Early fundraising revisited, split hiring, HR tech boom – TechCrunch
I won’t use this space to dissuade anyone from launching a startup, but founders should accept the fact that investors are looking for reasons not to give you money these days.
Maybe you don’t have much income. Or maybe too much of your cash flow depends on one customer. Oh, and when are you on track to join the $100 million ARR club?
Given current conditions, best practices for fundraising and seeking investor alignment are less relevant than they were a year ago. Back then, the promise of early growth was enough to help many teams close out the top and Series A rounds.
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Today, startups with long sales cycles that don’t have positive cash flow may not even be considered for follow-on investments.
If you’re curious about what kinds of startup investors are (and aren’t) willing to watch, Kami Vision CEO Yamin Durrani wrote an extensive article about the changes he’s seen between raising funds in Q4 2021 and Q3 2022.
“Don’t panic, VCs are interested in investing right now — just in a few areas,” he wrote. In his article, he shares the seven tactics he used to raise funds successfully, such as planning to pitch 30 to 60 investors.
At present, it will take longer to raise less money which will value your business lower than you expected. But if you’re starting a startup with the intention of getting rich, you’re already on the wrong track.
Thanks for reading,
Editorial Manager, TechCrunch+
Growth Cheat Code: Use Split Hiring to Stick to Plan While Cutting Costs
As the winter winds begin to blow, major tech companies like Google, Microsoft and Lyft have each instituted hiring freezes.
Similarly, early-stage startups are under pressure to reduce burnout while preserving forward momentum, but “split hiring is growth cheat code” when used strategically, says Teja Yenamandra, co-founder and CEO of Gun.io.
“There is now much less competition for the talent you hire, and you may be able to lock in a hire that was unaffordable a few months ago.”
Dear Sophie: What are the student and work visa processes for graduates?
I am in India. I am interested in applying to American universities next year to study computer science and artificial intelligence, and possibly work in the United States
Can you please explain both the visa process for students and for professionals who want to work in the US after graduation? Is there anything I can do to plan ahead?
— Fiery Student
Robotics scene continues to be bullish, but layoffs loom
This week at TC Sessions: Robotics 2022, Natasha Mascarenhas spoke with three investors about how “a capital-intensive industry that has a longer sell horizon and many infrastructure hurdles” is holding up against this slowdown.
- Kelly Chen, Partner, DCVC
- Bruce Leak, founder of Playground Global
- Helen H. Liang, Founder, FoundersX Ventures
“On the less rosy side, I think the layoffs are still to come,” Chen said.
“During an economic downturn, customers will be less inclined to experiment, so they think about cutting costs, and then the saving becomes much more important.”
Pitch Deck Teardown: Arkive’s $9.7 million seed deck
Last week, Haje Jan Kamps covered the $9.7 million seed round of Arkive, a “blockchain-powered museum,” which he will use to build a decentralized, crowd-curated museum.
This week, he reviewed 12 slides from Arkive’s winning pitch deck:
- cover slide
- mission slide
- problem slide
- Solution Slide
- Business model slide
- Value Proposition Slide
- Roadmap Slide
- Market Context Slide
- Market Size Slide
- Milestones and What’s Next slide
- Team slide
- Zipper closure
What slowdown? Investors remain bullish on HR tech as big quit slows
Levi Strauss is popular with Bay Area entrepreneurs: A Bavarian immigrant who arrived during the Gold Rush, he opened a haberdashery that sold supplies to speculators hoping to fill the pockets of their new denim jeans with shiny nuggets .
Like Strauss, HR tech startups that help other companies find golden talent have seen their fortunes rise as the Great Resignation has made managing, recruiting and tracking candidates more important than ever.
“As the pandemic has accelerated long-term shifts towards more digital, distributed and data-driven work, innovation in HR technologies has exploded,” said Allison Baum Gates, general partner at SemperVirens Venture Capital.
Can Medicare save the insurtech market?
In 2020, the United States spent almost 20% of its GDP on health care. Every day, about 11,000 people turn 65, making them eligible for Medicare, a federally funded health insurance program that is recruiting new patients faster than ever.
Companies that can help consumers navigate the complex health insurance market have a major opportunity: “The average senior has to choose between 57 different plan options, and most can’t tell them apart,” TX said. Zhuo and James Shecter of Fika Ventures.
They shared their six-point investment thesis with TC+ readers to show how Medicare is the “bright spark” that could light up “the entire insurtech market.”