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Welcome to Startups Weekly, a fresh look at this week’s startup news and trends. To get this in your inbox, sign up here.

Early stage startups, or companies that use their own revenue or existing cash flow to fund growth instead of relying on outside sources of capital, are in a completely different box than venture capital startups. In keeping with the nature of the asset class, seed startups prefer revenue to sustain life, while VC-backed startups prefer growth to retain investor buy-in for future runway needs. Startup companies are less likely to follow an exponential growth curve, while VCs should be exceptional.

Throw in recession and both sides get a little more interesting. The built-in business discipline of self-booting startups can feel especially resilient to a downturn when overfunded companies announce layoffs. As businesses become more interested in the stable foundations of the startup group, isn’t it time for startups to branch out?

It’s time for Healthie, a payment processor for healthcare companies, to hit the venture capital “treadmill” after six years as a startup, according to co-founder Kavan Klinsky.

“If you’re an early-stage company but haven’t logged in yet [venture] treadmill, you have that option or the ability to choose when to get up,” he said. “Once you’ve already built a bunch of businesses, you’re kind of building a business for enterprise scale, whereas when you launch … you can be really, really opportunistic about what’s the right time.

For a full review, read my TechCrunch+ column: Will once-bootleg startups become risky at a turning point?

In the rest of this newsletter, we’ll take a look at Honey for the real world and some of the big layoffs happening in tech. As always, you can support me by forwarding this newsletter to a friend or follow me on twitter.

Deal of the week

If only Pogo had its own, you will be paid every time you walk down Market Street in San Francisco. Or check your email. Or open its app. The only catch is that in return, you’re handing over your personal data to consumer-facing fintechs. In other words, Pogo wants to give users money in exchange for their data.

I dug into the startup, which just raised a $12.3 million seed round led by Josh Buckley and a previously unannounced $2.5 million pre-seed round, and your goals for TechCrunch this week.

Here’s why it’s important: Pogo will have an intimate window into someone’s life, from where they live to their favorite coffee shop to how many subscriptions they have. It looks like something a bank would see, but it’s a startup backed by an enterprise it wants you to trust.

The Electronic Frontier Foundation, a nonprofit protecting civil liberties in the digital world since 1990, describes the idea of ​​exchanging data for money as a “data dividend.” In the essay, the organization urges consumers to rethink whether getting paid for their data really redresses the existing imbalance between users and corporations.

The EFF asks a number of questions, such as who will determine the value of certain data and what makes your data valuable to companies? Beyond that, what does the average person gain from the data dividend and what does he lose in exchange for that extra cash?

Image Credits: Getty Images

Layoffs continue

There have been a number of significant layoffs this week, including:

Here’s why it’s important: This format almost doesn’t work for covering layoffs because it’s clear why losing people is an important dynamic to cover. The latest news I’ll cover next week is that we’re seeing founders go through two rounds of layoffs in a row.

A heavily charred, properly toasted and plain piece of bread on a yellow background.

Image Credits: jayk7 (opens in a new window) / Getty Images

If you missed last week’s newsletter

Read here: “Big Retirement Meets Big Reboot (Big Retirement, Please Down Those Ratings).” I also recorded an accompanying podcast with my co-author Anita Ramaswamy, which you can listen to here: “Explaining the Niche Aspect of Startup Employee Pay.”

Any requests for topics I could delve into, either at Startups Weekly or at the show? Bloom is a big question for me and I’ll try to do that either in a future Startups Weekly or on a podcast.

Seen on TechCrunch

Equal Ventures has a new pair of funds, filings show

Instagram gets worse with dark templates that have been removed from TikTok

If you think things are bad for Instagram right now, you won’t like Zuckerberg’s plans

That’s why the gold rush among NLP startups is about to begin

Sports community platform Stadium Live raises $10 million to expand the digital world for Gen Z

Seen on TechCrunch+

Build a strong deck for quarterly board meetings

Venture capitalists shrug off proposed changes to US interest taxation

Pitch Deck Teardown: Alto Pharmacy’s $200M Series E Deck

Now you can get startup shares for cheap

The Right Questions to Ask Investors When Raising Funds in a Down Market

Good! I’m going to the mountains. until next time,


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