Cuts CEO on Tariffs, Figma's IPO, and Startup Policy Impacts | E2113

Impact of Tariffs on E-commerce and CPG

• ⚠️ New China tariffs are causing significant disruption to e-commerce and CPG companies, with potential impacts on inventory, growth, and revenue.
• 📉 Businesses may need to extend their runway with existing inventory or absorb the tariff costs, leading to a severely damaged bottom line.
• ⏳ If tariffs continue for 60-90 days, many businesses could fail due to an inability to sell inventory profitably or a massive slowdown in operations.
• 📉 Layoffs are anticipated in the coming weeks for companies in this sector if tariffs are not resolved quickly.
• 🗓️ The removal of the 321 de minimis rule (under $800 imports) on May 2nd will further exacerbate issues for companies like Cuts Clothing.

Figma's Surprise IPO Filing

• 🚀 Figma has confidentially filed to go public, surprising many given the current market conditions.
• 💰 Following the failed $20 billion acquisition by Adobe, Figma received a $1 billion breakup fee and later conducted a $200 million tender offer at a $12.5 billion valuation.
• 📈 With an ARR of approximately $700 million last July, Figma is poised for a significant