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TechCrunch+ roundup: 20 questions VCs ask, crypto compliance tips, Indian investor survey

The quickening pace of tech layoffs is creating growing uncertainty for workers, but it’s giving investors access to a new wave of technical and entrepreneurial talent.

There’s no simple test to determine which aspiring founder can turn their idea into a billion-dollar business, but VCs who know which questions to ask can uncover the right mindset, says Sanjay Reddy, a co-founding partner at Unlock Venture Partners.

In this TC+ article, he shares an extensive list of questions he asks first-time founders to gauge their relative strengths and weaknesses across several vectors.

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This post isn’t angled solely at VCs and angels: Reddy states that investor “confidence is typically based on pattern recognition,” which means aspiring CEOs must be able to credibly answer specific questions like:

  • “Why are you doing this? Passion? Mission? Chip on the shoulder? Belief?”
  • “Do you have control over your finances, both personal and business?”
  • “How do you communicate your message to investors, coworkers, potential partners, etc.?”

There are a ton of barriers to launching a startup, but impostor syndrome need not be one of them. Anyone who can confidently answer the 20 questions in this post is ready to pitch an investor, IMO.

Thanks very much for reading TC+, and have a great weekend.

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

How to spot investment-worthy founders: Look for mindset, competence and confidence

3 tips for crypto startups preparing for continued compliance

Numbers 1 2 3 on connected jigsaw puzzle pieces. 3 tips for crypto startups preparing for continued compliance

Image Credits: cagkansayin (opens in a new window) / Getty Images

Most startups can avoid getting into the weeds on legal matters before launching, but crypto companies are in a different boat. Facing a tangle of state and federal legislation, inadequate compliance can quickly generate regulatory hassles and undermine customer confidence.

In a TC+ post written by three lawyers from law firm Norton Rose Fulbright US LLP, the authors share basic information relevant for any crypto startups that operate in the U.S..

“By establishing a robust, risk-based compliance function … and staying abreast of the latest regulatory guidance, cryptocurrency companies can better position themselves to weather the crypto winter,” they write.

3 tips for crypto startups preparing for continued compliance

4 Indian investors explain how their investment strategy has changed since 2021

pile of Indian coins

Image Credits: mtreasure (opens in a new window) / Getty Images

For our latest survey, TechCrunch reporter Jagmeet Singh asked four Indian investors about how their work has changed since the global tech downturn began.

Venture capital funding in the region “dried up in the second half of 2022,” so he inquired about their current pace of dealmaking, which investment trends they’re watching and how founders can reach them.

  • GV Ravishankar, managing director, Sequoia India
  • Ashutosh Sharma, head of India investments, Prosus Ventures
  • Vaibhav Domkundwar, CEO and founder, Better Capital
  • Roopan Aulakh, managing director, Pi Ventures

4 Indian investors explain how their investment strategy has changed since 2021

How Fellow bootstrapped for 8 years to build a coffee empire

It takes a lot of work to turn a college class project into a self-funded hardware startup.

Fellow first drew notice in 2013 with a Kickstarter campaign to fund production of its Duo coffee maker. Although that item turned out to be a dud, Fellow now sells a line of high-end kettles, grinders and other gear. Last summer, the San Francisco-based company announced a $30 million Series B round.

“Looking back, not raising institutional money early on was absolutely the right call,” CEO Jake Miller told TechCrunch+. “We only exist today because of that choice.”

How Fellow bootstrapped for 8 years to build a coffee empire

Ask Sophie: Which visas will allow us to expand our startup in the U.S.?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

My co-founder and I launched a B2B SaaS startup in Poland a few years ago and are now looking to expand in the United States for market access since we have product market fit in a few countries in Europe.

We really need to be on the ground to interview our ideal users in the U.S. What visas will allow us to do that?

— Aiming for America

Dear Sophie,

Can you please share details on premium processing for international student work permits?

— Psyched Student

Ask Sophie: Which visas will allow us to expand our startup in the US?

Pitch Deck Teardown: Prelaunch.com’s $1.5M Seed deck

Earlier this week, Haje Jan Kamps interviewed Prelaunch.com Narek Vardanyan to get his perspective on how hardware startups can validate products before going to market.

In a follow-up, he analyzed the pitch deck for Prelaunch.com’s $1.5 million seed round, which showed investors how the company’s monetizes its product forecasts:

  • Cover slide
  • Summary slide
  • Market context slide
  • Problem slide
  • Solution slide
  • Problem with the existing solution slide
  • Product slide 1
  • Results slide
  • Product slide 2
  • Product slide 3
  • Product slide 4
  • Vision slide
  • Value prop slide
  • Traction and metrics slide
  • Business model and pricing slide
  • Market trends slide
  • Why now slide
  • Team slide
  • The Ask slide
  • Contact us slide

Pitch Deck Teardown: Prelaunch.com’s $1.5M seed deck

TechCrunch+ roundup: 20 questions VCs ask, crypto compliance tips, Indian investor survey by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Big Data’s cloud backlash, CVC pitch tips, de-risking hardware startups

For most of the Information Age, companies that wanted to scale invested in server farms and hired teams to keep them running.

At one of my first startup jobs, I walked in one day to find two sleeping co-workers who’d spent the night configuring servers at a co-locating facility 60 miles away. Soon after, when I worked at a publicly-traded company, our on-prem data center was resilient enough to operate through a moderate earthquake.

The relatively recent shift to cloud computing promised to lower costs and boost productivity, but “cloud-first strategies may be hitting the limits of their efficacy, and in many cases, ROIs are diminishing,” writes Thomas Robinson, COO of Domino Data Lab.

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I started wearing sweaters at home after I got my last utility bill, but with enormous workloads from “ML, AI and deep learning programs that require dozens or even hundreds of GPUs and terabytes or even petabytes,” companies at scale can’t simply dial back their data usage.

Because “the great repatriation” now taking place among public companies also has direct implications for startup DevOps teams, Robinson shares suggestions for “a few things that can be done to ensure future flexibility for where workloads are created.”

Thanks for reading TC+ this week,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

The cloud backlash has begun: Why big data is pulling compute back on premises

When it comes to early-stage growth marketing, it’s often better to imitate than innovate

Plastic banana beside real banana

Image Credits: Jorg Greuel (opens in a new window) / Getty Images

I’m pleased to announce that self-described “growth marketing nerd” Jonathan Martinez has come aboard as a recurring TC+ contributor!

Martinez, who worked on growth teams at Uber, Postmates and Coinbase, is also the founder of SalesKiwi.

In his latest article, he explains why copying your rivals’ most successful marketing strategies can be one of the fastest ways to get traction with new customers.

“There’s no need to constantly reinvent the wheel,” he advises. “Conserve your resources to innovate for high-probability tests that you’re excited to try at various stages of your startup’s life.”

When it comes to early-stage growth marketing, it’s often better to imitate than innovate

SaaS is still open for business, but it’s going to take longer to buy and sell

Close-Up Of Blue Sand Falling In Hourglass

Image Credits: Ruslan Malysh/EyeEm (opens in a new window) / Getty Images

More than 225,000 tech workers have been laid off in the last year, which is having a direct effect on SaaS renewal and purchase cycles.

SaaS customers that reduced headcount are buying fewer seat licenses and sales cycles are taking a little longer than they used to, says Ryan Neu, CEO and co-founder of SaaS-buying platform Vendr.

“Over the last three years, our data has shown a steady decline in multi-year deals,” he writes in TC+. “Yet we have also seen a significant increase in [average contract value] from purchase to renewal in mission-critical and sticky software categories, like CRM or email.”

SaaS is still open for business, but it’s going to take longer to buy and sell

How to pitch CVCs

CVC, corporate venture capital,

Image Credits: Getty Images

As individual VC firms pulled back and began amassing dry powder in 2022, corporate venture capital (CVC) funds stepped up.

Pitchbook found that CVCs played a part in 56.2% of all venture deals that took place last year, “up only a hair over 2021’s 25.6%,” reports Rebecca Szkutak, who spoke to a few experts to find out how startups in fundraising mode can get on their radar.

“If there isn’t a product integration angle, and we don’t see or can’t find evidence that a customer of ours or theirs would want to work together, it would be hard for us to work together,” said Andrew Ferguson, VP of corporate development and ventures at Databricks.

CVCs remained consistent investors in 2022

10 tips for de-risking hardware products

safety vests and hard hats hanging on wall in site office

With the right team, a software startup might only need weeks to go from the idea stage to billing their first customers.

Conversely, all hardware startups grapple with high capital expenditures and need time to ramp up production, which is why testing and evaluating demand are so important, says Narek Vardanyan, founder of Prelaunch.com, which recently closed a pre-seed round.

“You need to make decisions based on people’s actual behavior,” he said in an interview with TechCrunch+. “You need to make sure that the data you’re tracking is coming from the right types of people.”

10 tips for de-risking hardware products

Thinking about pulling the plug on your startup?

Close up of web page button on monitor screen

Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

I just read a Twitter post by angel investor Gokul Rajaram asserting that founders who raised large sums before the downturn but have yet to find product-market fit “are going through an excruciating psychological journey.”

Entrepreneurs are indoctrinated to pursue success at all costs, but “chasing endless pivots trying to find PMF is a bridge to nowhere,” wrote Rajaram, who shared a story about a founder who returned funds to investors before winding down operations:

“The relief they felt when they realized investors and employees were on board and 100% supportive of their decision, was palpable. (All employees received solid severance before the company shut down).”

If you’re a founder who has decided to shut down (or an investor who’s counseled one), please consider sharing your story with TechCrunch+. To get in touch, send a note to guestcolumns@techcrunch.com.

Write a TechCrunch+ guest post that could help someone navigate this downturn

Corporate investment in AI is on the rise, driven by the tech’s promise

Rolled dollar bills hang from a bonsai tree.

Image Credits: Karl Tapales (opens in a new window) / Getty Images

Last year, global investors poured $77.5 billion into AI startups, a 115% YoY increase, reported Tortoise Intelligence.

According to Kyle Wiggers, corporate adoption of generative AI is fueling investor interest, as are the sector’s outsized returns: A 2022 poll found that 92% of large companies are “achieving returns on their data and AI investments.”

Corporate investment in AI is on the rise, driven by the tech’s promise

TechCrunch+ roundup: Big Data’s cloud backlash, CVC pitch tips, de-risking hardware startups by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: 7 VCs who are taking pitches, AI best practices, zero-based budgeting

It’s too early to determine whether SVB’s downfall heralds a new era for venture capital, but based on anecdotal evidence, off-the-record discussions and chats with co-workers, it seems like we’re back to business as usual as far as pre-revenue startup fundraising is concerned.

Not a scientific sampling, but I noticed that several investors signaled this week on Twitter that they remain interested in talking to founders who are still at the idea stage.

I shy away from sharing hot takes, but here’s one: With contagion contained, the VC community feels good about writing smallish checks for pre-revenue startups, but Series A and up? Más o menos.

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Before Silicon Valley Bank crashed, I asked seven VCs about the startups they’re interested in backing right now, how they prefer to be approached and whether they could share any tips for first-time founders.

As long as this downturn persists, this investor Q&A will be a monthly TC+ column. If you’re a recently laid-off worker considering striking out on your own, an H-1B employee who’s had it up to here or just looking for tips and advice that can help you connect with early-stage investors, please read and share.

If you’re an investor who wants to be included in future columns, email guestcolumns@techcrunch.com with “How to pitch me” in the subject line.

Thanks very much to everyone who took the time to respond to these questions in such detail. There’s plenty of tactical advice here, and much more to come.

Here’s who participated:

Have a great weekend,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

How to pitch me: 7 investors discuss what they’re looking for in March 2023

Best practices for changing times: How founders should leverage AI and ML in 2023

As startups navigate a disruptive season, they need to innovate to remain competitive. Artificial intelligence and machine learning may finally be capable of making that a reality.

Image Credits: Getty Images

We don’t run many articles promoting basic best practices. Suggestions like “listen to your customers” and “make data-driven decisions” are so general, they’re hard to implement.

But now that AI-driven solutions are offering search results, producing poems and generating illustrations on demand, startups need a plan for creating customized user experiences, according to Ab Gaur, founder and CEO of Verticurl.

“While excessive or unhelpful customer data can clog content pipelines, the right information can power hyper-personalization at scale,” he writes.

Best practices for leveraging artificial intelligence and machine learning in 2023

Zero-based budgeting: A proven framework for extending runway

Zero-based budgeting (ZBB) is one of the most aggressive budgeting methods to cut burn to the bare minimum.

Image Credits: Getty Images

It’s critical to make every dollar count in this environment, but pulling back too much in the wrong places can reduce momentum across your entire organization.

Instead of simply trimming a little off the top, more startups are turning to zero-based budgeting, an aggressive tactic in which founders return to square one for every budget period “to verify all of the line items are relevant and cost-effective,” writes FP&A analyst Healy Jones.

“The best founders look for a framework to strategically cut burn while keeping their startup’s value drivers functioning.”

Zero-based budgeting: A proven framework for extending runway

5 strategies for biotech startups to outlast a market downturn

To ensure survival, it’s essential to explore alternative funding methods rather than relying solely on classic fundraising.

Image Credits: Getty Images

Spinning up a biotech company is a massive undertaking. Compared to a SaaS startup, the investment required to build a team, acquire research funding and ensure regulatory compliance can be staggering.

Dr. James Coates, “a venture capitalist specializing in early-stage life science companies,” says biotech founders need to look beyond their investor networks to find additional money these days.

In his latest TC+ post, he shares five action items “that could help your biotech startup navigate a cooling fundraising environment.”

5 strategies for biotech startups to outlast a market downturn

Pitch Deck Teardown: StudentFinance’s $41M Series A deck

Image Credits: StudentFinance

Last month, we reported that European fintech startup StudentFinance landed a $41 million Series A to expand its service, which offers educational funding via income share agreements (ISAs).

This week, Haje Jan Kamps reviewed the company’s Series A deck, minus redactions for “sensitive revenue, cost and unit economics slides:”

  • Cover
  • Mission
  • Opportunity
  • Problem
  • Solution
  • Value proposition part 1
  • Value proposition part 2
  • Business model
  • Technology
  • Metrics
  • Road map (labeled “expansion”)
  • Geographic expansion (labeled “expansion”)
  • Growth history and trajectory (labeled “expansion”)
  • Team
  • Contact

Pitch Deck Teardown: StudentFinance’s $41M Series A deck

Dear Sophie: How can I return to the United States as a founder?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I lived and worked in the United States on an L-1B for a year, and then changed to an H-1B for 2.5 years before I moved back to India (where I’m a citizen) and founded a startup.

Now I want to return to the U.S. to raise funds for my startup. What are my options for returning to the U.S. as a founder?

— Fast-Moving Founder

Dear Sophie: How can I return to the United States as a founder?

‘Trust is a hard thing to earn’: SVB’s closure could disproportionately affect Black founders

black-founder-svb

Image Credits: Bryce Durbin

Silicon Valley Bank’s federal takeover means former customers can access their funds, but some Black tech founders are concerned that its closure makes their uphill climb even steeper.

Because SVB’s startup-focused approach lowered barriers to banking services, it was a popular choice for many Black founders, reports Dominic-Madori Davis.

“Silicon Valley Bank was certainly willing to push the envelope and see what they could do, including investing in Black funds,” said Lightship Capital co-founder Brian Brackeen. “We don’t see that commitment from other banks.”

‘Trust is a hard thing to earn’: SVB’s closure could disproportionately affect Black founders

TechCrunch+ roundup: 7 VCs who are taking pitches, AI best practices, zero-based budgeting by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Beyond the Turing Test, 3 VCs on SVB, usage-based pricing tactics

When I moved to San Francisco, the quirky rotunda at 532 Market Street was a Sharper Image store full of plasma balls and tourists trying out massage chairs.

The E*Trade branch that took over the space closed a few years ago, but last August, it got a new tenant: Silicon Valley Bank. Sigh.

Downtown SF hasn’t bounced back from the pandemic, but this is a prime location with lots of foot traffic. Hopefully, after Silicon Valley Bridge Bank winds up its operations, a viable business will move in.

But that’s just one street corner. The second-largest bank failure in U.S. history is going to reshape the startup ecosystem for years to come.

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Silicon Valley Bank was more than just a preferred choice for managing payroll and investor cash: It also offered wealth management services, below-market-rate home loans and helped coordinate private stock sales. It was also a required choice for many clients whose contracts required them to “use the firm for all or most of their banking services,” CNBC reported.

So where does this bank’s collapse leave the tech industry? Who’s most vulnerable, who stands to benefit, and what are some of the long-term implications for VC? To learn more, Karan Bhasin and Ram Iyer interviewed:

  • Maëlle Gavet, CEO, Techstars
  • Niko Bonatsos, managing director, General Catalyst
  • Colin Beirne, partner, Two Sigma Ventures

“We’re probably going to see consolidation in the VC class,” said Gavet.

“It was already on the way, but this is probably going to accelerate it, because SVB was also a preeminent provider of loans for GPs to make their capital commitment polls.”

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

3 investors presage the future of startups and VC following SVB’s downfall

The AI revolution has outgrown the Turing Test: Introducing a new framework

Human head and stairs - idea concept

Image Credits: themacx (opens in a new window) / Getty Images (Image has been modified)

A friend recently asked me to identify a block of ChatGPT text that they’d embedded in an email. I was able to easily, but only because the passage was particularly boring and didn’t sound like them at all.

Although generative AI is exceeding my expectations, the Turing Test is mostly intact in my personal experience. But for how much longer?

Entrepreneur/investor Chris Saad says we need a new benchmark that goes beyond Turing’s “simplistic pass/fail basis,” which is why he developed “a new approach to evaluating AI capabilities based on the Theory of Multiple Intelligences.”

The AI revolution has outgrown the Turing Test: Introducing a new framework

Building a PLG motion on top of usage-based pricing

donut with pink toppings on a pink table

Image Credits: miguelangelortega (opens in a new window) / Getty Images

Last July, Puneet Gupta, a former AWS general manager who’s now CEO and co-founder of Amberflo.io, wrote a TC+ article explaining how SaaS startups can adopt usage-based pricing models.

In a follow-up, he shares four tactics teams can use to gather, analyze and leverage customer data to take the guesswork out of pricing decisions.

“When the time comes to make decisions about product packaging and pricing, the first place you turn to should be the metering pipeline for historical usage data,” he writes.

Building a PLG motion on top of usage-based pricing

Time to trust: Questions cybersecurity customers ask and how to answer them

White question mark at pink concrete grunge Wall -3D-Illustration

Image Credits: Thomas Hertwig/EyeEm (opens in a new window) / Getty Images

Putting yourself in your customers’ shoes can raise uncomfortable questions, especially for cybersecurity startups, says angel investor Ross Haleliuk.

To help teams shorten the “time to trust” interval, he asks several questions cybersecurity customers are likely to pose while evaluating vendors, along with action items that can help provide convincing answers.

“It is important to keep in mind that trust is built over a long time, but it can be lost in an instant,” writes Haleliuk.

Time to trust: Questions cybersecurity customers ask and how to answer them

Finding your startup’s valuation: An angel investor explains how

Stack of coins on a weighing scale

Image Credits: sommart (opens in a new window) / Getty Images

In her latest column, TC+ contributor Marjorie Radlo-Zandi explains how angel investors like herself establish pre- and post-money valuations.

“While assessing prospective investments, I ensure it’s a product or service that I care deeply about and educate myself about the company’s market,” she says.

“I want to see a fair valuation of the business and a well-defined market worth at least $100 million.”

Coming in hot is a great way to cut short an investor meeting. To help first-time founders avoid waving red flags, she breaks down the Berkus Method and explains why uninformed founders often seek unrealistic valuations.

Finding your startup’s valuation: An angel investor explains how

TechCrunch+ roundup: Beyond the Turing Test, 3 VCs on SVB, usage-based pricing tactics by Walter Thompson originally published on TechCrunch

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TC+ roundup: Silicon Valley Bank fails, fintech VC survey, B2B growth tools

No one can predict the follow-on effects of a moment like this. We are in uncharted territory.

I write this twice-weekly newsletter on a tight deadline, so when I saw a press release that started with “Silicon Valley Bank, Santa Clara, California, was closed today,” I realized I might need to pivot.

To protect SVB’s former customers, who have around $175 billion in deposits, the Federal Deposit Insurance Corporation (FDIC) transferred assets to a new entity: the Deposit Insurance National Bank of Santa Clara.

Insured customers who deposited $250,000 or less will have access to their money on Monday morning, according to the FDIC. Uninsured customers will receive an advance dividend in the next seven days, but beyond that, they’ll only get a certificate for the remaining balance.

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Will those customers ever be made whole? It’s hard to say: “As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.”

Silicon Valley’s favorite bank just failed. Sit with that.

No one can predict the follow-on effects of a moment like this. We are in uncharted territory.

There’s no question that this will impact dealmaking, but uninsured customers who run startups still need to buy laptops, pay cloud vendors and cover worker salaries and benefits.

I’m not a market watcher or a financial expert, but here’s some advice: panic is a luxury. If you’ve been personally impacted by this news, take a breath before making a move. Talk to some friends. Take a walk.

And don’t let fear rule the day.

Be well,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

What the flying heck happened to SVB?

Building a lean B2B startup growth stack

Hand of a scientist with a syringe injecting liquid to a plant, in an experiment.

Image Credits: Jose Bernat Bacete (opens in a new window) / Getty Images (Image has been modified)

Selecting the right tool for the job is easy when you already know exactly how to proceed.

Most B2B growth marketers don’t have a blueprint to work from, however, which is why Primer CEO Keith Putnam-Delaney shared a guest post with TC+ that identifies which tools are most appropriate for early-stage, midstage and late-stage startups.

“The current budget-constrained environment should be seen as a net positive by marketers,” he writes. “It will force teams to think deeply about what’s absolutely necessary, which tools will add efficiency (or subtract from it).”

Building a lean B2B startup growth stack

Venture firms are advising portfolio companies to move money out of SVB

Image Credits: Spencer Platt / Getty Images

“My ask is just to stay calm, because that’s what’s important,” said Silicon Valley Bank CEO Greg Becker yesterday during a Zoom call with customers.

Becker was doing damage control after SVB announced plans to sell $1.25 billion in common stock to shore up its finances after the bank acknowledged that a reduced pace of dealmaking and “elevated client cash burn pressuring balance of fund flows” were impacting its performance.

Since SVB was the bank of choice for so many startups, Natasha Mascarenhas and Alex Wilhelm spoke to several investors (on and off the record) to find out how they’re advising their portfolio companies.

Venture firms are advising portfolio companies to move money out of SVB

Q1 2023 market map: SaaS cost optimization and management

Since the downturn began, SaaS has become a game of fine margins. Startups that find the right tools to drive growth while optimizing vendor and cloud expenses can enhance short-term gross margins.

“Investors are knocking at the door to see improvements every quarter,” says Jonathan Schwartz, an investment associate at Ibex Investors.

“Simply reducing costs in lieu of growth will not work. Likewise, maximizing growth with little sensitivity around costs won’t work in 2023.”

Q1 2023 market map: SaaS cost optimization and management

New wave of VC funds show it’s time to rethink how many LPs is ‘too much’

LPs, venture capital, fundraising

Image Credits: Getty Images

Between 2015 and 2021, the average number of limited partners associated with a venture fund steadily increased.

Reporter Rebecca Szkutak spoke to VCs Haris Khurshid (Chalo Ventures) and Mac Conwell (RareBreed Ventures) to learn why some investors are starting to reject the traditional notion that fewer LPs are preferable.

“As folks are raising their first funds or second fund, it’s really hard to get institutional funds, but people can’t write big enough checks,” said Conwell.

“Ever since I did my first raise, I was thinking about how to increase the number of LPs you are working with.”

New wave of VC funds show it’s time to rethink how many LPs is ‘too many’

Pitch Deck Teardown: MiO Marketplace’s $550K angel deck

Connecting media publishers with buyers, MiO Marketplace recently closed a $550,000 angel round that valued the company at $3.6 million.

“MiO nails its pitch in a few really important parts, which is ever so delightful,” writes Haje Jan Kamps, who deconstructed the company’s 16-slide deck:

  • Cover slide
  • History slide (“Evolution of online marketplaces”)
  • Vision and mission slide
  • Problem slide
  • Solution slide
  • Opportunity slide
  • Market-size slide
  • Competition slide (“B2B SaaS for Media Buyers/Sellers”)
  • Value proposition slide 1 (“Features for buyers”)
  • Value proposition slide 2 (“Intelligence for sellers”)
  • Business model slide (labeled as “Go-to-market”)
  • Traction slide
  • Financial slide (labeled as “Projections”)
  • Team slide (“Founder”)
  • Board of directors slide
  • Contact slide

Pitch Deck Teardown: MiO Marketplace’s $550K angel deck

Dear Sophie: Last-minute H-1Bs, O-1A & EB-1A extraordinary credential prep

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

How many people are employers going to register in the H-1B lottery this year? Will there be fewer because of all of the layoffs?

Is it still possible to include additional candidates before the deadline next week?

— Fast-paced Founder

Dear Sophie,

Can I improve my portfolio of accomplishments to establish my qualifications for an O-1A extraordinary ability visa and later an EB-1A self-petitioned green card if I am in the U.S. but don’t have a work permit yet?

— Earnest & Exceptional

Dear Sophie: Last-minute H-1Bs, O-1A & EB-1A extraordinary credential prep

7 investors reveal what’s hot in fintech in Q1 2023

GettyImages 1033407190 1

Money coins in a pile

How are fintech investors adapting during this downturn, and how are they advising the founders in their portfolios?

Mary Ann Azevedo interviewed seven VCs to ask how (or if) any have shifted their thesis to fit current macroeconomic trends and learn more about the types of opportunities they’re looking for right now:

  • Charles Birnbaum, partner, Bessemer Venture Partners
  • Aunkur Arya, partner, Menlo Ventures
  • Ansaf Kareem, venture partner, Lightspeed Venture Partners
  • Emmalyn Shaw, managing partner, Flourish Ventures
  • Michael Sidgmore, partner and co-founder, Broadhaven Ventures
  • Ruth Foxe Blader, partner, Anthemis
  • Miguel Armaza, co-founder and general partner, Gilgamesh Ventures

7 investors reveal what’s hot in fintech in Q1 2023

TC+ roundup: Silicon Valley Bank fails, fintech VC survey, B2B growth tools by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Building a core AI team, Brazil’s CVC climate, remote work rituals

Approximately one in three restaurants will go out of business in its first year. For construction companies, that figure rises to 53%.

But AI projects are the real heartbreakers: A Gartner study found that 85% are destined to fail “due to bias in data, algorithms or the teams responsible for managing them.”

Unfortunately, the profound fear of missing out means many organizations are jumping into AI projects with both feet even though they don’t fully appreciate the scope of work involved.

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“The best way to ensure you are on the correct AI development path is to start your AI project without thinking about the models,” recommends Eran Shlomo, co-founder and CEO of Dataloop.

“Most of the data that the AI needs to perform at its best ability is not available to the development team,” he writes. “This creates a ‘chicken or egg’ problem: Businesses need production data to deliver a functional model, but the model needs to exist in order to go to production.”

In a post aimed at non-technical managers and senior developers, he shares a framework for building a core team consisting of data scientists, domain experts and data engineers who can build a system that can learn from its mistakes iteratively.

Via collaboration, “the AI provides automation, speed and low costs” while the team steers “the AI to a correct result in a constantly changing environment.”

According to Shlomo, working along these lines generates a machine learning data flywheel, “essentially planning a learning system rather than an AI model that works properly at a single point in time.”

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

The best way to start an AI project? Don’t think about the models

Despite the downturn, CVC gains traction in Brazil’s startup ecosystem

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Image Credits: Alex Sholom (opens in a new window) / Getty Images

Brazil’s corporate venture scene is very much in its early days, but in the last few years, companies in sectors like mining, telecom and retail have been getting into the game.

“These CVCs should be structurally advantageous for Brazil’s startup ecosystem, as it introduces a stable pool of medium-term dry powder that could reduce volatility,” says hedge fund investment analyst Matheus Tavares Dos Santos.

Despite the downturn, CVC gains traction in Brazil’s startup ecosystem

Gatik’s Gautam Narang on the importance of knowing your customer

Gautam-Narang-Gatik

Image Credits: Bryce Durbin

As the toxic train derailment in East Palestine, OH, illustrates, our brittle legacy supply chains are long overdue for an overhaul.

Autonomous vehicle startup Gatik operates approximately 40 driverless heavy-duty semi-trailer trucks on routes up to 300 miles long, connecting distribution centers with smaller hubs.

Rebecca Bellan interviewed Gatik’s CEO and co-founder, Gautam Narang, to learn more about the company’s operations, investor expectations and how a shortage of human drivers is impacting growth.

“We have not done any free delivery ever,” he says. “We have been doing commercial deliveries since 2019, meaning every trip that we have made, we have been paid for.”

Gatik’s Gautam Narang on the importance of knowing your customer

If you have more than one business model, you don’t have a business model

Four white arrows and one yellow arrow on a blue background.

Image Credits: masterSergeant (opens in a new window) / Getty Images

If your startup doesn’t have a well-defined business model — and a backup in case the first one fails — it’s unlikely to get funded.

Haje Jan Kamps defines it as “the full stack of how your company operates: How you deploy your resources (money and people) to create products and attract paying customers, and how you retain those customers.”

There’s no need to stumble in the dark: Seed-stage founders can largely rely on LTV and CAC to shape strategy, since identifying “a repeatable business model” is Job One.

“The important thing is to narrow down the focus of your business model and how you’re going to focus your attention during the sales cycle of your product,” he writes.

If you have more than one business model, you don’t have a business model

Creating remote work rituals that stick

A group of ants working as a team to form a three dimensional geometric sculpture from glue and matchsticks. The ants are dip ends of matchsticks in glue dripping from a bottle of glue and place in position to form the shape on a marble worktop.

Image Credits: peepo (opens in a new window) / Getty Images (Image has been modified)

Remote teams have a lot of flexibility when it comes to when and how they work, but adding some structure can enhance productivity and transparency without sacrificing freedom.

“Ultimately, asynchronous work only serves you when you compartmentalize phases of work with your team,” says Stefanie Palomino, chief product officer and general manager at ROOM3D.

This post offers several tips that can help managers deploy active listening techniques that foster engagement, improve communication and, ideally, reduce the number of meetings that take place.

“The routines people create are negotiated over time, but it’s something we’ve come to take for granted.”

Creating remote work rituals that stick

TechCrunch+ roundup: Building a core AI team, Brazil’s CVC climate, remote work rituals by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Ocean tech investor survey, AI and PR, L-1 visa options

Last week, the U.S. Federal Trade Commission, which protects consumers from deceptive business practices, issued an advisory titled “Keep your AI claims in check.”

When it comes to marketing, “false or unsubstantiated claims about a product’s efficacy are our bread and butter,” wrote Michael Atleson, an attorney with the FTC’s Division of Advertising Practices.

Artificial intelligence is a on everyone’s lips at the moment, “and at the FTC, one thing we know about hot marketing terms is that some advertisers won’t be able to stop themselves from overusing and abusing them.”

Given the renewed interest, “for companies where AI was previously No. 4 on the list of proof points, machine learning capabilities should merge into the main hook of the announcement,” advises PR strategist Camilla Tenn.

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“If AI-related coverage can get a new, unknown brand into its target publications today, it could help get the brand’s pitch deck in front of potential investors or partners tomorrow,” she writes in TC+.

Tenn recommends imitating major players like Google and Samsung, which have dedicated teams that release a steady stream material about “ongoing projects” tied to prevailing tech trends.

“Even if those projects don’t see the light of day, the PR team has strategically positioned the brand as ‘innovative,’” says Tenn. “With this precedent, startups should not feel abashed to use any means necessary to get their name out there.”

Good advice for marketing mercenaries, but keep those pitches straight — reporters know when we’re being sold to, and the FTC isn’t messing around.

Thanks for reading — and for making this TechCrunch’s fastest-growing newsletter last month!

Have a great weekend,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Startup PR professionals should be jumping on the AI bandwagon

How to turn an open source project into a profitable business

Machine counting twenty dollars bills

Image Credits: Juanmonino (opens in a new window) / Getty Images

Many devs rely on donations and crowdfunding to monetize open source projects, but with the proper planning, teams can leverage their work for commercial clients who’ll put them in a higher tax bracket.

Offering users customer support or consulting services are common revenue streams, according to product development consultant Victoria Melnikova, who also says devs should form partnerships and use platforms like Reddit and Hacker News to reach potential paying customers.

“To find your path, talk to your clients and understand their goals and pains.”

How to turn an open source project into a profitable business

To fix the climate, these 10 investors are betting the house on the ocean

Ships assembling a floating offshore wind turbine

Image Credits: Liang Wendong/VCG / Getty Images

Tapping the ocean for energy led to disasters like the Deepwater Horizon oil spill, which released nearly 5 million barrels of crude oil into the Gulf of Mexico in 2010.

Today, wind power and wave action are just two technologies leading investors to take a closer look at ocean conservation technology, reports Tim De Chant.

To learn more about the opportunities they’re chasing and discover how climate change is shaping their investment thesis, he surveyed:

  • Daniela V. Fernandez, founder and CEO of Sustainable Ocean Alliance, managing partner at Seabird Ventures
  • Tim Agnew, general partner, Bold Ocean Ventures
  • Peter Bryant, program director (oceans), Builders Initiative
  • Kate Danaher, managing director (oceans and seafood), S2G Ventures
  • Francis O’Sullivan, managing director (oceans and seafood), S2G Ventures
  • Stephan Feilhauer, managing director (clean energy), S2G Ventures
  • Sanjeev Krishnan, senior managing director and chief investment officer, S2G Ventures
  • Rita Sousa, partner, Faber Ventures
  • Christian Lim, managing director, SWEN Blue Ocean Partners
  • Reece Pacheco, partner, Propeller

To fix the climate, these 10 investors are betting the house on the ocean

Pitch Deck Teardown: Gable’s $12M Series A deck

Remote workspace platform Gable raised a $12 million Series A to scale up its operations, which currently serves more than 5,000 workers in 26 countries.

“Making the business of shared workspaces easier for startups certainly has its challenges, but it’s also a large and growing market,” writes Haje Jan Kamps. “Gable weaves its story together with ease.”

Here’s their 21-slide Series A deck:

  • Cover slide
  • Team slide
  • Market context slide (“The revolution of remote work”)
  • Problem slide No. 1 (“Going remote-first is hard”)
  • How people solve it now (“How it’s done today”)
  • Problem slide No. 2 (“Main Issues”)
  • Solution slide
  • Traction slide (“Where we are”)
  • Product slide No.1 (“Employee view”)
  • Product slide No. 2 (“Management and insights”)
  • Product slide No. 3 (“Host view”)
  • Traction slide (“Partnership with over 800 spaces”)
  • Value proposition slide (“Why they choose Gable”)
  • Case study slide No. 1
  • Case study slide No. 2
  • Business model slide
  • Market-size slide (“TAM”)
  • Go-to-market slide (“Scalable process”)
  • Marketing slide (“Massive channel opportunity)
  • Product road map slide
  • Thank you slide

Pitch Deck Teardown: Gable’s $12M Series A deck

Dear Sophie: What are my options for changing my status from an L-1 visa?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I started working for my current employer on STEM-OPT, but I’ve lost out in the H-1B lottery four times. Thankfully, my employer transferred me to an international office, and I am now coming back to the U.S. on an L-1 visa.

I’ve heard many complaints from my classmates about not being able to switch employers on an L-1 visa. I don’t see myself staying at my employer for six more years, which is the estimated time until I can get a green card based on my employer’s internal policy.

What are my options for changing my immigration status so I can work at a startup in the U.S. within a year or two?

— Tenacious Transferee

Dear Sophie: What are my options for changing my status from an L-1 visa?

Key legal issues for influencers and brands (and how to deal with them)

Smartphone and judges gavel on black background

Image Credits: SomeMeans (opens in a new window) / Getty Images

No one needs a mega-influencer like Serena Williams or a Kardashian to build buzz for their startup — an evangelist with just a few thousand followers can push qualified customers into your product funnel.

But before hiring a TikTok or YouTube personality, brand marketers should brush up on the laws that govern how influencers operate, and the risks associated with failing to comply.

“Novel legal issues and risks have emerged for both influencers and brands,” says Nicholas Sandy, a litigator at Pryor Cashman.

“Key, recurring issues relate to copyright licensing and infringement, disclosures and statements in endorsements, compliance with securities laws, and defamation.”

Key legal issues for influencers and brands (and how to deal with them)

Apply now to speak at TechCrunch Disrupt in September

Interested in speaking at TechCrunch Disrupt this September in San Francisco?

Submit a title and a description for the topic you’d like to talk about before April 21.

Selected applicants will have a chance to lead a roundtable discussion or participate in a breakout session followed by an audience Q&A.

Apply now to speak at TechCrunch Disrupt in September

TechCrunch+ roundup: Ocean tech investor survey, AI and PR, L-1 visa options by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Using predictive LTV, Boston VC survey, active learning for ML teams

Last fall, Voyantis CEO Ido Wiesenberg shared a TC+ post with several tactics for reducing customer acquisition costs via predictive modeling.

In a follow-up, he explains how to use predictive lifetime value (LTV) to create “more targeted, effective acquisition strategies that focus on acquiring and retaining customers.”

Adding predictive LTV to decision flows does more than just identify lucrative customers early in the sales cycle — you can also use it to set performance targets and help teams adjust campaign budgets midstream.

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“Not using predictive LTV to inform decisions is like going on a hike, not knowing where it will end and how hard it will be,” writes Wiesenberg, who says combining CAC with predictive LTV optimization balances risk and growth.

This post includes real-life examples of predictive LTV decisions that can help generate higher returns on ad spending or identify underperforming campaigns that can be stopped in their tracks.

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Using predictive LTV to juice up marketing campaigns

Going private: A guide to PE tech acquisitions

Image of a large fish going after a smaller fish

Image Credits: PM Images (opens in a new window) / Getty Images

For private equity firms in search of bargains, now is a great time to be alive.

With the IPO window nailed shut and so many public companies facing dwindling valuations, PE firms spent $226.5 billion on M&A in H1 2022, 39% more than a year earlier.

However, “success is not guaranteed,” writes Jaggaer CFO Jeff Laborde in a TC+ explainer that examines what happens in the months that follow the pre-closing period.

“M&A is a part of doing business and it’s important to recognize that the impact and disruption of a PE take-private deal may be felt for years.”

Going private: A guide to PE tech acquisitions

Biotech proved a surprisingly bright spot in 2022’s startup correction

biotech, fundraising, startups

Image Credits: Getty Images

The hard science and regulations that govern biotech companies sets them far apart from other startups.

Successfully navigating clinical trials is arguably harder than simply showing investors you can reach product-market fit, and still, “U.S. biotech deals also set new records in 2022 for both median deal size, $33.5 million, and median valuation, $38 million,” reports Rebecca Szkutak.

To learn more about why the sector has been so resilient in the face of widespread market corrections, she interviewed three early-stage biotech investors:

  • John Flavin, founder and CEO, Portal Innovations
  • Jorge Conde, general partner, Andreessen Horowitz
  • Zavian Dar, co-founder and general partner, Dimension Capital

Biotech proved a surprisingly bright spot in 2022’s startup correction

5 investors discuss Boston’s resilient tech ecosystem

Before yesterday’s TC City Spotlight: Boston event, Anna Heim interviewed five investors active in the area to learn more about the pace of dealmaking, layoffs, and other topics of interest to the local tech community.

Here’s who she spoke to:

  • Rudina Seseri, founder and managing partner, Glasswing Ventures
  • Lily Lyman, general partner, Underscore VC
  • Sanjiv Kalevar, partner, OpenView
  • Katie Rae, managing partner, The Engine
  • Russ Wilcox, partner, Pillar VC

5 investors discuss Boston’s resilient tech ecosystem

Active learning is the future of generative AI: Here’s how to leverage it

Digital generated image of silhouette of male head with multicoloured gears inside on white background.

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

The generative AI models that have made headlines and memes in recent months weren’t cooked up in someone’s garage or basement.

“Only well-funded institutions with access to a massive amount of GPU power are capable of building these models,” says Encore co-founder Eric Landau, who recommends using the iterative process of active learning to “leapfrog the AI production gap and build models capable of running in the wild more quickly.”

In a TC+ post aimed at ML team managers, he shares tactics for leveraging active learning and addresses the perennial buy-versus-build dilemma.

Active learning is the future of generative AI: Here’s how to leverage it

Apply now to speak at TechCrunch Disrupt in September

Interested in speaking at TechCrunch Disrupt this September in San Francisco?

Submit a title and a description for the topic you’d like to talk about before April 21.

Selected applicants will have a chance to lead a roundtable discussion or participate in a breakout session followed by an audience Q&A.

Apply now to speak at TechCrunch Disrupt in September

TechCrunch+ roundup: Using predictive LTV, Boston VC survey, active learning for ML teams by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Finding the right LPs, ocean conservation, inside Uber’s pre-seed deck

Will your startup go public and grab a giant slice of your market, or is it a value-add that will be gobbled up by a hard-charging unicorn?

“When you can’t quite make it to product-market fit, there’s a third choice that too many entrepreneurs, and their investors, overlook: selling out,” says Kittu Kolluri, founder and managing director of Neotribe Ventures.

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In this article aimed at early-stage founders, Kolluri shares a detailed framework with timelines that can help determine whether it’s time to look for a buyer or keep reaching for the stars.

“How can you choose? While it isn’t a trivial decision, it’s also not as hard as you might think. There are only two gates: value and growth.”

Thanks for reading TC+ this week,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Go long or go short? A VC reveals when it’s time to sell and how to maximize buyer interest

5 questions emerging managers should ask before selecting LPs

Two Wooden People Figures Communicating

Image Credits: Constantin Johnny (opens in a new window) / Getty Images

Before an emerging manager can start backing startups, they’ll first need to earn the trust of limited partners who are willing to bet on their investment thesis.

“Each step up the decision-making ladder increases the risk of dismissal, lost information or miscommunication, which can be mitigated if you can get in front of the decision-makers early on,” says Linda Greub, co-founder and managing partner of Avestria Ventures.

Drawing from her own experience, Greub shares five questions emerging managers can use “to find the investors most likely to believe in you.”

5 questions emerging managers should ask before selecting LPs

Making layoffs suck less: How to announce job cuts and retain top performers

Pink scissors pointing to toy duck. Firing, unemployment, job losses and economy crisis concept.

Image Credits: Abu Hanifah (opens in a new window) / Getty Images

Startups don’t typically have a deep bench of managerial talent, which means layoffs are often — no, usually — handled with a lack of empathy and poor communication.

More than once, it’s been my responsibility to look someone in the eye and tell them that their job had been eliminated. The “best” training I received? A 60-minute briefing with a consultant who told me I’d be fine if I stuck to the script.

Leslie Crowe, talent partner at Bain Capital Ventures, says founders who prepare a communication plan and “opt to be generous where you can” can do right by former employees and keep the trust of those who remain.

“You’re in charge, for better or for worse. This may feel like one of the worst moments in your company’s trajectory, but your team will respect you when you take responsibility for overhiring or any missteps that led to this point.”

Making layoffs suck less: How to announce job cuts and retain top performers

Is ocean conservation the next climate tech? 7 investors explain why they’re all-in

a picture of a sea lion swimming in kelp in the ocean

Image Credits: Douglas Klug (opens in a new window) / Getty Images

Seafaring industries like fishing and oil exploration are inherently extractive, but technological advances and increased environmental awareness have ushered in a new era.

“Founders and investors have started to look for opportunities to conserve, and even enhance, the ocean’s resources rather than exploit them,” reports Tim De Chant.

He interviewed seven investors to examine some of the parallels between climate tech and ocean conservation tech and learn more about the opportunities they’re diving for:

  • Tim Agnew, general partner, Bold Ocean Ventures
  • Peter Bryant, program director (oceans), Builders Initiative
  • Kate Danaher, managing director (oceans and seafood), S2G Ventures
  • Daniela V. Fernandez, founder and CEO, Sustainable Ocean Alliance (Seabird Ventures)
  • Rita Sousa, partner, Faber Ventures
  • Christian Lim, managing director, SWEN Blue Ocean Partners
  • Reece Pacheco, partner, Propeller

Is ocean conservation the next climate tech? 7 investors explain why they’re all in

Pitch Deck Teardown: Uber’s $200K pre-seed deck from 2008

The word “disruptive” gets thrown around so much, it’s lost much of its impact. But when Uber rolled out service in San Francisco in 2011, it really transformed the way people got around.

Before the transportation giant reached today’s staggering $69 billion market cap, its founders raised a $200,000 pre-seed round in 2008 to validate their notion that “Digital Hail can now make street hail unnecessary.”

Here’s their original deck:

  • Cover slide
  • Problem slide (“Cabs in 2008”)
  • Solution slide (“Digital Hail can now make street hail unneccessary”)
  • Solution slide (“UberCab Concept”)
  • Product slide 1 (“1-Click Car Service”)
  • Value proposition slide 1 (“Key Differentiators”)
  • Mission (“Operating Principles”)
  • How it works slide 1 (“UberCab Apps”)
  • How it works slide 2 (“UberCab.com”)
  • Positioning slide (“Use Cases”)
  • Value proposition slide 2 (“User Benefits”)
  • Value proposition slide 3 (“Environmental Benefits”)
  • Product slide 2 (“UberCab Fleet”)
  • Go-to market slide 1 (“Initial Service Area”)
  • Technology overview slide (“Technology”)
  • Competitive advantage slide (“Demand Forecasting”)
  • Market size slide (“Overall Market”)
  • Market segmentation slide (“Composition of Market”)
  • Go-to-market slide 2 (“Target Cities”)
  • Scenario planning (“Potential Outcomes”)
  • “Why now?” slide (“SmartPhones Aug 2008”)
  • Road map slide 1 (“Future Optimizations”)
  • Marketing slide (“Marketing Ideas”)
  • Road map slide 2 (“Location-Based Service”)
  • Traction slide (“Progress to Date”)

Pitch Deck Teardown: Uber’s $200K pre-seed deck from 2008

Dear Sophie: Domestic pilot program for H-1B and L visa stamping?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I’m in the U.S. on an H-1B, which my employer recently extended. However, I don’t have an H-1B visa stamp in my passport because I originally had a change of status from F-1 STEM OPT.

It’s been more than three years since I visited my family in India and I would love to do that now, but I worry about how long it will take to get my H-1B visa to return to the U.S.

How long will it take to get an interview for an H-1B visa stamp? Am I eligible for a visa interview waiver? How do I get one? Can I do it from the U.S. this year?

— Hungry for Home

Dear Sophie: Is there a domestic pilot program for H-1B and L visa stamping?

TechCrunch+ roundup: Finding the right LPs, ocean conservation, inside Uber’s pre-seed deck by Walter Thompson originally published on TechCrunch

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TechCrunch+ roundup: Optimizing acquisition, parental leave tips, riding the downturn express

I try to keep things fresh, so I was dismayed to realize that I’d used the word “downturn” in two different headlines this morning.

Despite the quickening pace of layoffs, there is some good news for SaaS startups: 70% of SMBs plan to increase IT spending in 2023, and the procurement process is getting faster.

According to Caroline Hogan, senior director of vendor marketing at Gartner Digital Markets, this means companies can boost growth and revenue just by studying buyer decision patterns.

“At the awareness stage, businesses are looking to solve a problem or challenge using technology,” writes Hogan.

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Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription.

“Therefore, it’s essential to clearly communicate the benefits of your product and develop use cases tailored to the challenges businesses are facing.”

For example, Gartner found that 41% of SMB customers rely on customer ratings and reviews before making a purchase.

Which begs the question: When was the last time you checked your reviews on Capterra or GetApp? Here’s a follow-up: Which methods are your sales team using to encourage satisfied customers to leave reviews?

If you don’t have ready answers, you’re leaving money on the table. (Don’t worry, I won’t tell your investors.)

“Understanding shifts in how buyers are researching, evaluating, selecting and purchasing software is critical to accelerating growth,” says Hogan, who shares several tactics for gathering actionable insights.

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

SaaS leaders: Use customer insights to accelerate growth during a downturn

5 key metrics that help edtech startups improve profitability

Edtech startups have been riding a roller coaster over the last few years.

COVID-19 school shutdowns made the sleepy sector hot overnight, but today, many companies that overhired are reducing headcount just to stay afloat.

But this isn’t a problem for the CEO to solve. Sales, product and marketing teams have multiple levers they can pull to optimize revenue, writes Roman Kumar Vyas, CEO and founder of edtech startup Refocus.

Finding ways to nudge KPIs like service-level agreements and approval rates will reveal strengths and weaknesses in your current offerings, but “these metrics can help you build trust with investors” as well, according to Vyas.

5 key metrics that help edtech startups improve profitability

5 tactics for managing paid customer acquisition during a downturn

3D Rendering Magnet and Chrome Balls

Image Credits: akinbostanci (opens in a new window) / Getty Images

When economic conditions change, companies adjust their marketing tactics. When the pandemic began, I stopped receiving almost all junk mail, but after vaccines rolled out, my mailbox was once again full of irrelevant offers.

Paid marketing is a core tactic for early-stage startups, but this downturn is a good time for founders to reexamine customer acquisition strategies, says Brian Rothenberg, an investment partner at early-stage VC fund Defy.

“Capital is more expensive now than it’s been in years,” he writes in TC+. “Where else can you invest to drive higher returns and to build a more durable competitive advantage?”

5 tactics for managing paid customer acquisition during a downturn

3 tips for CEOs planning to take parental leave

a childrens room in a classical style

Image Credits: Frank Rothe (opens in a new window) / Getty Images

The U.S. is one of only six countries in the world that lacks a paid parental leave policy.

Combine that with the fact that startup founders are praised for sleeping under their desks, and it’s easy to see why many tech workers don’t even take the 12 weeks they have coming their way after having a child.

Before giving birth, Cory Siskind, founder and CEO of Base Operations, created a plan that would let her take time off while keeping her business on track.

“Taking time off is a personal decision, but it should be just that: a decision,” she writes. “It’s an option for everyone, even CEOs.”

3 tips for CEOs planning to take parental leave

Your MVP doesn’t need to be perfect; it needs to be stage appropriate

Illustration of a businessman launching a light bulb from a cannon.

Image Credits: Nuthawut Somsuk (opens in a new window) / Getty Images

If you recall the movie “The Social Network,” Facebook didn’t launch as a place for family and friends to keep in touch: Its first iteration scraped photos from Harvard’s student directory so users could rate their looks.

When it comes to finding the MVP “for a pre-seed company, you don’t need perfect design and scalability; you need to build enough product and traction to get user feedback,” writes Haje Jan Kamps.

‘From there, you can iterate and create value for the customers.”

Your MVP doesn’t need to be perfect; it needs to be stage appropriate

TechCrunch+ roundup: Optimizing acquisition, parental leave tips, riding the downturn express by Walter Thompson originally published on TechCrunch