Welcome to startups Weekly, a fresh, human look at this week’s startup news and trends. To get this in your inbox, Subscribe here.
If there’s one sector that’s relentlessly striving for magic metrics, it’s edtech. Over the past two years, I’ve spoken to every top investor and founder in the industry, and each of them have made their own independent arguments for what constitutes an effective outcome in education.
Some argue that graduation rates show the necessary engagement, while others say that it matters less how far you get in a course and more whether you show up and participate at the crucial moments. Some believe it’s time to reinvent rating systems, while others believe points are a way to break down disparities in acceptance rates. The magic metric that can do anything — encompassing results, engagement, and heck, even fun — has always had debates and frankly, trust issues. Even so, I rarely interview anyone who puts on record why there is so much disagreement, or perhaps more interestingly, why they are right and the status quo is wrong.
And that’s why my conversation with Nucamp CEO Ludovic Fourrage caught my attention. Fourrage, who has spent years building a coding boot camp with accessible pricing, tells me he no longer publishes job placement metrics in promotional materials. The move was taken to restore student confidence in the industry.
As I wrote in my story, the move is less about Nucamp declaring that it doesn’t market its placement rates and more about a broader issue: Job placement is the most sought-after outcome, but also one of the most difficult to obtain reaching . Of course, obscuring metrics can cast a questionable light on a startup. Nucamp doesn’t even share job placement metrics with learners once they join the platform. What she wants to achieve in the absence of deception she could lose in the absence of transparency. If your job placement rates were that good, why wouldn’t you apply?
For my full take on this topic, see my latest TechCrunch+ column: Should tech bootcamps continue to use job placement metrics in their advertising?
In the rest of this newsletter, we’ll look at Mos’ evolution from an edtech to a fintech and whether your product lead needs a career agent. As always, you can support me by sharing this newsletter, Follow me on Twitter or subscribe to my personal blog.
offer of the week
With $40 million more in funding, Moses evolves. Amira Yahyaoui founded the company in 2017 as an edtech company to help students navigate through applying to and attending college. Now she’s trying to build a “radical” fintech that can support the same user base through all of life’s similarly complicated demands.
When I spoke to Yahyaoui, she spoke about how fintech has become lively—from NFTs to fancy-branded credit cards. She’s determined to build for the masses, even if it doesn’t feel as exclusive and fancy.
“I wish I only had to convince 1,000 nerds,” Yahyaoui said. “But we have to convince 20 million students.”
That’s why, according to Lux Capital’s Deena Shakir, it’s important to: “Rather than being a player tangentially on the side of financial access and inclusion, they recognize they have a unique opportunity to be the primary bank, credit card and home [for] her students,” she said. In other words, the TAM increases.
Recognitions:
Photo credit: Bryce Durbin / TechCrunch
Could the Great Resignation force techies to hire career agents?
My most read article this week explored the hot tech industry hiring market and determined if it’s time for top tech talent to start hiring career agents. I looked specifically at Free Agency, a startup that recently raised a $10 million Series A, and its marketplace that matches in-demand techies with seasoned agents.
Free Agency helped a client secure a senior director of product position worth more than $900,000 in total compensation, a 53% jump over the client’s previous pay package. The company arranged 21 interviews with companies like Snapchat, Coinbase and Lyft without the client having to send a single application or email during their job search.
Therefore it is important: How I spoke about it in the latest Equity Podcast, we rarely see recruiters build for the employee rather than the employer. Free agency is a bet people are willing to pay so they can take a backseat and let a professional steer their career opportunities for them. To date, the company estimates it has helped candidates complete 4,700 job interviews and received $200,000,000 in negotiated compensation for total salary offers.
What a time to be an engineer at Stripe:
Photo credit: Bryce Durbin / TechCrunch
In the DMs
- Plexo Capital Raises $79.3 Million: Founded by former GV partner Lo Toney, Plexo Capital has closed a second $79.3 million investment vehicle to support early-stage startups and venture capital funds. According to SEC filings, this is just the first tranche – Toney is targeting a final close of $100 million for his latest fund.
- Has anyone had a busier 12 months than Josh Buckley? The startup CEO and investor, who served as Product Hunt’s chief executive, is on a launch tour with Hyper and prologue. His latest project? He’s raising a $500 million fund, according to SEC filings.
- Ro began is hiring for his new male fertility line, which fits into my report on the takeover of Dadi, a startup for sperm storage at home.
- OH from a TechCruncher: Microsoft feels like a startup again, right?
- OH from an early founder: Tiger just spent millions of dollars to help me recruit employees.
Photo credit: Bryce Durbin / TechCrunch
About the week
equity capital, the tech news podcast I co-host with Alex Wilhelm and Mary Ann Azevedo, is live! Join us for one virtual live recording of our show next Thursday February 10th — Tickets are free, puns are at the expense of our producers’ sanity. Our bestie pod, Found, is also joining the live circuit, so listen to them endlessly to prepare yourself.
Seen on TechCrunch
F*ck Creator Funds, we need a Creator Index Fund
The popular puzzle game Wordle is bought by the New York Times
Seen on TechCrunch+
Why Insurtech Investing in 2022 Might Surprise You
Amid falling public tech valuations, are startup investments moving fast enough?
Despite bumps, 2022 is starting with a roar for crypto investing
How to build and maintain momentum in your fundraising process
Until next time,
