Category: Entrepreneurship

“It’s Taken Me 27 Years to Become an Overnight Sensation”

(p. B1) The flashiest trend in finance traces back three decades to a pair of old law-school buddies. Now, they are finally cashing in.

Investment banker David Nussbaum and lawyer David Miller —known to each other as “Nuss” and “Miller”—invented the special-purpose acquisition company in 1993 to give private firms another way to access everyday investors.

. . .

“It’s taken me 27 years to become an overnight sensation,” said Mr. Nussbaum, a 66-year-old from Roslyn, N.Y., on Long Island, who co-founded the SPAC-focused investment bank EarlyBirdCapital Inc.

. . .

(p. B5) Many on Wall Street were suspicious of SPACs because their predecessors were called “blind pools” and tied to penny-stock fraud in the 1980s.

. . .

In the early 1990s, the Davids spent over a year working with regulators to install protections for investors and other changes to prevent fraud before completing the first blank-check firm. Among them were the right for a SPAC’s investors to get their money back before a merger with a private company goes through. They also beefed up disclosure requirements ahead of such deals. Those features are now touted by blank-check company bulls.

Still, SPACs struggled to compete with traditional initial public offerings and other methods for raising money until splashy names like sports-betting firm DraftKings Inc. started using them to go public in recent years and more startups began using them to make projections to investors—something that isn’t allowed in a traditional IPO.

“It’s become bigger than anyone expected,” said Mr. Miller, a 66-year-old from Queens, N.Y., who is managing partner at law firm Graubard Miller . . .

. . .

“I am really happy for them,” said Arthur Spector, a venture capitalist who ran the first SPAC Messrs. Nussbaum and Miller worked on in 1993. “They put in a huge amount of work and from some people took a lot of grief.”

. . .

Both men said they now plan to work until it is no longer fun.

For the full story, see:

Amrith Ramkumar. “Pioneers of SPACs Reap The Rewards.” The Wall Street Journal (Wednesday, March 10, 2021): B1 & B5.

(Note: ellipses added.)

(Note: the online version of the story was updated March 9, 2021, and has the title “SPAC Pioneers Reap the Rewards After Waiting Nearly 30 Years.”)

Freireich on Chemo-Cocktail Cure for Childhood Leukemia: “I Thought About It and I Knew It Would Work”

(p. A20) Dr. Emil Freireich, a renowned cancer doctor and relentless researcher who helped devise treatments for childhood leukemia that transformed the lives of patients thought to have little hope of survival, died on Feb. 1 [2021] at the University of Texas MD Anderson Cancer Center in Houston, where he had worked since 1965.

. . .

When Dr. Freireich (pronounced FRY-rike) started work at the N.C.I., in Bethesda, Md., in 1955, acute childhood leukemia was considered a death sentence. Entering the ward where the children were being treated, he recalled their hemorrhaging because their blood had virtually no platelets, the disc-shaped cells that clot blood.

. . .

Dr. Freireich, a hematologist and oncologist, tested his hypothesis that the lack of platelets was causing the hemorrhaging by mixing some of his own blood with some of the children’s.

“Would it behave normally?” he said in interview for an N.C.I. oral history project in 1997. “Sure enough, it did.”

Further testing, done to persuade his skeptics at the cancer institute, proved him right.

. . .

. . . Dr. Freireich’s most important and most enduring achievement was in using a combination of drugs to send leukemia into remission. He explored options in chemotherapy with several N.C.I. colleagues, including Dr. Emil Frei III, who was known as Tom.

They made an aggressive assault on childhood leukemia by devising a cocktail of four drugs that would be administered simultaneously — a technique similar to the three-drug regimen used to treat tuberculosis — so that each one would attack a different aspect of the physiology of the cancer cells.

“It was crazy,” Dr. Freireich told Mr. Gladwell. “But smart and correct. I thought about it and I knew it would work. It was like the platelets. It had to work!”

But not without peril and concern. Some of the children nearly died from the drugs. Critics called Dr. Freireich inhumane for experimenting with his young patients.

“Instead, 90 percent went into remission immediately,” he told USA Today in 2015. “It was magical.” But temporary. One round of the cocktail was not enough to eliminate all the cancer, so Dr. Freireich and his team treated them with the drugs monthly for more than a year.

. . .

Dr. Freireich compared his early fight to cure childhood leukemia to being in a battle in which he and the N.C.I. team had an alliance that was “forged under fire.”

To cure cancer, he added: “Motivate people and give them the opportunity. People are innately motivated. Nobody likes to be lazy and do nothing. Everybody wants to be significant.”

For the full obituary, see:

Richard Sandomir. “Emil Freireich, 93, Pioneering Researcher and Cancer Doctor, Is Dead.” The New York Times (Saturday, February 13, 2021): A20.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary was updated Feb. 8, 2021, and has the title “Emil Freireich, Groundbreaking Cancer Researcher, Dies at 93.”)

Malcolm Gladwell devoted a chapter to Freireich in Gladwell’s book:

Gladwell, Malcolm. David and Goliath: Underdogs, Misfits, and the Art of Battling Giants. New York, NY: Little, Brown and Company, 2013.

Video of Diamond Q&A on Innovation Unbound Posted to YouTube

On 3/17/21 Derek Yonai posted my 3/16/21 live Q&A session related to my “Innovation Unbound” lecture that was recorded on 3/1/21 and posted on 3/9/21. Some of my lecture and some of my answers in the Q&A, were related to my book:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Cancelled Slate Podcaster “Heartsick” That Ideas Cannot Be Debated and Words Cannot Be Spoken

(p. B5) The online publication Slate has suspended a well-known podcast host after he debated with colleagues over whether people who are not Black should be able to quote a racial slur in some contexts.

. . .

Mr. Pesca explored the argument over the use of the slur in a 2019 podcast about a Black security guard who was fired for using it. In one recording of the episode, Mr. Pesca said, he used the term while quoting the man, but asked his producer to make a version without the term. After consultation with his producers and his supervisor, who objected to his quotation of the slur, they decided to go with the version without it, he said.

“The version of the story with the offensive word never aired, and this is how I think the editorial process should go,” Mr. Pesca said in the interview.

No action was taken against him after a human resources investigation into his quotation of the slur, Mr. Pesca said. He said he had apologized to the producers involved.

. . .

Mr. Pesca, who has worked at Slate for seven years, said he was “heartsick” over hurting his colleagues but added, “I hate the idea of things that are beyond debate and things that cannot be said.”

Jacob Weisberg, Slate’s former chairman and editor in chief, who left the company for the podcast start-up Pushkin in 2018, called Mr. Pesca “a huge talent and a fair-minded journalist.”

“I don’t think he did anything that merits discipline or consequences, and I think it’s an example of a kind of overreaction and a lack of judgment and perspective that is unfortunately spreading,” Mr. Weisberg said.

For the full story, see:

Katie Robertson and Ben Smith. “Podcast Host Suspended After Debate Over Slur.” The New York Times (Weds., February 24, 2021): B5.

(Note: ellipses added.)

(Note: the online version of the story has the date Feb. 22, 2021, and has the title “Slate Suspends Podcast Host After Debate Over Racial Slur.”)

Sometimes Progress Requires “Tearing Things Down and Rebuilding From Scratch”

(p. B6) In 1931, glass bottles of sparkling soda began rolling off the assembly line at the Coca-Cola bottling plant in downtown Indianapolis. It’s unlikely that the factory’s architect gave much thought to the possibility that shifting consumer habits would make the glass bottle a relic within a couple of generations.

Instead of slipping into obsolescence, the factory went on to have multiple lives. After the Coke factory closed in 1971, the building was briefly used to house Indy 500 racecars, then spent decades as a school bus garage before becoming a 139-room boutique hotel anchoring a new entertainment district last year.

A century ago, developers didn’t give the future much thought, but today, they don’t have the same luxury. A combination of pandemic disruptions and constantly changing technology has brought the hazy, distant horizon much closer.

As a result, a growing number of projects are racing against the clock as profitability and utility are squeezed into the ever-shortening life of a commercial building. Statistics illustrating the acceleration of building life cycles are scarce, but experts in the industry are starting to take heed.

“The cycle of changing is becoming shorter,” said Jefferson Duarte, associate professor of real estate finance at Rice University. Projects that developers once could have collected rents on for half a century or more don’t allow that anymore.

. . .

Consumer and worker needs are changing more quickly than they used to, driven by technology, shifting supply chains and expectations of greater amenities.

. . .

The core problem is that commercial construction is an industry producing highly durable goods in a world that is asking for greater flexibility with changing tastes and economic conditions, Professor Duranton said.

. . .

“Sometimes the right thing will involve tearing things down and rebuilding from scratch,” Professor Duranton said.

For the full story, see:

Kevin Williams. “The Ever-Shrinking Shelf Life of Buildings.” The New York Times (Weds., February 24, 2021): B6.

(Note: ellipses added.)

(Note: the online version of the story has the date Feb. 23, 2021, and has the title “As Buildings’ Life Spans Shrink, Developers Try to Adjust.”)

Successful Chinese Entrepreneur Stands Trial for Defending Free Speech

(p. A10) Like many entrepreneurs in China, Geng Xiaonan found a space in which to make a small fortune — in her case, publishing books on cooking, health and lifestyle.

But unlike many Chinese entrepreneurs, she mixed with critics of the party, organizing dinners and salons that brought together liberal intellectuals, retired officials and longtime dissenters.

Now, Ms. Geng is set to stand trial in Beijing on Tuesday [Feb. 9, 2021] and may spend years in prison for her support for those at odds with China’s deepening authoritarianism, her supporters say. She and her husband, Qin Zhen, have been charged with illegal business activities related to their publishing company. Friends and sympathetic legal experts maintain that her real offense in the eyes of the government was straying from business into sympathizing with critics of Communist Party power.

Ms. Geng, 46, came under growing surveillance last year after she leapt to the defense of Xu Zhangrun, a law professor in Beijing who was suspended after publishing essays scathingly critical of the party and its top leader, Xi Jinping.

“This is simply political persecution,” said Cai Xia, a former professor at the Central Party School in Beijing, who said she had been friends with Ms. Geng for about eight years. Ms. Cai has moved to the United States, where she has denounced the Chinese Communist Party’s tightening of political controls.

“It’s a selective system of enforcement,” Ms. Cai added. “They can make up whatever they want when they want to slap a crime on you.”

Ms. Geng is the latest among a handful of Chinese entrepreneurs detained or imprisoned since last year as the party draws a harder line on businesspeople it deems challengers of Beijing’s rule.

For the full story, see:

Chris Buckley. “Chinese Entrepreneur Was Model of Success, Then She Got Too Close to Critics of the Party.” The New York Times (Tues., February 9, 2021): A10.

(Note: bracketed date added.)

(Note: the online version of the story has the date Feb. 8, 2021, and has the title “This Chinese Businesswoman Was a Model of Success. Then She Angered the Party.”)

“Solar Geoengineering” Is “a Test of Our Technological Ingenuity”

(p. C6) . . . humans have been so successful at changing the environment that we have become the dominant influence on the natural world. According to Elizabeth Kolbert’s new book, “Under a White Sky,” how we proceed is, in one sense, full of possibility, a test of our technological ingenuity and derring-do, . . .

. . .

Kolbert is a writer for The New Yorker, where parts of this book originally appeared. Her narrative voice is steady and restrained — the better, it sometimes seems, to allow an unadorned reality to show through, its contours unimpeded by frantic alarmism or baroque turns of phrase. The people she meets are trying to reverse the course of man-made environmental disaster, whether that might involve electrifying a river, shooting diamond dust into the stratosphere or genetically modifying a species to extinction. She says that the “strongest argument” in favor of some of the most fantastical sounding measures tends to be a sober realism: “What’s the alternative?”

The biggest and most urgent of the impending cataclysms involves climate change. Mitigation efforts — reducing emissions — won’t do anything to alleviate the greenhouse gases that are already trapping heat on our planet. The title of Kolbert’s book comes from one possible side-effect of “solar geoengineering” (or “solar radiation management,” in what’s supposed to be the less scary parlance). Spraying light-reflective particles into the atmosphere will make blue skies look white.

For the full review, see:

Szalai, Jennifer. “BOOKS OF THE TIMES: Exploring All Measures to Save the Environment.” The New York Times (Thursday, February 11, 2021): C6.

(Note: ellipses added.)

(Note: the online version of the review has the date Feb. 10, 2021, and has the title “BOOKS OF THE TIMES: Electrified Rivers and Other Attempts to Save the Environment.”)

The book under review is:

Kolbert, Elizabeth. Under a White Sky: The Nature of the Future. New York: Crown, 2021.

Clubhouse Tests the Market for Live Unfiltered Talk

(p. B1) Clubhouse and other audio-based social networks are attracting users with a simple appeal: hearing another human voice.

. . .

(p. B4) Clubhouse could be successful in building paid features because of its air of exclusivity—an invitation is required to join, but easy to procure—and the high-profile names coming to converse on the platform, including Facebook Chief Executive Officer Mark Zuckerberg, Tesla Inc. CEO Elon Musk, actor Lindsay Lohan and Brad Parscale, one-time campaign manager for former President Donald Trump.

. . .  Mr. Musk’s appearance had in part helped drive an influx of China-based users to Clubhouse, where they participated in a rare outpouring of free debate on topics that are taboo in China, until Beijing’s censors this week appeared to cut off access to the app.

Any Clubhouse user can create a virtual room with designated speakers to discuss any topic, for example the merits of bitcoin, startup-building advice, stand-up comedy, or recovery from childhood trauma. Poetry readings, bedtime serenades and guided meditation are on offer. A number of the conversations are about Clubhouse itself, with users dissecting the app, lamenting its shortcomings and complaining about other users.

Tech executives have questioned the staying power of an app with so few guardrails for the length and quality of conversation and no way to filter out idle chatter.

. . .

As with seemingly all online communities, the challenge of moderation looms. Live audio is tougher to moderate than text or images, . . .

For the full story, see:

Heather Somerville. “Social Networks With A Voice Draw Users.” The Wall Street Journal (Friday, Feb 12, 2021): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date February 11, 2021, and has the title “Clubhouse Wins Over Hollywood, Tech, Even Elon Musk. Are You Next?”)

Musk Says Under F.A.A. Rules “Humanity Will Never Get to Mars”

(p. B5) Last week, SpaceX and government regulators seemed to be in a strange standoff. SpaceX had filled the propellant tanks of this prototype of Starship — its ninth one — and looked ready to launch. But then the rocket stayed on the ground when no approval from the F.A.A. arrived.

Mr. Musk expressed frustration on Twitter, describing the part of the F.A.A. that oversees SpaceX as “fundamentally broken.”

Mr. Musk wrote, “Their rules are meant for a handful of expendable launches per year from a few government facilities. Under those rules, humanity will never get to Mars.”

Late on Monday [Feb. 1, 2021], the F.A.A. gave permission for Tuesday’s launch, but then revealed that the December launch had occurred without the agency’s approval. SpaceX had requested a waiver to conduct that flight even though it had not shown that a pressure wave that could be generated by an explosion during the test would not pose a danger to the public. The F.A.A. denied the request. SpaceX defied the ruling and launched anyway.

Even if Starship had landed perfectly, launching it without approval was a violation of the company’s license.

For the full story, see:

Chang, Kenneth. “SpaceX’s Starship Mars Rocket Prototype Again Crashes After a Test Launch.” The New York Times (Weds., Feb. 3, 2021): B5.

(Note: bracketed date added.)

(Note: the online version of the story has the date Feb. 2, 2021, and has the title “SpaceX’s Prototype Mars Rocket Crashes in Test Flight.”)

Pocketknife on Airplane Saved Lives

Small pocketknives are still banned from flights, in spite of good reason to think that they do not pose a security risk. So if a similar emergency arose now, a Julius Schachter today would not be able to take out his pocketknife and save lives.

(p. A22) Julius Schachter, known as Julie, lived much of the year in Germany. He had flown to the Bay Area in November [2020] for Thanksgiving.

His most significant work involved the chlamydia-related disease trachoma, an eye infection that until 1990 was one of the world’s leading infectious causes of blindness. He established the effectiveness of treating it with the mass distribution of the oral antibiotic azithromycin (until then, the disease was treated topically), said Dr. Thomas M. Lietman, director of the Francis I. Proctor Foundation for Research in Ophthalmology at U.C.S.F. and a longtime colleague of Dr. Schachter’s.

“Everyone in health care is taught that nonspecific antibiotic use is forbidden,” Dr. Lietman said. But in areas where trachoma was regularly found, he added, it was too difficult to determine who exactly was infected. “Julie’s leap was to consider treating the entire community, whether they were infected or not.”

It is expected that trachoma will be eliminated as a public health concern by 2030, thanks in large part to Dr. Schachter.

. . .

Dr. Schachter traveled constantly for work and often took his family on international trips, Sara Schachter, a veterinarian, said. She recalled a harrowing incident in 1986, when she and her brother and father were aboard a flight from Rome to Athens and a bomb exploded. Four passengers died after being sucked out of a hole created by the blast. Some oxygen masks were jammed and failed to fall; a calm Dr. Schachter used a pocketknife to pry them loose for fellow passengers.

. . .

Dr. Schachter continued to work while hospitalized with Covid-19. Dr. Lietman recounted a conversation they had on the day his friend was being moved to the intensive care unit.

“I’ve got to get out of here,” Dr. Schachter said. “I’ve got to finish these four manuscripts.”

For the full obituary, see:

Katie Hafner. “Julius Schachter, 84.” The New York Times (Saturday, January 9, 2021): A22.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the obituary was updated Jan. 8, 2021, and has the title “Julius Schachter, Leading Expert on Chlamydia, Dies at 84.”)