Slice and dice it as much as you want, that’s a seed round – MovieUpdates

Welcome to Startups Weekly, a fresh, human take on this week’s startup news and trends. To get this in your inbox, subscribe here.

There is a clash going on in the early phase of the market.

In one world, late-stage investors respond to tech-stank corrections by yelling at the early-stage investment world, forcing novice investors to go even earlier to defend property and potential returns. This trend was underlined by companies like Andreessen Horowitz, which launched a pre-seed program months after launching a $400 million seed fund. In fact, Techstars, an accelerator literally launched to help startups get off the ground, introduced a fund to support companies that are too early for their traditional programming.

While all that is going on, early stage investors are persisting a valuation adjustment and portfolio write-downs. Some admit to telling portfolio companies to refocus on cash preservation, profitability and discipline, not just growth.

Let’s pretend these two vastly different worlds are in the same universe: early stage investors are getting more disciplined and cash rich, but at the same time the earliest investors are going earlier. Investors are pushing founders to be lean but also green, but at the same time offer them $10,000 to take the PTO and try out entrepreneurship for a week. Growth, gross margin and burn are the new top priorities for CEOsbut at the same time, venture capitalists are pushing to offer more funds sooner in newly invented subcategories of early stage investments.

There’s a lot going on at once and I’m concerned about the race to the bottom – or race to the earliest stage – and its consequences. For more thoughts, read my MovieUpdates+ piece: “If the earliest investors move ahead, what will happen?”

In this newsletter we will talk about news related to Elon Musk and news unrelated to Elon Musk. As always you can support me by forwarding this newsletter to a friend, follow me on twitter or subscribe to my personal blog.

Let’s talk about Elon Musk

As I’m sure many of you know all too well, Elon Musk’s $44 billion dollar bid was accepted on Twitter this week, marking a huge moment in tech history and an imminent return to private markets for a fundamental social media platform. We’ve written down the entire timeline of Musk’s acquisition, from tweet to closing, but we know the saga is far from over — the deal has yet to be officially closed.

Here’s why it’s important: I mean, for once this format doesn’t work because there are way too many angles as to why Musk’s purchase of Twitter is important. Instead, I’ll list some specific angles MovieUpdates has dug into.

And finally, let me remind you all that Twitter, in its earnings this week, said it has overestimated its users for the past 3 years. By 1.9 million accounts. Jesus. It looks bad for Twitter, but also bad news for advertisers – a revenue stream that the platform heavily relies on. if Sarah Perez it said, “for a company as reliant on ad revenue as Twitter currently is, it’s a wonder why they would agree to a deal that puts a free speech absolutist in charge.”

Elon Musk with twitter wings

Image Credits: Bryce Durbin / MovieUpdates

Okay, let’s not talk about Elon Musk for the rest of the newsletter

Yes, we are at that point of the [insert high–profile news cycle] story. First, there are the leaks and shovels. Then there are the somewhat obscured thoughts. Then there is the Great Confirmation. Then there are the heartfelt wild discussions and op-eds, sprinkled with more leaks, more firsts and important details. And finally, the stories that aim to offer a brief respite from the aforementioned madness. Let’s embrace this last phase!

The deal of the week, which may have slipped under your radar, is that Robinhood will lay off 9% of its full-time workforce.

Here’s why it’s important: Robinhood announced its layoffs just days before its first quarter 2022 earnings, and after its value fell in public markets. So the move seems defensive, and the company’s attempt to prove it’s on track to become a more efficient and growth-oriented financial institution. Also in fintech news, PayPal is closing its office in San Francisco.

Things get tense:

Goldfish jumps into a bigger bowl

Image Credits: orla (Opens in a new window) / Getty Images

during the week

Seen on MovieUpdates
How Lydia wants to make payments more personal and social

Does it smell like teenage ghost or teenage bankruptcy?

Airbnb focuses on a completely remote workplace: ‘Living and working everywhere’

AppDynamics founder’s Midas touch strikes again as armor valuation hits $3.7 billion

Snap announces mini drone Pixy. at

Seen on MovieUpdates+

How to get into Y Combinator, according to YC’s Dalton Caldwell

Please don’t YOLO your 401(k) in shitcoins

Having some crypto in your 401(k) isn’t irrational or lavish

Why Latin America’s Freight Opportunities Still Attract Capital

Meet the 9 startups developing tomorrow’s batteries today

Until next time,

N

Show Love ❤️