Bootstrapping vs Venture Capital: How To Make the Right Decision For Your Startup

If you’re thinking about starting your own business, you’re likely aware that there are many things to consider and plan for. One of the most important is funding. You need working capital to get your business off the ground, and there are a few ways to go about acquiring it.

In fact, there are two primary funding options for startups: bootstrapping and venture capital. Each one has its own pros and cons, so it’s essential to understand each before making a decision. READ MORE

VC funding is drying up. Here’s a four-time founder’s guide to surviving a market downturn

Over the past few months, the startup community has been hit particularly hard by economic uncertainty. Following unprecedented losses, SoftBank signaled that they would cut headcount and exit stakes in some of their most noteworthy investments. Leading venture capital firms like Sequoia Capital and Y Combinator have issued stark warnings to founders telling them to brace for a serious market downturn. These rare public statements are a harbinger for trouble: As venture capital funding dries up, many startups will not survive. READ MORE

Big funds ‘screwing with Series A market but not seed market’

Mike Hirshland is enjoying 2022. Despite the market’s zigs and zags, he has spent much of his time this past summer in Rhode Island, where relatives from afar have gathered on and off for an extended family reunion. He and partner Raanan Bar-Cohen were also able to close their fifth fund with $150 million in capital commitments at winter’s end — ahead of the stock market collapse that would follow. Indeed, the two now have around $375 million in assets under management at their 11-year-old venture firm, Resolute Ventures. READ MORE

Amid broader VC slowdown, investment in fintech startups drops

A new report from PitchBook Data Inc. released today finds that venture capital investment in financial technology startups has experienced a significant drop amid a broader VC slowdown.

In the second quarter, fintech companies globally raised $24.1 billion in venture capital across 1,103 deals, representing a 17.8% decrease in quarter-over-quarter deal value. The decline is the largest drop in deal value since the third quarter of 2018. Payment companies continued to lead deal value, at $7.6 billion in the quarter, but the figure was 18.7% lower than the previous quarter. READ MORE

Corporate VC is booming, but is it what your startup needs?

After a decade of easy money, startups are suddenly facing a strange new reality: funding is drying up. Global venture funding fell by 23 per cent to US$108.5 billion in the second quarter of the year – the second-largest drop in a decade. Although the figure is still higher than levels seen before the pandemic, entrepreneurs could be forgiven for feeling more anxious about their venture being starved of financial backing. READ MORE

For tech workers who missed window for IPO market riches, it’s time for a job market rethink

AI software startup DataRobot may not be a name many in the general public know, but its workers have gone through a well-known problem in the tech startup space as the market turned against initial public offerings for high-growth tech firms. Reports of internal tensions at the company included a fight over whether it should go public, and these stories were already percolating in the press before the market soured last fall and in early 2022, when the IPO market slowed to a crawl, and new offerings from old brands like Bausch & Lomb more likely to make it to the public market than hot tech companies. READ MORE

VCs Squandered Billions On Scooter Startups

Almost exactly five years ago, the scooters came. That’s when Bird, the first unicorn in this once sizzling startup sector, launched its inaugural scooter-sharing service.

The company, founded by former Lyft and Uber executive Travis VanderZanden, touted itself as a solution for last-mile transportation. In dense locales like campuses and downtowns, those willing could just click on an app and scoot happily to their destination. READ MORE

The 10 Biggest Rounds Of July

Startups in or adjacent to the cleantech space took the top two rounds of July, as investors continue to see value in the energy sector with prices rising. Despite the slowdown in venture, the month also saw five rounds go to U.S.-based startups of a quarter-billion dollars or more—so it clearly is still possible to raise big money. READ MORE

These Are The Leading States For Non-Software Startups

Geographic funding breakdowns have long been a staple of startup coverage. How much did Silicon Valley companies raise? How about the Midwest? Or what about that burgeoning Florida scene?

Until a couple years ago, this seemed like a sensible lens for looking at data. Employees at seed through mid-stage startups tended to work at headquarters. Companies that got VC funding generally spent much of it scaling up in their hometowns. READ MORE