Technical due diligence, web3’s promise, how to hire well • TechCrunch


In the movies, screenwriters always include a moment known as the building promise. It is part of the story as the audience settles into the new world they have entered.

One of my favorite examples is in the first Harry Potter movie, when Hagrid takes Harry to Diagon Alley, the magical shopping district that introduces him (and us) to the world of magic.

Until now, web3 did not pay off on the promise of the building: open source software that runs directly on the blockchain.

“Web 2.0 application development is still a lot easier because the ecosystem is mature and has a large and thriving developer community,” says Devin Abbott, who specializes in design and development tools, React applications, and web3.

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According to Abbott, the web 3 development community is approaching “an inflection point where our proprietary tools become very powerful,” but “that doesn’t mean Reddit is giving up on Web 2.0 cloud servers.”

So far, most of the hype on Web 3 comes from investors and journalists, so Abbott’s perspective as a developer makes this a useful read.

Most of the early use cases for Web 3 do not interest me. Then again, I am not a developer, so I didn’t really appreciate the value of mobile gaming, GPS, and cloud storage until they achieved product market fit and were integrated into my smartphone.

Today, I wouldn’t think of buying a device that couldn’t help me find a restaurant or hotel. When it appears, I suspect the killer web3 app will be similarly useful.

thanks for reading,

Walter Thompson
Managing Editor, TechCrunch +
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3 Ways to Good Hiring for Your Startup

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For early-stage startups, “this is arguably one of the worst times to look for talent,” says Champ Suthebongchai, founder and general practitioner of Creative Ventures.

Opportunistic hiring managers might assume that large-scale layoffs shifted the balance in their favour, but “these were generally not employees doing essential work.”

Recruiting startups is usually like scenes from heist movies where characters gather a crew together: it’s a quick process designed to fill knowledge or experience gaps, not necessarily finding the best fit.

“Whenever possible, it is much better to slowly integrate a great candidate into working as a part-time consultant or contractor and let things go,” Suthipongchai wrote.

“Just as a customer is experimenting with a product, companies should try out the most important employees whenever possible.”

8 Questions to Answer Before Your Startup Faces Technical Due Diligence

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Outsiders study multiple aspects of a startup company to determine its value and quality, and the validity of the code base is one of them.

The planned presentation is part of the story, writes Matt Van Italy, founder and CEO of codebase Sema analytics company.

After the technical due diligence begins, no amount of storytelling can cover the secrets buried in GitHub and Jira.

To help companies prepare for TDD, Van Itallie has written an eight-question primer that foundation teams should be able to answer with confidence. Tomorrow we’ll be running his detailed TDD checklist.

To better thwart ransomware attacks, startups must master the basics of cybersecurity

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Creating systems that are resilient against ransomware isn’t a top priority for early stage startups, but many companies don’t follow basic best practices, which hurts them a lot.

“Enable multi-factor authentication (MFA) on everything you have,” said Katie Mousoris, founder of Luta Security. “Enable it on every account you have.”

Last week at TechCrunch Disrupt, Moussoris and Brett Kalou, Emsisoft Threat Analyst, spoke about the need to invest early in shutting down their systems, starting with MFA.

“It’s a matter of stacking the security layer upon the security layer,” Callow said. “MFA combined with employee training – in combination with other things – all reduce risk.”

Black startup founders raised just $187 million in the third quarter

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The downturn seems to disproportionately affect the ability of black founders to raise capital.

“When the venture capital sector catches a cold, underrepresented founders get pneumonia,” said Tiana Tookes, an investor at Colorful Capital.

In the third quarter of 2022, Crunchbase reported that Black founders raised just $187 million, “a staggering drop from about $1.1 billion they received in the third quarter of 2021 and a significant drop from $594 million raised in the second quarter,” Dominic Madhuri Davis wrote. .

Investors are sitting on mountains of liquidity: where will it spread?

Landscape of gold coins

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No matter what happens in the public markets, bees make honey, venture capitalists raise money: that’s exactly what they do.

But since the “maximum valuation reassessment” in public markets, venture capital is piling up more and more dry powder, write Jeremy Abelson and Jacob Sonnenberg of Irving Investors.

More disappointing news for founders: Investor fundraising “is on track to end the year at $172 billion,” but capital deployment is declining.

“Dollars are and will continue to flow, but it will be more capital for fewer companies,” they wrote.

Now that “traditional SaaS is expensive and secondarily saturated,” sectors like Web 3, life sciences, and agricultural technology will attract more investors, they expect.

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