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We made it to Friday, folks. If you’re anything like me, that means you end the work day with a well-deserved nap and reruns of “The Office.” Tweettoot or Post at me about your favorite way to end the week.
Mark your calendar for a Twitter Space event on Tuesday, December 13th at 1:00 PM PST/4:00 PM EST with Investor Builders VC Andrew Chenwho will speak with Walter on the role technology reporting plays in shaping ecosystems.
See you on Monday! — Christine
Root Devices Top 3
Startups and VCs
More layoffs this week than Ingrid reports Primer, a UK-based e-commerce infrastructure startup, has announced it will lay off one-third of its staff amid some restructuring to cope with current and proposed e-commerce market conditions.
meanwhile, Come on thinks you need the perfect summary slide for your presentation and has found something for you (requires Root Devices+ subscription).
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How to answer when a VC asks about the valuation of your startup
When a VC inevitably asks about your valuation expectations, it’s a trick question: If your answer is too high, that’s a red flag, while a low number undervalues the company.
“Let’s leave the market price this round” is an appropriate answer, but only if you’ve already collected a lot of data from other investors — and can come back with some questions of your own, says Evan Fisher, founder of Unicorn Kapital.
“If that’s all you’re saying, you’re in trouble because it can also be interpreted as ‘we have no idea’ or ‘we’ll take what we’re given,'” Fisher said.
Instead of sitting back, he advises founders to pre-propose next-round investors and use the results of those conversations to shape current valuations.
In the article, Fisher includes sample questions “you’ll want to ask every VC you talk to,” along with other tips to help you “when they ask the valuation question.”
Three more from the TC+ team:
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Big Tech Inc.
We’re speechless here to learn that crypto news publication The Block has received some significant — and undisclosed — loans from former FTX CEO Sam Bankman-Fried’s Alameda Research. As a result, CEO Michael McCaffrey is out and Bobby Moran, the company’s chief revenue officer, is taking over the role, but as Jacquelyn and Alex write, the current conflict of interest will take some time to resolve, if at all.
While we wait for the Federal Trade Commission to send word on Microsoft’s fate with Activision, Kyle reports that the cloud services giant has acquired another company, this time Lumenisity, a startup that develops high-speed cables for data transmission.
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