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We spend a lot. Kudos to tech investors and entrepreneurs for their appetite for risk. But why don’t we put junior staff in one place?
Who is more at risk: a Stanford graduate who uses their network to grow a seed, or an immigrant worker who moves to an expensive city for a startup job?
Secfi, which helps employees manage their equity, found in its latest annual report that 24% of companies cut their valuations last year.
“For people working at those startups, this means some (in some cases all) of their employee stock options have spent 2022 under water,” wrote Secfi CEO Frederik Mijnhardt.
Given how central equity is to attracting tech talent, he writes, “watershed options can have a negative impact on recruiting and retention in the startup ecosystem.”
Investors won’t stop pushing to close rounds anytime soon, and more strikes are coming. Here are some honest tips for late-stage entry-level employees:
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Hoping for the best is not a strategy, and your employers will say whatever they want to keep you focused and productive. When you get fired or downsized, chances are a TechCrunch reporter will know about it before you do.
If you’ve been nurturing an idea for a company, put together a pitch deck and start meeting investors now. You will be more receptive than you think.
That’s not a fresh take.
Yesterday, Monique Woodard tweeted She started Cake Venture Fund I., “$17M Seed and Pre-Seed Funding. Similarly, Axios reports that Social Capital is shifting the focus of its new fund to early-stage deals.
Expect other VC firms to follow suit; While the tech investor is a fascinating myth, herd mentality prevails.
Raising enough money to build your MVP and striving for product-market fit may seem risky, but is it riskier than working on a startup as late as Q1 2023?
Thank you for reading
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
You will not grow to your 2021 estimate.
Image Credits: nfsphoto (Opens in a new window) / Getty Images
Many, if not all, of the founders tied to their 2021 values are living in fantasy, like Jeremy Abelson and Irving investors Jacob Sonnenberg.
For this TC+ post, I break down the simple math behind how long it takes companies to price their IPOs in a flat round to their pre-2021 value.
Companies with 75% YOY growth “can entertain the conversation,” but “if you’re growing sub-30%, there’s a good chance you won’t grow into your 2021 valuation.”
Why Africa Didn’t Have a Unicorn Last Year Despite Record Fundraising
Image Credits: Getty Images
The unicorn is becoming an endangered species in the African startup ecosystem, reports Tage Kene-Okafor.
Although funding in the region increased slightly in 2022, “no unicorns emerged for the entire year, compared to five in 2021,” he wrote.
“So what happened in Africa in 2022… that made it weird?”
Longevity industry predictions by 2023
Image Credits: Myron Jay Dorf (Opens in a new window) / Getty Images
A silver tsunami is approaching.
“By 2030, the 50-plus market is projected to account for 132 million people and spend an average of $108 billion annually on technology products,” said Abby Miller Levy, managing partner and founder of Primetime Partners.
Services such as telemedicine and preventive care are just two aspects of the market, while longevity technology includes retirement planning and other services aimed at older adults.
“We see tremendous founder momentum, untapped spaces to build new businesses, and an increasingly accessible consumer market window for technology.”
Some investors are (cautiously) implementing chatGPIT into their workflows.
Image Credits: Maryam no (Opens in a new window) / Getty Images
Can AI extract unsolicited rejection letters, automate aspects of due diligence, or develop accurate market maps?
Some investors are already evaluating ways to fold ChatGipt “into their workflows to make them work better, smarter, and maybe even cheaper,” Natasha Mascarnhas, Christine Hall, and Kyle Wiegers report.
They interviewed several VCs to learn more about potential use cases, some early experiments, and the limitations of the technology when it comes to voice and tone.
“It’s not about automating the important conversations we have with reporters, but I think it’s good enough for the right things,” said Brian Kimmel, founder of WorkLife Ventures.
How we inspired our deep tech startup to become a SaaS company.
Image Credits: Thomas Wins (Opens in a new window) / Getty Images
Soon after launching the iOS location app Burbn, the developers realized that users mostly wanted their photo sharing feature.
After building a data-driven pivot, they redesigned and rebranded their app, which we now know as Instagram.
ECM PCB Stator Technology was established to build the next generation of electric motors, but after closely studying the market, CEO Brian Casey decided that the Saas model offered clear advantages.
“The market forces, customer needs, and opportunities that you had for your business in the first place to get up and running will definitely change along the way,” says Casey.
6 Crypto Investors Talk About DeFi And The Road To Expect Adoption In 2023
Image Credits: Flavio Collo (Opens in a new window) / Getty Images
Jacqueline Melink surveyed several crypto investors to learn more about what they are looking for in Q1 2023 and how to recommend their portfolio companies:
- Michael Anderson, Co-Founder, Framework Ventures
- Alex Mariner, Founder and General Partner, New Form Capital
- Samantha Lewis, Principal, Mercury
- Paul Veradittakit, General Partner, Pantera Capital
- David Gann, Founder and General Partner, OP Crypto
- Mike Giampapa, General Partner, Galaxy Ventures
Dear Sophie: Any tips for making a strong H-1B case? If not selected?
Image Credits: Bryce Durbin / TechCrunch
Dear Sophie,
I am currently on regular OPT. My employer will sponsor the H-1B lottery in March.
Can you share any tips for making a strong H-1B case if I’m selected? So what if I’m not selected?
– Smart and practical
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