Our favorite startups from YC’s Summer 2023 Demo Days

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By Walter Thompson

Friday, September 08, 2023

Welcome to TechCrunch+ Friday

Welcome to TechCrunch+ Friday image

Image Credits: Refat Mamutov/500px / Getty Images

Most startups never get past the pitch deck stage, so getting an investor to say yes can become a founder’s all-encompassing desire.

Getting into an accelerator like Y Combinator can open countless doors, but this year, some investors are saying that the higher valuations these startups obtain today will make fundraising more difficult later.

In a TC+ article that examines four different seed investor models, Work-Bench general partner Jonathan Lehr examines “the underlying incentives and biases of different investor archetypes, ranging from YC to seed firms to multistage firms.”

The Notorious B.I.G. wasn’t referring to high-valuation startups when he wrote, “It’s like the more money we come across, the more problems we see,” but it’s relevant here.

“Most Series A investors would look to at least 2x the valuation of the seed raise,” says Lehr.

“Consider the milestones that would be sought out in a scenario to justify a $20 million valuation doubling to $40 million, compared to a $12 million doubling to $24 million.”

Food for thought,

Walter Thompson
Editorial Manager, TechCrunch+

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Our favorite startups from YC's Summer 2023 Demo Day, Day 1

Our favorite startups from YC's Summer 2023 Demo Day, Day 1 image

For YC's first day of cohort presentations, Dominic-Madori Davis, Christine Hall, Alex Wilhelm, Rebecca Szkutak, Tim De Chant, and Anna Heim selected a baker's dozen of their favorite startups:

  • Constructable
  • Coba
  • Chow Central
  • Leafpress
  • Langfuse
  • Osium AI
  • Line.Build
  • Glade
  • Slingshot
  • Guac
  • Vendors
  • Cheq
  • CatX

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Our favorite startups from YC's Summer 2023 Demo Day, Day 2

Our favorite startups from YC's Summer 2023 Demo Day, Day 2 image

Image Credits: Bryce Durbin / TechCrunch

YC's Summer 2023 cohort is slightly smaller than it has been in recent years, which means there's less chaff for the TC+ team to sort through.

Yesterday, Alex Wilhelm, Christine Hall and Anna Heim identified their eight preferred startups from the summer batch's final day:

  • Envelope
  • Flint
  • Dili
  • Silicate
  • Parea AI
  • Magic Loops
  • Flex
  • Pure

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Blockchain tech needs a 'ChatGPT moment' to scale enterprise adoption

Blockchain tech needs a 'ChatGPT moment' to scale enterprise adoption image

Image Credits: wildpixel / Getty Images

What’s going to vault blockchain technology into the fore when it comes to enterprise software?

“I haven't seen any killer use case yet," said Gary Liu, co-founder and CEO of Terminal 3. “I think we're really, really early in enterprise adoption.”

At Korea Blockchain Week, Jacquelyn Melinek interviewed founders and investors about the headwinds the industry faces as it searches for ways to service blue-chip businesses.

“The use case needs to be nonexistent today,” said Yue Hong Zhang, managing director and partner of Boston Consulting Group. “This is how you bring in a new wave of users.”

Read More

Here's why some investors are sitting out of YC Demo Day

Here's why some investors are sitting out of YC Demo Day image

Image Credits: Bryce Durbin / TechCrunch

Y Combinator's Summer 2023 cohort took part in Demo Days this week, but seven investors Rebecca Szkutak interviewed said they were taking a pass.

"Demo Day is not really all that useful for pre-seed, seed investors at this point, as most of the companies are already funded," said Ameet Shah, general partner at Golden Ventures.

"It's useful for the larger funds that want to track companies/founders. Most of the work pre-seed/seed firms have to do [is] before demo day."

Read More

Ask Sophie: How do I move my startup to the US while my co-founders remain in India?

Ask Sophie: How do I move my startup to the US while my co-founders remain in India? image

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I am an entrepreneur with a company based in India.

Down the road, I want to move to the U.S. to seek venture capital funding to expand my company while my co-founders remain in India.

How can I come to the U.S. to set up my company and have my operation in India linked to it?

— Expanding Entrepreneur

Read More

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Pelosi isn’t done yet

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Sep 08, 2023 View in browser
 
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By Garrett Ross

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House Speaker Nancy Pelosi (D-Calif.) arrives at the U.S. Capitol Nov. 17, 2022.

Rep. Nancy Pelosi (D-Calif.) will seek reelection next year — extending her 36-year House career. | Francis Chung/E&E News/POLITICO via AP Images

NANCY PELOSI is coming back to Congress.

The San Francisco stalwart will seek reelection in 2024, she told volunteers today, per our colleagues Dustin Gardiner, Jeremy White, Jonathan Martin and Nicholas Wu — ending breathless speculation that had hung over the former House speaker ever since she stepped down from her leadership role last year.

The decision will extend Pelosi’s 36-year House career, as she is all-but-certain to be reelected in her deep-blue district, it also freezes a panoply of would-be California successors (and successors to those successors) in a longstanding holding pattern.

The return of the 83-year-old trailblazer should come as less of a surprise now than it might have just a couple of days ago — before our colleague Jonathan Martin offered new insight into Pelosi’s mindset.

Not only is Pelosi’s adopted hometown facing serious economic and social headwinds, it’s also facing a sudden erosion of veteran leadership in Washington — a subject that was top of mind for the former speaker as she spent the day tooling around town with JMart.

“Well let’s just go back about six years and we had Dianne, we had Barbara, we had Jackie Speier, now Jackie is gone, so we’ll see,” Pelosi said in the interview, “laying out the rationale for another run by invoking the three, veteran Bay-area lawmakers who’ve retired or are retiring: DIANNE FEINSTEIN, former Senator BARBARA BOXER, who stepped down in 2017, and former Representative JACKIE SPEIER, who left Congress at the start of this year.”

Read the full story: “Inside Nancy Pelosi’s Fight For San Francisco”

WOWZA — A special grand jury in Georgia recommended criminal indictments against Sen. LINDSEY GRAHAM (R-S.C.) and a slew of other DONALD TRUMP associates for their roles in the former president’s efforts to alter the 2020 election results in the state, according to a bombshell report released today.

The report is part of Fulton County DA FANI WILLIS’ investigation into Trump — which recently resulted in the indictments of 19 co-defendants including Trump on racketeering charges — and shows that the yearlong investigation led a majority of the panel to recommend Willis cast a much wider net. Read the full report

Others on the list of recommended targets:

  • Former Georgia Sens. DAVID PERDUE and KELLY LOEFFLER 
  • Trump adviser BORIS EPSHTEYN
  • Former national security adviser MICHAEL FLYNN
  • Attorney CLETA MITCHELL

“The special grand jury, a quirk of Georgia law, had no power to issue indictments but was required to make recommendations to Willis, who then pursued charges through a traditional grand jury,” our colleagues Kyle Cheney and Josh Gerstein write. “Trump and the other 18 defendants who were indicted on Aug. 14 were all on the list identified by the special grand jury. The newly released report indicates there was some dissent among the 23 special grand jurors and three alternates assigned to hear evidence related to the election probe.”

Playbook thought bubble: When it comes to the three senators, there is a reasonable conclusion that Willis skipped pursuing indictments due to the considerable legal complications they might have presented. Willis’ team is already facing attempts to remove her case to federal court, the first of many pre-trial matters, and litigating the scope of the Speech and Debate Clause in addition might not have been too appealing.

BIDEN ABROAD — President JOE BIDEN is in New Delhi for G-20 meetings. Earlier today, he met with Indian PM NARENDRA MODI for a bilateral meeting.

The coverage roundup:

Good Friday afternoon. Thanks for reading Playbook PM. Drop me a line: gross@politico.com.

 

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2024 WATCH

ROE V. RON — RON DeSANTIS has “privately complained” about JEFF ROE’s involvement with Never Back Down, the super PAC that is backing the Florida governor’s presidential run, WaPo’s Hannah Knowles reports, noting that one DeSantis donor heard the comments directly from the candidate. “DeSantis has also voiced anger over a pre-debate strategy memo from Never Back Down, which was publicly posted last month on the website of Roe’s firm, Axiom, these people said. One of them, the donor, said the governor was ‘apoplectic.’” It’s latest sign of strife inside the DeSantis orbit — though campaign comms director ANDREW ROMEO said the reporting is “totally false” and that the campaign is “thrilled” with Never Back Down.

HALEY’S GAMBIT — As NIKKI HALEY tries to push past DeSantis and establish herself as the de facto second-place runner in the GOP presidential field, she claims to be seeing momentum. “In an interview, Haley said the ‘phone hasn’t stopped ringing’ since the Aug. 23 debate with donors wanting to contribute or host fundraisers,” WSJ’s John McCormick writes from Claremont, N.H. “Her campaign says it raised more than $1 million in the 72 hours after the debate, including more online donations in the first 24 hours than in any other single day. Two-thirds of online contributors since the debate have been first-time donors.”

NEWSOM NEWS — California Gov. GAVIN NEWSOM is squashing the speculation that he might mount a last-minute bid to usurp Biden for the 2024 Democratic nomination. “We need to move past this notion that he’s not going to run,” Newsom told NBC’s Chuck Todd in an interview for “Meet the Press” that will air this Sunday. “I think there’s been so much wallowing in the last few months, and handwringing in this respect. But we’re gearing up for the campaign. We’re looking forward to it.” Read more from Kierra FrazierWatch the clip

JUDICIARY SQUARE

INSIDE STORY — “How the Supreme Court’s conservatives rebuffed Alabama,” by CNN’s Joan Biskupic: “The justices emerged from their first closed-door conference meeting on the case in October 2022 without a solid majority for either side, CNN has learned. Ordinarily, this meeting, held without any law clerks or other staff present, results in a clear understanding among the nine justices of which party will prevail in a case. In the Alabama dispute, sources said, it was far from certain which side would win.

“What happened next defied predictions from inside and outside the court. A series of negotiations, most notably between Chief Justice JOHN ROBERTS and fellow conservative Justice BRETT KAVANAUGH, transformed what many thought would be a ruling undercutting the Voting Rights Act into a forceful affirmation of the law.”

DEPT. OF NO SURPRISE — “Justice Alito rejects Senate Democrats’ call to step aside from an upcoming Supreme Court case,” by AP’s Mark Sherman

 

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CONGRESS

TICKING AWAY — “Our Best Weapon Against Food Insecurity Is in Danger,” by The New Republic’s Grace Segers: Recipients of Women, Infants, and Children benefits “may soon see significant cuts, or even lose these all-important benefits, if Congress does not take quick action to approve additional funding for the program” before the end of the fiscal year.

AMERICA AND THE WORLD

COULDA BEEN WORSE — “World’s Climate Report Card Says We’re Trying, but Urgently Need Improvement,” by NYT’s Brad Plumer: “Many of the worst-case climate change scenarios that were much feared in the early 2010s look far less likely today, the report said. The authors partly credit the 2015 Paris Agreement, under which, for the first time, almost every country agreed to submit a voluntary plan to curb in its own planet-warming emissions. Since then, the rise in global greenhouse gases has notably slowed. Yet those efforts still aren’t enough to avoid calamity, according to the report.”

FOR YOUR RADAR — “U.S. troop presence in Niger could drop by half as Pentagon repositions forces,” by Lara Seligman: “DOD recently began repositioning a number of forces away from the airport at Niamey to a second, smaller base at Agadez, some 500 miles away, Pentagon spokesperson SABRINA SINGH told reporters on Thursday.”

DANCE OF THE SUPERPOWERS — “China’s military seeks to exploit U.S. troops, veterans, general warns,” by WaPo’s Dan Lamothe: “China’s military is conducting a sophisticated exploitation campaign designed to ‘fill gaps’ in its capabilities by targeting current and former U.S. service members and harvesting specialized knowledge they’ve gained, a top general warned in a message obtained by The Washington Post.

“The document was distributed to Air Force personnel on Friday. It marks the Pentagon’s most direct attempt yet to call out and counter what U.S. officials characterized as an aggressive ploy by Beijing to leverage international firms that hire Americans to teach advanced military skills and tactics.”

Related read: “Apple Becomes the Biggest U.S.-China Pawn Yet,” by WSJ’s Dan Gallagher: “Still the world’s largest public company by market value, Apple has seen that value take a notable hit this week on increasing signs that its business in China might be coming under threat.”

 

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BEYOND THE BELTWAY

THE LATEST IN MAUI — “Grim Reality in Maui: Hundreds Still on Missing List a Month After Inferno,” by NYT’s Tim Arango and Lisa Schell: “Nearly all of Lahaina has now been searched by teams of rescuers, cadaver dogs and anthropologists trained to detect fragments of human remains, yet the official death toll has stood at 115 people for more than two weeks.”

PLAYBOOKERS

FIRST IN PLAYBOOK — Robert Weissman, Public Citizen president, and Joan Claybrook, Public Citizen president emeritus, will release a new book, “The Corporate Sabotage of America’s Future And What We Can Do About It,” on Sept. 21.

OUT AND ABOUT — SPOTTED at a party at Nelson Cunningham’s Georgetown house on Thursday night to celebrate C.W. Goodyear’s new book, “President Garfield: From Radical to Unifier” ($20.95): Mack McLarty, John Negroponte, Charles Borden, Neil Eggleston, Sahar Hafeez, Margaret Hawthorne, Amy Weiss, Cliff Sloan, Ken Weinstein and Amy Kauffman, Jonathan Winer and Doug Rediker.

Friends of the National Museum of the American Latino briefed artists and advocates yesterday on the state of the National Museum of the American Latino and the legislation that Congress must pass in order to build the museum, and had them meet with Sens. Ben Ray Luján (D-N.M.), Catherine Cortez-Masto (D-Nev.) and Majority Leader Chuck Schumer. SPOTTED: Ismael Cruz Córdova, Tonatiuh Elizarraraz, Sasha Calle, Belissa Escobedo, Constance Marie, Linda Yvette Chávez, Michael Cimino, Ruben Garcia and Carlos Éric López.

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California Today: The books that best explain the Golden State

Readers share the fiction and nonfiction works that shed light on our vast state.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Friday. Readers chose books that best explain the Golden State. Plus, how California's changing rules on hog farming are affecting the U.S. pork industry.

Illustration by The New York Times; photographs by Jerome Tisne/Getty

For weeks, readers have been sending me great recommendations for books that best explain California.

I've been using your choices to compile a California Reading List, a new project of this newsletter that's intended to guide people who are looking for their next great book about the Golden State.

Today I'm adding 10 books to the growing list, including "California: A History" by Kevin Starr, an epic telling of the state's past by a lauded historian and former state librarian. Also newly included are "The Tortilla Curtain," T.C. Boyle's 1995 novel about a Mexican couple trying to make it in Los Angeles; John Steinbeck's classic "East of Eden"; and "The King of California" by Mark Arax and Rick Wartzman, about how the Central Valley became an agricultural empire.

You can peruse the full California Reading List here. The latest additions are shown in bold. And feel free to keep emailing me your suggestions at CAtoday@nytimes.com.

Here are some of the other new selections and what readers had to say about them, lightly edited for clarity:

"Where I Was From" by Joan Didion (2003)

"Born and raised in Berkeley, I had a disdain for the Central Valley and Sacramento — hot and flat, they seemed to me — until I read this book. It opened my eyes (and my mind) to the depth of history, the richness of family and community, the importance of place, and the wonder that is all of California." — Peg Cahill, Mt. Shasta

"Written in 1946, it is the fascinating story of how Southern California got well on the road to what it is today. It starts with geology and the all-important climate, but is filled with larger-than-life characters like Helen Hunt Jackson, Aimee Semple McPherson and the makers of Hollywood. This is a must-read for anyone who wants to understand the region and its hold on America." — Dave Wilkinson, Moorpark

"Cadillac Desert" by Marc Reisner (1986)

"It's a terrific mix of firsthand journalism, deep research and great storytelling, and it reveals just how precarious the West's interdependent water supply is. Throw in political rivalries, underhanded deals, and the larger battle between the increasing demands of new arrivals and an overtaxed ecosystem, and you have a landmark work. It was written more than a generation ago, but its story of the conflict between land development and water policy in the American West remains one of the nation-shaping stories of today." — James Daly, Alameda

"Properties of Thirst" by Marianne Wiggins (2022)

"Set mostly during World War II in central California, it is written in such marvelous prose. This sprawling masterpiece is filled with multigenerational coming-of-age stories and dives into the California water wars, as well as the birth (and shameful disgrace) of the Japanese internment camp at Manzanar. It shines a light on the cultural and class differences of that era. There is much about agriculture and the produce native to central California, and there is lots of cooking." — Nancy Dolan, Oxnard

"This incredible deconstruction and examination of the myth of the Golden West is a brilliant cultural geography of Los Angeles. From the ruins of Llano to the founding of the Church of Scientology, Davis illuminates the power structures that have controlled Los Angeles since its founding." — Elizabeth Rood, San Francisco

"Ramona" by Helen Hunt Jackson (1884)

"A love story set in Southern California (numerous locations lay claim) during the period of annexation following the Mexican-American war, the novel established much of the cultural identity, architecture and myth of early Southern California. Inspired by the real-life marriage of Hugo and Victoria Reid, the story was originally serialized in 1884. Now with over 300 reprintings, five film adaptations and an annual live 'pageant' in Hemet, 'Ramona' is considered the 'Uncle Tom's Cabin' of the white settlement of California." — Reed Vickerman, San Diego

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A meadow in Yosemite Valley, flooded with snowmelt.Mario Tama/Getty Images

The rest of the news

  • As climate change continues to worsen the peril of drought in California, state officials are working on a new framework for water use that could require suppliers to reduce usage by 20 percent or more as soon as 2025, The Los Angeles Times reports.
  • Retailers in California, and pig farmers and processors thousands of miles away, are bracing for the impact of a state ban on some sources of pork.
  • Warner Bros. has moved to suspend deals with some television writers, including Mindy Kaling and J.J. Abrams, escalating the labor dispute between the Hollywood studios and the Writers Guild of America.

Southern California

Northern California

  • Ryan Salame, a former high-ranking executive of the cryptocurrency exchange FTX, is scheduled to plead guilty to criminal charges linked to the sweeping fraud case against FTX's founder, Sam Bankman-Fried.
  • A former software engineering manager is suing X, formerly known as Twitter, for breach of contract after he was fired last year for being disruptive and disrespectful in the workplace, The San Francisco Examiner reports.

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Mountains in San Diego County.Sandy Huffaker/Corbis via Getty Images

Where we're traveling

Today's tip comes from Lynn Field-Karsh, who lives in Alpine, in the San Diego mountains:

"As fall approaches, consider a scenic morning hike (or horseback ride) through gently rolling hills out to Eagle Rock, in the San Diego County mountains. You'll traverse a section of the Pacific Coast Trail. After taking your picture with the Eagle, hike back and then stop in for lunch in Santa Ysabel or try my favorite place in the area, Heroes Pizza in Wynola, just outside Julian. Yummy pizzas, salads and draft craft brews with both indoor and outdoor seating to refresh yourself after your efforts."

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Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Tell us

Today we're asking about love: not whom you love, but what you love about your corner of California.

Email us a love letter to your California city, neighborhood or region — or to the Golden State as a whole — and we may share it in an upcoming newsletter. You can reach the team at CAtoday@nytimes.com.

Bioluminescent plankton lighting up the shoreline at Dockweiler State Beach in 2020.Mark J. Terrill/Associated Press

And before you go, some good news

Blue bioluminescent waves have been seen lately along the Southern California coastline, from San Diego to Oxnard. This week, the stunning light show appeared late at night in Orange County, where algae turned the water a bright, electric hue, The Orange County Register reported.

"Last night the bioluminescence in Huntington was absolutely incredible," Patrick Coyne, a photographer based in Torrance, told the news outlet.

Thanks for reading. I'll be back on Monday. Enjoy your weekend. — Soumya

Briana Scalia, Maia Coleman and Kellina Moore contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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