Welcome to Startups Weekly, an in-depth look at this week’s startup news and trends by the Chief Stock Correspondent and co-host. Natasha Mascarenhas. To get this in your inbox, subscribe here.
The guiding principles of technology aren’t too hard to find these days: discipline, focus, and keeping cash. But I’ve always found these same points particularly at odds with what it means to be an early-stage founder projecting your vision: You have to have Elon Musk-level ambition, big dreams, and the ability to sell a company to investors before there’s any real metrics behind it.
In some ways, it’s the investor’s job to figure out why he should say yes anyway. On the other hand, an economic downturn is making early-stage founders turn professional sooner and faster; Philosophically they sound more like a late-stage company pitching for a C-Series than a boisterous initial seed.
I’ve noticed little things about how early-stage founders have changed their offering, which suggests that checks are currently less about Christ and more about monetization.
Read the rest of my column on TC+: “Founders Change Their Bid.”
In the rest of this newsletter we talk about AI attribution, layoffs, and modern entrepreneurship. As always, you can follow me Twitter Or Instagram to continue the conversation. If you’d like to support me additionally, subscribe to my super free Substack.
We’re already starting to see AI as a factor in tech layoffs
Layoffs are almost a daily occurrence during this news cycle—I’ve covered Chief and Clubhouse layoffs within an hour of each other—but the reasons behind each layoff often lack specifics. Dropbox surprised me. CEO Drew Houston, who laid off 16% of employees this week, referred to the “age of artificial intelligence in computing” in terms of the layoffs. “For many years we have believed that artificial intelligence will give us new superpowers and completely transform cognitive work. And we have been building towards this future for a long time, as this year’s product line will show.
Here’s what you should know: I expect there will be more redundancies in the workforce attributable in part to AI. It’s nothing new: the worry I hear most about AI is its ability, or intention, to replace everyone’s jobs. Breaking out of this pattern is getting plenty of shots: Harvey AI, powered by Sequoia this week, is a buzz around tech dinners for its presentation on promoting lawyers.
Image credits: Techcrunch
Venture down
TC’s Mary Ann Azevedo broke the news this week: “Fintech-focused Anthemis Group is laying off 28% of its staff as part of a restructuring.” She said, “Anthemis declined to provide more details about its strategy going forward, instead directing me to this blog post from co-founder Amy Nauiokas. In the post, Nauiokas writes that the company aims to “translate the 2022 account in private markets into a permanent change in structure and method.” Investing in the early stages.
Here’s what you should know: We don’t see layoffs very often, although I feel like a lot of them are ghosts these days. The cuts will continue – perhaps even louder this time around. Last June, Backstage Capital fired most of its employees, with only two people remaining with the company.
Image credits: PM photos (opens in a new window) / Getty Images
A modern look at the entrepreneur
On Equity this week, I interviewed Ocho’s Ankur Nagpal, founder of the entrepreneur-focused fintech firm Teachable and Vibe Capital. We chatted about everything from the temperature of solo doctors to how building up in public affected his trajectory.
This is an excerpt we got Within minutes of registration: “A great CEO…you have to be moderately socially active. There are a lot of things I struggled with when it came to being a CEO, because it would be against my values as a person,” Nagpal said.
Image credits: Getty Images
etc., etc.
- Strange similarity: Instacart co-founder and former CEO Apoorva Mehta raised $30 million for his new healthcare company, WSJ reported last year. This news makes it even more interesting that the current CEO of Instacart, Fidji Simo, co-founded a healthcare clinic, according to Fortune. According to TechCrunch, what an uncanny similarity there is between the past and current leadership of the startup grocery delivery company! Jokes aside, it’s probably a nod to what Amazon tried to do with Whole Foods and One Medical, version of Instacart.
- Big apologies: Whom I missed in Boston last week. I was ready to jump on stage, but food poisoning—from an unnamed coffee shop—got the best of me. I heard it was a hoot, so check out the TC + digest posts coming to you soon.
- Programming note: If you’re reading this on a browser, get it in your inbox too! Subscribe here and share it with your friends.
- naturally: It is indeed the season of turmoil. A reminder that there is a ticket for every budget and role.
- Finally, I have a shameless plug: Scoops make me! If you hear about a winning venture company or startup, or a thumping, or a flop, or, I don’t know, a CEO being booted due to internal events, tell me. I love seeing Early striped formations And term papers too. glad to We talk about anonymity He explained more of my process and what I’m looking for. You can tell me stuff on Signal at +1 925 271 0912. No playgrounds, please.
Seen on Techcrunch
Muslims enter into the framework of the fintech boom in Southeast Asia
Founded by Adyen and Affirm alums, Ansa aims to help merchants create virtual wallets for clients
There was a fintech unicorn minted in the first quarter
Snap stock fell 24% due to weak earnings and declining advertising revenue
Seen on TechCrunch+
After initially challenging the global slowdown, project results eased in the first quarter of the African year
First Republic’s results are evidence that SVB’s collapse was brutal for smaller banks
It’s past the time we started worrying about rhino exits
Needle Threads: 5 Questions by Lisa Lambert from National Grid Partners
take care of yourself,