The shoe is coming, the shoe is coming – TechCrunch

Welcome to Startups Weekly, a new human experience on startup news and trends this week. To get this in your inbox, Subscribe here.

Bootstrapped startups, or companies that use their own revenue or existing cash flow to fund growth rather than relying on external sources of capital, fall into a very separate fund from venture-backed startups. By the nature of the asset class, start-up startups prioritize revenue for survival, while project-backed startups prioritize growth to maintain investor support for future runway needs. Bootstra companies follow a lower exponential growth curve, while project-backed companies need to be farther apart.

Get into the downturn and both sides will get a tad more interesting. The built-in business system of bootstrap startups in particular may feel deflation-resistant as overfunded firms announce rounds of layoffs. As the venture begins to pay more attention to the stable fundamentals of the startup pool, is it time for the bootstrap newbie to swing big?

For Healthie, the payments processor for healthcare companies, now felt like a good time to get into a “vicious cycle” of venture capital after six years of bootstrap, according to co-founder Kavan Klinsky.

“If you are a bootstrap company and have not yet joined the [venture] On a treadmill, you have this kind of optional or that ability to choose when to go up,” he said. “Once you’ve really built a portfolio of projects, you’re kind of building a business at scale, whereas if you’re a beginner… you really can Be really pushy about the right time.

For my full text, read my TechCrunch+ column: Will Once-Start Startups Go Venture During a Watershed Moment?

In the rest of this newsletter, we’ll be taking on the real-world play on Honey behind some of the important layoffs that are happening in technology. As always, you can support me by forwarding this newsletter to a friend or Follow me on Twitter.

Deal of the week

If Pogo manages to get you paid every time you walk down Market Street in San Francisco. Or check your email. Or open its app. The only problem is that you provide your personal data in return to the consumer-focused fintech company. In other words, Pogo wants to give users cash for their data.

I delved into the startup, which has just raised a $12.3 million seed round led by Josh Buckley and a previously unannounced $2.5 million seed round, and its goals for TechCrunch this week.

Here’s why it’s important: Pogo will have an intimate window into someone’s life, from where they live to their favorite coffee shop to how many subscriptions they have. It’s similar to what a bank might see, but it’s a venture-backed startup that they want you to trust.

The Electronic Frontier Foundation, a nonprofit that has advocated for civil liberties in the digital world since 1990, describes the idea of ​​exchanging data for money as “data profits.” In an article, the organization urges consumers to rethink whether getting paid for their data really fixes the imbalance that exists between users and businesses.

The EFF asks a series of questions, such as who will determine the cost of certain data and what makes your data valuable to businesses? Plus, what does the average person gain from data dividends and what do they lose for that extra money?

Image credits: Getty Images

layoffs continue

There have been a large number of layoffs this week, to name a few:

Here’s why it’s important: This format almost doesn’t work with layoff coverage, because it’s clear why people losing jobs is such an important dynamic to cover. What’s new recently, which I’ll get into next week, is that we’re seeing the founders conduct two rounds of layoffs in quick succession.

A badly burnt and properly toasted slice of bread and plain bread on a yellow background.

Image credits: jayk7 (Opens in a new window) / Getty Images

If you missed our newsletter last week

Read it here: “Great Resignation meets Great Reset (Great R…un down these reviews please).” I also recorded an accompanying audio file with my co-creator on the piece, Anita Ramaswamy, which you can listen to here: “Explanation of a Niche Aspect of Startup Employee Pay.”

Are there any requests for topics I can research, either in Startups Weekly or in the show? Tweet me a big question And I’ll be swinging by it, either on the upcoming Startups Weekly or on the podcast.

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OK! I’m heading to the mountains. until next time,


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