Enterprise Weekly #401: VCs' Dry Powder, Stripe's 14% Layoff, and More
There’s a lot of noise about the state of VC. Some headlines are crying doom and gloom and some report it’s all roses. The reality is that it’s somewhere in the middle as macroeconomic uncertainty continues.
Looking at the data, VCs raised $151B between Q1 and Q3, bringing the industry’s total dry powder to $300B. Relative to past years though, a larger percentage will likely be earmarked to support existing portfolio companies at the expense of new investments.
On the startup front, median tech valuations were down nearly 29% in Q3 across nearly every stage with late-stage valuations down 50%. These dipped valuations, delayed IPOs, and soaring operating costs all came to a head this week as a slew of iconic companies announced layoffs. Most notably, Stripe, once perceived as ‘invincible’ to market conditions, laid off 14% of its workforce.
Companies are in panic mode as they try to offload their pandemic-level ‘growth at all costs’ operations and now 50%+ of US CEOs are planning preemptive layoffs within the next 6 months. Times are tough out there and likely only getting tougher.
To our entire enterprise tech community, keep your head up and keep fighting 💪
📚 Read more news:
Battery Ventures: OpenCloud 2022: How to Navigate Stormy Markets and Other Tips for Cloud Founders
TechCrunch: Revere Is Creating a Ratings System For the VC Industry
Gartner: Public Cloud End-User Spending to Reach Nearly $600B in 2023
The Information: Google’s Cloud Deals Hit a Wall
WSJ: Silicon Valley’s Share of Startup Deals Drops Below 20% for First Time
📚 Check out what’s new at Work-Bench:
We’re excited to welcome Daniel Chesley to the Work-Bench investing team as our new Associate! Daniel comes to us from operator life at NYC-based unicorn Hyperscience in previous GTM and Product roles. He’s already diving head first into developing future-state investment themes, identifying the next wave of enterprise founders, and supporting our portfolio companies with his operator mindset.
If you’re interested in meeting him, check out his AMA next week:
Company: AppMap
Role: Product Manager
Technology: Runtime Code Analysis
Funding: Unannounced
🌟 Company of the Week 🌟
Kosli raises $3.1M led by Heavybit
Infrastructure / Dev Tools • Seed • Oslo, Norway
Founders: Mike Long (CEO) & James Logan (CCO)
AiPrise raises $2M led by Y Combinator and Okta Ventures
Data / AI / Machine Learning • Seed • Santa Clara, CA
BuildWithin raises $2.4M led by Dundee Venture Capital
Future of Work • Pre-Seed • Washington, DC
GoodShip raises $2.4M led by FUSE
Future of Work • Seed • Nashville, TN
Pod raises $2.5M led by Paca Ventures
HR Tech • Seed • Los Angeles, CA
Reclaim.ai raises $3.2M led by Yummy Ventures, Operator Partners and Others
Future of Work • Seed • Portland, OR
Flowers Software raises $3.2M led by La Famiglia
Collaboration / Productivity • Seed • Munich, Germany
Solvo.ai raises $4M led by SpeedInvest and Frontline Ventures
Future of Work • Seed • London, UK
Metrist raises $5.5M led by Heavybit, Morado Ventures and Others
Infrastructure / Dev Tools • Seed • San Francisco CA
Retirable raises $6M led by Primary Venture Partners
HR Tech • Seed • New York, NY
Arnica raises $7M led by Joule Ventures and First Rays Venture Partners
Risk / Security • Seed • Alpharetta, GA
Port raises $7M led by TLV Partners
Infrastructure / Dev Tool • Seed • Tel Aviv, Israel
Givingli raises $10M led by Seven Seven Six
HR Tech • Series A • Beverly Hills, CA
Rewind.ai raises $10M led by Andreessen Horowitz
Collaboration / Productivity • Venture • Remote
Roots Automation raises $10M led by MissionOG
Future of Work • Series A • New York, NY
GoCo.io raises $15M led by ATX Venture Partners
HR Tech • Venture • Houston, TX
Momento raises $15M led by Bain Capital Ventures
Infrastructure / Dev Tools • Seed • Seattle, WA
Fringe raises $17M led by Origin Ventures and the Felton Group
HR Tech • Venture • Richmond, VA
Galileo raises $18M led by Battery Ventures
Data / AI / Machine Learning • Series A • San Francisco, CA
Orum raises $22M led by Tribe Capital
Sales / Marketing • Series B • San Francisco, CA
Attain raises $25M led by Mercato Partners
Sales / Marketing • Series B • Chicago, IL
Roam raises $30M led by IVP
HR Tech • Series A • Remote
Dataloop raises $33M led by TLV Partners
Infrastructure / Dev Tools • Seed • Tel Aviv, Israel
Project44 raises $80M led by Generation Investment Management and A.P. Moller Holding
Future of Work • Venture • Chicago, IL
Alation raises $123M led by Thoma Bravo, Sanabil Investments and Costanoa Ventures
Data / AI / Machine Learning • Series E • Redwood City, CA