The end of the demo day, dilution and other startup accelerator resolutions

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In April 2020, Nextview VC launched its first accelerator amid the pandemic, while landmark incubators such as Y Combinator and 500 Startups were similarly rethinking their independent strategies. Major changes like doing away with batches entirely and eliminating the cohort model gave us a glimpse into how some of the most active pre-seed and seed investors were rethinking their jobs.

Fast-forward probably too many months, Nextview partner Melody Koh tells me accelerator starting his third group Along with a few major changes, the re-seeded-stage startup is indicating some interesting changes to the scene.

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The first major change is that Nextview is increasing its check size from $200,000 for an 8% ownership stake to $400,000 for a 10% ownership stake. Large check sizes are anything but surprising in this economy, but Koh’s view is that cash will “handy just a little more ammunition to companies that can actually set them up.” Beyond market pressure, the firm realized that they were the only funding source for many of the cohort startups – meaning they had to make a large initial investment in order for these companies to actually follow the funding.

“It just provides a little bit more flexibility and gives teams the ability to really experiment and execute and get to the next phase of milestones that this market is now looking for,” he said. So far, more than 50% of Nextview Accelerator’s alumni identify as underrepresented founders and come from cities including Miami, Seattle, Boston, Birmingham, San Diego and New York.

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In keeping with its distributed format, the firm has had to update its mentorship. This time around, it is engaging each of its six to eight batch of startups with a primary partner for weekly meetings and secondary for monthly meetings. The former will give the company more ongoing resources when they are in mourning, and the feedback is the result of what Nextview has seen from past coworkers. A more involved partnership model can bring more activation energy to startup founders when they need it most.

And finally, the firm is doubling down on its no demo day rule. Part of the argument here is that the idea of ​​an annual, flashy event may no longer be necessary to capture the attention of founders.

“We don’t feel like an artificial kind of deadline, and the Demo Day date format is the best use of your time,” Koh said. “The way we engage with every company… Don’t focus on energy as the right way to spend it.”

Nextview isn’t the only one to reconsider its demo days and its broad investing strategy. Companies like Contrast Capital and startups like launch houses are similarly looking for smart ways to pursue deals and startups.

Even in a world where capital is a commodity, investors are preparing – perhaps even more so – to find innovative ways for founders to make their cash even more valuable. The “value ed” chatter can be hard at times, but to me it’s just a sign that an emerging class of investors is figuring out which one is the best (beyond finding aspiring founders). It’s fun to watch, and even something as small as a tweak on the accelerator format can give us something to think about.

For my full thoughts on the topic, check out my Nerdshala+ column: Startup accelerators’ definition of ‘value added’ is about to be refreshed.

In the rest of this newsletter, we’ll focus on the trends of CES 2022, a fintech startup with a contrasting perspective on CAC, and a feature on the future of Black Girls Code. As always, you can follow my thoughts on Twitter @nmasc_ or listen to me and my friends Equity.

Light bulb and yet smart cat collar with vital signs

image credit: Nerdshala

From smart cat collars to color-changing cars, CES never fails to surprise us. While the Nerdshala team opted to cover the annual tech conference remotely due to rising COVID-19 cases, our reporters were still getting a sneak peek at the latest and greatest technology. All of our CES coverage can be found at this nifty link, but I recommend starting with Brian Heiter’s CES 2022 topics to get your palate wet.

Here’s what to know: Major announcements so far include BMW’s plans to turn cars into rolling cinemas, a mission to scale paper-based tooth brushes and, on a more serious note, a statement on the importance of a cushion that tracks your child’s temperature. does.

Other “Wait What” moments include:

  • This lightbulb can monitor your vital signs
  • As CES Goes Hybrid, Connected Fitness Companies Have Another Big Year
  • TikTok taps the atmosphere to bring TikTok videos out of the home screen to commercial locations for the first time
  • Stelantis to turn Chrysler into all-electric brand by 2028
  • LiLz uses computer vision to read gauges and dials where humans don’t like to walk

And it’s the start of the week…

Financial risk concept with dollar sign and footprints on blue background.  3d rendering

image credit: Peshkova (Opens in a new window) / Getty Images

Bankaya! As our own Mary Ann Azevedo reports, this Mexican fintech is opting for a non-traditional strategy to acquire customers: going offline. The new, early-stage company is targeting 50 million underbanked individuals with face-to-face advertising: Place street sales and debit card kiosks strategically in vaccination centers.

here’s what to know: Just a year after launch, Bankaya co-founders CEO Mauricio Cordero, Ramon Chedrouei and Diego Vargas claim they have 450,000 customers. And, adding to their counter-intuitive strategy, the company remains completely bootstrapped to date.

Honorable Mention:

  • Alto raises $40 million to help individuals make tax-savvy investments in assets like crypto and artwork
  • NFT Kingpin OpenC Land Monsters Valuing at $13.3B New Growth
  • Meet Bob, a Cute Little Dishwasher That Saves Water and Eliminates Bacteria
  • $75M more land to expand Liquid Death brand
  • Petal nears unicorn status with fresh $140M in capital to maintain ‘broken’ traditional credit system
  • Not every creator economy is built for startup creators
  • 3 views: Focus on These Startup Thesis in 2022

Kimberly Bryant and the future of Black Girls Code

kimberly bryant

image credit: Sean Mathis/Getty Images

Over the holidays, news broke that Kimberly Bryant, the co-founder and CEO of Black Girls Code, had been “indefinitely suspended” from the nonprofit she launched nearly a decade ago. I spoke to the board of the nonprofit that decided to put her on leave, former employees who allege rising tensions between Bryant and the organization, and, of course, Bryant himself to get the full story.

Here’s what to know: There’s so much nuance to this story that it could be crammed into an entire blurb, so I’d really recommend it to anyone who’s willing to read the full story. So far, the board claims it has set up a special committee to review former and current employees’ complaints against Bryant and paid administrative fees to Bryant last week “to ensure a full and fair review process.” placed on leave.

Startup Board 101:

  • What you need to know about startup boards
  • 5 must-have board slides for SaaS sales and revenue leaders
  • More LP transparency is overdue

around Nerdshala

Our event calendar was leaked (by us) so now’s your chance to see our legendary line up for this year. I’m very excited to share that our flagship event, Nerdshala Disrupt, is coming back as an individual event. Three days, lots of startup chatter, and over-caffeinated. buy tickets as soon as possible

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Equity Team’s 2022 Predictions

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VCs and founders see maximum bullishness as a warning sign in public markets

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Areas where New Zealand startups are headed to win

What are the ‘tasks’ of an investment manager?

Ah, guys, it’s good to be back,

n



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