Welcome to Startups Weekly, a nuanced take on this week’s startup news and trends by Senior Reporter and co-host of Equity Natasha Mascarenhas. To receive this in your inbox, subscribe here.
Towards the end of 2022, several employers, some citing Elon Musk, told me that they will bring back an in-person work culture the following year to help promote productivity and, in some cases, loyalty. One founder even told me over fancy drinks and snacks that they weren’t worried about losing talent to begin with, because those who leave just because there’s an in-person mandate weren’t really mission-driven to begin with.
While some founders are clearly determined to return, others are confused. There’s the argument, sometimes coming from venture capitalists desperate to see portfolio companies succeed, that being in person will help increase productivity and ultimately the bottom line. And there’s also the counterargument that remote work allows for more inclusive and expansive hiring, which could also help, well, the bottom line.
And if 2023 isn’t the year of the bottom line, I don’t know what else could be. Kruze Consulting, a start-up accounting firm, analyzed the financials of more than 750 companies, including more than $300 million in quarterly revenue and more than $750 million in quarterly expenses. I spoke to Healy Jones, who is in charge of financial planning and analysis at Kruze Consulting, about his findings, and he says the results offer some balance to the discussion.
To read more about their findings, read my TC+ column “Data Suggests Value for Startup Offices.” In the rest of this newsletter, we’ll talk about loud venture firms, Salesforce spinouts, and Artifact. As always, you can follow me on Twitter either instagram.
the wrinkle
On paper, venture financing appears to be back. The flurry of new funding gives me and, more importantly, the founders, the feeling that the VCs are back in business and ready to write loads of checks. But one could argue that new VC fund announcement dates, like the phrase “oversubscribed,” don’t mean much in practice.
Here’s why this is important: There are many reasons why all dry powder isn’t as edgy as we’d hope. While new fund announcements are certainly exciting, the fund may already be partially invested and investors should make capital calls before writing those checks. The signal to watch out for is less about new money coming into the venture space and more about why this VC firm is announcing its fund now, sooner or later. What is the argument to show that you are playing offense right now? I imagine it’s more complicated than “business as usual”.
Image Credits: Getty Images/dane_mark/DigitalVision
Sales force, sales fund
Firsthand Alliance, led by solo investor Simon Chan, is a venture firm seeking to capitalize on Salesforce. Here’s how: The company, which closed on a $25 million debut investment vehicle, secured investments from 21 founders acquired by Salesforce, while Chan himself built the company that he says is the foundation of Einstein’s initiative. artificial intelligence in all Salesforce businesses.
Backed by alumni and advisors, the firm hopes to help early-stage startups gain additional support and, of course, fresh capital.
Here’s why it’s important: Mob funds can be exclusive, both in which LPs are invited to the table, and in which companies get funding. In a statement to TechCrunch, Chan said the company’s investment scope goes “beyond the Salesforce app ecosystem” and that founders don’t need to be Salesforce alumni to be considered. Right now, 35% of the Firsthand Alliance portfolio is founded or co-founded by women, and 50% of the portfolio is co-founded or founded by people of color.
Awesome. And, well, interestingly timed considering both the layoffs and the tensions seeping in from the mothership as we speak. Perhaps now is the time to capitalize on the changes occurring in the old grounds?
Image Credits: Bryce Durbin/TechCrunch
monitoring
There’s nothing like a good comeback story to follow, right? The co-founders of Instagram are back with a new social app, looking to make news consumption easier and smarter. The startup, Artifact, is accepting people on its waiting list as we speak.
Here’s why it’s important: Artifact is looking at a controversial business because it has to do with news consumption, control, algorithms and, no offense, easily persuaded consumers. If you’re in awe of all the potential problems that can arise from this company, you’re not alone. We talk about the news and why we’re hopeful anyway at Equidad.
Image Credits: Screenshot of the artifact via The Verge (Opens in a new window)
Etcetera etcetera.
Spotted on TechCrunch
Car-sharing SPAC Getaround lays off 10% of staff
Car sharing platform Getaround receives a delisting warning from the New York Stock Exchange
There are still robotics jobs to be found (if you know where to look)
Apple shares fall on rare profit loss
Coinbase Asset Recovery Tool Just Saved My Bacon
Spotted on TechCrunch+
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This was one of those weeks that was filled with energizing conversations with entrepreneurs, both seasoned and new, who remind me how ambitious global technology is. Even with the obstacles techies face from quite possibly every angle, it’s rejuvenating to see how the hope of an idea can go beyond reality.
On that serious note, always,
