The National Venture Capital Association reported a 52% decrease year-over-year in Q1 2023 deal count for seed-stage startups. While this may be a good time for seed-stage investors to take a break, founders must evaluate the value provided by their investors. Navin Chaddha, managing partner at Mayfield Fund, suggests using a ten-question checklist to assess whether potential VCs are a good fit. Recent trends such as banks failing, the Fed raising interest rates, and SaaS startups focusing on long-term profitability have created a new normal. In this post-low-interest rate world, hardware companies must find new ways to raise their Series A.
The increasing use of AI-enabled technology has raised concerns regarding whether companies are creating legal issues for themselves down the road. Shylah Alfonso, Henry Hauser, and Chris Williams, attorneys from Perkins Coie law firm, warn that developing AI with the purpose of making purchasing decisions, setting compensation or developing pricing algorithms could run afoul of federal and state laws regarding consumer protection and antitrust. They recommend organizations create policies and processes that prioritize human control and accountability to minimize legal exposure.
The Fed recently announced a new initiative, FedNow, which will allow instant payments 24/7/365, offering lower transaction costs and real-time settlement. This platform is predicted by Fika Ventures Managing Partner TX Zhuo to create new avenues for fintech companies of every size, with effects that could be realized as early as next year. Though global investment activity has slowed, 2022 was a record year for the Japanese VC market, with investors remaining optimistic despite uncertain macroeconomics. Kate Park interviewed six investors active in Japan’s startup ecosystem to learn more about their strategy.
