Startups Weekly - The bootstrapped are coming, the bootstrapped are coming

TechCrunch Newsletter
TechCrunch logo
Startups Weekly logo

By Natasha Mascarenhas

Saturday, July 30, 2022

Bootstrapped startups, or companies that use their own revenue or existing cash flow to fund growth instead of relying on external capital sources, sit in a very separate box than venture-backed startups. By nature of asset class, bootstrapped startups prioritize revenue to keep alive, while venture-backed startups prioritize growth to keep investor buy-in for future runway needs. Bootstrapped companies follow less of an exponential growth curve, while venture-backed companies need to be an outlier.

Enter a downturn and both sides get a tad more interesting. The built-in business discipline of bootstrapped startups may feel especially downturn-proof as the overfunded companies announce rounds of layoffs. As venture starts to be more interested in the stable fundamentals of the startup bunch, is it the bootstrapper’s time to swing big?

For Healthie, a payments processor for healthcare companies, now felt like the right time to get on the “treadmill” of venture capital after six years of bootstrapping, according to co-founder Cavan Klinsky.

“If you’re a bootstrapped company who is not yet on the [venture] treadmill, you have that kind of optionality or that ability to choose when to get on,” he said. “Once you’ve already raised a bunch of ventures, you’re kind of building a business for venture scale, whereas if you are bootstrapped … you can be really really opportunistic about what that right time is.

For my full take, read my TechCrunch+ column: Will once-bootstrapped startups turn to venture during a watershed moment?

In the rest of this newsletter, we’ll get into a play on Honey for the real world and behind some significant layoffs happening in tech. As always, you can support me by forwarding this newsletter to a friend or following me on Twitter.


Image Credits: Bryce Durbin / TechCrunch

Deal of the week

If Pogo had its way, you’d get paid every time you stroll down Market Street in San Francisco. Or check your email. Or open its app. The only catch is that you give your personal data to the consumer-focused fintech in return. Put differently, Pogo wants to give users cash in return for their data.

I dug into the startup, which just raised a $12.3 million seed round led by Josh Buckley and a previously unannounced $2.5 million pre-seed round, and its goals for TechCrunch this week.

Here’s why it’s important:  Pogo is going to have an intimate window into someone’s life, from where they live to their favorite coffee shop to just how many subscriptions they own. It’s similar to what a bank would see, but it’s a venture-backed startup that it wants you to trust.

The Electronic Frontier Foundation, a nonprofit that has defended civil liberties in the digital world since 1990, describes the idea of exchanging data for money as “data dividends.” In an essay, the organization urges consumers to rethink if getting money for their data really fixes the existent imbalance between users and corporations.

The EFF asks a series of questions, such as who will determine what the cost of certain data is and what makes your data valuable to companies? Plus, what does the average person gain from a data dividend and what do they lose in exchange for that extra cash?

Deal of the week image

Image Credits: Getty Images

Let your ideas shine

Sponsored by Dell for Startups

Dell for Startups provides startup expertise from dedicated technology advisors and scalable solutions to ensure your business is always ready to grow. Startups can save over 45% on select Dell Products! Whether your journey involves laptops, lightning-fast servers, or even custom hardware, we can help get you there. Still bootstrapping? Ask your Startup advisor about Dell’s pay as you go options.

Sign Up Now

The layoffs continue

There were a number of significant layoffs this week, not limited to but including:

Here’s why it’s important: This format almost doesn’t work for layoff coverage, because it’s clear why people losing jobs is an important dynamic to cover. What’s new more recently, which I’ll get into next week, is that we’re seeing founders conduct two rounds of layoffs in quick succession.

The layoffs continue image

Image Credits: jayk7 / Getty Images

If you missed last week’s newsletter

Read it here: “Great Resignation meets Great Reset meets (Great R…un down those valuations please).” I also recorded a companion podcast with my co-author on the piece, Anita Ramaswamy, which you can listen to here: “A niche facet of startup employee pay, explained.” 

Any requests for topics for me to dig into, either on Startups Weekly or on the show? Tweet me a big question and I’ll take a swing at it, either on an upcoming Startups Weekly or on the podcast.

Seen on TechCrunch

Equal Ventures has a new pair of funds, filings show

Instagram gets worse with dark patterns lifted from TikTok

If you think Instagram is bad now, you won’t like Zuckerberg’s plans

Here’s why a gold rush of NLP startups is about to arrive

Sports community platform Stadium Live raises $10M to expand its digital world for Gen Z

Seen on TechCrunch+

Build a solid deck for your quarterly board meetings

Venture investors shrug at proposed changes to US carried interest taxation

Pitch Deck Teardown: Alto Pharmacy’s $200M Series E deck

You can now get startup shares on the cheap

The right questions to ask investors when fundraising in a down market

Ok! I’m headed to the mountains. Until next time,


Read more stories on

Newest Jobs from Crunchboard

See more jobs on CrunchBoard

Post your tech jobs and reach millions of TechCrunch readers for only $200 per month.

Facebook Twitter Youtube Instagram Flipboard

View this email online in your browser

Privacy Policy | Terms of Service | Unsubscribe

© 2022 Yahoo. All rights reserved. 110 5th St, San Francisco, CA 94103

Older messages

Mac sales down 10%, iPhones up 3% — Breaking down Apple's quarterly numbers

Friday, July 29, 2022

TechCrunch Newsletter TechCrunch logo The Daily Crunch logo By Haje Jan Kamps Friday, July 29, 2022 Good morning, you wonderful specimens of humanity! It's Friday, and I'm writing this from the

How to grow a SaaS company efficiently in a recession

Friday, July 29, 2022

TechCrunch+ Newsletter TechCrunch+ logo TechCrunch+ Roundup logo By Walter Thompson Friday, July 29, 2022 Welcome to TechCrunch+ Friday Image Credits: Andriy Onufriyenko / Getty Images Despite the

Save $1300 before Disrupt prices go up tonight

Friday, July 29, 2022

Early Bird sale ends 11:59pm PT Email Header Image Beat tonight's deadline & save $1300 Holy procrastination, people. Don't miss out on saving up to $1300 on passes to TechCrunch Disrupt.

Indian government orders Apple, Google to delist popular game BGMI from app stores 

Thursday, July 28, 2022

TechCrunch Newsletter TechCrunch logo The Daily Crunch logo By Haje Jan Kamps Thursday, July 28, 2022 Why, hello there, and welcome back to another installment of the Daily Crunch! It's lovely to

Google Maps unveils improved bike navigation, location sharing and aerial landmark views

Wednesday, July 27, 2022

TechCrunch Newsletter TechCrunch logo The Daily Crunch logo By Haje Jan Kamps Wednesday, July 27, 2022 Hello, Daily Crunchers! Personal story time: I came to the US on an IR1 visa — also known as a “

Tuesday Triage #108

Tuesday, August 9, 2022

Your weekly crème de la crème of the Internet is here! The 108th edition featuring gesti famosi, Ejection Tie club, and a French focaccia. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

I replaced all our blog thumbnails using DALL·E 2 — and An incident impacting 5M accounts and private information on Twitter

Tuesday, August 9, 2022

Issue #854 — Top 20 stories of August 10, 2022 Issue #854 — August 10, 2022 You receive this email because you are subscribed to Hacker News Digest. You can open it in the browser if you prefer. 1 I

WhatsApp extends its unsend time limit to 'a little over two days'

Tuesday, August 9, 2022

TechCrunch Newsletter TechCrunch logo The Daily Crunch logo By Christine Hall and Haje Jan Kamps Tuesday, August 09, 2022 Whazzaaaaaaa, we're back with another round of newsy goodness on this fine

Finding & Fixing Python Bugs, Uncommon Usage, NBA Highlights, and More

Tuesday, August 9, 2022

Finding and Fixing Python Code Bugs #537 – AUGUST 9, 2022 VIEW IN BROWSER The PyCoder's Weekly Logo Finding and Fixing Python Code Bugs Learn how to identify and fix logic errors, or bugs, in your

Data Elixir - Issue 399

Tuesday, August 9, 2022

The 8 slide resume. Intro to streaming for data scientists. Random Forest explainer. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[New post] Rockin’ The Code World with dotNetDave – Special Guest: Magnus Mårtensson

Tuesday, August 9, 2022

dotNetDave posted: "Join me live on Saturday, August 20th, 2022 at 10:00 PST on C# Corner for show #64 where I will, for the second time, interview my good friend from Sweden, Magnus Mårtensson,

Infographic | Visualizing 10 Years of Global EV Sales by Country 🔋

Tuesday, August 9, 2022

Global EV sales have grown exponentially, more than doubling in 2021 to 6.8 million units. Here's a look at EV sales by country since 2011. View Online | Subscribe Presented by: NEO: NETZ | OTCQB:

[Sublime + Python Setup] Grumpy old greybeard with a whitespace problem

Tuesday, August 9, 2022

One fateful day, the Agile Gods that be decided to “add some firepower” to my little team… And so, developer Paul joined (name changed to protect the guilty). Before I dive into this story, let me ask

New Webinar! IdEM Broadband Macromodeling Tool for Electronic Device Characterization

Tuesday, August 9, 2022

Replace expensive physical tests with high accuracy simulation View this email in your browser Electronic Device Characterization using IdEM Broadband Macromodeling Tool Live Webinar -

3 ways to optimize SaaS sales in a downturn

Tuesday, August 9, 2022

TechCrunch+ Newsletter TechCrunch+ logo TechCrunch+ Roundup logo By Walter Thompson Tuesday, August 09, 2022 Welcome to TechCrunch+ Tuesday Image Credits: Eva Almqvist / Getty Images I have limited