Welcome to Startup Weekly, a fresh human-first presentation on this week’s startup news and trends. To get it in your inbox, Subscribe here.
Bootstrapped startups, or companies that use their own revenue or existing cash flow for growth rather than relying on external capital sources, sit in a very different box than venture-backed startups. By the nature of the asset class, bootstrapped startups prioritize revenue to survive, while venture-backed startups prioritize growth to buy into the investor for future runway needs. Bootstrapped companies tend to follow an exponential growth curve less often, while venture-backed companies are required to have an outlier.
Enter a bearish and both sides get a little more interesting. The built-in business discipline of bootstrapped startups can feel especially recession-proof as overfunded companies announce a round of layoffs. As the enterprise startup becomes more interested in the group’s stable fundamentals, is it time for the bootstrapper to swing big?
For Healthy, a payments processor for healthcare companies, now felt like the right time to go to the “treadmill” of venture capital after six years of bootstrapping, according to co-founder Kavan Klinsky.
“If you’re a bootstrapped company that hasn’t [venture] Treadmill, you have that kind of optionality or the ability to choose when to go,” he said. “Once you’ve already built a bunch of enterprises, you’re building a business to enterprise scale, whereas if you’re bootstrapped… you can be really really opportunistic at the right time. what is.
For my full take, read my Meczyki.Net+ column: Will a once bootstrapped startup turn into an enterprise during the watershed moment?
In the rest of this newsletter, we’ll get into the drama behind some of the important layoffs happening in and on Honey for the real world. As always, you can support me by forwarding this newsletter to a friend or following me on twitter,
deal of the week
If Pogo had its way, you’d get paid every time you strolled down Market Street in San Francisco. Or check your email. Or open its app. The only catch is that you give your personal data to consumer-focused fintechs in return. In other words, Pogo wants to give users cash in return for their data.
I dug into the startup, which raised a $12.3 million seed round led by Josh Buckley and a previously unannounced $2.5 million pre-seed round, and raised its targets for Meczyki.Net this week.
Here’s why it’s important: Pogo is going to have an intimate window into someone’s life, from where they live to their favorite coffee shop and how many subscriptions they have. It’s like what a bank would see, but it’s a venture-backed startup it wants you to believe.
Electronic Frontier Foundation, a nonprofit that has defended civil liberties in the digital world since 1990, describes the idea of exchanging data for money as a “data dividend.” In an essay, the organization urges consumers to reconsider if getting funding for their data actually corrects the current imbalance between users and corporations.
The EFF asks a series of questions, such as who will determine what some data costs and what makes your data valuable to companies? Also, what does the average person gain from the data dividend and what do they lose in exchange for that extra cash?
Several significant layoffs occurred this week, not only limited but including:
Here’s why it’s important: This format doesn’t work nearly as well for layoff coverage, as it’s clear why covering people who have lost jobs is an important dynamic. What’s new lately, what I’ll get to next week, is that we’re seeing founders do two rounds of layoffs in quick succession.
If you missed last week’s newsletter
Read it here: “Great resignations meet great resets (great R… please put those ratings down).” I also recorded a companion podcast with my co-writer Anita Ramaswamy, which you can listen to here: “A Typical Aspect of Startup Employee Pay, Explained.”
Any requests for topics on Startups Weekly or Shows for Me? Tweet me a big question And I’ll look into it on an upcoming Startup Weekly or podcast.
seen on techcrunch
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Meczyki.Net+. seen on
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Now You Can Get Startup Shares For Cheap
The Right Questions to Ask Investors When Fundraising in a Down Market
Fine! I’m going to the mountains. until next time,