Ever been on a cruise ship?
Before Covid, most voyages began with a shipwide safety drill, where passengers assembled, donned life vests and learned what to do in an emergency.
The sea has an average depth of 2.3 miles, yet these rehearsals are always calm. You are starting a vacation; What happened? Maybe make a mistake
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Similarly, there is no need to fear raising money, but like carefree cruisers at full sail, entrepreneurs should have a healthy respect for a process that is out of their control.
“Any change is an opportunity to create leverage, and a downturn is no exception,” writes Masha Bucher, founder and general partner at early-stage VC firm, Day One Ventures.
In this TC+ post, she discusses the current financial climate and shares “actionable tips for closing pre-seed to Series B rounds.”
We’re publishing on a reduced schedule over Labor Day weekend, so I’ll be back next Friday with another roundup. Thanks so much for reading!
Editorial Manager, Technology Flow+
Creating a XaaS customer success strategy that drives growth
A software startup can literally save the day by providing better service than customers expect. In one study, companies that spent 10% of their annual revenue on customer success achieved the highest net recurring revenue.
According to Alexander Group’s Rachel Parrinello and John Stamos, “Companies often implement two or more customer success archetypes.” They typically vary based on customer segment, business vs. technical focus, and sales motion focus: adopt, renew, upsell, and cross-sell. doing.”
If you’re interested in optimizing revenue through customer success, read the rest for a complete overview of the customer success job design methodology, because “companies shouldn’t design their customer success roles in a vacuum.”
We need to learn the lessons of the 2021 fundraising bubble
Does your startup have a data room? Are you calculating the ROI of each new hire before extending an offer letter?
“Do you lift too?” There is a risk of being called Poti: Every process in your organization can be improved, and founders need to take advantage wherever possible, writes Imad Akhund, co-founder and CEO of Mercury.
“Use this tough market to prepare and ensure your business is scalable and you’ll do better in fundraising.”
Dear Sophie: What are the expedited visa options for bringing in international talent?
Our startup is recruiting engineers. Most of our team works remotely, but some of our potential recruits prefer to work in the office. They are international students graduating in December, as well as some people who have worked remotely with us as contractors.
What are the expedited visa options we should consider? Can their supervisor work remotely? Is there anything else we should remember?
– A tough recruiter
Stop sensationalizing the ‘collapse’ of VC: look at the data
For many entrepreneurs looking to raise money, this is a scary time. Fundraising is taking much longer than it used to be, and valuations are much lower than they were a few months ago.
For investors, however, things are settling back down to earth, says Brian Walsh of Wind Ventures.
“The reality is that there was an unprecedented hype cycle in 2021, and what we’ve seen since early 2022 is, objectively, ‘reversion to the mean’ in line with long-term trends.”
For fintech to reach the next level, infrastructure providers must address these pain points
Can infrastructure companies like Stripe, Plaid and Klarna help struggling fintech startups weather declining valuations and poor deal flow?
Perhaps, but “to do this, they need to take a closer look at the problems those customers face on a day-to-day basis,” writes Alloy co-founder and chief revenue officer Laura Spiekerman.
Spiekerman said moving faster to find better ways to prevent fraud and align products with interest rates could unlock more potential in the sector.
“Infrastructure providers should re-prioritize increasing their capabilities for their existing customers instead of signing new ones.”
An action plan for entrepreneurs to raise funds in the choppy waters of fintech
Startup fundraising is an uphill sprint in times of plenty, but in times of downturn, it’s an absolute grind.
“It’s not you; it’s the market,” advises Ryan Falvey, co-founder and managing partner of Financial Venture Studio.
“The best founders recognize that the goal is to close a round, not raise price or reduce dilution,” which means you should talk to as many investors as possible and take their money if the terms are reasonable.