This Week in Startups

NEWS: Instacart and Klaviyo file for IPO, State of VC distributions, AI lawsuits | E1798

Aug 29, 2023

01:00:14

Snipd AI

This podcast discusses the upcoming IPOs of Instacart and Klaviyo, the decline in US VC exit value, the challenges of fundraising in the current LP market, the history and valuation of Instacart, the growth of its advertising business, and the success of Klaviyo in personalized email marketing.

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Quick takeaways

Startups should prioritize evaluating performance metrics over pitches when making funding decisions.

The decline in venture-backed tech IPOs is causing a scarcity of liquidity events and impacting fundraising for venture capital firms.

Instacart has experienced significant growth in advertising revenue, indicating the shifting trend of advertisers towards platforms like Instacart.

Deep dives

Importance of Performance and Overreaction in Funding Decisions

In the podcast episode, the speaker highlights the shift in funding decisions from being based on pitches and promises to now prioritizing performance. The discussion emphasizes the importance of evaluating the actual performance metrics of potential investments, such as customer base and churn rate. While some may view this shift as an overreaction, the speaker argues that it is necessary to adapt to the current game on the field, where survival is key.

The LP Market and Its Impact on Founders

00:52

The Shift Towards Direct-to-Consumer Stores and its Benefits for Society

01:20

Introduction

2min

Analyzing IPOs and VC Exit Value Decline

6min

Impact of Regulatory Environment on Acquisitions and IPOs, Importance of SOC2 Compliance, and Introduction to Vanta

2min

The Challenges of Raising Funds in a Tight LP Market

10min

Building Strength and Going 'Prison Strong'

4min

Instacart: Valuation, Metrics, and Advertising

13min

Shift in Entrepreneurship and Innovative Real Estate Investing

2min

Klaviyo: Personalized Email Marketing Platform

22min

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Today’s show:

Jason breaks down the exit market for LPs (8:57), Instacart and Klaviyo’s IPOs (22:13), writers suing OpenAI and Meta (50:15), and more!

Time stamps:

(0:00) Producer Nick joins Jason

(2:27) The significance of Instacart and Klaviyo’s IPO filings

(5:41) The VC exit market

(7:50) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist

(8:57) The exit market for LPs and over-indexing in venture

(13:57) VC bloat and current state of the market

(20:39) Carta - Get 10% off your first SPV at https://carta.com/twist with promo code TWIST

(22:13) Breaking down Instacart’s S-1