Bootstraps are coming, bootstraps are coming – TechCrunch

Welcome to Startups Weekly, a new first-person interpretation of this week’s startup news and trends. To receive it in your inbox, sign up here.

Bootstrap startups, or companies that use their own revenue or existing cash flow to finance growth instead of relying on external sources of capital, are in a very separate box from venture-funded startups. By the nature of the asset class, bootstrap startups prioritize revenue to keep themselves alive, while venture-backed startups prioritize growth to maintain investor adherence for future catwalk needs. Bootstrap companies follow a less exponential growth curve, while venture-backed companies must be an outlier.

It goes into a downward phase and both sides get a little more interesting. The inherent business discipline of bootstrap startups may seem particularly recession-proof as overfunded companies announce rounds of layoffs. As the firm begins to be more interested in the stable fundamentals of the startup group, is it time for the bootstrapper to take a quantum leap?

According to co-founder Cavan Klinsky, Healthie, a payment processor for healthcare companies, now seemed like the right time to get on the venture capital “treadmill” after six years of bootstrapping.

“If you are a starting business that is not yet in [venture] treadmill, do you have that kind of option or that ability to choose when to move forward, “he said. bootstrap… you can be very opportunistic about when is the right time.

For my full interpretation, read my TechCrunch + column: Will Once-Started Startups Turn into Adventure During a Watershed Moment?

In the remainder of this newsletter, we’ll come into play on Honey for the real world and behind some significant layoffs occurring in the tech industry. As always, you can support me by forwarding this newsletter to a friend or following me on Twitter.

Deal of the week

If Pogo got his way, you’d get paid every time you stroll down Market Street in San Francisco. Or check your email. Or open its app. The only problem is that in exchange you give your personal data to consumer-centric fintech. In other words, Pogo wants to give users money in exchange for their data.

I delved into the startup, which just raised a $ 12.3 million seed round led by Josh Buckley and a previously unannounced $ 2.5 million pre-seed round, and its goals for TechCrunch this week.

Here’s why it’s important: Pogo will have an intimate window into someone’s life, from where they live at their favorite bar to the number of subscriptions they have. It’s similar to what a bank would see, but it’s a venture-backed startup that it wants to trust.

The Electronic Frontier Foundation, a non-profit organization that has defended civil liberties in the digital world since 1990, describes the idea of ​​exchanging data for money as “data dividends.” In one essay, the organization urges consumers to rethink whether getting money for their data really solves the imbalance that exists between users and businesses.

The EFF asks a number of questions, such as who will determine the cost of certain data and what makes your data valuable to businesses? Also, what does the average person gain from a data dividend and what does he lose in exchange for that extra money?

IPhone Security: iPhone image with green background

Image credits: Getty Images

The layoffs continue

There have been a number of significant layoffs this week, not limited to but including:

Here’s why it’s important: This format hardly works for layoff coverage, because it’s clear why people losing their jobs are an important dynamic to cover. The most recent news, which I’ll talk about next week, is that we’re seeing the founders conducting two rounds of layoffs in quick succession.

Slice of burnt bread, rightly toasted and plain on a yellow background.

Image credits: jayk7 (Opens in a new window) / Getty Images

If you missed last week’s newsletter

Read it here: “Great resignation meets great reset meets (Great rush … and lower those ratings please).” I also recorded an accompanying podcast with my co-author of the piece, Anita Ramaswamy, which you can hear here: “A Niche Aspect of Startup Employee Compensation, Explained.”

Any requests for topics to explore, both on Startups Weekly and on the show? Tweet me a great question and I’ll check it out, both on an upcoming Startups Weekly and on the podcast.

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Seen on TechCrunch +

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Ok! I’m going to the mountains. Until the next time,

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