Let’s Start Up - Issue 40 | We were on a break
POV: You're a founder building a startup
Hi there 👋 Welcome to Let’s Start Up a newsletter, curated by me, Janine Sickmeyer, a tech founder turned investor. Follow me as I share startup tips, industry news, founders you should know, and investors putting their money where their mouth is.
What's In This Issue 🗞
A brief look into what you'll be reading about
Why I’m unplugging right now
Two brilliant founders I met at Collision!
Wholesome content
Advice for founders and investors
What's On My Mind 💭
I’ve been thinking…
The news is heavy right now.
We’re all feeling burned out. But are we really burned out? Over the last two years, we’ve been reacting to a never-ending cycle of bad news. In addition to the devastating current events, we’ve also been under the weight of student loans, rising housing costs, stagnant wages, and a climate crisis as said by Karen K. Ho.
I’m taking a break. When the world is heavy, sometimes it’s necessary to pause and remind yourself that focusing on what you control can help you get through more difficult times. I’m reminding myself every day that actions, relationships, appreciation, optimism, and humility are the things that are most important to me, and they’re what I can decide for myself.
I’m sharing my feelings to let you know it’s okay to allow yourself to feel too. If you’re burned out about work, the world around us, or anything else, take time for yourself. You are more important than others’ perceptions of you. Don’t worry about what others say.
List out what is important to you, focus on what you can control, and keep running up that hill. And if you need an anthem to get you through a difficult time, I’d like to suggest the 1985 Kate Bush song made popular again by Stranger Things.
Recently Hit the Stands 📰
Things in the news you should check out
Female Only VC Funds Don’t Necessarily Help Female Entrepreneurs
If the rates of entrepreneurship were equal between men and women, the global economy would grow by $5 trillion (Boston Consulting Group). BCG also found that women generate 2x financial return on investment. Adi Gaskell uncovers why women founders who received support from a woman investor were perceived by observers as less competent.
Venture Capitalists Say the Era of Recklessly Burning Cash Is Over
“We are now in an era of profitability.” VCs have changed their tune from growth at all costs to careful spending and solid unit economics. Interest rates are raising and the startup world is fearing a recession. The days of encouraging hypergrowth are gone for the foreseeable future and venture firms are interested in companies that have a clear path to profitability.
Victoria’s Secret Misses the Mark by Pursuing Inclusivity as a Tactic, Not a Culture
Victoria’s Secret launched a new campaign centered around inclusivity, but unfortunately, it was bland and performative. Unlike the normal glamour and angel wings, the ad featured “real” women, promising advocacy and commitment. Not to mention, the ad came out during poor timing just days after the ruling.
Empowering the women’s Entrepreneurial Ecosystem
World Bank found that women own only 17% of all small businesses in the United States and other developed countries. Women are powering e-commerce and starting businesses from home. This article from Inventiva explores the state of women in entrepreneurship, the challenges women founders face, and more.
Layoffs are hitting tech, however, many tech startups are scooping up top talent. If you’re looking for a job in tech, look to talent partners at venture capital firms. Business Insider lists out 24 talent partners at venture capital firms that can help you land a job at the most sought-after startups. The list includes partners from Battery Ventures, CapitalG, First Round Capital, and more.
Equity crowdfunding appears immune to market volatility, on track for its best year yet
Equity crowdfunding is a method of fundraising online from a community. From January to May of this year, over $215 million was invested in startups on equity crowdfunding platforms. While there was once a stigma around equity crowdfunding, venture capitalists are using crowdfunding platforms to scout deals and are even encouraging portfolio companies to consider equity crowdfunding campaigns.
Start-Up Funding Falls the Most It Has Since 2019
After many months of a fundraising boom, startup funding is dropping due to rising inflation and market uncertainty. In the last three months, investments in U.S. startups decreased by 23% to $62.3 billion. While the numbers feel bleak, venture capital firms are still raising their new funds and are actively deploying capital into startups.
The creator economy wasn’t a trend of the past. Tejas Hullur, a popular creator on TikTok, partnered with Venmo for his first brand deal. He is one of 50 million people who consider themselves creators. Venture capital is getting in on the creator economy with $637 million in venture capital invested.
Mayvenn, which started out as a digital marketplace for hair extensions and weave bundles, expanded to a database for hairstylists to grow their business and for consumers to find services. In late June, Mayvenn announced a $40M raise and plans to use funds to expand its partnership with Walmart by creating more in-store Mayvenn Beauty Lounges.
Sequoia and Tiger Global Take SoftBank to the Cleaners
Fintech company Klarna is said to raise a $650 million funding round, resetting its $45.6 billion to $6.5 billion, which will affect SoftBank’s returns. Softbank led Klarna’s previous round at a $45.6 billion valuation and as a result, is seeing a “crash landing” in its second vision fund.
Q2 VC Funding Globally Falls Significantly As Startup Investors Pull Back
Investors have slowed down their participation in late-stage funding deals while overall global funding has slowed dramatically. Compared to 2021, a record year for venture, second-quarter funding this year fell 26%. In this Crunchbase article, Gené Teare shares the state of funding across multiple stages, unicorn counts, and the market slowdown.
Main Street Ventures Grant Recipient: Bosa
Congratulations to Anastasia Tarpeh-Ellis (a former Founder to Follow) and EJ Oruche for receiving the $10,000 Launch Grant from Main Street Ventures. Bosa is a collaborative to-do list that helps prevent burnout and give you your life back. This personal productivity app acts as an affordable, asynchronous, and accessible personal assistant.
A Little Birdie Told Me 🐦
Tweet of the moment
Hot Take of the Week 🔥
Somebody had to say it
Founders You Should Follow 👀
Keep an eye on these founders making moves
Lana Cuthbertson | Areto Labs
CEO of Areto Labs, Lana Cuthbertson co-founded the B2B SaaS startup to build technology that makes digital communities more positive and inclusive. During her career, Lana has worked in a variety of roles including communications, product and program management, business strategy, entrepreneurship, and innovation. Lana is based in Montreal, an advocate for gender equality, and the founder of Twitter bot ParityBOT and nonprofit ParityYEG. Currently leading Areto Labs, Lara and her team have built an AI-powered cyber security software that detects and analyzes online abuse. In addition to its flagship product, Areto Labs has an analyzer that anyone can use to type a phrase or sentence and Areto will break it down for overall sentiment, likely emotions, and toxicity likelihood
Emily Craven | Story City
Author and speaker Emily Craven is the Co-founder and CEO of Story City, a GPS app that creates interactive narratives that occur in the location the audience is standing. On a mission to become the global hub for local stories, fictional game experiences, and self-guided historical, food, and art tours, Story City can be used in cities across the country like Brisbane and Buenos Aires. With over a decade of storytelling and publishing under her belt, Emily has won multiple awards for her work including Young Writer and Publisher of the Year. Emily is dedicated to helping creatives build careers they love, in the cities they love. If you’re interested in
Wholesome Content ☀️ (a new section!)
Repeated trauma is taking a toll on us all and we all need a little smile sometimes
When all else fails, play the absurd trolley game.
Why a Minions TikTok trend has some movie theatres banning teens in suits
Witnessing a wholesome moment.
Animals make the world a better place. Like this elephant and this kitty and these other animals that made me smile this week:
New Funds Announced 🚀
Recently launched venture funds
CincyTec, a seed-stage investment firm, announced that it is raising its sixth fund totaling at $100 million. CincyTech primarily invests in tech, health care, and life science sectors and has made $100 million in investments.
Insight Partners, a firm that invests in technology software and internet-based businesses, is holding talks to raise its 13th fund. This new vehicle will be a $20 billion flagship fund.
New Minneapolis venture firm Engage Ventures launched to invest in medical device, digital health, health care IT, and health care SaaS. The firm will take an investor- and founder-friendly approach to startup funding.
Ford Foundation announced the Dignity and Justice Fund, which will make high-impact grants to advance social justice and equity across the globe. The Fund will target grantmaking across a range of issues including technology and society, gender, racial, and ethnic justice, creativity and free expression, and more.
Stellar Ventures launched its first fund with final closing of over $23 million in capital commitments. The firm will invest in the future of space technology. Stellar Ventures is woman-led and based in Palo Alto California.
Founder Tips
What you need to know
What’s one thing about entrepreneurship that should be obvious? Read this thread for tons of answers.
We’re still in an uncertain market. Here’s what Hadley predicts for the pre-seed/seed funding environment.
Reminder: your mental health is more important than anyone else’s perception of you.
Leila Hormozi lists the top lessons she learned about entrepreneurship over the past five years.
Startup Markets, Summer 2022 Edition from Elad Gil. Read about what the market ahead looks like, and how to manage your company through it.
This Twitter thread explores which company/ startup has the best-looking app/website. Check them out for inspiration.
Entrepreneurs are athletes. It’s helpful to be at peak performance.
Brevity over Eloquence. Be short, concise, and punchy. It’s the best way to close.
11 learnings on leadership, entrepreneurship, and startups from a mom, wife, and a first-time founder/CEO who crossed $5 million in revenue.
Long Time Listener 🎧
Podcasts & videos you should listen to
What was Tim Draper doing in his 20s | inThier20s
On the inTheir20s podcast, Landon Campbell interviews Tim Draper, a venture capital investor, founder of Draper University, Draper Venture Network, and Draper Associates. During the episode, Landon Campbell and Tim Draper speak about taking risks in your 20s, Tim’s thoughts on Bitcoin, and why he got into venture capital.
Becoming a Community-Driven Company with Yulia Bel | Marketing Against the Grain
HubSpot’s Marketing Against the Grain, hosted by Kipp and Kieran, invited Yuliya Bel, CEO and Co-Founder of Notus to be on the show. The three chat about the importance of investing in good content and distribution, doubling down on the definition of community, and explore the question: is community a tool for engagement or acquiring new customers?
The rocky road ahead for startups | NPR
NPR’s The Indicator from Planet Money explored the flow of venture capital money in a recent episode. The episode discusses turbulent times, how decisions at the top trickle down, and more. Listen to hear their take on the state of venture capital and startups.
For Investors 💰
Advice & thoughts for aspirational, new, or seasoned investors
Common questions asked by limited partners from Rylie Jennings.
Read what LPs actually want when looking at a quarterly/annual report
Being a VC is constantly apologizing for being behind on e-mail
Outliers aren’t born, they’re made.
Why Alexis Ohanian is obsessed with time optimization.
Before You Go 🚪
What you might have missed.
The more you build, the less advice you take.
20 “old fashioned” way to stand out in life and business.
Brianne Kimmel of Worklife Ventures is opening an only community space to stake a claim on LA’s celebrity founders.
Rich kids have one very important advantage in life - using money to free up time.
White cisgender women in America have a choice to make.
Your little business idea isn’t going anywhere…
Representative Maxine Waters spoke about the allocation of last year’s venture capital investments.
