How to pitch me: 7 investors discuss what they’re looking for in March 2023

Welcome to TechCrunch+ Friday

It’s too early to determine whether SVB’s downfall heralds a new era for venture capital, but based on anecdotal evidence, off-the-record discussions and chats with co-workers, it seems like we’re back to business as usual as far as pre-revenue startup fundraising is concerned.

Not a scientific sampling, but I noticed that several investors signaled this week on Twitter that they remain interested in talking to founders who are still at the idea stage.

I shy away from sharing hot takes, but here’s one: With contagion contained, the VC community feels good about writing smallish checks for pre-revenue startups, but Series A and up? Más o menos.

Before Silicon Valley Bank crashed, I asked seven VCs about the startups they’re interested in backing right now, how they prefer to be approached and whether they could share any tips for first-time founders.

As long as this downturn persists, this investor Q&A will be a monthly TC+ column. If you’re a recently laid-off worker considering striking out on your own, an H-1B employee who’s had it up to here or just looking for tips and advice that can help you connect with early-stage investors, please read and share.

If you’re an investor who wants to be included in future columns, email guestcolumns@techcrunch.com with “How to pitch me” in the subject line.

Thanks very much to everyone who took the time to respond to these questions in such detail. There’s plenty of tactical advice here, and much more to come.

Here’s who participated:

• Brian Backeen, general partner, Lightship Capital
• Masha Bucher, founder and general partner, Day One Ventures
• Rebecca Liu-Doyle, managing director, Insight Partners
• Clelia Warburg Peters, managing partner, Era Ventures
• Nick Adams, managing partner and co-founder, Differential Ventures
• Lisa Lambert, founder and president, National Grid Partners
• Elizabeth Yin, co-founder and general partner, Hustle Fund

Have a great weekend,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

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But now that AI-driven solutions are offering search results, producing poems and generating illustrations on demand, startups need a plan for creating customized user experiences, according to Ab Gaur, founder and CEO of Verticurl.

“While excessive or unhelpful customer data can clog content pipelines, the right information can power hyper-personalization at scale,” he writes.

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Zero-based budgeting: A proven framework for extending runway

It’s critical to make every dollar count in this environment, but pulling back too much in the wrong places can reduce momentum across your entire organization.

Instead of simply trimming a little off the top, more startups are turning to zero-based budgeting, an aggressive tactic in which founders return to square one for every budget period “to verify all of the line items are relevant and cost-effective,” writes FP&A analyst Healy Jones.

“The best founders look for a framework to strategically cut burn while keeping their startup’s value drivers functioning.”

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In his latest TC+ post, he shares five action items “that could help your biotech startup navigate a cooling fundraising environment.”

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• Cover
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• Opportunity
• Problem
• Solution
• Value proposition part 1
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Dear Sophie: How can I return to the United States as a founder?

Dear Sophie,

I lived and worked in the United States on an L-1B for a year, and then changed to an H-1B for 2.5 years before I moved back to India (where I’m a citizen) and founded a startup.

Now I want to return to the U.S. to raise funds for my startup. What are my options for returning to the U.S. as a founder?

— Fast-Moving Founder

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“Silicon Valley Bank was certainly willing to push the envelope and see what they could do, including investing in Black funds,” said Lightship Capital co-founder Brian Backeen. “We don’t see that commitment from other banks.”

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