Want to Network in Silicon Valley? Bring a Bathing Suit
Instead of bars and restaurants, saunas are the new place for investors and founders to socialise and raise money
3 min
When tens of thousands of software engineers, tech enthusiasts and salesmen descended on San Francisco for the annual Salesforce megaconference in September, startup founder Jari Salomaa had an idea: What if he rented out a sauna?
Salomaa was looking to pitch his startup Valo, which has built an artificial-intelligence tool that helps users on Salesforce’s platform. But an anti-alcohol movement that’s sweeping through the tech industry is disrupting work gatherings that revolve around drinking or eating. That’s leading Salomaa and others to try “social saunas,” where networking happens inside a steamy 200-degree box. In bathing suits.
The experience can take some getting used to. Bathrobes and bikinis can be distracting. It’s also very sweaty.
But investors and venture capitalists say it’s refreshing to have someplace other than a bar to gather and that business is getting done everywhere from a pop-up sauna in a Napa vineyard, to an 80-person sauna in New York.
Salomaa, 46, grew up in Finland where the sauna was part of everyday life and at his first job for Nokia in Helsinki, saunas were built inside the offices.
“There are more saunas than cars in Finland,” he said. “As many saunas as toilets.”
Still, he worried how Americans would react to hanging out in their bathing suits for a corporate event. “Scandinavians are more at ease with body images than the average American,” he said.
He thought about having one event for women and another for men, but the planning soon got complicated. In the end, Salomaa decided on a sort of social experiment: a coed gathering in San Francisco. He wound up with a wait list of 100 guests.
Salomaa imposed some sauna etiquette—bathing suits required and stay hydrated. And he started the event like any other investor pitch, by giving a PowerPoint presentation to an audience clad in bathrobes.
Attendees shared images of the event on social media, and soon Salomaa was fielding calls from friends in the tech industry, asking how they could do a similar event. He’s eager to help, but maintains some reservation about moving too much work inside the sauna.
“If it’s all talk about work, it kind of kills the vibe,” he said.
New social saunas have popped up in San Francisco, New York and Colorado this year.
They are built with stadium seating to fit more people—usually around 20 to 40 people—and conversation is often encouraged.
At Othership, a new sauna facility that opened in New York City’s Flatiron district in July, the sauna can fit up to 90 people. Lined with ambient lighting that can switch from warm red to neon pink, the sauna looks more like a nightclub than a place of tranquility.
Founder Robbie Bent, 40, said young tech founders make up a large part of his clientele. “They want to be healthier, meet like-minded people, and often don’t want to be out late,” he said.
The company hosts founder nights, as well as events for investors and founders to mingle. Othership says tech companies big and small are considering offering its services as a benefit to employees.
Othership has also offered to organise complimentary “team sweats” as team-building exercises. But according to Bent, they received pushback from human resources at companies across tech and Wall Street. Colleagues congregating in bathing suits wasn’t going to fly.
In response to these critiques, Bent designed a “corporate swimsuit”—basically a full-body rashguard for people to wear in the sauna.
Will Drescher, 29, built a social sauna in Boulder, Colo., after going to one in Minneapolis this year. “Neither me nor my co-founder drink,” said Drescher. “And we just thought, why don’t we have this?”
They built Portal, a “more DIY” option than the saunas popping up in New York and San Francisco, said Drescher.
“We wanted to bridge what’s happening in the coasts with what we’re seeing in the middle of the country,” said Drescher.
Venture investor Helene Servillon, 35, proposed a meeting with a founder of a tech company at Portal.
The meeting lasted an hour, which allowed them to cycle in and out of the sauna for three sessions. After learning more about the startup, Servillon said she plans to invest in it soon.
“VCs socialise a lot. If we only have two options—have a drink or a meal—that can just get really exhausting,” she said. When founders or investors ask to meet for happy hour these days, she will often counter-propose with a sauna or a hike.
Fintech investor Sheel Mohnot, 42, co-hosted an August social sauna event in San Francisco and attended an investor event in Napa, where a mobile sauna was wheeled on to the vineyard.
“The reality is there are always chances for people to feel uncomfortable, and more people are feeling that way about drinking,” Mohnot said. “We just didn’t have great sauna options here before.”
Not all tech workers have bought in. Laila Danielsen, chief executive of an AI software company, was invited to a social sauna event in October. She enjoyed the event and the environment it provided to have conversations, but she didn’t go into the hotbox.
“I don’t know if I’d necessarily put on my bikini to go out and pitch a VC, you know what I mean?” the 55-year-old said. “I’ll consider meeting them at the sauna after we close the deal.”
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Selloff in bitcoin and other digital tokens hits crypto-treasury companies.
3 min
The hottest crypto trade has turned cold. Some investors are saying “told you so,” while others are doubling down.
It was the move to make for much of the year: Sell shares or borrow money, then plough the cash into bitcoin, ether and other cryptocurrencies. Investors bid up shares of these “crypto-treasury” companies, seeing them as a way to turbocharge wagers on the volatile crypto market.
Michael Saylor pioneered the move in 2020 when he transformed a tiny software company, then called MicroStrategy , into a bitcoin whale now known as Strategy. But with bitcoin and ether prices now tumbling, so are shares in Strategy and its copycats. Strategy was worth around $128 billion at its peak in July; it is now worth about $70 billion.
The selloff is hitting big-name investors, including Peter Thiel, the famed venture capitalist who has backed multiple crypto-treasury companies, as well as individuals who followed evangelists into these stocks.
Saylor, for his part, has remained characteristically bullish, taking to social media to declare that bitcoin is on sale. Sceptics have been anticipating the pullback, given that crypto treasuries often trade at a premium to the underlying value of the tokens they hold.
“The whole concept makes no sense to me. You are just paying $2 for a one-dollar bill,” said Brent Donnelly, president of Spectra Markets. “Eventually those premiums will compress.”
When they first appeared, crypto-treasury companies also gave institutional investors who previously couldn’t easily access crypto a way to invest. Crypto exchange-traded funds that became available over the past two years now offer the same solution.
BitMine Immersion Technologies , a big ether-treasury company backed by Thiel and run by veteran Wall Street strategist Tom Lee , is down more than 30% over the past month.
ETHZilla , which transformed itself from a biotech company to an ether treasury and counts Thiel as an investor, is down 23% in a month.
Crypto prices rallied for much of the year, driven by the crypto-friendly Trump administration. The frenzy around crypto treasuries further boosted token prices. But the bullish run abruptly ended on Oct. 10, when President Trump’s surprise tariff announcement against China triggered a selloff.
A record-long government shutdown and uncertainty surrounding Federal Reserve monetary policy also have weighed on prices.
Bitcoin prices have fallen 15% in the past month. Strategy is off 26% over that same period, while Matthew Tuttle’s related ETF—MSTU—which aims for a return that is twice that of Strategy, has fallen 50%.
“Digital asset treasury companies are basically leveraged crypto assets, so when crypto falls, they will fall more,” Tuttle said. “Bitcoin has shown that it’s not going anywhere and that you get rewarded for buying the dips.”
At least one big-name investor is adjusting his portfolio after the tumble of these shares. Jim Chanos , who closed his hedge funds in 2023 but still trades his own money and advises clients, had been shorting Strategy and buying bitcoin, arguing that it made little sense for investors to pay up for Saylor’s company when they can buy bitcoin on their own. On Friday, he told clients it was time to unwind that trade.
Crypto-treasury stocks remain overpriced, he said in an interview on Sunday, partly because their shares retain a higher value than the crypto these companies hold, but the levels are no longer exorbitant. “The thesis has largely played out,” he wrote to clients.
Many of the companies that raised cash to buy cryptocurrencies are unlikely to face short-term crises as long as their crypto holdings retain value. Some have raised so much money that they are still sitting on a lot of cash they can use to buy crypto at lower prices or even acquire rivals.
But companies facing losses will find it challenging to sell new shares to buy more cryptocurrencies, analysts say, potentially putting pressure on crypto prices while raising questions about the business models of these companies.
“A lot of them are stuck,” said Matt Cole, the chief executive officer of Strive, a bitcoin-treasury company. Strive raised money earlier this year to buy bitcoin at an average price more than 10% above its current level.
Strive’s shares have tumbled 28% in the past month. He said Strive is well-positioned to “ride out the volatility” because it recently raised money with preferred shares instead of debt.
Cole Grinde, a 29-year-old investor in Seattle, purchased about $100,000 worth of BitMine at about $45 a share when it started stockpiling ether earlier this year. He has lost about $10,000 on the investment so far.
Nonetheless, Grinde, a beverage-industry salesman, says he’s increasing his stake. He sells BitMine options to help offset losses. He attributes his conviction in the company to the growing popularity of the Ethereum blockchain—the network that issues the ether token—and Lee’s influence.
“I think his network and his pizzazz have helped the stock skyrocket since he took over,” he said of Lee, who spent 15 years at JPMorgan Chase, is a managing partner at Fundstrat Global Advisors and a frequent business-television commentator.
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