Startups Weekly (Taylor’s Version)

Startups Weekly: A New Perspective on Trends

Welcome to Startups Weekly, offering a human-centered analysis of the latest startup news and developments. To receive this directly in your inbox, subscribe here.

A Historical Context

Let's begin with a brief historical overview if the preceding headline isn't immediately clear.

Taylor Swift is currently re-recording her entire discography, but this isn't driven by simple nostalgia. Swift is undertaking this significant project to regain control over her music, rather than allowing a third-party music label to maintain ownership. The initial re-recorded albums have been released with the annotation “(Taylor’s Version),” allowing dedicated fans to support the artist directly through streaming, rather than benefiting the label that holds the original recordings.

The Startup Parallel: Self-Advocacy and Adaptation

The core startup lesson embedded within Swift’s proactive approach is surprisingly straightforward: 2021 highlighted the importance of self-advocacy and the willingness to reassess one’s perspectives.

Throughout 2021, a noticeable shift occurred as employees began demanding more from their employers. The “Great Resignation” represented more than just recruitment challenges; it signified a deliberate movement by employees to seek more fulfilling, balanced, or different opportunities. Many individuals even chose to pursue independent careers, embracing the creator economy and investing in their own potential. These individuals, much like Swift, prompted reflection on managing and expanding influence as one progresses professionally. Sometimes, this necessitates a complete re-evaluation, akin to re-recording an entire album.

The Power of Unlearning

Effective self-advocacy frequently requires challenging previously held beliefs. Swift revised her stance on her role in music ownership. In 2014, she voiced concerns to the Wall Street Journal regarding streaming, piracy, and file-sharing, asserting that “music is art, and art is important and rare. Important, rare things are valuable. Valuable things should be paid for. It’s my opinion that music should not be free, and my prediction is that individual artists and their labels will someday decide what an album’s price point is.” However, in 2021, Swift shifted her focus from opposing Spotify and Apple Music to prioritizing ownership as a means of establishing value.

This year brought about numerous changes in my own thinking, from redefining unconventional entrepreneurial paths to recognizing when to challenge established norms. My core role – covering emerging fund managers and founders and their unique decisions – remained consistent, but my approach evolved. For instance, I previously believed that questioning founders about their competitors was a reliable indicator of honesty, but now I find it more effective to ask them about their most controversial belief regarding company building – with significantly better results.

A Year of Empowerment

The increasing empowerment of individuals, and the desire to Speak Now, has been a defining characteristic of the year. For a more detailed exploration of what I’ve unlearned about startups this year, please refer to my TechCrunch+ column: “What I unlearned about startups this year.”

Remembering Tyson Clark

Before continuing with the newsletter, I wish to express my deepest condolences to all who knew Tyson Clark, a general partner at GV, who sadly passed away this week at the age of 43. Clark was a leading Black investor in the venture capital industry, and his impactful legacy will be profoundly missed.

Looking Ahead

Today’s discussion will cover diversity in funding, the contrast between climate tech and cryptocurrency, and the emerging creator economy within the trucking industry. You can always connect with me on Twitter @nmasc_ or on Instagram @natashathereporter.

Expanding Investment Opportunities

A noteworthy observation was made by Shila Nieves Burney during the initial closing of the Zane Venture Fund. She noted a distinct lack of representation among individual investors, specifically a scarcity of women and people of color participating as Limited Partners (LPs).

Burney recognized this as a significant issue, expressing concern that continuing to raise capital without addressing this imbalance would disproportionately benefit white men. Consequently, the firm has unveiled a $1 million diverse investor initiative. This initiative dedicates 25 positions within its inaugural fund to LPs who identify as women or people of color.

According to SEC filings, Zane Venture Fund is currently aiming to secure up to $25 million for its first fund. Burney’s allocation, therefore, represents a modest but impactful step toward ensuring a more equitable distribution of the fund’s future profits.

Key Insights: Burney has observed a considerable deceleration in fundraising activity for minority-led emerging managers compared to earlier in the year. This situation echoes the challenges she faced during her initial fundraising efforts in 2018, when diversity was often dismissed as an irrelevant factor by potential investors.

“My approach remains focused on diversity as a core investment principle,” Burney stated. “Although it was a prominent trend recently, the current climate is less receptive. We are actively building a community of LPs who share our vision.”

Further developments in venture capital:

Sequoia is undergoing a substantial restructuring of its fund model, aiming to reimagine the traditional venture capital approach.
The implementation of usage-based pricing is being adopted across the entire company.
Breakout Ventures has launched a new fund totaling $112.5 million, with backing from prominent figures such as Tony Fadell and Chris Sacca.

The Intertwined Fates of Cryptocurrency and Climate Action

The year 2022 is witnessing a significant surge in attention towards the climate sector. Recently, information was obtained regarding the launch of Climactic, a new venture founded by a former Chief Strategy Officer at Lyft and a co-founder of Freestyle Capital.

This new firm is concentrating its efforts on supporting companies that assist larger organizations in achieving their carbon emission reduction targets. The focus is on practical implementation of climate goals.

Key Insights: Kapoor acknowledged that Climactic’s specialized knowledge in climate science is currently less extensive than that of established climate investment firms. Instead, entrepreneurs are primarily seeking assistance with enterprise-level sales, marketing strategies, and pricing models.

They are not typically requesting detailed explanations of complex scientific advancements, such as the commercial viability of cultivated meat. To bridge this gap, the firm has engaged a team of consultants.

These consultants bring experience as former sales and marketing leaders from various companies. This approach facilitates a valuable exchange of ideas between the scientists developing groundbreaking technologies and those skilled in market penetration.

Further Developments:

What regulatory frameworks should be applied to Decentralized Finance (DeFi)?
Ledger is preparing to introduce a cryptocurrency debit card.
The next generation of impactful entrepreneurs is likely to emerge from the climate technology space.
Venture capital plays a crucial role in addressing climate change, but its capabilities are not limitless.

Spotlight on This Week’s Rising Star

This week, we’re highlighting TrueNorth! Founded by Jin Stedge and Sanjaya Wijeratne, this promising early-stage company secured $50 million in funding this year.

Their mission is to provide independent truckers with the tools they need to operate their businesses with greater efficiency.

TrueNorth streamlines processes related to gig discovery, booking, and coordination. It also facilitates payment acceptance and route optimization for its users.

Key Takeaways

While the “business-in-a-box” model may be less prominent in startup pitches currently, it remains a strong and effective approach.

This is particularly true when applied to industries that have been slow to adopt modern technologies.

As discussed on the recent Equity podcast, TrueNorth evokes parallels with the creator economy. The company is strategically positioned for expansion into numerous potentially profitable sectors.

Notable News

Here are some other interesting developments in the startup world:

Andrew Chen (a16z) shared insights on how startups overcome the initial “cold start” phase and achieve sustained growth.
Kwara, a Kenyan fintech company, received $4 million in seed funding from Breega and SoftBank.
The funding will be used to develop a neobank specifically for credit unions.
Deed secured $10 million to further develop its workplace giving platform.
Venture capitalists are showing increased interest in investing in Polygon.

TechCrunch Gift Guide 2021

Image Credits: TechCrunch

This guide presents a curated selection of gift ideas as featured by TechCrunch in 2021.

Book Recommendations from Venture Capitalists

The guide includes reading suggestions from venture capitalists, separated into two categories.

Gift Guide: Top non-business books of 2021, as recommended by VCs.
Gift Guide: The most highly-rated business books of 2021, according to VCs.

Gifts for Outdoor Enthusiasts and Relaxation

Several gift options cater to those who enjoy outdoor activities or seek relaxation.

Gift Guide: Camping equipment that represents a worthwhile investment.
Gift Guide: Nine innovative, high-tech devices for cannabis enthusiasts.

Gifts for Gamers and Remote Workers

The guide also offers suggestions for gamers and individuals working remotely.

Gift Guide: Fifteen gift ideas for gamers, particularly when next-generation consoles are unavailable.
Gift Guide: Eight excellent gifts designed for those in a work-from-home environment.
Gift guide: Eleven gift ideas for individuals who participate in a large number of video conferences.

Smart Home and STEM Gifts

Tech-focused gifts extend to smart home technology and educational toys.

Gift Guide: A complete starter kit for building a smart home.
Gift Guide: Advanced technology to further enhance an existing smart home setup.
Gift Guide: Over twenty STEM toy ideas for young, aspiring engineers and builders.

Gifts for Plant Lovers

A dedicated section highlights gifts for those passionate about plants.

Gift Guide: The best tech gifts available for individuals with a keen interest in plants.

Weekly Tech Roundup

As reported by TechCrunch

Vishal Garg, the CEO of Better.com, has issued an apology to the company’s existing workforce regarding the handling of recent large-scale layoffs, and a planned Special Purpose Acquisition Company (SPAC) deal has been postponed.

Lucid Group, the electric vehicle manufacturer, is currently the subject of an investigation initiated by the Securities and Exchange Commission (SEC).

A new entrepreneur is addressing the challenge of insufficient customer understanding within the cannabis sector.

The viral marketing campaign, “Real Life Squid Game,” created by MrBeast, and the associated costs of such high-profile stunts, are under scrutiny.

The need for a “VP of Nothing” role is being discussed as a response to the changing dynamics of the founder-friendly investment landscape.

Featured on TechCrunch+

The proportion of US venture capital funding directed towards Silicon Valley has decreased to its lowest point in over ten years.

An assessment has been made of Credit Karma’s performance during its first year operating as a part of Intuit, following its acquisition during the COVID-19 pandemic.

Samsara is poised to potentially achieve a valuation of $10 billion or more in an upcoming Initial Public Offering (IPO) focused on the Internet of Things (IoT).

The “Dear Sophie” column addresses two inquiries concerning the resumption of consular appointments.

A strategy of initially pursuing a SPAC merger, followed by a challenge to Amazon Web Services (AWS), is being considered.

It has been a full year since I assumed responsibility for Startups Weekly. My gratitude extends to the many thousands of new subscribers; this community is a particularly rewarding aspect of my work. Echoing a favorite thought leader, “Thank you for dedicating your attention; I trust it was worthwhile, and if not, unsubscribing is perfectly acceptable and will restore your valuable time.”