on the decka technique Capital & Advice, the company that connects founders to one another, has conducted another round of layoffs just three months after laying off a quarter of its employees. Sources say more than 100 people were affected by the workforce reduction, which accounted for half of the entire workforce, while the company – which confirmed the layoffs over an e-mail to Meczyki.Net – said 73 full-time employees would be laid off. was closed.
When asked about the discrepancy in the figures, and whether more people were affected under a different employment situation, such as contractors, an On Deck spokesperson said they had no further comment. The company is providing eight weeks severance, three months accelerated option vest and three months health insurance to all who leave the company. Those interested in hiring lay off talent can request access On the list of people looking for new roles.
On Deck, not to be confused with small business lender OnDeck, is a company that provides capital and network support for emerging fund managers and founders. Launched in June 2019, the company previously announced a Founders Fellowship and has recently grown to offer more specialized programs on specific verticals.
It’s that broad focus that led to the need to scale back based on the characterizations of co-founder David Booth and the company’s Eric Torenberg. “In the past two years of hyper-growth, On Deck launched communities serving over ten thousand founders and career professionals. Our team worked tirelessly to expand and cover a large surface area. ” The two wrote in a blog post addressing the layoffs. “However, this broad focus also created considerable tension. What we have always projected as one force – serving multiple user groups and building Flywheel among them – also fractured our focus and brand.
The startup says it left many communities in disarray and the layoffs affected all levels and all departments; However it was stated that none of the officers were laid off, which refutes that statement. One of the programs that closed was a ten-week, $2,490 climate tech “fellowship” that began july, In a message to community members obtained by Meczyki.Net, Booth said the company will issue refunds for existing On Deck Climate Tech participants. “While we will no longer host live sessions or actively manage the event, you will still have access to the community,” the co-founder said.
On Deck is focusing its career advancement arm with a focus on “growing learning communities for mid-career professionals who want to accelerate their careers.” The operation will be led by Mindagas Petrutis, a former Community Director, and will serve On Deck’s current Design, Engineering, Data Science, Marketing, Business Development and Sales, Chief of Staff and No Code communities.
The company told Meczyki.Net, “Led by people who are very passionate about these communities, our founders and career programs are allowed to operate under separate entities, with each team focusing on the needs of their core customers. will enable us to focus and ultimately lead to better results.” in a statement.
A spokesperson says On Deck’s career development business “generates considerable revenue” so it doesn’t require much additional capital beyond some of the seed funding the company already provided to start it. The new company name is still in development.
In other words, having served 10,000 founders so far, On Deck is now exclusively focused on helping early stage founders build at scale. Its other programs, namely those focused on career professionals, will close at sunset or a new company.
This is in contrast to the tone that Torenberg and Booth struck during their last layoff. In an email obtained by Meczyki.Net, the co-founders talked about the challenges surrounding the firm’s recently launched ODX accelerator.
“In 2021, we launched our accelerator, ODX. We saw an opportunity to stand up and try our hand at innovating a stable accelerator market. By multiple accounts, we succeeded in this goal,” the email reads. “Unfortunately, in that same time period, the markets began to change dramatically. In a few months, the capital and accelerator markets were physically different from where they began. These factors forced us to reflect and consider How On Deck will continue for the foreseeable future, supporting our communities and ensuring long-term sustainability.”
Following the publication of this story, On Deck said it has brought its accelerator program under its founder-focused program, ODF. On Deck still supports startups, but what it says is much more than “founder-friendly terms.” Accelerator startups are offered $25,000 for 1% or 2.5% ownership, compared to the first deal in which startups were offered $125,000 for 7% startups.
While the accelerator may need to scale back, On Deck teased a return to its founder-focused roots in May. The company relaunched ODF, which helps founders scale their startups through IRL and virtual programming, as well as On Deck Scale, a program for founders behind high-growth businesses that want to understand for how to be a better leader.
Sources estimate that the first round of layoffs happened because there was only nine months of runway left on deck. The startup last raised known venture capital funding in March 2021 in a $20 million Series A round led by Founders Fund.
The startup did not respond to whether it plans to raise capital anytime soon, but did say that it is capitalized enough to last for more than three years.
Mike Butcher and Harry Weber contributed reporting this story.
Current and former On Deck employees can contact Natasha Mascarenhas at email@example.com, or Signal, a secure messaging app, at (925) 271 0912.