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Is Startup Valuation Falling?
Hello friends! Alex Here to talk to you for a hot second about money. Then what we will do for Startups, Venture Capital, Big Tech and more. I promise But wait for a moment with me.
Tech stocks rose today: Tech-heavy Nasdaq lost more than 2%. Cloud shares suffered losses twice. What happened? The US government said it could raise interest rates. So what? Well, when rates were low, a lot of money that was invested elsewhere was instead invested in tech stocks and VC funds that invest in startups.
Now, the government is responding by selling technical shares, saying it can shake the current situation. Bessemer Venture Partners investor Byron Deter noted the decline, Tweet After “a few days of toughness in the clouds”, with software stocks “~ 5% today and ~ 10% a week”, he was curious as to whether the valuation “is taking a breather after 2020 largely” or “starting” “Comprehensive Reset
This is a great question. More on the underlying economics of the situation here and here. Now, in startup-land.
Twitter doubles membership
If you were curious about how Twitter is to advance its membership strategy, the answer to an extent is buying startups. Today Big Tweet announced that it is buying Scroll, a startup that charges its users, offering them an ad-free experience on various media sites. Then scroll divide your user fees with those sites.
A clean model, yes? It’s somewhat like a startup called Contenture that ClearTips covered sometime back in 2009. Only Scroll made more progress than Contenture. And your humble servant was not a co-founder in the scroll.
Despite this, the Scroll-Twitter deal matters because the social media company is busy rolling out startups and products to set up better services in its ecosystem that can help monetize more effectively in the long run Huh. All Report:
[Scroll] The company will become part of Twitter’s larger plans to invest in subscriptions, the company says, and will later be offered as a premium feature that Twitter will offer to customers. Premium subscribers will be able to use Scroll to easily read their articles from news outlets and from Twitter’s own recent newsletter product, Review, which has already been integrated into Twitter’s service. When customers use Scroll through Twitter, a portion of their subscription revenue will go towards supporting publishers and content-creating authors, explains Twitter in an announcement.
Twitter vs Substack? Yes Twitter vs Clubhouse? Yes And if Twitter can help media companies better monetize and thus not die? Well, so this is twitter vs a16z media operation. I didn’t really expect a Jack vs Mark 2021, but here it is all the same.
A typical day in today’s startup funding market
There was a cornucopia of startup news on the site today, so I’ve narrowed it down a bit to get what you need in a hurry. Also, shout Mary Ann To cover half of it by itself.
Here is the scrubber:
To round out our startup and venture capital notes, here are two more news: Austin-based Multcoin Capital raised a $ 100 million fund to “further capitalize on the widespread enthusiasm in the crypto world,” according to its own reporting is. Oh, and London-based seed investment fund Stride VC has raised a £ 100 million fund.
Additional crisis advice and analysis
How to break into Silicon Valley as an outsider
There is no magic spell that will inspire an investor to meet you. As with most things in life, it all comes down to what you know and what you need to do.
Dame Holland, CEO and co-founder of Fast, “Nothing beats building a human network”. “That’s the way you’re going to get it in terms of fundraising.”
Since its inception in 2019, Fast has raised $ 124 million in three rounds as it lands new users and partners such as Stripe for its one-click checkout product. In this interview, Holland, a native Australian, shares actionable advice for other outsiders with startup dreams.
Holland says, “Raising money is not the only thing. “You got to hire people, you got to build a team, you got to build customers and suppliers, and you got to build the whole ecosystem.
(Extra Crunch is our membership program that helps founders and startup teams move forward. You can sign up here.)
Enterprise strikes back
Before we get into enterprise news, here’s what you want to read about: Tesla spent $ 3 (not a typo) to buy patents related to battery tech that we think might really matter.
On the enterprise front, Ron Today there are two stories from tech giants that matter. The first is an interview with SAP CEO Christian Klein. SAP, you will remember Qualtics some time ago. What’s next for the software giant? Ron is on the case!
With the same pen, the box’s time in the barrel continues, as some of its largest public shareholders agitate for “injection” [Box’s] Still on the board with more new blood, the box leader was at the team swiping at him. “This is a fight worth watching, as it can encourage or discourage more enthusiasm from going public.
Finally, some good news from Big Tech. That is, Instagram is working on improving its caption technology, which can help reach. And our own Twitter-less Devin reports that Microsoft wants to help children read.
We asked everyone on Twitter about their experience, who are trying to learn foreign languages, and you can Weigh in here Some of you have tried to use Duolingo (with success!) And some have entered junior high through German class without learning a single sentence of the language. Despite his personal experience, read Duolingo EC-1 and learn how the company got started, how he learned how to make money and what lies ahead for him.
Talk of starting a company … if you’re building yours, join us for this week’s Extra Crunch Live. register here. It’s free! See you there