The Best One Yet - “The SoulCycle of egg freezing” — Kindbody snags $32M for fertility. Anti-Tesla Rivian raises $2.5B. Biden’s $700B econ package.

Episode Date: July 13, 2020

$2.5B is a huge amount of money for a fund raise, but it kinda makes sense when that company is Rivian — aka the biggest threat to Tesla yet. Women’s fertility startup Kindbody gets $32M to apply SoulCycle-nomics to egg freezing. And Joe Biden releases his $700B economic package.Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. Welcome back. It is July 13th. Monday, Monday, Monday. It's Monday, Monday, Monday. Now, on Friday, Friday, Friday, I thought my Prothed Puppy River was part Chihuahua, part docks,

and part Australian cattle dog. We did a DNA test, just found out. She's 100% that pup. No, she's also got some beagle, and I swear to God, she's got some super mutt in her, whatever that is. Didn't know that was a thing. A little less exciting than John Snow learning. He's part dragon, though.

But still exciting nonetheless. Spoiler alert, season 8, John Snow's father is John Snow. Spoiler alert, this is the best one yet. Our first story, $2.5 billion just fell into the checking account for Rivian, the company that's developing the first electric pickup truck. Feels like an insane amount of venture capital for a pre-product company like Rivian, but it actually makes a lot of sense. Second story, check.

Presidential candidate Joe Biden just announced a $700 billion economic plan. Billion with a B, Congress passed a $3 trillion with a T economic rescue plan already. But when COVID's finally over, the economy is going to need to get its group back. We're talking Mojo Monday's third and final story, Jack, what do we got? Kind Body wants women to own their future. That's their slogan, by controlling when they get pregnant. This egg freezing startup just raised $32 million for one fascinating strategy. Go wherever soul cycle is.

I feel that's a life lesson. A lot of moms tell Gen Z. No, it's kind of a little brother, little sister strategy. Love where they're going with that. Now, Snackers, before we jump into all these stories, you're not going to hear anywhere else. Last Friday, you may have tried to open up Tinder. You can't go out. You might want to swipe left, swipe right on Mr. Right, Mrs. Wright.

But Tinder didn't work. So you swipe right on your iPhone screen to Pinterest instead, you start looking for some inspiring towelettes for the bath. You got to have a nice pattern on the powellettes. But Pinterest app didn't work either. So you figure, let me listen to Snags Daily. I'll open up Spotify. But Spotify's app didn't work either. So then you're like, I must be on the latest episode of MTV Punked.

Let me check out my MTV app. But MTV doesn't exist anymore, I think. It turns out, Snackers, a whole bunch of iPhone apps weren't working because of Facebook. Snackers, one subtle Facebook takeover the world strategy is a feature called login with Facebook. You may have noticed on a lot of apps. You've probably done it before. I've done it before. And when Facebook's login thing messes up, all the apps that use login with Facebook crash.

It's a digital domino effect that no one is a fan. So Mark Zuckerberg completely controls Facebook, which has 3 billion human beings having accounts. And Facebook basically controls every other app on your iPhone screen. Now, technically, according to our definition of the word zucking, this wasn't technically a zucking. No, it wasn't Jack. But this still feels like a whole bunch of companies got totally zucked. Let's in our three stories. You're tuned in the snacks daily.

We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robberhood family. It's all informational just so you know. We're not recommending any securities. Nope. It's not a research report or investment advice.

Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Robahood Financial, LLC, member FINRA, SIPC. For our first story, Rivian just raised a whopping $2.5 billion with a B to basically take on Tesla. It just raised a quarter of a lift, and it's never even sold a product before.

Hey, Leonardo da Vinci, electric cars are having an American manufacturing renaissance right now. For like 100 years in the United States, you just had the Detroit Big Three. They were founded in 1903, 1908, and 1925. That's like before sports even happened. For 100 years, that was it. Yeah. That was pretty much it. There were no other American car companies found.

There was like cyan, but we're not including Sia. Then came Tesla. And finally, electric cars didn't just mean a Toyota Prius, which is really annoying looking. And now, after Tesla, we've got Nicola. Based in Arizona. And we've got Faraday Future. Based in California. But we've also got Lucid.

Based in Arizona. And we've got Lortstown Motors. Based in Ohio. And we've got Rortzeman. Rivian, based in Michigan, which just raised a huge amount of money to scale electric pickup trucks. We have a shocking alert for Elon Musk. Rivian might be the first electric pickup truck that actually goes on for sale for customers. My good friend, Jack, saying that because Tesla's cyber truck is still TBD, probably won't go on sale until 2022.

Nicola, which is pretty much a cult stock, like, they claim they're going to come out with some, like, proton-powered pickup truck someday. Yeah, this thing is like still on a napkin somewhere. It hasn't even been close to becoming a thing. We have no idea if that will ever go for sale. But Rivian has prioritized this R1T electric pickup truck to take on the F-150 like right now. Yeah, this thing's coming in like six to nine months, no joke, Snackers. Now, the investors that are poning up $2.5 billion, they're not just giving away money to Rivia. No, you've got two types of investors here.

The first is actually just giving up money. T-Roe Price and Fidelity, they're writing checks for hundreds of million dollars and not giving anything else. They just want to own part of Rivian. Classic fidelity. But then on the other hand, you've got investors who are technically strategic investors like Jack, who we got here. Ford Motor Company owns part of Rivian. They're a strategic investor. They actually plan to build an entire car line based on Rivian's chassis.

And there's no better word to say or spell than chassis. But another strategic investor happens to be our buddies over at Amazon. When Amazon announced their climate neutrality pledge, one way they're going to do it is 100,000 electric delivery vans that they've already. ordered from Rivian. Also, Amazon's kind of involved because like 90% of this deal is just Bezos hating on Elon. It's a stage two zucking Bezos is trying to pull it up. We did the analysis. So, Jack, what's the takeaway for our buddies over at Rivian? Building cars requires way more capital than building tech. Snackers, Rivian has received six billion dollars in checks from its private

investors just so far. Now, those investors in exchange, they own shares of Rivian. And when Rivian has an IPO someday, they're going to be like, sweet, I can sell these shares. They're hopefully worth more money than I spent on. But $6 billion is an insane amount of money for a company that is pre-product with its product. Think about it. Facebook raised $1.3 billion before its IPO. That's a quarter of Rivian, and Rivian's never sold a product. This is such a big amount of money because carmaking requires way more than just a few engineers and a bunch of free popcorn at the office. You need a few hundred thousand dollars just to sketch up like the first rendering of your first car. And then, Jack, you're going to need a few million more to do the 3D printed model of a single version of that car. And then you'll need a few hundred million to prototype the first actual car to, like, show off at an auto show.

And then you need a few more thousand to like get the JD power people to come over, test out the car and write a five-store shocker review. Finally, though. The goal for all of these is mass production. And for that, you'll need a few billion dollars to build some assembly lines and some factories. Building cars requires way more capital than building tech. For our second story, we are entering. the second painful round of the coronavirus, so we're looking two steps ahead. And Joe Biden just announced his plan for a different kind of economic stimulus.

Snackers, the challenger for Trump's CEO ship of America is Joseph Biden. He's whipping out his aviator sunglasses, eating some ice cream, and headed to Pennsylvania for his speech. Because if you're a politician, you have to spend 60% of your time in Pennsylvania. Yeah, Pennsylvania equals like the real America. Now, Joe Biden just shared his plan, so since it affects the economy, Jack and I wanted to jump in Snacks style a little further. If elected, Joe Biden said he will spend $700 billion to rebuild the economy from the COVID-19 caused recession. So you can break out your pencil, see how this breaks down, and $400 billion of that $700 billion would be spent on things made in America.

Think less sparkling water, sales or delivery app, more clean energy and infrastructure for this country. Exactly. And this is the kind of stuff that has to be made in the USA, so it's going to get that fancy little flag stamp on the bottom. That's the rule. It doesn't get bought with his government money unless it's made in America. And it also, again, has to have that stamp. Now, the other $300 billion will be on research and development to, like, corporations and universities to ensure that American companies produce the things we actually need. Right. Case and point, remember, like, a few months ago and we needed those N95 masks, Jack, where we're like looking everywhere? Yeah, we're all like, oh, crap, they're all in China and they're not giving up to that.

Serbia has more masks than we do. Like, it was crazy. So those $300 billion, worth of grants will focus on electric cars, 5G, artificial intelligence, and other futuristic things. That's when we get like the self-driving, sparkling, seltzer delivery app. That's where that comes. Oh yeah, of course. That's where it comes. Now, how would this all be paid for? A question we should always be wondering, they're going to undo the tax cuts that were passed in 2017. Yes, stocks actually rose a lot thanks to those tax cuts that benefited businesses so they could fall if this kind of thing gets reversed. But if Joe Biden's plan works, then economic growth would help American families, which would help sales, which would help revenues, and eventually profits and stocks. So stocks didn't

end up budging when this $700 billion plan was just announced because there's just so much uncertainty right now about who would actually win the election. We basically just have two front runners. Whoever wins, their plan won't come into effect until January, which feels like it's decades away. I think in the COVID economy, it actually is literally a unit of decade. Now, we wanted to highlight this story because Nick and I just realized we're entering the second round of the Corona economy. Yeah, you're going to hear the ding ding after the tone. The first round was an abrupt and insane situation, March when like the Cheesecake's factory temporarily furloughed thousands of people. We basically turned the off switch on the economy and it was brutal and painful. But now we're

starting with the second round of Corona Economy layoffs, and this is slow and long and painful, unfortunately. Just last week, Walgreens announced 4,000 layoffs. United, Airlines, 36,000 workers for a load. Levi's jeans, 700 people getting laid off. In just the last week, Sir La Tabla, Brooks Brothers, Moji, they all declared bankruptcy. The economy won't naturally just bounce back from the hole, which COVID has put us into. So, Jack, what's the takeaway for our buddies who are the U.S. economy? Once we've rescued the economy, it'll still need to get its groove back. Snackers, $3 trillion has already been spent by Congress on loans and grants for businesses, and cash for consumers.

Most of that money, though, went to rent, like mortgage payments, medical bills, and like a savings account. It hasn't necessarily found its way into the real economy. Yeah, you're not getting like the splurges at Best Buy exactly. So when COVID's finally under the control, hopefully the economy is still okay, but it'll be smaller than before. Right. It'll be stable, but smaller, which means it needs to get its mojo back.

Government spending on U.S. made things and on U.S. companies and institutions is a great way for the economy to get its groove back. That's how it gets its groove back. And so we're hoping that whatever administration ends up winning after the election is focused on that. For our third and final story, Kind Body, just raised a cool $32 million for women's fertility. Specifically, the sole cycle of women's fertility. That's right. We're talking about egg freezing, Jack. That's the cool office perk Google uses to get you to not leave and go to Twitter. If you won't have a baby, but not right now, you end up spending, you know, a cool $20,000 to maybe save those healthy eggs for later on.

If it works, it means a woman might be able to delay her pregnancy by like 10 years, which is really convenient for some people. Now, it's typically thought that egg freezing is something that women are doing right now in their 30s. Kindbody thinks it's a business opportunity if they pursue 20-year-old people now. Exactly. So this company is targeting customers earlier than the competition is, and it's using a very strategic marketing strategy. body just raised $32 million from venture capitalists, and it's building up an elaborate marketing

funnel strategy to eventually get women down to the profit puppy product. When we're talking funnels, Jack and I have to whip out the whiteboard, and it begins at stage one where you're going to notice some kind body big yellow buses. Yeah, this is kind of like Red Bulls marketing strategy. I think they have a bus too, but they'll like roll around affluent urban neighborhoods with this big yellow bus with like a really nice living room you can come and walk into in the bus. They're doing like blood tests to test your fertility there. It's like a moving billboard. The second part of their marketing funnel is their physical locations where they offer $250 fertility assessments where a woman can sit down and talk to somebody about planning.

And after you've been once, you may come back to that physical office location of Kind Body because it happens to look like, you know, your dream living room. Snackers, Google KindBody.com. It'll show off the lobby. It is gorgeous. This is like chic lobby as marketing. It's like the wing and we work exploded. There's no 1998 parade magazine in the waiting room. A lot of yellow. It actually feels like you're in a honeycomb. Subway tile, succulents. There's like, there's enough fig trees there. You could consider this a forest in Brazil. Now that you're in love with the place, you may stick around, have a consultation with a doctor, talk about your nutrition, set up a relationship with a gynecologist, and you're really loving this place now. Boom. Then you're

on to the profit puppy, the $6,000 egg freezing. That's their core profit puppy. It's where they make most of their money, and they're able to offer it at lower cost because they just have a much leaner setup than like a hospital system. So Jack, what's the takeaway for our buddies over at Kind Body? We're most excited about this new phenomenon which we're calling the Little Brother,

little sister expansion strategy. Snackers, Kind Body is multiple locations right now, but they ask two fascinating questions before adding the next one. The CEO asks, where is SoulCycle opening up next and is it next to a dry bar where SoulCycle is opening up next?

No joke verbatim quote, Kind Body literally wants the same customers as SoulCycle spinning has and dry bars blow drying locations. It wants SoulCycles customers so badly, it's chosen the same color, the same font, and the same branding of SoulCycle. And they're following in its footsteps doesn't stop there. They're clustering their physical locations

where the SoulCycles happen to be. If you are a startup like KindBody, chasing the same customers as a better established company like SoulCycle, let that big. bigger company, do the research for you. Wherever Soul Cycle is a worthwhile neighborhood to set up, free ride. Like, piggyback off that research and set up your location there too. Jack and I are seeing this takeaway as just another way for you to save some time.

Jack, can you whip up the takeaways for us to start the week? Rivian is likely to become the first electric pickup truck early next year. It needs billions to make that happen. Apps just need millions. Joe Biden could become president, so his economic plan matters. It matters a lot because we're in phase number two of the corona economy, real thing. Third and final story, kind body is helping women own their future with egg freezing. It wants the same customers as SoulCycle, so it's just going to set up right next to SoulCycle.

Don't overthink it. Just go where Soul Cycle is. The pack rides together, I think they say at the Syk. I think that's what they say, Jack. Now, time for our snack fact today. This one, technically a couple snack facts sent him by Aaron and John Ramos, also celebrating 10-year anniversary in lovely Maine. Congratulations, John and Aaron. And speaking of anniversaries, the state of Maine is celebrating their 200-year anniversary this year. Not bad. Now, the state seal for Maine happens to have a

moose on it because Maine is one of the highest populations of mooses in the country out of the lower 48. Jack, mooses, meases, moses, moses, moses, moses, moses. I love what we call it the lower 48. Are we lower than Hawaii? It's awkward, and I think we can kind of round up with them. Now, the old main seal had to be changed because the moose looked too much like a deer, which was a problem because Vermont's seal has a deer. Another animal with ambiguous plurality. Now before we go to snackers, also happy birthday to Sunscruti Rati in India. And Eric Roth and Ashley Klein, your buddies up in Burlington, Vermont are toasting a pint of Ben and Jerry's to celebrate your engagement. Congratulations. May your cookie dough be endless. Jack, H.Y, HYSD. Have you had your snacks daily?

I have. We'll see it tomorrow. If you know, you know. This is Jack. I own stock of Amazon. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Financial LLC, member FINRA, SIPC.