Hey — It's Nico.

This newsletter contains:

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

Announcement:

On Thursday, March 16th, 5PM CET, we'll be hosting a free masterclass in which Keith Cronin will be reviewing and improving one of your pitch decks.

If you're looking for actionable strategies to improve your pitch deck, then this masterclass is perfect for you. Save your spot with one click →​

If you want your pitch deck to be the one reviewed, you can fill this form.

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?

💡 Michael Houck on the 10 ways startups can raise capital.

📖 A practical guide on how startups should think about their SEO strategy.

🧠 Nathan Baschez explains how narratives have network effects that affect the way we think.

☠️ A thread on why MySpace failed despite $800M revenue and $12 billion valuation.

🙌 Ring's CEO Jamie Siminoff discusses Amazon's $1 billion acquisition.

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What happened this week?

👻 Payroll and benefits startup Catch announces its shutdown.

👏 OpenAI announces an API for ChatGPT.

🚀 8VC raises $880M for a new fund that aims ‘to fix a broken world.’

📉 Altria exits stake in Juul Labs and invests $2.5 billion in a new E-cigarette startup.

💰 Chatbot Character.ai valued at $1 billion after a $200M funding round.

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Poll results

Last week I asked you which channels drive most growth for your business.

These were your answers:

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Failed startup story: Fast

Fast, an Australian-based startup that provided online checkout products, ceased operations in April 2022.

Despite raising $102M in a Series B funding round led by Stripe, there were concerns about the company’s revenue statements. The statements indicated the company’s revenues were modest and showed the business had a high cash burn rate.

In between the lines:

TechCrunch reported Fast's CEO, Domm Holland, was known for his "brash style," which may have affected the company's failure.

In 2021, Fast brought on board approximately 400 employees and reportedly spent about $10 million monthly. However, the company's revenue was a mere $50,000 per month, indicating inadequate management of funds.

Lessons learned:

Despite raising significant funding, Fast needed more revenue to cover its high burn rate. This is a prevalent mistake in the startup ecosystem that emphasizes the need for a concrete plan to achieve profitability and the importance of operating frugally to survive.

Moreover, the CEO style plays a huge role in navigating the challenges that startups face, and it's essential to have a leader capable of making strategic decisions that will help the company grow and succeed. A brash leadership style may sometimes work, but it’s important to have a balanced approach to making business decisions.

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Hot startup of the week: Oats Overnight

​Oats Overnight, a Consumer Packaged Company (CPG), has raised over $20M in a series A round.

The company started when founder Brian Tate searched for a more convenient way to incorporate a nutritional breakfast into his busy schedule.

In between the lines:

The funds will be used to expand into the retail channel, build the sales team, and build a new production and fulfillment center.

Oats Overnight is changing the way CPG brands interact with their consumers. Every month, the R&D team shares a new flavor pre-launch with their 100,000+ active subscribers and communicates with them directly to receive feedback on the recipe. Based on the extensive survey results, the team releases the most popular flavors with tweaks three months later.

Lessons learned:

Engaging with your customers is crucial for successful product development.

Oats Overnight's community-led process demonstrates the benefits of asking customers what they like or dislike about your product. By sharing pre-launch flavors with customers and gathering feedback, the team can make informed decisions and develop products their customers want.

Another important lesson from Oats Overnight's success is the importance of differentiation. Oats Overnight stands out in a traditionally stale category by bringing unique flavors and formats to its product. By differentiating themselves from competitors, they are able to attract customers and stand out in the market.

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What do you think of today's newsletter?

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

Cheers,

Nico