Despite the ongoing correction in the public markets, mass cuts in the technology sector and high inflation, US Treasury Secretary Janet Yellen says we are not in a recession yet.
At the same time, it’s taking longer to get startup funding than it did just a few months ago, which means many companies are burning through it faster than they can raise money.
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For SaaS startups, it’s not enough to lay off employees and walk away entirely: To add more time to the countdown clock, founders need to calculate their burn multiples (net burn/net new ARR), says Alex Zakoff, the firm’s CEO and co-founder. Intelligent automation;
The gold standard is a multiple of one burn – for every dollar you burn, you add a net new dollar in subscription revenue. At less than zero, you’re in a cash-flow-positive position, which is really hard to do. But say you’re burning $2 million in a quarter and you’re only adding $500,000 in net new ARR. You’re at a 4x burn multiplier, and you may need to start thinking about how to slow down.
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The right questions to ask investors when raising money in a bear market
Fundraising conversations still start with small talk, but startup groups are under more pressure than ever to make the most of these rare opportunities.
According to Blair Silverberg, CEO and founder of Hime Capital, entrepreneurs should resist the urge to be defensive during these sessions.
“In fact, the more a founder can get the questions back to the investor in a way that provides a better understanding of their business and investment strategy, the easier the rest of the conversation will be.”
All My Monkeys Are Gone: Legal Disputes at the Intersection of IP and NFTs
Andy Warhol got lucky when he featured images of Campbell’s soup cans in 1962: for a number of reasons, the company decided not to sue for trademark infringement.
If Warhol had made a series of NFTs with visual labels, one wonders how the situation might have played out 60 years later.
In a recent TC+ post, CORPlaw founder Kristen Corpion explored trademark infringement, the first sale doctrine, and why Seth Green ended “the most interesting and important IP legal issues affecting the creation, transfer and use of NFTs today.” A $100,000 premium for the return of the stolen Bored Monkey.
Fundraising in Turbulent Markets: Why We Raised Our Series B
OpenPhone successfully raised $14 million in Series A in November 2020, but co-founder and CEO Mahyar Raisi realized they needed another round a year later, saying “it became clear that the market was changing.”
In classic TC+ “how to” style, Raissi, a former software engineer, explains the process his team used to accelerate their Series B, the strategies they used to manage investors, and how the strategy led to a $40 million round.
“To ensure a timely process, you need to have a complete and bulletproof case for investing in your company. Before you start talking to VCs, you need to spend two weeks preparing your data and the story behind it,” advises Raissi.
“There’s no time to test the waters and get early feedback. Do all that before you start the countdown.
Pitch Deck Teardown: Alto Pharma’s $200M Series E Pitch Deck
If your company raises a $200 million Series E, it’s worth debating whether you can still call it a startup.
Still, convincing investors to put up enough cash to make your own “Grey Man” sequel is a daunting task, which is why we’re excited to review the deck that helped Alto Pharma close such a big round.
8 FinTech VCs Discuss the Changing Investment Landscape and How to Position It in Q3 2022
What are fintech investors willing to bet on in this climate?
To understand how their attitudes and strategies have changed in recent months, Mary Ann Azevedo asked eight active investors about the advice they’re giving portfolio companies, how they expect the next few quarters to unfold and their preferences:
- Paul Stamas, managing partner and co-head of financial services, General Atlantic
- Alda Leu Dennis, General Partner, Initialized Capital
- Michael Gilroy, General Partner and Associate Head of FinTech, Coatue
- Justin Overdorff, Partner, Lightspeed Venture Partners
- Addie Lerner, Founder and Managing Partner, Avid Ventures
- David Jagen, Managing Partner, F-Prime Capital
- Nik Milanovic, General Partner, FinTech Fund
- Jay Ganatra, Co-Founder and Managing Partner, Infinity Ventures