How Founders Should Manage Burn Rates

Managing burn rate is a critical aspect of running a startup, especially in a recession or protracted economic downturn. The market has shifted and so have investors’ expectations. It’s no longer a game of growth at all costs — sustainability, profitability and efficiency are the new key performance indicators catching the eyes of investors. READ MORE

It’s No Lie: Startups Fighting Disinformation Are Raking In Cash

If you spend time online, then invariably much of it goes toward consuming lies and half-truths. Even if you are good at filtering these things out, it’s likely others in your circle are not.

As we well know, misinformation has consequences. Hard-earned money evaporates in get-rich-quick scams. Patients reject proven therapies in favor of quack cures. And targets of false smears contend with long-term reputational damage. READ MORE

Private Equity Losses Expected To Crush Pension Plans In 2023

Disappointing private equity returns in 2022, and the lag in reporting those returns, may represent a threat not just to investors, but to pension plans’ ability to pay retirees in 2023. More specifically, private equity returns are typically reported with a lag of up to six months. This means that the degree to which pension plans are currently funded (or more correctly, underfunded) likely does not reflect potentially large losses incurred in the difficult second half of 2022.

This issue is especially important because private equity comprises about 11% of the assets of public pension portfolios, per a 2022 study by the American Investment Council, which analyzed 176 public pension funds representing more than 30 million public sector workers and retirees.  READ MORE

How to think about your business model as part of a VC pitch

Startups usually run at a deficit while designing and building the product. But companies are designed to make money, and over time, as unit economics and customer acquisition costs improve, you’ll probably tip into the blue. Maybe. Hopefully.

At the very least, that’s what your investors will be betting on. So that means your business model slide needs to paint a picture that shows where you’re at now and how the business can grow over time. READ MORE

Venture World Watches As SEC Moves To Regulate Industry

The Securities and Exchange Commission and venture capitalists have traditionally lived in two different worlds, but if a new rule from the regulatory agency advances, VCs could find their world under increased scrutiny.

Nearly a year ago, the SEC started looking at adding regulations around how private investors — think private equity firms, hedge funds, some real estate investment companies, and yes, venture firms — vet deals. READ MORE

Bankers with exploding offers are battling for private equity jobs

It's private equity recruitment season in Europe and America. This time last year, major private equity firms in America were camped out in hotels in New York City, interviewing candidates through the night. One year on, a chill wind is blowing, but private equity firms are pressuring candidates all the same. 

"The private equity recruiting cycle is continuing and firms are giving out exploding offers in the usual way," says Anthony Keizner, a partner at Odyssey Search Partners in New York. At top firms like KKR and Blackstone, this typically means candidates have just 24-hours to decide whether to accept, or not. "Candidates aren't allowed to sit on offers because there's a big opportunity cost to losing out on other candidates if the candidate with an offer decides not to accept," Keizner explains. READ MORE

How to raise funding beyond Silicon Valley

Once upon a time, if you wanted to build a tech startup, you relocated to Silicon Valley. Full stop. While there’s no disputing SV’s place and continued prominence in the startup world, today’s early-stage founders have more geographic freedom and funding options than ever before.

While that’s certainly a good thing, it’s still far from easy — especially when you’re facing economic headwinds. This is why we’re excited that Mark Crane, a partner at General Catalyst, will hold forth at TechCrunch Early Stage on April 20 in Boston, Massachusetts. READ MORE

Even in these times, smart startups can get funded. Here’s how

There was a moment last spring when startup founders across the globe experienced a sudden collective whiplash. It was the Great Venture Capital Reset of 2022, when fundraising activity screeched to a halt after running fast and hot for the longest bull market in VC history. Untold numbers of in-progress funding rounds sputtered in the process, and every startup that had planned to raise in the second half of 2022 found a very different market waiting for them. READ MORE

Kansas City Chiefs Look For Big Win — In Startup Investing

Kansas City, Missouri, may have BBQ and jazz, but it still has a relatively small startup ecosystem when it comes to venture investment.

The Heart of America’s tech scene can’t quite match the startup environment of its Super Bowl counterpart Philadelphia. Last year, VC-backed startups in KC raised just under $160 million in about two dozen funding rounds, according to Crunchbase data. In 2021, that number was only $70 million in 27 rounds. READ MORE

Why Your ‘Private Markets’ Strategy Is Really Just One Big Equities Play

Investors struggle with diversification, and it’s logical to wonder why it’s such a difficult goal to achieve. The hard truth, however, is that investment decision makers are compelled to chase short-term performance because it’s the measuring stick for how they themselves are judged. In recent years, that has led to investors piling into alternatives – to the point that from one perspective, alts are akin to very expensive beta. READ MORE

Traditional Venture Capital Model is Turned on its Head with Launch of In Revenue Capital

In Revenue Capital, the first operator-immersive capital firm focused on early-growth investing, today announces its official launch. Founded by serial entrepreneur Justin Gray and sales & marketing expert Josh Wagner, the new firm is setting out to fix the broken venture capital (VC) system. Unwilling to accept the fact that only 8% of all funded startups actually return invested capital, Gray and Wagner are creating a reality in which founders have not only the funds, but also the guidance needed to grow and succeed. In Revenue Capital plans to make eight to 10 investments in the next 12 months. READ MORE

Chip Stocks Are Down, But Pockets Of Semiconductor Startup Funding Still Robust

For the semiconductor space, these are not looking like the best of times.

Intel stock plummeted to its lowest point in over five years Friday, following a disappointing earnings forecast predicated on slowing PC demand and sinking profit margins. The news follows several downward-trending quarters for big U.S. chipmakers, with Nvidia and Advanced Micro Devices also well below last year’s peaks. READ MORE