Slice and dice all you want is a seed – TechCrunch

Startups Welcome Weekly, a new human perspective on this week’s startup news and trends. To receive this in your inbox, subscribe here.

There is a clash in the start-up market.

In a world, late-stage investors are reacting to tech stonk corrections by reclaiming the world of early-stage investing, forcing early-stage investors to go even earlier to defend ownership and potential returns. This trend has been underscored by companies like Andreessen Horowitz which launched a pre-seed program months after launching a $400 million seed fund. More so, Techstars, an accelerator literally launched to help startups get started, launched a fund to support companies that are too early for its traditional programming.

All the while, startup investors are enduring a valuation correction and portfolio markdowns. Some admit they are telling portfolio companies to refocus on cash conservation, profitability and discipline, not just growth.

Imagine that these two very different worlds are in the same universe: early investors are getting more disciplined and cash-rich, but at the same time, early investors are going earlier. Investors are pushing founders to be lean but also green, but at the same time, offering them $10,000 to take the PTO for a week and try their hand at entrepreneurship. Growth, gross margin and burn are the new priorities of CEOsbut at the same time, venture capitalists are clamoring to offer more funds, sooner, in newly invented sub-categories of early-stage investments.

There’s a lot going on at once and I worry about the race to the bottom – or the race to the earliest stage – and its consequences. For more thoughts, read my TechCrunch+ article: “If Early Investors Continue Sooner, What Happens?”

In this newsletter, we will talk about news that has to do with Elon Musk, and news that has nothing to do with Elon Musk. As always, you can support me by forwarding this newsletter to a friend, follow me on twitter or by subscribing to my personal blog.

Let’s talk about Elon Musk

As I’m sure many of you are well aware, Elon Musk’s $44 billion bid for Twitter was accepted this week, marking a significant moment in tech history and an impending comeback. in private markets for a fundamental social media platform. We’ve written the entire timeline of Musk’s acquisition, from tweet to closing, but just know that the saga is far from over — the deal isn’t officially done yet.

Here’s why it’s important: I mean, for once, this format doesn’t work because there are way too many angles to explain why Musk’s purchase of Twitter matters. Instead, I’m just going to list a few specific angles that TechCrunch dug into.

And finally, I’m just going to remind you all that Twitter, in its earnings this week, said it had overvalued its users for the past 3 years. By 1.9 million accounts. Shit. It’s a bad look for Twitter, but also bad news for advertisers – a source of revenue the platform relies heavily on. Like Sarah Perez In other words, “for a company as dependent on ad revenue as Twitter currently is, it’s amazing that it would accept a deal that puts responsibility on a free speech absolutist.”

Picture credits: Bryce Durbin / Tech Crunch

Ok, now let’s not talk about Elon Musk for the rest of the newsletter

Yes, we are at this point [insert high–profile news cycle] narrative. First, there are leaks and scoops. Then there are the lightly covered reflection elements. Then there is the major confirmation. Then there are the wild threads and editorials, peppered with more leaks, more scoops and key details. And finally, the stories that want to offer a brief respite from the aforementioned madness. Let’s embrace this last step!

The case of the week, which may have slipped your radar, is that Robinhood is laying off 9% of its full-time staff.

Here’s why it’s important: Robinhood announced its layoffs just days before first-quarter 2022 results, and after seeing its value erode in the public markets. The move therefore seems defensive and the company’s attempt to prove that it is on its way to becoming a more efficient and growth-oriented financial institution. Also in fintech news, PayPal is closing its San Francisco office.

Things get tense:

goldfish jumping into bigger bowl

Picture credits: Orla (Opens in a new window) /Getty Pictures

All week long

Seen on TechCrunch
How Lydia wants to make payments more personal and social

Does it smack of teenage spirit or teenage bankruptcy?

Airbnb is committed to a fully remote workplace: “Live and work anywhere”

AppDynamics Founder’s Midas Touch Strikes Again as Harness Valuation Hits $3.7 Billion

Snap announces a mini drone called Pixy

Seen on TechCrunch+

How to get into Y Combinator, according to YC’s Dalton Caldwell

Please don’t turn your 401(k) into shitcoins

Having Crypto in Your 401(k) Isn’t Irrational or Exuberant

Why Latin America’s Freight Forwarding Opportunity Still Attracts Capital

Loaded with billions of capital, meet today the 9 startups that are developing the batteries of tomorrow

Until next time,

NOT

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