May 26, 2022

In the end From Planet of the Apes (1968), the protagonist learns that the alien world he crashed into is actually post-apocalyptic Earth.

For many budding fundraising founders, the current market correction for public tech companies is also shocking.

Mayfield managing partner Naveen Chadha said once investors began to lose value in high-flying stocks, it changed the valuation game early on.

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Given the burst of the first Internet bubble in the early 2000s and the financial crash of 2008, Chadha noted that we brainstormed public markets and “geopolitical challenges” to determine the initial size and Series A rounds. Hopefully.

“If you’re in the early stages, the first thing we do is evaluate your team to make sure the product is a pain reliever and not a vitamin.”

Circumstances change and investor expectations change as well, which means founders need to rethink their understanding of acceptable entry values ​​and rethink their spending plans. If I started today, saving money for bonuses would be a much higher priority than buying seats at the Herman Miller Aeron.

As Chaddha explains, “It’s easier to go up than it is to go down.”

Thank you very much for reading gaming-updates+ and have a great week.

Walter Thompson
Senior Editor gaming-updates+
@your hero

Which SaaS company will focus on private equity after Anaplan?

An illustration of two men and two women holding a target together to symbolize the acquisition target.

image credit: Sorbet/Getty Images

In the past six months, the share price of planning software company Anaplan has fallen more than 22%, which explains why private equity firm Thoma Bravo announced plans to acquire it for $10.7 billion.

Ron Miller and Alex Wilhelm looked at the deal to see if Thomas Bravo was “paying a premium for this company,” but they also looked at the bigger question: was it “a trend toward private equity.” Business? ,

Why So Many SaaS Companies Are Launching Their Own Media Operations

Cloud computing in a photo studio

image credit: Peter Daisley (Opens in a new window) / Getty Images

Content as a service?

In recent years, Salesforce, Hubspot, Shopify, and other large enterprises have begun expanding their own media operations.

The Internet audience is used to consuming quality videos, podcasts, infographics and other media. As a result, a simple blog post lost its luster a few years ago, as reporter Ron Miller discovered.

To find out what startups can learn from the new SaaS approach to content marketing, they interviewed several analysts and experts.

“As a CMO, I have to ask myself how I can reach this audience,” said Robert Rose, founder and principal analyst at The Content Advisory.

“I can either keep renting it through the access that Facebook or Google gives me, which are becoming more and more walled gardens, or I can start building it myself or get it.”

Be an entrepreneur who leads with transparency

A rubber wiper cleans the window with soap and a stripe of blue sky with clouds

image credit: Strong (Opens in a new window) / Getty Images

Starting a technology company is not the same as starting most small businesses: for example, no one expects a plumber to show 3% growth per month.

Tech entrepreneurs are forced to build a team, deliver new products regularly, and generate revenue quickly so they can generate income for their investors. Therefore, it is not surprising that they sometimes leave morality aside.

Entrepreneur and investor Marjorie Radlow-Zandi says the “fake it till you make it” mindset is a useful motivational tool, but not the foundation of a sustainable business strategy:

The founder of the company I invested in kept two sets of books secret: one with accurate historical financial data and another with numbers that were more than 10 times the real numbers. Product sales and performance lagged behind. Their solution was to present extended financial data to investors.

Zendesk’s latest problem is an active investor

Pedestrian on Wednesday, October 2, 2019 at Zendesk Inc.  Follow from the entrance to the headquarters.  in San Francisco, California, USA.  Zendesk fell 5.6% yesterday as its sector fell.  The company's put option trading was twice the average.  Photographer: David Paul Morris/Bloomberg via Getty Images

image credit: Bloomberg/Getty Images

After shareholders rejected Zendesk’s plan to acquire SurveyMonkey owner Momentive earlier this year, active investor Jan Partners is now trying to shake up the company’s board of directors, according to Ron Miller and Alex Wilhelm.

“Tensions between outside and inside stem from how much the company will be worth in the future, and is there a price a larger company will pay that Yang and others will love and accept by current company leaders.” , – wrote Ron and Alex.

“The more optimistic Zendesk’s current management is, the harder it is to find that price.”

New data sheds light on e-commerce market slowdown

image credit: Nigel Sussman (Opens in a new window)

E-commerce has skyrocketed since middle-class consumers turned to online shopping and grocery delivery during the pandemic.

But two years later, that growth appears to be slowing as the world recovers, indicating that “future e-commerce activity has moved forward through long-term changes in the economy, rather than the growth of the larger digital commerce pie.” — written by Alex Wilhelm. Exchange.

Alex analyzes data from e-commerce giants such as Shopify, Pinduoduo, Alibaba, and Amazon and shares his thoughts on the slow development of e-commerce in 2022.

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