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 get this delivered to your inbox, sign up here.
It seems that technology forgot its umbrella. For example, she remembered to pack her water bottle, wear the right shoes, and layer up, but when it was time to officially step out, and say, face the year ahead, she realized a waterproof hoodie wasn’t enough. . She needs an industrial umbrella.
You know what I mean?
This is what I’m dancing, or, erm, writing, around. It appears that the macroeconomic environment has been reasonably volatile over the last year; and were yet seeing businessmen react to the market as if it had just knocked on their door, tripping them up and proceeding to rob them of all their belongings. I’m not saying that the founders and investors should have perfectly predicted what the first quarter of this year should look like; I wonder how long we will have “the economy” as a catalyst for tough decisions.
What finally makes a CEO quit? What finally gets a company to carry out its third round of layoffs? Is it the economy, or is it a uniquely human decision that comes just months after you’ve been told to grow at all costs? When we talk about pivots and layoffs, I think it’s important to talk about the realities of change to cope with the new normal. Abstractions like the economy are simply collapsing now that it’s been more than a few months since the markets have been grey.
I guess what I’m trying to say is that you could probably leave your house during a drizzle and end up at the grocery store a little damp. If you forget your umbrella during a downpour, well, now you’re drenched and no one feels too bad for you. Do not forget them and, better yet, wear them with pride.
Can you tell it’s been raining on the east coast? Follow me in Twitter either instagram by other mediocre metaphors and thoughts. In the rest of this newsletter, we’ll talk about a fresh new hedge fund that isn’t afraid to talk about privilege or honesty.
G on G
I spoke with Sophia Amoruso, the founder of Nasty Gal and Girlboss, about her new venture fund for founders, Trust Fund.
It is launching with a goal of $5 million, aiming for a check size between $50,000 and $150,000. You’ve already gotten checks from who’s who in tech. Notable investors include a host of a16z partners such as Marc Andreessen, Andrew Chen and Chris Dixon, as well as entrepreneur Ev Williams, icon Paris Hilton and backing investors Ryan Hoover and Sarah Kunst of Cleo Capital.
Here’s why this is important: It’s his high-profile and difficult experience in the Silicon Valley spotlight that has finally given Amoruso the operating experience needed to launch his own venture firm. While he’s opening up a $5 million allocation to accredited investors outside of his network, he said from a portfolio-building standpoint: You’re not necessarily looking for “diamonds in the rough” or a specific diversity quota.
“I plan to invest in men and women and everything else. And if anything, why not invest in the privilege and ride the coattails of a guy? Amoruso said. “As a woman, why wouldn’t you want to invest in a man’s advantage? Feel free to post that, it’s true.”
Image Credits: emily malan
Gas
Discord has acquired Gas, a compliment-based social media app for teens. Reports Amanda Silberling:
On Gas, users register with their school, add friends, and take surveys about their classmates. But survey questions are meant to boost user trust rather than damage it. Teens can be asked to choose which of four friends is the best DJ or has the best smile. The chosen person will then receive an anonymous message with their compliment, sent by a vague “boy in 10th grade” or “girl in 11th grade.”
Here’s why it’s important: When Clubhouse first rose to prominence, investors and founders alike were excited by the opportunity to innovate in the consumer social space. Since then, Clubhouse has been through its share of struggles (listen to my episode of Equity with the CEO here), but so has Twitter. I think the early departure of Gas and the large number of similar apps already on the site can bring some much-needed optimism to the conversation.
Image Credits: Bryce Durbin/TechCrunch
monitoring
I have covered Clearco, formerly known as Clearbanc, for years. Like many, the Toronto-based fintech had a particularly volatile 12 months. But this week truly marked the end of an era, with co-founder Michele Romanow stepping down from her position as CEO of the tech unicorn.
Here’s why it’s important: Clearco has suffered numerous rounds of layoffs due to the pandemic, including a cut that affected 25% of staff. Also, in 2022, the Toronto-based fintech saw its other co-founder, Andrew D’Souza, step down as CEO to be replaced by Romanow. Now, both co-founders will assume the positions of executive presidents.
“We never lie, we are under the same pressures as any other company to become a profitable business. And so we continue to make the tough decisions…and continue to be ahead of the curve,” Romanow said in an interview with TechCrunch, explaining the change.
Image Credits: Javier Zayas Photography (Opens in a new window) / Fake Images
Etcetera etcetera.
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With that, I’m off to enjoy a weekend in Philly with some old and new friends. Is anyone else tired of my East Coast tour? Not? Just me? I’ll be back in San Francisco and your inboxes soon.
Take care,
