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Tag: EC How To

  • Here's what to know to raise a Series A right now | TechCrunch

    Here's what to know to raise a Series A right now | TechCrunch

    There is good news and just “OK” news.

    The good news is that the venture capital market is showing signs of stabilizing. The bad news is that raising a series A will continue to be difficult for founders, especially as venture firms face liquidity problems, higher interest rates, and pressure from their limited partners to be more cautious in their dealmaking.

    In 2020, TechCrunch+ reported that founders should start fundraising when they have at least six months of runway left and that they should budget fundraising to last at least three months, with a one-month prep time to a two-to-six week pitch process with investors.

    Today, Jesse Randall, the founder of the platform Sweater Ventures, said founders should start looking to raise a Series A when they have about 12 to 15 months of cash runway left.

    “Don’t wait any longer than that,” he told TechCrunch+. “The fundraising cycle, once you start it, takes twice as long and requires three times the conversations.”

    Leslie Feinzaig, founder of Graham & Walker, says she primarily invests in pre-seed and seed rounds but tells her founders they should start focusing on their business at least 12 to 18 months before fundraising a Series A. This includes understanding their business model, connecting with the proper investors, and stress testing their readiness. The advice investors gave for a Series A this year shows how little and how much everything has changed in the market: Metrics will always be important, but starting early for this longer journey is key.

    “In this market, you have to prep for an A way in advance,” Feinzaig told TechCrunch+, adding that it could be fruitful to do so right after closing a seed round. “Time goes by fast, and in my experience, this catches a lot of founders unaware. Focus on your metrics immediately.”

    It’s an investor market out there

    This year is set to be much different than last year, Randall said.

    Dominic-Madori Davis

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  • Company executives can ensure generative AI is ethical with these steps | TechCrunch

    Company executives can ensure generative AI is ethical with these steps | TechCrunch

    Marc founded Faculty to help organizations make better decisions using human-led AI. For over 10 years, he has worked with government agencies and leading brands to implement impactful AI solutions.

    It’s becoming increasingly clear that businesses of all sizes and across all sectors can benefit from generative AI. From code generation and content creation to data analytics and chatbots, the possibilities are vast — and the rewards abundant.

    McKinsey estimates generative AI will add $2.6 trillion to $4.4 trillion annually across numerous industries. That’s just one reason why over 80% of enterprises will be working with generative AI models, APIs, or applications by 2026. Businesses acting now to reap the rewards will thrive; those that don’t won’t remain competitive. However, simply adopting generative AI doesn’t guarantee success.

    The right implementation strategy is needed. Modern business leaders must prepare for a future managing people and machines, with AI integrated into every part of their business. A long-term strategy is needed to harness generative AI’s immediate advantages while mitigating potential future risks.

    Businesses that don’t address concerns around generative AI from day one risk consequences, including system failure, copyright exposure, privacy violations, and social harms like the amplification of biases. However, only 17% of businesses are addressing generative AI risks, which leaves them vulnerable.

    Making good choices now will allow leaders to future-proof their business and reap the benefits of AI while boosting the bottom line.

    Businesses must also ensure they are prepared for forthcoming regulations. President Biden signed an executive order to create AI safeguards, the U.K. hosted the world’s first AI Safety Summit, and the EU brought forward their own legislation. Governments across the globe are alive to the risks. C-suite leaders must be too — and that means their generative AI systems must adhere to current and future regulatory requirements.

    So how do leaders balance the risks and rewards of generative AI?

    Businesses that leverage three principles are poised to succeed: human-first decision-making, robust governance over large language model (LLM) content, and a universal connected AI approach. Making good choices now will allow leaders to future-proof their business and reap the benefits of AI while boosting the bottom line.

    Carrie Andrews

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  • Defy the odds, create a unique niche, and succeed beyond the hype | TechCrunch

    Defy the odds, create a unique niche, and succeed beyond the hype | TechCrunch

    Art Kraisingkorn
    Contributor

    Touchapon “Art” Kraisingkorn is Amity’s co-founder and chief technology officer. Art earned his MBA at the University of Cambridge and spent five years at IBM.

    There’s a common narrative that repeats itself in the tech industry. A burgeoning startup emerges with a groundbreaking concept, successfully attracts incredible VC funding, and skyrockets to unicorn status. The company then fails to deliver sustainable profit and falls from glory in a few short years (or even months, in some cases). Despite the relative slowdown in VC activity, that story has still played out over the last year and usually comes to the same ending: 90% of startups fail, 10% of which succumb within the first year.

    While the numbers paint a grim picture, one thing we recognize as innovators is that every challenge harbors a unique solution. In many cases, it isn’t the funding that holds entrepreneurs back but rather a hyper-fixation of rapid growth and flashy technology. This leads to a disregard for solving core business challenges, ultimately resulting in a lack of stability and long-term profitability. It’s critical to shift this approach and prioritize providing replicable solutions to relevant issues before investing in alluring technology products.

    Suppose the objective is to introduce an innovative solution to new, niche problems in a manner previously unseen in the market. In that case, you don’t need to be bold — you need to be daring enough to believe in your company’s clairvoyance and knowledgeable enough about the space you’re in to hold firm to that level of self-confidence, even in the face of intense headwinds.

    Here’s how to start your own category to solve niche problems

    Identify your unique value proposition

    When faced with seemingly insurmountable odds or a potential windfall investment, what is most important is that you stay true to your company’s mission.

    The most beloved and valued companies built categories where none existed to offer solutions that others couldn’t even imagine. There’s a reason why Apple has maintained its presence as the most valuable company on Earth: The emergence of the iPhone came at a time when users needed to carry their iPods, cell phones, laptops, and planners individually. For the first time, there was a single device that could be all of these items.

    Contrast that to a product like Threads, which offers a simple alteration of an existing product and has failed to maintain users. The sales pitch of “We offer the same product as what’s already in the market, just a little bit different” is far weaker than “Here’s a solution that didn’t exist before.” In my career helping brands connect with their communities on their platforms, I have witnessed how this strategy reaps greater rewards than copying existing solutions.

    In 2018–2019, I started a journey to take on traditional social giants and provide an alternative way for brands to develop online brand-centric communities. At the time, Facebook had several infamous scandals around misuse of personal data, so Amity set out on a mission to improve and democratize social networks, hoping to build them in a better form that fosters positive user interaction while respecting user data privacy.

    Carrie Andrews

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  • Use LinkedIn to raise a Series A | TechCrunch

    Use LinkedIn to raise a Series A | TechCrunch

    Katie Konyn is a principal at Publicize. Originally from the UK, she resides in Colombia and has long been passionate about the positive impact that startups, particularly in the medical space, can make.

    Daniela Restrepo
    Contributor

    Daniela Restrepo is a tech and business journalist and VP at Publicize, a public relations firm empowering tech companies.

    With investment activity reaching a three-year low in Q2 of 2023, it’s clear that we’re deep in the midst of a funding winter.

    However, founders with their Series A on the horizon are facing especially tough odds. Seed startups in the U.S. were least affected by the funding downturn as investors opted for smaller deals against more costly late-stage rounds. While this was good news in the short-term for new startups, there are now more seed-stage companies than ever in the pipeline and the average funding time between seed and Series A has stretched to 25 months.

    Having a stellar pitch deck will encourage investors to bet on your idea, but how can you convince anyone without first securing a meeting?

    In 2023, founders will need to actively court the attention of investors to get their foot in the door. LinkedIn provides an extremely valuable resource here. With more than 950 million professional members worldwide, the platform offers a vast database that can be used to research potential investors, build new connections and nurture these relationships with a methodical process that will directly set the stage long before it’s time to raise your Series A.

    Here we’ll break down a strategic four-step approach that will help to boost your reach and visibility with investor networks on LinkedIn.

    Grow your network of investors

    While it’s likely you already have several investors in your network, the first stage of the process will focus on increasing this pool significantly. A study exploring the success of job hunters on LinkedIn found that networking with weak ties (a larger set of people you know less well) resulted in more jobs than strong ties. For founders preparing to fundraise, the same science holds.

    Not every request will result in a new connection, but with patience and consistency, your pool of investors will begin to grow.

    As with any lead generation process, the ability to track progress and measure results is going to be central to this strategy. This means the first order of business is to compile a comprehensive database of potential investors.

    Take your time with research here. With LinkedIn, you have access to an immense directory, therefore uncovering a wide range of investors who are relevant to your startup won’t be achieved on the first couple of search returns. Starting with the most obvious keywords such as “investor” + “industry” is a logical starting point but you’ll want to get creative with your search queries beyond this. For example, many investors look to support founders from a specific background or fund startups that align with a certain impact cause, but finding these kinds of synergies will require you to cast your net wider by using the advanced search function.

    Carrie Andrews

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