Hey — It's Nico.

This newsletter contains:

• 5 resources for founders.
• 5 startup news.
• 1 failed startup.
• 1 hot startup.

This issue is brought to you by PartnerHero:

Successful brands invest in customer experience and smart founders use PartnerHero to up-level their CX without breaking the bank.

PartnerHero is a customer operations outsourcing company built for the needs of startups, from seed to scale. Let us help your brand build financial resilience and extend your operational runway without sacrificing quality with flexible, affordable, high-quality outsourced customer ops.

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What to read this week?

🦉 How Duolingo achieved a 4.5x growth by implementing a small handful of product changes.

🧠 Brian O'Connor discusses how Airbnb built a unique customer experience using the snow-white method.

📊 3 different measures on how not to run out of cash in your business.

✍️ A practical guide to creating high-converting landing pages.

👂 The All-In Podcast team covers venture capital, how AI affects SaaS companies, and more.

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What happened this week?

🚀 VC firm 500 Global says they are bullish despite a drop in VC funding.

📉 Milan-based startup Bending Spoons laid off 129 employees after acquiring Evernote.

💰 Cloud security startup Wiz has raised $300M in funding, with a current valuation of $10 billion.

💵 Tome AI, an AI-powered presentation maker, has raised $43M in Series A funding.

🚫 Chinese regulators have instructed major tech companies not to provide ChatGPT services to the public.

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Poll

I'm interested... Which of these channels generates most of your business’ growth?

• ​Paid ads​
• ​SEO​
• ​Virality​
• ​Sales​

I'll be sharing the results next week.

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Failed startup story: Bank North

Bank North, a UK-based digital-only bank that focused on serving small and medium-sized enterprises (SMEs), ceased operations in October 2022. According to CrunchBase, the company had raised over $40M.

Bank North's core purpose was to challenge and transform the market for lending to small businesses. However, the company failed due to not being able to secure new funding to meet the Bank of England's regulatory licensing requirements.

In between the lines:

One thing that set Bank North apart was how quickly it made lending decisions, promising 24 hours for loan decisions and 14 days for the cash to arrive.

Bank North also set out to fill a void in the SME lending market by providing competitive interest rates that fell between digital-only banks and those of more established, traditional financial institutions.

Lessons learned:

Despite its closure, Bank North identified a market niche that needed its product and had a unique value proposition in the banking sector. However, the worsening economic conditions, including high inflation and lower venture funding volumes, contributed to Bank North's failure.

It is crucial for startups to clearly understand external market conditions and how they may impact their business.

Bank North's demise also emphasizes the importance for startups to understand the regulatory requirements of their industry and ensure they have the necessary resources to meet them.

As a startup, you must be mindful of spending and prepare for unexpected events. Properly managing your cash flow and previous funding is crucial for the success of your business.

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Hot startup of the week: WorkLlama

​WorkLlama, a US-based startup that offers an all-in-one talent management solution, has secured an additional $50M in funding.

The WorkLLama platform aims to simplify finding, engaging, and nurturing talent, leading to a superior user experience for employers and candidates.

In an interview with PRNewswire, the founder, and CEO Sudhakar Maruvada mentioned, “existing talent channels are underperforming, and organizations are struggling to find quality talent for open roles, making workforce planning a challenge."

In between the lines:

WorkLLama plans to use the new funds to grow its team, release new features, invest in automation, and expand its presence across North America, Europe, and Asia Pacific.

In the interview, the CEO also mentioned that the investment helps cement the company’s position in the market and solve the customer's main pain point; access to motivated employees who are invested in the company's goals.

The company delivered, on average, a 20% external labor cost reduction and a 66% reduction in time-to-hire for customers.

Lessons learned:

WorkLLama has identified a significant concern in today's work environment, where many companies struggle with talent acquisition. This concern and their ability to prioritize user experience have helped the company secure $50M in funding.

From the beginning, WorkLLama has prioritized customer experience for employers and potential candidates. This focus on customer satisfaction has been a significant factor in the company's success in a highly competitive industry. Founders should continuously gather feedback to improve their products to ensure customer satisfaction.

WorkLLama has also embraced automation and will continue to invest in it. This is a perfect example of how startups can use technology to streamline operations and reduce costs. By investing in automation, founders can eliminate repetitive and time-consuming tasks and focus on higher-value tasks.

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What do you think of today's newsletter?

• ​🔥 Great​
• ​😒 Meh​
• ​👎 Not interesting​

Cheers,

Nico