This Week in Startups Snap drops 40%, Layoffs at Gorillas & Klarna, Adam Neumann's new startup, Coinbase using Principles | E1468
May 24, 2022
Snap's shares plummet by 40% after grim earnings forecasts, raising alarm bells in the tech world. Layoffs at Gorillas and Klarna signal tough times for instant-delivery and buy now, pay later sectors. Meanwhile, Adam and Rebekah Neumann launch a blockchain-based carbon credits startup called Flowcarbon, aiming to innovate in sustainability. Coinbase experiments with a new feedback system inspired by Ray Dalio, igniting discussions on workplace culture and performance ratings. Tune in for insights on navigating economic turbulence!
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Buy Now, Pay Later Vulnerability
- Klarna's layoffs and down round signal a potential vulnerability in the buy now, pay later sector.
- Their large workforce and marketing spend raise questions about their profitability.
Survival and Hiring
- Founders should focus on surviving the next 18 months by extending their runway and being more efficient.
- Take advantage of the current market to hire hardcore believers and potentially renegotiate salaries or replace overpriced employees.
Flight to Safety
- Downturns create a flight to safety, deterring less committed individuals from joining startups.
- This benefits startups by attracting more dedicated and resilient employees.
