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Social Leverage Letter | Issue #35
Valuing Startups, Measuring Innovation, Catching Up on Crypto, and A Future Worth Getting Exited About
The Social Leverage Letter is a weekly newsletter for early-stage seed startups and investors. Receive it directly in your inbox every Sunday. Subscribe now.
“Decide what you stand for. And then stand for it all the time.”
UPFRONT
We caught up with beehiiv co-founder Tyler Denk for a short profile piece. The Fund IV portfolio company streamlines the ability to create, customize, monetize, and scale email newsletters. beehiiv was co-founded by Morning Brew alums Tyler Denk, Benjamin Hargett, and Jake Hurd. Every issue of the Social Leverage Letter is created using the platform.
ICYMI: Photos and videos from Social Leverage Palooza 2022 are now up on our website.
READING
Patents: Measuring Innovation
Each year the Patent 300 List identifies America’s most innovative companies by analyzing the patents granted by the United States Patent and Trademark Office (USPTO). In 2021, the USPTO granted a total of 327,798 utility patents, down 7% from the previous year.
Tomasz Tunguz
“How do you value a company?” The question is important. A valuation must have some justification to be compelling. Tomasz lays out the three eras of startup pricing: cash-flow, multiples, and discount-to-future-value.
LISTENING:
Odd Lots
"...all of a sudden everyone’s like, wow, people just decide to put $200 million in the box. This is a pretty cool box, right? Like this is a valuable box as demonstrated by all the money that people have apparently decided should be in the box. And who are we to say that they’re wrong about that?"
Panic with Friends
Howard spent the past week at Crypto Bahamas with Team FTX and had a few thoughts, "Crypto/Web 3 is money, culture, religion, community, media and trading …so it just is happening and here to stay. Period."
And, ICYMI, he caught up with SBF last summer. It is an evergreen conversation about entrepreneurship, domain experience, product, crypto, trading and growth.
WATCHING
Ladies and Gentlemen... Elon Musk:
WHAT WE'RE READING
Here's what caught our eye over the past week.
Never Saw it Coming (Morgan Housel)
The Secret to Braving a Wild Market
Redesigning work: how the employee-employer relationship is changing
FTX/ Defi: If it looks like a duck and quacks like a duck . . .
Google's latest service: moral correction as you type
Teaching Your Old Car New Tech Tricks
JOB BOARD
Explore openings at our portfolio companies:
Featured Jobs:
Check out all of our portfolio companies at Social Leverage.
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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.