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Which startup investors are actually the first to support the best companies? If you know this information before raising funds, you can avoid giving investors who were always going to tell you that you were “too early” anyway. The problem is that everyone claims to be successful, and by the time you select databases, investor sites, blogs, tweets and news clippings, you have no idea who called when.
That’s why our solution is to simply ask the founders about who really did itOur new product, the TechCrunch list, will contain investors who have written the first checks to help any founder find the help he needs when he needs it. Here’s another, from Arman Tabatabai and Danny Crichton:
Over the next few weeks, we are going to collect data on which individual investors are actually ready to enter the well-known “first check” in the round of fundraising for start-ups and help stimulate deals for founders – be it starting number, series A or otherwise. (i.e., from your Series A investors, the first person who wanted to write a check and chat with other investors). After we collect, clean and analyze the data, we will publish the lists of the most recommended first-time investors for various verticals, investment stages and geographical regions so that the founders can see which investors are potentially best suited for their company …,
Overall, the TechCrunch List will publish the most recommended authors of the “first check” in 22 different categories, from D2C and e-commerce brands to space and everything in between. Analyzing data on total investments in each area, we believe that our 22 categories should cover all or most of the venture capital today.
To make this project successful and create a useful resource for the founders, we need your help. We want to hear from the builders of the company, and we want to hear from them directly. We will collect approvals represented by the founders through The form is linked here.,
Valley of the deal continued during the pandemic
Despite a lot of discussion about investors massively retreating from startup investments new study from Fenwick & West Silicon Valley Law Firm About activity in the region in April, says that valuations have grown, markdown rounds have not increased as a percentage of transactions, and the overall rate of transactions has actually increased. The trick, Connie Loisos writes for TechCrunch, is that most of this was related to the rounds at later stages, and of course it extended to industries that were caused by a pandemic or caused its various clashes.
Alex Wilhelm then looks at a couple of additional reports for Extra Crunch from Docsend and NFX. It seems that they show a steady increase in investor activity since AprilJust like the growing optimism of the founders – but the early stage really seemed more turbulent, like, um, you can expect if someone has experience raising funds at an early stage. He separately notes that the latest sources of tracking data apparently show a decrease in layoffs at startup, Both, by the way, are written as part of The Exchange, its new daily column on the latest trends in the world of startups for EC subscribers (use the EXCHANGE code to get 25% of the subscription).
Outside the valley of the transaction (and its problems)
Juneteenth celebrated since 1866 to mark the end of slavery after the American Civil War. But this year, technology companies see the holiday as an official holiday to help them demonstrate their concern for structural discrimination since the assassination of George Floyd and the global protests that followed. What does this really mean though? Here is Megan Rose Dickey for TechCrunch:
Recognizing such a historic day is good. But the way these companies publicly announce their plans, look for the press, how they do it, suggests that they need something in the affirmative. It is perfectly acceptable to do the right thing and not get credit for it. It shows humility. This shows that the company is more interested in doing business with its employees more than in saving face ….
Instead like Hustle Crew founder Abadesi Osunsade saidtechnology companies need to go beyond one-time action and build habits of work on racial justice. Shaping habits related to hiring blacks, promoting blacks, fair pay for blacks, financing black founders, and releasing blacks in managerial positions is what will lead to concrete changes in this industry.
Meanwhile, given the current problems in fundraising, Did Jirasa from fearless writes about other resources that black entrepreneurs can use to get their company from scratchincluding crowdfunding, mentoring programs, 8 (a) programs, SBA resources, and your local commercial banker.
Internet winners as well as Iranians during a pandemic
Two marketers shared up-to-date data on which categories win and lose during the Extra Crunch pandemic this week, perhaps showing where the founders and investors are coming from? The first, here is Ethan Smith of Graphite, which gives an overview of how money is spent online during a pandemic, using data from Branch through mid-May:
The good news for sellers in general is that people are still shopping online, but they are buying different things and in different volumes than before. Mobile activity targeted at children / pets and related purchases have risen sharply. We are also seeing sharp leaps in the purchase of sportswear, fashion items, shoes and decorative art items, as people expect locks and are preparing for what they hope will be a summer of freedom.
To delve into the category of direct consumers, here is Ashwin Ramasami from PipeCandythat uses a combination of data sources to analyze trends in subcategories compared to what a year without a pandemic might look like:
Children, dishes and kitchen utensils, clothes, jewelry, fashion, women’s health, mattresses, furniture and skin care products actually deviated from the forecast. This is not to say that these categories were refused. We are actually saying that these categories are not keeping pace with the growth trends they organized in 2019. However, the devil is in the details. For example, in the furniture sector, there is a category of D2C brands that sell shelves and office furniture. Consumers invested heavily in them, apparently to allow Zoom participants to absorb more of the names of books on these shelves than the calls themselves. Wine / spirits, food, fitness, childcare, pets, and nutraceuticals were better than expected. In fact, everything that helped to stun reality (alcohol), sweeten reality (food), distract from reality (caring for a child and pets), experience reality (fitness) or hallucinate alternative reality (nutraceuticals) is good. I will leave you with one more interesting conclusion that we came to thanks to further studies that are currently underway: the e-commerce category is not directly focused on the consumer – it is the average market and large companies engaged in pure e-commerce. This is one segment where the aggregate quarterly growth rate of active companies is better than the average for 2019.
A week later
Hello and welcome back to CapitalVenture Capital TechCrunch Podcast, where we unzip headline numbers.
Your humble Equity team is pretty tired, but in a good mood, as there was a lot to talk about this week …
- Epic Games seeks to raise a huge wad of money (Bloomberg, Venturebeat) by a new, higher rating. We were curious how his bottom store could help catch on with developers, big and small. That part of the chat, Fortnite’s parent company assessment of others, was very convincing for another major topic of the day:
- Apple vs DHHSo, Hey launched this week, and a new email turnover quickly eclipsed the launch of his product, arguing with Apple about whether she should add the ability to subscribe to a paid service on iOS, thus giving Apple a reduction in its revenue, DHH and the team didn’t agree. Apple is criticized for anti-competitive practices at home and abroad – of varying intensity and from different sources – which makes it even more acute.
- Upgrade raises $ 40 million for its credit-oriented neobank,
- Degreed raises $ 32 million for its continuing education platform,
- And, finally, our view of the current state of the startup market. There were a bunch of messages lately near what happens in startupWe gave our take.
And it’s all. Have a nice weekend and get some sleep.