I understand that it might be unfair to assume that angels approach investing in the same way as professional institutional pre-seed investors. However, amateur investors could benefit from adopting some strategies from the pros. In this somewhat critical discussion, originating from someone who lacks the financial capacity to engage in significant angel investing and therefore might be overlooked by regular angel investors, I analyze some common mistakes made by angels.
Now, shifting away from this startup-related rant, let’s explore what else has kept our group of company correspondents busy this week…
Another Slice of Apple
Unless you’ve been living under a rock or avoiding the news altogether this past week, you’re likely aware of the latest developments in the Apple ecosystem. Apple has introduced new iPhones, namely the iPhone 15 and the sleek iPhone 15 Pro with its titanium finish. Notably, these new models now come equipped with USB-C, aligning with a broader trend of Apple products adopting this technology. The improvements don’t stop there; the camera capabilities on these phones have advanced, even enabling 3D video capture. Additionally, Apple introduced a fresh Apple Watch, now available in a charming pink hue, among other exciting announcements.
One unexpected highlight of the week was Olivia Rodrigo releasing a brand-new video, “Get him back!”, which was filmed using an iPhone 15 Pro. Needless to say, the results are stunning.
While it’s true that not every move Apple makes directly impacts startups, it would be unwise to ignore the actions of the world’s most valuable company. Darrell offered a unique perspective, suggesting that as the iPhone becomes more powerful, it could increasingly serve as a viable platform for high-budget gaming titles.
If you’re curious about our most-read Apple stories, I suspect I’m sharing proprietary information here, but with everyone gearing up for Disrupt next week, I doubt anyone will notice me slipping this into the newsletter:
The Roundup: You all seem to love concise summaries of key developments, so it’s no surprise that Christine’s overview of the event garnered significant attention: “Apple Event 2023: Everything announced so far.”
iPhone 15 Launches: Naturally, everyone wanted to know what the iPhone 15 had in store. Brian delved into the details with his comprehensive coverage, including “Apple’s iPhone 15 arrives with USB-C (finally).” His post about the iPhone 15 Pro was also incredibly popular.
Farewell, Lightning: Alright, I may be slightly biased here, but I couldn’t resist including this because one of my stories gained some popularity: “Apple ditches the Lightning connector in favor of USB-C after exactly 11 years.”
What’s Happening in the Fintech World?
In the aftermath of the 2008 global financial crisis, central banks drastically reduced interest rates to near zero. As a result, capital flowed into various alternative avenues, including LP funds, VC funds, and ultimately, promising young startups. Michael Sindicich suggests that this environment allowed for the emergence of business models that would have been unfeasible under normal circumstances. The question now looms: Is the house of cards about to collapse?
Entrepreneurs are known for their innovative spirit, and that’s precisely what led to the creation of a company designed to help other businesses shut down more efficiently and cost-effectively. It’s a bold proposition, but SimpleClosure managed to raise $1.5 million in less than a day to assist struggling startups in making a graceful exit.
Amidst the challenges, some fintech startups offer glimmers of hope:
Neobank Growth: While many startups struggle to secure new equity investors, the world of debt financing continues to heat up. The U.K.-based neobank Zopa recently raised an additional $93 million as it reached the milestone of serving one million customers.
Challenging Coinbase and Binance: Following the collapse of FTX, crypto traders are seeking decentralized, noncustodial, and safer alternatives for executing orders and safeguarding assets. Brine Fi just secured a valuation of $100 million to address this need.
Inclusivity Matters: Serving underserved communities in the financial sector is no easy task, but Alza has emerged from stealth mode to offer affordable and inclusive financial solutions to immigrants.
Y Combinator Demo Day and More
Last week marked Y Combinator Demo Day, bringing a flood of investment opportunities to VC firms. Some investors chose to skip this year’s event, but we’ve identified our favorite startups from Day 1 and Day 2. We also spoke with several founders who have repeatedly participated in YC to understand the value they found in returning to the program.
In other startup news, we celebrated the success of AI reading coach startup Ello, which raised an impressive $15 million to support child literacy.
Regarding education, I conducted a thorough analysis of Tomorrow University’s pitch deck. Despite gearing up to offer an MBA program, the deck read more like a manifesto than a traditional fundraising pitch. While manifestos have their place, they may not be the most effective approach for raising funds.
Keep an Eye on These Funding Rounds
Innovative Housing: Mighty Buildings secured $52 million in funding to construct 3D-printed prefab homes.
Indian Fintech Expansion: Perfios, an Indian fintech company specializing in real-time credit underwriting solutions for banks and non-banking financial institutions, raised $229 million to expand into North America and Europe.
Safety First: Fresh from the Burning Man event, Certa, a compliance and risk management startup, raised $35 million to enhance safety and risk management practices worldwide.
