In Case You Missed It: Launch Links - Week of June 26, 2022
Some interesting links we found across the web this week:
Have Valuations Really Fallen Off a Cliff in 2022?
While global funding has slowed since March and the public market downturn stretched into the second quarter, this Crunchbase article notes that average and median-sized raised by in the first half of this year are not down dramatically. Average fundings at Series A and B in the U.S. have fallen from the second half-year peak of 2021, but are still at or above averages a year out. Median funding Series A through Series C are on par or up in the second quarter of 2022. According to this article’s data, Series A, B and C fundings in H1 2022 are not showing a serious dip from the peak of 2021.
Startup Equity Splits are a Calculation, Not a Negotiation
One of the biggest misconceptions founders have is that equity ownership needs to be negotiated with one another in advance of any work being done. This approach can lead to a potentially devastating agreement because founders have nothing to base the negotiations on except each other's promises and predictions about future unknowable events. This Entrepreneur article recommends founders to use the Slicing Pie model, which tracks founders’ ownership based on founders’ wagers on the unpaid amounts of future success of the business, to ensure that the equity splits are logical.
5 Pitfalls to Avoid When Growing (or Scaling) a Business
Growing a business is certainly exciting, but with growth also comes challenges. Founders need to be flexible and embrace change to avoid being lured into certain pitfalls that can serve as bottlenecks that inhibit growth and, ultimately, success. This Entrepreneur article lists out five key pitfalls to avoid when growing a business. These pitfalls include not knowing how and when to scale the business, clinging to certain daily responsibilities without delegating, requiring every task and project match exactly with founder’s vision, forgetting valuable perspectives from the team, and assuming company culture will always stay the same as company grows.
Keep These 4 Growth Strategies On Your Radar
Every business wants to grow, but actually pulling it off and sustaining the momentum is where it gets tricky. Growth marketing strategies can provide tangible value. This Forbes article lists out four marketing strategies founders should keep on their radar. These strategies include creating compelling content to draw in customers, offering free tools or platform access to attract interest, leveraging personalization to create customer loyalty, and implementing referral programs to grow client base.
Links compiled by Frank Wang.