The term “dry powder” isn’t enough as a metaphor for a pile of cash investors who stopped by startups just a few months ago, as they don’t need to protect their money from sudden vibrations or direct sunlight. I think.
“What’s crazy for me is that some of these companies are still in the seed stage, backed by the very large companies that are working at this stage,” said the pre-seed-focused hustle. Elizabeth Inn, general partner and co-founder of the fund, said.
“Adding another $ 200,000 or $ 500,000, even if it goes awry, won’t hurt $ 1 billion in funding.”
Rebecca Szkutak interviewed Ascend founders Yin and Kirby Winfield, who focused on pre-seed, about the sudden thing. Urgent funding request recently received from the founder with a short runway..
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“Yesterday, the brand name VC led the seed and crossed a desk that we now call pre-seed,” Winfield told TechCrunch.
“I know this company. I know they grew pre-seed and seed rounds, but now they’re back and say they were pre-seed. Now we’re growing seeds.”
The traditional three-month funding timeline can be as long as six months, as more investors are happy to wait for things. Or even longer.
As a result, founders are plagued by potentially unwanted options such as marking down ratings and accepting flat and down rounds.
On Monday, we’ll run a column with practical advice for investigating both of these scenarios. In the meantime, have a great weekend. Thank you for reading.
TechCrunch + Editor
10 steps to manage layoffs carefully
As I wrote earlier, I decline most of the guest columns I receive, especially those that explain basic best practices. However, the rules are designed to be broken.
This 10-point guide to managing layoffs with empathy and respect helps inexperienced managers overcome the worst part of running a startup: letting go of people.
“People will never forget this day,” said Nolan Church, co-founder and CEO of Continuum, formerly Carta’s Chief Human Resources Officer and Head of DoorDash’s talent.
“They remember it in one of two ways. They either surprised them with bad news and treated them like cows, or did everything they could to help them find them and move on to the next chapter. did.”
Here’s how to keep your fairness if you’re fired
Beware of startup workers. The same people who welcomed you when you signed the offer letter are looking for a place to save money so that the company can emerge.
Reducing staff is another way for founders to regain fairness, as many dismissed workers do not have enough cash to exercise all of their vested interests. When these options expire, you will be returned to your (former) employer.
If you’re working at a startup that extends the traditional 90-day post-retirement exercise period, count your blessings.
If not, this TC + guest post contains helpful advice on budgeting, negotiating, strategy, and saving hard-earned capital.
Five Investors Explain Why Latin America Is Ready To Survive Cryptocurrency Winter
Investors supporting Latin American DeFi startups are “preparing for a rebound,” Annaheim reports, despite the disastrous collapse of the cryptocurrency cohort.
She surveyed five investors betting on companies in the crypto and DeFi sector in the region, how their ethics have changed since the beginning of the winter, and why consumer recruitment at LatAm. Learned if is stronger than other markets.
- DeFi Wonderland, co-founder, Matias Nisenson
- Christine Chang, Head of Corporate Development and Ventures, Tribal
- Patricio Jutar, co-founder and general partner of Newtopia VC
- Claire Diaz-Ortiz, Startup Committee Chairman, VC3; Scout, Kleiner Perkins
- TheVentureCity, General Partner, Andy Areitio
Dear Sophie: Questions about Green Cards and EB-2 Priority Dates
I have been using H-1B since 2011. I have an EB-2I-140 whose priority date was approved in April 2015. I’m Indian by nature, so I’ll have to wait a long time. Get a green card.
As an experienced cyber security expert, I think I am eligible to sign up for EB-2NIW. Is there any benefit to applying for EB-2NIW now?
— Idealism from India
Experiments that force late startups to make infinite money are over
It’s not your imagination. After the Flood, the venture capital rain stopped.
According to a report from CB Insights’ State of Venture in the second quarter of 2022, global venture funding fell by 23% quarterly, the second largest decline in 10 years.
Mega-rounds over $ 100 million have been hit hard. In the fourth quarter of 2021, it accounted for $ 6 of the $ 10 invested in private market capitalization. In the second quarter of 2022, it fell to 47%.
“It’s a long-standing plunge,” writes Alex Wilhelm.
Pivot startups in the bear market: definitely be able to raise money
All founders are currently looking for ways to save cash, but focusing on saving money rather than increasing efficiency only delays the inevitable.
According to Kraig Swensrud, founder and CEO of Qualified, in July 2022, investors will not help companies that cannot prove proficient in the five basic KPIs.
“We will not immediately return to the highest levels of the last decade, but honesty, strong leadership and operational efficiency can not only survive but also prosper.”
Pitch Deck Disassembly: Forethought’s $ 65 Million Series C Deck
Last month, enterprise reporter Ron Miller told Foresort CEO Deon Nicholas about the pitch deck his company won a $ 65 million Series C round in 2022.
This week, Forethought shared 23 slides for analysis. This includes eye-catching advisor / investor slides including Gywneth Paltrow, Sean “Diddy” Combs, Robert Downey and Jr.