Early-Stage Reporting and the Allure of Startups

My mother succinctly describes my reporting focus. She says I cover businesses similar to Uber before they evolve into the Uber we know today. Frankly, I find it difficult to dispute that assessment.

There’s a particular satisfaction in tech journalism that comes from highlighting a startup’s narrative prior to widespread recognition. As a reporter concentrating on early-stage companies, I frequently assess the potential of innovative edtech entrepreneurs or novel marketplace concepts.

When I effectively fulfill my role, I aim to identify the distinctive insights that will either propel a startup toward success or present future obstacles.

The EC-1 Series at TechCrunch

One series I consistently appreciate at TechCrunch is the EC-1 – accessible with an Extra Crunch subscription. This series delves into the detailed history of a startup, tracing its journey from inception through all subsequent pivots.

I’ve dedicated the last several months to one of these in-depth projects, and it’s scheduled for release next week!

Previously, you may have read comprehensive reports on StockX and Tonal. Our newest installment has just been published: the Klaviyo EC-1:

• How Klaviyo evolved from a lifestyle venture into a $4.15B email marketing leader (2,600 words/10 minutes)
• Klaviyo’s utilization of data and no-code tools to revolutionize owned marketing strategies (3,000 words/12 minutes)
• The shift in marketing in 2021 towards emotional connection, beyond purely transactional approaches (2,200 words/9 minutes)
• An examination of how startup success doesn’t necessarily require drama or unconventionality (1,900 words/8 minutes)

I encourage you to explore this extensive article. Significant gratitude is owed to Danny Crichton, my co-host on Equity and managing editor at TechCrunch, for his guidance and editorial work on these projects.

Further Updates and Follow Me

The remainder of this newsletter will cover All Raise data, developments in Miami, and a new program you won’t want to overlook. You can find me on Twitter at @nmasc_ for ongoing updates throughout the week.

All Raise Report: A Look at Funding Disparities

All Raise, a non-profit organization focused on expanding the representation of women in the startup ecosystem as both founders and investors, has published its 2020 annual report. The report provides valuable insights, and a key area of focus is the decline in funding received by female founders.

Key Findings from the 2020 Report

The data reveals significant disparities in venture capital funding. Specifically, the report highlights the following:

• Funding rounds secured by women and non-binary founders were, on average, 49% smaller than those obtained by male founders.
• A substantial 85% of all venture funding continues to be directed towards companies with all-male founding teams.
• A majority, 64%, of venture capital firms still lack even a single female partner.
• Black and Latinx female founders collectively receive a mere 0.64% of all venture capital funding, representing a small increase from the previous year.

Understanding the Trends: These statistics were discussed on Equity, where it was noted that while anticipated, the extent of these funding gaps was still concerning, particularly in the context of the shift towards remote investing.

This disparity represents a critical conversation often overlooked during periods of market growth. Tracking these metrics is essential for measuring genuine progress.

Additional Insights and Discussion Points

The All Raise report also touches upon several related issues:

• The problematic practice of gaslighting during the fundraising process.
• A direct appeal to male investors to avoid behaviors that contribute to these disparities.
• Strategies for female founders to navigate fundraising effectively in a virtual environment.
• The importance of thorough due diligence by founders when selecting venture capital partners, to ensure a mutually beneficial relationship.

Proper vetting of VCs is crucial to avoid setting up both founders and investors for potential failure.

The Internet as a Hub for Investment

As articulated by Winnie CEO and co-founder Sara Mauskopf, “The Internet is the new Miami.” The connections forged online, whether through emerging meme trends or platforms like Substack, are increasingly becoming a significant asset within the investment landscape.

Recent developments highlight this shift. Ryan Hoover and Vedika Jain have unveiled Weekend Fund 3, incorporating a $1 million contribution from the community. Simultaneously, Turner Novak, known as Chief Meme Officer, has officially launched Banana Capital’s inaugural fund, backed by $9.99 million in capital.

Novak detailed the influence of an internet-centric approach on his investment decisions.

Although Novak did not specify precise goals or requirements regarding investments in diverse founders, he referenced his previous work at Gelt VC, where 41% of the capital was allocated to companies led by female CEOs. Currently, 65% of Banana Capital’s portfolio companies have founding teams comprised of non-white individuals, and 50% feature teams with multiple genders.

• Within the relatively obscure sector of capital lending, Shopify is leveraging machine learning to provide financial support to startups. The name Shopify Capital itself suggests a strategic alignment, doesn't it?

TechCrunch Updates

The schedule for TC Sessions: Mobility 2021 has been officially released, detailing the events and speakers planned for the conference.

Sydney Thomas will be participating as a judge during the upcoming Disrupt event, evaluating innovative startup ventures.

A recent announcement indicates that TechCrunch’s Equity is nominated for a Webby Award, and voting is now open to the public.

Event Highlights

• TC Sessions: Mobility 2021 agenda details are now available.
• Sydney Thomas joins the judging panel at Disrupt.
• Support Equity by casting your vote for the Webby Awards.

The TC Sessions: Mobility 2021 event promises to be a comprehensive exploration of the future of transportation.

Disrupt will showcase emerging companies and provide a platform for them to gain recognition.

TechCrunch encourages its audience to support the Equity podcast by participating in the Webby Awards voting process.

Weekly Tech Highlights

TechCrunch featured several key developments this week.

Discussions centered on Amazon Web Services' expanding role in blockchain technologies.

Atlassian announced the release of a new Jira product designed to cater to teams of all sizes.

The Consumer Electronics Show (CES) is scheduled to make its return to Las Vegas in 2022.

Microsoft unveiled updated default font choices, prompting reviews and ratings from design professionals.

Extra Crunch Insights

Extra Crunch provided in-depth analysis on a variety of topics.

One article detailed a creative professional’s innovative approach to integrating data into the design process, focusing on analytics.

Another piece explored the factors behind Brex’s significant valuation increase over the past year, more than doubling its worth.

A Critical Situation in India

A severe crisis is currently unfolding in India, and the situation is deeply distressing to observe. The impact on families, friends, colleagues, and the wider population is truly heartbreaking.

Manish Singh, a colleague stationed in India, has compiled a list of various avenues through which donations can be made to provide assistance.

Ways to Contribute

Singh’s report details several organizations and initiatives accepting donations to support relief efforts. These resources offer a means to directly aid those affected by the ongoing crisis.

I will conclude with a quote from Singh:

Until our next update,

N