Tag Archives: earlystage

Building a solid foundation for your startup can help you secure early-stage funding

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Russ Heddleston, CEO of Dropbox’s DocSend, says that as valuations fall, founders are more than ever “convinced that their company is built to survive with long-term profitability and scalability in mind. “I need to prove that,” he wrote.

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According to data from DocSend, investors aren’t looking at proposal materials as seriously as they used to. However, there is still a market for early-stage deals. “For founders, perfecting their pitch, developing an efficient sales strategy, and quickly narrowing down their product scope will lay a strong foundation for success in attracting investors.”

Thank you for reading. I hope you have a nice vacation.

Karin

Ask Sophie: Is it still easy for AI founders to get a green card?

A lone figure stands at the entrance to a hedge maze, with an American flag in the center

Image credits: Bryce Durbin/TechCrunch

Dear Sophie

I’m interested in the Biden administration’s efforts to retain AI talent in the United States. How is the government making it easier for AI companies to sponsor permanent residency for their employees? Will the number of green cards allocated to individuals in the AI ​​field increase?

— All about AI

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Cryptocurrency valuations “back to reality” in 2023, but venture capitalists expect them to rise again in 2024

Image credits: Getty Images

It hasn’t been a great year for cryptocurrency companies, but change may be on the way. Experts told Jacqueline Melinek that crypto trading is likely to become active again in 2024. “The tougher funding environment in 2023 only culled out weaker companies that were able to secure capital in 2021,” she wrote.

From Seed to Series A: Strategic Insights for Technology Founders in the 2024 Venture Environment

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A new report from Forum Ventures provides a good look at the current state of early-stage B2B SaaS investing.

While the data may be discouraging, the silver lining is that rounds are still being made and companies that find product-market fit will likely scale up in the next few years, likely in the next bull market. “This means they should benefit,” wrote the CEO of Forum Ventures. Managing Partner Mike Cardamone.

Source: techcrunch.com

Previewing the 2024 Early-Stage Agenda: Engine Accelerator, Y Combinator, Glasswing Ventures and Others Head to Boston – TechCrunch

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TechCrunch Early Stage returns to Boston on April 25, 2024, and the agenda for our flagship Founders event is taking shape. We’re excited to give you a sneak peek at some of the amazing speakers and sessions we’ll be attending. For builders just starting their startup journey, TechCrunch Early Stage is the place to be.

With the help of a large body of leading investors and entrepreneurs, we take a deep dive into founder-focused topics such as:

  • How to use Startup Accelerator.
  • How to raise your first funding.
  • How to find product-market fit.
  • How to make a killer pitch deck.

But wait. In addition: Want to join us for more speakers and sessions announced in the new year? Apply for content by the January 10th deadline for a chance to win a roundtable slot on TechCrunch Early Stage there is.

Early Stage is different from other TechCrunch events. Instead of panel discussions or fireside chats, speakers present on their assigned topics and answer questions from the audience. If you’re building something and want access to the brains of top startups, we’re working around the clock to introduce them to you. As always, all attendees will receive a transcript and visual assets of the presentation so they can take away what they learned.

Also, if you’re a talkative type, you’ll enjoy roundtable discussions and lots of time interacting with other founders, builders, and investors.

You’ll have a lot of questions in the early stages, and we’re here to answer them. Please come to my favorite TechCrunch event in Boston on April 25th. It’s similar to Disrupt, but incredibly focused and much more intimate. See you soon!

TechCrunch 2024 Early Agenda Preview

Working hard for $1 million in ARR: Best practices for learning fast from your launch partner

and Rudina Cecelico-founder and managing partner, glasswing ventures

Once you secure a seed round, the race begins to prove product-market fit and grow your ARR (Annual Recurring Revenue). With the clock ticking, limited seed dollars, a difficult macroeconomic environment, and the bar rising to secure the next round, founders’ margin for error is slim and execution is critical. In this session, we’ll dive into the best practices for rapidly iterating on lessons learned from launch partners (such as early customers). Learn how to ask the right questions, get actionable answers, respond effectively, and avoid idleness at this critical juncture in your company’s growth.

Choosing the right accelerator or incubator

and emily knightpresident, engine accelerator

Incubators and accelerators often provide a support structure for early-stage startups. Founders transitioning from academia often seek assistance in defining the potential commercial viability of their research, so specific programs are often tailored to their unique needs. Founders from academia face unique challenges stemming from higher education and national research institutions. Choosing the right startup program can help young companies navigate the known hurdles of founding. Here’s what you need to know today.

5 ways to ruin your VC pitch and how to avoid it

and Haje Kampspitch coach, Kamps Consulting LLC

Whether you’re just staring at a blank slide deck or fine-tuning your pitch, this can’t-miss session will provide you with valuable insights and help you avoid some of the biggest pitfalls. Haje Kamps, TechCrunch’s friendly in-house pitch coach, writes his 75+ pitch deck deconstruction articles on TechCrunch+. He is a source of knowledge in the art of pitching early stage startups to venture capitalists. With Haje’s expertise in analyzing and enhancing pitch decks, this session promises to be a treasure trove of practical advice and strategies.

How to earn money and live

and Tom Bromfieldgroup partners, Y combinator

Raising money in the first round is tricky. Especially if you don’t want to look back years from now and regret your terms of service or side letters. In this session, Tom explains how investors think, common pitfalls that may come up later, and how to put your company in the strongest possible position to raise capital. After all, who would want to participate in his game of 2024 fundraising hanger with old information?

Early stage financing: convertible notes, SAFE, series seed financing

and rebecca lee whitingFounder and Fractional General Counsel, epigram legal

Learn from early-stage fractional general counsel about various financing mechanisms for early-stage companies, including convertible notes, simplified agreements for future equity (SAFE), and series seed financing rounds. This session will highlight the pros and cons of these alternatives, demystify standard terms, highlight potential pitfalls to avoid, and suggest key points to consider when negotiating.

TechCrunch Early Stage 2024 will be held in Boston on April 25th. Join other emerging founders and bring your questions, get answers directly from industry experts, and learn the next steps you need to take to build your startup. But if you buy your pass now, you’ll save at the launch price!

Is your company interested in sponsoring or exhibiting at TechCrunch Early Stage 2024? Contact our sponsorship sales team. Please fill out this form.

Source: techcrunch.com

Early-stage investors respond to increasing challenges in securing Series A funding

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Lightspeed Venture Partners officially moves forward with scaling efforts as other companies make similar moves

Connie Loizos

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hurdle Series A funding has increased significantly compared to a year ago, and investors in seed-stage companies are having to react.

If they want their startup to survive, they don’t have many options. When the market suddenly changed in the spring of 2022, late-stage companies were the first to feel the pain. But that downward financial pressure has also recently affected newer companies, resulting in lower valuations in subsequent rounds, up from 1.6x in the second quarter to 2013, according to Pitchbook data. This is the lowest value since the third quarter, making selection difficult. Series A investors with plenty of options.

There are countless ways VCs can get creative on this front. European venture firm Breega touts a “scaling team” to back many of its seed investments. Pear VC, a Bay Area-based seed-stage venture firm, continues to roll out new programs to support and educate the early teams it supports.

Even larger, more agnostic companies are doing more to show they’re responsive to today’s market. For example, in October, investment firm Greylock launched Edge, a three-month company-building program “aimed at taking selected pre-idea, pre-seed, and seed founders from launch to product-market fit.” It started.

VC powerhouse Lightspeed Venture Partners is also stepping up its efforts. The company has long written early (and in some cases first) checks to startups, including the messaging app Snapchat. application performance management company AppDynamics (acquired by Cisco just before his IPO); and publicly traded cloud computing company Nutanix (current market cap: $11.2 billion).

The company says it has long focused on polishing these rough diamonds. Still, given the rising standards for Series A investors overall, Lightspeed told TechCrunch that some of the mentorship the company has provided to portfolio companies for years will be extended to company-building for founders. He said that he decided to make it official through the program. launch.

The idea, led by partner Luke Betheda, is not to attract more founders to Lightspeed, but to pave the way for already-funded startups to advance to Series A rounds. It is said that Betheda explains that almost everyone faces the same questions and obstacles. “They need to know: How do I get a business up and running? How do I hire and build a core team? Build product strategy through customer interviews and build partnerships. How can we design and drive revenue?”

Going forward, Lightspeed hopes to answer these questions more systematically through expert-led workshops, seed “playbooks,” and other toolkits Lightspeed offers through new programs.

Certainly, any help, no matter how small, is greatly appreciated at this time.

While many startups simply disband, at least 3,200 According to data compiled by Pitchbook for the New York Times, venture-backed U.S. companies are expected to go out of business in 2023, but companies that focus on year-over-year growth and annual recurring revenue are realistic. Some companies think they won’t go out of business any time soon.

At this time, it also includes a Series A stage.

“In 2020, 2021 and towards the end of 2022, we went through a period of tremendous market excitement, where there was a sense that gravity was non-existent,” Benchmark VC Sarah Tavel said at TC told. At an event earlier this month, she spoke about the changing landscape of Series A funding.

“Now we’re back to the point where everyone realizes that the job of building a company is really hard. You have to have great direction for your customers. You have to have incredible direction to the fundamentals of the business you are in.”

Mr Tavel said: “It’s not just the cosmetic metrics, the top-line numbers, that get a lot of people confused. [succeed] It is what generates profits and cash flow. ”

Source: techcrunch.com

Playground Global secures $410 million Fund III for early-stage deep tech investments

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playground globalThe renowned early-stage venture capital firm has brought $410 million in capital commitments to Fund III to invest in early-stage deep technology and science companies. With this new fund, Palo Alto-based Playground will have more than $1.2 billion of his assets under management.

Co-founder and general partner Peter Barrett started his career as an engineer (a video game engineer, to be exact) before becoming a venture capitalist.Interesting fact about him — he still codes every day and is touted give Elon Musk his first job.

Barrett is surrounded by similarly tech-loving general partners Jolie Bell, Matt Hershenson, Bruce Leake and Laurie Yolar, all with similar deep scientific and operational backgrounds. I have.

Together, they are attracted to companies creating next-generation technologies across the computing, automation, infrastructure, logistics, decarbonization, and engineered biology industries.

Similar to the $500 million Fund II raised in 2017, Fund III’s capital deployment will focus on seed and Series A companies with initial investments of $1 million to $20 million.

Playground is often an early or first investor, and Barrett told TechCrunch that the company “believes that only a few transformative companies are born every year.” Examples of exits from the company’s portfolio include MosaicML, which was acquired by Databricks in June for $1.3 billion, and the company that will enable Elon Musk to print the Raptor engines to power Starship, which will be announced in 2021. Includes listed Velo3D.

TechCrunch spoke with Barrett via email about how the funding landscape has changed since his last round, the lessons he learned investing in deep tech, and what he looks for in startups.

The following has been edited for length and clarity.

TC: Playground last raised funding in 2017. What was the funding environment like this time around?

P.B.: The macro environment is difficult for everyone, but when I meet with investors from around the world, they avoid fads and trends and instead focus on companies and industries where real and lasting value is being created. I said I was trying. A company with excellent durability and defense.

The new fund and the raising of several of our companies have proven that there is never a bad time to invest in great companies, especially in a down market, with investors flocking to quality.

We have received significant support from our existing investors and also used this opportunity to invite new investors. Fund III expanded its LP base to include endowments, foundations, single-family and multi-family offices.

What is unique about what Playground offers to startups?

We are an early stage venture capital firm and have been true partners in our companies since our inception. When you talk to our entrepreneurs, you’ll find that they consider us both investors and co-founders. We have the unique superpower to take on and eliminate technology risks, and can leverage the roadmaps we develop to identify best-in-class emerging technologies.

And because we don’t invest in competing companies, there’s a real sense of camaraderie within our portfolio. We were introduced to several new portfolio companies by the founders of Fund I and Fund II. In addition to our platform services, our 70,000 square foot studio is home to many of our portfolio companies and other non-competitive startups deep in the tech space.

Tell us about the pivot from consumer to deep tech. What led to that decision?

When we founded Playground, our team was assembled with the goal of helping both consumer technology and deep technology companies develop. It was clear early on that our superpowers were not reading the market risk tea leaves and were taking on technological risks. By focusing on deep technology and investing in roadmaps that guide our investment decisions, we have captured an undeserved share of the world’s most innovative companies.

What did you learn from diving into deep technology?

Since we founded Playground, we have invested in deep technology companies. PsiQuantum was one of our first investments. We have learned that everything is impossible until it happens, and that the combination of prudent capital and brilliant, tenacious people can move civilization forward.

What areas of deep tech are you interested in, and which areas do you tend not to invest in?

By taking on chemistry, biology and computing as a first-principle approach, we can invest in breakthrough companies across next-generation computing, AI/automation, infrastructure, artificial biology and decarbonization. .

There is no contradiction between the resulting technology investment and significant returns. We are attracted to companies that can build large technological moats and enter markets where they are clear category leaders. We follow the roadmap and don’t surf the zeitgeist.

What do you look for in a startup?

We look for testable hypotheses that address important problems with a plausible path to success. We are not looking for potential solutions to problems. We look for solutions that bring together the right ideas, the right people at the right time.

How many investments have you made from Fund III so far?

Playground has already made several investments from Fund III including d-Matrix, Ideon Technologies, Amber Bio, Infinimmune and Atomic AI, in addition to other portfolio companies operating in stealth.

We believe that our companies, operating in stealth, are well-positioned to revolutionize green metal production and provide the foundation for the next generation of semiconductor manufacturing.

d-Matrix, whose Series A was led by Playground, secured an oversubscribed Series B round of $110 million announced in September, and has already raised another round. The company is building the next generation of AI hardware through an in-memory computing platform focused on inference in the data center.

Given your past relationship with Elon Musk, what do you think about his stewardship over X, Tesla, etc.?

We all wish Elon would focus more time on electrifying the Earth and sending rockets into space.

Source: techcrunch.com