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Some startup investors are so uncertain about the current economic environment that they are reluctant to send us their forecasts (this never happens). Others tell us, however, that they are seeing the huge market fluctuations and all the downstream effects of the novel corona virus that will create a great environment for long-term betting in the coming weeks. Why?
“As other investors leave the market, the terms of the contract improve, competition is less fierce, (many investors) can do more due diligence, and many companies are built that have great growth prospects and they will survive the global pandemic,” Danny Crichton explained Extra Crunch after calling his sources. "It is the VC equivalent of buying (actually) low and selling high. "
Founders should expect large haircuts (20 to 30%), he concludes, but should find many investors given the explosion in VC funding in recent years – provided the company's fundamentals show a way to long-term success. This was communicated by many other investors to Sarah Buhr in a follow-up report in the file.
Are you still trying to understand the overall economic picture of the virus and its global impact? Danny has teamed up with Alex Wilhelm to put this theinformationsuperhighway launch into the market for the past few months.
Would you like to try remote first fundraising? Natasha Mascaren has spoken to a number of VCs about how they do business through Zoom (note: if anything, mostly for early stage investments).
On this point, our employees agree this week that most investors will ultimately want to meet you in person before making the big decision. Because they will continue to work with their portfolios long after this pandemic.
Will the corona virus lead to unlimited data for everyone?
Some ISPs today are ready to temporarily simplify pricing and lift data caps to avoid closing the public in emergencies – and this is generally expected without overloading their networks and destroying their business models. If the public sees that the big monopolies / duopoles in the store can easily handle all the additional traffic without the aggressive pricing system it contains, do they stand for the return to the old upper limits?
This is the intriguing argument that Devin Coldewey made in theinformationsuperhighway this week. He believes the pandemic could lead to a more accessible and connected world for everyone. In fact, at least one FCC commissioner is thinking about the same thing.
Zapier and YouNeedABudget share important tactics for remote first start
“We found that the product was delivered, customers seemed happy, more customers came, sales came, and the team was happy. All the things you're looking for to say, "Yeah, that's good …" nothing seemed to be hampered by that (lack of office). So we looked at it and said, "You know what? I think this distant thing … we should just do it. & # 39; "
This is Wade Foster, CEO of Zapier, who shares the backstory of how the company has grown to 300 employees for web app integration. In a detailed interview about Extra Crunch with Greg Kumparak, he breaks the development – and shows an internal tool that is structured like Slack, but not minutes for weeks to help solve strategic communication problems. Fittingly, it's called Async.
Greg also spoke to YouNeedABudget's Jesse Mecham about his 115-strong remote team. "You get talent," was the big selling point for him. "You get the best talent. It is such a game changer. We can compete with large companies that have a much larger recruitment budget because we take people's locations into account. It's such a win for us, and I really hope that the big ones … you know, Apple, Microsoft, Facebook and the like, they have a lot of different offices, but I really hope that they will never accept it completely distant because smaller teams give us less cash an opportunity to address another factor in terms of work-life balance. Yes. It is by far the mindset. "
We have more tips this week, including a general guide on how to help employees transition remotely and a security guide for remote workers.
Be curious about the ongoing reporting. theinformationsuperhighway's editorial team has been at the forefront throughout the decade, and we've made it a focus as the industry as a whole has recently moved in that direction.
Yes, theinformationsuperhighway events are affected
For those who attended our personal events and wondered what we're going to do …
- TC Early Stage (San Francisco, originally April 28) was postponed to Hilton Union Square for July 21.
- TC Sessions: Mobility (San Jose, originally May 14) was postponed to October 6 at the San Jose Theater.
The interruption is also planned for September 14th to 16th in SF. However, we are reviewing all the options you can think of.
However, we actively accept applications from startups for Mobility's Pitch Night event.
We hope to see you in person later this year! This page provides regular updates to event schedules based on the pandemic's progress.
In the course of the week
Edtech startups are preparing to become “not just a teaching tool, but a necessity”.
How to buy your startup back from a technology giant like WeWork
Why so many robot startups fail and what can be done about them
Dear Sophie, should I get married or emigrate because of my achievements?
Startup founders build businesses on WhatsApp
All startups that are threatened by the new features of iOS 14
China Roundup: Enterprise Tech gets a sustainable boost from the outbreak of the corona virus
How the information system industry became business software
Equity Monday: breakers, starting rounds and startup ratings
How the outbreak of the corona virus startup will be subjected to a stress test
We discussed the following: