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| Image Credits: Flashpop / Getty Images | Just like companies need a guiding framework to achieve product-market fit, entrepreneurs who don’t have defined methods for evaluating VCs will have poor founder-investor relationships. How much operator value do you need? Are you looking for a hands-on investor? A mentor? According to a report by UK-based Forward Partners, 47% of founders surveyed said “their investors had little knowledge of the sectors they are investing in.” Three out of five founders said they felt “duped” with regard to VCs delivering the value they promised. Dealmaking is fast and furious these days, but that doesn’t mean founders are off the hook when it comes to performing due diligence before they sign a term sheet. Thank you for reading Extra Crunch; have a great week! Walter Thompson Senior Editor, TechCrunch @yourprotagonist Read More | | | |
| Image Credits: Nigel Sussman | A short meditation on value, or, more precisely, how assets are valued in today's markets. Long story short: This is why I only buy index funds. No one knows what anything (interesting) is worth. Read More | | | |
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| Image Credits: Matthias Kulka / Getty Images | Raising capital for a new fund is always hard. But should you give preferential economics or other benefits to a seed anchor investor who makes a material commitment to the fund? Let’s break down the pros and cons. Read More | | | |
| Image Credits: TEK IMAGE/SCIENCE PHOTO LIBRARY / Getty Images | Last year was a record 12 months for venture-backed biotech and pharma companies, with deal activity rising to $28.5 billion from $17.8 billion in 2019. As vaccines roll out, drug development pipelines return to normal, and next-generation therapies continue to hold investor interest, 2021 is on pace to be another blockbuster year. But founder missteps early in the fundraising journey can result in severe consequences. In this exciting moment, when younger founders will likely receive more attention, capital and control than ever, it's crucial to avoid certain pitfalls. Read More | | | |
| Image Credits: Maxime Robeyns/EyeEm / Getty Images | The fundamental thing to remember about the SPAC process is that the result is a publicly traded company open to the regulatory environment of the SEC and the scrutiny of public shareholders. In today's fast-paced IPO world, going public can seem like simply a marker of success, a box to check. But are you ready to be a public company? Read More | | | |
| Image Credits: Westend61 / Getty Images | Those of us who read a lot of tech and business publications have heard for years about the cybersecurity skills gap. Studies often claim that millions of jobs are going unfilled because there aren't enough qualified candidates available for hire. Don’t buy it. The basic laws of supply and demand mean there will always be people in the workforce willing to move into well-paid security jobs. The problem is not that these folks don't exist. It's that CIOs or CISOs typically look right past them if their resumes don't have a very specific list of qualifications. In many cases, hiring managers expect applicants to be fully trained on all the technologies their organization currently uses. That not only makes it harder to find qualified candidates, but it also reduces the diversity of experience within security teams — which, ultimately, may weaken the company's security capabilities and its talent pool. Read More | | | |
| Image Credits: Nigel Sussman | We do not know how to value Honest Company. It's outside our normal remit, but that the company is getting out the door at what appears to be a workable price gain to its final private round implies that investors earlier in its cap table are set to do just fine in its debut. Snowflake it is not, but at its current IPO price interval, it is hard to not call Honest a success of sorts — though we also anticipate that its investors had higher hopes. Returning to our question, do we expect the company to reprice higher? No, but if it did, The Exchange crew would not fall over in shock. Read More | | | |
| | Brex, a fintech company that provides corporate cards and spend-management software to businesses, announced Monday that it closed a $425 million Series D round of capital at a valuation of around $7.4 billion. The new capital came less than a year after Brex raised $150 million at a $2.9 billion pre-money valuation. So, how did the company manage to so rapidly boost its valuation and raise its largest round to date? TechCrunch spoke with Brex CEO Henrique Dubugras after his company's news broke. We dug into the how and why of its new investment and riffed on what going remote-first has done for the company, as well as its ability to attract culture-aligned and more diverse talent. Read More | | | |
| Image Credits: Jeff Newton / Hippo | What is the biggest opportunity for proptech founders? How should they think about competition, strategic investment versus top-tier VC firms and how to build their board? What about navigating regulation? We sat down with Brendan Wallace, co-founder and general manager of Fifth Wall, and Hippo CEO Assaf Wand for an episode of Extra Crunch Live to discuss all of the above. Read More | | | |
| Image Credits: emyerson / Getty Images | Software-as-a-Service (SaaS) has perhaps become a bit too interchangeable with subscription models. Every software company now looks to sell by subscription ASAP, but the model itself might not fit all industries or, more importantly, align with customer needs, especially early on. Read More | | | |
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