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Calling this a chaotic week on Wall Street might be underselling the situation. We’ve seen drops of more than 2,000 points in the Dow and then gains of even more. In the past five days, the Dow has swung almost 3,300 points. That volatility has pushed more than a dozen companies to shelve their IPO plans, including some of the years most-highly anticipated debuts. StubHub and Klarna, both of which have already filed their prospectuses with the Securities and Exchange Commission (SEC), have delayed their plans. Fintech company Chime, which reportedly was on the verge of revealing its SEC filing, changed its mind at the last minute last week. Mergers and acquisitions? Things arent much better there. The first quarter of this year saw fewer than 80 M&A announcementsthe lowest quarterly total since Q2 2020and things arent looking much sunnier for Q2. But its not just Donald Trumps tariffsor the global responsethat’s spooking markets. The real problem is the complete lack of predictability about what happens next. What will the U.S. reciprocal tariff ratemost of which Trump paused on Wednesday for 90 daysend up being for affected countries? Will the disruption be temporary, or will Trump keep these in place for the rest of his term? How will all of this ripple through global supply chains? There are, unfortunately, no hard answers to any of these questions. The Venture Capital conundrum That’s not only making it confusing for consumers, economists, and business owners, it’s making startup owners worry about their odds of finding venture capital funding. That’s understandable, but it’s worth remembering that the disorder surrounding tariffs and the market has been going on for just one weekand that’s hardly enough time to have any real impact on the funding space. Still, venture firms that back companies approaching an IPO or exit are the most likely to feel the squeeze, investors say. “Investors are trying to figure out ‘how is this going to shake out?'” says Matt Murphy, a partner at Menlo Ventures. “I think that has a bigger impact for the later versus the early stage market. Your valuations are higher and you’re betting on the P&L and the financials of the company; whereas early on, you’re betting on product, team, and market.” Many of Menlos portfolio companies are digital-basedmeaning tariffs, as currently structured, wont directly affect them since they dont sell physical goods. The bigger worry is whether potential customers will hoard cash and delay or skip new software purchases altogether. “It’s not the direct impact of the tariffs [for them], it’s the indirect,” says Murphy. And looming over all this, of course, is the threat of a recession. Moody’s economist Mark Zandi is still pegging the odds of a recession this year at 60%, even with Trumps 90-day tariff pause. Users of the prediction market Kalshi put the odds even higher, at 70%up from just 40% a week ago. JPMorgan says the Russell 2000 Index is now pricing in a 79% chance of an economic downturn. A recession would not only impact consumers, it would also potentially dampen investments, again because businesses would have a harder time selling their product. It would not, however, be devastating for funding companies, says Murphy. “Ultimately, we’ll figure out some new equilibrium around these tariffs,” he says. “Venture will find its normal footing, and the value and impact of the technology will trump [a possible] recession.”
Category:
E-Commerce
Theres now an e-bike that can be powered with the same charger you use for your MacBook. But like many innovations in the electric space, if youre in the U.S. youll have to wait to get your feet in the pedals. The new bike is from Estonian e-bike company Ampler, which bills it as the worlds first USB-C chargeable e-bike. It comes in two models, the Nova and Nova Pro, both currently available for preorder at a cost of roughly $2,800 and $3,300, respectively. The first batch is expected to ship in June. No need to carry around a bulky, custom, bike-specific power block, Kristjan Maruste, chief technology officer at Ampler, says in a YouTube video announcing the Nova. Charge your bike wherever you areat home, on the go, or even in the office. The addition of a USB-C port is a smart move that could make e-bikes more accessible (even allowing them to serve as supplementary phone chargers on the go). As of right now, though, the Nova bike is available only to customers in the U.K., EU, and Switzerlandand, given that the Trump administrations new tariffs will likely hit the American e-bike industry hard, it could be quite some time before USB-C chargeable e-bikes pop up here. [Photo: Ampler Bikes] “A secret race” Most e-bikes on the market today require a special charger designed to work with the voltage of the bikes battery and plug-in design. Often, these chargers are patented by the company selling the bike and designed so that the bikes are compatible only with the companys chargers. This can present a few challenges, including the fact that riders have to remember to pack the charger if they expect to run down the battery, and that many chargers come with a large attached power block. Chargers also add to the bike’s overall cost: The Trek Hyena Gen 2 charger costs $85, for example, while the Bosch 4A standard charger costs $135.50. To address these issues, Ampler designed its Nova bikes with a USB-C port incorporated directly into their frame. Its the same kind of charger thats compatible with devices like the iPhone 16e, MacBook Pro, and most wireless headphonesmeaning you probably already have one lying around. The bike’s port also works in the opposite direction, letting you top off your phones battery on the go. This idea began at one of our company hackathons back in 2020, when we asked ourselves the question, Why cant e-bikes be charged with laptop chargers? Maruste says in the announcement video. According to Kaja Aulik, brand and campaign marketer at Ampler, it turned out that many other companies had theorized, planned, and tried to implement this swap, but e-bike technology hadnt caught up yet. Luckily, she says, many engineers at Ampler had already worked to create the first USB-C chargeable e-scooter, so there was a solid base of experience to start with. The main challenge in implementing the USB-C charger was ensuring that the technology actually worked quickly and smoothly enough. The finished product takes three hours to fully charge and has a range of 50 to 100 kilometers, depending on road conditions. (That’s on the quicker side for a lithium-ion e-bike battery, which typically takes four to seven hours to charge to 100%.) It was a secret race against companies way larger, older, and wealthier, Aulik says. Nimbleness and agility were important to keep in mind. Uncertain terrain for American e-bikes This new development comes as American e-bike production is on uncertain terrain, to say the least. On Wednesday, President Donald Trump announced tariffs of 125% on Chinese imports. By some estimates, more than 90% of e-bikes sold in the U.S. are either fully assembled in China or contain Chinese-made parts. Even brands that manufacture their e-bikes on American soil still rely on parts shipped from China and other countries. On top of the burdensome new tariffs, Trumps administration has also removed the de minimis loophole that allowed products under $800 to be imported from China without tariffs, adding yet another extra cost for bike manufacturers. Amid this landscape, its going to be significantly harder (and more expensive) to ship e-bikes to the U.S. and to build them here. As American e-bike companies work just to hit ther bottom line, it might be some time before they get around to innovating on their charger portsmeaning consumers in the U.S. will be using traditional e-bike chargers for the foreseeable future.
Category:
E-Commerce
President Trumps repeated blows to Head Start over the last 10 weeks have been a source of growing consternation for childcare providers and advocates across the country. As a federal program that covers childcare for low-income families, Head Start enables many providers to serve communities that struggle to afford the steep cost of early childhood education. First, there was Trumps proposed freeze on federal grants and loans, which was not intended to impact Head Start funding but left many childcare centers in the lurch. Some providers reported not being able to access their funding, forcing a number of them to close temporarily. Others worried that their funding could still disappear without warning at any point. ‘An attack on childcare’ The funding freeze proposal was rescinded not long afterbut childcare providers were right to suspect that Head Start would remain a target. Last week, the Trump administration entirely shut down five of the 12 regional Head Start offices and laid off countless administrators at the Department of Health and Human Services who oversee both Head Start and the Child Care and Development Fund (CCDF), another key source of federal funding for childcare. The move has left many childcare providers with no avenue to get answers for their questions about grants or approval for critical updates to their facilities. From my perspective, what is happening is an attack on childcare and early education under the veil of efficiency, says Stephanie Schmit, the director of child care and early education at the Center for Law and Social Policy. We are seeing just mass chaos and confusion and worry and uncertainty as a result.” Beyond the immediate impact, however, the widespread layoffs could destabilize an already precarious industry and effectively compromise childcare access for all kinds of families. The childcare industry is chronically underfunded, between the high labor costs and a lack of adequate federal investment. But the latest swipes at Head Start come after pandemic relief fundingwhich helped prop up the industry for a few yearswas depleted, leaving providers particularly strapped for resources. ‘Death by a thousand cuts’ The attacks on Head Start are not exactly unprecedented. In fact, Project 2025 Project 2025 explicitly called for eliminating the program altogether, and during his first term, Trump pushed for budget cuts to Head Start and similar federal programs that subsidize childcare, like the Child Care and Development Block Grant (CCDBG). Its important to keep in mind that this was in Project 2025, and its been a goal of the conservative movement for a long time, says Whitney Pesek, the senior director of federal childcare policy at the National Women’s Law Center. Its death by a thousand cuts. Its not like they’re wiping it all out in one day, but they’re tearing it apart bit by bit. Head Start, which dates back to the 1960s and was initially conceived of as a program to help fight poverty, has long been a lifeline for low-income families, offering not just childcare assistance but also ancillary social services. For providers, the program has also been a dependable source of funding that allows them to offer childcare services to families who wouldnt otherwise be able to afford it. The grants are five years, and it’s reliable, especially if you have a full Head Start center, Schmit says. So I think many programs have come to rely on the stability of Head Startand that’s a good thing. A domino effect on daycare But its not just the providers and families eligible for Head Start who will feel the effects of the current upheaval. Childcare advocates and experts warn that many more families could lose access to high quality care if the layoffs undermine the crucial oversight ensured by federal and regional staffers, who help enforce safety standards across the industry and support childcare centers that rely heavily on federal grants. The funding secured by programs like CCDBG, for example, is distributed to states to subsidize care for certain familiesbut also to improve overall quality of care. Head Start programs may feel the greatest impact, but plenty of other childcare providers keep their centers afloat through a patchwork of subsidies and other sources of federal funding, coupled with families that pay entirely out of pocket. If there are fewer childcare grants available to providers, they might be forced to increase costs for all families and stop accepting as many low-income children. This is just going to make it more difficult for families to find care, Pesek says. It’s going to make it more expensive, and it’s going to make it less safe. The people who staff regional Head Start offices, in particular, are responsible for managing day to day challenges at childcare centers and offering technical assistance to providers. Those offices are also tasked with expanding supply and access to childcare, and they are often uniquely equipped to address issues faced by families and providers in those regions. Since they are so specialized in their regions, they really have relationships with these grantees and know their communities, Pesek says. To lose that expertise and institutional knowledgeit’s just going to be such a loss. Preparing for an uncertain future Advocates worry that these changes could be a precursor for more pointed budget cuts and funding gaps for childcare assistance programs, but also that the lack of institutional support could further fracture an industry that already struggles to retain staff and pay fair wages. Reliable access to care ensures that parents and families are able to work, but the childcare industry itself is also a major employer. For years, advocates have tried to raise the wage floor for childcare workersa tall order when the cost of care is already out of reach for so many families. “The cost of care is already lower than what it actually costs to provide the high quality care that we really want families to have access toand that’s because the way childcare is designed in this country is that care can only be as expensive as people can afford,” Schmit says. “That’s why public investment in child care is so critical, and why the threats as a result of the layoffs and other actions will have such a significant impact on the childcare sector.” For childcare providers who are already battling financial strain and regulatory hurdles on a daily basis, the fresh challenges they are facing under the Trump administration could push them out of the industry altogether. “A lot of them do [this work] because they get so much joy from caring for children,” Schmit says. “But you could see how a situation like this would cause providers to really question whether this instability is something that they can stick through.”
Category:
E-Commerce
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