Contrary Research Rundown #29
The satellite renaissance, and new memos on Magic Eden, Databricks and more
Research Rundown
Satellites have become essential tools for understanding the world. They provide data on agriculture harvest, the earth’s surface, weather, greenhouse gas, mineral extraction, economic activity, and more. Until the last decade, building and launching a satellite was something only a nation or a massive corporation could do. Today, we are going through an economic, cultural, political, and financial transition where small companies and entrepreneurs can launch satellites and rockets into space. As the number of satellites and space-related companies grows in the coming years, how we connect to the internet, use our mobile phones, and think about the industrial, commercial, and military possibilities in space will transform. Anna Sofia’s recent essay on the Contrary blog offers a glimpse of what life might be like amid this satellite renaissance and what still lies on the horizon of the space frontier.
Spaceflight is often characterized by the launch market. These companies aim to get mass into space quickly, reliably, and cheaply. SpaceX is a prime example; a commercial launch market has formed with them. Space transportation is costly and has limited profitable applications for now. Satellite operators, however, are utilizing the electromagnetic spectrum to collect and send data, making satellites the most mature segment of the space economy. Data services form a significant part of satellite usage, making them a cost-effective alternative to terrestrial infrastructure projects like building fiber optic cables or towers in sparsely populated areas. Infrastructure companies in space and on the ground are necessary to use satellites efficiently. Remote sensing companies can collect data from the electromagnetic spectrum, providing a bird’s eye view of the world with both military and commercial value.
Manufacturing rockets and satellites requires precise engineering and advanced factories on Earth. With the growth of the space economy, suppliers have sprung up to supply parts, modules, and components, making spacecraft and advanced propulsion systems a significant business. Internal tools at SpaceX have spawned several space software companies offering launch project management, satellite fleet operations, and other services. Check out our memo on SpaceX.
After decades of disappointment, we’re dreaming about space once again. A more robust presence in space will have widespread implications, from the emergence of new industries like manufacturing in microgravity to the destruction of old terrestrial ones, like cable monopolies. The further we go, the more problems we’ll need to contend with, from clearing up space debris to figuring out how to service existing spacecraft better. With technology, however, problems often become the source of opportunity. From where we stand today, space is teeming with opportunity.
Snorkel AI is the data platform for enterprise AI, enabling customers to build and iterate from unlabeled data sets to machine learning models deployed in production. To learn more, read our full memo here.
Workstream is a mobile-first hiring and onboarding platform that automates slow hiring processes and helps businesses with large deskless workforces fill open positions quickly. To learn more, read our full memo here.
Locus Robotics is a flexible robotic automation company that provides autonomous mobile robots that work with warehouse associates by assisting in locating, identifying, and picking items. To learn more, read our full memo here.
Databricks help organizations prepare data for analytics and adopt machine learning. It was founded by the original creators of popular open-source projects like Apache Spark. To learn more, read our full memo here.
Magic Eden is an marketplace initially focused on the Solana blockchain NFTs and aims to address the challenges in the NFTs space by leveraging the Solana's high throughput and low-cost transactions. To learn more, read our full memo here.
A profile of Tim Cook on running Apple, succeeding Steve Jobs, being an outsider, creativity, avoiding smartphone addiction, rivals, and more.
US-based Acorns has acquired London-based GoHenry, which focuses on managing money for 6-18 year-olds.
Mercury partnered with Stripe Atlas to make it faster to set up a company.
NYT story on Runway and other startups enabling video generation using AI.
Techcrunch dispatch from AI-focused Cerebral Valley conference in SF.
Instacart hikes its internal valuation by 18%. Check out our memo on Instacart.
After acquiring Yik Yak, Sidechat revamps the anonymous social app to match its campus chat app.
Meta CTO Andrew Bosworth said the company plans to commercialize its generative AI in 2023.
Substack unveiled Notes, letting users share posts, quotes, images, links, and more, shown in a short form feed. Check out our memo on Substack.
Amazon’s AWS has created a 10-week program for generative AI startups around the globe.
An overview of the main findings of Stanford’s 2023 AI Index report.
Carta published a report on the state of private market financings in Q1 2023. Check out our memo on Carta.
Stripe processed $817B in transactions in 2022, up 26% YoY, vs. 60% growth from 2020 to 2021. Check out our deep dive on Stripe.
Spotify shuts down its Clubhouse-style audio app Spotify Live, previously called Locker Room, acquired as part of its Betty Labs acquisition in 2021.
Australia banned Tiktok from government-issued devices, joining the US, the UK, the Netherlands, Canada, and France.
Y Combinator’s winter 2023 batch has 282 startups — and 86% of the founders lived in SF for the duration of the batch.