Vulnerability Workflow: Building Security In

Reflections on Navigating Change and Uncertainty

This week’s discussion with my editor centered around familiar topics – upcoming articles, the podcast’s direction, and the pervasive feeling of inadequacy that accompanies a period of rapid transformation spanning eighteen months. Surprisingly, the latter subject dominated our conversation.

The exchange proved valuable, articulating underlying anxieties often left unsaid and acknowledging the significance of seemingly minor concerns that can become obscured during times of widespread disruption. While I won’t delve into personal introspection, I’ll share a few insights that may resonate with readers of Startups Weekly, given your demonstrated interest in practical advice.

Key Takeaways for Entrepreneurs

• Practice Self-Compassion. The recent pandemic has been a source of confusion, imbalance, and loss for many. Accepting that you may not be functioning at peak capacity is crucial, recognizing that the current global climate is akin to navigating with a precarious light source. Before self-criticism arises, consider the origins of your productivity expectations and their relevance in the present circumstances.
• Recognize Shared Experiences. Despite our individual differences, many of the challenges we face are universal. Overthinking, self-doubt, and both personal and professional insecurities are common human experiences. Acknowledging this shared reality can foster a sense of control amidst uncertainty.
• Embrace Vulnerability. The initial phase of the pandemic fostered connection through platforms like Zoom, offering glimpses into each other’s personal lives. While this openness has diminished with the adaptation to remote work, actively seeking opportunities for vulnerability remains vital. Sharing your voice, even when challenging, can strengthen relationships.

These suggestions, or those offered by other entrepreneurs, ultimately emphasize prioritizing our humanity over professional roles. We are currently living through an extraordinary period, and reducing the stigma surrounding mental health remains a critical objective.

This newsletter also covers a cybersecurity incident impacting the venture capital firm, AfterSquare, and an EC-1 filing related to the events of 9/11. Before proceeding, we are pleased to announce the launch of a new TechCrunch newsletter! This Week in Apps, curated by Sarah Perez, will debut this Saturday, August 7th. Subscribe here to stay informed about the latest app developments. You can always connect with me on Twitter @nmasc_.

Ransomware Attack Targets Venture Capital Firm

A recent ransomware incident has impacted Advanced Technology Ventures, a Silicon Valley-based venture capital firm managing $1.8 billion in assets. The attack resulted in the theft of personal data belonging to approximately 300 of the firm’s limited partners, as initially reported by Zack Whittaker.

This breach compromised sensitive details concerning a typically confidential aspect of venture capital operations. VC firms frequently maintain the privacy of their limited partners (LPs) to preserve a competitive edge and ensure discretion.

The firm might wish to avoid revealing its investors to rivals, while LPs may prefer to keep their investment allocations private.

As Whittaker notes, ransomware groups are increasingly focused on high-value targets, and LP lists have become a part of their strategy. This development necessitates heightened vigilance from other venture capital firms.

Understanding the Financial Ecosystem

The incident highlights the importance of understanding the flow of capital within the tech industry.

Considerations for founders include scrutinizing the funding sources of their VCs.

Furthermore, limited partners represent a crucial, yet often overlooked, element in addressing the diversity challenges within Silicon Valley.

• The origins of VC funding should be a concern for startup founders.
• Limited partners hold a key to improving diversity within the venture capital landscape.
• New initiatives are emerging to broaden participation in direct venture fund investments.

Cybersecurity measures are paramount for all participants in the venture capital ecosystem.

Following Square's Acquisition

The fintech industry experienced significant activity this week as Square finalized the acquisition of Afterpay, a leading ‘buy now, pay later’ provider, in a transaction valued at $29 billion. This agreement, anticipated to be completed in the coming year, will result in the integration of Afterpay’s functionalities within Square’s existing Seller and Cash App platforms.

The news was initially covered by Mary Ann Azevedo, highlighting the increasing competition within the sector. Alex Wilhelm subsequently offered his analysis regarding the rationale behind Square’s valuation of the deal.

Key Takeaways: Numerous companies are now developing their own internal BNPL (Buy Now, Pay Later) solutions. This includes major players such as Shopify, PayPal, and, according to reports, Apple.

While speculation regarding a potential Shopify acquisition of Affirm was widespread, journalist Ryan Lawler provided deeper insights into the implications of this particular transaction for emerging companies.

Matthew Harris, a partner at Bain Capital Ventures, explained to TechCrunch that the BNPL market is becoming increasingly saturated. He believes that “significant scale is necessary for success, and it will prove challenging for new companies to gain substantial traction in the consumer BNPL space.”

Harris suggests that future opportunities within the BNPL model lie in expanding into the B2B sector. There, these services could potentially “substitute or improve upon traditional invoice financing and trade credit arrangements.”

Further reading for fintech enthusiasts:

• The pursuit of profitability by neobanks may pave the way for initial public offerings.
• Robinhood’s status has evolved, now being categorized as a stock.
• Startups can avoid common financial pitfalls to ensure long-term viability.

Understanding RapidSOS and the Future of 911

Danny Crichton, Managing Editor at TechCrunch, recently explored the intricacies of 911 emergency response systems in our latest EC-1, focusing on RapidSOS. This company has secured over $190 million in funding to develop a data platform designed to provide first responders with a wealth of information during critical incidents.

RapidSOS currently manages more than 150 million emergency calls annually. According to Crichton, its technology is likely already integrated into the smartphone you use every day.

Key Takeaways: The evolution of RapidSOS, from its initial challenges to its strategic pivot, demonstrates the impact of legislative delays and the potential for significant progress despite them.

The comprehensive series is structured into four distinct parts:

• Part 1: "Smoking pizza ovens and pilfered dollar bills, or the early story of RapidSOS" – This installment details the company’s origins (2,700 words / approximately 11 minutes reading time).
• Part 2: "RapidSOS learned that the best product design is sometimes no product design" – This section examines the company’s product development and business strategies (3,700 words / approximately 15 minutes reading time).
• Part 3: "How RapidSOS used creative tactics to build partnerships and a BD engine at scale" – This part focuses on the partnership development and business development scaling strategies employed by RapidSOS (4,000 words / approximately 16 minutes reading time).
• Part 4: "After a decade, Congress might finally bring 911 into the internet age" – This concluding section discusses the potential for modernizing the 911 system through legislative action (2,000 words / approximately 8 minutes reading time).

The series provides a detailed look at how RapidSOS is working to improve emergency response capabilities. It highlights the challenges and opportunities in bringing 911 systems into the modern, internet-connected era.

The Importance of Data in Emergency Response

The core of RapidSOS’ innovation lies in its ability to deliver a comprehensive stream of data to first responders. This data can include location information, device details, and even sensor readings, enabling more informed and effective responses to emergencies.

This enhanced data access is particularly crucial in situations where seconds matter. Providing responders with accurate and timely information can significantly improve outcomes and save lives.

Legislative Hurdles and the Path Forward

Despite the technological advancements made by companies like RapidSOS, progress in modernizing the 911 infrastructure has been slow due to legislative stagnation. The series details the difficulties in navigating Capitol Hill and securing the necessary approvals for widespread implementation.

However, there is growing momentum for change. The final installment of the series suggests that Congress may finally be poised to bring 911 into the internet age, paving the way for a more efficient and effective emergency response system.

TechCrunch Updates and Opportunities

Ryan Lawler has rejoined the TechCrunch team! He is collaborating with the ExtraCrunch division to deliver more in-depth coverage of the fintech landscape.

His focus will be specifically on the B2B segment of fintech. This includes startups focused on infrastructure and developer tools for financial services, as well as solutions like corporate cards and spend management.

Seeking Fintech Insights

Lawler is actively seeking perspectives from individuals involved in this space. He welcomes input from employees, investors, customers, and partners of relevant companies.

If you possess valuable insights, please reach out to him directly at ryanlawler.techcrunch@gmail.com.

Exclusive Offer for Readers

A discount code is now available for Extra Crunch subscriptions. Utilize the code EQUITY to receive a favorable rate.

Disrupt Conference Details

The agenda for the Disrupt conference is currently being finalized. Details regarding speakers and the event schedule for September are now accessible.

Tickets for this virtual event are available for purchase. Don't miss the opportunity to participate!

Weekly Highlights

Featured on TechCrunch

• The notion of venture capital’s demise is likely overstated.
• A pioneering Zambian startup has been accepted into YC, focusing on the creation of Africa’s initial card-issuing API.
• Latin American platforms dedicated to reskilling are attracting substantial investment as edtech advances, emphasizing demonstrable results.
• Duolingo is currently developing a mathematics application designed for children.

Noted in Extra Crunch

• Establishing and nurturing strong relationships of trust with investors is a crucial skill for founders.
• The founder of Kodiak Robotics asserts that their concentrated approach on autonomous trucking technology is proving successful.
• Mike Duboe of Greylock Partners details methods for defining growth and structuring an effective team.

Further updates will be shared shortly.

Sincerely,

N