Welcome to another edition of our newsletter! You’ll get practical start-up tips delivered straight to your inbox each week.
In this week’s edition, we share:
- Three takeaways for startups after big tech’s Q3 earnings pummeling
- Good news writers, decentralized newsletter platforms have arrived
let’s do it
Venture capitalist James Langford, who has provided more than $900 million in capital to more than 80 companies, believes that public market investors are punishing Big Tech for various strategic mistakes. He also believes this offers valuable lessons for startups to learn:
- Forecast customer demand to help guide your capital allocation decisions: Hiring driven by the desire to recruit talent before your competitor rather than customer demand? Wrong move. Ideally, startups hire on the basis of need, driven by customer demand.
- Create a detailed plan to achieve your income goals: When times get tough, a solid plan is more important than ever. Start forecasting the top line by understanding your market opportunity and all aspects of your funnel, then budget accordingly.
- Recurring revenue models are more valuable in down cycles: The toughest economic cycles are a reminder of why companies moved toward subscription-based revenue models. Those with sustainability in their cash flows have an advantage.
👉 Read more: Three Takeaways for Startups After Big Tech’s Third Quarter Earnings Pounding
We are moving from the economy of content access to the economy of content ownership. The latest technology that Web3 has revamped is the newsletter, and Paragraph.xyz is the first decentralized newsletter platform. Tim Denning describes the benefits:
- Full ownership of your content: Paragraph.xyz uses a permaweb, so your content will always be your property and can never be lost. You also own your social graph, a record of who you follow and who follows you.
- Faster loading times: The average newsletter or social media page takes about a second to load. Paragraph.xyz takes 200ms. This is also a big problem for SEO. The web version of your newsletter content is more likely to be found if it loads quickly.
- It is forcing other platforms to take shape. Users are getting smarter and will soon demand to own their data. When that happens, it will be even easier for writers to make money online and build a prosperous future.
👉 Read more about the Web3 newsletter: The first decentralized newsletter platform to pay writers has arrived