CB Insights - fake founder work

Hi there, 
 

Last week, I shared the story of a dog sitting on a nail as a metaphor for why so many people who want to found a company never do.

That email got a lot of responses.

They fell into 3 categories:

1. Ouch. This hurt. This came from folks who felt like they were the dog on the nail. Some thought it was a good call-out. Hopefully, some will take action.

2. So true. This was from founders (generally) who shared that they once acted like the dog on the nail OR who relayed stories of friends who are acting like the dog now.

3. I’m doing fake work. I’ll explain the fake work responses below.

This last group is the most interesting as their emails were often something like this: 

“I’ve got an idea, and I’m going to jump in right after I complete this online marketing class.”

This group does things like:

• Getting the right company name/domain name

• Designing business cards

• Taking courses to learn X

• Doing detailed TAM analysis

It all feels like work, but it isn’t.

They do all of this stuff instead of just trying to build something and sell it.

Imagine trying to learn how to ride a bike by reading a book.

Fake entrepreneur work is the same isht.

Be careful of this.

Fresh VC stats

Global venture funding and deals retreated in the first quarter of 2022.

Startups raised $143.9B in Q1’22, down 19% from the previous quarter — ending 6 straight quarters of growth. Deals decreased by nearly 5%. 

Despite the declines, venture is still roaring. Funding in the quarter grew 7% YoY, while total deals in Q1’22 marked the #3 quarter on record.

Case in point: Tiger Global did its most deals ever in a single quarter (backing 120 unique companies vs. 107 last quarter) in Q1’22. That's nearly 2 deals per business day. 

Facts on SPACs

SPACs are facing a reckoning. 

After a record 2021, SPAC mergers have fallen off a cliff in 2022. 

Dismal market performance — one ETF that tracks SPAC performance has sunk 37% in the last year vs. the S&P 500’s 18% gain — and regulatory scrutiny have put a damper on the craze. 

When the clock strikes midnight

Today's the last day to apply for the Insurtech 50 awards, where we select the most promising tech companies in underwriting, claims, and distribution.

Fraud no more

Online payment fraud losses have topped $200B over the past 6 years.

In response, payments leaders are prioritizing fraud prevention and compliance solutions to protect their businesses and customers. 

These solutions are becoming more accurate, faster, and cheaper thanks to advances in technology.

From bot protection to compliance management, we map out the market here. 

The price is right

P&C insurance leaders are shifting more of their R&D budgets toward improving their risk assessment and rating models.

Need an adoption playbook?

Bloomberg. Bruce Einhorn (@BruceEinhorn) covers Shein’s plans to raise funding at a $100B valuation and cites CB Insights unicorn data.

CNBC. Kate Rooney (@Kr00ney) looks at how crypto startups are luring finance talent and cites CB Insights data.

Business Insider. Tom Auchterlonie covers banking player Cross River’s latest raise and cites CB Insights research.