immigration law

Bootstrapping basics, fintech’s future, tech employers gain advantage • ZebethMedia

By zebethcontrolPosted on November 15, 2022Posted in EC roundup, Fintech, immigration law, Startups, tech layoffs, Venture, venture capitalNo Comments

Are you planning to play League of Legends during your next investor pitch? (If so, reading this probably isn’t a good use of your time.) For founders who are interested in building on their own, maintaining control and staying off the fundraising treadmill for as long as possible, investor/entrepreneur Marjorie Radlo-Zandi sets out five basic principles for bootstrapped founders in her latest TC+ article. It’s not for everyone: self-funded companies will ask more from their employees than larger operations that offer free lunches and other perks. At one bootstrapped startup where I worked, I was asked to defer part of my salary — after I was hired. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription Radlo-Zandi covers the basics with regard to hiring, managing expenses and shaping company culture, but she also urges self-funders to tamp down expectations and take a measured approach: “Don’t be tempted to hop on a plane at a moment’s notice to meet potential customers in glamorous locations or for meetings in far-flung locations,” she writes. “Your bootstrapped business likely will not survive such big, optional financial outlays.” Bootstrapped founders face longer odds, but if they can drive growth and reach product-market fit, “fundraising will be that much easier.” Thanks very much for reading, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist The power pendulum is swinging back to employers, isn’t it? Image Credits: AOosthuizen (opens in a new window) / Getty Images More than 120,000 tech workers have lost jobs so far this year, according to layoffs.fyi. And with more than a fifth of those layoffs taking place in November, many from well-capitalized public companies, it’s easy to see why Continuum CEO Nolan Church believes this is the beginning of a wave. “Over the last 12 years, the pendulum between who has power between employees and employers has drastically swung toward employees,” he said last week on the ZebethMedia Equity podcast. “Now, we’re in a moment where the pendulum is swinging back.” Answers for H-1B workers who’ve been laid off (or think they might be) Group of young adults, photographed from above, on various painted tarmac surface, at sunrise. Sophie Alcorn, an immigration law attorney based in Silicon Valley, estimates that 15% of the people recently laid off from Bay Area startups are immigrants, 90% of whom are H-1B holders. If you’re a visa holder who’s been laid off, your first priority is to “figure out your last day of employment, because that’s when you need to start counting the 60-day grace period,” says Alcorn. “You either get a new job, you leave, or you figure out some other way to legally stay in the United States, but you have to take some action within those 60 days.” Nearly 80% of venture funds raised in just two states as US LPs retreat to the coasts Image Credits: Bryce Durbin / ZebethMedia After the pandemic began, there was a lot of buzz about how venture capital was shifting away from its roots in San Francisco and New York to make inroads into the Midwest. But after an extended slump in public markets led so many investors to sit on the sidelines, data show that “most funds outside of the two largest startup hubs… are feeling the frost from potential LPs,” reports Rebecca Szkutak. “So far this year, 77% of capital has been raised in just California and New York. In 2021, those states raised 68% of the year’s totals.” Preparing for fintech’s second decade: 4 moves your firm must make now Image Credits: Emilija Manevska (opens in a new window) / Getty Images According to consultant Grant Easterbrook, fintech startups that hope to succeed over the next few years must be prepared to go up against: Major banks and financial service providers with loyalty programs and “super apps.” Emerging DeFi protocols “that can offer financial products that involve real-world assets.” Banking, invoicing, lending, payments, accounting packaged as “embedded financial products.” Multiple countries issuing their own Central Bank Digital Currency (CBDC). “Your firm will need a very strong value proposition to compete with all four types of competitors,” writes Easterbrook, who shares his ideas for navigating the next decade of fintech in a TC+ guest post.

Answers for H-1B workers who’ve been laid off (or think they might be) • ZebethMedia

By zebethcontrolPosted on November 11, 2022Posted in Dear Sophie, EC Future of Work, H-1B visa, immigration law, Layoffs, Sophie Alcorn, StartupsNo Comments

According to layoffs.fyi, more than 23,000 tech workers have been laid off so far this month. For comparison, the site tracked 12,463 layoffs in October. Facebook’s parent company Meta announced the first major job cuts in its history this week, eliminating 11,000 jobs. Like Twitter, Stripe, Brex, Lyft, Netflix and other tech firms based in the Bay Area, many of the employees impacted are immigrants on worker visas. An unexpected layoff introduces an element of chaos into anyone’s life, but when an H-1B worker loses their job, a loud clock starts clicking: unless they can land a new position or change their immigration status within 60 days, they are required to leave the country. And because tech companies at every size are enacting hiring freezes and planning more cuts, their ability to live and work in the U.S. is suddenly in question. Earlier today, I hosted a Q&A for foreign tech workers who have been laid off (or think they might be) with Silicon Valley-based immigration lawyer Sophie Alcorn. Alcorn, who writes “Dear Sophie,” a weekly advice column for ZebethMedia+, shared general information for visa workers and hiring managers who are looking for talent. If you’re a visa holder who’s been laid off, your first priority is to “find a lawyer and figure out your last day of employment, because that’s when you need to start counting the 60-day grace period,” said Alcorn. “You either get a new job, you leave, or you figure out some other way to legally stay in the United States, but you have to take some action within those 60 days.” Start looking now for new opportunities, she advised, as it will take a new employer time to submit paperwork to U.S. Citizenship and Immigration Services. “The best-case scenario would be that this new company files your new change of employer petition and USCIS receives the paperwork on or before the 59th day since your last day of employment,” said Alcorn. “It takes at least three weeks to prepare everything,” which means candidates and employers must move quickly as the days count down. “You probably need a signed offer around day 33,” she said. Based on her experience, Alcorn estimated that 15% of the people laid off from Bay Area startups are immigrants, 90% of which are H-1B holders. Below, you’ll find answers to several of the questions we received [edited for space and clarity]. I was laid off while I was abroad, but my lawyer advised me to travel back on ESTA, which I did. Do the 60-day grace period still apply? Sophie Alcorn: If you’re in the United States on ESTA after being laid off while abroad, you’re not in H-1B status anymore. You need to leave the country to get a new H-1B and try to come back in and start working. You don’t have the 60-day grace period anymore; you’ve abandoned it. The only thing you can do to change or extend your status if you’re in the United States on the Visa Waiver Program for 90 days on ESTA is get married to a U.S. citizen and have them sponsor you for a green card. It needs to be a real, good-faith marriage. You have to intend to share a life together, you have to demonstrate that your families know each other, that you do romantic comedy things together and have the photos to prove it. And the government’s going to check in two years to see if you’re still married. I am currently on an OPT and have an H-1B approved, but not activated. Can I change employers without going through the lottery right away? Or would my H-1B need to be activated first? You can actually change employers without [doing so]. When you’re interviewing for jobs, you need to make it very clear to the HR person that you think you are eligible for an H-1B change of employer, and you really need their immigration lawyers to take a close look, because essentially, what you will need is a change of status from F-1 or OPT to H-1B within the United States, as well as a change of employer.

H-1B worker layoffs, cyber risk quantification, SaaS whiplash • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in cybersecurity, EC roundup, immigration law, Layoffs, Startups, TechCrunch Disrupt 2022, VentureNo Comments

Dear Sophie, I was laid off and I’m on an H-1B. I have enough savings to survive for a while. What should I do if I have been let go from my job? I am on an H-1B, have an approved I-140 and an I-797 that expires in March 2024. If I have to leave the U.S., can my current I-797 be transferred to my next employer? Are there any issues I should be aware of? — Upended & Unemployed The seasons won’t change for another 43 days, but in San Francisco, it already feels like winter. As an offshore weather system brings gusts and downpours, local employers like Twitter, Lyft, Stripe, Brex, Opendoor and Chime are laying off thousands of employees. This week, Meta will reportedly announce the first large-scale staff cuts in its history. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription For tech workers who are immigrants, this is an especially fraught time, as their ability to remain in the U.S. is conditional on their employment. Most visa holders have a 60-day grace period after an unexpected layoff, but with thousands of skilled workers hitting the market at once, the clock is ticking. We usually run Silicon Valley-based immigration attorney Sophie Alcorn’s column on Wednesday, but in light of current events, we ran it yesterday (without a paywall). First order of business: if you’ve been impacted, don’t delay. Start looking now for a new position, and tell everyone in your network that you’re open to work. “At a job interview, be direct about your need to transfer your H-1B to a new employer. If the company is not willing to sponsor you, move on,” advises Sophie. “Ideally, you should accept a job offer no more than 45 days into your 60-day grace period unless you have applied for another fallback status because it can take several weeks to prepare and file the H-1B transfer.” Brace yourself: more layoffs are coming. Update your resume, save as much money as you can, and most importantly — don’t panic. Thanks for reading, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist 2023 will be the year of cyber risk quantification Image Credits: Olemedia (opens in a new window) / Getty Images Myriad factors determine a company’s valuation, and cybersecurity is one of them. Public companies that experience a breach tend to see a -3.5% drop in stock value after the news goes public. That’s why cyber-risk quantification (CRQ) “has slowly grown from a nice-to-have to become the foundation for addressing the most critical concerns about a business’ cybersecurity posture,” writes John Chambers, founder and CEO of JC2 Ventures. How ButcherBox bootstrapped to $600M in revenue Mike Salguero at ButcherBox’s dry ice factory Grocery delivery service ButcherBox ran a Kickstarter campaign in 2015 to identify customers who wanted to receive 100% grass-fed beef. Since then, the company “has seen $600 million worth of revenue without taking a penny of external investment,” reports Haje Jan Kamps, who spoke to CEO and co-founder Mike Salguero about how the founding team bootstrapped their D2C startup. “I was meeting meat farmers in parking lots, buying a couple of trash bags full of meat — I’m sure that didn’t seem sketchy at all,” he said. “But it was too much meat for my freezer, so I ended up selling the excess meat to friends or people I was working for.” New data show how SaaS founders have been dealing with whiplash from public markets Image Credits: puruan / Getty Images According to OpenView Venture Partners’ 2022 SaaS benchmarks report, “an overwhelming majority of respondents are slashing spending regardless of cash runway.” In this year’s survey, which covered 660 companies, OpenView operating partner Kyle Poyar and senior director of growth Curt Townshend found that “the rule of 40 is back,” as the need to generate profits has overtaken investors’ obsession with growth. “Achieving 40 each quarter is not required,” they concluded. “But it is required to have a grasp on what caused a drop or spike, and what can be done to get to 40 long term.” How to land investors who fund game-changing companies Image Credits: Kelly Sullivan / Getty Images A SaaS startup can conceivably find product-market fit within a few months of launching, but companies that work with hardware and robotics may wander in the pre-revenue wilderness for years. To learn more about how investors approach risk when it comes to emerging technology, Tim De Chant moderated a panel at ZebethMedia Disrupt with Milo Werner (general partner, The Engine), Gene Berdichevsky (co-founder and CEO, Sila) and Erin Price-Wright (partner, Index Ventures). “Hire people to do the technical stuff,” said Berdichevsky. “Keep an eye on it, but then go learn the other pieces.”

How can I stay in the US if I’ve been laid off? • ZebethMedia

By zebethcontrolPosted on November 7, 2022Posted in Column, Dear Sophie, EC Column, EC DEI, Government & Policy, immigration law, Sophie Alcorn, Startups, tech layoffs, Verified Expert - lawyerNo Comments

Sophie Alcorn Contributor Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives. More posts by this contributor Dear Sophie: How can students work or launch a startup while maintaining their immigration status? Dear Sophie: How can early-stage startups improve their chances of getting H-1Bs? Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies. “Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.” ZebethMedia+ members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off. Dear Sophie, I was laid off and I’m on an H-1B. I have enough savings to survive for a while. What should I do if I have been let go from my job? I am on an H-1B, have an approved I-140, and an I-797 that expires in March 2024. If I have to leave the U.S., can my current I-797 be transferred to my next employer? Are there any issues I should be aware of? — Upended & Unemployed Dear Upended, I’m so sorry to hear you’ve been laid off, and the stress this has no doubt added to your life! Your questions are top of mind in light of the thousands of others being laid off from Twitter, Facebook, Stripe, Brex, Lyft, and other tech companies. I realize this can be an incredibly stressful time. It is my personal life mission to help immigrants to have peace of mind, including being able to stay in the United States, keep their families safe, and build their dreams of making the world a better place. I am so happy to have the opportunity to share my advice through this column! The good news is U.S. Citizenship and Immigration Services (USCIS) allows a 60-day grace period to remain in the U.S. if you lose your job while on an E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, or TN visa. And we can turn your 60-day grace period into a total of eight months of immigration runway — it is possible to extend your time in the U.S. beyond 60 days by filing a change of status from H-1B to another category such as a visitor, student, or dependent spouse. When individuals who need visa sponsorship get laid off, we often hear their highest priority is to maintain their ability to stay in the United States beyond the 60-day grace period, especially if they own a home, have a spouse, or have dependent kids in school. Often people ask me what they need to do if they can’t get a job that offers visa sponsorship within the 60-day grace period or how they can finally follow their heart to explore their own startup ideas. Here are my recommendations for how to stay in the United States, as well as options and opportunities you should keep in mind. To work for another company, start interviewing NOW! Unfortunately, you cannot transfer your current I-797 to your next employer. However, you can transfer your H-1B to your new employer following the H-1B application process. If you are approved, you will receive a new I-797. Put all of your efforts into finding another job. Get as many interviews as you can. Reach out to everyone in your network — friends, family, former colleagues, co-workers, neighbors, and acquaintances. Take advantage of social media and attend networking events. Also, take a look at where venture capital is flowing these days; companies that are receiving Series A funding or above are likely hiring. At a job interview, be direct about your need to transfer your H-1B to a new employer. If the company is not willing to sponsor you, move on. Ideally, you should accept a job offer no more than 45 days into your 60-day grace period unless you have applied for another fallback status because it can take several weeks to prepare and file the H-1B transfer. Additionally, if you qualify for an O-1A extraordinary ability visa, you could consider using an agent to file an O-1A petition on your behalf, which would make your visa independent of any particular employer. This offers you both redundancy because you can change or add paid jobs in the United States without amending the petition every time, generally, as long as you are continuing to work in your field. To work for your own startup, start NOW! If you want to create your own tech venture, find someone you can work with to be your co-founder. Find out if you qualify for an O-1A ASAP or determine if you want to set up your startup to be compatible with an H-1B transfer. Talk with both an immigration attorney and a corporate attorney to devise the best structure for your startup and determine an immigration strategy for your startup to sponsor you for a visa. For many people, if they qualify, I suggest that your startup sponsor you for an O-1A, which offers more flexibility and freedom than an H-1B transfer. Many individuals on an H-1B visa in Silicon Valley and beyond are surprised when we tell them they already qualify for an O-1A. The added benefit of the O-1A is that it serves as a stepping stone to qualify for the EB-1A extraordinary ability green card, which is currently available. Devise a backup plan Have a backup plan and work with an immigration attorney to assess your options. You could transfer your H-1B, become an H-4 dependent visa holder if your spouse has an H-1B,

TAM tough love, ‘building in public,’ 6 key SaaS metrics • ZebethMedia

By zebethcontrolPosted on November 4, 2022Posted in Commerce, e-commerce, EC roundup, immigration law, proptech, Startups, TechCrunch Disrupt 2022, VentureNo Comments

Are you ready to launch a bajillion-dollar startup? Before you start: Are you planning to build a centaur, a unicorn or perhaps a decacorn? Startup pitching has become an existential drama, in part because so many founders exaggerate the size of the total addressable market (TAM) in which they hope to compete. At ZebethMedia Disrupt, I spoke to three investors about how they use TAM to guide their decision-making. Everyone agreed that the number itself is far less important than the process that produced it. “The way it’s calculated and the way the founder is thinking about it tells us not necessarily about the business or its future, but about how the founder thinks about company creation,” said Deena Shakir, a partner at Lux Capital. Full ZebethMedia+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. “It is almost guaranteed you’re going to be wrong,” said Aydin Senkut, the founder and managing partner of Felicis Ventures. “It’s either going to be too large or too small.” Kara Nortman, a managing partner at Upfront Ventures, said the TAM numbers given in a pitch do not control whether she’s likely to invest. “I would say [it is] more important to be able to articulate how big something can become and to show that you have a thought process around TAM, if it’s early,” she said. Choosing a mythical TAM won’t put dollar signs in investors’ eyes, as unrealistic numbers reflect unrealistic expectations, a red flag for any VC. As Senkut said, “the plan doesn’t have to be accurate — the plan has to be directionally correct.” Thanks very much for reading TC+ this week! Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist 3 investors explain how finance-focused proptech startups can survive the downturn Image Credits: Kuzma (opens in a new window) / Getty Images How are finance-oriented property tech investors reacting to the ongoing downturn in public markets? Senior reporter Mary Ann Azevedo interviewed three VCs to learn more about how they’re counseling the companies in their portfolios, which types of startups are best positioned to weather the downturn and how they’re managing risk: Pete Flint, general partner, NFX Zach Aarons, co-founder and general partner, MetaProp Nima Wedlake, principal, Thomvest Ventures How Metafy founder Josh Fabian caught the attention of 776 by building in public Image Credits: Kelly Sullivan / Getty Images At ZebethMedia Disrupt, Josh Fabian, CEO of video game coaching platform Metafy, explained why he’s committed to “building in public,” or sharing aspects of his founder’s journey with an audience. “Consumers don’t trust corporations; I don’t trust corporations,” he said. “I don’t think any of you do, even if you’re running your own.” Katelin Holloway, a founding partner at 776 (an investor in Metafy), said Fabian’s approach was a breath of fresh air. “We were able to just engage and talk like humans, and Josh told us his story in a very different way,” she said. “Not only was it incredibly compelling from a business perspective, it was incredibly compelling from a human perspective,” she said. Is the modern data stack just old wine in a new bottle? Image Credits: Mikhail Dmitriev (opens in a new window) / Getty Images Before Ashish Kakran became a principal at Thomvest Ventures, he was a data engineer who transformed disparate consumer data points into optimized offers for consumer telecoms. “Part of my job involved unpacking encrypted data feeds, removing rows or columns that had missing data and mapping the fields to our internal data models,” he writes in a TC+ guest post. “Our statistics team then used the clean, updated data to model the best offer for each household.” Because today’s datasets contain exponentially more information, “the rules are being rewritten on how data will be used for competitive advantage, and it won’t be long before the winners emerge,” he asserts. In a deep dive, he compares modern and legacy data stacks to identify key trends for enterprises and opportunities for founders and investors. “Practitioners are spoilt for choices when building enterprise data pipelines,” says Kakran. Investor’s advice during a downturn: Don’t panic Image Credits: Kelly Sullivan / Getty Images Fewer investors are writing checks these days, but what kind of advice have they been giving their portfolio companies in recent months? Mary Ann Azevedo spoke to three executives at ZebethMedia Disrupt to learn more about the strategies they’re promoting to preserve runway and their peace of mind. Eric Glyman, CEO, Ramp Thejo Kote, CEO, Airbase Ruth Foxe Blader, partner, Anthemis “It behooves everybody to be really lucid about the macro environment that we’re entering,” said Blader. “It’s likely to be long-lived, and it’s very important to be judicious but not lose sight of your goals and the reason you founded the business in the first place.” 6 key metrics that can help SaaS startups outlast this downturn Image Credits: Andy Ryan (opens in a new window) / Getty Images The most successful companies I’ve worked at fostered parasocial relationships with customers in much the same way many of us invest emotional energy while following the lives of celebrities. During a downturn, “the goal is to pick up on warning signs early and course-correct as you go, and those signs are often hidden in the breadcrumbs,” writes Sudheesh Nair, CEO of ThoughtSpot. “Not all industries are affected equally, so don’t assume your customers will cut spending this year just because the headlines are bleak.” Tips for e-commerce brands that want to win more market share this holiday season Image Credits: Justin Sullivan (opens in a new window) / Getty Images Santa Claus makes a list and checks it twice before each holiday season. Can your e-commerce startup make the same claim? “Consumers are now living with inflation and an unofficial recession, and we can expect more selective and price-conscious shopping behavior,” writes Guru Hariharan, CEO and founder of CommerceIQ. Now that people “are feeling the squeeze on their everyday essential purchases” and the holiday shopping season is

How can students work or launch a startup while maintaining their immigration status? • ZebethMedia

By zebethcontrolPosted on November 2, 2022Posted in Column, Dear Sophie, EC Column, EC DEI, F-1 visa, Government & Policy, immigration law, Sophie Alcorn, Startups, Verified Expert - lawyerNo Comments

Sophie Alcorn Contributor Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives. More posts by this contributor Dear Sophie: How can early-stage startups improve their chances of getting H-1Bs? Dear Sophie: How can I launch a startup while on OPT? Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies. “Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.” ZebethMedia+ members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off. Dear Sophie, I’m studying bioinformatics at a university in the U.S. What options do I have to work before and after graduation on my student visa? Do any of these options allow me to launch my own startup? — Wanting to Work Dear Wanting, I applaud your enthusiasm to get to work! The opportunity to work and get training in your field is one of the draws of studying in the U.S. Complex immigration rules and regulations for international students — not to mention processing delays and time limits — can make things challenging, but all you need is a little planning to overcome those challenges! Your ability to work in your area of study — and for how long — depends on what type of student visa you hold: F-1 student visa. J-1 educational and cultural exchange visa. M-1 student visa. F-1 offers the most flexible work options Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window) The F-1 student visa offers the most options for working both before you graduate and after. Two types of training programs are available to most international students who hold an F-1 visa, making them eligible to work in their field of study: Curricular Practical Training (CPT) is available to students at some colleges and universities. Optional Practical Training (OPT) is available either before or after graduation. STEM OPT is a 24-month extension of OPT available to students who graduated with a STEM degree designated by the U.S. Department of Homeland Security. Working under CPT If CPT is available at a university or college, then students on F-1 visas are eligible if they have been enrolled full time for at least one academic year and have not yet graduated. Some graduate programs allow or even require students to apply for CPT at the very beginning of their program.

Fundraising beyond the Bay Area, web3 gaming, TDD prep checklist • ZebethMedia

By zebethcontrolPosted on October 28, 2022Posted in biotech startups, Crypto, due diligence, EC roundup, immigration law, Startups, Venture, web3 gamingNo Comments

In a previous era, aspiring journalists relocated to New York, would-be actors made pilgrimages to Hollywood, and plucky tech founders moved to the Bay Area so they could attract capital and talent. But San Francisco is no longer the center of the startup universe, and it hasn’t been for a while. Cities like Boulder, Detroit and Austin had emerging tech ecosystems long before the pandemic forced VCs to start taking pitches via Zoom, and social media has leveled the playing field when it comes to networking and PR. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription “We noticed a couple of years ago, in looking at our own analytics, that most of our deals were coming through Twitter,” said Elizabeth Yin, co-founder and general partner of Hustle Fund, last week at ZebethMedia Disrupt. “If I look at my portfolio, my companies that are active on Twitter actually do have an easier time raising money because investors feel like they know them.” Reporter Dominic-Madori Davis moderated a discussion with Yin, Mike Asem (founding partner of M25), and Accel partner Rich Wong that elicited suggestions for early-stage founders who don’t live in the 415 area code and spilled the tea about “the emerging markets on their radars.” If you’re interested in the entire conversation, there’s a link to a video at the end of the article. Keep an eye out for more recaps from TC Disrupt in the coming days. Thanks for reading, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist 5 tips for launching in a crowded web3 gaming market Image Credits: Chelsea Sampson (opens in a new window) / Getty Images Every online product requires some network effect, but gaming is unique: Without large, loyal and enthusiastic customers, there’s no way to build products that can be monetized. Play-to-earn games (P2E) are particularly susceptible to this problem, which is why “building a game that succeeds in the long term means developing monetization strategies that can weather market ebbs and flows,” says Corey Wilton, co-founder and CEO of Mirai Labs, the gaming studio behind Pegaxy. In this primer for P2E founders, Wilton shares suggestions for how to approach investors, explains why tokens are not a reliable fundraising vehicle and discusses the recent “shift toward Web 2.0 monetization.” A prep checklist for startups about to undergo technical due diligence Image Credits: Pixelimage (opens in a new window) / Getty Images On Tuesday, founder and CEO of codebase analytics company Sema, Matt Van Itallie, shared a guest post for founding teams who are about to begin technical due diligence before an investment or acquisition. On Wednesday, he followed up with a detailed checklist for C-level executives and senior managers responsible for helping VCs determine whether their “codebase is safe enough for investment.” Product roadmap Code quality Code, network and information security Intellectual property Development process Engineering team contributions DevOps Pitch Deck Teardown: The Palau Project’s $125k pre-seed deck Image Credits: Palau Project (opens in a new window) Fundraising takes many forms, but because pre-seed founders are so often coaxing money from family and friends to validate their ideas, it can raise the emotional stakes. To raise money for The Palau Project, an app that lets users find the environmental impact and nutritional benefits of packaged food, founder Jerome Cloetens put together a 22-slide deck with a $500,000 goal. In the end, the team raised just $125,000. Dear Sophie: How can early-stage startups improve their chances of getting H-1Bs? Image Credits: Bryce Durbin/ZebethMedia Dear Sophie, We have a stealth early-stage biotech startup. Do we qualify to petition a co-founder on STEM OPT for an H-1B in the lottery? Is it worth it or are there better alternatives? — Budding Biotech 3 VCs explain how founders can stand out when pitching Image Credits: Kelly Sullivan (opens in a new window) / Getty Images There’s a lot of wisdom in corny motivational writing. For instance, this quote by Will Durant, a historian and philosopher: We are what we repeatedly do. Excellence, then, is not an act, but a habit. A great pitch requires more than charm and storytelling skills: investors expect founders to understand their market and competitors, and help them prepare before the meeting begins. “I generally recommend having almost like a teaser version of the deck with enough data and information to give us a sense of where you are in terms of the journey of your company,” said Jomayra Herrera, a partner at Reach Capital. “Just enough information so that we come prepared to the meeting.” 5 ways biotech startups can mitigate risk to grow sustainably in the long run Image Credits: jayk7 (opens in a new window) / Getty Images Thanks to R&D and clinical trials, life science startups have long lead times before they can bring their capital-intensive products to market. “But,” asks Omar Khalil, a partner at Santé Ventures, “what happens when the funding suddenly dries up?” In a guest post for TC+, he shares five strategies for biotech startups that are trying to stay warm through the winter ahead. “It’s still too early to know whether this is a short-term correction, or if it’s a new normal that will be maintained for the foreseeable future.”

PLG and enterprise sales, SaaS pricing strategy, OPT options • ZebethMedia

By zebethcontrolPosted on October 21, 2022Posted in cloud infrastructure, EC roundup, immigration law, Product-led growth strategy, Startups, TechCrunch Disrupt 2022, VentureNo Comments

After staging our first ZebethMedia Disrupt in San Francisco in three years, Slack is much quieter than usual this morning. My colleagues are flying home to cities as far flung as Taipei, Paris and London; I just took a streetcar home, which should keep my expense report simple. Moscone Center did not look like we’re experiencing a downturn in tech: the Expo Hall and demo booths were buzzing, and attendees were networking with enthusiasm in the hallways (are business cards making a comeback?). Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription Next week, I’ll share a recap of the panel I moderated, “Taking the BS out of your TAM.” In a conversation with Kara Nortman (Upfront Ventures), Aydin Senkut (Felicis Ventures) and Deena Shakir (Lux Capital), we explored the many mistakes first-time founders make when calculating the size of their market, and pinned down the information investors are actually looking for. Everyone had actionable insights to share, and more than one attendee stopped me in the hallways afterwards to let me know how much they appreciated our frank discussion. If you don’t want to wait for my recap, you can watch a video of the panel right now. Thanks again to everyone who participated! Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist 2023 VC predictions: Finding an exit from the ‘messy middle’ Eric Tarczynski, managing partner and founder of Contrary Capital, says we are entering a “messy middle” era for venture capital: “Companies can no longer raise $5 million to $10 million seed rounds with nothing but a deck and the assumption that revenue multiples will skyrocket beyond historical norms,” he writes in a TC+ guest post. Looking ahead to 2023, Tarczynski foresees an environment where “the VC landscape has started to bifurcate,” as “slow M&A activity and no IPOs” and “good companies in ‘safe’ industries” temper investor expectations. Read this before you reprice your SaaS product because of the downturn Image Credits: Richard Drury (opens in a new window) / Getty Images Many startups are lowering their prices in an attempt to retain customers and reduce churn during the downturn. “But is that actually helpful advice for SaaS founders?” asks Torben Friehe, CEO and co-founder of Wingback. “As far as I can see, it isn’t for most.” Instead of being reactive, Friehe says SaaS startups should instead revisit their ideal customer profile and revise their messaging. “This adverse economic climate may actually be a time when you have more leverage and can demand higher prices for your product.” Dear Sophie: How can I launch a startup while on OPT? Image Credits: Bryce Durbin/ZebethMedia Dear Sophie, I’m an international student in the U.S. in F-1 status. I will graduate with a bachelor’s degree in computer science this May and plan to apply for OPT. I want to launch a startup. Can I do that with OPT? What options would I have after OPT to continue growing my company? — Forward-Looking Founder The Great Migration and the next 10-year cycle in cloud Image Credits: Tim Robberts (opens in a new window) / Getty Images Now that the public cloud market has undergone a correction after years of growth, will seasoned workers look for greener pastures at smaller companies? According to Andy Stinnes, general partner at Cloud Apps Capital Partners, we’re entering a decade-long cycle that will spark a Great Migration of talent. “The answer is clear once you think about it,” he says. “Companies are extending cash runways, and cloud leaders are feeling that pain as they lay off parts of their teams and face even more work and pressure.” How to combine PLG and enterprise sales to improve the funnel and drive bottom-line growth Image Credits: Richard Drury (opens in a new window) / Getty Images Products and services that sell themselves sound great, but product-led growth (PLG) startups still launch marketing campaigns and hire sales teams. Combining PLG with traditional sales-led growth efforts can raise retention and acquisition to the next level, says Kate Ahlering, chief revenue officer at Calendly. In this TC+ guest post, Ahlering lays out multiple strategies that will help teams implement a “hybrid GTM strategy,” which includes suggestions for leveraging PLG data and optimizing success metrics.

How can I launch a startup while on OPT? • ZebethMedia

By zebethcontrolPosted on October 19, 2022Posted in Column, Dear Sophie, EC Column, EC DEI, Government & Policy, H-1B visa, immigration law, Sophie Alcorn, Startups, STEM OPTNo Comments

Sophie Alcorn Contributor Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives. More posts by this contributor Dear Sophie: How can I protect my H-1B and green card if I am laid off? Dear Sophie: Any tips for negotiating visa and green card sponsorship? Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies. “Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.” ZebethMedia+ members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off. Dear Sophie, I’m an international student in the U.S. in F-1 status. I will graduate with a bachelor’s degree in computer science this May and plan to apply for OPT. I want to launch a startup. Can I do that with OPT? What options would I have after OPT to continue growing my company? — Forward-Looking Founder Dear Forward-Looking, It’s so exciting to hear you’re planning ahead for your startup founder journey. Taking this route requires planning and forethought. Consult an immigration attorney for guidance as well as precautionary measures to mitigate risks and protect you along the way. Launching a startup on OPT As an F-1 student with OPT work authorization (work permit), you can get your company up and running and be self-employed as long as you’re putting your degree to work. You must also work full time and have all the proper business licenses that your state requires. You don’t have to wait until you get OPT to start setting up your company. Under immigration law, doing things like forming the legal entity for your company, pitching potential investors or negotiating contracts are not considered work, so you are allowed to do them without OPT work authorization. Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window) That way, once you’re on OPT, you will have a full 12 months to focus on operating your startup. F-1 students can apply for OPT up to 90 days before completing their degree, but no later than 60 days afterward. Take a look at this previous Dear Sophie column on OPT and contact your university’s DSO (designated school official) for more information. If you already know you want to maintain your startup in the U.S. and find investors here, then talk to a corporate attorney to determine how to structure the company. In general, U.S. investors want to deal with Delaware C corporations. Even though you incorporate in the state of Delaware, your startup can be based in Silicon Valley or anywhere in the U.S.

Layoffs and H1-B visas, SaaS growth levers, blockchain startup tips • ZebethMedia

By zebethcontrolPosted on October 14, 2022Posted in blockchain, EC roundup, economic downturn, immigration law, SaaS, Startups, TechCrunch Disrupt 2022, VentureNo Comments

For cash-strapped SaaS startups trying to reach scale, the math doesn’t look great. A slump in the public markets has dragged the entire sector down, but customer acquisition isn’t getting any cheaper. In the meantime, runways are shrinking like a wool sweater in an electric dryer, and teams that hope to fundraise better have some good news to show potential investors. So, what’s the plan? “The key is to focus on scaling sustainably by tapping into more overlooked and underrated sources of revenue,” says Paddle CEO Christian Owens. Full ZebethMedia+ articles are only available to membersUse discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription In his TC+ guest post, Owens shares several tactics “SaaS leaders can use to supercharge their expansion revenue,” such as adding upsell tiers and charging customers for priority support. Just for a moment, forget about onboarding new customers. Seed-stage startups that demonstrate strong gains in expansion revenue, i.e., money “generated after the customer’s initial purchase,” will always get a second look from investors. And boosting expansion revenue during a downturn? Well, that’s even more impressive. I won’t be sending a TC+ newsletter on Tuesday, October 18, but will return a week from today with more resources for founders and early recaps from ZebethMedia Disrupt. Thanks very much for reading, Walter ThompsonEditorial Manager, ZebethMedia+@yourprotagonist Dear Sophie: How can I protect my H-1B and green card if I am laid off? Image Credits: Bryce Durbin/ZebethMedia Dear Sophie, I am considering leaving my current, steady job for a job with a big name in tech. I’m excited, but nervous. I’ve been hearing that you can lose your H-1B status if you are laid off. Is there any way I can protect my immigration status while making a bold job move? — Leap of Faith Dear Sophie, My early stage startup hasn’t been able to hire as quickly as I would like due to fierce competition. Now that we’re seeing some movement in the job market, we think we can probably finally compete for some top engineering talent in our budget. How can I hire people who were recently laid off on H-1B? — Strategic Sponsor DIY: 5 ways disruptive component startups can win over OEMs Image Credits: Alan Rubio (opens in a new window) / Getty Images Hardware startup founders have a uniquely hard time. Only a small fraction of tech investors will even take meetings with them, and building product pipelines is often an irregular, chaotic process. Instead of relying on sales and marketing teams to build a customer base for his hardware components startup, Ori Mor’s company started building devices that used his company’s tech. “There’s no point rushing when building a hardware startup,” says Mor. “Instead, start by making just a single prototype that you can use to show OEMs.” ‘Me too’ investing is eating returns Image Credits: Catherine Falls Commercial (opens in a new window) / Getty Images Considering the number of investors who are all-in on e-commerce, fintech, cybersecurity, cloud infrastructure, crypto and B2B SaaS, a room full of VCs might look like a crowd of Spider-Man clones pointing at each other. “Marc Andreessen once said that ‘software is eating the world,’” writes Alan Feld, founder and managing partner of Vintage Investment Partners. “Unfortunately, ‘me-too’ investing is eating returns,” he says, suggesting that investors get out of their rut and explore “four relatively underfunded areas that could produce huge winners over the next 10 years.” How to go from popular to profitable during a downturn Image Credits: Patrik Giardino (opens in a new window) / Getty Images Product-led growth startups are like a car with a manual transmission that needs a push to get going: one driver just can’t do it all on their own. According to Nick Mills, whose sales experience includes stints at Stripe, Facebook and CircleCI, “all companies eventually face a similar challenge: To keep growing, sales teams must be hired and a pipeline must be built.” After explaining how to calculate your serviceable addressable market, AKA “the piece of that pie you can win right now,” Mills shows how to define product-qualified leads that will get sales engines firing on all cylinders. “Telling investors about your viral user growth is no longer enough,” says Mills. “They want to know how it translates to revenue, resilience and runway.” ZebethMedia Disrupt 2022: Taking the BS out of your TAM Every founder must understand the sector in which they intend to compete, but calculating Total Addressable Market (TAM) is a daunting process, especially for first-timers. In reality, TAM just is a planning tool that gives potential investors a better understanding of a company’s upside potential. Next Wednesday, at ZebethMedia Disrupt in San Francisco, I’m moderating a discussion with three investors to find out how they approach TAM and what they’re looking for during a pitch: Kara Nortman, managing partner, Upfront Ventures Aydin Senkut, founder and managing partner, Felicis Ventures Deena Shakir, partner, Lux Capital I’ll ask them to share tactics and strategies for finding TAM, how to calculate it for new products and services, and the red flags they see most often from novice entrepreneurs. Make sure to bring warm layers if you’re visiting SF for Disrupt — if you can’t make it, please join us online. 6 tips for launching a blockchain startup Image Credits: Kinga Krzeminska (opens in a new window) It will take much more than a downturn in the public markets, record inflation and global instability to get between blockchain founders and their dreams. Unfortunately, “having a solid roadmap, real-world use cases and a war chest are only a small part of a blockchain startup’s survival strategy,” advises Wolfgang Rückerl, co-founder and CEO of Istari Vision and Entity. Although it’s true that many of the skills required to launch an early stage startup also apply to web3 companies, “the road to achieving success in the blockchain industry is paved differently,” he writes.