Save your equity, LatAm crypto survey where the runway ends – TechCrunch

Money does not need to be protected from sudden vibrations or direct sunlight, so the term “dry powder” strikes me as a bad metaphor for the piles of cash that investors dropped on startups just a few months ago.

“What’s crazy about me is that some of these companies are still in their infancy, backed by very large companies that have ventured into this business,” said Elizabeth Yin, a general partner and co-founder of Hustle Fund, which is pre-seed-focused. .

“An extra $ 200,000 or $ 500,000 would not do anything with a billion-dollar fund even if it went awry.”

Rebecca Szkutak interviewed Yin and Kirby Winfield, founder of General Partner at Ascend, about the sudden, urgent funding requests they have recently received from founders with short runways.

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“I had a cross on my desk yesterday where a brand VC led the seed, which they now call a pre-seed,” Winfield told TechCrunch.

“I know this company. I know they picked up a seed and a seed round and now come back and say, it was seed, and now we’re breeding a seed.”

With more investors happy to wait for things, a traditional three-month fundraising timeline could span six. Or even longer.

As a result, entrepreneurs are stuck with potentially unwelcome alternatives, such as lowering their valuations and / or accepting flat and down rounds.

On Monday we will run columns with practical advice to explore both of these scenarios. In the meantime, have a great weekend, and thank you so much for reading.

Walter Thompson
Editor-in-Chief, TechCrunch +
@ your main character

10 steps to handle layoffs with respect

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As I have written before, I reject most of the guest columns we receive, especially those that explain basic best practices. However, rules are designed to be broken.

This 10-point guide to managing layoffs with empathy and respect can help inexperienced executives find their way through the worst part of running a startup: letting people go.

“People will remember this day for the rest of their lives,” said Nolan Church, co-founder and CEO of Continuum, former head of Carta and talent manager at DoorDash.

“They can remember it in one of two ways: Either you surprised them with bad news and treated them like cattle, or you did everything you could to look for them and help them navigate to the next chapter.”

How to protect your equity if you are laid off

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Note, start-up workers: The same people who welcomed you on board when you signed your offer letter are now looking for places to save money so they can keep the company afloat.

Reducing the number of employees is another way for entrepreneurs to reclaim equity, as many workers who have been laid off will not have enough money to exercise all the options earned. When these options expire, they go back to your (former) employer.

If you are working for a startup that expands the traditional 90-day workout window after graduation, count your blessings.

If you do not, this TC + guest post provides helpful advice on budgeting, negotiating, and strategizing to save hard-earned equity.

5 investors explain why Latin America is ready to make it through the crypto winter

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Even as a group of crypto companies continue their catastrophic collapse, “investors supporting DeFi startups in Latin America are positioning themselves for a rebound,” reports Anna Heim.

She surveyed five investors who have invested in companies in the region’s crypto and DeFi sector to learn more about how their ethos has changed since the winter began and why consumer adoption in LatAm is stronger than in other markets:

• Matias Nisenson, co-founder, DeFi Wonderland
• Christine Chang, Head of Business Development and Ventures, Tribal
• Patricio Jutard, co-founder and general partner, Newtopia VC
• Claire Diaz-Ortiz, Chair of the Startup Committee, VC3; scout, Little Perkins
• Andy Areitio, general partner, TheVentureCity

Dear Sophie: Questions about green cards and EB-2 priority dates

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Dear Sophie,

I’ve been on an H-1B since 2011. I have an EB-2 I-140 approved with a priority date in April 2015. I’m Indian by birth, so I know I’ll have to wait a long time to get a green card.

As an experienced cybersecurity expert, I believe I can qualify to apply for an EB-2 NIW. Will there be any benefit to applying for an EB-2 NIW now?

– Idealistic from India

The experiment with forced feeding of start-up companies at a late stage is about to end

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It’s not your fantasy: After a deluge, venture capital has stopped counting.

According to CB Insights’ State of Venture Q2 2022 report, global risk financing fell by 23% quarter on quarter, the second largest fall in a decade.

Megarunder larger than 100 million dollars received an ugly blow: In the fourth quarter of 2021, they accounted for six out of every 10 dollars invested in private market capital. In the second quarter of 2022, it fell to 47%.

“It’s a fad for the times,” writes Alex Wilhelm.

Pivot your startup in a bear market: Become undeniably fundable

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Every founder is currently looking for ways to save money, but a laser focus on saving money instead of creating efficiency will only delay the inevitable.

In July 2022, investors will not support companies that cannot demonstrate skills in five basic KPIs, according to Kraig Swensrud, founder and CEO of Qualified.

“We will not return to the sugar level of the last decade anytime soon, but with integrity, strong leadership and operational efficiency, we can not only survive but also thrive.”

Pitch Deck Teardown: Forethoughts $ 65M Series C tires

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Last month, corporate reporter Ron Miller spoke with Forethought CEO Deon Nicholas about the pitch tire his company used to take a $ 65 million Series C round in 2022.

This week, Forethought shared 23 slides with us for analysis, including an eye-catching advisor / investor slide that includes Gywneth Paltrow, Sean “Diddy” Combs and Robert Downey, Jr.