Mickey Malka

The Brex Acquisition: A Multiples Game Capital One just shook the fintech world by snagging Brex for $5.15 billion. Critics are vocal, but let's look at the math. This exit represents a 7x ARR multiple. While some argue a longer wait would have fetched a higher premium, late-stage investors secured their returns. Mickey Malka at Ribbit Capital and the Y Combinator crew are walking away with significant wins. This isn't just a sale; it's a strategic consolidation of modern corporate spend into a traditional banking powerhouse. The TikTok Resolution: Ownership vs. Control The TikTok saga finally hit its conclusion. US investors now hold 80% equity, but don't let the cap table fool you. ByteDance keeps the keys to the kingdom: the algorithm. Since the US market represents only 8% of the parent company's total business, the enterprise value of the Chinese giant remains largely untouched. It’s a masterclass in retaining technical leverage while satisfying geopolitical pressure. The Andreessen Dominance Andreessen Horowitz is playing a different game. By investing $8 billion in 2025, they shattered their previous records. Their grip on the AI sector is staggering; two-thirds of private AI revenue now flows through their portfolio, including giants like OpenAI and Databricks. For emerging VCs, the challenge is clear: how do you find alpha when a single firm has institutionalized the entire AI revenue stream? AI's Margin Crisis and the IPO Window Anthropic is generating $8 million in revenue per employee, a level of efficiency that should be celebrated. However, their inference costs just spiked 23% over projections. If costs don't bend down as scale increases, the high-margin dream of software starts to look more like a capital-intensive utility. Meanwhile, EquipmentShare proved that profitability is the ultimate ticket to a successful IPO, popping 33% at its debut. If profitable firms can scale while Wealthfront struggles, the market is sending a clear message: the era of growth at any cost is officially dead.