Female Foundry Week 38: Impact of down rounds on Venture Capital. How to calculate Crypto’s market value. Trends from TechBBQ. How to develop MVP in one month. Sifted Summit.
Welcome to The Week 38, 2022 Edition of the Female Foundry weekly newsletter!
Female Foundry - where female investors and founders meet.
In The News
Zurich-based cap-table management software Ledgy co-founded by Yoko Spirig bags $22m in Series B round led by NEA; B2B billing and collections fintech from London Sequence co-founded by Riya Grover, raises $19m led by Andreessen Horowitz; Paris-based Innovafeed, co-founded by Aude Guo, becomes world’s biggest bug business with fresh $260m round led by Qatar Investment Authority.
The UK government has announced that from April 2023 startups will be able to raise up to £250,000 of SEIS investment (over 65% increase!), the gross asset limit will be increased to £350,000, and age limit to 3 years. The annual investor limit will also be doubled to £200,000. Read full announcement ➯
Spotlight
The tricky business of calculating Crypto’s market value.
With a $2 trillion value wiped out in the past four months from the crypto markets, hedge funds, lenders, investors and VCs wonder how to evaluate the present market value of crypto. How is crypto’s market value calculated? And how representative is it of crypto’s actual economic value? Did the digital asset boom ever even happen? Is there an element of groupthink when it comes to crypto’s overall valuation? Stacy-Marie Ishmael and Vildana Hajric discuss potential answers in the latest Bloomberg podcast. Listen here ➯
Trends picked from VCs and Founders at TechBBQ.
Do you feel that you have missed out on the TechBBQ conference in Copenhagen last week? Gwen Sandberg from Inventure VC shares key highlights from one of the hottest startup gatherings. Read full story ➯
Fundraising
How to develop a product in a month and not lose your mind.
No startup should try to raise capital before first testing the appetite of its target market. Creating a Minimum Viable Product, an MVP, is a popular launch strategy that can work wonders. Rather than rushing to code the next big thing, create an MVP first. Lizzy Boyarko shares a few practical steps on how to get your first MVP off the ground in less than a week. Read full story ➯
Analysis
The impact of down-rounds on Venture Capital.
The recent rapid decline in the public markets has led to limited exit opportunities and extension rounds due to uncertain market conditions. The huge valuation drop reflects a wider slump in the tech market, which has lost much of its momentum in recent months as investors take stock after gorging on deals last year.
But as the bull run grinds to a halt, startups that still need more cash, face a tougher fundraising environment. What current wave of down-rounds mean for both founders and investors in the long term? Kyle Stanford from Pitchbook shares his findings. Read full report ➯
If you want to better understand down-round implications when pricing equity below the previous valuation, check out Down-round Financing Guidance from PWC.
From the Community
Two weeks to Sifted Summit in London.
Tickets to Sifted Summit in London happening on the 5-6th of October are selling fast!
We offer a 15% discount on full-priced tickets for all our subscribers. So instead of £349 (startup) or £549 (investor), you will pay £296 & £466 respectively. Both female investors and founders are welcome! Tickets ➯
Hiring
Apricity ➯ Chief of Staff Intern | Peppy Health ➯ Senior CRM Executive | Next Station ➯ BD Representative
Find more female-founded startup jobs here.
That’s all for this week - thank you for reading.
Have a great weekend!
Agata
Written by Agata Nowicka, a serial entrepreneur and an investor based in London. Check femalefoundry.co for fundraising tools and more investor content.
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