The end of the demo day, dilution and other startup accelerator resolutions – TechCrunch

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In April 2020, NextView VC launched its debut accelerator in the midst of the pandemic, while historic incubators such as Y Combinator and 500 Startups were similarly rethinking their standalone strategies. Major tweaks such as making batches out entirely and scrapping the cohort model have given us a peek at how some of the most active pre-seed and investors are rethinking their jobs.

Fast forward perhaps for several months, NextView partner Melody Koh tells me that the accelerator is releasing its third batch with some major tweaks, again pointing to some interesting changes to the startup scene in the initial phase.

The first big change is that NextView increases its check size from $200,000 for an 8% ownership stake to $400,000 for a 10% ownership stake. The large check volumes in this economy are not at all surprising, but Koh’s view is that the cash “will provide companies with a bit of ammunition that they can really prepare.” Away from market pressures, the company realized that they were the only sources of funding for many of the crowdfunding startups – which meant they had to make larger initial investments to get these companies to really pursue funding.

“It just provides more flexibility and the ability for teams to really experiment, execute, and get to the next stage of the milestones that this market is looking for now,” she added. To date, more than 50% of NextView Accelerator Program graduates are identified as underrepresented founders and come from cities including Miami, Seattle, Boston, Birmingham, San Diego and New York.

Given its distributed format, the company had to update its guidelines. This time, you’re pairing each of the six to eight startups groups with a primary partner for weekly meetings and a secondary partner for monthly meetings. The former will give the company a more continuous resource while they are in the weeds and is a result of feedback that NextView has seen from previous groups. A more engaged partnership model can bring startup founders more energizing power when they need it most.

Finally, the company is doubling down on the no-day trial rule. Part of the argument here is that the idea of ​​a glamorous annual event may no longer be necessary for founders to attract the requisite interest.

“We don’t feel like artificial deadlines, and today’s trial date format is the best use of your time,” Koh said. “The way we approach each company is…” Well, each of you have a different set of milestones that work for you, “so we don’t really focus on Show Day as the right way to put their energy or ours.”

NextView isn’t alone in rethinking Show Days and its broader investment strategy. Companies like Contrary Capital and startups like Launch House are similarly looking for smarter ways to close deals and push startups.

Even in a world where capital is a commodity, investors are preparing – and perhaps more so – to find innovative ways to make their money more valuable to founders. The “value-added” chatter can be embarrassing at times, but to me it only indicates that an emerging class of investors is discovering their best (other than discovering aspiring founders). It’s fun to see, and even something as small as adjusting the format of the metronome can give us something to think about.

For my full info on the subject, check out my TechCrunch+ column: Defining startup accelerators for ‘added value’ Time to update.

In the rest of this newsletter, we’ll be looking at the trends of CES 2022, a fintech startup with a conflicting view of CAC and an edge on the future of Black Girls Code. As always, you can follow my thoughts on Twitter nmasc_ Or listen to me and my friends on Equity.

Vital Signs Bulbs & Cute & Smart Cat Collars

Image credits: Take Crunch

From clever cat collars to color-changing cars, CES has never failed to surprise us. While the TechCrunch team opted to cover their annual tech conference remotely due to the spike in COVID-19 cases, our reporters around the world were up on the latest and greatest sneak peek into the technology. All of our CES coverage can be found at this nifty link, but I’d recommend starting with Brian Heater’s CES 2022 topics just to dampen your taste buds.

Here’s what you need to know: Notable announcements to date include BMW’s plan to turn cars into rolling cinemas, a mission to expand the range of paper toothbrushes, and, on a more serious note, a statement about the importance of a pillow that tracks your child’s temperature.

Other “wait” moments include:

And start the week…

Financial risk concept with dollar sign hole and footprints on blue background.  3D view

Image credits: Peshkova (Opens in a new window) / Getty Images

Pankaya! As our own Marie Ann Azevedo reports, this Mexican fintech is choosing an unorthodox strategy when it comes to customer acquisition: going offline. The new company, in its early stages, targets 50 million underbanked individuals with face-to-face advertising: think street sales and strategically placed debit card kiosks in vaccination centers.

Here’s what you need to know: Just a year after the launch, Mauricio Cordero, Ramon Chidrai, and Diego Vargas, CEO of the founders of Caya Bank, claimed to have acquired 450,000 customers. In addition to their counter-intuitive strategy, the company is fully equipped to date.

Honor mentions:

Kimberly Bryant and the future of Black Girls Code

Kimberly Bryant

Image credits: Sean Mathis/Getty Images

During the holidays, news emerged that Black Girls Code co-founder and CEO Kimberly Bryant had been “indefinitely suspended” from the nonprofit she launched nearly a decade ago. I’ve spoken to the nonprofit’s board of directors who decided to put it on furlough, former employees alleging rising tensions between Bryant and the organization, and of course Bryant herself to get the full story.

Here’s what you need to know: There are too many nuances in this story to sum it all up in perfect propaganda, so I would really recommend those interested to read the whole story. As of now, the board claims it set up a special committee to review complaints against Bryant from past and current employees and put Bryant on paid administrative leave last week “to ensure a full and fair review process.”

Startup Panels 101:

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all the week

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Ah, friends, it’s good to be back,

n

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