The Startup Newsletter — April 2022Industry Commentary
Table of Contents
- The Startup Newsletter — April 2022
- What’s Going On?
- Pandemic Startup Boom: Is it Over?
- In With the New
- What’s New from Embroker?
No, we aren’t going to talk about Elon Musk buying Twitter. Even though he did just make his mid-life crisis everyone’s problem. No, in our startup newsletter, we’re going to focus on the real heroes of Silicon Valley and beyond, what everyone seems to forget that Grimes’ ex-husband used to be: a founder.
Honestly, we couldn’t find a reliable source for when National Startup Day is, and, honestly, we don’t care. For our April Startup Newsletter, we’re focusing on the news stories, issues, and trends surrounding the heartbeat of the nation’s economy.
Let’s get into it.
What’s Going On?
Q1 US Venture Captial Trends in 5 Charts — PitchBook
Is the pandemic VC bubble about to burst?
Do investors have too much say in creativity and innovation?
Can fewer working days help with burnout? What does it mean for businesses?
Analyzing Insurance Costs for Startups
Embroker Vertical Insurance Index
How much are you paying for your insurance? Are you purchasing the right policies? Find out what founders are doing, and the trends that you may not have seen.
Pandemic Startup Boom: Is it Over?
We all remember how bad the pandemic was for most businesses. But, oddly enough, Silicon Valley made out pretty well. Like, really well. Since the start of 2021, US VCs invested over $70B, and have increased that investment in every quarter since.
Until Q1 2022, that is. While still around the $70B mark, last quarter saw the biggest dip in US VC funding in over a year. But why? Some say the economy is hard to predict right now, with inflation rates through the roof.
Others are citing shifting consumer trends and interests as lockdowns ease and Spring arrives. And, despite a news cycle including a Twitter buyout and Kim Kardashian’s belly button, there is still a war raging in Europe.
We may see a bounce back if things stabilize. But if the last two-or-so years have taught us anything, stability and normalcy are things of the past.
In With the New
Ignoring the general decrease in US VC funding in Q1, the startup world just keeps getting wilder. Well, specifically VCs.
According to Crunchbase News, while the sheer total amount of money VCs are spending may be down, the number of supergiant seed rounds is increasing.
To better define yet another fun and totally accessible Silicon Valley bro term, “supergiant seed rounds” are defined as those that exceed $10M. In 2021, there were 156 of these such seed rounds, up from 64 in 2020.
You might be thinking, “oh, well, the pandemic, right?” Wrong. There were 56 of them in 2019, and we’re already at 90 for 2022. It seems that, while investors may be wary to invest in proven or existing startups, the excitement around blossoming projects is more alive than ever.
That isn’t even to mention VCs actually increasing their investments for crypto companies that have been hacked to “protect investments and restore user trust.”
According to Embroker’s newly released Startup Insurance Benchmarking Report, Directors & Officers insurance premiums increase by 155% when substantial funding is introduced.
For more on the state of startup insurance coming out of 2021, and trends for 2022, check out the full report below.
You can even calculate what insurance might cost you with our newly updated calculator, also below.
What’s New from Embroker?
Upcoming Events, Stories, and More
What can our 2021 insurance data tell us about tomorrow’s business risk? Check out our new report to find out.
Estimate the price of insurance for your startup by finding the average costs for similar companies using our simple, accessible, newly updated calculator.
Blockchain technology is increasingly surfacing throughout the business and practice of law. Join us on May 19 to learn what lawyers should do to prepare.
For more startup newsletters and content like this, check out the Embroker blog.
Tyler Chalk, Senior Account Executive, has been part of the Aviation & Aerospace Insurance Practice since 2015. Tyler sat down with the Embroker Team to share how he helps companies manage risk and customize insurance policies to fit their needs. Read on to learn more about Tyler.
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