(opens in a new window)<\/span><\/a> \/ Getty Images<\/p>\n<\/div>\nIn an excerpt from his new book, All Money Is Not Created Equal<\/em>, Runway Growth Capital CEO and founder David Spreng gives TC+ readers a vivid explanation of how venture debt is raised.<\/p>\nFrom the breezy intro meeting all the way through \u201cconfirmatory due diligence,\u201d this article describes the process from the lender\u2019s side of the table. Some good news: You won\u2019t need a new pitch deck, and venture debt lenders \u201cdon\u2019t have a problem with\u201d signing NDAs, says Spreng.<\/p>\n
\u201cI would estimate that everything I\u2019ve outlined above should take about four to five weeks from our first phone call,\u201d he writes. \u201cThat means you\u2019d probably have a term sheet by week 5.\u201d<\/p>\n
Can insurtech recover from the \u2018death of insurtech 1.0\u2019?<\/h2>\n![\"Concept](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2022\/11\/GettyImages-1217171506.jpg\")
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Image Credits:<\/strong> Getty Images \/ marchmeena29<\/p>\n<\/div>\nI don\u2019t want to be a Gloomy Gus who says the startup ecosystem is driven by hype cycles, but in H1 2023, \u201cglobal insurtech funding declined more than 50%,\u201d YoY, Anna Heim and Alex Wilhelm write in The Exchange.<\/p>\n
\u201cThis morning, let\u2019s dig into what\u2019s happening with global insurtech startups and see if we can spot a little light in this murky bog that many insurtech companies are lost in.\u201d<\/p>\n
The bittersweet tale of two seed markets<\/h2>\n![\"seed](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2023\/07\/GettyImages-1400003953.jpg\")
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While seed-focused investors are seeing good deal flow, seed deal count is going down. Image Credits:<\/strong> Getty Images<\/p>\n<\/div>\nAccording to PitchBook, only 766 seed rounds closed in Q2 2023, a 26% decline from 1,044 deals in Q1.<\/p>\n
\u201cAnd that dip means the second quarter had the lowest number of seed deals we\u2019ve seen since Q3 2016,\u201d writes Rebecca Szkutak.<\/p>\n
\u201cIf things don\u2019t change, 2023 could be the slowest year for seed activity since 2017.\u201d<\/p>\n
Why this founder decided to replace himself as CEO<\/h2>\n![\"Recruit](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2020\/12\/GettyImages-838601280.jpg\")
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Image Credits:<\/strong> Getty Images \/ Jirsak<\/p>\n<\/div>\nMany say building a startup is a marathon, not a sprint. But in many cases, it\u2019s actually a relay race.<\/p>\n
Particle Health founder Troy Bannister told TC+ he launched a search for a new CEO after realizing that his skill set didn\u2019t align with the company\u2019s future needs.<\/p>\n
\u201cThere was an organic moment . . . that created this opening to ask that question: \u2018Is there someone better? Who would it be?\u2019 All of these questions started emerging, and it organically evolved into an action plan,\u201d he said.<\/p>\n
Deal Dive: Backing a founder again after they\u2019ve spun out from their acquirer<\/h2>\n![\"Performance](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2023\/07\/GettyImages-463289409.jpg\")
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Performance Livestock Analytics spun out from its acquirer to reach scale. Image Credits:<\/strong> Getty Images<\/p>\n<\/div>\nIn her latest Deal Dive column, Rebecca Szkutak looked at SaaS startup Performance Livestock Analytics (PLA).<\/p>\n
The cattle management software company was acquired in 2020 by animal health company Zoetis, but this week, PLA announced plans to spin out \u201cwith $7.5 million in funding from Builders VC and Alaris Capital,\u201d writes Rebecca.<\/p>\n
Builders GP Mark Blackwell \u2014 whose firm backed PLA\u2019s seed round \u2014 said he was \u201cjumping for joy.\u201d<\/p>\n
8 reasons why the venture capital market isn\u2019t as miserable as you think<\/h2>\n![\"down](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2023\/05\/GettyImages-1431116960.jpg\")
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Image Credits:<\/strong> Getty Images<\/p>\n<\/div>\nIf current funding trends persist, this \u201ccould be the slowest year for seed activity since 2017,\u201d according to Rebecca Szkutak.<\/p>\n
However, \u201cwe can also paint a brighter picture,\u201d claims Alex Wilhelm, who identified \u201cdata points and trends that indicate good reasons to retain some optimism that the worst days for startup fundraising are behind us for now.\u201d<\/p>\n<\/p><\/div>\n
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