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{"id":16995,"date":"2023-01-20T22:56:58","date_gmt":"2023-01-20T22:56:58","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/01\/20\/techcrunch-roundup-valuation-reset-spiking-crypto-losses-us-insurtech-meltdown\/"},"modified":"2023-01-20T22:56:59","modified_gmt":"2023-01-20T22:56:59","slug":"techcrunch-roundup-valuation-reset-spiking-crypto-losses-us-insurtech-meltdown","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/01\/20\/techcrunch-roundup-valuation-reset-spiking-crypto-losses-us-insurtech-meltdown\/","title":{"rendered":"TechCrunch+ roundup: \u2018Valuation reset,\u2019 spiking crypto losses, US insurtech meltdown"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2022\/04\/05\/techcrunch-roundup-valuation-reset-spiking-crypto-losses-us-insurtech-meltdown\/<\/a><\/br>
\nTechCrunch+ roundup: \u2018Valuation reset,\u2019 spiking crypto losses, US insurtech meltdown<\/br>
\n2023-01-20 22:56:58<\/br><\/p>\n

\n

If you want to launch a startup in the middle of a downturn, don\u2019t be spooked.<\/p>\n

Not only is it easier to hire during a correction, founders are under less pressure to deploy blitzscaling tactics that can mask underlying problems in product and marketing.<\/p>\n

And as the global venture market slows down slightly<\/a>, many investors are dialing back their usual growth expectations for seed-stage startups, which gives founders more freedom to develop customer relationships and acquisition strategies. Seed-stage funding in Q1 2022 was flat from the previous quarter, but compared to a year ago, it was up 45%.<\/p>\n

\n

Full TechCrunch+ articles are only available to members
Use discount code TCPLUSROUNDUP<\/strong><\/a> to save 20% off a one- or two-year subscription<\/i><\/p>\n

\n

According to Andy Stinnes, general partner at Cloud Apps Capital Partners, the current \u201cvaluation reset\u201d is an opportunity for early-stage founders<\/a>.<\/p>\n

Right now, Stinnes says VC firms are prioritizing \u201cthe high-growth B- and C-stage companies that raised substantial cash and operate at high burn rates.\u201d<\/p>\n

But for companies in the $4 million-$5 million ARR range, a $15 million Series A might still make sense, he writes.<\/p>\n

\u201cConversely, if you raise a $4 million-$6 million Series A at a more modest valuation, it gets much easier to reach the goal for a 2x-2.5x valuation step up to the Series B.\u201d<\/p>\n

You will find a lot of stories in the next few months directing your attention to the idea that the saggy stock market is a wet blanket for once-hot startup valuations, and that\u2019s a fact. That is why founders should concentrate on reaching product-market fit and building community, instead of trying to stack a Series A round tall enough to get reported in TechCrunch.<\/p>\n

Thanks very much for reading,<\/p>\n

Walter Thompson
Senior Editor, TechCrunch+
@yourprotagonist<\/a><\/p>\n

Twitter Space: \u201cHow to Pitch Me,\u201d with Mayfield Partners\u2019 Arvind Gupta<\/h2>\n

\"\"<\/p>\n

This afternoon at 2:30 p.m. PT\/5:30 p.m. ET, I\u2019m hosting a Twitter Space with Mayfield Partner Arvind Gupta<\/a> to discuss pitch strategies and techniques for early-stage founders.<\/p>\n

More than just a discussion of basic best practices, we\u2019ll also talk about some of the most common mistakes first-time founders make, and how investors prefer to be approached these days.<\/p>\n

Even if you\u2019re not starting up at the moment, this chat will be a great opportunity to pick up some useful information. I hope you\u2019ll join the conversation!<\/p>\n

To get a reminder, click here<\/a>.<\/p>\n

4 critical relationships that will help your startup succeed<\/h2>\n
\"four<\/p>\n

Image Credits:<\/strong> malerapaso (opens in a new window)<\/span><\/a> \/ Getty Images<\/p>\n<\/div>\n

Every founder understands the importance of getting closer to investors and mentors, but that\u2019s not the whole story.<\/p>\n

Reaching out to people \u201cwho truly need what you\u2019re offering but are unhappy with your product\u201d will uncover actionable feedback, says TMV Partner Darshan Somashekar.<\/p>\n

To better understand how your products and services fit into the marketplace, he recommends forging relationships with computer science department heads, bootcamp directors, Twitter\u2019s tech community, and finally, your nearest competitors.<\/p>\n

\u201cI believe in building a relationship with my rivals,\u201d Somashekar says.<\/p>\n

International startups shrug off US insurtech meltdown<\/h2>\n
\"\"<\/p>\n

Image Credits:<\/strong> Nigel Sussman (opens in a new window)<\/span><\/a><\/p>\n<\/div>\n

Insurtech has had a rocky time lately. Publicly-traded companies have been hammered, and early-stage startups are seeing their valuations decline accordingly.<\/p>\n

But as a whole, the pace of investments in the sector isn\u2019t falling behind, as highlighted recently by the number of insurtech startups in emerging markets in YC\u2019s W22 batch, wrote Alex Wilhelm and Anna Heim in The Exchange.<\/p>\n

\u201cThis also explains why startups hoping to write their own policies shouldn\u2019t be dismissed too quickly after all \u2014 if they are focusing on emerging markets and improving access to insurance.\u201d<\/p>\n

3 things you can do right now to support Ukraine\u2019s IT sector<\/h2>\n
\"\"<\/p>\n

Image Credits:<\/strong> Anna Fedorenko \/ Getty Images<\/p>\n<\/div>\n

Since Russia invaded Ukraine on February 24, many startups based in the war zone have found ways to continue operating.<\/p>\n

Emmy Gengler, CEO of Softjourn, which has offices in California, Poland and Ukraine, identified three ways the\u00a0international community can help sustain Ukraine\u2019s technology ecosystem:<\/p>\n