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'Revenge' Startups, the State of Startup Funding 2023, "Reinvent & Rebrand" to become M&A Ready, and the Visionary Behind Manscaped

'Revenge' Startups, the State of Startup Funding 2023, "Reinvent & Rebrand" to become M&A Ready, and the Visionary Behind Manscaped

Social Leverage Letter | Issue #85

Pete Weishaupt
April 16, 2023

Get smarter faster with our curated list of thought-provoking content for founders and investors:

3 articles, 2 podcasts, and 1 video.

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UP FRONT

Pro Platforms Construct CRM Emerges from Stealth Mode (Social Leverage Fund IV)

Health Data Cloud Leader 1upHealth Raises $40 Million Series C (Social Leverage Fund III)

READING

III. Laid-Off Tech Workers Launch ‘Revenge Startups’ Just as Money Dries Up

As mass layoffs push more people towards entrepreneurship, venture investors have become more cautious. Some of those laid off are launching "revenge startups". Many venture firms are wary of entrepreneurship dabblers who want to test an idea because they now have the time. But a few venture firms are excited about the possibility of great new businesses coming out of the downturn, in line with Silicon Valley's culture of reinvention and rebirth.

Laid-Off Tech Workers Launch ‘Revenge Startups’ Just as Money Dries Up

Venture-capital investors used to seek out founders who were quitting their tech jobs to launch businesses. Now that mass layoffs are pushing many people down the entrepreneurial path, venture investors have grown stingier.

https://www.wsj.com/articles/laid-off-tech-workers-launch-revenge-startups-but-money-is-drying-up-6075941

II. The State of Startup Funding in 2023

Data shows that startup funding has decreased in recent years. Angel and seed investments in the US and Europe have dropped to 2020 levels or earlier, while exits for VC-funded companies are at a 10-year low. However, Series E and later rounds are on the rise. The boom in tech and VC funding in 2021 may have been a result of the pandemic, and reverting to pre-pandemic levels is probably inevitable.

The State of Startup Funding in 2023

I’ve crunched data from a variety of sources for a sense of how startup funding is trending. So far, it’s downwards. What does this mean for tech? Analysis.

https://newsletter.pragmaticengineer.com/p/the-state-of-startup-funding-in-2023

I. “Reinvent and Rebrand”: Strategies Followed by a SaaS Company to Become M&A-Ready

How does a SaaS company prepare for sale and achieve a successful outcome? In this example, a company had been experiencing flat revenues and needed to maximize its value in order to sell within 12-18 months. The team identified four operational challenges and implemented a plan to address them, including hiring a CEO with SaaS experience, and rebranding the company. Within 18 months, the company was acquired by a Fortune 20 aviation contractor for a favorable price. Success is attributed to the sale readiness process and the company's active support and investment.

“Reinvent and Rebrand”: Strategies Followed by a SaaS Company to Become M&A-Ready

By: Jeb Connor The Longwood Group (TLG), which I founded, started working with FOCUS Investment Banking over a decade ago providing advisory services to companies preparing for an exit. In 2021, TLG and FOCUS formalized a partnership to offer a flexible, targeted program (FOCUS Sale Prep Advisory or

https://www.linkedin.com/pulse/reinvent-rebrand-strategies-followed-saas-company/

LISTENING

II. Panic with Friends - Paul Tran - Founder, CEO, and Visionary Behind Manscaped

Panic with Friends - Paul Tran - Founder, CEO, and Visionary Behind Manscaped

Join my personal email list and get my daily take on life, markets and investing for profit and joy. And I might talk about my prostate, so what do you have to lose?

https://www.howardlindzon.com/p/panic-friends-paul-tran-founder-ceo-visionary-behind-manscaped

I. Deep Dive with Rand Fishkin (SparkToro co-founder & CEO)

Deep Dive with Rand Fishkin

Sometimes orthodoxy needs to be challenged, and Rand Fishkin, co-founder and CEO of SparkToro, believes that by doing so, we can build something better than what came before. Today, he and Matt are diving deep. Tune in to hear about the unique funding and scaling philosophies behind SparkToro, and how Rand hopes to blaze an alternate trail for small and medium sized businesses. They also discuss the lessons Rand learned as founder and CEO of Moz—where, incidentally, Matt was on the board—including what it was like to go into business with his mother, getting into SEO when the industry still had major doubts, and the importance of understanding yourself, especially as a founder. Trust us, you don’t want to miss this episode!

https://podcast.bolster.com/public/142/The-Daily-Bolster-29d59cf2/e8b72585/share/a5fdd2a8?

WATCHING

I. Whoop Founder: How I Built A $3.6 BILLION Company & BEAT Apple!

JOB BOARD

Explore openings at our portfolio companies:

Social Leverage Job Board

Search job openings across the Social Leverage network.

https://jobs.socialleverage.com/jobs

Featured Job:

Director of Integrated Marketing

Remote - US

https://boards.greenhouse.io/1uphealth/jobs/4137475006?utm_source=Social+Leverage+job+board&utm_medium=getro.com&gh_src=Social+Leverage+job+board

Affiliate Disclosure: Social Leverage Group, LLC ("SLG"), Social Leverage Capital Fund I, LP ("SLC"), Social Leverage Capital Fund II, LP ("SLCII"), Social Leverage Capital Fund III, LP ("SLCIII") and Social Leverage Capital Fund IV, LP ("SLCIV") are all distinct entities from Social Leverage, LLC ("SL"). Social Leverage is not a registered investment advisor. SLC, SLCII, SLCIII, SLCIV, SLG and SL have used the logo and branding of Social Leverage with the permission of Social Leverage Group, LLC.