Hi, welcome back to Insider Weekly, our roundup of the top business stories of the week. I'm Josée Rose, one of the executive editors of business at Insider. I'm filling in for Matt Turner this week.
But before we begin, please take a moment to read through Insider's ongoing coverage of Russia's unprovoked war in Ukraine. Our global news team has been covering this crisis around the clock, and you can follow their live reporting.
Some of the latest updates: The U.N. High Commissioner for Refugees said that more than 1.5 million people have fled Ukraine. Russian President Vladimir Putin called sanctions imposed on his country "akin to a declaration of war." President Volodymyr Zelensky urged Ukrainians to "go on the offensive." More here.
The events will have far-reaching repercussions in the geopolitical world, as well as in the global business and finance industries. Our first business story examines how tech employees of US companies in Ukraine are caught in the middle.
On the agenda today:
- Startup CEOs with teams in Ukraine are struggling to help their employees.
- How Peloton founder John Foley lost his company.
- Biotech founders are turning to tech VCs to fund the riskiest stage of starting a drug company.
- Mega-manager Scooter Braun says he's the nice guy in a bad business. Insiders have seen a different side of him.
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How tech CEOs are supporting Ukrainian staff
Ukraine has almost 200,000 IT workers, a report from Stack Overflow said, many of whom work for US companies.
Many of these startups' CEOs, who are in the US, are scrambling to ensure that their employees are safe and to provide them with whatever aid they can, three startups told Insider.
"Our team went from their day-to-day from being employees at a fast-growing, high-tech business to having survival conversations," said Guy Nirpaz, the CEO of the cloud-computing startup Totango. Similarly, Grammarly, the artificial-intelligence proofreading startup founded by three Ukrainian students in 2009, said it was in close contact with its Ukrainian employees as it attempted to ensure their safety.
Madeline Renbarger, Insider's VC and startups reporter, explains more.
What's been the sentiment among the CEOs you've spoken with?
Madeline: CEOs and leaders of American companies have been frustrated about the lack of direct ways they can help their Ukrainian employees, especially while they are under heavy fire from Russian forces in major cities.
How have they been helping their employees in Ukraine?
Madeline: The CEOs that I spoke to are primarily trying to get direct payments to their employees, whether it be financial aid or salary advances. They had also offered to relocate their employees before officials shut down the borders to all Ukrainian men ages 18-60.
What's one thing you've learned in your reporting that's stuck with you?
Madeline: Ever since speaking with Totango CEO Guy Nirpaz, I keep thinking about how even before the border closure, almost all of his employees refused his offer to relocate them. From enlisting in the military and volunteering for the Red Cross, they are fully dedicated to helping their fellow countrymen.
Read the full story here:
Check out more of our coverage:
- A Goldman Sachs engineer who fled Ukraine opens up about her survivor's guilt.
- The sanctions on Russian oligarchs and banks are raising questions for deep-pocketed VC investors.
- Ukraine's ad industry has come together to counter misinformation about Russia's attack.
What's next for Peloton — and its founder
John Foley, Peloton's founder, shocked many when he resigned as the company's CEO last month. But with 40% of Peloton's voting shares and a new role as executive chairman, Foley is still the most important person at the connected-fitness company.
Insiders described Foley as high-energy and passionate, as well as prone to micromanaging certain aspects of the business. So it's unclear how much he'll cede control of day-to-day operations to the company's new CEO. And with a combative activist investor seeking to oust Foley entirely, Foley's next moves may determine the future of Peloton.
See what's spinning for Foley.
Tech VCs are becoming top biotech seed investors
Some biotech founders are shirking traditional biotech VCs. Instead, they're heading west to Silicon Valley to meet with tech investors.
Five biotech entrepreneurs told Insider that tech VCs offered them more favorable investment terms than biotech investors. In particular, they said the biotech VCs wanted them to give up control of their companies in exchange for cash infusions.
Why biotech founders are turning to tech VCs.
The many faces of Scooter Braun
Scooter Braun, the 40-year-old music manager best known for discovering Justin Bieber and beefing with Taylor Swift, presents himself as the consummate good guy. But some critics say he's burned a lot of bridges in building his empire, and conversations with entertainment insiders suggest there are many sides to the mega-manager.
Some people who have dealt with Braun describe a person consumed by his own larger-than-life vision of himself, who chased money and power so far down the road that he lost sight of all else.
More of this week's top reads:
- Some workers are taking it easy instead of quitting jobs they're fed up with. Here's why.
- Editors at The New York Times are focusing on retention as policies about outside projects spark exits.
- Robinhood's future looks bleak, and it may have to start copying its old-school rivals if it wants to make it through.
- Google Cloud is terminating and outsourcing dozens of support roles in its latest move to cut costs.
- These 15 investors are fueling Wall Street's rush to buy and rent out single-family homes across the US. Meet them here.
- If airlines are the last place in America to require masks, the skies could become even less friendly for flight crews.
- A former employee is suing the e-commerce startup Fast over claims of "sex discrimination" and "gaslighting." She explains why.
Plus, some Insider news:
- Introducing "The Refresh" from Insider, our highly informative audio brief with the latest business, tech, current events, and lifestyle news — constantly updating between 7 a.m. and 1 p.m. ET on weekdays. Listen here tomorrow morning!
Curated by Josée Rose. Edited by Jordan Parker Erb and Lisa Ryan. Sign up for more Insider newsletters here.