TechCrunch+ Briefing: New VC Rules, AI Biotech Investor Research, Instagram Ads Case Study

If a cat is scared, it can hide under the sofa; A frightened fish swims in a dark hole. And when we humans feel uncomfortable, we tell ourselves stories.

Example: “growth at any cost” is a fairytale made possible by cheap money that helped VCs set expectations for founders and each other.

Likewise, “Everyone needs 18-24 months runway” is a good motto, but if it takes three times as long to lift a round as before, it may not be helpful advice.

“Born of an era of plenty, these ‘VCisms’ have permeated boardrooms and investor meetings everywhere,” said Rebecca Mitchem, partner at Neotribes Ventures, in a TechCrunch+ post this morning.

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“It’s time to ask if these VCisms are still relevant or if it’s time for a change.”

In a data-driven paper that looks at post-money valuations, transaction size and dilution rates as of 2012, Mitchem says we are now entering a new era where the technology industry will embrace “growth” at a reasonable cost.”

Founders can further dilute their ownership by chasing grand tours, or they can choose to grow more slowly, giving greater stake to all involved over time.

“Although it may seem counterintuitive given the recent market environment, the value of capital for all parties – investors, founders and employees – is higher in the more conservative growth scenario,” says Mitchem.

Thanks for reading this week’s TC+,

Walter Thompson
Editor in Chief, TechCrunch+
@seuprotagonista

6 Investors discuss why AI is more than just a biotech buzzword

AI and machine learning are widely used by biotech companies to reduce R&D spending and get products to market faster, but “the biggest challenge for investors is understanding exactly what the AI ​​is modeling and trying to predict,” says Shaq Vayda. Administrator at Lux.Capital.

In her most recent investor survey, Anna Heim spoke to six biotech investors about where AI creates value, near-term market shifts, and how they want founders to respond:

Robert Mittendorff, MD, General Partner and Chief Health Officer, B Capital James Coates, Chief Health and Human Performance Officer, Decisive Point Shaq Vayda, Director, Lux Capital Franck Lescure, Partner, Elaia Partners Francisco Dopazo, General Partner, Humboldt Fund Sarah Guo , Founder, Belief Which Instagram ad placement is more profitable: Reels, Feed Posts or Stories?

Consumer-focused startups are spending more on platforms like TikTok and Instagram to reach customers, but which advertising products work best?

In a case study based on Instagram campaigns for a website that facilitates bookings for independent beauty professionals, digital marketer Angelina Liparteliani analyzed Instagram reels, news posts and stories.

His very detailed analysis includes samples of the ads used in different campaigns, the process he used to optimize the ads, and a cost-per-click analysis showing how he achieved the $1.51 CPC cut back to 17 cents.

“Don’t follow trends under any circumstances,” advises Liparteliani. “Diverse your advertising strategy, experiment with different ideas and don’t give up if your ad doesn’t show results right away.”

Launchpad Teardown: MedCrypt’s $25 Million Series B Platform

Many medical devices are just as vulnerable to cybersecurity threats as other IoT products. That’s why Y Combinator grad develops MedCrypt software to protect patients.

The company predicts that manufacturers will need to secure $1 trillion worth of “new and legacy” devices over the next three years, which is indeed an attractive TAM.

After working out some customer adoption details, MedCrypt’s founders shared with TC+ the 12-slide presentation that helped raise $25 million from Series B:

Title Slide Issue Slide Audience/Market Size Opportunity Slide Mission Slide Product Slide – Vulnerability Tracking Product Slide – Behavior Monitoring Product Slide – Encryption Product Slide – MedISAO Team Slide Summary/Pull Slide Dear Sophie, When can I register my employee for the H – 1B lottery ?

Dear Sophia,

We are a startup company considering sponsoring an H-1B visa for one of our first employees to stay in the US and work for us.

How does the process work?

— Search San Mateo

A guide to your first 90 days as a new CISO

I’m used to working under pressure, but taking on the role of director of information security feels extremely stressful: people are much more likely to hear about your failures than your successes.

Managing the cybersecurity needs of an entire organization is “a huge task that touches almost every part of the organization,” said Heather Gantt-Evans, CISO at SailPoint.

He has written a guide for aspiring CISOs that provides a framework for setting goals, creating action plans, and most importantly, documenting risk.

“The first 90 days of a new CISO’s tenure are critical,” writes Gantt-Evans. “They are the best opportunity you have to research, collect documentation and assess where things stand and how they can be improved.”

In a turbulent market, it’s time to be methodical when selling

Many SaaS sales teams haven’t worked in an environment where so many customers are turning corners, and it shows that when everyone is in the mood to buy, it’s less important to develop a critical understanding of your customers’ needs .

“Salespeople shouldn’t start promoting features right away,” advises Steve Goldberg, Chief Revenue Officer at Salesloft. “They should illustrate the unsustainability of a customer’s current behavior and processes.”

In this post, Goldberg discusses MEDDPICC and design thinking, two sales methods that are “particularly effective when the going gets tough”.