Tech Talent Crunch: Early-Stage Startup Challenges
Tech Talent Shortage and the Rise of No-Code/Low-Code Solutions
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The technology sector is currently experiencing a substantial shortage of skilled professionals. Developers are in high demand and command significant salaries, and the scarcity of data scientists is even more pronounced.
Some industry observers believe that the increasing adoption of remote work arrangements could potentially alleviate this supply and demand disparity. Indeed, a growing number of early-stage startups are embracing a remote-first approach to operations.
The Appeal of Remote Work
Many of these companies originated during the COVID-19 pandemic and have consistently valued the expanded talent pool that remote hiring enables. This allows them to recruit individuals from across the globe.
However, should a more geographically dispersed workforce prove insufficient to address the challenges companies face in attracting and retaining technical expertise, promising developments are emerging.
No-Code and Low-Code Platforms Gain Traction
The related concepts of no-code and low-code development are attracting considerable venture capital investment. Publicly traded companies exploring these technologies are also demonstrating noteworthy outcomes.
Could the answer to the demand for extensive coding skills be the elimination of coding requirements altogether?
Exploring Alternative Development Approaches
- No-code platforms allow users to build applications without writing any code.
- Low-code platforms minimize the amount of code required, utilizing visual interfaces and pre-built components.
These platforms offer a potential pathway to address the talent gap by empowering a wider range of individuals to participate in the development process. They can also accelerate development cycles and reduce costs.
— Alex
TechCrunch Top 3
The leading three stories from TechCrunch today represent the distinct stages a startup navigates: initial development, preparation for exit, and the exit itself. These phases encompass everything from product refinement to eventual public offering.
Early Stage: Funding and Growth
A growing trend against traditional venture capital is gaining momentum internationally. Mary Ann recently covered Divibank, a Brazilian company providing revenue-based financing to startups, securing $3.6 million in seed funding led by Better Tomorrow Ventures (BTV).
Analysts suggest Divibank has the potential to become the Clearbanc equivalent within the Latin American market.
Late Stage: Pre-IPO Positioning
Companies raising pre-IPO funding typically signal their intention to enter the public market. Lyst, a fashion e-commerce application based in London, has announced an $85 million funding round specifically designated as pre-IPO capital.
This announcement generates significant anticipation regarding a potential public listing for the company.
Exit Stage: Going Public
Bird is pursuing an initial public offering through a Special Purpose Acquisition Company (SPAC). Detailed coverage of this development, including a financial analysis, can be found here and here respectively.
A restructuring of its business model is contributing to a reduction in financial losses for the scooter company, positioning it for a public debut.
Startups and Venture Capital Funding
A significant number of funding events were reported by TechCrunch within the past day, indicating robust activity in the startup ecosystem. The following represents a selection of the most noteworthy developments.
Recent Funding Rounds
- Pomelo Secures $9 Million for LatAm Fintech Payment Infrastructure: The development of robust financial technology infrastructure is a substantial undertaking on a global scale. Consequently, it’s unsurprising that companies focused on this challenge are attracting investment. Pomelo has successfully raised $9 million to address the needs of the rapidly evolving fintech landscape in Latin America.
- Collective Gains $20 Million to Support Self-Employed Professionals: The path to independent work, while appealing, presents considerable challenges, despite the enthusiasm surrounding platforms like Substack. Collective is positioning itself to capitalize on this by providing a platform designed to streamline the operational aspects of running a small, independent business. This funding round, including investment from Ashton Kutcher’s venture capital firm, reflects a strong belief in the potential of the creator economy.
- Stampli Raises $50 Million in Series C for Invoice Management: The recent $50 million Series C funding round for Stampli is particularly notable. This represents a substantial increase – approximately 50% – over the total capital the company had previously secured. This surge in investment suggests significant momentum and investor confidence in Stampli’s invoice optimization software.
- Planck Obtains $20 Million Growth Round for Insurance Data Analytics: Planck, a platform specializing in data analytics for the insurance sector, has secured $20 million in a growth round. The company gathers and provides valuable data to commercial insurance providers. This new capital, sourced from investors including 3L Capital and Greenfield Partners, will facilitate further expansion and development.
The continued flow of venture capital into these diverse areas highlights the ongoing innovation and investment within the startup world. These companies are addressing critical needs across various sectors, from fintech to the creator economy and corporate finance.
The Significance of Public Offering Routes for Unicorn Companies
A recent episode of TechCrunch’s Equity podcast featured a conversation between Natasha Mascarenhas, Alex Wilhelm, Yext CFO Steve Cakebread, and Latch CFO Garth Mitchell.
The discussion, titled “The morality and efficacy of going public earlier,” centered on the various avenues startups are utilizing to become publicly traded companies.
The panel evaluated the advantages and disadvantages of each approach, with a particular focus on the consequences for both employees and overall business functionality.
Cakebread articulated a perspective on market timing, stating, “I think when money’s chasing money, you don’t want to be the last guy holding the money. You want to be the chase.”
Given that Latch is presently pursuing a public listing through a SPAC (Special Purpose Acquisition Company) and Yext completed a traditional IPO (Initial Public Offering) several years prior, the insights shared were largely based on practical experience.
The conversation offered a comparative analysis, grounded in real-world examples rather than purely theoretical viewpoints.
You can find the original article here: https://techcrunch.com/2021/05/12/for-unicorns-how-much-does-the-route-to-going-public-really-matter/
(Access to exclusive content and resources for founders and startup teams is available through Extra Crunch, our membership program. Sign up details can be found here.)
Big Tech Inc.
Let's examine recent developments concerning some of the most prominent companies in the technology sector. We have three key updates to share with you today.
Firstly, Waymo is experiencing a departure of significant personnel, and these exits are becoming increasingly visible. According to reports, both the Chief Financial Officer, Ger Dwyer, and the Head of Automotive Partnerships and Corporate Development, Adam Frost – both long-serving executives – are set to leave the company this month.
These departures follow that of the company’s previous CEO.
This suggests that fully autonomous driving may remain a future prospect for the time being.
Secondly, a story that surfaced yesterday, though initially missed in our newsletter, has garnered substantial attention. After observing its performance in TechCrunch analytics throughout the day, we felt it crucial to bring it to your attention. Rita’s article, titled “Prime today, gone tomorrow: Chinese products get pulled from Amazon,” details the removal of numerous Chinese retailers from the Amazon marketplace.
The combined gross merchandise value (GMV) of the suspended accounts exceeds one billion dollars, according to the report.
These changes at Amazon are noteworthy, and are likely causing confusion among consumers.
Finally, Salesforce continues to expand its involvement in the no-code movement, further solidifying its position in this growing field. The company’s efforts in this area are becoming increasingly widespread.
