Despite the ongoing correction in the public markets, mass layoffs in the tech sector and high inflation, U.S. Treasury Secretary Janet Yellen says we’re not yet in a recession.

At the same time, it’s taking a lot longer to secure startup funding than it did just a few months ago, which means many companies are burning cash faster than they can raise it.

Full TechCrunch+ articles are only available to members.
Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription.

For SaaS startups, laying off staff and going fully remote isn’t enough: to add more time to the countdown clock, founders must calculate their burn multiple (net burn/net new ARR), says Alex Zekoff, CEO and co-founder of Thoughtful Automation:

The gold standard is a burn multiple of one — for every dollar you burn, you add a net new dollar in subscription revenue. At less than zero, you are in a cash-flow-positive position, which is really hard to do. But say that you are burning $2 million in a quarter, and you are only adding $500,000 of net new ARR. You are at a 4x burn multiple, and you probably need to start thinking about how to reduce that.

Thanks very much for reading, and have a great weekend.

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

The right questions to ask investors when fundraising in a down market

techcrunch+ roundup: saas burn multiples, 8 fintech vcs spill the tea, all my apes gone

Image Credits: MicroStockHub (opens in a new window) / Getty Images

Fundraising chats still start off with small talk, but startup teams are under more pressure than ever to make the best possible use of these rare opportunities.

Blair Silverberg, CEO and co-founder of Hum Capital, says entrepreneurs need to resist the urge to become defensive in these sessions.

“In fact, the more a founder can push the questions back to the investor in a way that gives a better understanding of their business and investment strategy, the easier the rest of the conversation will be.”

All my apes gone: Legal disputes at the intersection of IP and NFTs

techcrunch+ roundup: saas burn multiples, 8 fintech vcs spill the tea, all my apes gone

Image Credits: Bryce Durbin / TechCrunch

When Andy Warhol appropriated images of Campbell’s soup cans in 1962, he was lucky: For a host of reasons, the company decided not to sue him for infringing its trademark.

One wonders how the situation would have played out 60 years later if Warhol had minted a series of NFTs with the iconic labels.

In her latest TC+ post, CORPlaw founder Kristen Corpion examined “the most interesting and important IP legal issues that are currently impacting the creation, transfer and use of NFTs,” including trademark infringement, the first sale doctrine, and why Seth Green ended up paying a $100,000 premium to buy back his stolen Bored Ape.

Fundraising in turbulent markets: Why we moved up our Series B

techcrunch+ roundup: saas burn multiples, 8 fintech vcs spill the tea, all my apes gone

Image Credits: PM Images (opens in a new window) / Getty Images

OpenPhone successfully raised a $14 million Series A in November 2020, but when co-founder and CEO Mahyar Raissi realized they needed another round a year later, “it was becoming obvious that the market was turning.”

In classic TC+ “how to” style, Raissi, a former software engineer, explains the process his team used to accelerate their Series B, the tactics they used to manage investors and how the strategy led to a $40 million round.

“To ensure a timely process, you must be armed with a complete and bulletproof case for investing in your company. You need to spend a couple of weeks preparing your data and the story behind it before you start talking to VCs,” Raissi advises.

“There is no time to test the waters and get early feedback. Do all of that before you start the countdown.”

Pitch Deck Teardown: Alto Pharmacy’s $200M Series E deck

techcrunch+ roundup: saas burn multiples, 8 fintech vcs spill the tea, all my apes gone

Image Credits: Alto Pharmacy (opens in a new window)

If your company raises a $200 million Series E, it’s fair to debate whether you can still call it a startup.

Still, convincing investors to part with enough money to produce your own sequel to “The Gray Man” is an impressive feat, which is why we were eager to review the deck that helped Alto Pharmacy close such a large round.

8 fintech VCs discuss the shifting investing landscape and how to pitch them in Q3 2022

techcrunch+ roundup: saas burn multiples, 8 fintech vcs spill the tea, all my apes gone

Image Credits: James Osmond / Getty Images

What are fintech investors willing to bet on in this climate?

To get a sense of how their viewpoints and strategy have changed in recent months, Mary Ann Azevedo asked eight active investors about the advice they’re offering portfolio companies, how they expect the next few quarters to unfold and their pitch preferences:

Paul Stamas, managing partner and co-head of financial services, General Atlantic Alda Leu Dennis, general partner, Initialized Capital Michael Gilroy, general partner and co-head of fintech, Coatue Justin Overdorff, partner, Lightspeed Venture Partners Addie Lerner, founder and managing partner, Avid Ventures David Jegen, managing partner, F-Prime Capital Nik Milanovic, general partner, the Fintech Fund Jay Ganatra, co-founder and managing partner, Infinity Ventures

TECH NEWS RELATED

Pomelo exits stealth mode with $20M seed to rethink international money transfer

Eric Velasquez Frenkiel had a seemingly simple thought when visiting his family in the Philippines, impressed by the cashless economy that had formed. Instead of sending money to his family once a year – a costly, fee-heavy affair – why can’t he just leave his credit card there? As with ...

View more: Pomelo exits stealth mode with $20M seed to rethink international money transfer

Winners, losers abound as Inflation Reduction Act becomes law

President Joe Biden signed the climate-and-energy-focused Inflation Reduction Act into law today, a turn of events that just a few months ago seemed impossible. The move will undoubtedly bolster the United States’ stance in the next round of climate negotiations. And by the end of the decade, it’s expected ...

View more: Winners, losers abound as Inflation Reduction Act becomes law

As digital tracking wanes, companies turn to online communities for direct access to customers

As regulation and platform policies make it more difficult to track people across the internet, it has forced companies to rethink how to understand and get to know their customers. If they can’t stalk them surreptitiously, how can they gain a full understanding of their needs and wants? The ...

View more: As digital tracking wanes, companies turn to online communities for direct access to customers

Pliops lands $100M for chips that accelerate analytics in data centers

Analyzing data generated within the enterprise — for example, sales and purchasing data — can lead to insights that improve operations. But some organizations are struggling to process, store and use their vast amounts of data efficiently. According to an IDC survey commissioned by Seagate, organizations collect only 56% of ...

View more: Pliops lands $100M for chips that accelerate analytics in data centers

Faraday Future seeks to raise capital after massive Q2 loss

Faraday Future, maker of the long-delayed FF91 EV, re-upped its commitment to raising funds while reporting Tuesday that its second-quarter operating losses more than quadrupled. The company posted an operating loss of $137 million for the second quarter, compared with $28 million for the year-ago period. Overall, its second-quarter ...

View more: Faraday Future seeks to raise capital after massive Q2 loss

Walmart’s last-mile delivery service, Walmart GoLocal, tops 1M deliveries in year one

Walmart’s last-mile delivery service business, Walmart GoLocal, has topped 1 million deliveries in its first year, the retailer today revealed. The company offered a brief update on the state of its newer delivery business during its Q2 earnings call on Tuesday, where it noted that GoLocal had been growing ...

View more: Walmart’s last-mile delivery service, Walmart GoLocal, tops 1M deliveries in year one

The Roku Channel adds 14 linear channels, expanding its local news offering

Roku announced today that it added 14 new linear channels through its Live TV Guide on its free streaming hub, The Roku Channel, including several new local news streams. Viewers can now access three NBC local news channels, San Diego, Boston, and San Francisco Bay Area, as well as ...

View more: The Roku Channel adds 14 linear channels, expanding its local news offering

The venture slowdown finally hit early-stage valuations, PitchBook data shows

Ever since technology stocks began getting repriced in late 2021, we kept hearing that the correction would eventually trickle down to private startups. Each quarter brought its share of answers on how the venture capital slowdown would shape up. Would it impact late-stage deals first? Yes. Would it ever reach ...

View more: The venture slowdown finally hit early-stage valuations, PitchBook data shows

TechCrunch+ roundup: Usage-based billing, web3 fundraising, Serena Williams’ next act

Six conversations that bring nuance to tech’s layoff wave

Phantom’s Brandon Millman opens his wallet on web3 growth and risk at TC Sessions: Crypto

Meta rolls out new Reels features on Instagram and Facebook, including an ‘Add Yours’ sticker

Meet the woman making waves in the M&A market amidst gender bias burnout

Vividly wants to put some sparkle in your next CPG trade promotion campaign

Emerge Career’s tech-forward job training lets incarcerated folks hit the road on release

Oracle now monitoring TikTok’s algorithms and moderation system for manipulation by China’s government

Amazon and Nielsen close “Thursday Night Football” ratings deal

Twelve South add a collapsible, portable MacBook stand

Paul Davison spills the tea on Clubhouse’s past, present and future at Disrupt

Crypto scams have declined, but hackers remain resilient in bearish markets

OTHER TECH NEWS

Top Car News Car News