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.
Sometimes, due to the nature of the starter game, we index too much into “what’s new”. Companies want to build for the pain point you never dreamed of disrupting; Venture capitalists want to invest in an emerging trend before it becomes a household name; and those who get into technology are told to lean into your seriousness, because you never know who will respond to your cold email. For entrepreneurship to feel exciting and welcoming, not even to be, but to be felt, newness must be one of its strongest characteristics.
After all, you can only be “it” once.
But one question I’ve asked myself over the last year, especially as some of the most headline people talk about past recessions and the lessons of cyclical learning, is the newcomer advantage. It’s partly obvious: when you’ve done this whole entrepreneurship thing before, you understand what mistakes to avoid and you know exactly which investors to dodge.
But it’s also partly not so easy of a story. There’s a difference between being new and inexperienced, just as there’s a difference between being experienced and being late. How do you know where you are in that entire timeline, especially when stories feel better to tell at the ends?
This week in Equity, I interviewed T2 co-founder Sarah Oh, who is building a Twitter rival after working at Twitter as a human rights adviser. Quickly, I asked him how building a copycat of your former employer makes you feel. She seemed calm, to which I quickly said: All’s fair in love and moderation.
But the best answer Oh gave me was about the latecomer advantage he has, building a company in a world he knows very well. By joining the social wave of consumers today, before anyone even thought of characters and retweets, the co-founder believes they can take more nuance into account.
“We know a lot about the gaps in trust and security in the industry, whether it’s data sets that we need, or models that need to be built, or certain standards that need to exist for models, right, there’s a whole list of things that I wish to have in my previous roles that just didn’t exist, we’re now in a place where we can have those conversations,” Oh said. She added that when some of the first social media platforms were created, there were “no historical case studies or precedents” for many of the controversies that exist now. With some of the ugly out of the way—my words, not hers—T2 has examples you can refer to on how to handle tensions around virality, doxing, and more.
It just made me think of that broader understanding along with the agility of a startup. Perhaps being both old and new could be the surprising balance that helps get a startup off the ground. In this case, we have no idea how the old or new attempts at Twitter are going to work, but we know that this time has never mattered more.
In the rest of this newsletter, we’ll talk about inspirational directors, growing startup accelerators, and a rare rumor we hear about a tech company and its public market desires. As always, you can follow me on Twitter either instagram.
Goodbye Inspiration Director
Also in Equity this week, the team discussed how VCs are going to pay more attention to how portfolio founders spend capital, especially around hiring trends. Becca’s latest for TC+ (use code EQUITY for 50% off an annual membership) explains why the pitch deck hiring slide will no longer be a disposable part of the presentation.
Expect more scrutiny.
Here’s why this is important: We know that companies are cutting staff to cut costs, but those that are hiring may need to take a more conservative approach to both role types and pay level. All to say, there’s definitely an opportunity to find talent if you’re hiring. But it won’t be easy for all laid off talent to find their next jobs, especially as employers look to hire cheaper talent with less ambitious staffing targets.
Image Credits: MicroStockHub (Opens in a new window) / Fake Images
Goldilocks’s trip to the moon
NextView Ventures has launched its fourth accelerator program, with the goal of supporting half a dozen founders with $400,000 in funding and mentorship opportunities. It also offers at least one position to a team made up of former colleagues who have been laid off during the last recession.
Here’s why this is important: Accelerator partners are open to backing founders, even if they have a half-baked idea or just one area they want to go deeper into. Even in a more disciplined marketplace, there are some companies that are still comfortable seeding ideas rather than full business ideas. “It’s almost half a step earlier than we normally think of in portfolio companies,” Rob Go, a founding partner at NextView Ventures, said of the cohorts.
Image Credits: Land (Opens in a new window) / Fake Images
monitoring
Stripe is looking for a way out, finally. The payments giant has set itself a 12-month deadline to go public, either through a direct listing or by seeking a private market transaction, such as a fundraising event and public offering, according to sources familiar. with the matter.
Here’s why this is important: I mean, should I state the obvious? Public marketplaces for tech companies have been outdated, unwelcoming, insert boring adjective here. If Stripe starts a trend, we’re in for an exciting year ahead. But some are iffy on the timeline. After all, it’s literally easier said than done.
Image Credits: masik0553 (Opens in a new window) / Fake Images
Etcetera etcetera.
Spotted on TechCrunch
What we thought was happening with robotics investments is definitely happening
App downloads stagnated in the fourth quarter, according to a new analysis
So call them ‘robots’
Strava acquires Fatmap, a 3D mapping platform for the outdoors
LastPass owner GoTo says hackers stole customer backups
Spotted on TechCrunch+
Current legal cases against generative AI are just the beginning
A VC’s perspective on deep tech fundraising in Q1 2023
As activist investors take aim at Salesforce, what’s next for the CRM giant?
Fired from your crypto job? This is what founders look for in new talent
Startups should expect increased scrutiny from VCs on their hiring plans
I’ll end with the perennial reminder that I love going to startup happy hours and VC dinners in San Francisco, so let me know if you’re releasing one! And if you’re still working on your social engine like I am, I’m always up for a 1:1 coffee chat or dumplings lunch.
To the rest of you, thanks for reading as always. 2023 is already flying by, isn’t it?
Talk soon,
