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- Social Leverage Letter | Issue #44
Social Leverage Letter | Issue #44
Race to the Bottom, Remote Hiring on the Rise, Embracing Data to Make Smarter Decisions, and Staying in the Game
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UPFRONT
It's going down, it's going timber...
BNPL giant Klarna is raising a new round, mostly from existing investors, which reportedly has the company valued at around $6.5 billion – about 1/7 of the $45.6 billion the company was valued at in their last round in June of 2021.
Not to be outdone in the race to the bottom, rumors circulated BlockFi was being acquired by FTX for $25 million...
Lots of market rumors out there - I can 100% confirm that we aren’t being sold for $25M.
I encourage everyone to trust only details that you hear directly from
@BlockFi.We will share more w you as soon as we can.
— Zac Prince (@BlockFiZac)
6:56 PM • Jun 30, 2022
(Long thread!)
Excited to share an update on our previously announced term sheet with @FTX_US - and how we've broadened the scope of the initial deal for the benefit of all key @BlockFi stakeholders.
— Zac Prince (@BlockFiZac)
6:11 PM • Jul 1, 2022
The rumors where put to rest at the speed of Twitter... Turns out the buyout could be as high as $240 million, based on performance triggers. After having raised nearly $1.2 billion in venture funding, BlockFi was reportedly valued at nearly $5 billion just last year.
READING
Remote hires now represent 62% of new hires so far this year. A majority of companies are taking employee location into consideration when deciding on compensation. Engineers continue to be key hires – accounting for nearly half of payroll at companies valued between $1 and $10 million. According to Carta’s data, terminations are on the rise, with 29% of them involuntary – nearly double the involuntary terminations recorded in August of 2021.
NFTs Have ‘Fallen Off the Cliff’ as Sales Sink to Lowest Levels in a Year: Sales have plunged to below the $1 billion mark he JPG NFT Index is down by about 70% since its April launch.
WHAT ELSE WE'RE READING
Here's a few other stories that caught our eye over the past week.
Venture Funding Set to Hit Lowest Level Since 2020
VC fund returns nosedive as private market pessimism grows
The great Silicon Valley shake-out
Can emotion AI really boost sales?
SoftBank’s Startups Insist The Bruised Investor Still Expects Growth Despite The Economic Downturn
LISTENING
Managing partner Howard Lindzon sat down with Social Leverage GP Matt Ober to talk data and tech. Matt is based out of New York City, which gives us boots on the ground in a very important tech city. He’s also started his own company in the Web 3 sector, which is covered in the conversation.
Howard sat down with Bobby Kraft of Planet MicroCap to talk about staying in the game, his criteria for new investments, and his thoughts on the current state of public and private financial markets.
WHAT ELSE WE'RE LISTENING TO
A few more podcasts you might like:
Frameworks and Investing at Scale w/ Chris Dixon (Capital Allocators)
Paul Millerd — The Pathless Path (Infinite Loops)
Kenneth Stanley - Greatness Without Goals (Colossus)
DEAL FLOW
The latest venture funding from around the globe:
Profasee raises $2.3M seed round, launches Amazon price optimization platform
Trinsic takes $8.5M in seed round to add headcount, speed decentralized digital ID expansion
Modular closes $30M seed round to simplify the process of developing AI systems
Mona Closes $14.6M Series A Funding
Mike Tyson, Chad Bronstein Raise $9M Series A For Tyson 2.0
CRYPTO CORNER
News on Crypto/web3:
OpenSea, an NFT marketplace, revealed email data breach that may have affected 1.8M users
web3 Needs In-Person Gatherings
Why Developers Should Invest In web3 Skills
Artificial Intelligence Can Protect web3 Communities
The perils of blockchain analysis
3 Things Blockchain Projects Can Do to Grow Merchant Acceptance
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.