Scaramucci Says He's 'Bullish' on Economic Recovery at Daylong 'Quarantine Conference'

Scaramucci Says He's 'Bullish' on Economic Recovery at Daylong 'Quarantine Conference'

The novel coronavirus has rattled businesses and closed conferences globally, from Austin's much-anticipated SXSW event to the recently rescheduled Milken Institute Global Conference. All this at a time when businesses leaders are disoriented and looking for guidance on how to navigate the crisis.

In order to fill that void, L.A. marketing agency Hawke Media gathered together a motley assortment of speakers Tuesday for a self-described "no-contact networking and idea exchange." We listened into the discussions:


Which businesses are benefiting from the coronavirus?

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Scott Taylor asked panelists on Hawke Media's Future of Marketing panel which industries are benefiting from the coronavirus, based on the data that they are seeing from inside their companies. Here's what they had to say.

Ashley Crowder, head of VNTANA, which provides software for creating 3D products, pointed to augmented reality, virtual reality, and digital content. "I met people in a virtual bar last week," she said. "It was very fun."

Jonathan Smalley, Chief Executive of Yagaura, an e-commerce data management firm, noted that he's seen sales numbers climb among verticals as disparate as bread-making, CBD and hemp, and home goods.

John Bree, of Supply Wisdom, touted his own firm's specialty, risk intelligence. "The whole world of crisis management is going to change," he observed. Bree also predicted that lawyers and doctors will do well as the coronavirus chaos levels off. "There'll be a lot more babies and a lot of divorces."

How is social distancing changing the ways we engage with music?

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At the start of this year, the live music industry was poised for success. Projections envisioned a 4% year-on-year incremental growth of $37 billion. Then the coronavirus spread from Asia to Europe and finally to America. By the end of March, explained music marketing expert Joe Belliotti, the industry was kaput.

To fill the gap, fans have gone online. Views on TikTok and YouTube have skyrocketed. And live streaming of music has exploded. Although some in the live events business have been clobbered, new opportunities have emerged that leverage the authenticity, excitement and social nature of live-streamed music. Innovative partnerships have sprung up, like that between BandsInTown and Twitch; a proliferation of fundraising events have bloomed; and brands have increasingly recognized the importance of bringing comfort to their audiences and not just enabling transactions.

Such brands, Belliotti suggested, have three clear opportunities in this new era. They can leverage new experiences: a furniture company could, for instance, partner with a musician streaming from her bedroom; or a travel company could sponsor concerts from artists collaborating from across the world. Brands can also cross-market, by reimagining how music is released and promoted: think virtual album release parties, or peeling back the curtain on the recording process. And brands can enhance the everyday moments -- waking up, getting coffee, taking an afternoon break -- that have taken on a new meaning in the time of coronavirus; afternoon dance party, anyone?

Scaramucci says he's 'wildly bullish' about economy

Courtesy Wikimedia.org

Echoing the optimism of his former boss about the future of the economy, former White House communications director Anthony Scaramucci said the U.S. economy will recover much fast than most people expect from the coronavirus pandemic.

"I'm wildly bullish," he said Tuesday. "All the gloom and doom that is out there I'm not a buyer of."

Scaramucci said that unlike the financial crisis, there is no underlying problem with the economy, which remains strong. And he says the overwhelming amount of government stimulus, which he pegs at $10.4 trillion, will more than make up for the financial hit of the virus, which he says is in the neighborhood of $3.7 trillion. He expects the government to launch an additional stimulus program aimed at "Main Street" that would be targeted at lower and middle income Americans.

"It will lower people's anxiety," he said.

Scaramucci, who is founder of the investment firm Skybridge, joined the webinar from his study and his kids could be heard playing in the other room. Scaramucci said he has been in quarantine for 25 days.

Using visualization and other techniques to cope with COVID-19's psychological toll

As we're cut off from family and friends, watching staggering layoffs unfold, considering an uncertain future and constantly hearing the pandemic's death toll, everyone is confronting new realities that are challenging us all. But founders and others in high-performing jobs can look for some coping mechanism to help them thrive in this new world said entrepreneur and former Navy Seal trainer Brandon Webb.

One of the most important is goal-setting and visualization. Those tools can help individuals reframe their situation and help them achieve higher levels of performance. Another key tool is remaking your self image.

"If you think of yourself a certain way, or you have self-doubt, you have to identify that. It's okay. It exists in everybody. And then you have to fix it," he said. Part of that is through changing how you talk about and think about yourself.

Webb, the founder of Crateclub.com said he also doesn't tolerate negativity in the office and suggests others avoid airing co-workers faults openly.

Todd Herman, author of "The Alter Ego Effect" has another strategy. The business coach suggested individuals facing new and difficult tasks look to take on the characteristics of other people they admire as a way to escape the mire of emotion that may overwhelm them. He points to Dr. Martin Luther King Jr., an intellectual giant who would use non-prescription glasses to write his empowering speeches.

This approach, he said, helps individuals unshackle themselves when they are having an emotional response that can lead to poor decision-making. "Most people don't think about creating a panel or trusted friend within the six inches of our own ears to help us navigate questions, to us think about something in a different way."

Hawke Media Ventures is an investor in dot.LA. You can see our other investors on our "About" page.

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The Good, the Bad and the Ugly from LA’s EV Scene

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

The Good, the Bad and the Ugly from LA’s EV Scene

I’ve been on vacation this past week, so of course there’s been a ton of news in the Southern California EV world that I missed. I’m not even supposed to be back online until Tuesday, when I’ll be covering SXSW in Austin, Texas. But so great was the deluge of news that I’ve holed up in a Starbucks off of I-70 to whip up this little recap for you. Here we go.

Rivian

I covered Rivian’s Q4 earnings in last week’s newsletter. The results weren’t particularly pretty, with the company suggesting production guidance of just 50,000 units for 2023, which was below what many analysts had forecasted. But then, on Friday, Rivian employees told Bloomberg, that internally the company was saying it might be able to hit 62,000 units in the fiscal year. Shortly after that, however, Rivian announced that 50,000 vehicles was still the official target and that the larger figure had been taken out of context by employees. The company’s share price has fallen 24% since the earnings call.

But wait there’s more: Rivian had previously announced that it intended to lay off 6% of its workforce, and last week we got some more details about where those cuts will come from. The Palo Alto office is slated to lose 240 workers, and 204 look like they’ll be cut from the Irvine HQ, according to reporting from Carscoops.

But wait there’s even more: Rivian also announced today that it would recall 13,000 of its vehicles for issues related to an issue with the seatbelt that could prevent the passenger airbag from functioning as intended. This won’t be Rivian’s first recall, and it surely won’t be its last. Recalls are common and necessary in the automotive industry, but the news comes at an inopportune time for the EV maker.

Lastly, Rivian announced yesterday that it intends to raise $1.3 billion in cash to help it through the coming scale up phase. As I pointed out in the Q4 earnings article, the company’s current cash burn rate looked a bit too aggressive to bring Rivian into 2026, when the R2 platform is expected to launch and provide a pathway to profitability for the EV hopeful. An additional $1.3 billion helps to narrow that gap.

Vinfast

Some good news from Vinfast, actually. The company has delivered its first cars to US customers. Since its 999 SUVs arrived in the United States back in mid December 2022, the delivery process has been delayed by software issues with the vehicles. Last week, however, Vinfast announced that it had delivered 45 VF8s to customers. When the rest of the shipment will be ready for delivery is still unknown, but hey, it’s something. The news comes just a week after Vinfast cut its advertised lease price for the vehicle by a whopping 50%, which if you’ve been following dot.la’s coverage, brings its price much more in line with its value compared to competitors. Whether it’s enough to sway US consumers to take a risk on a new technology produced by a mostly unknown foreign brand, remains to be seen.

Mullen

On March 1st, Mullen’s top financier, Terren Peizer, was charged with insider trading by the Securities and Exchange Commission. Peizer and Mullen have a long history and Peizer has served as CEO of both Ontrak and Acuitas Holding Group. Back in April 2022, Hindenburg Research highlighted Peizer’s large stake in Mullen (29%), and his numerous ties to finance guys who’d found themselves in prison for various sorts of fraud. Now it seems the SEC is taking a look into Peizer himself. According to reporting by InvestorPlace, the agency has charged Peizer with selling $20 million in Ontrak stock while in possession of “material, nonpublic information (MNPI) concerning the company’s largest customer.” Whoops.

Meanwhile, Mullen announced today that it would showcase two new electric delivery vehicles at the NTEA Work Truck Show that’s ongoing this week. The press release contains images of the same class 1 cargo van that Mullen acquired when it purchased Electric Last Mile Solutions last fall, as well as a Class 3 low-cab forward delivery truck. How or where Mullen plans to make these vehicles at scale, remains unknown. But CEO David Michery said that both vehicles are coming to market later this year. Mullen would likely need to raise huge amounts of capital to bring manufacturing capacity online to deliver any meaningful volume of product, but the company does have multiple factory assets.

Toba Capital’s Patrick Mathieson on the Firm’s ‘Two Bites of the Apple’ Strategy

Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
Toba Capital’s Patrick Mathieson on the Firm’s ‘Two Bites of the Apple’ Strategy
Patrick Mathieson

On this episode of the LA Venture podcast, Toba Capital Partner Patrick Mathieson discusses his thoughts on investing in SMB platforms, gross revenue retention, and other things he looks for when investing.


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