{"id":1197418,"date":"2022-09-02T17:37:52","date_gmt":"2022-09-02T17:37:52","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/09\/02\/fighting-fundraising-fears-xaas-cs-strategy-the-collapse-of-vc\/"},"modified":"2022-09-02T17:37:52","modified_gmt":"2022-09-02T17:37:52","slug":"fighting-fundraising-fears-xaas-cs-strategy-the-collapse-of-vc","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/09\/02\/fighting-fundraising-fears-xaas-cs-strategy-the-collapse-of-vc\/","title":{"rendered":"Fighting fundraising fears, XaaS CS strategy, the \u2018collapse\u2019 of VC \u2013"},"content":{"rendered":"

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Ever traveled on a cruise ship?<\/p>\n

Pre-COVID, most journeys started with a shipwide safety drill where passengers assembled, donned life vests and learned what to do in an emergency.<\/p>\n

The ocean has an average depth of 2.3 miles, yet these rehearsals were always a calm affair. You\u2019re starting a vacation; what could possibly<\/strong> go wrong?<\/p>\n\n

Full + articles are only available to members.
Use discount code TCPLUSROUNDUP<\/strong> to save 20% off a one- or two-year subscription.<\/i><\/p>\n\n

Similarly, there\u2019s no reason to be fearful about raising money, but like carefree cruisers at full sail, founders should have healthy respect for a process that\u2019s not under their control.<\/p>\n

\u201cAny change is an opportunity to create leverage, and a downturn is no exception,\u201d writes Masha Bucher, founder and general partner of early-stage VC firm, Day One Ventures.<\/p>\n

In this TC+ post, she discusses the current economic environment and shares \u201cactionable tips for closing pre-seed to Series B rounds.\u201d<\/p>\n

We\u2019re publishing on a diminished schedule over Labor Day weekend, so I\u2019ll be back next Friday with another roundup. Thanks very much for reading!<\/p>\n

Walter Thompson
Editorial Manager, +
@yourprotagonist<\/a><\/p>\n

Crafting an XaaS customer success strategy that drives growth<\/h2>\n
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Image Credits:<\/strong> THEPALMER (opens in a new window)<\/span> \/ Getty Images<\/p>\n<\/div>\n

Giving users better service than they expect could literally save a software startup. In one study, companies that spent 10% of their yearly revenue on customer success attained peak net recurring revenue.<\/p>\n

\u201cCompanies mostly deploy two or more customer success archetypes,\u201d according to The Alexander Group\u2019s Rachel Parrinello and John Stamos. \u201cThey usually vary by customer segment, business versus technical focus and sales motion focus: adopt, renew, upsell and cross-sell.\u201d<\/p>\n

If you\u2019re interested in optimizing revenue through customer success, read the rest for a full overview of the customer success job design methodology, because \u201ccompanies should not design their customer success roles in a vacuum.\u201d<\/p>\n

We need to unlearn the lessons of the 2021 fundraising bubble<\/h2>\n
\"hand<\/p>\n

Image Credits:<\/strong> kulkann (opens in a new window)<\/span> \/ Getty Images<\/p>\n<\/div>\n

Does your startup have a data room? Are you calculating the ROI for each new hire before you extend an offer letter?<\/p>\n

At the risk of invoking the \u201cdo you even lift?\u201d meme: every process inside your organization can be improved, and founders need to make gains wherever possible, writes Immad Akhund, co-founder and CEO of Mercury.<\/p>\n

\u201cUse this tighter market to prepare and ensure your business is scalable, and you\u2019ll do better when fundraising.\u201d<\/p>\n

Dear Sophie: What are the quickest visa options for bringing in international talent?<\/h2>\n
\"lone<\/p>\n

Image Credits:<\/strong> Bryce Durbin\/<\/p>\n<\/div>\n

Dear Sophie,<\/strong><\/p>\n

Our startup is recruiting engineers. Most of our team works remotely, but some of our potential recruits would want to work in the office. They are international students graduating in December, as well as some individuals who have worked with us remotely as contractors.<\/strong><\/p>\n

What are the quickest visa options we should consider? Can their supervisor work remotely? Anything else we should keep in mind?<\/strong><\/p>\n

\u2014 Rigorous Recruiter<\/strong><\/p>\n

Stop sensationalizing the \u2018collapse\u2019 of VC: Look at the data<\/h2>\n
\"Card<\/p>\n

Image Credits:<\/strong> perrygerenday (opens in a new window)<\/span> \/ Getty Images<\/p>\n<\/div>\n

For many founders looking to raise money, this is a terrible time. Fundraising is taking much longer than it used to, and valuations are much lower than a few months ago.<\/p>\n

For investors, however, things are settling back to earth, says Brian Walsh of WIND Ventures.<\/p>\n

\u201cThe reality is that there was an unprecedented hype cycle in 2021, and what we have seen since the beginning of 2022, objectively, is a \u2018reversion to the mean\u2019 in line with long-term trends.\u201d<\/p>\n

To reach fintech\u2019s next level, infrastructure providers must address these pain points<\/h2>\n
\"Fifty<\/p>\n

Image Credits:<\/strong> Jeffrey Coolidge (opens in a new window)<\/span> \/ Getty Images<\/p>\n<\/div>\n

Can infrastructure companies like Stripe, Plaid and Klarna help struggling fintech startups cope with shrinking valuations and lackluster deal flow?<\/p>\n

Perhaps, but \u201cto do this, they\u2019ll have to take a closer look at the problems those customers deal with on a daily basis,\u201d writes Laura Spiekerman, co-founder and chief revenue officer of Alloy.<\/p>\n

Moving faster to find better ways to prevent fraud and align products with interest rates can unlock greater potential in the sector, says Spiekerman.<\/p>\n

\u201cInfrastructure providers must reprioritize and find a way to grow their capabilities for their current customers instead of just signing new ones.\u201d<\/p>\n

An action plan for founders fundraising in fintech\u2019s choppy waters<\/h2>\n
\"The<\/p>\n

Image Credits:<\/strong> Jason Edwards (opens in a new window)<\/span> \/ Getty Images<\/p>\n<\/div>\n

Startup fundraising is an uphill sprint in times of plenty, but during a downturn, it\u2019s an absolute grind.<\/p>\n

\u201cIt\u2019s not you; it\u2019s the market,\u201d advises Ryan Falvey, co-founder and managing partner of Financial Venture Studio.<\/p>\n

\u201cThe best founders recognize that the goal is to close a round, not to maximize the price or minimize dilution,\u201d which means you should talk to as many investors as you can and take their money if terms are reasonable.<\/p>\n<\/div>\n