The tide has turned to solo GPs.


Welcome to Startups Weekly, this week’s spotlight on startup news and trends by Senior Reporter and co-host of Equity Natasha Maskerenhas To receive this in your inbox, subscribe over here.

It’s hard to stay awake after the tide turns. However, what we’re seeing happen in the solo GP world where investors are hearing about the risk appetite of institutional investors is changing, extending fundraising timelines, reducing investment vehicle targets or planning to exit the venture altogether. Some have learned the hard way, while others, like Sahil Lavinia, are telling LPs to cash their checks if they feel guilty investing in venture capital when the market is falling and interest rates are rising.

It’s a change from the fund-of-funds mentality that was common last year, in which investment firms directed checks to early-stage, test investors to de-risk and directed early checks to a new generation of startups. Now, the idea of ​​supporting just one can feel like a hard sell – depending on which institution you talk to.

Read my full look at this looming tension in the venture world in my TC+ column: “Are Solo GPs Ruined?”

I know some of us are still reeling from the SVB mess, it’s still very visible. My hope in this piece is to provide a unique set of check writers on how the market will move forward from here. In other words, yes, there is an ominous dark cloud that is more visible now than ever before. But there are umbrellas. Somewhere.

For the rest of this newsletter, we’re talking AI, icons, and demo dates. As always, you can follow me Twitter Or Instagram to continue the conversation. You can also send me tips at natasha.m@techcrunch.com or Dial +1 925 271 0912. No tones, please.

It’s not GM at all; It’s just AI

Now that I’m living in Cerebral Valley, it’s very easy to find investors, founders, or great friends in the middle of a deep conversation about artificial intelligence. Well, recently, we screened ChatGPT trying to explain SVB at a wine night.

Despite the news scene, thanks to Chat GPT plugins, Google login and the magic of Canva, the best piece I read all week came from our own Devin Coldaway. In this analysis, Coldway published a head-to-head comparison of top generative AI tools — asked to create everything from phishing emails to code.

Here’s what you need to know: In the world of AI, the combined effect is almost impossible to contain. Tech continues to beat itself up, and progress is celebrated with only a grain of salt of hope. But if you don’t believe me, see for yourself!

Image Credits: Andriy Onufriyenko (Opens in a new window) / Getty Images

It was heard on the day of the Techstars demonstration

This week I went to my first in-person demo day since 2019, courtesy of 500 Global. There was a unique and energetic energy in the room, as 500 CEO Christine Ty said, the 19 companies were sharing their visions of the future around “the dark backdrop of Silicon Valley.” More on the specific lessons to come, but I thought I’d point out some of the news I heard during the accelerated pitch session below.

  • “I find it very insightful to compare your revenue growth to your team growth – I personally don’t like operations-heavy companies, I’d definitely like to see more investment in R&D and production. [teams]” Cindy BI, Capital X Partner.
  • “We’re officially teenagers,” Tsai said on her soon-to-be 13th birthday.
  • “When you think of a brand, you might think of something like Nike. But for Gen Z, some of the biggest brands are people,” said Meghan Russell, co-founder and CEO of Detour.
  • “We know how to execute exits,” says Tripitaka CEO Peter Wachira.

Image Credits: ContemporAd / Getty Images

One of Venture’s most popular duos wants to have a word with you

I published a podcast interview with Kapor Capital’s Freada Kapor Klein and Mitch Kapor, the entrepreneurial couple behind high-profile impact investing. The duo recently published a book, so we talk about it, their investment choices and the legacy they’re building.

Here’s a key moment. Podcast: “Also, it’s worth mentioning that there were two white guys who thought about working with us in the early days and decided we weren’t making enough money, so they went elsewhere. So I hope they’re kicking themselves and I hope they’ve learned something,” Kapoor Klein said.

  • Earlier this month I was on comedian Alexis Gay’s podcast, Non-Technical, to talk about everything outside of my day job. Come for the croissant hate; He advocated for the devil’s advocate.
  • Also, listen to Found, a podcast about the stories behind startups. This week, the team published an interview with the brains behind “Genetic Startup to Help Environmental Conservation Efforts Bring Back Extinct Species.” Jaw = dropped.
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Image Credits: Clark Studio

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talk soon

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