Have you ever been on a cruise?
Pre-Covid, most voyages began with a ship-wide safety drill where passengers assembled, donned life jackets and learned what to do in an emergency.
The ocean averages 2.3 miles deep, but these exercises have always been a calm affair. You are starting a vacation; What can happen. could be. Are you wrong?
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Likewise, there’s no reason to be nervous about raising money, but like all boats in a carefree yacht, founders should have a healthy respect for a process that’s out of their control.
“Any change is an opportunity to create momentum, and a downturn is no different,” writes Day One Ventures, founder and general partner of early-stage VC firm Day One Ventures.
In this TC+ post, she talks about the current economic climate and shares “actionable tips for closing early seed to Series B rounds.”
We’re publishing on a reduced schedule over Labor Day weekend, so I’ll be back next Friday with another round. Thank you so much for reading!
Walter Thompson
Editorial Manager, TechCrunch+
@your main actor
Formulate a XaS customer success strategy that drives growth
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Providing better-than-expected service to users can save software startups. In one study, companies that spent 10% of their annual revenue on customer success achieved higher net recurring revenue.
According to Alexander Group’s Rachel Parrinello and John Stamos, “Companies typically deploy two or more customer success archetypes. They often differ in customer segment, business and technical focus, and sales activity focus: acquire, renew, sell, and sell.”
If you’re interested in increasing revenue through customer success, read on for a complete look at the Customer Success Career Design approach because “Companies shouldn’t design their customer success roles in a vacuum.”
We must learn the lessons of the 2021 fundraising bubble
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Does your startup have a data partition? Are you calculating the ROI for each new hire before extending an offer letter?
“Will you even pick up?” At the risk of calling it a meme: All processes in your organization can be improved, and founders should profit whenever possible, writes Imad Akhund, founder and CEO of Mercury.
“Use this tight market to set up and make sure your business is scalable, and you’ll do better when you’re raising money.”
Dear Sophie: What are the fastest visa options for bringing in international talent?
Image Credits: Bryce Durbin / TechCrunch
Dear Sophie,
Our startup is recruiting engineers. Most of our team works remotely, but some of our recruits prefer to work in the office. They are international students graduating in December and some individuals who have worked with us as contractors.
What expedited visa options should we consider? Can their supervisor work remotely? Is there anything else we should remember?
– Strict recruitment
Stop sensationalizing the ‘fall’ of VC: look at the data
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This is a terrible time for many founders looking to raise money. Fundraising is taking much longer than it used to be, and valuations are much lower than they were a few months ago.
But for investors, things are coming back down to earth, says Brian Walsh of WIND Ventures.
The reality is that there was an unprecedented false cycle in 2021, and what we have seen since early 2022 is, in effect, a ‘reversion to the mean’ in line with long-term trends.
In order to reach the next level of fintech, infrastructure providers must address these pain points
Image Credits: Jeffrey Coolidge (Opens in a new window) / Getty Images
Can infrastructure companies like Stripe, Plaid, and Klarna help struggling fintech startups deal with slowing inflation and lackluster deal flow?
Maybe, but “to do that, they need to look closely at the problems their customers face every day,” writes Laura Spiekerman, Alloy’s co-founder and chief revenue officer.
Moving quickly to find better ways to prevent fraud and align products with interest rates could open up huge potential in the sector, Spiekerman says.
“Rather than just signing new ones, infrastructure providers need to adapt and find ways to increase their capacity for existing customers.”
Fundraising action plan for founders in fintech choppy waters
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Startup fundraising is an uphill battle in the off-season, but in the off-season, it’s an absolute grind.
“It’s not you; advises Ryan Falvey, founder and managing partner of Financial Venture Studio.
“The best founders understand that the goal is to close a round, not to increase the price or reduce dilution.” This means that you should contact as many investors as possible and take their money if the terms are reasonable.
