Hiring vs. Runway: What Startups Focus on Now

The Shifting Focus for Startups: From Runway to Recruitment

Initially, as the COVID-19 pandemic spread globally, discussions with venture capitalists consistently centered around a common theme. Investors described a process of evaluating their existing portfolio companies to determine how best to support them during the crisis. While a complete halt to new investments wasn't explicitly stated, the prevailing sentiment was a shift towards internal focus rather than seeking new opportunities.

The conversation invariably led to the topic of runway – the amount of capital available to sustain operations before potential closure. This became a primary concern for founders, with VCs advising careful spending. One company, ClearCo, even developed a product to assist founders in securing funds anticipating a decline in traditional investment, and has since achieved unicorn status.

A Year Later: A New Challenge Emerges

Over a year has passed, and the term "runway" is rarely mentioned in industry discussions. Venture capital has experienced substantial growth, attracting new investors and witnessing record-breaking fund formations. With companies now securing follow-on funding in weeks rather than years, a new source of tension has arisen within the startup ecosystem.

NEA partner Ann Bordetsky succinctly identified this new challenge: “It’s easy to raise and hard to hire.”

Bordetsky, who recently joined NEA, emphasized that the primary focus of advice for founders in the coming months will be talent acquisition. She stated, “Figure out your unfair advantage for hiring the best talent.” Recognizing that not all companies can attract top-tier candidates, she believes that successful hiring will be a critical determinant of success. Essentially, “how to hire” has replaced “how to conserve runway” as the central concern.

The Intensifying Competition for Talent

Securing talent has always presented a challenge for startups, which typically have fewer resources compared to established companies like Facebook, capable of offering substantial signing bonuses. However, founders are reporting that recruitment is becoming increasingly difficult due to the rise of numerous well-funded startups boasting impressive valuations.

This trend has been developing for some time, and its prominence is expected to continue growing, particularly given the current context of the Great Resignation.

• Guidance on hiring your initial product manager
• A guide for non-technical founders on recruiting their first engineer
• Strategies for hiring and structuring a growth team
• Common pitfalls startups encounter when determining compensation for hybrid employees
• Mike Duboe of Greylock explains defining growth and team building
• Arguments for companies adopting a work-from-home model
• The evolution of remote work: from Work From Home to Work From Anywhere

Further in this newsletter, we will examine the growth and resilience of Nuro, discuss OnlyFans’ recent significant announcement, and highlight the emergence of the first women’s health unicorn. Your support is appreciated through following me on Twitter @nmasc_ and sharing this newsletter with colleagues.

Nuro EC-1: A Deep Dive

The combination of silent operation and fully autonomous delivery is not commonly associated, except when discussing the innovations of Nuro. This article provides an in-depth examination of the autonomous vehicle startup, founded by individuals previously involved with Google’s self-driving initiative, as it establishes its presence in the market.

Key takeaways: A four-part investigative series details Nuro’s journey to achieving a $5 billion valuation, encompassing collaborations with Domino’s and navigating complex regulatory landscapes. The series was authored by Mark Harris and overseen by editor Kirsten Korosec.

Exploring the Series:

• Part 1: “How Google’s self-driving car project accidentally spawned its robotic delivery rival” – This installment recounts the company’s origins (3,200 words / approximately 13 minutes reading time).
• Part 2: “Why regulators love Nuro’s self-driving delivery vehicles” – This section focuses on the regulatory acceptance of Nuro’s technology (2,400 words / approximately 10 minutes reading time).
• Part 3: “How Nuro became the robotic face of Domino’s” – This part details the strategic partnership with Domino’s Pizza (2,500 words / approximately 10 minutes reading time).
• Part 4: “Here’s what the inevitable friendly neighborhood robot invasion looks like” – This final section provides a glimpse into the practical implementation and future of Nuro’s delivery services (2,500 words / approximately 10 minutes reading time).

The Nuro EC-1 represents a significant step forward in autonomous delivery technology.

Understanding Nuro’s Development

The company’s genesis is rooted in the experiences of its founders within Google’s ambitious self-driving car project. A unique opportunity arose, leading to the creation of a dedicated entity focused on robotic delivery.

Regulatory approval has been a crucial factor in Nuro’s success. Authorities have shown a willingness to embrace the technology, recognizing its potential benefits.

The partnership with Domino’s has been instrumental in showcasing Nuro’s capabilities. It has provided a real-world testing ground and increased public visibility.

Ultimately, Nuro envisions a future where autonomous robots become a common sight in neighborhoods, seamlessly delivering goods and services. This represents a shift in the landscape of last-mile delivery.

The Potential Shift in OnlyFans' User Base

OnlyFans, a content subscription service where creators provide exclusive material to their subscribers, recently declared its intention to prohibit explicit content. Although the platform wasn't initially designed solely for adult material, it gained significant prominence and financial success largely due to its association with such content.

Consequently, this decision was unexpected by many, who believe OnlyFans’ growth is fundamentally linked to the provision of adult entertainment.

Key takeaways from the announcement: The move to restrict explicit content is widely perceived as a response to difficulties in securing external investment, information that surfaced earlier this week through disclosed financial data. Pressure from financial institutions reportedly compelled OnlyFans to prioritize more generally acceptable content.

My colleague, Lucas Matney, offered his perspective on the situation.

Matney’s analysis included these points:

• Effective regulation of cryptocurrency is vital for establishing its credibility on a global scale.
• The cryptocurrency market is currently displaying indications of positive momentum.
• Twitter has appointed a cryptocurrency developer to spearhead the development of ‘bluesky,’ a decentralized social networking initiative.

A Landmark Achievement in Women’s Health: Maven Reaches Unicorn Status

This week’s discussion on Equity centered around a significant event in the technology sector: a company focused on women’s health, led by a female founder, has achieved unicorn status through a financing round spearheaded by women investors. This historic milestone, accomplished by Maven and its founder Kate Ryder, underscores the substantial and growing market for women’s health solutions.

Key takeaways include: The recent influx of capital positions Maven, a digital clinic and benefits provider specializing in women’s health, to evolve into a broader platform. It is anticipated that the company will demonstrate the interconnectedness of women’s health with overall well-being. Expansion of the services offered to a wider demographic, including family care, is already underway.

Maven’s success challenges the notion that women’s health represents a limited or specialized market segment.

The company’s trajectory suggests a strategic shift towards highlighting the universal implications of addressing women’s healthcare needs.

Further exploration of the digital health landscape:

• The potential for substantial growth within the hormonal health sector is considerable – what opportunities remain for unicorn-level companies?
• For emerging health tech companies, the question arises: is it more effective to develop telehealth infrastructure internally or to acquire existing solutions?
• Establishing a robust advisory board is crucial for health tech startups; how can this be effectively achieved?

TechCrunch Updates and Events

Several key announcements have been made regarding upcoming TechCrunch events and notable speakers.

Featured Speakers and Sessions

Daniel Dines, the CEO of UiPath, will be a featured guest at TC Sessions: SaaS. His presentation will focus on RPA (Robotic Process Automation) and the broader landscape of automation technologies.

TechCrunch is also offering affordable student passes for TC Sessions: SaaS 2021, making the event accessible to a wider audience.

Disrupt 2021 Agenda

The agenda for the Disrupt Stage at TechCrunch Disrupt 2021 in September has been officially unveiled. Attendees can expect a diverse range of presentations and discussions.

Breakout Sessions

A series of special breakout sessions have been scheduled for TechCrunch Disrupt 2021, providing opportunities for more focused learning and networking.

Notable Guest: Seth Rogen

Actor and entrepreneur Seth Rogen will be participating in TechCrunch Disrupt. He will be discussing his ventures within the cannabis industry.

These events promise valuable insights into the latest trends in technology, entrepreneurship, and emerging markets.

Weekly Highlights

Featured on TechCrunch

• An emerging fintech sector deserving of your attention.
• Spotify’s plan to allocate $1 billion towards share repurchase.
• Elon Musk’s update regarding the development of the Tesla Bot.
• Salesforce’s initial integrations with Slack following the $28 billion acquisition.
• The unexpected revival of the Yik Yak application.

Highlights from Extra Crunch

• A comprehensive guide to corporate development and deal-making.
• Insights from a venture capitalist on five often-unmentioned aspects of pitching to VCs.
• Expanding the reach of consumer subscription software into outdoor activities.
• How Chicago-based startups capitalized on the shift to Zoom for VC pitches.
• An analysis of the implications of Brazil’s new receivables regulation for fintech companies.

Will we reconvene at the usual time and location next week? Excellent.

N