pan-African operations and execution capabilities, and believe the combination of strategic partners and management’s demonstrated expertise uniquely position the company’s ecosystem to play a leading role in the development of Africa’s online economy”, Goldman Sachs’ Jules Frebault said in a statement.

How Qualcomm's Snapdragon 820 will improve next year's gadgets

How Qualcomm's Snapdragon 820 will improve next year's gadgets

Qualcomm officially unveiled its latest mobile chip, the Snapdragon 820, at a media event in New York City this morning.

Qualcomm officially unveiled its latest mobile chip, the Snapdragon 820, at a media event in New York City this morning. But, given that the company has been divulging details about the 820 for the past few months, you wouldn't be blamed for thinking that it was announced long ago. We already know that the Snapdragon 820's Adreno 530 GPUis around 40 percent faster than the 810's graphics (making it ideal for VR); it will deliver LTE speeds of up to 600 Mbpsand support 802.11ad WiFi; it's significantly more power-efficient; and it'll use machine learning to fight malwareright on your device. So what's left to announce? Not much, it turns out. But Qualcomm did give us a look at how the 820's new features could be applied to devices in 2016.

Gallery: Qualcomm Snapdragon 820 demos | 10 Photos

Songs We Love: Sufjan Stevens, 'Chicago (Demo)'

Songs We Love: Sufjan Stevens, 'Chicago (Demo)'

More than 10 years on, Asthmatic Kitty Records is releasing Illinois (Special 10th Anniversary Blue Marvel Edition) .

On the fourth of July in 2005, Sufjan Stevensreleased Illinois , a record that made him a household name, at least among a particular set of indie rock fans and music critics.

. The titling is typical of Stevens' coy send-ups of consumer tropes (think: " Christmas Unicorn"), but the benefits, as always, are very serious. Today, he released an early demo of the song "Chicago," which would go on to become a centerpiece of the finished album; it's a rare glimpse of a great song still gestating.

YouTube

The demo of "Chicago" begins with a flourish. Multi-tracked acoustics drive the song, tenser and less ecstatic than the finished version's arcing vibraphones and washing drums. The demo leaves the focus squarely on Stevens' vocal and his lyrics, and the instrumental builds steadily to a triumphant vocal melody that he excised by the time he released his finished version. The string section, which gives the finished song its holy sound, is the most notable instrumental absence on the demo.

"Chicago" happens to be one of a set of totemic songs from the early 2000s that each build on a similar, mythic chord progression. Like Coldplay's "Clocks" (note the similarity here) and Wilco's "I Am Trying To Break Your Heart," "Chicago" taps into a sense of wonder and quest. All three ride their chord progression from start to finish with little variation. But let this demo be a reminder of what Stevens can do that almost no one else can: hold the world at arm's length, the better to fall in love with it again.

Cybersecurity is a mess, but Obama can learn a few things from Estonia – and Eugene Kaspersky

Cybersecurity is a mess, but Obama can learn a few things from Estonia – and Eugene Kaspersky

While the spate of recent cyber attacks against Finland , Germany , Ukraine , and U.S. Central Command has governments worrying about how to combat cyberwarfare, Singapore just took a rare radical step towards doing so.

has governments worrying about how to combat cyberwarfare, Singapore just took a rare radical step towards doing so. On Tuesday, Prime Minister Lee Hsien Loong’s office announced the creation of the Cyber Security Agency of Singapore, which “will provide dedicated and centralised oversight of national cyber security functions.” Given the sinister ways in which cyber threats are evolving, the move is a necessary step for a wired, wealthy nation that has long been the target of cyber crime.

Cyber attacks cost an estimated $400 billion in damages per year, but that number may soon soar thanks to what Estonian President Toomas Hendrik Ilves called “the “little green men-ization of cyberspace,” at Davos last weekend, referring to the “little green men” who started showing up around Crimea in unmarked uniforms before Russia formally annexed the peninsula. “It’s not just criminals, it’s not just states, it’s also in between–the unique public/private partnership form that we see where states will pay criminal groups,” buying information about critical vulnerabilities, Ilves said. In the cyber marketplace, where loopholes called “zero-day vulnerabilities” are traded, organized crime, terrorist networks, and state actors are converging, making it increasingly difficult to tell the difference between them. And with the number of politically-motivated cyber attacks on the rise (2013 saw a 91% increase in target attacks) these new channels between states and criminal networks are a crucial aspect of cyber infrastructure.

Eugene Kaspersky, w ho runs the Kaspersky Lab security group, cautioned that cybercrime has evolved to rival the sophistication of states. “A few years ago, there was criminal malware, and state-sponsored malware. and the difference [was] like a car and a space shuttle. Now, many criminals, unfortunately, the evolution in cybercrime is such that they are very professional.” Jean-Paul Laborde, executive director of the UN Counter-Terrorism Executive Directorate, warned of “more and more connections between organized crime and terrorist organizations.”

It’s unclear what these new cyber connections mean, or how they will shape the market for zero-day vulnerabilities: “It used to be that If I’m a gangster and I want to get access to my competitor’s computer, I go and I get the zero day and I look into that computer,” Andres Kutt, and advisor to Estonia’s Information System Authority, told me. “Now, governments are starting to participate in what used to be a black or grey market for vulnerabilities, botnets and such…that changes the game by pushing more money to the ecosystems and tilting the delicate market balances.”

At Davos, participants diplomatically shied away from naming exactly which countries are increasing their cooperation with organized cybercrime, but their identities are no secret. Uko Valtenberg, chief of the Estonian Defense Force’s cyber range, told me that “Russians are using the criminal element for their politically motivated attacks as well. It’s difficult to determine the military guys from the cyber criminal guys–you could say that they’re the same in Russia, more or less.”

Russia has been accused of sponsoring the hacker group CyberBerkut, which recently took responsibility for the attacks against official German websites. It’s also the more than likely origin of a debilitating cyberattack that took down Estonian banking, government, and media infrastructure in 2007–the first time a country witnessed its critical infrastructure crumble at the hands of hackers. Similar tactics were later used in Georgia and Ukraine in the lead-up to Russian military aggression, and a similar attack against critical infrastructure could easily happen elsewhere–in the US, for instance, where existing vulnerabilities to electricity, water, and gas networks were recently exposed .

“No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families, especially our kids,” President Obama said in his State of the Union address. “We are making sure our government integrates intelligence to combat cyber threats, just as we have done to combat terrorism. And tonight, I urge this Congress to finally pass the legislation we need to better meet the evolving threat of cyber-attacks, combat identity theft, and protect our children’s information. If we don’t act, we’ll leave our nation and our economy vulnerable.”

Among the many cybersecurity reforms that Obama has introduced are measures that would require the private sector to share information about cyber threats with the government, to crack down on the sale of botnets, and to prosecute insiders who exceed authorized access to online networks. But some of those reforms might actually make it more difficult for “good” hackers to do their jobs: “This is good in intent, but will negatively affect positive cyber security outcomes by limiting the tool set that the good guys can use to detect and respond to attacks from bad guys as ‘wire or electronic communication intercepting devices’ are standard tools that are used in all global 500 organizations today,” J.J. Thompson, CEO of Rook Security, told Information Week .

As this new spate of reforms demonstrate, governments are still struggling to come up with effective ways to respond to threats posed by cyber attacks and cyber espionage. They would be well advised to look toward Estonia for advice on how to do so. After the 2007 attack, the Baltic nation overhauled its approach to cyber defense, introducing a systematic chain-of-command that ensures a swift reaction to a future attack. In 2009, it passed an Emergency Act which mandates that all vital services must retain the majority of their capacity in the event that they are disconnected from the Internet.

“ Systems need to be built in a way that is difficult to attack. You need to have a holistic view of cybersecurity. It is not enough to have a cybersecurity initiative somewhere off in the Department of Homeland Security,” says Kutt. “We try to promote the concept that cybersecurity is not a technical matter. It never is…It’s a business issue. If your systems are vulnerable to attack, that is a cyber security incident in terms of national security, then they’re probably vulnerable to commercial cyberattacks, and if they’re vulnerable to commercial cyberattacks, they might be more vulnerable to information security risks coming from inside the organization.” So w hile nations like Denmark and Australia are scrambling to develop offensive cyber capabilities, the centralizing reforms in Singapore and Estonia may actually be a simpler, more effective way of combatting cyber threats.

Estonia is also home to the NATO Cooperative Cyber Defence Centre of Excellence, housed in the renovated barracks of the Russian imperial army. There, Estonian Colonel Artur Suzik leads a team of researchers in identifying and laying the legal framework for the next generation of cyber threats, and determining what offensive responses would be proportional to incidents like the Sony hack. “Cyber is interconnected by nature, and the cyber environment has no regard for national borders. No one can defend their own network within their network or national borders and consider it safe. It means that cyber defense, especially if we consider it in the context of national security and defense and the provision of vital services, is an inherently cooperative effort,” Suzik said . “Before 2007, there weren’t a lot of national cyber security strategies developed. What we see right now, is that there’s this second wave of this development of national strategies.”

But judging from the sentiment of cybersecurity discussions in Davos, the sort of international cooperation necessary to fight increasingly intertwined criminal, terrorist, and state cyber networks is a long ways away. “Let me tell you how international cooperation really works,” Kaspersky told his Davos audience. “I have an email to my lab from the cyberpolice from country A. ‘Hey, Eugene, do you have a contact for Country B?’ I say, ‘Hey guys, you are both countries from the west, why don’t you call each other?’ ‘Hey, Eugene, it’s too bureauratic’…this is how it really works.”

You can follow Linda on Twitter at @lindakinstler. We welcome your comments at ideas@qz.com.

Square Prices Its IPO At $9

Square Prices Its IPO At $9

Square today priced its initial public offering at $9, giving the company a valuation of $2.9 billion.

Square’s somewhat conservative pricing earlier this monthjust got a lot more conservative.

Square today priced its initial public offering at $9, giving the company a valuation of $2.9 billion. The last time the company raised money, it was valued at $6 billion, and earlier this month gave a range of $11 to $13per share, valuing the company at $4.19 billion.

Square will go public tomorrow. Needless to say, this is a dramatic southbound turn for the company. A little more than a year ago, Square raised $150 million at a $6 billion valuation. Investors have cleaved that value by more than half ahead of the company’s initial public offering, likely due to the overall weakness of the company’s financials.

Square, which started off as a simple card reader that plugged into a speaker adaptor, spent years trying to differentiate itself as a hip consumer brand as much as it was a point of sales and payments service for small- to medium-sized businesses. But the company has had to fend off growing threats from other point of sales services, and its consumer-facing businesses have generally flopped.

And, of course, there was its disastrous deal with Starbucks, which hindered the company’s performance. As just one example, the Starbucks deal cost Square $118.5 million in the nine months ended September 2015, while only bringing in $95.2 million in transaction revenue.

In its last filing with the SEClate October, Square showed widening losses and slowing revenue growth. The company reported a net loss of about $54 million, with Starbucks transaction costs hitting about $41 million in the third quarter. It said it had net revenue of $332 million in the third quarter, while in the same quarter last year, the company had net revenue of $227 million and a net loss of $37.7 million. The filing also noted that Vinod Khosla stepped down from the board.

Square, to be sure, needed to raise money — among other things that’s what necessitates an IPO. The company has shown net losses for eight consecutive quarters. It’s still facing the nagging results of its deal with Starbucks, which has hurt the company’s performance. In the past quarter, Starbucks transaction costs hit the company for about $41 million,

“I think they still have a lot to prove. I do think they have a challenge ahead of them,” Shopkeep CEO Norm Merritt said. “They really don’t have a proven profit model yet. They have some pretty dramatic open questions about their business. Their margins are a lot lower than you would expect.”

Related Articles Square Plays Safe On Initial IPO Price To Entice Investors Vinod Khosla Steps Off Square's Board In Advance Of Its IPO Updated Square Financials Show Q3 Revenue Of $332.2M, $53.9M In Losses Jack Dorsey Gives One-Third Of His Twitter Stock Back To Employees

The updated filing comes just a few weeks after the company last reported its earnings details, but it’s nonetheless significant. It’s a signal that Square will face a challenge when it finally goes public.

Square’s pricing — below its previous valuation — is one of many instances of valuations being written down among late-stage startups. Fidelity also recently wrote down the value of its Snapchatinvestment, while BlackRock wrote down the value of its Dropbox investment.

Updated to correct company valuation.

New Music From Tom Waits & Keith Richards, Ra Ra Riot, Villagers, More

New Music From Tom Waits & Keith Richards, Ra Ra Riot, Villagers, More

Clockwise from upper left: Lisa Germano, Ra Ra Riot, Tom Waits, Keith Richards, Blaudzun.

Clockwise from upper left: Lisa Germano, Ra Ra Riot, Tom Waits, Keith Richards, Blaudzun.

Courtesy of the artists hide caption

toggle caption Courtesy of the artists

On this edition of All Songs Considered we've got a bunch of new-year premieres for you, including a special collaboration between Tom Waitsand Keith Richards. The two veteran musicians recorded a song together for a new compilation album called Son Of Rogue's Gallery , and we guarantee it's not at all what you'd expect. Do the word's "sea chantey" mean anything to you?

Also on the program: A curious and captivating new song from Ra Ra Riot; the ghostly and gorgeous voice of Lisa Germano; a stunning sophomore release from the Irish band Villagers; the trippy Canadian rock group Elephant Stone; Dutch pop singer-songwriter Blaudzun; the infectious, '60s-inspired psych-pop duo Foxygen and the electronic dance band STRFKR returns with a moodier new record called Miracle Mile .

A Few Thoughts On Tech Stocks

A Few Thoughts On Tech Stocks

Shares in technology companies have recently come under intense pressure, similar to other equities, markets, commodities and more.

Shares in technology companies have recently come under intense pressure, similar to other equities, markets, commodities and more. How far tech shops have declined, however, is worth digging into. After all, if the value of public tech companies has declined sharply, it could impact the value of private startups like Uber or Dropbox.

I picked a few dozen public tech companies that you’ve heard of and placed them into three groups: Recent IPOs, Adolescents, and Where Your Parents Worked. Each category is sorted by percent decline in share value for a company, compared to its 52-week high.

All data is via Google Finance, and WolframAlpha was kind enough to divide for us all. Here’s the raw list:

Recent IPOs

Percent decline from 52-week high at end of regular trading:

New Relic: 15.74 percent Arista Networks: Shopify: 36.08 percent Alibaba: 42.88 percent Box: 45.57 percent GoPro: 52.24 percent Hubspot: 53.17 percent Etsy: 63.99 percent Castlight Health: 65.17 percent MobileIron: 70.06 percent

Adolescents

Percent decline from 52-week high at end of regular trading:

Netflix: 21.48 percent LinkedIn: 38.47 percent Pandora: 40.1 percent Groupon: 52.43 percent Twitter: 56.28 percent Yelp: 73.84 percent

Where Your Parents Worked

Percent decline from 52-week high at end of regular trading:

Google: 14.23 percent Microsoft: 19.12 percent Amazon: 19.67 percent Apple: 22.89 percent IBM: 27.66 percent Yahoo: 39.68 percent

What It Means

Before we get too deep, keep in mind that companies nearly always trade at a discount to their 52-week highs. That’s simply because, unless the firm in question just set a new high, it’s below its prior local maximum. That’s tautological, but useful.

Share performance of recent IPOs from their highs has been nasty. That doesn’t mean that the IPO market is borked (Hubspot, for example, is down sharply from its 52-week high, but is still up from its IPO price), but it does underscore that investor sentiment concerning these younger firms has slipped. That means that the animal spirits involved with bolstering the value of recent IPOs is likely at a bit of a low point. That could lead to delays in new offerings, for example. Among the adolescents, the scale of declines from the cadre’s 52-week highs surprised me. I knew that Twitter and Yelp and Groupon were having a rough go of it, but I didn’t expect the delta to be as large as it was. That could imply souring investor attitudes to tech companies a bit further on in age, and time they’ve been public. (Presumably, investors are discounting future earnings and growth, implying that these firms will not meet prior expectations.) Potentially lower sentiment from investors about the adolescents could handicap coming gains in value among the recent IPOs, as the class of company that is next in line for them isn’t performing very well. Holy shit, Yelp. The biggest companies on our list performed best, which makes sense, as they have the most cash, stable earnings and the like. But even our whales have some drop to them. Instead of saying here that the declines insinuate a fall in optimism with investors, larger tech firms are falling more in line with the market, making their declines less interesting for us here.

However, things don’t look great. Let’s see what China does in a few hours.

Deep Thoughts With Tom Waits

Deep Thoughts With Tom Waits

YouTube
There is an elaborate system of punishment and reward governing the courageous moles tunneling beneath Stonehenge.

There is an elaborate system of punishment and reward governing the courageous moles tunneling beneath Stonehenge. Or so said Tom Waits in a 1988 interview with journalist Chris Roberts from Rock's Backpages.

The interview, conducted in a London studio shortly after the release of Waits' concert film Big Time , was recently unearthed and expertly animated by Patrick Smith for PBS' Blank on Blankseries, which gives lost interviews from famous faces the cartoon treatment.

In addition to the specifics of mole bureaucracy, Waits delves into the finer points of laughing at funeral, how to dress for a career in show business and what it means to be "big time":

I don't know what the big time is, really, except that it's probably some terrible place that you can't get out of. Or that you fall from and break all your bones. Or try to go further and burn up.

If you're going to take advice from just one curmudgeonly, animated, outlandish, gravely voice from the past, it should be 1988 Tom Waits.

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