According to Crunchbase, more than 17,000 tech workers have lost their jobs since the beginning of this year. That’s painful, but for perspective: TechCrunch tracked more than 100,000 tech layoffs between August and December 2008.
In my experience, founders and investors often come out of events like these unscathed on the other side. For employees below the line, though, unexpected layoffs can be life-changing: One former product manager you used to work with now sells residential real estate, and another works in public health.
This is a time to be cautious: Update your resume, redial your summer vacation plans, and start adding more to your rainy day fund.
As I said earlier, if your name isn’t appearing on your company’s presentation deck team slide, this is a time to be cautious: update your resume, redial your summer vacation plans, and start adding more to it. its rainy day. background.
Building a business is a high-risk endeavor, so here’s a promise: I won’t approve articles with advice on navigating this recession. unless the author has direct experience with the subject.
Before Karl Alomar became managing partner at venture capital firm M13, he led one company through the dot-com crash of 2000 and helped another survive the Great Recession of 2008.
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“The key difference between 2022 and previous recessions is that this contraction was long anticipated, whereas previous recessions were much more sudden,” he says.
Alomar shared eight things entrepreneurs need to consider in this environment, including his high-level advice that anyone fundraising should have at least two years on the runway.
“Investors are likely to remain on the sidelines for the most part as markets settle and a new set of comparable multiples settles,” Alomar said. “This could take a little time.”
On Wednesday, June 29 at 2:30 pm ET, Karl Alomar will join me in a Twitter space to share more strategic tips for fundraising during a recession. To get a reminder, follow @techcrunch Y @techcrunchplus.
Thanks so much for reading; I hope you have a great weekend.
Senior Editor, TechCrunch+
Dear Sophie, How do we handle being completely remote when it comes to immigration?
Our fully remote start-up is looking to fill several new engineering positions.
We have not gone through the immigration process with employees before, and a couple of potential employees will require visas.
One currently has an H-1B visa and lives in Dallas. Another candidate currently lives in Germany and wants to work from Miami.
What should we take into account before hiring these engineers? How do we handle being completely remote when it comes to immigration?
— Distributed and Determined
Growth Marketing Experts Survey: How Would You Spend a $75,000 Budget in the Summer of 2022?
As entrepreneurs began to turn the lessons learned at bootcamps into basic best practices, startups have begun giving growth marketers more respect and resources over the past decade.
Here’s the good news: Managers can’t cut their respect budget. Unfortunately, to maximize ROI, every dollar now needs to stretch further than Reed Richards in the latest “Doctor Strange” movie.
This time, we asked four experts to tell us how they would handle a $75,000 budget and what advice they would give to someone with only $10,000 to spend:
- Ellen Kim, VP Creative, MarketerHire
- Jack Hallam, Growth and Community Leader, Ammo
- Jonathan Metrick, Chief Growth Officer, Portage Ventures
- Jonathan Martinez, Founder, JMStrategy
Pitch Deck Deardown: Lunchbox’s $50 Million Series B Deck
Lunchbox CEO Nabeel Alamgir co-founded the company with Andrew Boryk and Hadi Rashid to give restaurants a way to create and manage delivery and takeout online without paying high fees to delivery platforms.
It has since expanded to create tools for ghost kitchens and restaurant chains, creating a comprehensive digital stack for foodservice.
In February 2022, the team raised a $50 million Series B, and we have their full 15-slide deck, including a case study, two compelling issue slides, and several data points that helped investors envision their way to an exit.
Venture capitalists flock to TikTok to reach the next generation of founders and investors
Investors are turning to social media as they expand the top of their talent funnel, reports Dominic-Madori Davis.
On TikTok, founders and venture capitalists interact directly with a global audience, leading to acquisitions, funding rounds, and the democratization of information that has historically been in the hands of insiders.
“These are really smart, capable young people who are going to do great things in the future,” said Arra Malekzadeh, partner at Craft Ventures.
“I want to capture their interest and attention early in their lives, so that when they decide to become entrepreneurs or investors, I’ll be someone they can turn to.”
As Markets Dip, Government Tech Spending Steady: How Can Investors Take Advantage?
Federal technology spending is expected to remain steady even as a recession looms, and investors and startups should take advantage of this opportunity, write Josh Mendelsohn and Mike Ference, co-founders of Hangar.
“Current government spending, much of which will only start moving into states as they complete their legislative sessions this summer, means companies have a once-in-a-decade (or more) opportunity to enter a funded market in search of new ideas.”
Given that the infrastructure spending bill included $110 billion for more than 4,300 projects, “for investors, it’s an incredible opportunity to support the next wave of innovation.”