The bootloaders are coming, the bootloaders are coming

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Welcome to Startups Weekly, a fresh look at this week’s startup news and trends. To receive this in your mailbox, subscribe here.

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Start-ups, or companies that use their own income or existing cash flow to fund growth instead of relying on outside sources of capital, are in a very different box than venture capital-backed startups. By the nature of the asset class, bootstrap startups prioritize revenue to sustain life, while venture capital-backed startups prioritize growth to retain investor support for future runway needs. Start-up companies follow a less exponential growth curve, while venture capital-backed companies should be the exception.

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Get into recession and both sides get a little more interesting. The built-in business discipline of start-up startups may seem especially recession-resistant as overfunded companies announce mass layoffs. As the venture becomes more and more interested in the stable foundations of a group of startups, isn’t it time for startups to bet big?

For Healthie, a payment processor for healthcare companies, now is the perfect time to get on the venture capital treadmill after six years of bootstrapping, according to co-founder Kavan Klinsky.

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“If you are a start-up company that has not yet [venture] treadmill, you have that ability or that ability to choose when to start,” he said. “After you’ve already raised a bunch of businesses, you’re kind of building a venture-scale business, whereas if you’re ready… you can be very opportunistic about this being the right time.

For a full review, read my TechCrunch+ column: Will startups one day turn into venture capital businesses at a tipping point?

In the rest of this newsletter, we’ll talk about real-world honey and the big layoffs happening in tech. As always, you can support me by forwarding this newsletter to a friend or follow me on twitter.

Deal of the week

If Pogo had his way, you get paid every time you walk down Market Street in San Francisco. Or check your email. Or open its app. The only catch is that in return, you are giving away your personal data to consumer-facing fintech. In other words, Pogo wants to give users money in exchange for their data.

I dug into a startup that had just raised a $12.3M seed round led by Josh Buckley and a previously unannounced $2.5M pre-round, and his 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 and the number of subscriptions they own. It’s like what a bank would see, but it’s a venture capital-backed startup they want you to trust.

Electronic Frontier Foundation, a non-profit organization that has championed civil liberties in the digital world since 1990, describes the idea of ​​exchanging data for money as a “data dividend.” In the essay, the organization urges consumers to rethink whether getting paid for their data really addresses the existing imbalance between users and corporations.

The EFF asks a number of questions, such as who will determine the value of certain data and what makes your data valuable to companies? Also, what does the average person gain from data dividends and what does they lose in exchange for that extra money?

iPhone security: iPhone image on green background

Image credits: Getty Images

Layoffs continue

There have been a number of significant layoffs this week, including:

Here’s why it’s important: This format barely works to cover layoffs because it’s clear why people losing their jobs are an important dynamic to cover. What’s new most recently, which I’ll be talking about next week, is that we’re seeing founders go through two rounds of layoffs in quick succession.

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

Image credits: Jake7 (Opens in a new window) / Getty Images

If you missed last week’s newsletter

Read it here: “Great Resignation Meets Great Reset (Great R… lower those ratings please).” I also recorded an accompanying podcast with my co-author Anita Ramaswami, which you can listen to here: “Explaining the Niche Aspect of Startup Employee Compensation”.

Any requests for topics for me to dig into Startups Weekly or the show? Send me a big question and I will try to do it either in the upcoming issue of Startups Weekly or in a podcast.

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Seen on TechCrunch+

Build a solid deck for quarterly board meetings

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Now you can get startup shares for cheap

The Right Questions to Ask Investors When Raising Funds in a Falling Market

Ok! I’m heading for the mountains. See you later,

H




Credit: techcrunch.com /

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