A famous poem advises us not to compare ourselves to others, “for there will always be people taller and smaller than yourself”.
The same goes for fundraising for startups; the size of your round will be determined solely by the immediate needs of your business and the investors you work with.
“Remember that fundraising is not the goal,” says Yin Wu, three-time former YC alumnus. “Building a successful business is. “
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Use discount code Friday to save 20% on a one or two year subscription.
If you’re an early-stage founder looking for some clarification on the allocation of equity – or biting your nails about how much to raise – read this guide. It’s also a useful overview for first-time employees and co-founders who may be new to funding startups.
- How the funding works: SAFEs versus participation rounds.
- How much to increase.
- How to arrive at your evaluation.
Thanks so much for reading Extra Crunch! Hope you have a good week.
Twitter Spaces: SaaS marketing with MKT1 founders Emily Kramer and Kathleen Estreich
Join us today at 2pm PDT / 5pm EDT / 10pm London for a Twitter Spaces conversation with Emily Kramer and Kathleen Estreich, founders of MKT1, a partnership that advises SaaS startups.
In addition to their work with individual companies, they also run founders workshops, a job board, and a union run by marketers.
Emily has built marketing teams from the ground up at companies like Asana, Carta, and Astro, and Kathleen has developed and led marketing and operations teams at several high-growth startups, including Intercom, Box, Facebook, and Scalyr.
If you have an Android device or iPhone and a Twitter account, Click here to join the conversation or set a reminder:
Duolingo’s IPO could throw a golden halo on edtech startups
Alex Wilhelm and Natasha Mascarenhas take a look at recent figures from US edtech giant Duolingo.
It announced an initial price range of $ 85 to $ 95 per share, which Alex and Natasha note “feels strong”.
“If Duolingo makes a solid start, mainstream edtech startups will be able to add a golden data point to their pitch decks,” they write. “A strong Duolingo roster might also indicate that mission-driven startups can have some impressive turns. “
But if he struggles?
“The wave of mainstream edtech applications may lose some enthusiasm in going public.”
Outdoorsy Co-Founders Explain How They Expanded The Sharing Economy To Recreational Vehicles
Seven years ago, advertising director Jen Young and tech entrepreneur Jeff Cavins walked away from the careers they had built to launch Outdoorsy, a motorhome rental market.
Last month, they announced a partnership with premium camping company Collective Retreats and raised $ 90 million in Series D and $ 40 million in debt to accelerate an already impressive growth rate.
To learn more about their approach to building a transport business that caters to people looking for a taste of nomadic existence, Rebecca Bella interviewed Young and Cavins for Extra Crunch.
Their conversation explored the impacts of COVID-19, their business strategy, and why they decided to take out $ 30 million in debt financing:
Jeff Cavins: We like to look at macroeconomic trends as a business and I think US monetary policy is going to get us all in some trouble. We therefore wanted to lock in a line of credit for the company on favorable terms.
Sarah Kunst from Cleo Capital on How to Prepare to Raise Your Next Round
TechCrunch virtually met Sarah Kunst, venture capital firm and Managing Director of Cleo Capital, at our last Early Stage event. Kunst joined us to discuss preparations for raising capital in today’s frenetic fundraising environment, digging into the grainy mechanics for the audience.
This article summarizes some of the cat’s favorite snippets, starting with Kunst’s notes on how to make a killer pitch deck.
She also offered advice regarding incorporation, how to find a co-founder and when startups are too big to join an accelerator.
In an increasingly dynamic biotech market, intellectual property protection is essential
The good news for biotech startups is that investment in the sector is skyrocketing.
“Along the way, the founders will need to secure additional investments, develop strategic partnerships and avoid competition,” writes Kevin A. O’Connor, partner in the Intellectual Property practice group at Neal Gerber Eisenberg, in a guest column. “It all starts with protecting the fundamental asset of any biotech company: its intellectual property.
ServiceMax promises accelerated growth as key to $ 1.4 billion PSPC deal
Alex Wilhelm and Ron Miller got into ServiceMax, a company that designs software for the field service industry, after announcing it would go public through a PSPC.
“Overall, ServiceMax’s business has a history of growing and consuming modest cash,” they write. “It promises a big change in this story, however. Here’s how.”
Citi Ventures Director explains how and why to leverage venture capital arms like his
At our recent Early Stage event, we had the opportunity to chat with Arvind Purushingham, Managing Director and Global Head of Citi Ventures, how startups should think about venture capital arms, including what can mean a check from a company like Citi, and how to leverage that kind of goliath once it’s already a financial partner.
For founders trying to understand the benefits and potential pitfalls of working with a venture capital arm versus a more traditional venture capital team, it’s worth going through this discussion.
Robinhood targets IPO valuation of up to $ 35 billion as crypto revenues decline
Alex Wilhelm takes a look at what Robinhood’s first IPO price bracket ($ 38-42 per share) means for the US mainstream fintech giant and whether we can expect it to raise the market again. fork before its debut.
While sorting through Robinhood’s latest file, Alex noticed an aside about the dwindling volume of crypto transactions.
“Because Robinhood deals with consumers, who might decide to negotiate less on time, its future growth is more uncertain than, say, Zoom,” he notes.
Zoom-Five9 deal is a big gamble for the video conferencing company
Zoom plans to spend just under a sixth of its value on Five9, which sells software that allows users to reach customers on all platforms and record notes on their interactions.
Alex Wilhelm notes “Five9’s revenue growth rate is a fraction of that of Zoom.”
“The largest company therefore buys a turnover that grows slower than its main activity. This is a bit of a turnaround from a lot of the deals we see where the smaller acquired business grows faster than the acquiring entity’s own operations.
“Why would Zoom buy slower growth for so much money?” “
AngelList Venture’s Avlok Kohli on VC Working Capital and Busy State
Few companies have a deeper understanding of the day-to-day state of venture capital than AngelList.
According to company data, more than 51% of “top US venture capital deals” involve their platform and tools, giving them a remarkably broad view of everything that goes on.
AngelList Venture CEO Avlok Kohli joined us at TechCrunch Early Stage to discuss topics ranging from the state of the market to his thoughts on why there is suddenly so much money pouring into VC (sending ratings to heaven), and where AngelList could go from here.