New VC Rules, AI Biotech Investor Survey, Instagram Ads Case Study • TechCrunch
When a cat is afraid, it can hide under the sofa; a frightened fish will swim in a dark hole. And when we humans feel uncomfortable, we tell ourselves stories.
Case in point: “Growth at all costs” is a fairy tale made possible by cheap money that helped VCs set expectations for founders, and each other, for years.
“Growth at all costs” is a fairy tale made possible by cheap money that helped venture capitalists set expectations for founders—and each other.
Similarly, “everyone needs 18-24 months of track” is a good motto, but when it takes three times as long to raise a round as it used to, it may no longer be helpful advice.
“These ‘VCisms’ born of an era of abundance have permeated boardrooms and investor gatherings everywhere,” Rebecca Mitchem, a partner at Neotribes Ventures, notes in a TechCrunch+ post this morning.
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“It’s time to ask ourselves if these VCisms are still relevant or if it’s time for a change.”
In a data-driven article looking at post-money valuations, deal sizes and dilution rates dating back to 2012, Mitchem says we are now heading into a new era where the tech industry will embrace “growth at reasonable costs.”
Founders can continue to dilute their ownership by chasing big rounds, or they can decide to grow more slowly, leaving everyone involved with a larger stake over time.
“While it may seem counterintuitive, given the recent market environment, the value of capital for all parties—investors, founders, and employees—is higher in the most conservative growth scenario,” says Mitchem.
Thank you very much for reading TC+ this week,
Editorial Manager, TechCrunch+
6 investors discuss why AI is more than just a biotech buzzword
AI and machine learning are widely used by biotech companies to reduce R&D spend and get products to market faster, but “the bigger question for investors is to better understand what exactly the AI is trying to model and predict,” says Shaq Vayda, director of Lux. Capital.
In her latest investor survey, Anna Heim spoke to six biotech investors about where AI creates value, near-term market changes, and how they would like founders to approach them:
- Robert Mittendorff, MD, General Partner and Chief Health Care Officer, B Capital
- James Coates, director of health and human performance, Decisive Point
- Shaq Vayda, Principal, Lux Capital
- Franck Lescure, partner, Elaia Partners
- Francisco Dopazo, General Partner, Humboldt Fund
- Sarah Guo, Founder, Conviction
Which Instagram ad placement is more profitable: Reels, Feed Posts or Stories?
Consumer-facing startups are spending more on platforms like TikTok and Instagram to reach customers, but which ad products perform the best?
In a case study based on Instagram campaigns for a site that facilitates bookings for independent beauty professionals, digital marketer Angelina Liparteliani analyzed Instagram Reels, News Posts, and Stories.
His highly detailed breakdown includes examples of the ads used in various campaigns, the process he used to optimize creatives, and a cost-per-click analysis showing how he reduced CPC from $1.51 to 17 cents.
“Definitely don’t chase trends,” advises Liparteliani. “Diversify your ad strategy, try different ideas, and don’t give up if your ad doesn’t show results right away.”
Launchpad Teardown: MedCrypt’s $25 Million Series B Platform
Many medical devices are just as vulnerable to cybersecurity threats as other IoT products, which is why Y Combinator grad MedCrypt builds software to protect patients.
The company predicts that manufacturers will need to secure $1 trillion worth of “new and legacy” devices over the next three years, a tempting TAM indeed.
After drafting some customer adoption details, the MedCrypt founders shared with TC+ the 12-slide deck that helped raise a $25 million Series B:
- deck slide
- problem slide
- Target Audience/Market Size Slide
- opportunity slide
- mission slide
- White paper slide: Vulnerability Tracking
- Product Slide: Behavior Monitoring
- Product Slide: Cryptography
- Product Slide: MedISAO
- team slide
- abstract/traction slide
Dear Sophie: When can I register my employee for the H-1B lottery?
We are a start-up company thinking of sponsoring an H-1B visa for one of our first employees to stay in the US and work for us.
How does the process work?
— Searching in San Mateo
A guide to navigating your first 90 days as a new CISO
I’m used to working under pressure, but taking a job as a chief information security officer sounds extraordinarily stressful: people are much more likely to hear about your failures than your successes.
Managing the cybersecurity needs of an entire organization is “a big job that touches almost every part of the organization,” says Heather Gantt-Evans, CISO at SailPoint.
He has written a guide for incoming CISOs that contains a framework for setting goals, creating action plans, and most importantly, documenting risk.
“The first 90 days of a new CISO’s tenure are critical,” writes Gantt-Evans. “They’re the best opportunity you’ll ever have to do your research, gather documentation, and assess where things are and how they can be improved.”
In a turbulent market, it’s time to be methodical with sales
Many SaaS sales teams haven’t worked in an environment where so many customers are cutting back, and it shows: When everyone’s in the buying mood, it’s less important to develop a critical understanding of your customers’ needs.
“Sellers shouldn’t jump right into promoting features,” advises Steve Goldberg, Salesloft’s chief revenue officer. “They should illustrate the unsustainable nature of a customer’s current behaviors and processes.”
In this post, Goldberg discusses MEDDPICC and design thinking, two sales methodologies that are “particularly effective when times get tough.”